Business Education

Business Owners Thinking about Switching to a 4-Day Workweek Here’s What You Really Need to Know

The 4-day workweek continues to gain traction, though it’s a long, long way from becoming standard. Still, recent trials by companies have shown promise for reducing the workweek by one day (something instituted almost one-hundred years ago in 1926 by Henry Ford).

The change is definitely full of ostensible advantages – and big potential. But, this certainly doesn’t mean it’s all upside and no downside. So, let’s take a look at what business owners need to know about switching to a 4-day workweek and what to expect.

4-Day Workweek Pros

Switching to a 4-day workweek can have several benefits for a business. While some are obvious, others may not be so intuitive. Here are a few reasons a company might want to switch over:

Increased productivity

Research shows that shorter workweeks can lead to increased productivity. Employees may feel more motivated to get work done if they have more time to rest and recharge.

Better work-life balance

A 4-day workweek can give employees more time to spend with their families and pursue personal interests, leading to better mental health and job satisfaction.

Cost savings

A shorter workweek may lead to reduced operating costs for businesses, such as lower energy bills and reduced use of office resources through less use of computers, lights, climate control, and more. It can also help to rein in office expenses as it offers an opportunity to scrutinize spending expenses.

It’s hard to say if many employers will find the 4-day workweek structure agreeable. Everyone is watching these kinds of experiments and learning. Plus, it depends on how the economy and workforce evolve and whether these become new expectations from the vast majority of the workforce—as being able to work at least part-time remotely has become for most knowledge workers. —Boston University

So, the very fact that a business will be operating fewer hours translates directly into operating expense savings. (This is something that generally comes to light when there’s a big change and businesses are forced to examine their spending amounts and frequency.)

Attract and retain talent

Offering a 4-day workweek can be a unique and attractive perk that helps businesses stand out in a competitive job market. It can also help retain current employees by increasing their job satisfaction and loyalty.

4-Day Workweek Cons

While these are certainly compelling reasons and sound good in theory, in practice they may not necessarily materialize (or simply manifest in different forms). Of course, as with any new idea, there are bound to be possible drawbacks and problems that could arise unexpectedly. Here are some things you might encounter by adopting a 4-day workweek:

Reduced hours

A 4-day workweek means employees will work fewer hours, which could lead to reduced productivity and output, especially for businesses that require around-the-clock operations.

Workload distribution

Businesses may need to redistribute workloads or hire additional staff to compensate for the lost hours of those who are working a 4-day week.

Operational difficulties

A 4-day workweek could create operational difficulties, such as coordinating schedules with clients or customers who operate on a 5-day schedule.

Reduced profits

Reduced hours could lead to lower profits for businesses that rely on hourly work or have tight deadlines to meet.

Ultimately, whether a 4-day workweek is a good fit for a business depends on its unique needs and goals. It’s important for businesses to carefully consider the potential advantages and disadvantages before making the switch.

What other considerations would you suggest be a part of these? Please take a moment or two to comment so others can benefit from your thoughts and experiences!

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

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Is Crazy Creating Chaos in Your Company?

May 5, 2017 No Comments

We all deal with crazy (read: difficult) people in life. They are rude, obnoxious, oblivious, pitiful, without fault, always victims, stir up drama, and what’s worse, don’t know so. You see, the problem with him or her is someone else besides he or she: another coworker, a family member, perhaps even you. As the head of an organization, no matter its size, you’re bound to run into crazy and what’s simply insane is the fact that you let them through the door in the first place. This is just one way business owners and managers rationalize a situation that’s spiraling out of control. “It’s a phase,” or “he or she just needs a little extra motivation.” Though these thoughts might bring a modicum of comfort, it will be short-lived. If you are faced with an employee that’s ultimately doing more harm than good, you’ve got to deal with the situation before it has time to inflict more damage. Ways to Deal with Difficult Employees In most instances, people that behave this way aren’t at all aware of reality. While you and the rest of your team know it, the problem personality probably has a peculiar position. This is a moving or adaptable perception that assigns blame away from him or her. Of course, this makes things worse because he or she won’t be easily convinced as to what’s truly going on. Often, when an employee is difficult we stop paying attention to what’s actually going on. We’re irritated, it seems hopeless, and we’ve already decided what we think about the employee – so we just turn our attention to other things, out of a combination of avoidance and self-protection. But the best managers get very attentive when someone’s not doing well. They know their best shot at improving the situation lies in having the clearest possible understanding of the situation… —Forbes.com The very first thing you ought to do is to take stock of the dynamics. Put yourself in his or her shoes to try and gain some perspective. If that comes up short and doesn’t provide any tangible answers, you now know he or she is the real source of the problem. Fortunately, there are steps you can take to take crazy out of the company: Separate fact from friction. Yes, friction, as well as fiction. Friction between employees can easily lead to you taking sides because of your affinity for one over the other, which is where fiction comes into play. You should act on facts, not feelings, and not because of favorites. Don’t confuse performance with conduct. One rationalization for keeping problematic employees in the company is because of their so-called “redeeming qualities.” While he or she might well possess some great performance traits, it is his or her conduct that’s actually most important. What he or she might be producing individually could well be undermining his or her peers. Take time to listen and offer solutions. Should the person who brings crazy chaos into your company be a productive team member, you ought to try to invoke a turn-around. Go into a private place and ask if he or she is having any problems, then, tactfully offer solutions. If the response is knee-jerk or obtuse, it’s probably time for ultimatums. Lend a helping hand. Not your own, but someone within your organization you trust. This works best peer-to-peer, where coaching captures cooperation. Though this can work wonders, it can also become a tempting choice in the future. Don’t use it as the fallback position or you’ll simply be known for passing difficult personalities out for others to deal with. Ultimately, you are fighting to deal with a situation, not to win by wrangling control away. You want to create a solution, not to win an argument. If you do chose the latter, you are choosing to join in the craziness and even make the environment worse. Also, know when you’re at your limit, as not every situation can be resolved. There will be times when simply parting ways will be the best solution for you and your business. [shareaholic app=”follow_buttons” id=”26833294″]

