Download Volume 11, Issue 16 Document Here

BizBoost News
Volume 11, Issue 16
For distribution 1/24/22; publication 1/27/22

How Variance Reporting Can Keep Your Profits on Track

While there are literally hundreds of accounting reports that can help you run your business better, one of the most popular – and greatly underutilized – reports is the variance report. A variance report helps you compare how you are actually doing with either a past or expected performance. It makes it crystal clear how far you’re straying from where you want to be so that you can make course corrections earlier rather than later.

Variance to Prior Periods

A common variance report that almost anyone can generate is one that compares current period results to prior period results. For example, you can generate an income statement with six columns:

A.    Current month activity, such as March 1 to March 31, 2022
B.    Prior year month activity, such as March 1 to March 31, 2021
C.    Month difference or variance (A – B)
D.    Year-to-date activity, such as January 1 to March 31, 2022
E.     Prior-year-to-date activity, such as January 1 to March 31, 2021
F.     Year-to-date difference or variance (D – E)

The variance allows you to see, at a glance, whether your sales or expenses have increased compared to last year. Seeing monthly variances is especially important if the business experiences seasonal fluctuations. 

You can go one step further to explain the variances in an accounting process called account analysis. Take a look at the components of each number to see what caused the variance. Write your explanation in a notes section of your variance report. 

You may not want to spend management time on the small variances. A good financial dashboard, or simply an Excel spreadsheet, can help you color-code the balances that are more than 10 percent (or any percent you feel is material) off track.

Variance to Plan or Budget

You can also develop a variance report that compares current period results to budget. Here, you would generate an income statement with these six columns:

A.    Current month actual activity, such as March 1 to March 31, 2022
B.    Budget for the same period above
C.    Month difference or variance or (over)/under (B – A)
D.    Year-to-date actual activity, such as January 1 to March 31, 2022
E.     Year-to-date budget, such as January 1 to March 31, 2021
F.     Year-to-date difference or variance or (over)/under (E – D)

Do the same thing above, color-coding and explaining the variances using account analysis. How did your budget details differ from what actually happened?  If it’s better, can you do more?  If it’s worse, how can you get back on track? Performing a timely variance analysis helps you find opportunities to exploit so you can make more money or investigate ways to get back on track faster so you don’t lose as much. 

Of course, with budget versus actual variance reports, you do have to create the budget first!

If you’re not already receiving variance reports, would like help creating a budget, or would simply like to set up a session to better understand variances, please feel free to reach out any time. 

***

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Our latest blog: “How Variance Reporting Can Keep Your Profits on Track”is available now! Subscribe here: [link]

While there are hundreds of accounting reports that can help you run your business better, one of the most popular – and greatly underutilized – reports is the variance report. Click here to find out how the variance report can keep your profits on track in our latest blog article: [link]  

Our latest blog article reviews how variance reporting can keep your profits on track. Get instant access here: [link]

DID YOU KNOW… A variance report helps you compare how you are actually doing with either a past or expected performance. It makes it crystal clear how far you’re straying from where you want to be so that you can make course corrections earlier rather than later. Learn more here: [link]

A common variance report that almost anyone can generate is one that compares current period results to prior period results. The variance allows you to see, at a glance, whether your sales or expenses have increased compared to last year. Seeing monthly variances is especially important if the business experiences seasonal fluctuations. Learn more here:  [link]

DID YOU KNOW… By performing a variance report against your budget, you can find opportunities to exploit so you can make more money, or investigate ways to get back on track faster so you don’t lose as much. Find out more here: [link]

What do you use to keep your business on track? Try utilizing the variance report! It makes it crystal clear how far you’re straying from where you want to be, so that you can make course corrections earlier rather than later. Learn more in our latest blog article: [link]

Are you using variance reports in your business? If you’re not already receiving variance reports, would like help creating a budget, or would simply like to better understand variances, sign up for our newsletter to learn more: [link]

Download Volume 11, Issue 15 Document Here

BizBoost News
Volume 11, Issue 15
For distribution 1/10/22; publication 1/13/22

Five Ideas to Attract Staff During the Great Resignation

You’re not alone if you’re having trouble attracting and keeping staff. A convergence of issues has created one of the greatest talent shortages in our lifetimes. With boomers retiring in large numbers, pandemic and opioid deaths, people not wanting to work for low wages, child care availability disappearing, tighter immigration policies, people rethinking their life choices, and so many other factors, it’s no wonder small businesses are having trouble finding workers.

The good news is small business owners still have a lot in their control to be able to attract the perfect candidate to our workplaces. Here are some ideas to help you do just that. 

1.     Be open to multiple options when it comes to what an employee looks like

If you require a 40-hours-a-week, onsite worker who has to dress in formal clothes to come to work, you need to rethink everything. Many talented people are choosing to work part time, and it might just be easier to find two part-time workers instead of one full-time employee. 

