Category avoid growing pain

Entries 34 Total

Q & A: What is "Staff Turnover" and how large or small would it be for Small Business?

Oct 26, ’07 8:08 AM
Author Stefan Töpfer (Editor) Categories Employment, Question & Answer, avoid growing pain, plan your business, recruit the right people

Well, two things come to mind:

Often the term “staff turnover” is used in connection with fluctuation in staff levels, which means staff leaves the company – for whichever reason. How large or small staff turnover in a company typically is I do not know, but large staff fluctuations are not good for any business. It usually indicates problems during the hiring process or management problems within the company.

The other use of the term “staff turnover” could be in relation to the monetary turnover for a business a staff member will generate, versus the turnover generated by the business owner. This is assuming this staff member is employed in a sales capacity. Here it would be desirable to have a large turnover, of cause.

In both cases it is true to say, it does not matter what kind of small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, you run. It may be more related to things like:

  • Market segment;
  • Management environment;
  • Staff experience, to name but a few.

You can always speak with some other small business owners or get some market segment data from information agencies, maybe they can give you a better idea of where you should be with numbers, comparing yourself to your peers is always a good idea.

I like the question, it makes for some interesting planning exercises for bootstrappers. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below – I’d be most grateful.

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Q & A: Does Small Business Need a Disaster Plan?

Oct 25, ’07 8:51 AM
Author Stefan Töpfer (Editor) Categories Data Security, Disaster Plan, Outsourcing, Question & Answer, Software as a Service, Virtual Assistants, Web Technology, avoid growing pain, be successful, do a reality check, handle problems, outsource effectively, plan your business, use online IT

Again I had several questions regarding “crisis planning“, “disaster planning“, “data-security” and “data-backup“, so I will cover all of them in this post.

When I started thinking about WinWeb’s Small Business Infrastructure, we always knew we had to do something about data-security and data-backup. The truth of the matter is that most small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, do not have a coherent data-security and back-up strategy. To be perfectly blunt about the subject, it is not made easier by confusing technology and more to the point terminology, that even we have difficulty understanding some time. So I believe:

We should not expect business start-ups and small business in general to be accountants, bookkeepers, IT specialist, lawyers, marketing & PR gurus and so on. We should provide small business with an infrastructure in which it can concentrate on core business tasks, while at the same time enabling the business owner to stay informed of all relevant business facts like cash flow, sales, HR issues, tax position and more. This will enable him / her to make informed decisions, maybe with the help of an external advisor.

I formulated at the beginning that one of the benefits of using WinWeb’s OnlineOffice would be:

No security problems. No business interruption problem.
Your data is continuously backed up onto multiple RAID-5 data servers in multiple physically and network secure data centres – if that is not enough you can make a copy of your data anytime onto your PC or a CD. Should your computer crash or get stolen – no problem, just log on to another computer and keep working – can your competition do that?

So that takes care of the data security and back-up problem. To give you a little example, one of our clients is a web-designer for a niche market, he lives in an area which was flooded earlier in the year. His computer equipment gone, but all his data, addresses, email and work was safely stored in our OnlineOffice. He moved to his parents for a time and was back working within a few hours – not everybody was that lucky.

A burglary or fire would do the same – and can be dealt with quiet easily. This is not so easy when you have a business that manufactures goods, even when you do it from the kitchen table, you will incur “business interruption“. You will need a plan for that too – insurance may be the first step.

But loosing customers and with that revenue is not something an insurance is going to cover you for. So you need to plan ahead, ask yourself the following questions:

  • Is there somewhere else I could work from temporarily? Parents, friends, short term office hire, etc.
  • How long until I can get my raw-materials again? Maybe you should require your supplier to get a certain amount in stock for you, make a contract.
  • Could you hire machinery until you can replace your own? Find suppliers now.
  • Could my staff work from home if necessary? Online technology will help with that.
  • Could I outsource some work temporarily? Have a look at virtual assistants in your area.

There are other questions you could ask yourself, just take 30 minutes, get a piece of paper and imagine your business, office, house, kitchen just burned down – trust me – the questions will come, and so will the answers. Oh, just to mention it, a disaster plan in a burned out house is of no value to anyone, keep it online or safe elsewhere.

