Business, Business Education

Help! My Business Partner doesn’t Help Run Our Business!

It’s said that the only ship that won’t sail is a partnership. Outside law and medical practices, few partnerships thrive, let alone survive. There’s a slew of reasons partnerships don’t work out. But, most entrepreneurs go into them because they’re optimists by nature. After all, it’s easy to imagine a worthwhile scenario, particularly when it’s someone who is trusted. However, many of these ventures fail and when it starts to go bad, it’s time to take action.

The Most Common Challenges Partnerships Face

The most common problems partnerships face are incompatibility, money issues, distrust, and then there’s a list of life events. These include death, drug abuse, disability, divorce, and other personal experiences. If that’s not enough, there’s always a divide between visions — one person wants to take the joint venture one way and the other, in another direction.

In an ideal business partnership, everyone contributes their time and labor toward making the company a success. When a partner isn’t pulling her weight, it’s essential to address the problem before resentments develop and the business suffers. In many cases, simply having a frank discussion can resolve your issues. —Houston Chronicle Small Business

What’s more, egos can also become a huge problem — especially when one person is the single source of inspiration. Or, disagreements about staff, expansion, and just about everything related to the operation and future of the business.

How to Deal with a Lazy Business Partner

Fortunately, there are ways to deal with a partner who becomes a bit lazy. If he or she is slacking off or just not producing whatsoever, there’s most definitely an underlying reason. Depending on the circumstances, you can try one or more of the following to deal with a lazy business partner:

Have an honest discussion. Like it or not, you’re going to have to confront him or her, but not necessarily in a confrontational manner. Don’t go into the talk with a bad attitude, or even one of superiority. Any hint of a negative vibe will only serve to turn them off and not cooperate. Talk about your visions for the company and all the good things that will come out of working together. Then, listen carefully to what he or she has to say.
Offer some temporary help. It could very well be that he or she is just going through some personal difficulties. Or, feeling a bit helpless and hopeless amidst the economic disruption. These are very common feelings and the good news is that they will usually pass. Offer him or her a little extra help and support, but put a time limit on it.
Provide a little flexibility. If it is just a temporary situation and he or she will bounce back quickly, don’t let him or her get overwhelmed too soon. Instead, provide them a little bit of flexibility and that can really work wonders.
Consider a total buyout. Obviously, not all circumstances will warrant staying in business together, there are most definitely situations that simply won’t work out, no matter how much effort you put in. So, explore your options to sever the business relationship, and a possible buyout scenario.

What other suggestions do you have for dealing with a lazy business partner? Please take a few moments to share your thoughts and experiences so someone else can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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What to Do When Your PPP Money Runs Out

May 7, 2020 No Comments

What do businesses do when their PPP or Payroll Protection Program funds run out? While small companies can apply and receive relief, that money is only finite. It will go just so far before it’s gone. And, once it’s gone, it’s gone for good. Even organizations with business interruption insurance benefits have limited resources. Eventually, the cash will run out. So, what do small businesses do then? PPP Loan Forgiveness Only Solves One Problem It’s important to remember that PPP loan forgiveness — while most certainly helpful — merely solves one problem. Meaning, there are still other debts and obligations to pay and to meet. That alone reveals the fact there’s a lot more to doing business than just compensating employees. Vendors, contractors, and others also need to be paid. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. —U.S. Small Business Administration This gets to the heart of the larger issue — the inescapable reality of the business world. Put another way, if someone paid off one of your personal debts and you had five, six, or ten more, while that’s a blessing and it’s appreciated, it does not get you totally out of debt. Businesses don’t operate that way because there’s always additional obligations. What to Do When Your PPP Money Runs Out Since businesses stay in a cycle of dynamics, with revolving credit and monthly bills, and they apply and receive PPP money, what can they do once those funds are gone? Here are a few suggestions that might prove helpful to your business: Offer invoice financing. Instead of requesting (or demanding) the entire invoice amount to be paid, give them the option to finance their outstanding balances. You can charge a small fee and/or interest rate — so long that it’s legal and ethical. Ask suppliers for extensions. For businesses that owe other businesses money, it’s worth a shot to ask for some more time or at least try to establish payment arrangements. This will help to take off a little pressure and to free up some cash. Review personnel staffing choices. Most businesses already have or will soon, be forced into this scenario — assessing which team members aren’t essential. It’s a tough spot but because employees most always represent the largest expense, this can’t be ignored. Consider liquidation or selling equipment. Another thing you can do is to sell off non-essential equipment, if available. Or, liquidate some inventory or materials. These are all difficult decisions but they could mean the difference between staying in business and going out of business permanently. Offer new services that are in demand now. Look at what services are in demand now that may be in line with your service offerings or a close extension thereof to provide immediate cash flow. Quickly shift to provide those services by promoting them to your current customer base and use social media to get the word out. Several industries and businesses have done this in recent weeks. What other suggestions do you have? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Startup Financing Tips You Can Use