How much of the job can they do virtually?  This opens up your hiring pool nationally and perhaps even internationally. Consider also temporary versus permanent. And consider outsourcing certain functions as well. 

The key is to be open to creative ways to get the job done. 

2.     Make fun a vital part of your workplace

Even if there are numerous deadlines and serious work to be done, your workplace can still be fun. A good start is bringing food to work; camaraderie always blossoms around food.

Add in extra activities like movie or games night, take weekly team lunches, start an amateur sports team, or encourage co-worker get-togethers after work. Decorate the office for each holiday, and celebrate birthdays, anniversaries, and employee successes. Create fun projects such as a volunteer day for a local charity, or support a team entry at a local fun run.  

In short, create a culture where employees can not only have fun, but be themselves. 

3.     Add perks, and not just the usual suspects

Employees are demanding more of their employers, and the best businesses are listening and delivering. Beyond increased pay and the usual benefits – 401K, health insurance, vacation, and PTO – here are some new additions:

Other perks to think about are holiday gifts, bonuses, free dry cleaning, free car washes, and employee discounts. 

4.     Embrace technology

Employees want the best tools you can give them so they can do a good job.  Be sure your employees are fitted with the latest hardware and software so there is less stress around the inevitable tech glitches that occur. There’s nothing worse than having a deadline and coming across a software glitch that wastes precious time. 

5.     Apply marketing techniques to hiring

Instead of posting the old boring job ad, create a campaign to find employees. Make sure your social media is up to date and mirrors the fun culture of your organization. Be sure to look in places you may not have traditionally looked for candidates. Create a job interview process that’s interesting and enthusiastic. You’re definitely competing for talent, so doing all of these things will help you win. 

We may be in a period of staff shortages, but there are still millions of people who want to work. Do just a little more for your employees and candidates than the small business down the street, and they will want to keep working for you.   

***

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Our latest blog: “Five Ideas to Attract Staff During the Great Resignation” is available now! Subscribe here: [link]

Even during the Great Resignation, small business owners still have a lot in their control to be able to attract the perfect candidate to their workplaces. Here are some ideas to help you do just that: [link]  

Our latest blog article provides five ways that you can attract staff during the Great Resignation. Get instant access here: [link]

A convergence of issues has created one of the greatest talent shortages in our lifetimes. With boomers retiring in large numbers, pandemic and opioid deaths, people not wanting to work for low wages, child care availability disappearing, tighter immigration policies, people rethinking their life choices, and so many other factors, it’s no wonder small businesses are having trouble finding workers. Learn 5 ways to attract staff in our latest blog article: [link]

If you’re struggling to hire workers, consider making fun a vital part of your workplace. Even if there are numerous deadlines and serious work to be done, your workplace can still be fun. A good start is bringing food to work; camaraderie always blossoms around food. Learn more here:  [link]

Hiring Tip: Add perks, and not just the usual suspects.

Beyond increased pay and the usual benefits, try adding:

 Learn more here: [link]

We may be in a period of staff shortages, but there are still millions of people who want to work. Do just a little more for your employees and candidates than the small business down the street, and they will want to keep working for you. Learn more in our latest blog article: [link]

Are you having trouble attracting and keeping staff? Sign up for our newsletter to learn five ways to attract staff: [link]

BizBoost News
Volume 11, Issue 14
For distribution 12/27/21; publication 12/30/21

What’s in Store for 2022?

The last few years have been unlike any other in our lifetimes. As we close out 2021 and enter 2022, it’s the perfect time to reflect on what we’ve learned, what’s happening now, and what we want to accomplish in the next 12 months. Here are some things to consider. 

Celebrate Your Successes

Give yourself time and permission to review what you have completed in 2021. You’ve likely learned and accomplished more than you think. Compare your status on January 1, 2021 with today, and celebrate the changes you’ve made and projects you’ve finished. 

Monetize These Trends

Several trends will continue from 2021 into 2022 and beyond. How can you monetize them in your business? 

• The move to remote work is likely to continue, especially in certain industries, such as financial services and technology, where the work is delivered digitally. Hiring virtual workers gives employers access to a larger talent pool as well.
• Expanding your online presence, including ecommerce, is paramount. Most businesses spent more time improving the online interface between company and customers as more customers clamored for increased online purchasing, delivery, and curbside pickup. Some brick-and-mortar businesses adapted their business model to develop new digital services, enhancing their current product line.
• Climate changes affected many businesses this year in at least two different ways. Some were victims of disasters via extreme weather. Others became more visibly supportive of climate initiatives, working these initiatives into their mission and offerings. 
• Accelerated automation using artificial intelligence is continuing to move through the technology adoption curve. Can your business benefit from AI-driven tech solutions?  
• Diversity initiatives will continue to be important in 2022 and beyond.
• Workforce demographics are finally changing. More young people are working in 2021 compared to pre-pandemic numbers, while workers over 50 are retiring at a faster-than-normal rate. Millennials are starting businesses in large numbers, and one statistic shows that 80 percent of those businesses are profitable. 
• Staffing struggles are real in many industries. Many business owners who can no longer find employees have had to resort to outsourcing, contract, part-time, virtual, and many other capacity options to keep their businesses afloat.    
• Social responsibility has been prioritized by Millennials and members of Gen Z, making business owners ask how they can do their part in their businesses.
• Life-goal realignment is something that has swept the world as people experience a wake-up call because of the pandemic. The search for purpose and meaning is one of many side effects of this trend. Ask yourself how this trend is affecting your customers and employees. 

