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Business
Development Tip Archive - 2006
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Develop
Your Social Capital
Social
capital is very similar to its monetary sibling. It, like monetary capital,
is accumulated by an individual or a business and used in the production of
wealth. Put more simply, it's the accumulation of resources developed
through personal and professional networks. These resources include ideas,
knowledge, information, opportunities, contacts and, of course, referrals.
Effectively
developing your social capital can be a daunting task. However, doing so
within a structured, organized networking framework will leverage your
efforts and help you begin building your balance of capital to positively
impact your bottom line. A key way that social capital is acquired is
through networking because successful networking is all about building and
maintaining solid, professional relationships. Plan your word-of-mouth
marketing efforts just as you would any marketing effort. Give referrals
constantly. It helps build your contact network, and good business karma as
well. And show professionalism at all times. Being dependable, delivering a
product on time, meeting appointments consistently and treating others with
courtesy will give you a professional reputation and cause you to be
remembered by those you wish to have become a contributor to your social
capital.
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Exit
Strategies for Computers
Old
PCs don't die, and they don't fade away, either. The average PC will run
almost forever, and the harmful chemicals inside it will survive in your
local landfill for even longer. How many long-lived-but-obsolete computers
is your company moving around among staffers? There's definitely a point of
diminishing returns in holding on to PCs past their prime, as well as hidden
costs in just about any disposal method you choose. Recycling, selling them
to employees or giving them to charity are all viable options, but they all
have costs attached—many of which may surprise you. It's a good idea to
have an exit strategy for your old hardware—and it should be in place long
before the intrinsic value of your PCs hits zero.
Complete
depreciation is often here before you know it, but there's good news in that
respect: After years of decline, PC life expectancies are in an upturn, says
IDC analyst Alan Promisel. The average middle-of-the-road PC now has a
useful life of about three years; a high-end desktop, about four years. But
be careful: Nurse an old PC along for too long, and productivity
suffers—for low-level staffers as well as managers. Worker efficiency
declines along with equipment efficiency, so when software takes longer to
load, screens take longer to redraw and incompatibilities start to occur,
memory upgrades need to be deployed.
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Why
the Dump Isn't the Answer
According
to Gartner Research, more than 400 million computers will be replaced by
individuals and businesses from 2004 to 2006. But according to ACNielsen
International Research, only 15 percent of those polled realized they could
recycle electronics in their local area.
Old
PCs have chlorinated and brominated substances, Poly Chlorinated Biphenyls
(PCBs) and Poly Vinyl Chloride (PVC), heavy metals, gases, acids and plastic
additives—and that's just for starters. (For a complete list, see the SVTC
website.) All those chemicals have incredibly long half-lives. You want your
new house sitting on top of this stuff? Not to mention, the EPA will be all
over you if you're discovered throwing PCs in the trash.
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What
Will It Cost?
In
general, a lot of PC disposal costs are realized in soft dollars, and a
certain amount of those are fixed. IDC says it will cost companies at least
$150 for every PC taken out of service. First, there's the labor involved in
physically removing a system and its network components, disconnecting
peripherals and scrubbing the hard drive of software, passwords and
sensitive company files. Then there's the downtime for employees during the
move. After that, your costs will vary depending on how you choose to
dispose of the old PC and may include payment for things like testing and
repair or, in many cases, contractual or other legal costs.
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The
Resale Option
One
popular option for PC disposal is selling them. IDC says your net
out-of-pocket per PC is $272 if you can sell it to an employee for $100, and
$119 if you sell it to a third-party broker for $200. (Remember, costs vary
among disposal options and you'll still need to scrub the machines of
company information.) The good news is, the PC is gone. But in both cases,
you have to sell the PC before its value reaches zero. And those three years
for a mid-range PC and four years for a high-end box go by quickly.
Of
course, brands vary. You can look up the residual value of your PC in the
Orion Computer Blue Book. You can purchase the latest version of the Blue
Book with the most recent prices from the Orion Research website. You also
can look up prices for individual PCs online at $3.99 per shot.
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February |
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Give
It Away
Most
old PCs have years of utility left in them—just not for you. There are
tons of schools, community groups, senior homes and other needy institutions
that would be happy to take them off your hands. Unfortunately, donation is
another of the more costly disposal options. By the time you get done with
moving, temporarily storing, shipping, tax record-keeping, making
contractual arrangements with the beneficiary, possible testing and repair,
and, of course, facing the ever-present legal exposure, IDC figures it will
cost you $344 for each PC donated.
