Stresses of running a business

November 19th, 2010

Moderate levels of stress can keep us alert and can help us perform better in challenging situations. Stressful situations can be exhilarating and some people thrive on the excitement. But stress is only healthy as a short­ term response. Excessive or continued stress can lead to illness, and physical and emotional exhaustion. Taken to extremes: stress kills.

When you feel stressed, your body produces hormones to prepare you for ‘fight or flight’. These raise your blood pressure, heart rate, and perspiration. They also reduce blood flow to the skin and reduce stomach activity. The efficiency of your immune system is reduced. All of these make it easier for you to fight or run away – great for our ancestors – but less useful when running a business – you can’t fight, and you can’t easily run away!

Because of this, the chemicals your body has produced are not used up in the way that nature intended. Over time these chemicals and the changes they produce can seriously damage your health.

All of us have suffered stress and can probably recognise some of these symptoms of stress:

  • Feeling of being overloaded, confused, and not coping
  • Feeling that your staff don’t care
  • Continually being ‘on the back foot’ rather than moving the business forward
  • Difficulty in winding down at night – despite being tired
  • Poor sleep and perhaps waking early with palpitations or a panic attack as you recall your latest crisis
  • Difficulty in concentrating or thinking rationally
  • Indecisiveness and poor judgement
  • Irritability, loss of sense of humour and perspective, arguments, or depression
  • Avoiding difficult situations
  • Other physical symptoms may include headaches, chest pains, high blood pressure, stomach disorders, tiredness

These symptoms can make you feel so unwell that you may start to worry that you have a serious illness, which is likely to make you feel more stressed. If the stress continues long term you may be putting yourself at risk of heart attacks and strokes.

Do not ignore physical warning signs and seek medical help where appropriate.

You may feel under pressure to work through periods of stress to ensure the continuity of the business. Although employees expect the managing director to know what to do in a given situation, there will be times when you don’t have the answer and would benefit from help yourself.

Often it’s not the things you do that are stressful – it’s that long list of tasks that you know you should be doing!

Maybe you feel your situation is beyond solving – and you’re just going through the motions until the inevitable strikes.

It’s all too easy for things to get out of proportion when you don’t have someone you feel that you can talk honestly with.  As entrepreneurs, there can be pressure on us to present a face to the world that can be a real effort to keep up when things aren’t going well.  Where does this pressure come from, and who is supposed to benefit?  There’s a fine line between acting positively and living in a state of delusion.  Wouldn’t it be good if you could drop this ‘mask’ for an hour to talk through your problems or concerns with a trusted adviser and sense-check your ideas for overcoming the difficulties?

The spectre of the business failing is bound to be stressful, particularly if you face losing your home too.  The strain of managing a business is demanding enough when you’re fortunate to have a supportive partner – but when the comfort, security, and status of your family is threatened and your relationship is tested – it can feel that your whole life is falling apart.

People react differently to stress. A situation that is intolerable to one person can be stimulating to another. Some people are more relaxed and easy going and seem to cope better with pressure.

How stressed you feel is not purely determined by the events you face, but how you perceive these and the response that you choose to make.

There are a number of techniques that you can try to ‘inoculate’ yourself against stress:

  • No matter how tough your day – find some positive that you can hold on to
  • Remember, victory is usually built from lots of small victories
  • Collect quotations that have a positive effect on you and read them when you need extra strength
  • Listen to music that you find uplifting
  • Write positive affirmations and read them daily Keep physically active, ideally exercise daily
  • When feeling stressed breathe into the abdomen (not the chest), and breathe out slowly
  • Consider expressing your feelings privately in writing – this can help you to reconcile the situation in your mind
  • Make the effort to eat healthily and cut down on caffeine
  • Resist becoming dependent on cigarettes, alcohol, or tranquillisers as an automatic response to stress
  • In preparing to sleep think about something that you can look forward to and plan – such as a holiday or a hobby that you enjoy
  • Where possible, avoid associating with negative people or people who drain your energy

Seek help from a trusted friend or person that you can talk in confidence with, explore your options, and gain renewed clarity for your priorities

Are YOU in your own way?

November 4th, 2010

The last few days have seen me have a fair bit contact of with mentors and metorees on the two programs I mentor on and it’s been really interesting to hear some of the discussions that went on.

