Grow Your Small Business in a Bad Economy

Corpus Christi, TX – The National Federation of Independent Businesses’ May 2008 survey paints a picture of some very stressed out small business owners. Small business’ earnings are at their lowest point since 1992 and 9 in 10 owners surveyed expect the economy to continue to decline over the next six months.

Laura Harris, a nationally renowned speaker and author of the new small business owner self-help book “Surrender to Win” (October 2008 release), says, “The answer for small business owners in hard economic times is to hire and retain the right staff.”

Here are Harris’ 5 hiring tips:

1) Take enough time to get to know your prospective team member rather than hiring on a gut reaction. Part of the interview process should include introducing the potential employee to key staff so you know how the team members will interact. This process can be invaluable.

2) Don’t hire a prospective employee with an unprofessional phone voice or sloppy appearance. The first impression you have of a perspective employee is the same first impression a client will have of your company.

3) Hire an inexperienced person you can train to mesh with your style of leadership. Personnel with experience often come with old habits and pre-conceived notions. Training someone from scratch means you can mold them to perform the way you prefer.

4) ‘Steal’ good employees from other industries. Someone who goes above and beyond for their current company has a good enough work ethic to work hard for yours.

5) Hire someone with different strengths and weaknesses than your existing team rather than hiring someone just based on how much you like them. Adding staff should expand what your business has to offer.

And Harris’ 5 tips to retain and grow employees who think like owners:

1) Every company needs a foundation of uniformly enforced rules and guidelines on which to agree. Create a detailed employee handbook and stick to the guidelines so everyone (including you) knows the company policy. Having rules in writing helps the employees understand what is expected of them so they can succeed as a group member.

2) Invest in your employee’s education by paying for courses and offering time off to take classes. Rather than worry your team member will get so smart they’ll leave or want a raise – worry your business will remain stagnant if you don’t invest in employee education and they don’t grow their current level of expertise.

3) Help your employees put their families first. Allow time off for children and parents when it’s needed. Putting family first doesn’t detract from the job – it creates a well balanced work environment for the boss and the employees.

4) Hire responsible people, take the time to train them well and give them room to work. Micromanaging stifles creativity, creates second guessing and leads to stress for both the owner and the employee.

5) Be loyal to your staff and they will be loyal to you. Spend time investing in the right person so they stay with you. A resignation or firing is disruptive to the flow of business and bad for the morale of everyone remaining on the team.

And Harris says sometimes it’s not the employee you need to fire – it’s the client. “Know what type of client gives you the highest return and is the most hassle free. Gear your advertising and public relations toward taking on new clients like those.”

Owning a small business can be less stressful and more successful with the right team members and clients.

Why An Extensive Banking Strategy Is Important For Your Small Business

You may be a small time entrepreneur just starting or a business or an executive with years of trading experience, either way you need to recognise the importance of efficient business banking. Your choice of account is a fundamental element in your business banking strategy and something that could seriously affect the progress of your business, be it large or small. Here are few advisory tips to help the small business owner to make the right banking choices and give your business the best chance of success.

If you are starting out as a limited company you will need to open a business account. While this may seem a chore, it is surprising how having a specialist business banking strategy can aid the clarity of your finances. On the other hand if you are operating as a sole trader you small business will not have to have its own account, you will be able to combine your personal and business finances. Finding a banking solution that accommodates both the needs of your small business and your personal life can be difficult, often, even as a sole trader it can be beneficial to have a dual banking strategy.

Another element of your business banking strategy should be the inclusion of a small business team in your account package. The advice that can be offered by these professionals can be invaluable and can help your business achieve success. While this type of banking solution may cost a little extra if you are not up to date with the latest financial developments, the effects can be catastrophic.

Of major importance for your small business is the banking charges that may be applicable to your account. Some of these fees will be fixed on a monthly basis while others may be based upon a pro rata system for each individual transaction that may be carried out. If your business is likely to perform many transactions it is advisable to take a monthly fixed charge option as it will probably work out cheaper.

Finding out about which banking extras come with your banking agreement is also important. These extras may include credit cards, free statements or internet and phone banking, which can be a beneficial. Some of these extras will be free for an initial period, so be financially wise and take advantage of this period and take all your can, after all when starting in business, the more help you can get while your business is small will pay dividends in the long run.

After making a detailed comparison of the different banking solutions offered by banks it will be time to open an account. Depending upon what type of company you will be running there are various pieces of information and documentation you will need for the process. Some banks may even ask for a business plan before they allow you to open account, this is an insurance on their part to assess whether your business model and idea is viable.

If starting a limited company you will need a Certificate of Incorporation before your banking can begin. You will also need several forms of identification, for yourself, but also for any other signatories that may have access to the account. This list of signatories will also need to be produced so the bank knows exactly who will have access to the funds.

It is worth remembering that you are not tied to any bank or account for life, it is possible to change. If you do sufficient research however you should not have to change and your business should benefit from having an effective banking system behind it. By following this brief advice you should be able to find an account that fulfils your business' needs and adds to the chances of success.

About the Author

Financial expert Thomas Pretty looks into the importance of small business banking solutions to the success of your company.

Article Source: Content for Reprint