And
the legal exposure is real. You could get sued for donating a defective or
virus-infected computer, or you may be asked to defend the tax deduction. On
the upside, the infrastructure for charitable donations is well-advanced,
making this option less time-consuming.
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Balancing
the Budget
How
much should you expect to pay to equip a home office? Here's a sample
budget:
•
Computer: For roughly $1,000, you can get an IBM-compatible
computer with a Pentium 4 processor, 512MB of memory, a 60GB hard drive, a
17-inch CRT monitor, a CD-ROM drive, a 56K modem and an Ethernet connection
from Dell, Compaq, Gateway and other leading suppliers.
•
Multifunction machine: For $200 to $500, you can buy a machine
that acts as a fax machine, copier and printer, which includes the ability
to print out digital photos in color.
•
Two-line cordless phone: Today's top-of-the-line cordless
phones start at less than $200, offering home offices the same full-duplex
clarity as a corporate boardroom with a microphone optimized for hands-free
conversations.
•
Phone service: All-inclusive packages from providers like
AT&T, MCI and Verizon provide unlimited local, regional and
long-distance calls for less than $60 a month.
•
Internet access: High-speed Internet access—broadband or
DSL—is generally available for $40 to $100 per month.
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Don't
Get Hooked
Phishing
isn't a strictly business-related problem, but it can have serious
consequences for unsuspecting entrepreneurs. Phishing is when a deceptive
email arrives that often asks you to visit a web site and verify personal
information like pin numbers, usernames, passwords or account numbers.
Some
phishing attacks are blatantly obvious and loaded with misspellings and bad
grammar. Some are very sophisticated and look like they could be a real
communication from a credit card company, bank or online auction site.
What's
the best way to deal with it? Delete it. Any email that asks for personal
information to be given out through the web or through a form embedded in
the email is likely a phishing attack. If you're still not convinced, take a
moment to check in with the company that supposedly sent it. A few minutes
can save you a lot of grief.
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Take
Advantage of Hotspots
The
internet is your ticket for staying in touch. Whether you need to check
email, check up on your web site or do some research, a Wi-Fi hotspot is the
place to go. The easiest way to find a hotspot is to book your room at a
Wi-Fi equipped hotel. Some hotels include it as a free service for guests.
Others charge a small fee.
Before
you hit the road, take a moment to find some hotspots at your destination.
There are several hotspot conglomerators that let you access the internet
through their nationwide networks for a daily or monthly fee. Just be sure
to use a VPN if you need to protect your business data.
You
don't have to be traveling far from the office to take advantage of
hotspots. Local cafes, coffeehouse or public buildings can be convenient
stopovers when you're out at lunch or just need to step away from the desk
for a while.
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March |
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Upgrade
Your Cell Phone
Sure,
you don't leave your office and hit the road without your cell phone. But
there may be ways to maximize its effectiveness as a business tool. If you
haven't upgraded your phone in a few years, check out some of the new models
that let you access your email or browse the web. Even a camera phone can
have smart business uses if you need to email images from trade shows or
completed projects back to the office. If you want the power and flexibility
of on-the-road access to email, the internet and certain organizer features,
a smartphone may be up your alley. Just be sure that you'll use those extra
features before you put out the extra cash.
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We're
a Happy Family
Even
if you're not running a family business, your business still impacts the
lives of everyone in your family. So how do you manage to be a good spouse,
parent and child while powering your way to the top of the business world?
Here are some tips that, while they won't guarantee happiness 24/7, will
help harmonize your home and work lives:
•
Call a "family meeting." Discuss ways you can share
the responsibilities of the home, including childcare, cooking and cleaning.
If you and your spouse are reaching your limits, are there other adults in
the family—aunts, uncles, brothers, sisters, grandparents—or friends who
can provide some help?
•
Don't try to be a superhero and handle everything alone. Ask
yourself, "Is my spouse doing all they can? Are the children pitching
in?" Have you divided both childcare and housework in your household?
•
Take advantage of technology. Stay accessible via cell phones,
pagers, e-mail and fax capabilities. If something happens at home, how
easily can you be reached?
•
Watch for burnout. Live by the motto "If I don't take care
of myself, I won't be able to take care of another."
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How'd
I Do?
