Tips for Tough Times

Today’s business climate is volatile at best. 

 

What are we to do to keep our heads above water. 

 

 

Try these tips. 

They may seem simple and based on common sense but in a climate like this, we sometimes panic and forget the most obvious:

1. Monitor cash flow and receivables – DAILY!  I know, it’s not fun but it needs to be done.  Especially if you need the funds to complete a project you know is going to propel your business.
2. Watch expenses – Make sure you are spending money only where it is necessary.  Put a value on your expenses.  If you spend $x.00, to complete something, or take a client out to lunch, what is your potential ROI?
3. Review your business plan!  If you don’t have one, make a New Year’s Resolution for 2009 stating that you will complete one.  A business plan is essential for keeping you and your employees on track with all eyes on the overall goal, making adjustments as necessary.
4. Be MORE Marketable!  Continue your professional education.  There is ALWAYS something new to learn no matter what industry you are in.  If you are up to date on the latest and greatest techniques, that puts you leaps and bounds ahead of your competition.
5. Outsource projects and work at a cheaper rate.  The benefits to outsourcing is to paying by the hour or by the job at a pre-negotiated rate.  Don’t forget, these types of employees are independent contractors operating on a 1099.
6. Start a blog.  There’s no better way to market yourself than with a blog.  What was that?  You don’t have enough time to blog?  This is one of those projects that is easily outsourced!  I blog for many people and industries.  When hiring a blogger, make sure you are hiring someone who is ready to learn and research about your company and industry.  Blogging doesn’t have to happen every day but three times a week is ideal.
7. Keep marketing.  Many businesses that are experiencing slow times want to cut the marketing budget first.  How will people find you if they don’t know about you.  Look for cost effective alternatives to your marketing plan.  There are many out there that you probably haven’t thought of. 

 Stay tuned for more information and tips on business survival during these tough economic times.

Virtually yours, Lora

What are you doing when you’re NOT working?

A survey developed by Staples, Inc. and conducted by Decision Analyst, In, found the out the following when surveying 302 owners and executives of US based businesses.  These businesses had fewer than 20 employees;

98% – Working during time off, nights, weekends and vacations

51% – Sleep with their work – that’s right during REM time they are dreaming of work

48% – They would work even more hours if they could double their companies’ sales

38% – Can’t remember when they had their last vacation

21% – Say they want more time off

How can more time off, vacations and total relaxation take place.  In today’s business climate, the competition is tough!  When major retailers such as Linens and Things, Circuit City and Applebees just to name a few are laying off, closing and filing chapter 11 you wonder how the small guy can stay afloat.

Many times the small business owner is wrapped up in doing it all themselves.  They wear all the hats from president and owner right down the ranks to file clerk.  No wonder the business hasn’t grown.  Small business owners tend to avoid hiring anyone because there is a lot of overhead to that; workers comp insurance, benefits, payroll, training hours, etc.  So what’ a small business to do?  Go Virtual & Outsource.

Outsourcing is your best bet.  All of the following can be done through outsourcing and how do I know?  I know because I have been hired to do all of these things!  Take a look:

• Website updates
• Writing online or hard copy newsletters
• Making phone calls
• Designing business cards, logos and letterhead
• Product development
• Selling books
• Ghost writing blogs
• Creating manuals and workbooks
• Designing brochures
• Planning events
• Sending thank you cards

And I could go on for more pages.  I haven’t even scratched the surface.  The point is, outsourcing and going virtual is a win – win situation. 

For the small business owner, they dictate when, why, where and how much work they need to be done.  Not only that, the person who they outsource is an independent contractor.  That means, they are responsible for filing their own taxes.  And there’s no worker’s comp or benefits to worry about.

For the person being hired as a freelancer, they can negotiate rates and timing to flex with their schedule. 

However, BOTH sides need to do their homework.  In order for the relationship to be successful, the following must be discussed, negotiated and investigated prior to the start of a business relationship:

• If you are outsourcing work – outline your project first allowing for a clear understanding of what is expected at the end of the project
• Request references – both the freelancer and the small business owner should be prepared to give a list of references
• Ask for examples of work – again both sides should be completely comfortable with what the others work integrity and product is
• Determine and negotiate whether the project will be paid on an hourly basis or by the project
• How often will payment take place, weekly, monthly, 50% at the start of the project and the remaining 50% at the end
• Multiple conversations – interview each other and learn what each others goals, visions and aspirations are.  Most misunderstandings occur due to a lack of communication and expression of ideas

I have created a niche for myself in the world of outsourcing.  I love it!  I love my clients.  They have the same entrepreneurial spirit as I do.  We communicate A LOT – mostly via the internet on email.  We know where we stand on projects, we touch base frequently on progress and revisions and it’s a wonderful working relationship.

Stay tuned for more information on this topic!

If you would like to get started outsourcing certain projects or you would like to get started as a freelancer or virtual assistant, contact me!  I would love to help.

Virtually yours,

Lora