Business Education

Pros and Cons of Work-Share Programs

In times of uncertainty, particularly when there’s a financial crisis, work-share programs can serve as a temporary solution. But, these systems are not perfect. However, that doesn’t necessarily mean you should outright dismiss the option. Read on to learn more about the pros and cons of work-share programs.

Biggest Downsides of Work-Shares

As the nearby quote explains, work-share programs are offered by local governments to help small businesses in times of need. They give businesses the ability to reduce employee hours without having to resort to letting them go. As you might imagine, work-shares have their pros and cons. And, the first downside is that your business (or employees) might not qualify. If it does, another downside is that it could be more lucrative for team members to find alternative employment.

Work-share programs let businesses temporarily reduce the hours of their employees, instead of laying them off during economic downturns. Technically referred to as short time compensation, the goal of work-sharing programs is to reduce unemployment. Work-sharing should not be confused with job sharing, which allows two part-time employees to share one full-time job. Instead, work-sharing allows a full-time worker’s hours to be reduced, in lieu of laying off the worker.
—National Conference of State Legislatures

Of course, if there’s an outright unemployment option that effectively supplies comparable or more compensation, that’s another downside. Then, there’s the matter of timing. Meaning, how long you’ll need the assistance and whether or not it’s sufficient to carry you and your employees through.

Top Advantages of Work-Shares

Now, there are obviously good things that come with work-share programs. These can be a real lifeline when you and your business needs it most. Here are some of the largest benefits of work-share programs:

You can avoid layoffs. Okay, the most obvious advantage is the fact that you don’t have to resort to firing team members from your company. Work-share programs help you to keep your employees on the payroll, even if it’s a smaller one.
It provides ongoing continuity. Another benefit is that your business can essentially carry on as usual (or as good as possible) for at least a short period of time. That can really help to save your business’ operations and keep productivity going.
The arrangement helps maintain morale. Yet another upside to a work-share program is it helps to keep morale up since you’re keeping people employed and in a familiar work environment — even if it’s temporarily in another setting.
You don’t have to start over again when it’s over. When the time comes to resume normal operations, the ability to retain employees helps you avoid having to hire all new staff and start over by training from scratch.

What other pros and cons would you add to the list? Please comment and share your thoughts and experiences!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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How to Tell When a New Business Client is Lying to You

January 28, 2020 No Comments

We’ve all been betrayed in one way or another. Some situations are worse than others. But, all things being equal, it’s better to be safe than sorry. There’s an old saying in the real estate industry, “Buyers are liars.” (Although, this is true in just about any line of work, law, financial, retail, and countless others.) The point being, human nature is what it is and there’s just no way around it. Why It’s so Important to Avoid Liars Okay, you can probably think of a dozen reasons liars can be trouble. They cause feelings of betrayal, anger, resentment, regret, and basically a whole host of negatives. But, even if you’re able to get past the personal hurt, there’s the logistical fallout. The vast majority of customers are truthful. But the lying happens often enough to get under your skin. What’s more, deceitful customers pose a risk to your business. If they’re willing to lie to you, what does that say about their character? Would they also be willing to fabricate an errors-and-omissions claim for personal profit? —EOforLess.com Such consequences include but not limited to: being embarrassed by peers, trouble with client relations, upset in the workplace vis-à-vis team members, and plenty more circumstances. Plus, just a single lie can hurt your bottom line in a serious way. How to Tell When a New Business Client is Lying to You So, how do you spot a lie before it causes all sorts of trouble in your business? Well, it isn’t easy, there’s no question about it. But, there are some ways to tell when a client is lying to you, like the following: It sounds too good to be true. Okay, this is probably cliché’ but it’s nevertheless true. When someone tells you something that sounds too good to be true, it more than likely isn’t true. What’s most problematic is that in the moment, it’s easy to fall for. Their social media is a red flag. Some con artists make their lives to look out-of-this-world, luxurious and exciting. Others have absolutely no social media presence at all. In either case, it can tip you off to someone who is trying to hide something because there’s no information at all. Or, a person who is trying to fool everyone else by making their life look irresistibly envious. There’s difficulty answering simple questions. Here’s another bit of advice you’ll hear from experts on the subject of lying — the fibbers might have a lot of trouble with answering simple questions. (Conversely, when there’s inconsistent but a lot of detail, that’s also a telltale sign.) His or her past tells a completely different story. If you have a bad feeling, listen to your inner voice and get a bit of background from people in his or her past (if possible). Just asking a few key questions can tell you a lot, a whole lot. What other advice do you have to offer through your experiences? Please comment and let others know! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Entrepreneurs Can Strategically Deal with the Key Personnel Dependency Trap