How
can you improve if you don't find out where you went wrong and what you did
right? Always ask for feedback. If you want to improve your sales
presentations or your relationships with customers, ask them what you need
to do to maintain and increase their business. While a great learning tool,
asking for a customer's opinion is also a good way to show customers you
care and are willing to work at solving problems. Asking for feedback can
also save a customer relationship. While dissatisfied customers don't always
complain, they very rarely buy from you a second time.
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In
the
Loop
Your
banker, attorney and accountant each have the ability to drastically
influence the success of your business. The most important thing you need to
do is nurture your relationships with them. The more they know about your
business, and the better you know them, the more value you'll receive.
Develop that close, long-term relationship, and you'll have someone you can
depend on in your corner. When you hit the inevitable bumps in the road,
they'll be there to help you.
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April |
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Software
Beware
Used
software can be tempting, but you should proceed with caution. Some software
is not legally transferable to other computers. Watch out for bootlegs or
pirated software and stay on guard for disreputable sellers. It's usually
better in the long run to just purchase new copies.
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Online
Bargains
Refurbished
hardware can be a smart way to save money. Many online manufacturers and
retailers have sections of their web sites devoted to clearance outlets. You
may have to poke around the site to find them, but it's worth checking into
when you're on a tight budget.
Refurbished
items are usually returns that have been looked over and checked for
functionality. As with auctions, check to see if all documentation and
software is included. Compare prices to what is normally charged to see if
the savings is worthwhile.
Often
warranties are shortened. What might have originally come with a one-year
warranty may only include a 90-day warranty when it's sold as refurbished.
If you're comfortable with that, go ahead and save some money.
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Prepare
to Get Mini
The
mini computer packs a full-fledged PC into a package the size of a laptop
battery, and can be used at your desk or as a portable computer—they're
smaller than the slimmest laptops, and they don't have the limited
capability of a PDA. And they come equipped with all processing power,
memory and ports you'd expect in a regular computer, minus the bulk and
weight. Some have docking cradles and can be used as tablets, while others
feature slide out screens, but they're all small enough to be able to slip
into a purse or pocket. Unfortunately, they're still cost prohibitive: A
mini PC can cost as much as $4,000, whereas a regular computer with the same
processing power can be purchased for less than $500. At this point, mini
PCs are really a fashion statement for the ultimate early adopter, but keep
your eyes peeled because once prices drop, they could change the way that
everyone does business out of the office.
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Security
and Fraud Prevention
Process
all credit card payments in real time using Secure Socket Layer (SSL)
technology which encrypts all confidential information during the
transmission and authorization of transactions. This can be part of your
shopping cart program, or you can purchase the technology separately from
companies like VeriSign.
You
can also protect yourself using the MasterCard's card validation code 2
(CVC2) system and Visa's card verification value (CVV2) verification system.
Visa and MasterCard have basically imprinted three-digit codes on all their
cards to help determine whether a genuine card is being used in a
transaction. These are especially helpful in online and phone orders since
merchants don't have the card in front of them to run their magnetic strip
through the system.
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May |
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Credit
Card Industry Terms to Know
The
following are terms you should familiarize yourself with as you shop for a
card processor.
•
The discount rate: The percentage of each transaction paid to the
merchant account provider. If your monthly charges are less than a certain
volume, the processor may charge a higher percentage.
•
Transaction fee: a flat rate charged for each transaction processed.
•
Equipment: Some examples include point-of-sale terminals, printers
and peripherals. Also find out about installation costs, which may or may
not apply to internet-only business owners.
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Monthly minimum fees: These are minimum fees that the merchant
account provider collects each month from the merchant if the merchant's
discount rate and transaction fees don't add up to the monthly minimum
specified on the original merchant application. It is usually about $25 per
month if the monthly minimum volume isn't reached.
•
Reserve fees: If your credit history is in question, or if you own a
new or high-risk business, you may be required to set up a reserve account,
which protects the processor from any future losses. The reserve account is
calculated as a percentage of your sales.
•
Chargeback fees: These are the costs charged by a processor to cover
disputed charges.
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At
What Price?
When times are tough during start-up, you may be tempted to cut every
expense under the sun to keep your business afloat. Beware, though—cutting
the wrong things could end up hurting your business in the long run.
·
Cost-Cutting Mistake No. 1: Choosing cheaper materials for your
product. You cannot sacrifice the quality of your product to cut costs.
