Business Education

I Want to Create a New Position for My Small Business – So How Do I Go about It?

Entrepreneurs wear many, many hats. It is not at all unusual for a small business owner to perform several different roles. But, this Jack of all trades, master of none can’t go on in perpetuity. The longer it lasts, the less chance there is that the business can scale up. In order to grow a company, it’s necessary to have help and many business owners reach a point where it is unavoidable. So, they make a few hires but still continue to perform various functions until they realize that a new position will free them up to pursue their main goals.

Hiring should Equal Growth

It’s very common for small business owners to be nervous about their first hires. However, they eventually get past this and the team settles into a comfortable routine. This can easily result in a false sense of security and it’s not at all unusual for the owner to slip right back into or continue bad habits.

If a heavy workload causes your employees to feel overwhelmed and frustrated, it may be time to add new positions to your department. Hiring an additional staff member or two can help you split tasks between employees more equitably and give employees the time they need to devote to their work. —Houston Chronicle

Sure, someone has to perform those functions and the owner typically feels it is his or her responsibility. But, there comes a time when it’s clear that handing off at least some of those tasks to someone else would be very beneficial. What generally holds a business owner back is not having a clearly defined position, as they did with previous hires. Fortunately, there are some steps you can take to create a new employee position.

How to Create a New Employee Position for a Small Business

When it becomes obvious that you’re taking on too much, be it administrative tasks or something else, it’s time to seriously consider hiring someone to do that work for you. Here are some steps you can take in order to create a new employee position:

Estimate its ROI. Before you start posting job openings, take some time to work out the most likely return on investment. Ask yourself if one or more of your current employees can assume these responsibilities. If not, then it is more likely you need to create a brand new position. Just work out a realistic scenario on how much this will add to expenses and what size return of investment you’ll get for this potential hire.
Determine if it’s part or full time. Next, you’ll need to determine whether this is a part-time or full-time position. Go over your schedule and create a ballpark figure of how much time you spend on these tasks. This will give you a pretty good idea of the number of hours you’ll give over to a new employee. Plus, it will tell you how much time you gain back doing more important things.
Compile a list of applicable skills. Now, you’ll need to create a list of applicable skills that a new employee would need to possess. This will also tell you if these responsibilities are truly interrelated or if they are a mixed bag. What’s more, it will point you in a more specific direction and help you to hone in on the right personality.
Advertise the new position and interview potential candidates. Last but certainly not least, it’s time to fill the new position you’ve created. Write a job description that defines the role and your company’s expectations, then advertise it in trade publications, and on social media.

What other suggestions do you have for an entrepreneur who is considering creating a new team member role? Please share your experiences and thoughts so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Entrepreneurs, Let’s Talk Frankly About the Dreaded “S” Word

September 19, 2024 No Comments

There are many experiences entrepreneurs will thoroughly enjoy building up a business, but there are also circumstances they anxiously dread. The proverbial roller coaster ride of running a business is something that delivers a plethora of challenges and rewards alike. Still, for all the difficulties, most individuals learn to adapt and successfully transform problems into solutions by making them valuable learning lessons. Although nearly half of all new businesses fail within the first 3 to 5 years, others cannot only persevere but profit and gain an impressive track record that even exceeds their expectations. Some entrepreneurs find themselves far more successful than hoped and enjoy long and fulfilling careers. However, nothing lasts forever and this inevitability can be a very frightening reality for those who are unprepared. These individuals face a very stark set of circumstances, having to come to grips with the fact they cannot run the company forever because every entrepreneur must take on the unenviable challenge of handing the company over. Whether they want to utter the word aloud or not, all business owners must deal with the dreaded “S” word: succession. Business Succession Planning Shouldn’t be So Scary You went into business for yourself and now, it’s thriving. Earnings are up, costs are down, and you’ve got a great team around you, even better, very happy customers. At this point, it feels like everything has finally come together. You made it through the trials and tribulations, and now, you’re feeling financially secure. The future looks right, but then you realize your business won’t always be yours. Maybe you’re lucky enough to have trusted family step up and take your place. But, even family businesses aren’t immune from incompetent or lazy people who you just cannot trust to take the reins. This means crafting a clear and actionable succession plan. Creating a succession plan is crucial for business owners, yet many are apprehensive about actually doing it. So, let’s talk about why it’s important and better yet, how to overcome that hesitation. The Importance of Succession Planning A succession plan is vital for business owners as it guarantees a smooth transfer of leadership and ownership when key figures retire, leave, or pass away. It helps maintain operations without major disruptions, preserves the company’s value, and secures its long-term legacy and stability during transitional periods. Here are the reasons why having a plan in place is critical. First of all, a succession plan greatly aids business continuity. It ensures the company can continue operating smoothly in case of unexpected events like illness, death, or retirement of key leaders. Secondly, a succession plan helps to preserve value. A well-planned transition maintains the business’s value and reputation, protecting stakeholders’ interests. Third, it reduces uncertainty because it provides clarity for employees, clients, and partners about the company’s future direction. Additionally, a meaningful succession plan facilitates strategic planning by encouraging long-term thinking about the company’s goals and leadership needs. What’s more, having a well-thought-out succession plan minimizes conflicts. This is due to the fact that clearly defined succession plans can prevent disputes among potential successors or family members. 7 Effective Ways to Overcome Your Apprehension As you know, running a business isn’t just about managing employees or keeping customers happy. Often, the challenges are more personal. Many business owners find themselves sacrificing valuable family time, personal hobbies, and social activities in order to grow and sustain their company. One of the most feared challenges is handing the company over to another person to run it. This can easily lead to unnecessary and perhaps damage-inducing procrastination. While apprehension about such scenarios is natural, it’s important to take control and get over your fear by taking the following steps: Start early. Begin planning well before you intend to step down. This removes immediate pressure and allows time for careful consideration. Break it down. Tackle the process in smaller steps rather than trying to create a comprehensive plan all at once. Seek professional advice. Consult with lawyers, accountants, and business advisors who can guide you through the process and address specific concerns. An experienced business coach is an invaluable resource in these situations. Involve key stakeholders. Engage trusted employees, family members, or partners in discussions to gain different perspectives and build support. Focus on opportunities. View succession planning as a chance to secure your legacy and ensure the business thrives beyond your tenure. Also, educate yourself. Learn about successful succession stories in your industry to gain insights and inspiration. Consider multiple scenarios. Develop plans for various situations (e.g., planned retirement, unexpected illness) to feel more prepared for different outcomes. Regularly review and update. Treat the succession plan as a living document that evolves with your business, reducing the pressure to create a “perfect” plan immediately. (Be sure to periodically review and update your plan as needed so it accurately reflects the current situation and is viable for near-future use.) By taking steps to overcome apprehension, business owners can better secure their company’s future and their legacy. Although doing so may create anxiety and uncover some unpleasant realities, this is absolutely necessary to maintain the health and integrity of the company. 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 480-636-1720, 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 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 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.