Set 2022 Goals

Let’s not call them New Year’s resolutions, shall we? Still, it’s the right time of year to decide how you can incorporate the trends above with the personal and business successes you’d like to complete by the end of 2022. 

Make your list, then schedule milestones on your calendar so you can track your progress.

And above all, have a happy New Year in 2022.    

***

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It’s almost 2022, are you ready for the new year? Learn how to monetize the newest trends from this past year for a successful 2022 in our latest blog article: [link]  

Have you set your 2022 goals?

Let’s not call them New Year’s resolutions, shall we? Still, it’s the right time of year to decide how you can incorporate some 2021 trends with the personal and business successes you’d like to complete by the end of 2022. Learn more in our latest blog article: [link]

The last few years have been unlike any other in our lifetimes. As we close out 2021 and enter 2022, it’s the perfect time to reflect on what we’ve learned, what’s happening now, and what we want to accomplish in the next 12 months. Here are some things to consider: [link]

One trend from 2021 that is here to stay is the expansion of businesses into the online/ecommerce world. Have you optimized your business for success leading into 2022? Learn more in our latest blog article:  [link]

Are you actively celebrating your successes? Now is the perfect time to review what you have completed in 2021 - you’ve likely learned and accomplished more than you think. Find out what we suggest for your 2021 review here: [link]

Several trends will continue from 2021 into 2022 and beyond. Do you know how you can monetize them in your business?  Learn more in our latest blog article: [link]

The move to remote work is likely to continue, especially in certain industries, such as financial services and technology, where the work is delivered digitally. Do you know how to utilize this trend in your own business? Sign up for our newsletter to learn more: [link]

BizBoost News
Volume 11, Issue 13
For distribution 12/13/21; publication 12/16/21

Understanding Sales Conversion Metrics

How effective is your sales function in your business? One way to answer that question at a deep level is to calculate conversion metrics for every step of your sales cycle. These numbers are not tied to any numbers on your balance sheet or income statement, but can help you realize a better return on your sales and marketing expenses. 

Your Sales Cycle

The sales process is different for every business. If the dollar amount of the customer purchase is small, the sales cycle needs to be very short or it won’t be efficient. For larger purchases, the sales cycle might be longer. 

The first step in determining conversion metrics is to outline the steps a typical prospect takes before they become a customer. Here are a few examples: 

Retail example.

1.     Prospect walks into store.
2.     Sales clerk interacts.
3.     Prospect selects item(s).
4.     If clothing, they may visit a dressing room and try it on.
5.     Prospect stands in checkout line.
6.     Customer completes purchase.

Ecommerce example.

1.     Prospect visits website and uses search or navigation.
2.     Prospect views lists of products.
3.     Prospect views product page.
4.     Prospect places product in cart.
5.     Customer completes checkout.

Service example.

1.     Prospect sends email requesting more info or an appointment.
2.     Customer service/sales clerk responds to email.
3.     Prospect makes appointment.
4.     Salesperson and prospect meet.
5.     Sales person perform follow-up activities.
6.     Prospect agrees to price/purchase.
7.     Client signs contract and pays initial deposit. 

For each step in the processes above, the prospect can fail to proceed to the next step. Conversion is measured at each step with the percentage of prospects that proceed to the next step. 

Not all steps are worth measuring. Sales and marketing personnel must agree on when a prospect becomes a viable lead. Measurements should occur from lead to customer.

Let’s expand on the service example. 

1.     Prospect sends email requesting more info or an appointment.
2.     Customer service/sales clerk responds to email.
3.     Prospect makes appointment.

The first meaningful conversion can be calculated between steps one and three. Let’s say in the month of November, the company received 100 emails from prospects requesting more info and 50 made appointments. The conversion rate is calculated as follows:

# Appointments made (step 3)  / # prospect emails received (step 1) = 50/100 = 50% 

To improve the 50 percent conversion rate, ask yourself what can be done between steps one and three to improve the prospect-facing activities.

Here’s another example:

4.     Salesperson and prospect meet.
5.     Salesperson performs follow-up activities.
6.     Prospect agrees to price/purchase.
7.     Client signs contract and pays initial deposit. 

The second meaningful conversion rate in the service sales process can be calculated between steps four and seven. (You could also measure 3-4, 4-6 and 6-7.) Let’s say 40 appointments were kept and 30 became clients.