·
Cost-Cutting Mistake No. 2:
Cutting back on advertising and marketing. Getting the word out about your
company in the early stages is necessary to success. You may modify
advertising (i.e., switching from color to black and white) but don't
eliminate it altogether.
·
Cost-Cutting Mistake No. 3:
Not doing inventory or financial reports when times are lean. Entrepreneurs
say, 'We don't need to do this—let's rush; let's not close the [store] for
a day,'" But without taking inventory, they don't know with certainty
if they're making the profits they think they're making.
Whether you make provisions to do inventory while your start-up
business is open or after hours, the extra expense of time and even extra
workers is well-spent.
·
Cost-Cutting Mistake No. 4:
Cutting R&D during the start-up stages. Make sure you spend judiciously,
but don't eliminate R&D altogether:
·
Cost-Cutting Mistake No. 5:
Cutting anything that keeps a customer satisfied. If you're cutting a cost
that will interfere with customers' well-being, their delivery time, the
product quality, the communication or anything else having to do with the
customer you're making a mistake. Cut administrative costs
instead—renegotiate shipping fees, telephone rates, vendor payment
schedules—anything but customer service.
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Is
It Worth Your Time?
Throughout
the day, periodically stop what you're doing and ask yourself if what you're
doing is the best use of your time. Ask yourself these few questions:
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Is
the task you're working on a top priority?
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Is
the task going to increase your business or income?
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Does
the task correspond with your goals?
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Is
it a task that someone else could handle, leaving you free to handle
more important tasks?
If
you answered no to any of the questions, switch to another task or delegate
the task to someone else.
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To-Do
Lists Are Your New Best Friends
Experts
recommend business owners employ not one but two to-do lists. The master
list contains a maximum of three items of long-term importance, like
"grow sales" or "get new customers." The second list
contains day-to-day to-dos that represent tactical steps to completing those
strategic to-dos.
Once
you have your lists written, categorize all items, tagging them as projects,
phone calls, errands, agenda items, work to be done at your computer or
desk, things you can do anywhere, and items that aren't urgent.
Review
your list items frequently to see if items are listed correctly and should
be there to begin with. Working over your list in advance daily and weekly
means that, when you consult your list, you don't have to rethink your
commitment and your plan right then.
Don't
forget to cross things off once you've completed them. Checking off your
to-do list not only keeps you organized, but also shows exactly how much
you've accomplished.
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June |
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Prepare
for Tomorrow, Today
At
the end of each workday, take a blank sheet of paper and write down
everything you must accomplish tomorrow in the order the tasks should be
done. The next day, you won't have to decide what to do first, and crossing
off the things you accomplish will give you great satisfaction. Don't let
the simplicity of a to-do list fool you; it's one of the best
time-management tools ever invented.
You
should create to-do lists each day or at least weekly. This will give you an
overview of what to expect each week and give you time to make any changes
in advance. Use it in combination with a calendar, and keep in mind that
to-do lists are for tasks to be completed, while a calendar is for recording
appointments
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Great
Customer Service…
One
simple way to increase the reach of your customer service is to empower your
employees. Giving employees some flexibility in handling problems that arise
benefits your business in several ways. Research has shown that employees
who have this kind of freedom begin to think more strategically about their
work and about your business. They endear themselves to your customers
because they act as customer advocates. They go beyond satisfying needs to
exceeding expectations. And because they are thoroughly familiar with your
company's product or service, the company philosophy, the state of the
industry, and the ins and outs of good business practices, such employees
can "sell" your business again and again, giving you a competitive
advantage.
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Help
Employees Succeed
Business
owners and managers know they need good bottom-line results but sometimes
it's hard to remember what each person in the organization needs to do to
accomplish the desired result. Try these three tips to keep your company
moving forward:
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Ask
employees what information they need. Use one-on-one opportunities to
ask each employee if they have any questions about their work, what to
do or how to prioritize.
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Make
sure employees share information with each other. In staff meetings,
make a special point of asking each person if they have any information
that other staffers may not be aware of. The manager running the meeting
can get a lot more information out on the table by simply asking this
question.
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Make
a point of sharing feedback about the work and why it matters. This
gives employees a clear "line of sight" from their daily tasks
to the big-picture reasons for them. It adds meaning and purpose, and
keeps the workforce looking forward and moving in the right
direction.
