Business Education

3 Effective Ways to Beat Zoom Fatigue

Family businesses generally operate a bit differently than traditional companies. While many aspects are the same or similar, odd situations occur more often in family businesses. And, that’s due to the fact it’s family and not “strangers” that are part of the day-to-day operations. So, common things in regular business arrangements might be quite different than in a family business. For example, employee compensation. Some family businesses neglect to give their employees pay raises because they are members of the family. In other words, it’s not a common practice, because the business is run by a family, instead of unrelated individuals. Of course, the phenomenon of unconventionality is something that can easily be part of a family business, simply because all the individuals involved are related and feel an obligation and duty to the company.

Family Business Fringe Benefits are Fine, but Not Compensation Replacements

Some family businesses provide their employee relatives with certain fringe benefits. These might be things like extra flexibility with schedules. Or, extra time off for vacations with pay. It could even be things like a company credit card and/or a company vehicle.

The job of operating a family-owned company is often grievously complicated by friction arising from rivalries involving a father and his son, brothers, or other family members who hold positions in the business, or at least derive income from it. Unless the principals face up to their feelings of hostility, the business will suffer and may even die. —Harvard Business Review

While such perks are nice, they do not take the place of compensation. But, it isn’t at all uncommon for the family business head to see such fringe benefits as a replacement for compensation. Since their relative employees enjoy perks, they view this as some type of offset to a raise and reasonable pay. This can create very awkward and sometimes even toxic situations to arise. Moreover, if non-relatives are working in the company, who do receive bumps in pay periodically, this can lead to outright resentment.

How to Talk about Pay Raises in a Family Business

Needless to say, it is a very frustrating and even unfair position to be put into by the very business you so loyally serve. Worse still, is that the longer you let it go on, the more normalized it becomes. And that is definitely something you don’t want to happen. Here is some effective advice for approaching the subject about a raise in pay from your family business:

Determine your actual value. This applies to every employee, and not just individuals working for family businesses. You need to know for certain what your worth is, based on real-world comparisons. Unfortunately, too many employees overestimate their value and therefore, ask too much from their employer. So, be sure to do your research in order to determine your actual value in the workplace, base on your skill sets, experience, position, and responsibilities.
Understand the company’s financial position. Before you bring the subject up, be certain that you know the financial circumstances of the business at large. Don’t assume anything, particularly if you’re not regularly involved in the company’s finances. Guessing and vague ideas will only lead to trouble in one form or another. If you do not have a firm understanding of the business’s financial situation, it might make the entire exercise moot. Or, it could also cause you to become envious and greedy.
Be calm, reasonable, polite, but firm. There’s no question that being in such a set of unfair circumstances will cause you to have any number of negative feelings. Remember these are counterproductive to your end goal. You will get much further by being respectful but firm and by engaging in a good-faith negotiation, rather than starting a family feud. If you let your negative emotions get the best of you, it will only lead to a bad outcome in the short term, and perhaps even ruin your relationship over the long term.

What other suggestions do you have for such a peculiar and awkward situation? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Ways Business Owners can Deal with Personal Crisis