November 14, 2017 No Comments

Startup financing is something that’s necessary but not always a welcome prospect. In fact, financing is typically one of the most difficult factors in any venture. It’s because raising money or applying for a loan is an unnerving process. After all, you don’t know what you don’t know. And, it’s that very ignorance which creates even more stress. But, with the right preparation, you can find the right startup financing. Startup Financing Sources Right now, there are good and bad signs in the economy. While tech companies are booming, retail chains are down. Of course, this is the natural cycle of the business world. So, don’t let headlines ruin your business dreams. Instead, focus on possible startup financing sources. Take a good look at what you really need first. If possible, bootstrap it incrementally. In other words, start off as a side gig. …for an entrepreneur starting out, it can be hard to sort through the many funding options available to determine which are most lucrative. While it would be ideal to line a roomful of investors out and let them fight it out for the honor of funding your business, that is often, unfortunately, not the reality. —Forbes.com If you don’t jump into full-time, you can grow it slowly. That means very little startup capital, as well as time. But, if you need to go another route, consider going through the small business administration. Or, take out a small personal loan. Obviously, if you have the cash, use it. Startup Financing Tips You can Use The problem many entrepreneurs encounter with startup financing, is taking a cavalier, shotgun approach. Put another way, they go after funding without a serious plan. And, that’s a recipe for disaster. Just trying to wing it will only invite chaos and confusion. So, here are some helpful startup financing tips you can use: Create a detailed business plan. Speak with an experienced business consultant about drafting a detailed business plan. This will reveal many things you might easily miss. Plus, it’s typically a commercial loan requirement. You need a clear roadmap and demonstrate your ability to monetize your idea. Seek advice from established businesses. Chances are excellent there are already people doing what you want. So, don’t let that be an intimidation or just look at them as the dreaded competition. Instead, seek out their advice and learn. Keep an eye on your personal credit score. If you do apply for a loan, your personal credit file will certainly be a big factor. Order your three credit files from Annual Credit Report.com. Then, go through each carefully to review for errors. Dispute inaccuracies and raise your credit score. Develop a good network with the right people. Networking is an invaluable resource. In fact, you’ll learn quite a lot from others. And, since that knowledge is readily available, there’s no reason not to tap into it. Outline a realistic budget and shop for financing. Finally, set a realistic budget and then shop for funding. Comparison shop and take your time. You’ll come out much better if you do and be thankful for your patience. What other startup financing options can you add to the list? Have you found or know more creative ways to get startup financing? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

If You’re Hiring Based on Skills, You’re Hiring Wrong — Here’s Why

March 2, 2022 No Comments

There’s an internet meme going around that makes a profound point, “Hire based on attitude, not skills — because you can always teach skills.” And, it backs up some very interesting statistics. For instance, did you know that 85% of a company’s success is due to the team’s attitude, and only 15% is due to individual skills? That’s why when businesses are looking to hire new employees, they should focus on finding individuals with the right attitude, not just those who have the perfect skill set. So, let’s expound a bit as to why. Attitude vs. Skill When it comes to hiring new employees, many businesses focus on finding candidates with the appropriate skills for the job. However, in order to create a successful and productive team, it’s important to also consider attitude. A positive attitude is essential for maintaining a positive work environment and achieving company goals. Is it better to have someone in a team lead role who has a strong work ethic and is all-around positive and can learn the skills or is it better to hire someone based on skills only? What is most important — the skill set or the attitude and growth potential? It depends on the job. There are some jobs where it might make sense to hire for attitude and teach the work itself when it won’t require a major investment of time to do so. There are other jobs where experience and a pre-existing skill set are essential. —Inc.com Therefore, businesses should focus on hiring people who have the right attitude, even if they may not have all the necessary skills. With the right attitude in place, employees can be taught the required skills over time. This makes sense, especially when looking at first-time job seekers in entry-level positions. Those individuals often have little to no skills at all. Those are taught through direct instruction and experience. The Advantages of Hiring Based on Attitude Rather than Skills There is no question that skills are a critical component of any employee’s toolkit. However, research has shown that an individual’s attitude is a stronger predictor of success than their skills. In order to capitalize on this, businesses should consider hiring based on attitude rather than skills due to the following reasons: Longevity. Hiring based on attitude will help you find candidates who are motivated and passionate about their work. These are the employees who will go above and beyond for your company. They will be more engaged in their work, and they will be less likely to leave their positions. Synergy. Hiring based on attitude will help you find candidates who are a good fit for your company culture. This is extremely important, as it can save you time and money in the long run. If a candidate is not a good fit for your company culture, they will likely be unhappy and unproductive in their position. Flexibility. Hiring based on attitude will help you find candidates who are able to adapt to change. When a company hires based on skillset, they may hire someone who has very specific knowledge and experience in their field. But this person might not be able to adapt when things change in the future. What other benefits are gained by hiring based on attitude instead of on skillset? Please take a moment to comment and share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.