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Don't
Get Intimidated While Negotiating
If
you react to intimidation by counterattacking, walking away or caving,
there's a better way: Stand your ground, and negotiate.
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Stay
cool. Above all, relax. Ignore the theatrics. If your opponent keeps
interrupting, politely ask him or her to stop. Create a tactful timeout,
such as another appointment. Not reacting may take supreme self-control,
but your maturity will pay off. Also, don't allow experts, celebrities
or business leaders to psych you out.
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Refocus
on the issues. Intimidation is not the issue. Your deal is. No matter
how long it takes, keep bringing the discussion back to the real
concerns: price, services, time periods and so on.
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Slow
it down. Reset the pace. Pause before you answer. Go over things one
more time. Start taking notes. Say you'll think about it and get back to
them. Intimidators would prefer to hustle you into agreement. Don't let
them.
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Ask
questions. Favor open-ended ones, the kind that can't be answered by a
simple yes or no. Once your opponent starts explaining and discussing,
it's no longer intimidation--it's negotiation.
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July |
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Penny-Pinching
Promotions
Want to market your business on a budget? The people you know can help. Here
are three ways the people in your network can assist your marketing efforts:
1.
Split advertising and promotion costs with neighboring businesses. Jointly
promote a sidewalk sale, or take your marketing alliance further by sharing
mailing lists, distribution channels and suppliers with businesses that sell
complementary goods or services.
2.
Ask the people you know for help. The kind of support you'd most like to get
from your contacts is referrals—the names of specific individuals who need
your products and services. So go ahead and ask! Your contacts can also give
prospects your name and number. As the number of referrals you receive
increases, so does your potential for increasing the percentage of your
business generated through referrals.
3.
Got a happy customer? By telling others what they've gained from using your
products or services in presentations or informal conversations, your
sources can encourage others to use your products or services.
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A
New Way
to Go Wireless
WiMAX is a new wireless option for entrepreneurs
either unserved or under-served by fixed-wire cable, DSL or T1. With WiMax,
data travels through the air at the same rates of a T1 line. It may not be
in your town yet, and technically, it won't be anywhere until year's end,
when the WiMAX Forum starts certifying the interoperability of this kind of
transmission gear. But pre-WiMAX services are already available in dozens of
cities nationwide at cut-rate prices. Both startup and long-standing
wireless ISPs are switching over to better wireless transmitters at a pace
analysts expect will bring WiMAX to
America
's 50 largest urban centers and countless rural areas by the end of the
year.
In
2006, once WISPs can mix and match gear from multiple suppliers, commercial
rollouts will zoom, says Jeff Thompson, president of TowerStream in
Boston
. WiMAX users won't notice that watershed because, unlike Wi-Fi, customers
don't buy access points. But the point of standardization is to drive down
equipment costs—and in open markets, those savings tend to filter down to
customers. Ultimately, Thompson says, you'll pick up a small WiMAX modem for
Wi-Fi prices at Best Buy or CompUSA, then choose from a variety of service
providers.
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Insurance
Intelligence
Buying insurance is one of those necessary evils all
smart entrepreneurs put up with. But that doesn't mean you have to break the
bank. Here are some cost-cutting ideas:
•
Save by association. When looking for insurance, check with
your trade association. Many associations offer competitive group insurance.
• Raise your deductible. Raising
the deductible on your insurance usually lowers your premiums. Even if you
end up having to pay the deductible, it's likely to be less than the amount
you save.
• Make a foul-weather friend. By
arranging for an alternative place to run your business in case of a major
disaster, you may be able to save on business interruption insurance,
advises the Insurance Information Institute. For instance, you could arrange
with a firm in the same industry to use their facilities in case of damage,
and vice versa.
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Get
in Control!
To work productively and efficiently, you need to
create a work environment that supports you. Regain control of your work
life by following these steps:
1.
Create your vision of a clean work environment. Using your existing
office space, sketch the ideal configuration of your office on paper.
Remember to create a space for your old project files, financial statements
and client information.
2.
Take one day, right now, and organize. You will never have the time to
organize unless you schedule it on your calendar. Using your sketch as a
guide, go after your mess.
3.
Unsubscribe from information overload. Throw away the magazines and
catalogs you will never read—they just sit there and taunt you. Cancel
unwanted subscriptions, and get off any mailing lists that do not help you
achieve success.
4.