May 18, 2017 No Comments

Entrepreneurs, by their very nature, are self-reliant. They set goals and achieve them with confidence. When a personal crisis strikes a business owner, it can be very damaging to their corporate environment and even its micro-culture. Suddenly, the dynamics change and can lead to irreparable harm. We’ve all heard the advice not to bring personal problems into professional space, but, some are so large they have a nearly uncontrollable effect. It’s best to bring the situation into perspective, but, doing so might be difficult to accomplish. Ways Business Owners can Deal with Personal Crisis In some instances, it’s possible to prepare a business for a crisis. When it’s impending and inevitable, business owners should prepare by speaking with their team members about delegating and assigning responsibilities, seek legal advice (if applicable), and focus on what’s most important. There will be difficulty in maintaining balance but by being proactive, you’ll have less to worry about. Eventually it happens to the best of us. Something occurs in our personal lives that is so devastating, we have difficulty concentrating at work. It may be the death of a loved one, a divorce, a financial crisis, or serious damage to our homes. When our personal lives are in chaos, it can be hard to focus and get what we need to do done. —Inc.com Unfortunately, it’s often the case that a personal crisis strikes without warning. When it does occur, it can be very burdensome to get through. Even the toughest entrepreneurs will have difficulty trying to deal with upset in their personal lives while continuing to run their businesses. Here are some ways business owners can deal with a personal crisis: Outsource and be willing to ask for assistance. It’s okay to let go and farm-out work during turbulent times, especially if you’re having trouble staying focused and concentrating. Also, there’s no shame asking for assistance from your team — it’s actually a smarter choice. Be upfront with customers. As soon as possible, let your clients know about the situation. You don’t have to go into details, but you ought to alert them to what’s going on, particularly if you’re not able to work as usual. You’ll find most to be understanding and that helps to give you some peace-of-mind. Surround yourself with positive people. This is something that successful entrepreneurs naturally do but it’s very important when you’re going through tough times. Personally, I lean on others as well as my faith and prayer to shoulder the burdens of crisis. It’s uplifting and it can be a way to see the silver lining knowing others are walking with you. Give team members more flexibility. Your employees are huge assets to your business and during a personal crisis, can be the best go-to source for carrying-out day-to-day operations. Give them the flexibility that’s needed to keep your company running smoothly. Do not put undue pressure on yourself. If there’s one thing entrepreneurs struggle with, it’s the fear of not getting the job done. When you are dealing with personal issues, give yourself permission to lighten your workload. Take time to reflect on what’s most important. This is an ideal time to put everything in perspective. Give yourself time off and reflect on what’s truly important in your life. In addition to these, you should be honest with yourself about your life’s direction. Some business owners who experience a personal crisis use it as a learning tool advantageously, but others allow the event to cloud their judgment and make rash decisions. When you’re not thinking clearly, be willing and ready to ask for advice from someone you trust. In my life, I have found great opportunity comes from crisis because of my willingness to reflect and make changes. How have you overcome crisis and remained focused and successful with your business? Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

Now Might be an Opportune Time to Expand Your Business — Here’s Why

July 29, 2020 No Comments

Any experienced financial advisor will tell his or her clients to buy when the market experiences a downturn. “Everything is on sale,” is the old adage, and for good reason. If an investor rides the roller coaster, he or she will make up any “paper losses” only to add real gains later on. Business owners know this but are often too afraid to take the risk. Then, later regret not seizing the opportunity. Why Economic Downturns Create Opportunity Most economic downturns hurt a variety of industries. By the same token, that creates opportunities for those unaffected, and even those who are. Here’s an example. A construction business will probably suffer during an economic downturn as more people will attempt to go the DIY route. But, once the homeowner gets in over his or her head, they’ll need a professional. Entrepreneurs are often reluctant to spend money to make acquisitions, expand capacity or open new markets during an economic downturn. However, downturns can be an ideal time to invest in your business. Every recession creates opportunities for innovative entrepreneurs. And inaction doesn’t mean safety in uncertain times. Rather than simply hope things will get better, you should act to improve your operations and position yourself for growth when the economy recovers. —Business Development Bank of Canada The contractor who continues to aggressively market their services will likely be the one to benefit. Because their competition will likely cut back on advertising and maybe even layoff crew, the construction firm that remains publicly out front will reap the rewards of strategic marketing. Meanwhile, those who pulled back will only continue to shrink. 3 Reasons Now is the Time to Expand Your Business Even though just about everyone knows that a bear market presents opportunity, a good percentage will err on the side of caution, rather than taking a risk. So, it’s important to know the rewards that favor those who seize the opportunity. Here are three reasons now the time to expand your business: Commercial real estate is slow. Because of the nature of this economic downturn, commercial real estate is in a slump. That means you can use the circumstances to your advantage and negotiate a favorable deal. With a little bit of swagger and confidence, and a keen eye on opportunity, it’s possible to negotiate aggressively and score a real win. Remote work costs less than on-site. It’s no secret that remote workers cost substantially less than on-site employees. This is a great way to expand your workforce while getting a substantial discount and expand your business as a result. This also allows you to streamline your processes to get more productivity without paying more for it. There’s a larger pool of talent available. When the economy slides, many talented individuals become unemployed. That means, if you’re discerning enough, you can put their advanced skill sets to work for your business. What’s more, motivated and successful individuals will most likely come to you, while lackluster individuals and people who aren’t ambitious won’t. What other suggestions do you have for expanding a business? Please share your thoughts and experiences by commenting and giving others some ideas! Interested in learning more about business? Then just visit Waters Business Consulting Group.