# New clients signed (step 7) / # salesperson and prospect meet (step 4) = 30/40 = 75%

To improve the 75 percent, ask yourself what you can do in steps four through seven to improve the prospect’s experience. 

Actionable Sales Intelligence

As you measure these results over time, are you improving or declining for each conversion? Is one salesperson closing more business than any of the others? How can you improve each step so that conversion is increased? You will have more questions than answers when you first start calculating these numbers. You will also likely have many “aha” moments of insight you can use to improve the prospect’s journey.   

If conversion is extremely low in the first few steps, it could be that marketing is not sending you qualified leads. In that case, marketing needs to improve before conversion can improve. If conversion is low in the final few steps, follow-up activities may need to be strengthened.

In any case, measuring conversion throughout your sales cycle will pinpoint the weakest areas so you can improve. When you can increase your conversions, your marketing and sales costs will decrease, and you will become more effective.

And if we can help you with any of these measurements, please reach out any time. 

***

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Our latest blog: “Understanding Sales Conversion Metrics” is available now! Subscribe here: [link]

Do you have a solid understanding of your sales conversion metrics? These are key numbers that can provide great insight into how your company is functioning. Learn how to calculate your conversion metrics and the importance of these metrics in our latest blog article: [link]  

Calculating sales conversion metrics can seem complicated at first, but there are simple equations you can follow to gain great insight into your business. Find out what these equations are and how to utilize them in our latest blog article: [link]

How effective is your sales function in your business? One way to answer that question at a deep level is to calculate conversion metrics for every step of your sales cycle. These numbers are not tied to any numbers on your balance sheet or income statement, but can help you realize a better return on your sales and marketing expenses.  Learn more here: [link]

Once you understand your sales conversion metrics, you’ll have answers to many questions, including:

-Are you improving or declining for each conversion?

-Is one salesperson closing more business than any of the others?

-How can you improve each step so that conversion is increased?

You will also likely have many “aha” moments of insight you can use to improve the prospect’s journey. Learn more about how to calculate your sales conversion metrics here:  [link]

Our latest blog article, “Understanding Sales Conversion Metrics”, will help you understand the importance of sales conversion metrics for your business and how you can easily calculate them. Access the article here: [link]

The sales process is different for every business. If the dollar amount of the customer purchase is small, the sales cycle needs to be very short or it won’t be efficient. For larger purchases, the sales cycle might be longer. The first step in determining conversion metrics is to outline the steps a typical prospect takes before they become a customer. Learn more in our latest blog article: [link]

Do you need help calculating conversion metrics in your business? Our latest blog article explains how to calculate these metrics and how these numbers will help you in your success. Sign up for our newsletter to learn more: [link]

BizBoost News
Volume 11, Issue 12
For distribution 11/29/21; publication 12/02/21

Time Tracking

Keeping track of how you and your workers spend time is one of the most important things you can do in your business. Labor costs can be a large portion of expenses, and understanding how time is spent can help you manage your business better in a multitude of ways. 

Benefits of Time Tracking

There are many reasons and benefits to track time:

What Is Time Tracking?

Time tracking is the recording of how you spend your time. You can use paper, a spreadsheet, or time tracking software to log the task you are working on and the length of time you worked on it. For example, here’s a simplistic example of a time log, or timesheet, for one day:

Employee	Activity	Hours	Billable	Complete?
JS	Client A Bookkeeping	4.5	Y	Y
JS	Training Webinar	1.5	N	Y
JS	Finding Client A’s file	.5	N	Y
JS	Client A Tax Return	1.5	Y	N
	Total	8.0

Employees may be required to complete timesheets on a daily or weekly basis, which are then turned into their managers and payroll administrators. 

Managers can take time tracking to the next level by adding hourly payroll costs as well as the employee’s hourly billing rate to gain insight into further time-tracking financial metrics.  

Time Tracking Software

There are many different types of time-tracking software:

Getting Employees on Board with Time Tracking

Reporting your hours in a time-tracking system is one of the least favorite tasks of employees and requires an education in mindset and attitude more than any software instructions. It’s important that your employees do not feel like you will be “Big Brother” when it comes to using their time data. 

For best results, let employees know how the timesheet data will be used. Allay their fears that they will not get fired or in trouble if they feel something “took too long,” which can often translate into an employee “fudging” their hours on a task where they might have made a mistake. Make sure they know they won’t be penalized in any way for what they report.

Communication is key in getting employees to report their time accurately so that managers and owners can receive meaningful information. Have managers tie time tracking to an employee’s personal career goals to increase adoption and reduce resistance.        

Personal Time Tracking

Time is our most precious commodity, and tracking your personal time can give you insights into how you are investing in yourself. Some really interesting questions can be considered when you have some time data for yourself.

Getting Started with Time Tracking

If you’re considering time tracking or would like to take your current time-tracking function to the next level, please reach out. We may be able to help with integration, implementation, the accounting aspect of time-tracking, and financial metrics and reports.

