Replacing a manager in any size business presents a number of challenges. It’s not just finding the person with the right skill set, or the most experience, or even the best aptitude for the position, but all of these and more. Unfortunately, too many administrators and entrepreneurs only look at these types of qualities. They fail to factor in other intangibles that would benefit their team members the most. Read on to learn about the three most important qualities of a replacement manager. Why Past Job Performance is No Guarantee of Future Success You’ve no doubt heard or experienced two different cliches: that past performance of an investment is no guarantee of its future result, and the Peter Principle (the phenomenon of people rising to their highest level of incompetence). Unfortunately, this is where many administrators and business owners go wrong. They mistakenly believe that an individual’s past performance is indicative of future results. But, this just isn’t true. Bad managers cost businesses billions of dollars each year, and having too many of them can bring down a company. The only defense against this massive problem is a good offense, because when companies get these decisions wrong, nothing fixes it. Businesses that get it right, however, and hire managers based on talent will thrive and gain a significant competitive advantage. —Harvard Business Review Sure, it’s absolutely necessary to look at a candidate’s previous experience and performance. It’s also just as necessary to rely at least somewhat on their proven skill set and untapped potential. However, this isn’t likely to give you a good overall evaluation of how he or she will fit into his or her new role. 3 Important Replacement Manager Traits One of the most difficult aspects of replacing a manager in any type of business is how he or she will be received by the team members he or she will lead. So, ask yourself if potential candidates have the following qualities: Empathetic ears. There are many different kinds of managers out there, and some of them are a better fit for a promotion or lateral move than others. Depending on their new responsibilities, you most definitely want them to be ambitious and take ownership of their responsibilities. Equally so, it’s critical to have a manager who truly listens to their team members because this will be the perception employees have of the company overall. Decision confidence. Obviously, if someone has all the experience and potential to move up or across, he or she should likewise possess a strong self confidence. In other words, a manager who doesn’t always have to rely on higher ups to make decisions, particularly ones that are relatively small. After all, you don’t want to put someone in a management role who just can’t make up their mind and constantly comes to you for those very reasons. Golden rule follower. If there’s one thing that rank-and-file team members despise the most, it is managers who cannot follow their own rules. Hypocrisy, double standards, and negative traits such as these will quickly erode away employee morale and productivity. Nobody performs well under such types of management, because it is so counterproductive by its nature. What other suggestions do you have for replacing a manager as a business owner? 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.

Even before the collapse of Silicon Valley Bank or SVB, there was a tightening in the commercial credit market. Post-collapse, small businesses have found it increasingly more difficult to secure capital from traditional lenders. Still in need of cash infusions and lines of credit, small businesses are turning to alternative lenders. Advantages and Disadvantages of Borrowing from Alternative Small Business Lenders Alternative small business lenders are non-bank lenders that provide financing to small businesses. They offer a variety of loan products, including term loans, lines of credit, and equipment financing. Alternative lenders often have more flexible lending criteria than traditional banks, making them a good option for small businesses that may be turned down for a loan from a traditional lender. Of course, even though all of this sounds good, there are reasons small businesses have historically relied on traditional lenders. This is due to the fact that there are not only upsides but also, downsides to using an alternative lender. So, let’s take a look at the pros and cons of borrowing from alternative lenders. Pros of Borrowing from Alternative Lenders Faster approval and funding. Alternative lenders often have a streamlined application process that can be completed online or over the phone. This can lead to faster approval and funding, which can be critical for businesses that need money quickly. More flexible terms. Alternative lenders may be more willing to work with businesses that have less-than-perfect credit or that are in the early stages of growth. They may also be more willing to offer loans with longer terms or lower interest rates. More options. Alternative lenders offer a wider variety of loan products than traditional banks. This includes term loans, lines of credit, and merchant cash advances. No personal guarantee required. Some alternative lenders do not require a personal guarantee from the business owner. This means that the business owner’s personal assets are not at risk if the loan is not repaid. Although these are some quite compelling reasons to seek out capital from an alternative lender, there are also a few considerations you should take into account so you have a better understanding of how these lenders work. Cons of Borrowing from Alternative Lenders Higher interest