What Small Business Owners Need to Know about Instituting Employee PTO

September 1, 2023 No Comments

Providing Paid Time Off (PTO) is a critical component of a comprehensive employee benefits package. For small business owners, understanding the nuances of PTO can be crucial for both employee satisfaction and business success. In the following article, we will explore the pros and cons of offering PTO to your team members, helping you make informed decisions that balance employee well-being and operational efficiency. The Pros and Cons of Small Businesses Offering Paid Time Off As you already know, Paid Time Off (PTO) is a benefit that allows employees to take time away from work without losing pay. It can be used for vacation, sick leave, or other personal reasons. While there is no federal law requiring small businesses to offer PTO, many states do have their own laws. For example, California requires employers to provide at least 10 days of paid vacation per year after an employee has been with the company for one year. So, be sure to look into the specific laws in your area in order to be legally compliant. Pros of Offering PTO When small business owners first consider instituting a Paid Time Off program, they of course think about the cost. But entrepreneurs should also equally consider the enjoyment current employees will experience, and the appeal it will have for future hires. Such a benefit has other positives, too, including the following: Employee well-being. Offering PTO demonstrates your commitment to your employees’ work-life balance and overall well-being. PTO also helps reduce stress levels for employees. When employees are able to take time away from work to relax and recharge, they are better able to cope with the demands of their jobs. Enhanced morale. PTO boosts employee morale and job satisfaction, leading to higher levels of motivation and productivity. When employees feel like they are valued and have the opportunity to take time off, they are more likely to be happy and engaged in their work. Attracting talent. A robust PTO policy can attract top talent, showcasing your business as one that values its employees’ time and efforts. In fact, a survey by Glassdoor found that 72% of employees would be more likely to accept a job offer if it included PTO. Reduced burnout. Regular breaks contribute to reduced burnout, increasing employee engagement and long-term retention. This in turn, also reduces employee turnover, which is yet another huge benefit, especially in terms of continuity. Flexibility. PTO provides employees with flexibility to address personal matters, reducing stress and absenteeism. It also provides them with a sense of freedom and less apprehension about having to ask for time off that is not compensated. Plus, Paid Time Off will help to boost creativity and innovation. When employees are able to take time away from their work, they can come back with fresh ideas and perspectives. Cons of Offering PTO Okay, there’s just no getting around the fact that with any change, even an ostensibly positive one, it will come with at least a few downsides. With this in mind, here are the most common disadvantages small businesses experience when introducing such an employee benefit: Operational impact. PTO can disrupt daily operations, especially if multiple employees are on leave simultaneously. That means it’s best to coordinate ahead of time in order to avoid such inconveniences. Financial considerations. Paid time off requires budgeting for wages during employee absences, potentially affecting cash flow. Be sure to have this worked out before making an announcement to your team. Workload redistribution. When employees are on PTO, their tasks may need to be redistributed, causing potential strain on remaining team members. Potential abuse. Some employees might abuse PTO, leading to reduced team productivity and resentment. Yet another downside is a lack of coverage. In a small team, the absence of a key employee on PTO might result in a lack of expertise or coverage. Additionally, if too many employees are taking time off at the same time, it can be difficult to keep the business running smoothly. Tips for Effectively Implementing PTO Policies The decision of whether or not to offer PTO is a complex one. There are many factors to consider, such as your budget, the needs of your employees, and the laws of your state. If you are considering offering PTO, here are a few more things to keep in mind: Clear guidelines. Develop clear PTO policies, outlining accrual rates, approval procedures, and blackout periods. Advance notice. Encourage employees to provide advance notice for PTO requests to facilitate operational planning. Fair allocation. Ensure PTO is allocated fairly, preventing any perception of favoritism or inequality. Seasonal considerations. Plan for peak seasons when PTO might be challenging to accommodate without affecting business operations. Encourage balance. Promote the use of PTO to maintain a healthy work-life balance among employees. Of course, communication is also important. Clearly communicate your PTO policies, including how to request time off and the expected response time. Offering Paid Time Off is a critical consideration for small business owners, with far-reaching impacts on both employees and operations. The benefits of PTO, including improved morale, productivity, and employee well-being, can offset the challenges of operational disruptions and budgeting. By thoughtfully designing and implementing PTO policies, small business owners can create a positive work environment that attracts and retains top talent, promotes employee satisfaction, and contributes to the overall success and growth of the business. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.