***

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Our latest blog: “Time Tracking” is available now! Subscribe here: [link]

Keeping track of how you and your workers spend time is one of the most important things you can do in your business. Labor costs can be a large portion of expenses, and understanding how time is spent can help you manage your business better in a multitude of ways. Learn more in our latest blog article: [link]  

Time tracking is very important when it comes to managing your employees at the best level possible. By utilizing time-tracking software, you can make positive and profitable changes within your business. Get instant access to our latest blog article, “Time Tracking”, here: [link]

Do you utilize time tracking in your business? In our latest blog article, we discuss the benefits of time tracking and how you can start implementing it in your business. Learn more here: [link]

Time is our most precious commodity, and tracking your personal time can give you insights into how you are investing in yourself. Some really interesting questions can be considered when you have some time data for yourself.

Learn more about time tracking in our latest blog article:  [link]

DID YOU KNOW… There are many different types of time-tracking software:

Find out more here: [link]

If you’re considering time tracking or would like to take your current time-tracking function to the next level, we can help! We may be able to help with integration, implementation, the accounting aspect of time tracking, and financial metrics and reports. Learn more in our latest blog article: [link]

Time tracking is the recording of how you spend your time. Managers can take time tracking to the next level by adding hourly payroll costs as well as the employee’s hourly billing rate to gain insight into further time-tracking financial metrics. Sign up for our newsletter to learn more about how time tracking can benefit your business: [link]

BizBoost News
Volume 11, Issue 11
For distribution 11/15/21; publication 11/18/21

The Power of Thank-You Notes

As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others.

When to Say Thank You

There are many opportunities in business to say thank you:

Keeping thank-you notes top of mind will help you think of more opportunities to use them. 

What to Say in Your Thank-You Note

You don’t have to be a professional writer to make a thank you note sound good. Just write from the heart. Let the recipient know what you are thanking them for. Express a detail about the item or activity involved. And then thank them again. 

If you are unsure about what to say, write a draft first that you can edit. Then transfer the version that you are happy with to your stationery. It’s far better to hand-write your thank-you note than to use a computer-generated one.

Personalized stationery for thank-you notes is definitely recommended. They add a formal and professional touch to your thank-you note, enriching the experience for the recipient. 

Sending gift baskets can be a good idea, but sending a hand-written thank-you note alone can be the most powerful action you can take, especially if it is not expected. 

While many businesses send holiday cards each year, thank-you notes can be far more powerful. If your budget is limited, you might want to replace your holiday mailing with thank-you notes instead. 

One more thing to consider NOT doing is making your thank-you note into an advertising event for your company. If you want to send promotional items such as t-shirts, mugs, or other items, do NOT do it with your thank-you card. Sending thank-you notes is not a marketing event; it’s a time for gratitude. Sending clients promotional items can be very welcome; just don’t do it at the same time. 

Helping others feel gratitude is the fastest way to experience happiness. Sending thank-you notes is not only good business, it’s good for our health and wellness, too.

***

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As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others. Learn more about when it is appropriate to send a thank-you note and how to write one in our latest blog article: [link]  

Do you write thank-you cards? In business, we can sometimes overlook the power of a handwritten note. Learn more about the best times to write a thank-you card in our latest blog article: [link]

Helping others feel gratitude is the fastest way to experience happiness. Sending thank-you notes is not only good business, it’s good for our health and wellness, too. Learn more here: [link]

While many businesses send holiday cards each year, thank-you notes can be far more powerful. If your budget is limited, you might want to replace your holiday mailing with thank-you notes instead. Learn more here:  [link]

Not sure what to include when writing a thank-you note? You don’t have to be a professional writer to make a thank you note sound good. Just write from the heart, let the recipient know what you are thanking them for, and express a detail about the item or activity involved. Learn more here: [link]

Do you know when it is appropriate to send a thank-you card? There are many opportunities in business to say thank you:

Learn more in our latest blog article: [link]

Our latest blog article discusses the power of writing a thank-you card and when it is appropriate in business. Sign up for our newsletter to learn more: [link]

BizBoost News
Volume 11, Issue 10
For distribution 11/01/21; publication 11/04/21

Controlling Labor Costs

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Here are several ways to control or reduce labor costs in your business. 

1.     Encourage employee retention.

If well-trained employees leave, you must replace them with inexperienced employees that need training, resulting in a temporary loss of productivity. Some turnover can be good, but if it’s too high, it can result in increased labor costs.

2.     Automate tasks. 

Save labor by automating any tasks that can be automated that employees are still performing. While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on investment. 

3.     Streamline processes.

Are you operating your business most efficiently? Or are employees still doing tasks that are outdated or that have lost meaning over time? 

One place to look is the interface between departments. Is your sales team duplicating marketing’s efforts?  Is customer service answering the same question without communicating to operations how it should be permanently fixed?  Enhancing communications among employees throughout the company can cut down on labor costs. 