rates. Alternative lenders typically charge higher interest rates than traditional banks. This is because they are taking on more risk by lending to businesses that may not be as creditworthy. Shorter terms. Alternative lenders often offer loans with shorter terms than traditional banks. This means that the business owner will have to make larger payments over a shorter period of time. Hidden fees. Some alternative lenders charge hidden fees, such as origination fees or prepayment penalties. These fees can add to the overall cost of the loan. Less customer service. Alternative lenders may have less customer service than traditional banks. This can make it difficult to get help if you have questions or problems with your loan. Now you have a better idea of what to expect from alternative lenders, you are more informed about your options and this will give you additional choices. Taking it a step further, you should also consider the following if you are in need of a line of credit or some operating capital. When to Borrow from an Alternative Lender Alternative lenders can be a good option for small businesses that need money quickly, have less-than-perfect credit, or are in their early stages of growth. However, it is important to carefully consider the pros and cons before choosing an alternative lender. If you are considering borrowing from an alternative lender, be sure to shop around and compare rates and terms from multiple lenders. You should also read the fine print carefully to understand all of the fees and conditions associated with the loan. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

A recent Harvard Business Review study found that nearly forty percent (39%) of employees report their coworkers don’t collaborate enough. There are several reasons for this, but whatever the causes, it’s very important to address this issue when it arises in order to get the most out of any team. If poor collaboration continues to persist, it will do real damage to a company – no matter how big or small. So, it’s critical to take action right away. Otherwise, it could very well unleash deleterious effects that just may be irreversible. The Consequences of Poor Employee Collaboration When employees are not collaborating effectively, it can lead to duplication of efforts, miscommunications, and confusion. This can result in employees spending more time trying to figure out what their coworkers are doing, rather than focusing on their own tasks. As a result, overall productivity can suffer. Employees who are not able to work well with others may become frustrated, leading to lower morale among the team. This can also create a toxic work environment, leading to high levels of absenteeism and turnover. It goes without saying that when your employees work together, they’ll be more effective. Not only can people accomplish more as a group, a collaborative atmosphere could motivate employees to do more. But if you feel like employees aren’t cooperating as well as they should, there could be a hidden problem brewing under the surface. —American Express Effective collaboration is crucial for innovation. When employees are not able to work well together, it can stifle creativity and prevent the development of new ideas. This can make it difficult for businesses to stay competitive in a rapidly changing marketplace. Poor collaboration can lead to mistakes, delays, and other issues that can impact the quality of the product or service that a business provides. This can lead to dissatisfaction among customers, who may take their business elsewhere. How to Encourage Better Workplace Collaboration among Employees Collaboration is crucial for success in today’s business world. When employees are able to work well together, it can lead to higher productivity, improved morale, and greater innovation. However, fostering collaboration among employees is not always easy. Here are a few tips for encouraging better workplace collaboration: Provide the right tools. In order for employees to collaborate effectively, they need the right tools. This may include project management software, group messaging platforms, and online collaboration tools. By providing the right tools, you can make it easier for employees to communicate and share ideas. Encourage open communication. Open communication is key for effective collaboration. Encourage employees to speak up and share their ideas, even if they are not sure if they are “right”. By creating an environment where it is okay to ask questions and share ideas, you can foster collaboration. Create a collaborative culture. Collaboration should be a core value of your business. Make sure that this value is reflected in your company culture, and encourage employees to work together to achieve common goals. Provide training and support. Collaboration is a skill that can be learned and developed. Consider providing training and support to help employees improve their collaboration skills. This may include workshops, mentoring programs, and other resources. Recognize and reward collaboration. Finally, don’t forget to recognize and reward collaboration. When employees work together to achieve a common goal, make sure to recognize their efforts. This can be as simple as a shout-out in a team meeting, or something more formal like a team-building event or award. By following these tips, you can encourage better workplace collaboration among your employees. This will help to improve productivity, morale, and innovation at your business. What else can businesses do to foster and improve employee collaboration? Please take a few minutes to share your own thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.