Answer: YES, a small business needs a disaster plan, just like any other business. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below – I’d be most grateful.

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Q & A: What does "Fixed Costs" mean and why should they be as low as possible in a Small Business?

Oct 25, ’07 8:11 AM
Author Stefan Töpfer (Editor) Categories Employment, Outsourcing, Question & Answer, Web Technology, avoid growing pain, be successful, bootstrap, do cost cutting, grow your business, lower overheads, outsource effectively, plan cash-flow, plan your business

I’m answering three questions here, emailed to me during last week, so excuse the long headline. I will give examples and will let you fill in the rest for yourself.

What are “Fixed Costs”?

Fixed costs are operating cost that are incurred when providing necessities for doing business and have no relation to the volume of production and sales. Examples are rent, some employee costs, property taxes, telephone, heating and interest/bank expense.

As opposed to “Variable Costs“, they only occur in proportion to activity within the business and hopefully that will lead to sales and revenue.

Why should I keep my “Fixed Costs” as low as possible?

When I talk about outsourcing, I’m talking about changing fixed cost into variable cost. Let me give you an obvious example to make my point.

Let us assume you have hired someone to answer the telephone, this person cost you $1,000 per month, and on average you get about 5 calls per day. Most of these calls are not even from clients, or you could take the calls while you are in the office. This $1,000 is a fixed cost, no matter how many calls you get, or if you are in the office or not.

So you outsource it to a virtual assistant, now you pay $100 per month and that includes 50 calls received, each extra call is $1 per call. The $100 are still fixed cost, but you have lowered your monthly fixed outgoings by $900. And depending how often you are in or out of your office, the 50 inclusive calls are probably enough to cover your needs. Combine this with online technology and you can stay in touch anywhere and anytime.

Should that not be the case, then you have “variable costs” of $1 per call, which means you are out of the office, working or enjoying life while it is quiet, for example during holiday season. You phone is professionally looked after in any case.

Outsourcing, bootstrapping (cutting costs), it all means the same for any small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, more money for you, less distractions, and a more recession proof small business, that is why business planning is so important.

Answer: Keep your “Fixed Costs” down. Stay mean and lean, while enjoying your work and life. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below – I’d be most grateful.

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Bookkeeping for Small Business

Oct 12, ’07 6:33 AM
Author Stefan Töpfer (Editor) Categories Accounting, Entrepreneur, Failure, Health Check, Marketing/PR, Outsourcing, Small Business / SOHO, Software as a Service, Work/Life Balance, avoid growing pain, be eco-friendly, be successful, bootstrap, do a SWOT plan, do a reality check, do bookkeeping., do cost cutting, do credit control, grow your business, handle problems, lower overheads, market and sell, outsource effectively, plan cash-flow, plan your business, use online IT

I have discussed before that it is important for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, to do a minimum of business planning, but does it stop there?

Not really, you need to keep up to date with your bookkeeping, to complete the business planning process. You may ask why, if you have done the planning, why not get your bookkeeping done once a year for your tax return?

The answer to this question is the business planning process never ends. Remember I have been talking about going back to your plan at least once a month. In order to fine-tune your small business planning you need to actual information how your business performed in the last month. The only way to do that is to do your bookkeeping or accounting.

By doing that you will be able to compare your predicted numbers in your cash-flow with the actual number your business has generated. This in turn will help you to update or modify your cash-flow plan for the future. More important than that, you will learn new things about your business:

  • You may have higher (good) or lower (bad) sales, than you expected?
  • Your cost in your business may be higher (bad) or lower (better) than you expected?
  • Your cash-flow may be better or worse do to the above two points?
  • You may need to outsource some business processes to lower your fixed cost structure, to make your business more recession proof or just more profitable?
  • You may need to ramp up your sales and marketing activities for your small business products or services?
  • You may also have to adjust your SWOT analysis and your business goals?

You will be surprised how creative you can be, once you know about and understand a problem in your business plan. It may not even be a problem at that time, you may just need to adjust the way you do things, and you may have avoided a small or big problem in the future.

