Archive for category: Blog

I once taught a continuing education class at Cal State Northridge, and I recognized how challenging it was for hardworking adults to attend classes after a full day at work.

To lighten the mood and make the experience more enjoyable, I set a personal goal to get a laugh out of everyone halfway through each session.

One evening, I was so deeply immersed in the lecture that I completely skipped over the mid-class joke I had planned. Noticing the oversight, a student raised his hand and reminded me, “You forgot to make us laugh.”

Quick on my feet, I quipped, “So it seems! I must have lost my mind!” The whole class burst into laughter, and we smoothly transitioned back to the lesson. This moment underscored the significance of keeping education and training engaging and light-hearted.

We had 40 adult students in that class, each of them small business owners eager to uncover the gaps in their knowledge. They were all committed to enhancing both their personal skills and their businesses. Continuing education stands out as a crucial tool for staying up-to-date with market trends and for refining your business to enhance both efficiency and profitability.

In the fast-paced world of small business, the quest for success is ongoing and the path is ever-evolving. For small business owners, one of the most effective tools at their disposal is continuing education and training. This commitment to learning not only fosters personal growth but is a strategic necessity in maintaining competitiveness, adapting to market changes, and enhancing overall business operations. Let’s explore why continuing education is so crucial for small business owners.

Staying Competitive

The business landscape is dynamic, with new technologies, emerging market trends, and evolving best practices constantly reshaping industries. For small business owners, staying updated through continuing education is essential to remain competitive. It ensures that they are not only keeping pace with their industry but also leveraging new tools and strategies that could give them an edge over competitors. Knowledge is power, and in business, it translates directly into staying relevant and forward-thinking.

Adapting to Changes

Markets are not static. Customer preferences shift, regulatory environments evolve, and economic conditions fluctuate. Continuing education enables business owners to quickly adapt to these changes. By staying informed and educated, they can make strategic decisions that align with current trends and regulatory demands, ensuring their business remains compliant and relevant. This agility is key to thriving in a global marketplace where change is the only constant.

Improving Skills

The scope of necessary business skills is broad, ranging from marketing and financial management to leadership and strategic planning. Continuing education provides a pathway for small business owners to enhance their existing skills and acquire new ones. This continuous skill development is critical not only for personal competence but also for the holistic growth of the business. As owners expand their capabilities, they can take on new challenges and opportunities with confidence.

Networking Opportunities

Educational programs often serve as a meeting ground for like-minded professionals. For small business owners, these settings offer invaluable networking opportunities. Connecting with peers can lead to insights on overcoming common challenges, discovering potential partnerships, or even sparking new business ideas. Networking within educational environments fosters a sense of community and mutual support which can be instrumental in business development.

Innovation and Growth

Exposure to new ideas and knowledge is a catalyst for innovation. Continuing education can introduce business owners to novel business methods, tools, or models that can significantly drive growth and improve operational efficiency. This infusion of new ideas encourages owners to think creatively and experiment with innovative approaches in their business practices, potentially leading to breakthroughs that can redefine their business trajectory.

Enhanced Problem-Solving

Effective education often involves tackling case studies, engaging in problem-solving exercises, and developing critical thinking skills. These experiences are directly transferable to the business environment, where owners frequently face complex challenges. Enhanced problem-solving capabilities enable business owners to approach problems with a more analytical and informed perspective, leading to better decision-making and strategic planning.

Employee Development

A commitment to continuing education by the business owner sets a positive precedent for employees, fostering a culture of learning and development within the company. This can lead to higher employee engagement, improved job performance, and greater innovation. Employees are more likely to feel valued and invest in their roles when they see their leader prioritizing growth and education.

Personal Fulfillment

Beyond the tangible business benefits, continuing education offers personal fulfillment. It keeps business owners intellectually engaged and passionate about their work, which is crucial for long-term success. Lifelong learning helps maintain enthusiasm and satisfaction in one’s career, making the daily challenges of running a business more enjoyable and fulfilling.

The importance of continuing education for small business owners cannot be overstated. It is a powerful tool that drives competitiveness, adaptation, skill improvement, innovation, networking, problem-solving, employee development, and personal fulfillment.

As the business world continues to evolve, those who engage actively in their own education are better equipped to lead their businesses into a successful future. For small business owners, learning is not just an activity; it’s an investment in their business and themselves.

One of the ongoing discussions I have with my coaching clients is should you work “in” your business or “on” your business.

