Category Employment

Getting into bed with the celebs

Not about frocks

Keep up won’t you; I’m not asking you to actually sleep with the celebs. I don’t allow anyone to sleep with me. Simon Cowell’s unofficial biography mentioned Dannii Minogue but not me. Yet, coincidentally, I also have a chic shorter ‘do and a couple of designer frocks with an of-the-moment statement shoulder.

No, what I want you to do is consider why government folk, like your Brit Prime Minister, David Cameron, choose celebrities and big company chiefs to advise them on promoting and supporting business start-ups. Put it another way: why don’t your government ask people who have started and are currently running micro businesses to advise them on enterprise policies?

For example, they could use Stefan Topfer instead. Stefan is the Editor of The Small Business Blog and is a highly successful entrepreneur. Then there’s my hopeless agent and highly unsuccessful entrepreneur, who still knows a thing or two about starting and running micro businesses, Tony Robinson OBE.

Not about self-employment

The answer to my question is ‘charisma’. This is something the glampreneurs and fat cats have but the aforementioned German and Yorkshireman do not. Perhaps they’re messy eaters too, especially with posh nosh. You see your government like to portray starting your own business as something anyone can do. In fact they want everyone to do it whilst the big corporates, that are running the country, lay off thousands of employees. It makes the unemployment figures look acceptable.

Furthermore, the Banks and Big Companies want the 6% of start-ups that become substantial businesses as their customers and the glampreneurs want to sell all the start-ups their books and events.

It is about aspiration

Celebrity spokespeople will stay ‘on message’ for government. On message is that entrepreneurs are sexy and wealthy but the self-employed are the great unwashed. On message is that successful start-ups need to invest in financial services (loans, insurance and pensions), utilities, technology, and management and business skills – plus have a volunteer mentor, who may not have started and run their own business, on their shoulder.

Government and corporate leaders legitimise these messages about enterprise, such as, ‘Business in You’, as important for ‘trough filling’. The trough is filled with lots of dosh from start ups buying lots from big companies, taxation and lack of pay out to the welfare state and corporate social responsibility. The public sector and big company leaders keep filling the trough even as they lay off thousands of their employees.

Off message

Business owners, like Stefan Topfer and Tony Robinson OBE, recommend an alternative approach which is that people starting a business are best to bootstrap, test trade, not borrow, and should spend most of their personal time winning customers and managing cash flow.

Furthermore, they suggest that the best help they’ll get will be from other self-employed and micro business owners and that they may need to avoid supplying big corporates as they’ll pay them after, an average, 80 days. In fact, this German/Tyke combo hardly recommend start-ups do any of the stuff most government spokespeople, glampreneurs and corporate leaders do.

So now you know why government get into bed with the celebs.

2012:The Year Enterprise Rocks

Making it Better and Fairer

It will be a rocking good start to 2012. The UK Enterprise Rockers movement is inviting journalists to kick off 2012 by covering the launch of our #MicroBizMatters campaign. The Enterprise Rockers, all micro business owners, have chosen Scarborough to host the media launch event at noon on January 9th.

Scarborough is a former winner of both the most enterprising place in Britain and the most enterprising town in Europe. Oh and the two founders of the Enterprise Rockers, the wonderful Tina Boden and me, live there.

The aim of the Enterprise Rockers movement is to make life better and fairer for all Micro Business Owners. The #MicroBizMatters campaign will improve awareness of the importance of the UK’s 4.5 million micro businesses, including start-ups, to jobs, the economy and communities.

Although the UK is the first to launch the Rockers there is already interest being shown in many countries to take up our movement, including the US.

Positive Messages Will Tackle Discrimination

The campaign also seeks to make people more aware of the discrimination by Government, Banks and Big Businesses against micro business owners and what the benefits to Britain would be if they gave them a fairer chance to survive and thrive. The campaign also positively recognises large organisations that the Rockers agree are micro enterprise friendly such as Apple, the Co-op, British Library and ACAS.