Some of the main points I thought were relevant to share include;

  1. Most business owners believe what they are facing or going through is unique to them only and as such only they may be able to figure them out.
  2. Many business owners believe only they can do many of the tasks that need to be done in their businesses and sometimes feel trapped or unable to share the workload with staff.
  3. Many business owners (some in business for over 10 years) didn’t know where to go for help in areas that are not their core strength.
  4. Most thought that assistance was too expensive without even considering the return in ease, peace of mind and business growth.
  5. In addition most thought that it showed some form of weakness in looking for external assistance.
  6. Most did not have any form of planning as part of their business process and just did things according to what was most pressing at the time.  Cash flow also fell into this category.
  7. Most were unsure of how to measure their progress or what is really important to measure success as a business.
  8. Many business owners were unaware that they are falling foul of legislation in regards to what’s expected of them as business owners.
  9. All agreed that having someone to talk to about some of the tough things faced as a business owner had made a huge difference in their lives and most wished they had done it sooner.

Sometimes without even knowing it we are limiting our progress by limiting what we are open to and we get so caught up in our day to day workings of our businesses that we don’t consider much more than survival at times.  Take a step back and look at your business through objective eyes from time to time and if you struggle to do that maybe it’s time to ask someone to do it with you.

10 Ways to Speed up Customer Payments

October 26th, 2010

Q: What are The Three Most Important Things in Business?

A: Cashflow, Cashflow, Cashflow

Cashflow is the life blood of any business and more businesses go bankrupt because they fail to keep the cash flowing than fail for any other reason.

Insolvency

A company or business is insolvent if they cannot pay their creditors as the invoices fall due.  In order to avoid this happening you need to ensure that you get paid on time by your customers so that you in turn can pay your suppliers when their invoices fall due.

The ten steps you can take are:

  1. Make sure your customers know your terms of trade. i.e. payment is due in 7 days.  Many companies take 30 days to pay but make sure they know what your terms are and the reasons for them.
  2. Make sure you raise your invoices for work done, promptly.
  3. Send out statements at the end of each month to all customers who have outstanding invoices.
  4. Many customers will only pay when they have received a statement, so send it early.
  5. Get to know who’s responsible for accounts payable and talk to them regularly.
  6. Telephone this person (responsible for creditor payment) and ask if your invoice is on the next payment run.  If it is good, if it is not ask why! And also find out what you have to do to get it onto the payment run.
  7. Find out when each customer does their payment runs and diarise them so you know when to chase your payments.
  8. Where possible hand over the invoice when work is completed and let the customer know that you expect prompt payment as the work has been completed.
  9. Where possible get either staged payments for a project or a payment up front for materials, etc.
  10. If the relationship is ongoing ask for a Direct Debit to be raised in your favour so that you get a regular monthly payment without chasing the customer.  Remember to have the Direct Debit changed when you re-negotiate your charges each year.

The majority of businesses fail because of cash-flow issues – they simply run out of money, are unable to pay their bills and subsequently have to cease trading.

Please contact us for a free cash flow template to help you better manage your finances.

Your Guiding Beacon

October 21st, 2010

No matter what state your business is currently in, there’s something you can do to dramatically increase the chances of your business succeeding.   Yet, many smaller businesses fail to appreciate the value and relevance of this to their business.  If you’re sceptical – read on to see what you might be missing….

Without a business plan, you may be constantly adjusting your short-term strategy – without a view to your long-term milestones.

Through the thinking process of creating a business plan, you’re likely to see your business in a different light.  A business plan isn’t just to help raise funding.  A business plan helps you to consider possible obstacles to your business and prepares you to find solutions to overcome them before events over-take you.


As your business grows, you want to organise and plan better, and communicate priorities. Be strategic. Develop a plan; don’t just try to keep it in your head.

A business plan should not be a static document that you put together when first starting out and then set aside to ‘gather dust’. The business plan will change over time as the business develops, and if it’s produced well – it will help you to drive your business effectively.

So what is a business plan? At its simplest – it’s whatever you need it to be. The value of a business plan is the decisions that it influences, and ultimately, how your business is run.

Writing a business plan will force you to think about your business and market in a structured way. It will help you to gain a wider, deeper, and more perceptive understanding of your marketplace – and perhaps point the way forward.

A formal business plan allows you to compare actual results with the plan. In this way, it allows you to clearly see whether you have achieved your strategic, financial, and operational goals – and to better understand any variances, and what needs to happen to address them.