The answer to this is always ‘on’ (unless you are a solopreneur).

Working “on” your business instead of “in” your business is a strategic approach that focuses on long-term growth and sustainability. This concept, often emphasized in entrepreneurial circles, underscores the importance of stepping back from day-to-day operations to concentrate on overall business strategy, development, and improvement. Here are a few key reasons why this perspective is crucial for business owners:

1. Vision and Strategy Development:

When you work “on” your business, you allocate time to refine your vision and strategize for future growth. This involves setting goals, planning for scalability, and identifying new opportunities. By focusing on these areas, you can direct your business towards long-term success and ensure that your daily operations align with your overarching objectives.

2. Systematization and Process Improvement:

This approach allows you to develop systems and processes that improve efficiency and effectiveness. By creating standardized procedures, you can ensure consistency in your service or product quality, which is crucial for building trust and credibility with your customers. Systematization also prepares your business for scaling up without a proportional increase in overhead or resource consumption.

3. Leadership and Delegation:

Working “on” your business encourages you to build a strong team and delegate operational tasks. This not only frees up your time to focus on strategic initiatives but also empowers your team by trusting them with more responsibilities. Effective delegation enhances team skills and motivation, and it helps cultivate a pool of talent capable of driving the business forward.

4. Innovation and Adaptability:

By not getting bogged down in everyday tasks, you can dedicate time to innovation and staying ahead of industry trends. This perspective allows you to be more adaptable in changing market conditions and to pivot your business model when necessary to meet the evolving needs of your customers.

5. Personal Growth and Development:

Working “on” your business also contributes to your personal development as a leader and entrepreneur. It allows you to enhance your strategic thinking, leadership qualities, and industry expertise, which are critical for both your personal career trajectory and your business’s success.

6. Sustainability and Work-Life Balance:

Finally, this approach helps you build a business that can operate independently of your constant involvement. This sustainability is crucial not only for the business’s longevity but also for achieving a healthier work-life balance, ultimately leading to a more fulfilling entrepreneurial journey.

Some business owners are afraid to let go of the day-to-day contact with clients. Others worry if they aren’t involved in every single detail, the world will come to an end.

Honestly, neither are true.

One way to ease yourself into working “on” your business rather than “in” it, is to adopt a Management by Exception philosophy.

Management by exception is a management strategy where leaders focus their attention on significant deviations from expected performance or standards. Instead of overseeing every aspect of operations, they concentrate on addressing and resolving issues that fall outside the acceptable range of performance.

This approach enables managers to allocate their time and resources more efficiently, dealing primarily with anomalies that require their expertise or intervention.

Before you object with thoughts like, “I’m just a small boutique company, why should I invest time in creating standards or monitoring and taking formal actions?” consider this: you can’t afford NOT to engage in these activities.

Skipping on these might seem like a time-saver, but it’s a misconception. At the core of the management by exception philosophy is a powerful simplicity: instead of overwhelming yourself by trying to analyze all of your data, focus only on the 20% that highlights actionable issues.

Identify this critical data, keep an eye on it, and when something goes off track, you’re ready to quickly address the issue, understand why it happened, and take steps to prevent it in the future.

By continuously refining this process, you will enhance your business operations to a point where errors are minimal, allowing your company to operate smoothly. This efficiency not only frees you up to chase new business opportunities but also to enjoy some well-deserved downtime.

As we wrap up this week, I want to leave you with two key thoughts:

1.  True success means being able to step away while your business runs smoothly on its own.
2. What you measure and monitor improves; neglect it, and the system breaks down.

So, don’t try to do it all. Focus on what’s essential, tackle what needs immediate attention, and you’ll find you can achieve more in less time.

Let’s talk about something that’s often overlooked but incredibly powerful: the magic of positive thinking and manifestation.

As entrepreneurs, we face countless challenges and obstacles on a daily basis. From fierce competition to financial setbacks, it can sometimes feel like the odds are stacked against us.

But what if I told you that your thoughts have the power to shape your reality and influence the success of your business?

It might sound a bit woo-woo at first, but hear me out. Positive thinking isn’t just about putting on a happy face and hoping for the best. It’s about cultivating a mindset of optimism, resilience, and possibility—even in the face of adversity. And when you combine positive thinking with the practice of manifestation, the results can be truly transformative.