4.     Train employees.

Make sure employees are doing what they should be doing by training them. If they are using systems and other tools, make sure they have completed courses in those systems and tools.   

5.     Provide the right tools for the job.

Do employees have the tools they need to do the job well? Be sure you’re providing them with the latest version of Microsoft Excel® versus an abacus, as an extreme example. 

6.     Cross-train employees.

If an employee is out sick, does a customer’s job sit around until they are back? Check to see if your employees can easily pick up another’s work in the case one employee is out. 

7.     Optimize employee schedules.

In many industries such as restaurant and retail, employee scheduling can make the difference between profit and loss. Software can help you determine how many employees you need and at what time. Ensuring employees know when to come in and what to focus on when they do will go a long way toward productivity as well. 

In some cases, a shorter workweek is a possibility that can drive lower labor costs. 

8.     Outsource. 

Outsourcing may be cheaper than using employees on certain tasks, especially if you have tasks that require specialized knowledge or skills, or you might not need a full-time person. Outsourcing can also help you determine how long a task will take so you can plan better if you do decide to take the activity in house.  

9.     Review compensation. 

Compare your company’s current salaries to the going market rate for salaries in your industry.  Are your salaries in line? Adjust accordingly for future hires.

You can also consider different pay structures, such as commission-based, to better match performance to labor costs. Bonuses paid out in lieu of annual raises allows you to better manage accumulated pay raises in the case of long-term employees. 

10.  Review benefits. 

Employees love perks but they can be costly. If necessary, this is an area where expenses can be cut to reduce costs. This can include reviewing time off policies, employer’s percentage share of 401(k) plan contributions, and additional health care coverages such as dental and vision. 

Hiring part-time employees that are ineligible for benefits can also be a way to cut labor costs.

11.  Cut overtime pay.  

If overtime pay is so high that added headcount should be considered, then it’s too high.  On the other hand, some overtime pay is fine if it avoids hiring a headcount you don’t fully need.

12.  Incentivize workers. 

Try increasing productivity and results with incentives built into your compensation plan.

13.  Provide remote work options.

Studies show remote workers are more productive. Plus, overhead expenses such as rent, furniture, and utilities will plummet, saving expenses overall. 

14.   Hire smart in the first place. 

The saying is “hire slow, fire fast.” Finding the right worker for your business is pretty much an art form. Interview, test, check background and references, and put employees on a trial basis to be sure you have the best workers. 

15.  Maintain a safe working environment. 

Follow all of the regulatory requirements, but follow common sense as well to ensure you have a safe workplace for employees. 

16.  Understand the accounting side of labor costs. 

If you pay an employee $15 per hour, understand that your labor cost is far more than $15. Not included in that $15 is:

The cost to keep an employee includes even more than labor costs and should include allocations for these expenses:

If you’d like us to help you calculate your labor costs per employee hour, please reach out. 

Employees make your business possible, but to maintain a business profit, labor costs must be kept in line. Follow these ideas to keep your team productive and your labor costs in shape. 

***

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Our latest blog: “Controlling Labor Costs” is available now! Subscribe here: [link]

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Learn the importance of controlling your labor costs in our latest blog article: [link]  

In our latest blog article, “Controlling Labor Costs”, we provide 16 ways to control and/or reduce your labor costs. Get instant access here: [link]

Employees make your business possible, but to maintain a business profit, labor costs must be kept in line. Follow these ideas to keep your team productive and your labor costs in shape: [link]

Do you know the true hourly cost of your employees? If you pay an employee $15 per hour, your labor cost is far more than $15. Not included is:

Learn more here:  [link]

Controlling your labor costs is crucial to running a profitable business. Are you utilizing every available method to control/reduce your labor costs? Find out in our latest blog article: [link]

Have you automated everything possible in your business? While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on investment. Learn more in our latest blog article: [link]

Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Our latest blog article covers several ways to control or reduce labor costs in your business. Sign up for our newsletter to learn more: [link]

BizBoost News
Volume 11, Issue 9
For distribution 10/18/21; publication 10/21/21

The Four-D Time Management Trick to Boost Your Efficiency

Time is our most precious personal resource; once we’ve spent it, we’ll never get it back. As busy entrepreneurs, we seem to have less time than anyone else, so it just makes sense to look for ways to use our time wisely. Here is one technique that has worked for many.

The Four D’s

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1.     Do it.
2.     Delegate it.
3.     Delay it.
4.     Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best. 

Do It

The first option is simply to do the task yourself.  Get it done, checked off, and out of the way.  This is often the best option if it’s urgent, important, or you are the only one with the experience and training to do it. 

It might sound counter-intuitive at first, but doing a task might not be the best option. Let’s look at the other three options before we decide. 