Top Ways to Deal with Critics

August 9, 2017 No Comments

There’s simply no way to run a business without dealing with critics. As an entrepreneur, you’ll face doubt in many forms. You’ll face inner doubt, ruminate over which next step to take, receive less-than-positive feedback, and plenty more. What’s more, you’ll have to do so much more, like find ways to keep company secrets safe and navigate through industry changes. Running a business isn’t for the faint of heart and when critics chime-in, that’s precisely where it will hurt most. Top Ways to Deal with Critics Let’s face it, there is no shortage of bad news to discourage you. For instance, if you dream of opening a retail shop, no doubt the latest news out of that sector is troubling. But, it’s commonplace for unpleasant experiences to unfold. This certainly isn’t to say it’s all bad all the time. In fact, that’s part of the problem. When things are going good most of the time, criticism is the biggest wet blanket. Doubters rain on your parade and you scramble for cover. Criticism is part of life, but often times being criticized can make us feel like we aren’t good enough, like we’ve done something wrong, or even cause us to be uncertain about our future. People often take criticism as a personal attack, but in reality, criticism can often be positive. —Fast Company While it’s normal to experience periods of struggle, eventually, you’ll fight through and start to win. Any setback serves as a valuable lesson going forward. And, over time, you’ll enjoy long periods of success without much or any trouble. Then, seemingly out of nowhere, the critics will appear. That’s when you need to be prepared. Otherwise, you’ll become too distracted and won’t have the energy to fully function. So, here are some of the top ways to deal with critics: Teach them, no matter your feelings. Okay, so you don’t particularly like the person who is criticizing you (or your business). And, it’s natural to take it personally because it is your business. But, don’t let this become a missed opportunity. Instead, redirect your feelings and teach him or her. You’ll probably enjoy some accomplishment while turning a critic into a fan. Tell them the truth and do not be fake. You’ll receive at least a little criticism because of your success since it breeds jealousy. That jealousy will manifest into criticism and possibly into anger, even hate. If this does happen, don’t make the mistake of defending your success. Instead, talk about your failures to allow them to relate. Accept that doubters will always be there. Keep in mind that doubt is not the same as an insult (though you just might feel insulted). Rather, doubt is a disbelief in something unfamiliar. And, it isn’t personal, just a way of expressing uncertainty. So, find out what’s doubted and use it to teach. Trial and error isn’t perfect and that’s okay. Sometimes, a new idea can come off as foolish, gimmicky, or silly. But, trial and error are part of business. You need to experiment to know what does and does not work. If you receive criticism, accept it and just move on. Know when it’s time to give a sincere apology. If the criticism is legitimate, you might need to apologize. Know when it’s the right time to say you’re sorry and be sincere when you do. You’ll learn from the experience and move past the criticism, which are good things. How do you deal with critics? What strategies do you use to cope with doubters and doubt? What are your most useful experiences with critics? Please share your thoughts and experiences by leaving a comment. Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

Here’s What Small Business should Really Know about Retained Earnings

March 24, 2022 No Comments

The world has gone crazy. Well, it certainly seems that’s the case. Inflation continues to push up prices on just about everything. There’s a hot war in Europe that’s seriously impacting the free flow (and cost) of energy. All of this, not to mention an ongoing labor shortage, materials shortages, and plenty of other madness, wreaking havoc on day-to-day life. Of course, businesses aren’t immune to this madness — particularly small businesses. What this chaos does teach any entrepreneur or current business owner is the importance of retained earnings. But, what are retained earnings and how can small businesses build them up for difficult times that will inevitably unfold in the future? What are Retained Earnings Anyway? Retained earnings are an important part of any business. They are the funds that a company sets aside to cover expenses during tough times or to reinvest in the business. (Like now, when the entire world is topsy turvy and the economic circumstances are unstable and unpredictable, to say the least.) Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created. —Investopedia.com During normal circumstances, retained earnings are generally used to expand. Examples include hiring additional employees, purchasing new equipment, bringing in new or more inventory to sell, or even acquiring new commercial property. But, when sales slow and the business isn’t earning enough, retained earnings can be used as savings to bridge the gap. How to Build Up a Business’ Retained Earnings One of the most important aspects of any business is its retained earnings. Retained earnings are funds that a company sets aside to cover expenses during tough times or to reinvest in the business. This money can be critical for businesses when they need to maintain cash flow during difficult periods or invest in new opportunities. There are two main ways to build up retained earnings. The first is to generate profits and reinvest them back into the business. This can be done by reinvesting profits into new products, expanding the business, or hiring new staff. The second way to build up retained earnings is to reduce expenses. This can be accomplished by cutting costs in areas such as marketing and/or overhead expenses. If you want your business to be prepared for anything, it is important to have a healthy retained earnings account. By reinvesting profits and reducing expenses, you can ensure that your company has the funds it needs to weather any storm. With a strong foundation of retained earnings, your business can thrive for years to come. Entrepreneurs should also Carefully Consider Retained Earnings if Buying an Existing Business When evaluating a company’s financial statement, it is important to look at the retained earnings line item. This number will tell you how much money a company has set aside to cover expenses during tough times or to reinvest in the business. If you are interested in investing in a company, it is important to make sure that its retained earnings account is healthy and growing. What else do you think new and existing business owners should know about retained earnings? Please share your own thoughts and experiences so others can better understand this important topic. Interested in learning more about business? Then just visit Waters Business Consulting Group.