In my opinion strict cost control and bootstrapping are not like nice to have features, they are essential for your small business survival. Often the difference between failure and success is just a little planning and checking the “plan” – doing a reality check. There is no excuse not to do it, all the tools are available for free, for anyone.

If you feel the initial process of business planning is too much for you, than get your accountant or bookkeeper to help you to set your cash-flow fore-casting, SWOT analysis with you, doing it online will give you strategic advantages, like you can work with your accountant or bookkeeper in real time in different places, this lowers your cost, no time wasted and is good for the environment.

I would like to make one more point here, the aim of all this planning is not to get it spot on – no, the aim is to understand what is happening in your business, that is why you should be doing it.

Among other things, it will give you a measure of certainty, security and confidence, if you understand what is happening in your business. So, how confident are you about the future of your business? Why not take the weekend and have a planning session, it is like playing monopoly, only this game will secure your future. ST.

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Coworking and Small Business

Oct 9, ’07 7:35 PM
Author Stefan Töpfer (Editor) Categories Freelancer, Personal Business, SOHO/SMB/SME/Micro, Self-employed, Sole-Trader, Start-Up, avoid growing pain, bootstrap, lower overheads, start-up in business

If you don’t know what co-working is then let me quote from the Coworking Wiki:

“Co-working is cafe-like community/collaboration space for developers, writers and independents.
Or, it’s like this: start with a shared office and add cafe culture. Which is the opposite of most modern cafes. ;) ”

Here is a great resource if you are looking for co-working space or even think about setting up a co-working space. More information can be found in an article by Small Biz Labs ” Nerd Values and Small Business” or “The American Prospect on Coworking; Coworking Location Map” .

It is a great way to work for yourself, bootstrapp and have a social life while working. ST.

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Planning Your Small Business And Start-up

Oct 2, ’07 1:09 PM
Author Stefan Töpfer (Editor) Categories Development, Entrepreneur, Health Check, Sales, Start-Up, avoid growing pain, be successful, bootstrap, do a SWOT plan, do a reality check, do cost cutting, do credit control, grow your business, lower overheads, plan cash-flow, plan your business, start-up in business

For me small business planning centers around some very basic questions and I always aim to answer those first:

  • How much is my business going to cost to set-up?
  • What are the monthly running costs of my start-up?
  • Is anyone willing to buy what I have to sell?
  • What other problems or challenges does my business face?
  • What are my best selling points or strength?

You may thing that these are all very basic questions and you would be right – but can you really answer them for your small business? I think I would find it difficult at times too. So I have devised this very basic business planning system I would like to share with you:

  • Cash-flow Planning
  • SWOT – Strength, Weakness, Opportunities and Threats Analysis
  • Mission & Goals Statement

Let us have a look at each one of these components individually – first up cash-flow planning – without money it is difficult to run a business. You may see that as a problem, I view that as an opportunity in as much that it forces you to sell your service or product, before you do anything else.

You could of cause do a market study and analysis, spend “lots” of money in the process and have very little extra useful information at the end of the process. While if someone buys your service or product you know it sells – without spending a penny. Enter your sales into a cash-flow and you can easily work out how much cost your small business can take. I’m passionate about “bootstrapping your small business” from day one.

This in turn will help you to focus on saving money wherever you can, since you will only make very little money in the beginning. You will understand that payment terms you offer to your clients or payment terms you receive from your suppliers can greatly help with your cash-flow, I have written about cash-flow planning before.

Secondly I like to do a SWOT analysis so I can focus myself and others in my business to stay “on message” and understand the vision for the business better. Even if you have no staff to begin with, it will help you to make the right decisions and stay focused.

Strength and Weaknesses are “internal” factors where you need to be honest with yourself and write down what you do well and what you do badly – writing it down is almost therapeutic – enabling you base future decisions on these facts, building on your strength, while avoiding your weak spots.

Opportunities and Threats are all about “external” factors and deal with issues like your unique differentiators for your products and services in the market place, as well as your competitors, red-tape, funding issues, etc. Again just writing them down will move you forward.

Last but not least I find it helpful to have a “Mission Statement” for my business, what do I want to achieve, so my customers, partners and others understand what my business is all about.