Delegate It

If your to-do list is full of simple, routine actions, then delegating is a strong choice. Delegating is also a great choice for tasks that are beyond your skill set and that would take too much learning-curve time away from your core work. If you don’t have time to do everything yourself, then getting help is a smart alternative to doing it yourself. 

Getting help doesn’t mean you have to hire a full-time employee. You can get help in a multitude of ways:

If you can write instructions about how to perform the task, you can delegate it. And if you’re worried about losing control or quality, simply add milestones where you check the person’s work. Initially, it might not be faster, but in the long term, it will pay off.  

Delay It

If a task is not urgent or important, delaying it might be the right option. The problem with this option is that you have to handle the task at least twice: once when reviewing it and deciding whether to do it, and again when you finally decide to do it.  If you keep deciding to delay it, you’ve handled it more than twice. Not only can this take up precious time, it can be a drain on your energy as you see the incomplete task on your to-do list for a long time. 

However, there are times when delaying a task is best:

Be careful of delaying a task over and over again.  Something else may be going on with your mindset:

Delete It

Some tasks should never have been added to your to-do-list in the first place. When there is no return on investment for a task, perhaps the best choice is to delete it.

Take a look at some of the things you do out of habit. Does it still make sense to do that task, or is it simply done because it was always done that way? 

Do, Delegate, Delay, Delete

Try the four-D time management trick for yourself to get an instant boost in efficiency and productivity. 

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “The Four-D Time Management Trick to Boost Your Efficiency”is available now! Subscribe here: [link]

It might sound counter-intuitive at first, but doing a task right away may not be the best option for a busy entrepreneur. Find out what your alternative options are in our latest blog article: [link]  

Time is our most precious personal resource; once we’ve spent it, we’ll never get it back. As busy entrepreneurs, we seem to have less time than anyone else, so it just makes sense to look for ways to use our time wisely. We have one technique that has worked for many. Find out what it is here: [link]

Do you get overwhelmed by the number of tasks you have to do on a daily basis? Sign up for our newsletter to learn the one time management trick that can give you an instant boost of efficiency and productivity: [link]

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1.     Do it.
2.     Delegate it.
3.     Delay it.
4.     Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best. 

Learn more about this time management trick in our latest blog article: [link]

Our latest blog article, “The Four-D Time Management Trick to Boost Your Efficiency”, discusses how the four-D time management trick can give you an instant boost of efficiency and productivity. Learn more in our latest blog article: [link]

Do you time-batch your tasks? Here’s an example: Rather than answer each email as it comes in, think about blocking out three times a day where you check and clear your email. You can apply this time-batching concept to just about everything to gain efficiency: phone calls, attending meetings, running errands, etc. Learn more about the benefits of time-batching and other time management tricks here:  [link]

Have you heard of the four-D time management trick? It’s a great way to get an instant boost in efficiency and productivity. Find out more here: [link]

BizBoost News
Volume 11, Issue 8
For distribution 10/04/21; publication 10/07/21

Gearing Up for Holiday Sales: 2021 Trends and Opportunities

The 2021 holiday sales season will give businesses a chance to continue their online migration from 2020 trends, with opportunities for more refinement and improvements.  The key is to bring as much as possible online and integrate all of your customer touch points into an omnichannel of positive experiences.

Let’s take a look at some trends in retail that we can apply to many other industries. These trends will strengthen our businesses and position us well for the future.

Strong E-Commerce Presence

As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence, especially their e-commerce presence. 

Many retail establishments benefit from a complete ecommerce solution, including a storefront, shopping cart, online payment process, and automated fulfillment. They can expand their online effectiveness with these features:

Expanding your business’s e-commerce presence doesn’t just apply to retail. For example, businesses in the services space have implemented appointment-setting and payment processing. Real estate agents have enhanced virtual home tours. Many businesses with physical goods and documents have beefed up delivery options and implemented curbside pickup. 

Each business has a unique sales cycle that a customer goes through when purchasing goods and services. The question for business owners to ask is how they can bring most of that experience online.

Mobile

 The vast majority of transactions are now occurring on mobile devices. If your business’s mobile presence is not optimal, then you’ll want to make that a priority this year to catch up with your competitors.

Social

More and more consumers are using social media channels – Instagram, YouTube, TikTok, Snapchat, LinkedIn, Pinterest, Twitter, Clubhouse, and Facebook -- to discover and purchase items that delight them. Wise business owners will invest more budget into attracting customers from this channel. 

Holiday Seasons

With the move to online shopping, the holiday season has been extended from just one day or one weekend to entire months. Consumers are shopping earlier and all year long. Retailers and other businesses can benefit by always having some kind of sale or attraction going on. Here are the key holidays for the fourth quarter:

How does your business fare when it comes to a fully online experience? Use these trends to boost sales growth in 2021 and beyond.    