Create a new project file folder. A new project usually generates a
temporary mess. To avoid spillover, put all new project information, drafts
and associated paperwork into an expandable file folder.
5.Schedule
one cleanup day after every vacation. Add one day to your vacation to
organize your thoughts, projects and priorities. A cleanup day lets you
organize paperwork from previous projects, pay outstanding
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August |
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Inventory
Gets Smart
Radio Frequency Identification (RFID) embeds tiny
data-packed radio transceiver chips into all kinds of goods and containers.
Like a talking bar code, an RFID chip can talk to a scanner several feet
away and tell it far more than a printed label, even from inside an unopened
carton. The technology has been around for decades, but has only recently
come into use. The Department of Defense and Wal-Mart are already taking
advantage of RFID. Once pricing gets friendlier and some standards are
worked out, the technology will trickle down to smaller retailers and
businesses.
"When
transportation companies begin reading carton and pallet tags as shipments
are loaded, transferred and delivered, this could provide smaller retailers
with the same level of tracking that UPS and FedEx provide," says Bert
Moore, director of IDAT Consulting and Education, a
Pittsburgh
technology consulting firm. "Better tracking will allow managers to
better schedule work flow and inventory."
Better
yet, the technology may offer innovative firms a new technology to play
with. "This is an innovative technology similar to the internet,"
says Mark Roberti, editor of RFID Journal. "When that happened,
we saw a wave of innovation from small companies. This is far more dramatic
than connecting computers. You can now make any object smart."
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Why
You Should Never Stop Learning
Long-term business success relies on continuous personal growth. Achieving
that means being better today than you were yesterday, and being better
tomorrow than you are today. A common mistake for many entrepreneurs is that
they "just don't have time" to work on the things that will make
them better at what they do. They get caught up in the daily operations of
their business and can't see past that. You may have heard the old saw that
some things are urgent and some are important, but few things are both. Many
business owners spend their time on the urgent things because their lack of
planning and long-term perspective continually creates additional urgent
things. Self-education is a good example of something that is extremely
important but not at all urgent.
What
you must do is immerse yourself in data and make it your goal to absorb and
understand that information, turn it into knowledge and then use that
knowledge to gain experience. This, of course, is a long-term task, and the
main reason most people fail to stay with it is because the feedback loop is
so long. It often takes months of hard work before you start to see positive
changes—you won't see the changes as they happen, but you'll look back one
day and be amazed at how much your judgment and business skills have grown.
You'll feel yourself start to think more clearly, you'll understand more of
what you see and hear, and your entrepreneurial vision will become clearer.
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How
to Undertake a Personal Learning Program
What do you have to do to enjoy the long-term benefits
of a personal learning program? Subscribe to business magazines and e-mail
newsletters, and read them consistently. If you have a Palm or Pocket PC,
use e-book software to read business articles and e-books. Listen to
audiotapes in your car. Commit yourself to reading (or listening to) at
least one or two business books each month. Register for seminars and short
classes that teach hands-on skills such as marketing, sales, accounting,
legal issues, etc.—the more you know about each such subject, the better
you'll be at supervising people who do those tasks for you. In general, you
must make your education a priority and schedule significant amounts of time
for it. While some of this can be squeezed into your day (such as reading
while waiting in line), much of it will require you to give up something
else that probably isn't as important (such as watching television).
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Creating
a Think Tank for Your Business
As a business professional, you need a constant supply of information to
achieve success. You must stay aware of trends and issues and keep up with
rapid economic and technological changes to become and stay competitive.
You
may have already discovered that it's next to impossible to keep up with all
this information on your own. There is simply too much of it. Fortunately,
the knowledge you lack is always someone else's specialty, so you can turn
to others for help. There are usually at least a few people who can help you
deal with certain issues or special problems that you may encounter in the
business or profession you are in or are interested in entering. In lieu of
specific knowledge, you must know in advance whom to contact and where to go
to get the information you need.
When
you've identified your most important contacts, start connecting with these
people to enhance and improve your knowledge network. As you do this, your
network and the information you need to build your business will expand and
grow.
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September |
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Take
a Vacation!
Many
small-business owners brag about how indispensable they are and that they
never take vacations. But if you're not taking time to unwind, you're
setting a terrible example for your employees. Not taking a vacation is not
a sign of an indispensable business owner; it's proof of an ineffective
leader. It's the mark of an irritable boss with high employee turnover.
