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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Reasons Why Your Business Stays Cash Poor

May 16, 2017 No Comments

Business owners and management professionals alike know the importance of maintaining positive cash-flow. It serves as the bloodline of a company, no matter its size, or even its asset position. In fact, some businesses learn the hard lesson that too much tied-up in assets is a liability. Having to sell such leverage just to meet obligations isn’t exactly a sign of good management. Another irony is found in two of the biggest reasons business fail: too little business or too much business. It is certainly strange the latter exists, but it’s nonetheless a reality. In fact, a proprietary study conducted by U.S. Bank provides proof — 82 percent of business failures result directly from poor cash management. Even though these entities earn more than enough business to keep their doors open — a lack of proper management is far too destructive. Reasons Why Your Business Stays Cash Poor The fundamentals of cash flow aren’t complicated to understand, but rather, to execute. The movement of funds in and out of a company is what constitutes cash flow — it can be positive or negative. When money is left over after all expenses are paid, that is positive cash flow. Conversely, when outflow exceeds inflow it constitutes negative cash flow — often a death knell of businesses experiencing the same. Cash flow is one of the most critical components of success for a small or mid-sized business. Without cash profits are meaningless. Many a profitable business on paper has ended up in bankruptcy because the amount of cash coming in doesn’t compare with the amount of cash going out. Firms that don’t exercise good cash management may not be able to make the investments needed to compete, or they may have to pay more to borrow money to function. —Inc.com Many businesses struggle with keeping expenses in-check and that’s normal. It’s due to the dynamic ebb-and-flow of a free system in which goods and materials costs can rise or fall as market conditions fluctuate. However, when cash flow is continually poorly managed, it manifests itself in a number of ways. Here are some of the most common reasons why your business stays cash poor: There’s too much tied-up in inventory and materials. Glance back to the first paragraph and this demonstrates a trap into which some businesses fall. That is, acquiring assets of value which must be liquidated to meet an obligation. The entire point of acquiring business assets is to retain same, not to liquidate, especially for day-to-day operating expenses. You’re not constantly examining business-to-business expenses. One of the most common bits of consumer advice circulated is going over every one of your monthly bills one line at a time. The reason, of course, is to be vigilant and discover any unauthorized charges or find slight up-charges in normal line items. Businesses ought to do the same because it’s easy to let recurring monthly bills be paid on autopilot without any real scrutiny. Accounts receivables stay sparsely busy. This is perhaps one of the most unpleasant aspects of doing business — collecting money owed. For some companies debt collecting is left to a single person or small team. For many others it’s the responsibility of the owner. Every dollar that’s in the receivables column is one that isn’t working for your business. There’s poor cash-flow forecasting. What the probable future looks like is very important. While you probably won’t be able to forecast to the penny (even a lot more) it’s worthwhile to have a glimpse into the future, especially when cash-flow is anemic. Growth is reducing cash-flow. Here again we see irony. When a business is growing, it surely must have positive cash flow — right? Not necessarily. There are a number of tricks a company can use to ostensibly grow. Even in a healthy environment, growth can still be a drain on cash and slowing growth can actually improve cash flow assuming your margins and overhead are in line. Another dynamic which can wreak havoc on a business is out of sync credit accounts. When vendors expect to be paid but accounts receivables aren’t set to accept payments before those dates, it unnecessarily reduces a business’ cash position. Obviously, not paying vendors on-time is something to be avoided because it can cost your company in terms of creditworthiness and reputation. You might be the heart beat of your business, but cash flow is the “life blood” of a business. Please follow me on: Facebook | Twitter | Pinterest | Instagram [shareaholic app=”follow_buttons” id=”26833294″]