So, what exactly is manifestation? At its core, manifestation is the process of turning your thoughts, desires, and intentions into reality. It’s about tapping into the power of the universe and aligning your actions with your deepest desires. Sounds pretty powerful, right?

Here’s how positive thought and manifestation can benefit you as a small business owner:

1. Clarifies Your Goals: When you take the time to visualize your goals and dreams, you gain clarity about what you truly want to achieve. Whether it’s reaching a certain revenue target, expanding into new markets, or launching a game-changing product, manifestation helps you get crystal clear about your aspirations.

2. Boosts Confidence and Resilience: Running a small business requires a healthy dose of confidence and resilience. By focusing on positive thoughts and affirmations, you can bolster your self-belief and bounce back from setbacks with greater ease. Instead of dwelling on failures or setbacks, you’ll approach challenges with a can-do attitude and a sense of inner strength.

3. Attracts Opportunities: They say that like attracts like, and the same holds true in business. When you radiate positivity and optimism, you naturally draw opportunities and resources into your orbit. Whether it’s attracting new clients, forming strategic partnerships, or stumbling upon a game-changing idea, you’ll find that doors open more easily when you approach life with a mindset of abundance.

4. Fosters Creativity and Innovation:Positive thinking stimulates the creative centers of your brain, sparking new ideas and innovative solutions to problems. When you believe that anything is possible, you’re more likely to think outside the box and push the boundaries of what’s been done before. Who knows? Your next big breakthrough could be just a positive thought away.

Just the other day, I was sitting in my office, sipping my morning protein drink and staring at the latest economic headlines. The world seemed upside down, with news of market fluctuations and whispers of a slowing economy everywhere. It felt like every corner of the business world was filled with uncertainty. I couldn’t help but feel a twinge of concern about how these changes might impact my small business.

But then, I remembered an important lesson from my early days as an entrepreneur: it’s not about trying to please everyone; it’s about focusing on the right clients.

So, I took a deep breath and decided to refocus my energy. Instead of worrying about the broader economic trends, I turned my attention to understanding the needs and pain points of my ideal customers.

First, we eliminated a section of our business that was filled with what was definitely not our ideal clients. It took two months to do it, but we got it done.

Then, we started reaching out more personally to those clients who had been loyal supporters, asking for their feedback and suggestions. We listened closely, making sure they felt heard and valued. This personal touch not only strengthened our relationships but also gave me invaluable insights into how we could better serve them.

And along with this personal contact, I set about each morning saying a prayer of gratitude for the success our business has enjoyed and specifically visualizing the exact type of client that we need in our business.

To my surprise, this approach started to pay off almost immediately. Despite the gloomy economic outlook, our most valuable clients began referring new business our way. And eliminating that section of our business that was not ideal, created space for new clients to come in.

It was a reminder that even in uncertain times, focusing on the right clients can lead to growth and stability. The world may sometimes seem upside down, but by staying true to our mission and nurturing those key relationships, we can navigate through any storm.

One of the biggest challenges for small business owners is often financial management.

Small businesses typically operate with limited resources, making it crucial for owners to effectively manage their finances to ensure sustainability and growth.

So many people are starting their own businesses – more than ever before and the thought of managing the financial aspect of these companies can be quite intimidating to the lone entrepreneur.

Let us help. 

Here are the Top 10 financial management challenges for small business owners and our proven management techniques for mitigating these issues:

      1. Challenge: Cash Flow Management: Maintaining a healthy cash flow is essential for covering day-to-day expenses, paying suppliers, and investing in growth opportunities. However, fluctuations in revenue and unexpected expenses can disrupt cash flow, making it challenging to meet financial obligations on time.

Techniques to Overcome:

• Bill clients in advance – set a block of time and bill for it. Once consumed, bill more.
• Review accounts needed to be replenished every week, and bill them every week
• Don’t carry debt. Pay your company credit cards every time a balance is over $500 and pay it all.
• Create multiple streams of income so money is always coming in
• Always pay yourself first. I know, I know, there are a million other places you can put income before paying yourself, but it is critical to your business that you do

2. Access to Capital: Small businesses often struggle to secure funding for expansion, equipment purchases, or other capital-intensive projects. Limited access to traditional financing options like bank loans can hinder growth and innovation.

Techniques to Overcome:

• Having little to no accounts payable (aka debt) helps you know exactly how much you can afford to spend
• Keep impeccable data – if you do have to get a loan or other financing, you’ll need to prove the records for your company. Impeccable records inspires confidence by the lender.

