Aside from marketing, the three most demanding challenges for entrepreneurs are financial, time management and are in attracting and retaining talented employees.
A multi-pronged strategy is needed to solve these common business challenges.
1. Cash is king so minimize financial challenges
Invoicing — Consultants should require payment of retainers in advance of any work. Otherwise, clients and customers should be invoiced right away with a due date. Offer a small discount for prompt payments for immediate access to the funds.
To finance big projects, require a down payment. Invoices should mention how much interest will be charged for late payments. Track and follow up on late invoices. Don’t allow 30 days past due payments.
Control of expenses — Daily monitor your outgoing cash. On a regular basis, look for cost-cutting opportunities. Avoid penalties by paying bills on time for your peace of mind and to curry favor with your vendors.
Cash flow projections — Avoid slow-paying customers. To anticipate your cash needs and potential shortfalls, astutely forecast your cash flow. Be wary of unexpected costs and revenue losses.
Create an emergency fund in case you need to cover three months of operating expenses. If you’re a new business or in a turbulent industry, make certain your emergency fund will cover at least six months.
Optimize inventory — Be careful with your inventory. Meet your expected customer demand but avoid unnecessarily tying up cash. Once you have a sense about your marketplace, automate re-ordering with inventory-management technology.
Credit and loans — Be careful not to borrow money. But if you must, consider a line of credit, business loans or Small Business Administration programs.
Equity financing — If it’s ideal for you, consider an angel investor or getting investors.
How to Attract an Angel Investor
Crowdfunding and Grants — Consider crowfunding platforms, such as indiegogo.com or kickstarter.com, or even subsidies or research grants.
Develop multiple revenue streams — Do not rely on one product, service or one customer.
Budgeting — Know your fixed and variable costs, stay within your budget, and anticipate unexpected expenses.
Risk management — Avoid unnecessarey risks, and have adequate insurance.
Emphasize financial literacy — Be prudent in making decisions, install a culture of accountability and educate employees on financial issues facing your company.
2. Time management
Prioritize — It’s important to focus on the most difficult tasks first. The rest of your day will seem like a vacation. Use the Eisenhower Matrix. Categorize “what to do”, “schedule”, “delegate” or “delete”. Or prioritize task A, B, or C.
Implement the Pareto Principle. (Focus on the 20 percent of tasks that produce 80 percent of the profits or other desired results.)
Set goals — Use the acronym, SMART, for specific, measurable, achievable, relevant and time-bound.
Diligently plan — Use agendas and calendars for organization and scheduling. Set deadlines for each action. Before you finish your day’s work, review your calendar and plan the next day. For efficiency, determine time limits.
Take breaks — Discipline yourself to take breaks. This will reinvigorate you to maintain your focus. Decide if the Pomodoro Technique is helpful by working in 25-minute intervals followed by short breaks.
Have a functional workspace — Remain clutter free to eliminate distractions.
Delegate — Free up your time using the eight best practices in employee delegation.
Automate your processes — Save time and improve efficiency by using technology whenever feasible.
Manage time — Track how you spend your time. Make necessary adjustments.
Regular reviews — Every week and at the end of the month, review your progress. Make adjustments and celebrate every success, both big and small.
3. Attract and retain talented employees
Culture — Envision and develop a strong culture t0 attract quality employees with values who will fit well in your business.
Competitive pay and benefits — Within your capabilities, provide the best-possible salaries and benefits to attract talent. That means health, retirement, professional development and work-like balance.
Stay commited to continuously review and adjust compensation and benefits.
Use a wide recruiting strategy — Job boards such as Indeed, LinkedIn or job boards specific to your industry.
Employee Referrals — Some of best recruiting sources for qualified candidates are your trusted employees.
How to Rock Your Human Resources with Employee Referrals
Networking and social media — Attend relevant industry events and publicize your openings and business culture on social media.
Educational Institutions — Attract talent by contacting colleges, universities and trade schools.
Clear job requirements –– Attract top talent with the best job descriptions.
Hiring process — Have an efficient and positive hiring process with good communication, and avoid mistakes. Emphasize growth opportunities, mentorship programs and potential for career progress.
Retain talent — Strategize for a stellar HR training program. Take precautions for a positive workplace in a supportive environment with good internal communication. Emphasize employee engagement and morale.
Promptly address any issues, and make certain to update your sexual harassment policies.
Strong management — Avoid management pitfalls with employees. Invest in training and focus on maximum productivity with regular constructive feedback and recognize employee contributions.
Boost employee morale — To boost morale and prevent burnout, promote a work-life balance. Celebrate achievements. Reinforce positive performance and behavior.
Communication — Ensure terrific communication to build trust. Share company challenges, goals and strategies. Help your employees to understand the value of their work to feel fully involved. Effective communication helps to develop collaboration and employee engagement.
Welcoming New Hires the Right Way Enhances Your Culture
Conduct stay interviews — Actively seek your employees’ feedback. Regularly query your staff via surveys. By understanding the needs of your employees and dealing with them, you’ll likely avoid issues that lead to turnover.
Conclusion
If you implement the strategies, you’ll be in a better position. You’ll establish a strong foundation to prevent and to overcome major issues that adversely affect your financials, time management and in the acquiring and retaining of valuable employees.
Good luck for your long-term growth and success!
From the Coach’s Corner, see these related strategies:
Are Your Accounts Receivable Past Due? Do This — Receivables continue to haunt some businesses as their customers struggle. Here are Biz Coach solutions.
Use Psychology to Ease Your Debt-Collection Headaches — Stellar debt collection is all about emotions. Certainly, you don’t want to be too aggressive in debt collection and lose possible revenue from slow-paying customers – they might soon be able to pay you.
For Best Performance, Inspire Employees with Non-Financial Rewards — Money talks, of course, and is a way to motivate employees. But money is not always the chief motivator. Here’s why with some ideas.
Writing Tips for Best Results Giving Performance Reviews — A focused effort is needed to make certain employees understand their status and how they can improve. Here’s how.
Best Strategies to Manage Unpredicted Business Growth — Fast growth can present difficult challenges for a business, if it isn’t prepared. That goes for any sector – from service businesses to manufacturers. Here are five best strategies.
“Hustle until your haters ask if you’re hiring.”
–Steve Maraboli
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