Hiring People to help you with your Business -

I was just contacted by someone who has a small business that they run out of their home office.  This is the type of client that I really enjoy working with...why, because there are so many things I can help them with besides getting their books set up or cleaned up. 

As I've written before, this economy has created new opportunities for people who would otherwise be gainfully employed.  People are going down new paths by starting their own businesses or exploring self-employment or contract work.  Often these folks are just moving forward quickly without much planning.  In fact, I think it is probably the rare individual who actually takes the time to do a formal plan...at least that's been my experience.  Of course many self-employed people are providing services and those types of businesses are pretty easy to get started.  Low overhead, low cash outlay.  But even these people need help recording their transactions and keeping organized so tax season isn't a fiasco... which brings me back to what I wanted to mention here.

It is very important when you are meeting with your new bookkeeper, insurance broker, graphic designer or even attorney that you have enough conversation to determine if they are listening.  I have met with people who fired their last bookkeeper or insurance agent or???? because they didn't believe that the individual was listening to them or understood where they were coming from.  No matter how experienced, talented or informed they may be, if they are not good listeners, over time, things will probably get off track and you will become frustrated and not even realize why.
Listening is an important skill for anybody.  Without this skill you will be missing one of the most critical factors in developing a relationship with your client.  When you can listen and actually encapsulate what was expressed to you and repeat it back ... you will be surprised at the reaction of the party on the other side.  Why?  Because when someone feels they have been heard they are more likely to move forward with this person whether it is a business relationship or a personal relationship. When you know you are heard...that this person "gets you" you are far more likely to want to work with the person.  The same is true for people you interview to work for you.  If they cannot reiterate what you've told them then something is missing.  There is nothing more frustrating than having people around you who don't listen.  There is enough on your plate without adding this variable to your otherwise busy life.

So once you've determined that someone has the skills to do the job you want them to do, take the additional time to test their listening skills - then decide if you want this person on your team!

How do you arrive at the right price for your product or service?

I was just asked by a business associate, how did I went about arriving at pricing for my services and I explained to him that I started out many years with a figure based on my experience and a few calls...but as the years went by I raised my price to it's current level.  The per hour rate I charge is not based on my overhead but more on the type of service I provide plus a bit of a premium that helps offset other miscellaneous costs.  It's not very scientific but again, it's an evolving factor in my service business.  I am selling a personal business specialist that can help you manage your personal finances or your small business issues.

Now that sounds good, in theory, but as all of us business owners know...it doesn't matter how good it sounds to us if no one is willing to pay for our product or service.  That's where the cold hard facts of reality set in.  No matter how talented you are or how educated you are, the customer you are seeking is still only going to pay what they think your product or service is worth.  Now more than ever, customers are shopping.  They may be willing to pay a little more in some instances but usually they need to be convinced of the 'value add' you are bringing to the table that will justify the premium they will be paying.  So we all need to do our homework when it comes to setting the price point that gets the job or sells the product.  It's part of the job that we all struggle with and trusting your gut might work but there needs to be a little more involved if you're going to get it right and build your business.

Norm Brodsky who is an entrepreneur and writer for INC. Magazine shared some good advice in his column when someone asked him the question, how do you set the price for your product or service.  Solving-the-pricing-riddle?   Hope it gets you thinking and working on finding the right formula that will work for you.

Checking in on our business status -

Believe it or not the end of August is here and we are eight months down for 2010.  Next month estimated quarterly taxes are due and I find it a good time to review things and see how I'm doing.  Some of you have more time into the "self-employment" path than I do but regardless it's never a wrong time to put on paper the goods, the bads and things that need to be changed so you can evaluate and make adjustments so the last quarter of the year produces improved results.

Of course have you been entering your transactions in either Quicken or Quick books or even a simple Excel spreadsheet?  That is the question right?  If you haven't now may be a good time to get started as you will have a difficult time getting a picture of how you are doing without the historical information on hand.  However, as any self-employed individual will tell you..."I know (in their head they know) how I'm doing."

I've always loved that statement because to a great degree it is true.  The person who wears all hats is the most hands on expression of the business.  They know who their customers are, if they are asking for more services, if they are paying their bills and of course they know if the business is growing by virtue of how busy they are.  Yet, the specifics of how they spend their money and what that amounts to or what percentage of their revenue is spent on certain things usually remains to be seen.

People I have had the pleasure working with who were self-employed or just wanted their finances tracked were always, without exception, surprised when the data was organized and put together and they could see, in black and white, where their money was going.  It's quite a wake up call even if you believe you are the most knowledgeable about your finances. 

So, take the opportunity now, before you pay your taxes or the end of the third quarter (9/30) to take the time to put your information together in a way that works for you.  If you're not quite up to speed with Quick books or even Excel, just buy accounting paper and make your own financial statement.  The good thing about this exercise is you will continue to learn about what you know and what you don't know about your business.