You've
got to prepare for that first vacation so you can really take it easy while
you're sipping piña coladas on your
Caribbean
lounge chair. If you're afraid to take a vacation, you may be too active in
the mundane day-to-day tasks of your business and not be allowing If you're
doing the same tasks as your employees, stop it immediately—you're the
boss, the leader, the visionary.
You
have to start by making sure you've adequately trained your employees to do
their jobs. Then allow them to perform those responsibilities without you
always looking over their shoulders. As your employees have more success and
fewer failures, they will relish the more demanding challenges
ahead—leaving you time to build your business—and leaving you time for a
vacation.
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Looking
for a few good salespeople? Start here.
There
are a handful of traits that will bring your reps the most closed sales and
repeat customers. Here are five top traits to look for in a salesperson:
1.
Stick-to-itiveness:
The most important trait is the ability to keep going. Sales can be a tough
world, and the stark reality is that some prospects will say no.
What the salesperson does with that no is key. They can allow it to
stop them, or they can put it aside and continue. Look for someone who does
the latter.
2.
Empathy and rapport:
The ability to put oneself in a prospect's shoes is crucial to building a
good sales relationship.
3.
Creativity: Being
able to think quickly and differently sets a good salesperson apart from the
competition and helps him or her solve problems--creating a great edge.
4.
Strategic thinking:
Planning the approach, and knowing what to say and when to say it, will help
good sales reps succeed where others fail.
5.
Follow-through: Some
people are great openers but have no ability to sustain the sales
relationship. Following through, staying in touch and keeping promises put a
salesperson miles ahead of the competition.
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You're
Dismissed
Face
it--part of your job is relieving others of theirs. So how do you do it
right?
Firing
an employee is a messy business. Just the thought of having to recruit,
train and manage a new sales soul is enough to keep some sales managers from
following through with the task. But holding on to a salesperson who's not
performing or who's disruptive to the team is guaranteed to exacerbate
matters down the road.
But
how do you know when it's time to say "you've gotta go"? It's
simple, lack of production, lack of production, lack of production.
You
may fear firing a rep will cause a morale dip in the troops. After all,
someone's buddy is getting shown the door. But making a tough choice can
bolster the spirits of your sales squad. Firing can positively affect morale
[because] it sends a message that the company will take strong measures to
ensure the success of the organization. On the other hand, poor performers
lower the morale of the team, and they continually break momentum and
diminish the credibility of the sales manager.
Before
firing, however, steps must be taken to legally protect your business. It's
crucial that the employee has been warned in advance in writing. Coaching
sessions with failing salespeople will help protect you when it comes time
to separate. Documentation must
be developed in advance of the firing and than when it comes time for the
employee to go, the manager should conduct an exit interview.
Here
are some additional firing guidelines:
1.
Never in your office:
If it's your office, you can't leave if the employee wants to stay and talk.
2.
Short and sweet: As you
walk in the door, say, "The reason I'm here is to tell you this is your
last day of employment with this company." Just get it out.
3.
Never on a Friday: If
fired on a Friday, the employee can't start the process of feeling good. All
he or she can do is stew about it over the weekend.
4.
Outside help: If the
employee says he or she has consulted an attorney or other legal counsel,
stop the conversation immediately and consult your HR department or
attorney, whoever helped you craft your company policy.
5.
No hanging around:
Personal effects can be retrieved, but have the person leave the building.
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Insurance
Tips
Save money and get the right
insurance coverage for your business.
-
Get
your insurance coverage reassessed on an annual basis. As your firm
grows, so do your needs and potential liabilities. Underinsurance ranks
as a major problem with expanding firms. Get an independent appraiser to
value your property; if it has been more than five years since it was
last appraised, chance are you're in for a surprise.
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October |
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Insurance
Losses
Some
helpful information in the event of filing an insurance claim.
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The
insurer usually has three options when it comes to fulfilling the terms
of a replacement policy: paying cash, repairing the insured item, or
replacing the insured item with one of similar quality. Don't hesitate
to let the insurer know if you prefer one of these reimbursement
methods.
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How
You Can Send Better E-Mails – Part 1
What's
the best way to train everyone around you to better e-mail habits? You
guessed it: You go first. First, you say, "In order for me to make you
more productive, I'm going to adopt this new policy to lighten your
load…" Demonstrate a policy for a month, and if people like it, ask
them to start doing it too.