The plan allows you to prioritise, set goals, track progress, divide the work into tasks, estimate sales and expenses, and manage budgets.

The plan depends on the people around it, and particularly the process of involvement and commitment, and then tracking and follow-up.  It helps you to reposition your business to deal with changing conditions.

The point of having the plan is tracking progress towards goals, noting what went right, what went wrong, and using the difference between the plan and reality to manage better.

Businesses are dynamic; they change and grow. The company’s original business plan needs to be revised as new goals are set. Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company’s growth should take.

A business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is not viable, freeing you to move on to new and better ideas.

A business plan helps you to:

  1. Predict and plan your business finances in detail over the next 12 months, and in outline for perhaps 3 years
  2. Clearly layout the milestones that are necessary to the success of your business
  3. Better understand your customers and improve the positioning of your offering
  4. Understand the timings and levels of resources you will need to provide for future activity
  5. Run a smoother business with fewer unforeseen problems
  6. Provide a road map from which to operate, and to look to for direction in times of doubt
  7. Test and analyse the validity of historically accepted assumptions
  8. Assess the feasibility of future ventures – reduce the risk of pursuing the wrong opportunity, or compare a number of opportunities
  9. Present the formal plan to support financial proposals to investors
  10. Share your strategy, priorities, and specific action points with all stakeholders, which could include family

Writing a business plan is time-consuming, but it’s essential if you want to have clarity and a successful business, by design.

If your business doesn’t have one, maybe it’s time to start working on one. The process of writing a business plan can do wonders to clarify where you’ve come from, where you are now, and where you’re going given the path you’re on – and if you don’t like it – change it!

Think about the time, money and hard work as an investment in the future of your business and you know it will not be wasted effort.

Make it a priority to have this crucial road map of your business.

Is your sales team performing?

October 13th, 2010

Are you hitting your sales forecast?

Do you have a sales strategy?

These are just a few of the sales issues facing businesses today.  The success of any business is very much dependent on generating revenue through their products or services in the market place.

Are your sales people using some of the following key elements to sales success?

  • Promoting benefits, not features of your product or service
  • Being clear on your sales proposition and your unique selling points
  • Planning the sales meeting beforehand
  • Understanding the customer need and where they are in their “buying cycle”
  • Listening more than speaking
  • Being open minded, not defensive and welcoming objections
  • Working to sales targets

If you are the person responsible for sales in your business, maybe you should consider the following:

  • How do you motivate your sales team?
  • Can your sales people sell?
  • Are the sales targets in place and are they being achieved?
  • Are you getting a return on the investment for your sales channels?
  • Is your sales team being managed effectively?

Sales, is really revenue generation and essential for any business to survive.

My 10 biggest competitors.

October 9th, 2010

Working as a professional business advisor, you may be forgiven for thinking that my main competitors would be other advisors or consultants. But no, it’s actually the companies that need my type of help that are the ‘competition’ – preventing themselves from getting the help they need – and making their lives tougher as a result. Here are the top 10 comments I hear.

1. “Haven’t got time for that – I’ve got too many fires to fight!”
Fire fighting can make you feel useful and needed, and can become addictive. Too much is a sign that your business is out of control, and I can guarantee that your business performance will be suffering as a result.

2. ‘What difference could an outsider possibly make to my business?”
Quite a lot actually! You’re likely to be ‘too close’ to your business. An outside view, from an objective expert who can take an overview of your whole business is likely to result in rapid and far reaching benefits for you. I’ve helped a number of businesses where the owners were originally convinced that no-one from outside could help.

3. “I’ve resigned myself to live with the problems – I’ve lowered my expectations and given up on my original dreams – I guess there was no alternative.”
This is working on the ‘If you can’t change the problem, change the way you think about it’ approach, and is a natural human reaction to preserve your sanity! But don’t write your dreams off yet – get an impartial view from a business professional who has probably encountered most of the difficulties you face.

4. “1 know I don’t really understand this, but I’ll have a go an hope for the best, as I don’t want to spend money unnecessarily.”
You may be tempted to think “How difficult can this be?” You a the expert in your field – this is what you enjoy and do best, and where your time and effort should be spent Be smart and bring in expert help to support you in the other areas where you feel less comfortable. Likewise, where I support clients, I can coordinate what is best for their business as a whole, and won’t hesitate to bring in other experts known to me when I feel the client will be better served.