Founder Tina Boden, who owns a fine food company, explained, ‘We’re not a political, lobbying or a fee paying membership organisation. Micro business owners freely get involved in the Rockers to do as much or as little as they like. We agree everything by majority decision.

We believe that by thousands of us supporting each other, trading with each other and carrying the same messages in villages, towns and online all over the UK that we can harness the power of plenty to make life better and fairer for micro business owners.

Our #MicroBizMatters campaign will make people aware why it is important that Britain is more micro enterprise friendly. This in turn will improve the future prospects for micro-business owners including start-ups.’

Why this way works?

For me, it is really important that everything we do is really positive. As micro enterprise owners we are and have to be positive people and we’re used to just getting on with ‘doing the biz’ so we’re certainly not moaners and we’re not looking for hand outs.

We’ve made very little progress in the last twenty years consulting with Government Ministers and their officials to try and get a better deal on skills and support for start-ups and enterprise owners. So the Enterprise Rockers movement is a welcome change of direction.

As one in seven of the adult workforce in the UK are running their own micro businesses there can’t be many of the population that don’t know, and more importantly, would like to help a micro business owner to earn an honest living.

Politicians are only interested in what the public think around election time but by the next UK election we’re pretty sure that we’ll have enough public opinion on our side so that they, for the first time, will need to state what they are going to do for micro business owners (0-9 employees).

Fact: Micro-Business Matters

Influencing public opinion and in turn government is a small part of what we’ll achieve. After all, we’ll never be as important to Ministers as Big Business and the Banks but we can hopefully stop 95% of government funding and support going to bigger business so that the 95% of all UK businesses that are micros get a fairer deal and an even break.

We’re growing. We already provide most of the new jobs, innovation and best help to communities and we contribute a third of all private sector jobs and a fifth of UK turnover. The thousands of Enterprise Rockers actively involved on Twitter, Facebook, Linked In and ready to champion our #MicroBizMatters campaign will make life better and fairer for us all.

The #MicroBizMatters campaign already has 750 signatures on its ‘Tell Us What You’re Doing for Micro Enterprises Not for’ SMEs’ government e-petition. This already puts it at Number 14 out of over 600 e-petitions to the government’s Department of Business, Innovation and Skills.

Whilst the Rockers are not campaigning, through #MicroBizMatters for government funding they are requesting that government reduces its funding and support to Bigger Business. For example for every £50 million of government support 4.5 million micro businesses get 6000 big businesses get £1 billion.

Time to join our band?

The launch of #MicroBizMatters takes place in the Penthouse, the Sands, North Bay, Scarborough at 12 noon on Monday, 9th January. If you know a journalist then ask them to either register here http://enterpriserockersofficiallaunch.eventbrite.co.uk/?ref=enivtefor&utm_source=eb_email&utm_media=email&utm_compaign=invitefor&utm_term=readmore&invite=MTU1Nzk2OS90b255QGVudHJlcHJlbmV1cnN1ay5jb20vMA== or they can arrange to interview the founders of the Enterprise Rockers by e-mailing tony@entrepreneursuk.com with their requirements.

There’s also no better time for you to get involved with the Enterprise Rockers. It’s free and you can join our Enterprise Rockers discussion groups and MicroBizMatters discussion groups on Facebook and Linked In or follow us on Twitter @EnterpriseRocks or check out our website http://enterpriserockers.co.uk and sign our Government e-petition at http://t.co/QK36cLlU

Thanks lots – enjoy 2012 the year of the Enterprise Rockers.

Using LinkedIn To Boost Your Prospects

CV

The world as we know it is changing; and, more pertinent to business owners is the way that business is changing. Gone are the days when we all sat in cubicles, working 9-5, using paid advertisement to grow our companies and traditional CV’s to get jobs.