·
Use a subject line to summarize, not describe. People
scan their inbox by subject. Make your subject rich enough that your read
·
Give your reader full context at the start of your message.
Too many messages forwarded to you start with an answer--"Yes! I agree.
Apples are definitely the answer"--without offering context. We must
read seven included messages, notice that we were copied, and try to figure
out what apples are the answer to. Even worse, we don't really know if we
should care. Oops! We just noticed there are ten messages about apples. One
of the others says "Apples are definitely not the answer." And
another says, "Didn't you get my message about apples?" But which
message was sent first? And which was in response to which? ARGH!ers can
decide whether it's relevant. The best way to do this is to summarize your
message in your subject.
·
When you copy lots of people (a heinous practice that
should be used sparingly), mark out why each person should care. Just
because you send a message to six poor
co-
workers doesn't mean all six know what to do when they get it. Ask yourself
why you're sending to each recipient, and let them know at the start of the
message what they should do with it. Big surprise, but this also forces you
to consider why you're including each person.
·
Use separate messages rather than bcc (blind carbon copy).
If you bcc someone "just to be safe," think again. Ask yourself
what you want the "copied" person to know, and send a separate
message if needed. Yes, it's more work for you, but if we all do it, it's
less overload.
·
Make action requests clear.. If you want things to get
done, say so. Clearly. There's nothing more frustrating as a reader than
getting copied on an e-mail and finding out three weeks later that someone
expected you to pick up the project and run with it. Summarize action items
at the end of a message so everyone can read them at one glance.
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How
You Can Send Better E-Mails – Part 2
Continued
from last week – Here are a few additional tips for better e-mail habits.
·
Separate topics into separate e-mails...up to a point.
If someone sends a message addressing a dozen topics, some of which you can
respond to now and some of which you can't, send a dozen responses--one for
each topic. That way, each thread can proceed unencumbered by the others. Do
this when mixing controversy with mundania. That way, the mundane topics can
be taken care of quietly, while the flame wars can happen separately.
·
Combine separate points into one message. Sometimes the
problem is the opposite--sending 500 tiny messages a day will overload
someone, even if the intent is to reduce this by creating separate threads.
If you're holding a dozen open conversations with one person, the slowness
of typing is probably substantial overhead. Jot down all your main points on
a piece of (gasp) paper, pick up the phone and call the person to discuss
those points. I guarantee you'll save a ton of time.
·
Edit forwarded messages. For goodness sake, if someone
sends you a message, don't forward it along without editing it. Make it
appropriate for the ultimate recipient, and make sure it doesn't get the
original sender in trouble.
·
Make your e-mail one page or less. Make sure the meat
of your e-mail is visible in the preview pane of your recipient's mailer.
That means the first two paragraphs should have the meat. Many people never
read past the first screen, and very few read past the third.
·
Understand how people prefer to be reached and how quickly
they respond. Some people are so buried under e-mail that they can't
reply quickly. If something's important, use the phone or make a follow-up
phone call. Do it politely; a delay may not be personal. It might be that
someone's overloaded. If you have time-sensitive information, don't assume
people have read the e-mail you sent three hours ago rescheduling the
meeting that takes place in five minutes. Pick up the phone and call.
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5
Tips for Developing Employees
Need
some help developing your staff? These
short tips are a good place to start!
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Take
the attitude that training is really employee development. That'll help
you think more strategically about what your employees need to learn.
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Recognize
that formal training programs are only part of the picture. Most real
training occurs on the job.
-
Help
employees develop problem-solving skills and the ability to think by
giving them work that'll stretch them.
-
Set
an example. Your own pleasant attitude and good work habits will
influence your workers.
-
Understand
that when you give employees an opportunity to grow, their job
satisfaction and your ability to retain them as employees both increase
substantially.
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5
Tips on Where to Find Employee Training
Do
your employees need training that your company cannot provide?
-
Check
out the internet for convenient, cost-effective web-based courses. Start
with internet service providers like America Online or the education
sections of such portals as Netscape and Yahoo!
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Contact
state and local development agencies. Some of them offer training
programs in order to attract and keep businesses.
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Investigate
programs offered by local universities, community colleges and
adult-education programs.
-
Hire
teachers or consultants to provide training at your place of business or
off-site. Get references first.
-
Ask
corporations. Many offer instruction on the software they market or the
equipment they manufacture.
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November |
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