5. “I know I should do something about this, but I really can be bothered.”
Some areas of your business are just not going to inspire you – even when you know they’re important!
Understand your situation and suggest the benefits you may gain by taking action versus the likely results of carrying on as you are. The choice is then yours. I can arrange for experts (who enjoy these areas that you don’t) to take care of these for you. Some clients want me to hold them to account as this can give them the gentle nudge they need, and the structure they want.

6. “It’s just not the right time to do anything about this.”
There will always be circumstances that you can use to justify to yourself why, now is not the time to finally sort your problems out.
When is the best time to plant a tree? Answer: 20 years ago. When ifs the second best time to plant a tree? Answer: Now!

7. “Problems, what problems? It’s just a temporary blip.”

This is the most dangerous place for your business to be and is characterized by: Finger-pointing; “problems are temporary”; “ifs someone else’s fault”; “our business is different. Often there is an irrational attempt to be optimistic, or to look for comforting data. You need an external influence to bring realism and help lift you out of this ‘den of denial’.

8. “I know I need help, but what would others say about me bringing in outside help.”
You are an expert in your field — which has made you successful. But no one person can be expected to have all the expertise to solve all the problems you’re likely to encounter in running a successful business. I’m not an expert in everything either – but I am an expert in taking an overview on what needs to happen in a business, and I make it my business to be in touch with experts in every field that you may need. People will not think less of you for bringing in support – they will quickly realise your wisdom in sourcing the right solution – making your business better!

9. “I realise that I could probably make or save five times my investment, but it’s still spending money isn’t it?”
There are times in life when you have to ’spend money to make money’ – think of it as an investment with a good likely rate of return. In most cases, it will actually cost you more money, yes – MORE money, NOT to use my services. It’s a bit like having a leaking roof which needs to be fixed – and if you ignore it – the damage will spread and be much costlier to put right later on!

10. “This is really hurting now, and I can’t see a way out — my options seem to be disappearing — only to be faced by options that I like even less!”
If this is where your business is now, or if you realise this is the path you are on – you need to get professional help now. This will not improve without the right help; you don’t need to suffer alone. Even just talking to someone will help the way you may be feeling.

If you want to get ahead, get a mentor!

October 4th, 2010

Imagine for a moment: 3 years on from reading this post, the circumstances you find yourself in, will be without doubt, the result of the actions you’ve taken; the lessons you’ve learned; and the people you choose to surround yourself with …

… in running a business, you need someone to bounce ideas off; to point you in the right direction; to help you focus on the important issues, to be your confidential ’sounding board’ – to support and motivate you through the stressful and challenging times; and to help you achieve your business goals.

A good mentor can make the difference between average results and outstanding results. It’s well documented that most successful people throughout history have had mentors.

Hopefully, after reading this article you’ll be inspired to put some kind of mentoring arrangement into your life. Then you’ll begin to see your ideas & dreams come to life, your business gain a major competitive advantage and feel more satisfied and better rewarded for your efforts!

So, what is a mentor?

Webster’s dictionary defines a mentor as: “An experienced and trusted friend and prudent adviser.”

The mentor shares their knowledge, experience & wisdom with you. Your mentor won’t tell you what to do, but will support and encourage you to create your own results, and hold you accountable for achieving your goals.

A mentor is someone you can trust and be open with to discuss your progress, evaluate options, set goals, and generally work through any issues you may meet along the way.

What would a good mentor do for me?

  • Challenge you, and expand your thinking
  • Listen, and motivate you to reach your full potential
  • Help you refine your ideas into practice and offer other ideas that perhaps you hadn’t considered
  • Your mentor may have contacts that you don’t, and can ‘open doors’ by introducing you to contacts who can help
  • Help you in areas such as goal setting, time management, resolving conflicts, and developing new skills
  • Help you to identify and work with your strengths and weaknesses
  • See the wider picture – encouraging you to achieve a reasonable work/life balance

What other benefits can I expect from mentoring?

  • Direction in helping you to move from where you are now
  • Solve current issues or inject new ideas and thinking
  • Learn from someone else’s experience and mistakes
  • Grow and learn in a safe environment where you can ask questions without fear of ridicule or reprisal
  • Clarity in seeing and working on what is actually important to you and your business
  • Improve your relationships through a better understanding of yourself and the impact you have on others
  • Enjoy an increase in your confidence & self-esteem

One person who has benefited from mentoring said …

“It was a place to take those tricky questions that plagued me In the middle of the night.”