The Trump Kim Jong Un Summit and Its Most Valuable Lesson

March 13, 2019 No Comments

The world paid close attention to the summit between President Trump and Kim Jong Un. Regardless of its ultimate outcome, there’s a lesson going on every entrepreneur should learn. Namely, how to avoid snakes in business. The Fable of the Scorpion and the Frog They come by different names: charlatans, cheats, hustlers, swindlers, and more. For those who’ve not heard it, the fable of the scorpion and the frog weaves a short, cautionary tale. A scorpion needs to cross a river and asks a frog for a lift. The frog objects, saying the scorpion will sting and kill him. Regardless of their specific methods, con artists typically depend on their abilities to charm, intimidate, and rapidly spin convincing lies. More often than not, con artists are successful because well-meaning staff members accidentally provide crucial information in an attempt to assist them. Ultimately, the best way to protect your business from con artists is to make your team aware that they exist. CEOs and their team members should be constantly vigilant about what they share and with whom. —Forbes.com But, the scorpion points out, if he were to sting the frog, both would drown in the river. The frog reluctantly agrees and midway, the scorpion stings him. The frog asks why and the scorpion replies, “It’s my nature, I’m a scorpion.” How to Avoid Con Artists to Protect Your Business Now, con men cleverly disguise their true natures. They conceal their actual motives and that’s what makes them so difficult to spot. But, there are usually at least one or two (even more) warning signs. Here are a few ways to avoid con artists to protect your business: Listen to your gut. Con men know how to read people — it’s a necessary trait. So, they are careful to convince. Which means, it’s not easy to spot the scheme straight away. But, your gut feeling might be all you need to avoid becoming a victim. Put things into perspective. This is another way of saying, “If it sounds too good to be true, it probably is.” In other words, if you hear something that seems to be too good, put it into perspective. More particularly, place it up against reality. If it’s like trying to hammer a square peg into a round hole, you have your answer. Don’t hesitate to ask around. Shysters need to move on and move quickly before word spreads. While it might not be comfortable, ask around. Do a little digging if you get a funny feeling to see if others had a bad experience. It’s worth your time and effort in the long run. Trust but verify. Along the same lines is to verify. Check out what they’re selling to learn if it’s genuine or just a hustle. With a small amount of sleuthing, you can save yourself a lot of grief. How do you spot charlatans? What additional advice would you give others about avoiding con artists? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Ways Small Business Owners can Help Employees Out during Tough Economic Times

April 28, 2022 No Comments

Small business owners are often in a unique position to help their employees during tough economic times. They may be able to offer more work hours, give gas and grocery gift cards, and allow schedule flexibility for side gigs. In this blog post, we will discuss some of the ways small business owners can help their employees out during these difficult times. How Helping Your Employees Benefits Your Small Business When you help your small business’ employees, they are not only appreciative but often become more loyal. They’ll also be more productive and deliver a higher quality of work, as well. Plus, happy employees are far less likely to leave, meaning you won’t have to find replacements and spend extra time training new employees. During challenging economic times such as a recession, many companies struggle to stay afloat while the employees worry about losing their jobs. Management has the tough task of finding ways to keep employees loyal and productive while assuring them that they can survive the challenging period. —Houston Chronicle Small Business All this is to say that your small business’ employees are a true asset. They are an investment in your company and usually, bring a healthy return on investment. Smart, long-term business owners realize this and therefore do anything and everything they can to help their employees when economic times get tough. 3 Ways Small Business Owners can Help Employees Out during Tough Economic Times Difficult economic times put far more stress and pressure on hourly employees than salaried executives. If your business is in the position to give employees a little help, it will go a long way. Here are three ways small business owners can help their workers through trying economic times: Offer more work hours. Offering more work hours is one way small business owners can help their employees during tough economic times. This can help employees make ends meet and keep them from having to find another job. Give gas and grocery gift cards. Giving gas and grocery gift cards is another way small business owners can help their employees during tough economic times. This can help employees with their daily expenses and allow them to save money on groceries and commutes. Allow schedule flexibility for side gigs. Allowing schedule flexibility for side gigs is another way small business owners can help their employees during tough economic times. This can help employees earn extra income and provide them with better financial stability. These are just a few of the ways small business owners can help their employees during tough economic times. If you are a small business owner, consider how you can help your employees during these difficult times. Your employees will appreciate your support. Do you have any other suggestions for how small business owners can help their employees during tough economic times? Share your thoughts in the comments below. We would love to hear from you! Interested in learning more about business? Then just visit Waters Business Consulting Group.