***

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Our latest blog: “Gearing Up for Holiday Sales: 2021 Trends and Opportunities”is available now! Subscribe here: [link]

The 2021 holiday sales season will give businesses a chance to continue their online migration from 2020 trends, with opportunities for more refinement and improvements.  The key is to bring as much as possible online and integrate all of your customer touch points into an omnichannel of positive experiences. Learn how to do this in our latest blog article: [link]  

Our latest blog article, “Gearing Up for Holiday Sales: 2021 Trends and Opportunities”, covers the opportunities businesses have in the upcoming holiday season and how to make the most of it! Get instant access here: [link]

Do you know what trends and opportunities are coming in the 2021 holiday season? These trends could strengthen your business and position you well for the future if you know how to take advantage of them. Learn more here: [link]

A strong e-commerce presence is crucial in today’s market. As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence. Learn more here:  [link]

How does your business fare when it comes to a fully online experience? In our latest blog article, we cover the upcoming trends for the 2021 holiday season. You can use these trends to boost sales growth in 2021 and beyond. Find out more here: [link]

Expanding your business’s e-commerce presence doesn’t just apply to retail. For example, businesses in the services space have implemented appointment-setting and payment processing. Real estate agents have enhanced virtual home tours. Many businesses with physical goods and documents have beefed up delivery options and implemented curbside pickup. Learn more in our latest blog article: [link]

Do you know which holidays are the most profitable for businesses? We list the top holidays for businesses, and how to take advantage of the upcoming holiday season, in our latest blog article. Sign up for our newsletter to learn more: [link]

BizBoost News
Volume 11, Issue 7
For distribution 9/20/21; publication 9/23/21

Making Customers Pay… You

If you grant credit to customers or take recurring credit card payments, the unexpected can happen: a customer fails to pay on time, the credit card expires, or the check bounces. What can a business owner do to spend as little time as possible on these items but get the cash collected?  Plenty.  Here are our ideas:

Re-examine your credit policy

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk. Perhaps you can request final payment right before you deliver the final product.  Perhaps you can convert credit terms to a layaway situation, like they use in retail. 

The best way to speed up collections is to change your payment terms if at all possible. 

Be proactive

If the client is late with a payment, respond quickly.  Send them proactive reminders. Give them a call just before the payment is due if you have this luxury. 

If the customer pays by credit card, monitor credit card expiration dates, and send reminders to update the card before it expires. 

Make it easy and clear on your website support section how a customer can update their credit card number on file at any time. Automating this process will save you a ton of time.

Payment failures and disputes

It’s inevitable that you will experience customers whose credit card payments, ACH withdrawals, and checks fail or bounce. As a business owner, you need to have solid procedures for you or your employees to process these exceptions. 

When a credit card payment fails, make sure your shopping cart, merchant account, or gateway processor notifies you of the failure. Contact the customer right away to correct the situation. The same is true of bounced checks or failed ACH deposits. Assess any extra fees and flag the customer account if you want to place any future payment or credit restrictions on them.     

You may also have customers that report disputes to their credit card company. Respond timely to these transactions as there is always a tight deadline, and make sure you have all of the documentation you need at the time of sale if this comes up. 

Develop solid collections processes

If the payment is late, start your collections routine.  Send out friendly reminders at first; then get progressively aggressive as the payment grows later and later. 

Follow-up steps are very important. Make sure your customer is getting your notifications, and give them a call before you have to take legal steps with them. 

Finally, if necessary, turn the payment over to a collections agency who can impact the customer’s credit report and possibly collect your money.

We hope you do not have too much of this activity in your business. But if you do, being proactive is a great way to reduce it. Check to see if you have all the processes described above in place to handle collections in your business so that your cash continues to flow. 

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Making Customers Pay… You” is available now! Subscribe here: [link]

If you grant credit to customers or take recurring credit card payments, the unexpected can happen: a customer fails to pay on time, the credit card expires, or the check bounces. What can a business owner do to spend as little time as possible on these items but get the cash collected?  Plenty. Check out our list of ideas here: [link]  

Business Tip: Re-examine your credit policy to avoid problems with late payments

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk or request final payment right before you deliver the final product. The best way to speed up collections is to change your payment terms if at all possible. Learn more in our latest blog article: [link]

What can a business owner do when a customer fails to pay on time? There are plenty of options for handling a situation like this. In our latest blog article, we describe four ways to spend as little time as possible on these items while still getting the cash collected: [link]

Do you have a solid collections process set up for your company? When dealing with late-paying customers, having a standard process to follow is key. Find out more about developing this process here: [link]

As a business owner, it’s inevitable that you will experience customers whose credit card payments, ACH withdrawals, and checks fail or bounce. You need to have solid procedures for you or your employees to process these exceptions.  Learn more about how to handle payment failures and disputes in our latest blog article: [link]

There are many ways to handle late payments from clients, as well as ways to prevent future problems and make the process easier for everyone. Learn four ways to handle late-paying clients here: [link]

In our latest blog article, we explain multiple processes to have in place in your business to handle collections so that your cash continues to flow. Sign up for our newsletter to get instant access: [link]