Does that sound familiar?

How do you find the right mentor?”

Perhaps the toughest part of mentoring is finding a suitable mentor in the first place! Your mentor must be mature and wise, professionally competent, skilful with people, and trustworthy. Here are seven tips to consider when choosing a mentor. Your mentor should:

  1. Have the skills needed to mentor – to listen, share, question, analyse, encourage, advise, and challenge
  2. Offer you independent, unbiased advice and views
  3. Have enough time to give to the relationship (the flip side of this is, you must be able to do the same!)
  4. Have a positive outlook on life and a desire to learn and be challenged just like you
  5. Be committed to helping others develop
  6. Have the right expertise, experience, contacts, and knowledge so as to be able to speak into your situation
  7. Have information and contacts that you could benefit from

It’s also wise to avoid mentors within your own reporting chain or with those you already have a close personal relationship.



Thinking of starting, or new to, business?

October 1st, 2010

What’s required?  Most business starting out would (should) go through most of the following steps in some form or another.

Step 1…Be really clear on the reasons why you want to start a business, can you afford it?  Are you the right sort of person to be running a business?  Do you have skills required to do what you propose to do?

Step 2…Research the market.  Make sure there is a need for what you propose to sell or do and how you might compete and attract clients / customers.

Step 3…Check business rights and responsibilities, identify licences if required and are there any restrictions applying to the business you propose to be doing?

Step 4…Commit everything to a plan, as a well thought out business plan can be critical not only to raising finance but also for you to really assess your idea.

Step 5…Get professional advice from an accountant or suitably qualified advisor re: Start up and continuing costs. Develop cash flow projection, breakeven & tax liabilities.  In other words make sure you know what’s required and you have the resources to manage this.

Step 6…Determine best legal structure for your business and register with appropriate authorities (ASIC, Fair Trading etc.).

Step 7…If capital is required, talk to bank and advisers as to options. As with step 4 have a well formed business plan to be able to clearly explain how you will progress and be able to repay any loans.

Step 8… Establish what resources you might need to support your business and how you might engage or add these to your business (bookkeeping, marketing, etc.).

Step 9…If it all lines up and is a go – set up banking, accounting and management systems. With a lack of or poor systems to run the business, failure rates are much higher.

Step 10… If employing staff (if a company – you would be an employee), register with ATO, get award information, start superannuation, workers comp etc. and be aware of your responsibilities re: fair work Australia.

Step 11… Commit, Focus and Persist.  Running your own business is exciting but at the same time can be daunting.

Step 12…. Make sure you have a good support structure around you, being a business owner can be tough and lonely.

Step 13…Make sure you have milestones and you measure progress against these to make sure you’re heading in the right direction and can / know how to correct when necessary.

Step 14… Have fun, don’t forget to enjoy the ride and remember success is not final and nor is failure fatal.

Potential realised or doing what you’re meant to do.

September 24th, 2010

Near where I live is an old abandoned, derelict house I pass from time to time and being spring everything is in bloom and this old house is no exception.  In an overgrown and neglected garden that probably hasn’t seen any attention in the last few years are the most beautiful azalea shrubs (bushes now I suppose) in full bloom.


Doing what we're meant to do

These flowers haven’t let their surroundings, a lack of attention or care stop them from doing what they were meant to do – they are azalea flowers and it’s spring so time to blossom and they’re doing it in all their splendour.  Makes me draw the parallel – what do we let get in our way that stops us from reaching our potential or doing what we were meant to do.

How often do we blame what’s around us or a lack of attention or a lack of time for not doing what we set out to do or really want to do?

Who should you take advice from?

July 8th, 2010

I’ve recently been referred to a potential client that before we’d set an appointment wanted to speak to clients I have done something similar for and this strange request (strange because it was before we met – quite normal after we meet) made me think. If I was looking for someone to do some work for me I’d normally want similar comfort, wouldn’t you?

When looking at someone to help you and your business, shouldn’t they have some of the things they are offering in place in their own businesses? Walking the talk as they say. In my case – Business planning, shouldn’t they have one? Profitable, shouldn’t they be? Marketing, how do they do it and are they successful? Giving advice about business, shouldn’t they have a good track record of running successful businesses over more than a year or two?

There are many great sources of help for your business out there to help in areas that aren’t your core skill but make sure those offering you something are able to demonstrate it clearly in their own areas too.