3. Budgeting and Forecasting: Developing accurate budgets and financial forecasts is critical for planning and decision-making. However, many small business owners lack the financial expertise or tools to create realistic projections, leading to overspending or missed opportunities.

Techniques to Overcome:

• Understand no budget or forecast is 100% accurate, ever – this will take the pressure off
• Hire someone to teach you how to budget or forecast or take an online class or outsource this task
• Understand your priorities. Keeping your goals and priorities aligned prevents you from overspending or misspending

 4. Debt Management: Small businesses may accumulate debt through loans, credit lines, or other financing arrangements. Managing debt levels and making timely payments while minimizing interest costs can be challenging, especially during periods of economic uncertainty.

• See item 1
• Paying your credit card in full several times per month dramatically improves your credit rating and ensures available cash goes to pay off debt.
• Fast pay your vendors (at least within two weeks) ensures you are not carrying unnecessary debt, improves your vendor relationship and helps guarantee you get priority attention when there is an emergency

5. Tax Compliance: Navigating complex tax regulations and staying compliant with local, state, and federal tax laws can be overwhelming for small business owners. Failing to file taxes accurately and on time can result in penalties and legal consequences.

Techniques to Overcome:

• Accurate and timely tracking of expenses is necessary to allow your business to take full advantage of deductions and to reduce your tax liability
• Hire a bookkeeper who can maintain your data
•   Engage a responsible and experienced accountant – have them do quarterly reviews of your accounting system, yearly reviews and do your taxes
• Don’t be afraid to stretch your capabilities

  6. Cost Control: Controlling expenses is essential for maintaining profitability and competitiveness. However, identifying cost-saving opportunities without sacrificing quality or customer satisfaction requires careful analysis and strategic decision-making.

Techniques to Overcome:

• Learn the difference between Cost of Goods Sold and Overhead – the more you can reduce overhead the more profitable your business is
• Invest in good technology which nearly always saves time and money, but make sure it is one that does not require a lot of recurring transactions

7. Risk Management: Small businesses face various risks, including economic downturns, market competition, and cybersecurity threats. Developing risk management strategies to mitigate these risks and protect the business’s assets and reputation is a constant challenge.

Techniques to Overcome:

• Diversify your services – the more different services you offer, the less vulnerable you are to changes beyond your control
• Never stop improving – even when business is slow, there are actions to take that will position you for the massive gain coming your way when the economy or business starts up again

8. Human Resources Management: Hiring, training, and retaining skilled employees is crucial for small business success. However, competing for talent with larger companies and providing competitive wages and benefits can strain limited resources.

Techniques to Overcome:

• Determine the look of your company in the future
• Evaluate your price point to make sure you are charging enough to allow you to pay a competitive wage while still making a profit
• Adopt the ‘make your employees rich and they’ll make your business rich’ rule

9. Technology Adoption: Keeping up with advancements in technology and incorporating digital tools into business operations can enhance efficiency, productivity, and customer experience. However, investing in technology and ensuring staff are trained to use it effectively can be daunting for small businesses with tight budgets.

Techniques to Overcome:

• Limit the number of apps or systems used to manage your business
• Outsource system training
• Invest in existing policies and procedures so you don’t ‘reinvent the wheel’

10. Adapting to Change: Small businesses must remain agile and adaptable to navigate changing market conditions, consumer preferences, and industry trends. However, resistance to change or lack of resources for innovation can hinder growth and lead to stagnation.

Techniques to Overcome:

• Adopt the ‘sell with an empty bench’ process
• Under promise and over deliver
• Allow your customers to take you in new directions
• Don’t be afraid to stretch your capabilities

Addressing these challenges requires a combination of financial acumen, strategic planning, and resourcefulness. Seeking guidance from financial advisors, mentors, and industry experts can help small business owners overcome obstacles and achieve long-term success.

Does all this seem like an overwhelming number of things to do and know? Maybe. But all of these challenges are faced by all entrepreneurs and you may not realize it, but you are likely already managing many of these without even realizing it.

The most important piece of advice we can offer is this:

Don’t give up, never surrender!!

If you keep moving forward every single day of every single week of every single year, you’ll quickly realize you ‘made it’! To build a company out of nothing takes persistence, tenacity, a willingness to face your fears and to be willing to ‘just do it’. If a decision turns out to be the wrong one, chalk it up to experience, change directions and keep going. I believe in you!