Remember, any questions can be easily answered if you take the time to think about them and don't be afraid to talk with others who are self-employed as they are struggling with the same issues as you.  I've found it very interesting to walk into the local retail stores and if they aren't busy, talk with the managers and find out how they think things are going for their business.  You'd be surprised how willing people are to talk about their perception of the economy and how their business has made changes to accommodate the economic challenges and keep business profitable.  Sure, their business is different than yours but we are all challenged by these economic times and it never hurts to check in with other business people who live and work in the same world you do!

How to convey ideas to self and others?

Just this morning I was reading the NYTimes on-line and ran across a great visual addressing all the ideas of money, finance, planning for the future that each and every one of us considers.  It was done in such a unique and creative way I just had to share it.

Here it is -  The Sketchpad: Personal Finance on a Napkin  It draws you into exploring what the ideas are about and hopefully gets you thinking about where you stand and how you would rate yourself.

As we have all learned over time, no one person has the correct answer for all which is why it is important that we take responsibility for educating ourselves about money and the ideas around managing it.  Not that we have to be a whiz at every aspect of financial planning, investments, life insurance, as that makes no sense, but it is our responsibility to ourselves to have at least a global understanding so we can choose people who can help us get to where we want to go.

That, of course, suggests that we know where we are going.  I think that answer isn't always available to folks who work hard in a jobs that only allow them to cover their basic needs.  If you are just living check to check, you may not be able to take the time to think about the future or even believe there is a financial future for you.  But believe me, even those folks who can only save a few dollars here and there are trying to plan for tomorrow.

Take a look at this article and enjoy it's message.  Hopefully for those of you who, like myself, are visual learners, you'll start thinking again how you can better manage your own personal finances.

How are you & your business doing?

Just read a good article that had 15 warning signs that your company is in trouble.  15 Warning Signs your business is in trouble.  When I read it I thought about people and small businesses that I have worked with and could check off at least 5 or 6 of the reasons for many of them and more for others. 

Being on top of your business and what it stands for is important.  Staying in touch with your customers is even more important as they are your best source of feedback for improvements and change in how you do business.  You don't need to hire a marketing firm to do a "focus group" ... you just need to be open and ready to hear about how you are doing.  I've worked for people who were not interested in asking their customers how they were doing.  Instead they pushed ahead on their own agenda without noticing the changes going on around them.  

Check them out and see how many you answer yes to and how you're going to turn things around...it's never too late!

How do you think about money?

Sometimes I like to discuss the role money has played in a client's life.  When they were growing up how did they view it, experience it?  How did their parents manage it?  Was there secrecy around it?  A sense of never having enough?  Did your parents ever have problems related to money?

The reason these types of discussions are valuable is because the answers are filled with reasons as to why you may be challenged with managing money or paying bills or never feeling like you have enough or feeling like you're entitled to spend as much as you want.

Relating back to your business or self-employment, if you are not sure of yourself and feel like managing money is overwhelming, it will be a challenge to take charge of both your business finances and personal finances.  Some spending habits may begin to creep in as you make money in your business but don't really know where all the money is going.

Business and money go together and learning how to do simple things that help you account for your income and manage your spending will lead you to feeling better about the process and increase your confidence in the fact that you can manage your money.

Today's another day to save!

Each day we spend money without thinking about it.  A coffee, a pastry.  Lunch arrives and we go out with friends, lunch out again.  Then there's dinner and instead of cooking we choose to go out and yet another expenditure that we hadn't necessarily planned for is created...and it's probably not one that can be written off as a business expense...right?  This is not new news but these are expenses that over a month's time can add up to a significant amount of money.

Suggestion:  for just one month, keep track of all meals, snacks, waters, coffees and any treats that you buy during the day.  Many of us use our credit card or debit cards to pay for such things so it's easy to keep track by just going on-line to add these up.  Once you do this for a month and arrive at a total - divide it by the number of days of that month and you'll see how much per day you are spending that you could converted into savings! 

When you are able to determine how much you spend on food (whether it's grocery shopping or outside purchasing) then you can figure out what your real cash needs are for food per month and budget that amount for yourself.  Some people just take out the cash, put it away and draw from it when they need to buy groceries.  If you start to make your own lunch, you will be amazed how much of your "food fund" is left at the end of the month.

Just try it some time and see what you discover.  Remember what you're spending could be what you could be saving for your future and your financial security. - another step towards reducing anxiety and building confidence in your ability to manage your money.

Money changes people?

It's been said that money changes people - I'm not too sure. I guess it's because I believe that people are who they are and as each new circumstance enters their life new choices are available, they see new things and who they are appears, only in a different light.

Because I am focused on helping people manage their money on a day-to-day basis, I am always looking to find new ways to do this. New ways to ease their confusion and anxiety. When working with self-employed individuals I find that my optimism over simple things that can be done to make a difference, helps them build hope that they can be in a better financial position...and they can. It just takes the awareness you are in trouble and need help; the willingness to ask for help and the important step...the ability to take action on your own behalf.