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Most recent questions

Q: What are my priorities as a small business owner?

A: There are a number of challenges a growing business must meet to ensure its growth. Three of your top priorities should be:

• Serving customers as well or better than they expect. This will ensure that they come back.
• Managing cash flow and understanding how your business makes money.
• Managing short-term priorities and focusing your team on what is most important each week.

Q: How can I find good people to work for me?

A: Finding great team members is the same as finding great clients. You attract valuable clients by learning how to market to them. First you need to find out what they want, then sell them what they need. The same is true with great people. You need to follow the AIDA principle: To get their ATTENTION, you need to write great job ads. Great ads attract great people. Once you have their attention, you need to create an INTEREST in the job, then a DESIRE to work for you and finally get them to take ACTION by contacting you. Offer plenty of room to grow - great people will want to work for great leaders who will mentor and motivate them.

Q: I've been told I should survey my customers to find out where I can improve. How do I do this?

A: Surveying your customers is vital. A lot of owners don't ask for regular feedback and many times the customer will leave because they feel you just don't care about them. Surveys are cheap and easy to do. They are extremely important to find out what's working and what's not, and help you make the necessary changes to improve your business.

An example survey could ask:

1. How long have you been doing business with XYZ?
2. Why do you do business with them?
3. What do they do best?
4. What are the top three things you think they could do better?
5. What percentage of your business do you give to XYZ?
6. What other vendors do you use for these needs?
7. What can they do to earn more of your business?
8. What areas of XYZ could use improvement?
9. If you were XYZ, what would you do differently?
10. How would you rate XYZ's capabilities?
11. Do you take advantage of all of XYZ's services? For the final four questions we will be asking you to rate XYZ in 4 areas and would appreciate any comments in addition to the requested numerical rating.
12. On a scale of 1 to 10, how would you rate XYZ's quality?
13. On a scale of 1 to 10, how would you rate their ability to deliver as promised?
14. On a scale of 1 to 10, how would you rate their customer service?
15. On a scale of 1 to 10, how would you rate XYZ's consistency?

End the survey by thanking your customer for answering your questions. If you intend to use their comments as testimonials, also ask their permission to publish their details (such as first name and company) and sign at the bottom of the form.

Q: My cash flow is tight and income is critical - how can I optimise my income processes?

A: Here are 22 different ways to help you generate income:

1. Implement test and measurement systems -for everything. These should include break-even analyses and ways to encourage prompt account payment.
2. Improve sales conversion - use phone scripts for incoming calls to maximise the sales potential of all the calls you receive.
3. Put prices up, if you can without reducing demand.
4. Add on sales - anticipate your customers' needs and cross-sell and up-sell at every opportunity.
5. Public relations - seize all local PR opportunities.
6. Direct mail existing clients; follow the mailer with a sales call.
7. Cold call - phone potential customers to generate leads. Use phone scripts.
8. Extend supplier credit - other creditors might also give extensions.
9. Encourage pre-paid sales, or down payments on upcoming jobs or larger purchases.
10. Use a debt collection agency if your debtors are delinquent.
11. Closed door sales - invite high value/regular customers to an 'after-hours' special sale (the invitation could also suggest they bring a friend).
12. Create a package offer which combines a fast-moving product line with a slow-moving line.
13. Product range add-on sale - run a limited campaign (one week only).
14. 'Reverse host beneficiary' - that means you sell other people's product for a share of the proceeds.
15. Increase stock turns, reduce stock holdings (moving slow stock out).
16. Events - host novelty events to generate publicity.
17. Sell excess assets.
18. Place small press advertisements - i.e. classifieds and spot ads to generate leads.
19. Sales team incentives - motivate staff to sell more.
20. Split level pricing - i.e. sell one item for $5; two for $7; three for $10.
21. Referrals - have a referral and a non-referral price.
22. Offer incentives for customers to bring in new sales.

Q: I'm ready to employ my first staff member. How can I find the right person for the job?

A: Consider the type of advertising: When you advertise the job, you need to first consider what type of advertising will attract the best candidates. For example, if you want a part-time shop assistant then the local paper or putting a sign up in the window will probably work best. However, if you're after an IT professional putting an ad online will probably get the right candidate's attention.

The power of word of mouth: Word of mouth works well for small businesses because staff and clients understand your business needs and generally recommend the right people for the job.

Headhunting and/or networking: You could also try headhunting, which involves going out and sourcing a person you believe has all the skills you want for your business. You may have met them through another business or network. You will need to make sure the position will be attractive enough for the person you approach to consider giving up their current job.

Before you advertise consider the following:

• Who else is hiring and what they are offering? This includes location, hours, and career development opportunities.
• What employees should I be targeting? You need to know what the average age, expected retirements and turnover rates are for your industry/job type (and what sort of job conditions will interest your average worker).
• How the job is structured: Casual positions won't attract people who want stability and job satisfaction; flexible work options can attract interest from creative or family-oriented applicants,
• How do I make my business stand out from the crowd? Talk to your best existing employees about what attracted them to the job (and what could make it better).
• Get feedback on the position: Make sure you consult current employees and colleagues on the job description and advertisement. This will improve the final product and help people feel valued and involved.

Q: What are some of the ways I can motivate my employees to perform better at work?

Sometimes, to find people with the right skills for your business you need to think about what your potential employees will be looking for in a job. Money isn't always the main motivator for employees.

• Staff incentives (including perks) - Incentives are rewards for achieving goals, whereas perks are benefits on top of the basic salary, i.e. Christmas and birthday gifts, subsidised staff canteen, tea and coffee making facilities.
• Work-life balance - Work-life balance is about adjusting working patterns to allow employees to combine work with their other responsibilities. This includes working part-time, flexitime, job sharing and working from home. Self-rostering allows employees to choose which shifts to work. Unpaid career breaks and paid sabbatical leave help retain valued staff and reward those with long service.
• Keeping your staff informed - If employees understand what the business is trying to achieve and the effect their contribution has on it, they will be more productive. Encourage them to express their views as they might have some good ideas for improvement. Poor communications can result in misunderstandings and mistrust. Not having feedback can lead to low morale and substandard employee performance. Employees whose instructions are inadequate or unclear can act in breach of regulations without meaning to.
• Positive work relationships will help retain staff, so having a staff social club or regular social events can be beneficial.