February 15, 2024 No Comments

How Entrepreneurs Can Strategically Deal with the Key Personnel Dependency Trap Small businesses often rely on a few key individuals whose knowledge, skills, and experience are vital to the company’s success. The loss of such a key person can be devastating, especially when they possess specific knowledge or skills that are not easily transferable or replaceable. The Key Person Dependency Risk Imagine this: your small business thrives thanks to a key employee – let’s call them the “key holder” – who possesses unique knowledge or skill set crucial to your operation. But then, the unthinkable happens: they leave. Whether through planned retirement, unexpected departure, or unforeseen circumstances, their absence creates a gaping hole, leaving you wondering, “Where do we even begin?” All right, don’t go into a panic. While losing a key holder can feel like a devastating blow in the immediate moment, you as a small business owner have weathered similar storms before. So, here’s a roadmap to navigate this challenging situation that you can follow and restore order: 1) Assess the Damage Identify critical knowledge. Start by mapping out the specific knowledge and skills the departing key holder possessed. What processes did they manage? What information did they hold? Involve other team members to ensure a comprehensive understanding. Evaluate impact. Analyze the potential consequences of their absence. Which areas will be affected the most? What could go wrong if this knowledge remains inaccessible? Take some time to quantify the potential risks to prioritize your response. 2) Take Immediate Action Secure existing information. Before anything else, prioritize safeguarding critical information. Collect all documents, notes, passwords, and resources linked to the key holder’s expertise. Create a central repository for easy access and prevent accidental deletion. Communicate internally. Inform your team about the departure and express appreciation for the key holder’s contributions. Acknowledge the challenges but emphasize your commitment to overcoming them together. Open communication fosters team spirit and resilience. 3) Long-Term Solutions Knowledge transfer. If possible, initiate a knowledge transfer before the key holder leaves. Encourage them to document processes, create training materials, and mentor colleagues to pass on their expertise. This may require incentivizing their participation. Seek external resources. Consider hiring consultants or freelancers with similar knowledge to bridge the gap temporarily. Leverage external expertise while building internal solutions. Upskill existing employees. Identify team members with potential and invest in training programs to develop their skills in the lost expertise area. This fosters loyalty and builds internal capacity for the future. Embrace alternative solutions. Explore technology or software that can automate previously manual tasks handled by the key holder. Consider if digitalization can replace or mitigate the knowledge gap. Remember Be proactive, not reactive. Start planning for potential departures before they happen. Cross-train employees and document crucial processes to mitigate future risks. Invest in your team. Empower your employees by encouraging initiative, providing continuous learning opportunities, and fostering a knowledge-sharing culture. Seek support. Don’t be afraid to ask for help. Industry associations, professional networks, and business mentors can offer valuable guidance and resources during challenging times. Losing a key holder can be a daunting experience, but it doesn’t have to spell doom for your small business. By taking swift action, fostering a collaborative environment, and investing in your team’s growth, you can overcome this hurdle and emerge stronger, more resilient, and prepared for future challenges. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

How to Transition from a Self-Employed Job to an Actual Business

September 24, 2020 No Comments

There’s a really big difference between owning your own job and owning a business. we’ve touched on this subject before, and how to tell one from another. But if you’re in this situation (read: predicament), You’re probably wondering how to transition or more particularly, transform, your self-employed job into a full-fledged business. it’s not necessarily a simple process, but it’s definitely not impossible, in the vast majority of cases. With the right advice, and a bit of vision and perseverance, you can make the transition from a self-employed gig to an actual business. The Difference between “Owning” Your Own Job and Owning a Business If you’re reading this article, chances are excellent that you are in a particular set of circumstances. That is, you don’t work for an established corporate entity, but do work for yourself. However, you’re a one person show. You do it all. Everything is up to you. Most Americans love the idea of starting their own business and being their own boss. Who wouldn’t? If you already have the skills to deliver the product or service to customers, why would you not set out on your own? The sad truth is that most business owners in today’s world do not actually own their own business — their business owns them. They never learn how to create business models capable of producing both time and financial freedom. —Forbes It’s you who is responsible for the productivity, the customer service, the back office stuff, marketing, and everything that goes into making it possible. But, you don’t have any employees, or contractors, or only occasionally rely on others to pick up when you simply can’t do it on your own. In other words, if you’re not working, you’re not earning. However, if you can leave the operation to others, and are not the soul producer, then you own a business. This represents the key distinctions between the two. How to Transition from a Self-Employed Job to an Actual Business Now, given those very stark differences, how exactly do you transform your self-employed job into a real business? Basically, you’ll have to change and break a number of routines and habits. Here’s some helpful steps you can take to make the transformation happen: Envision what you would like the business to eventually be. This is something that you’ll have to constantly revisit in order to make your dream come true. Even if you hire someone part-time, or get to a position where you have more than one full-time employee, you must always think about the next step up. Expand your team. Okay, This sounds blatantly obvious, but it’s something that too many people in this position get hung up on for way too long. They might occasionally rely on a freelance contractor, or even higher on one or more part-time or full-time employees. But, they’re always focused on productivity, rather than actually expanding the business with marketing, networking, and more. Instead, bring in one person to contribute to the work at hand. Then, bring on someone else to help with the administrative side. You can repeat this process a couple or few more times to really build up a fully legitimate business. How to Cash Flow Expansion. One of the greatest challenges for solo business operators, is to ensure they sufficient cash reserves and cash flow to capitalize their expansion. Consequently, they simply accept their current status and don’t take on the risk to expand. Frankly, your risk of starting your business was much greater than expanding! This will help; Forecast or Budget what you estimate you will need in terms of capital to cash flow the next 6 months of expansion (new hires, added marketing, etc.), until the sales increase sufficiently to offset your increased cost of hiring support. Then, the key is to offload your responsibilities that can be done by someone else, and only take on those responsibilities that brings in revenue and the highest value to your expanding business. What other suggestions do you have to truly transform a one-person gig into a legitimate business? Please take a moment to share your thoughts and experiences so others can benefit from your prospective! Interested in learning more about business? Then just visit Waters Business Consulting Group.