The “Goals Statement” is more personal, I write down why I run my small business or why I want to start a business.

As with all plans it is of the utmost importance to revisit your business plan as often as once a month or at times when you do not know which decision to take – go to your goals list, it will help you to focus on the way forward.

Doing basic business planning like that will help you to run and grow your business, and it can be fun too. Remember it is cheaper to test your plans on paper then for real with your own money.

I wish you and your small business or start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants “Happy Planning and Success”! ST.

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Small Business Bootstrapping Techniques

Oct 1, ’07 9:02 AM
Author Stefan Töpfer (Editor) Categories Entrepreneur, Infrastructure, Outsourcing, Small Business / SOHO, Start-Up, avoid growing pain, be successful, bootstrap, do a SWOT plan, do cost cutting, grow your business, plan your business, start-up in business

I often refer to “bootstrapping“, when I talk about small business, you may very well be asking “What the hell is bootstrapping?” To put is simply, bootstrapping is the art of running a small business with no or very little money and/or funding.

So if you are thinking about starting, growing or running your small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal businesses, but are worried about if you can be successful, worried about failing, worried about giving up your job, etc. than bootstrapping is for you.

Especially if your aim is to build a personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants, working from home, creating an income and keeping it small and manageable, then bootstrapping is definitely for you. There are more than 18 million small and home businesses in the US alone, self-employed working is gathering pace in all areas of business. If you look around you you will most probably know many people working from home, or doing contract work, freelancers and so on.

One very unpleasant outcome of a small business venture is the failure thereof. Bootstrapping will mitigate any fallout from a business failure. Remember that business success often comes with experience and experience comes form making mistakes – bootstrapping will allow you to make mistakes and recover from them.

Here are a few bootstrapping facts to consider if you wonder if bootstrapping is for your:

  • Bootstrapping is a fast and the best way to build a solid small business, because you are starting with sales as your priority task – that creates cash-flow and keeps your small business alive.
  • Bootstrappers don’t waste their money – they make money. They understand that cash is king and should not be wasted on old style advertising and marketing – there are better and almost cost-free ways to promote your small business.
  • Bootstrappers don’t waste time with long business plans they start their small business immediately. Cash-flow, SWOT, list of goals and they are in business.
  • Bootstrapping is the lowest risk strategy to start a business, you can start your business with a Small Business Infrastructure for about $20 / £10 per month, get ready in peace find customers in your spare time and build your business on the side.
  • Bootstarppers don’t follow the herd, they use unconventional thinking to move forward and succeed.
  • Bootstrappers focus on their business goals, outsource and build networks to grow their small business.

It is never too late to start with bootstrapping even if you have been running your small business for years. So have a look at it and build a stronger, more secure small business for yourself.

When are you going to start bootstrapping? ST.

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Stop Worrying – Start Thinking Through Your Small Business Problems.

Aug 29, ’07 10:29 AM
Author Stefan Töpfer (Editor) Categories Development, Entrepreneur, Small Business / SOHO, Start-Up, Work/Life Balance, avoid growing pain, be successful, bootstrap, do a reality check, grow your business, handle problems, motivate your staff, start-up in business

I find some of the most stressful things to running your own small business is when you can’t find an solution to a problem.

This is especially true when your are a personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants working alone. People have different strategies for dealing with this problem and clearing their head:

  • going for a walk
  • just taking a break and read about something else
  • watching a film
  • going to do some exercise

When you run a small business or start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business, you can also talk to people associated with you or your business – people you trust:

  • your staff
  • your accountant
  • your bookkeeper
  • your virtual assistant
  • your friends
  • your business advisor or mentor

We all need advice from time to time – worrying about a problem has never solved anything. But be selective who you ask and remember what Blaise Pascal once said:


“What a difficult thing it is to ask someone’s advice on a matter without colouring his judgement by the way in which we present our problem.”

So make sure, when you ask people for advice not to waste your and their time by “colouring” your problem – you will quickly learn there is solution to almost any problem.