An increasing number of employers are using LinkedIn, Facebook and Twitter to check the credentials of potential employees; due to the professional nature of LinkedIn it is this that is often the basis of an employer’s research in to potential job candidates.

However, not only is LinkedIn now being used to assess potential employees; it is also being used to find them in the first place. Here are some useful tips on how to use LinkedIn to your advantage when on the hunt for a job:

Connections – LinkedIn is useless without connections. Connect with as many previous clients and people that you have done business with as possible; make these connections meaningful by sending messages to ask how people are getting on, and making recommendations. Build your network before you need it, because you never know when it might come in handy.

Get Recommended – One of the best aspects of LinkedIn for recruiters in the presence of recommendations. Strong recommendations show that you are respected and valued within your area; these are particularly useful if you have been recently made redundant. A glowing recommendation from a previous employer speaks volumes!

Join groups – Make sure you join groups that are targeted to your area of expertise; and if someone asks a question, wow the other group members with your answer. You never know, a potential employer might be reading.

Look out for job vacancies – this may sound obvious but if there is a specific company you are interested in working in be sure to check their LinkedIn profile regularly for job updates and listings.

Keep it professional – Remember that your LinkedIn profile is public, and as such should be used accordingly. Keep your profile completely professional and it could pay dividends when potential employers look you up.

Do you have concern for your business or only for yourself?

I had an interesting conversation about my view that management control over employees is a myth. I have believed for some time now that an office is often a total waste of money and completely unnecessary. Most of the time I’m told it’s OK when you work by yourself, but not if you have employees, as they need to be supervised and somehow “controlled”.

I have now been working for almost ten years from home, and most of my staff works from home too. Apart from being an eco-friendly way to work, it saves people time and frustration to travel in and around London to come to an office, where we all sit in cubicles or offices. In the days of broadband internet, Skype and OnlineOffice, there is no need for an office, even to have meetings.

Offices, like cars are are often nothing else but status symbols – what other reason can there be for a small business to have an office? If that is true then how is the office helping with your business, it’s a big expense. Seriously, if you do not have clients coming thru your office doors several times every day, why have the office. Even if you have, do really all your people need to be in the office every day? I guess not!

We are in an economic downturn, what is more important – your ego or your business – ask yourself that every time you walk into your office. I’m sure there a good reasons for some micro businesses to have offices, even so I currently can’t think of any, but I’m convinced in most cases a healthy bootstrapping and outsourcing mentality would be more beneficial for your business.

Unless the first business goal is to feed your egomania, you need to have a good hard look at your cost structure to survive in these times. — ST.

Why educate women – isn't it a waste of resources?

When my wife went to university in London in the eighties one of her professors was of the opinion that the education was wasted on women, since they would leave university, get married and have children. While nobody says these things anymore in public, we still seem to have the same mentality.

Today I travel around the world and speak with all kinds of people about micro-business, like home-business. Often the conversation includes the so called “skill shortage”, felt especially hard in Australia these days. When I question this alleged shortage, I’m always surprised about how little consideration is given to well skilled and educated parents – mainly women – sitting at home looking after the family.

After one of these conversations today, I was reminded of this professor and began wondering if he was right with his opinion in the final analysis? Trivially, his assertion that educating women is a waste, is completely nonsensical, but the final result to the economy seems to suggest his analysis could be right. How else can it be explained that we ignore this massive “skills resource” sitting at home.

The technology we at WinWeb have developed allows for work from anywhere at anytime, others have done the same in other areas? Where is this “skill shortage”? The truth in my opinion is more the fact that we often block this remote working possibility from our minds, but why?

If you consider the skills potential of parents, if each parent would only contribute one hour on average per week to their learned professions. This would be a staggering number of man hours per week.

The benefits for the home working parent would be very tangible too. They could show a almost uninterrupted work history, stay in touch with their profession and would therefor find it much easier to get back into full-time employment after the kids have grown up.

