Hidden Costs Of Poor Business Management

As they say, if a business is not growing it is dying. Business growth is always the aim for the entrepreneur but often you can find yourself in a plateau that is difficult to pull yourself out of. As you go about the day to day of management of your business, you will see the things that you’re spending money on, the performance of your staff, customer responses, and engagement to advertising.

Often we measure what IS happening in our business but we overlook what IS not happening. If you don’t manage your human operations well, you may find yourself off the beaten track of business growth. There will be five key things that you won’t be seeing in your business:

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CUSTOMERS

The first thing you won’t be seeing is returning customers, which is a devastating hidden cost for the business owner seeking growth. If you don’t have systems in place to guarantee that your customers will experience an overwhelmingly positive experience every single time, you may well find that many simply won’t come back. You will miss out on their business, their referrals, their testimonials and their rave reviews. If you are trading online you will also pay the price with Google when you lose their visits to your website.

CASHFLOW

A decline in customers will of course lead declining revenue, and if you mix this challenge with poorly managed expenses you could land yourself in hot water with your cashflow. Poor management is expensive. If you’re running too much stock, too many staff, exorbitantly expensive advertising or training, or if you or your team are doing poorly with controlling regular the costs overheads, you’ll find cash flow will take a nosedive, and you will miss out on the profitable cash flow you need to grow your business.

REPUTATION

Your reputation is everything in business. So a decline in customers won’t only mean declining revenue and referrals, it will also open up the risk of them creating quite a nasty reputation for you in negative reviews and feedback online. Good news spreads fast, but bad news spreads like wildfire. You need to ensure you get the referrals and the testimonials you need to thrive, which will always come down to how you train your staff, how you delivering your products and services, and how you follow up to nurture your precious customers.

STAFF

You’ll find the next hidden cost of poor business management in your staffing. The investment most business owners make into their staff recruitment, onboarding, and management is often one of the biggest costs on the balance sheet. You need systems to facilitate a positive experience for them professionally, socially and emotionally, or you may find yourself spending too much money on training, wages or ongoing maintenance. If your staff are not productive and efficient, they will cost you too much in time and money.

TIME

The last hidden cost of poor business management is found in your time, and the time of the people in your team. Inefficiencies are expensive because all those tiny little micro-moments lost in poor management add up. You might explore how much time is lost in your business because people don’t know what to do, they can’t find what they need, or they stall over a cuppa or conversation because they’re not really motivated. That cost of time takes its toll, and it’s certainly a cost of poor management that most people simply don’t count.

Every business owner wants to deliver a really happy, wonderful, reliable experience for their staff and customers alike, where you’re solving problems and exceeding expectations You want to earn great word of mouth feedback to go out into the community for referrals and testimonials and it takes great systems to achieve that. When systems are bedded down and clear for everyone, you will be able to nail those goals every single time.

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If this article has struck a chord with you, please go right ahead and message me. I would love to hear more about what you do, and how I might be able to help you transform your business into the Freedom Machine you have wanted all along. Let’s establish a proven system in your business to create team certainty and sustainable expansion which open pathways to the lifestyle choices you’ve worked so hard for. No matter where you are, I am only a message away.

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Where To Start With Creating A Happy Productive Workplace

In this day and age, it’s more important than ever for businesses to have happy and productive employees. When employees are loyal and engaged in the company, profits are higher. On the other hand, when people feel unmotivated or not appreciated, the business suffers.

 

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“To win in the marketplace you must first win in the workplace.” – Doug Conant, CEO of Campbell’s Soup

Studies show that engaged employees miss less work, perform better, and are more supportive of changes and willing to make them happen. But keeping employees happy is hard work. Why? Because happiness is, primarily, an inside job. In other words, happiness comes from within a person. However, friends, family and employment can add to or detract from someone’s happiness. So if the workplace is stressful or unfavourable things are happening, productivity goes down.

 

Take a look at your role as a business owner in getting the most out of your staff. Ideally, you should be creating a conducive workplace where people are performing at their peak consistently. The way you set them up to achieve this outcome will give a massive difference in terms of their ability to actually make it. As a business owner, training and managing your staff is actually about a personal goal of managing yourself.

 

Here are 5 key areas that you can elevate in your own life to see them reflected back in your team:

 

TIME MANAGEMENT: It is important that you manage your time. As a workplace leader, your employees are likely looking to you as an example for someone who has good time management. It’s important that you show up on time and you leave on time, and every minute of that workday is invested into high quality of productive effective work. Aside from achieving more with well-managed time, you are also setting a good example to your staff to get more tasks done effectively and efficiently.

 

HEALTH AND WELL-BEING: It is important that you take care of your health and well being. Overall good health and wellbeing will give you the energy to run your business and the right head space to make good decisions. Staying in contact and spending quality time with business colleagues, friends and family will help build your support network, generate the flow of ideas and improve your overall happiness and sense of wellbeing. So as your body will serve you, you get the most out of every day, and then you can lead your team with vitality and convey the passion that you’ve got for your business.

 

MINDSET:  Another aspect of your life to elevate to create a happy and productive workplace is your mindset. Great leaders don’t “demand” excellence. That’s already established by the example they set. Put yourself in an employee’s shoes. When you work for a true leader, you know the bar is set high and big things are expected – every day.  Set goals to keep you focused and out of ruts and push for continuous learning to keep you sharp. This way, your staff is inspired to excel in their craft as well.

 

RESOURCES: You need to be really careful with managing your own life so that it reflects well in managing your resources. Every single part of the resource that you have needs to be looked after and invested into well and you need to make sure that they are maintained and care for. There’s no point complaining about staff not caring about your resources like not properly handling equipment or about high-cost overhead in your business if you’re not being frugal and shrewd with how you manage your resources yourself.

 

RELATIONSHIPS: And finally, the last thing you need to be able to manage really well is your relationships. It is vital that you take care of nurturing positive healthy relationships across every domain of your life. Whether this is with your staff or the leaders in your business, or whether this is with your own personal friends and family, if you have great skills to develop highly-rewarding and valuable relationships, this will then reflect down into the company culture that you are developing. There is no point in complaining about staff that don’t support each other or staff that are not collegial and united if you yourself are not taking the lead in this. Manage your own relationships knowing that this will set the pace for the culture that you’re building for your company.

 

By manifesting how you want your staff to perform in the workplace, you are setting a great example that will ultimately lead to the achievement of your goals as well as leading a happy and productive workforce.

 

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If this article has struck a chord with you, please go right ahead and message me. I would love to hear more about what you do, and how I might be able to help you transform your business into the Freedom Machine you have wanted all along. Let’s establish a proven system in your business to create team certainty and sustainable expansion which open pathways to the lifestyle choices you’ve worked so hard for. No matter where you are, I am only a message away. And to make stalking me really easy, here is my website 😀 https://www.kerryannenelson.com/