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Remember Why You Started Your Small Business

Aug 29, ’07 9:44 AM
Author Stefan Töpfer (Editor) Categories Entrepreneur, Lifestyle, Start-Up, Work/Life Balance, avoid growing pain, be successful, grow your business, handle problems, start-up in business

Sometimes it can get pretty stressful starting, running and especially growing your small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business.

I always found it helpful to remember why I started my business, even if you run a personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants. My first business was started to make money and get me through university. I have never really worked for anyone full-time, but your own motivation for starting a business may be reasons like:

  • having a better live
  • higher standard of living
  • launch your own product and see it succeed
  • escape the corporate rat-race
  • spend more time with your family
  • look after a family member
  • can’t stand being retired

And the list could go on and on, compared to your goal the stress may seem more bearable, stress is apart of live not only for business owners, but anyone.

So remember why you are running your small business – it will help you to deal with the stresses a little better.

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SaaS Benefits for Business Start-Up and Small Business

Aug 28, ’07 3:17 PM
Author Stefan Töpfer (Editor) Categories Data Security, Development, E-Commerce, Entrepreneur, Exporting, Green/Eco-Friendly, Home Business, Infrastructure, Infrastructure, Marketing/PR, Mobile Technology, Office - IT, Outsourcing, Sales, Small Business / SOHO, Software as a Service, Start-Up, Web Technology, WinWeb, avoid growing pain, be eco-friendly, be successful, bootstrap, choose your office, do a SWOT plan, do bookkeeping., do cost cutting, do credit control, export, grow your business, keep data safe, lower overheads, market and sell, outsource effectively, plan cash-flow, plan your business, start-up in business, use online IT

Starting and running a small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business today, is all about staying focused on the small business and not on running your office. WinWeb’s Software as a Service applications allow you to do exactly that. Below you will find some of the benefits detailed to help you make up your mind if this kind of technology is for you.

1. No More Software Installation.

Since our software comes to you via your internet browser, there is no need to install anything. Your printer will also work with our software without installation or any modifications. Our software works with any web browser, Internet Explorer, Safari, Firefox etc.

2. Our software is always up to date.

This really is one of the main benefits of SaaS. We make all the software updates on our servers, so you don’t have to do anything. No update hassle and worry anymore. There are no “Update available – Please download” messages and no CDs / DVDs updates arriving in the mail.

3. Never pay for software “updates” again!

No matter if we update or bug-fix, you will never have to pay for them again, it is all part and parcel of our service. Artificially accelerated software cycles are a thing of your past.

4. Fully Compatible with any Operating System.

Our software runs on any Operating System (OS) with Linux, Mac, Windows and some others – you login and use it.

5. Work and collaborate with anyone, anytime and anywhere.

Our software allows you to work with your accountant, colleagues, virtual assistants and others in real-time at anytime – whatever your business needs.

6. No commuting. No time wasting.

With online technology you can work from anywhere, so no need to travel to an office. Run your small business from home and benefit in terms of time, money and investment.

7. No security problems. No business interruption problem.

Your data is continuously backed up onto multiple RAID-5 data servers in multiple physically and network secure data centers – if that is not enough you can make a copy of your data anytime onto your PC or a CD.
Should your computer crash or get stolen – no problem, just log on to another computer and keep working – can your competition do that?

8. 24/7 Live Support 365 days a year.

We believe that you will be busy during the day with your clients and with working on new projects and so you should – after the phone stops ringing you get down to your admin work. So we thought we better be around in case you need some support for any of our products. It would be no good if we weren’t around now, would it?

9. No contract needed.

No minimum term, cancel anytime, no contract needed and you can test drive any software for a minimum of 30 days free of charge. This puts you in control. Unlike the boxed software you buy, once you paid for it, it’s yours including the problems. Not so with our software.

10. ClimateByte™ Technology

Our environment is in trouble – by using our on-demand Small Business Infrastructure™, you can help to reduce your carbon footprint and help our environment – we are dedicated to develop our future products and services with this in mind.

Our Software as a Service products provide your small business with a on-demand Small Business Infrastructure™ helping you to concentrate on your business, while we run your office and IT. This makes your business more mobile and competitive while saving you time, money and helping the environment.

When you run a small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants you probably benefit even more from using SaaS technology – program your business for success.

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