To often my conversation partners look somewhat bewildered at my initial suggestion, but then often admit they had never thought about this possibility.

It is not a waste to educate women or any parent, it is however a waste to treat parents as if they do not exist in work terms. I consider it an insult to each parent and unbelievably damaging for our economy. — ST.

Is Teleworking only for Big Business?

More and more of the work-force in large corporations work from home, or have a “hot-desk”, they share with others while they are in the office. This trend is driven by the ever present need to feed the profit hungry shareholders of these often public companies. But is this trend only some thing big business should consider, or has teleworking a place in the small business?

If it is then what would the advantages are for micro business to allow teleworking for it’s small work-force? Here are some reasons why you may consider to allow your staff to work from home or on the road, with only a temp-desk in your office:

  • Efficiency – you may come to the conclusion that your staff member does not need to be in the office to do their work, bookkeeping staff for instance, customer care staff can also work from home. They would save the trip into the office, saving time and money while reducing carbon footprint.
  • Cost-effective – consider how much office space you could save, with that money on rent, furniture, heating and electricity, again reducing carbon emissions.
  • Recession-proofing – having lower over-heads/fixed costs during times of an economic slowdown helps your small business to survive.
  • Growth of Business – you could stay longer in the same property while your business is growing, with the same above effects, plus savings on time, money by not having to move. No to mention the business interruption before, during and after the move.
  • Lean & Mean – is not only something that big business needs to worry about, if they could they would run the whole Microsoft, GE, Barclays empires with ten people, in order to boost profits. Ultimately that is why you run your small business too.
  • Enabling disabled workers – this point is often overlooked. We are concerned with not having a educated workforce, while highly educated but disabled people sit hat home without adequate work, that seems a waste to me.

I think it is sometimes important to remember how good it feels to get up in the morning and go to your small business without any real financial worries. Unfortunately this is not the reality for many self-employed, sole-traders and other micro businesses, that is a shame. Making decisions about how and where your work-force works is part of that process that will get you there in the end.

After working from home full-time now for over nine years, only going to the office for meetings has not only be a financial success but also liberating. — ST.

Resources:

  • OnlineOfficerun your office, staff and business from anywhere.
  • Business Link – one of the best guides I’ve seen.

Small Business Checklist: Staff Training Opportunities

I think I have written at length about customer service and how important it is to the success of your small business. Customer service has also to do with knowledge about your products and services, personal development and training is essential to reach this goal.

However, if you think that training is costly, think again. I have compiled some low cost training options for you:

Suppliers – they often run in-house training programs, it is good for them too;
DIY-Training – run in-house training yourself, do case studies;
Experts – if you employ in-house experts, use them for training others too;
Product Testing – get free test product and have hands-on time for your staff;
Literature – start a library for your firm and give staff time to read;
Internet – encourage the use of the Internet to find information;
Volunteer – get staff to volunteer for charity, school or other work, it’s very educational;
Training Grants – often grants are available for training, get informed.

With good customer care and product proficiency your business will convert more customer enquiries into revenue generating business. Training will motivate your staff and help you to be a pro-active and up-to-date supplier for your clients. ST.

People buy from People.

When hiring people, what are you looking for? Knowledge about your industry, high IQ, many years experience? All these personal traits are important, but not as important as EQ – emotional intelligence – which means people who have natural warmth, are optimistic and can empathize with the plight of other people.

Who would you rather deal with, someone who seems cold and distant, or someone who understands your problems and can suggest solutions or ideas on a services/product level, but also on a more emotional and beneficial level. It is with everything else in life, we like dealing with friendly and warm people.

So when you hire, ask about faults, ask about being told off for getting something wrong, ask how they felt when someone else got told off at work? Listen to their answers, if they have no faults, if they never make mistakes, or think others are just not good enough, than they are obviously perfect.

Never hire perfect people, they are deeply flawed or inhuman, and nobody will want to deal with them, including you! ST.

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

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.

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