Month: November 2021

One of the best yet challenging aspects of running a small business is when it starts to grow. When it gets to the point where you feel you can no longer manage on your own. Hiring employees is expensive, and often, small businesses do not have it in their budget. Small business outsourcing can be an excellent choice for those who want to take it to the next level without overstretching their budget as they grow.

What is outsourcing?

Hiring external professionals is an excellent way to get the help you need without having the expense and legal obligations of a permanent employee. When you outsource, it means that instead of hiring internal employees, you can hire an individual or team of experts to take care of the everyday functions of running your business. This allows you to focus on what you do best and have a team of experts, too.

Types of services to outsource

When starting your business, you wear many different hats. As the business grows, it becomes difficult to do everything yourself, and you’re more than likely to handle tasks that are outside your area of expertise. Here are some of the daily functions that you could outsource an expert for in the future.

• Admin

The idea of hiring an external admin has been around for decades with the advent of temporary agencies. Now, you can hire an admin who can do many of the day-to-day tasks, like recordkeeping and data entry online. Hiring a virtual assistant is the new way to have the help you need only a mouse click away.

• Finance /Accounting

Finance and accounting are other areas that are often one of the first to be outsourced. It is a time-consuming activity, and even if you can do it yourself, there are many reasons why you might want to outsource it instead like tax thresholds, allowances and deduction regulations.

• Payroll

Payroll is another one that falls into a similar category as finance and accounting. During the initial growth period, you might not have a a lot of staff, so it doesn’t make sense to have a full-time regular payroll employee until you grow and have sufficient staff to make it worthwhile. You can outsource the task and only have to pay for a few hours a week.

• Marketing

Even in the early stages, hiring a marketing professional is worthwhile because unless you are a marketer yourself, it is a specialised field. You want to make the most of your advertising budget, and this is where the experience of a marketer can be a wise decision. They know how to reach your target audience with the right message to increase revenue.

Benefits of outsourcing 

If you are finding yourself constantly working long days or you think that it might be time to focus your own efforts on the core business, here are the benefits you could have from outsourcing. 

1. Efficiency

Time is a valuable resource. Firms that provide specialised services can often get the job done more quickly and efficiently. When you consider that every hour you send on a task outside the core area of your business is money not spent focusing on growing the business, the costs of hiring a contractor can be much cheaper.

2. Focus on your business

One of the main components of growing your business is that you need to spend as much time as possible focusing on your core products and services. Outsourcing certain tasks gives you the ability to do that without the expense of full-time employees.

3. Skilled professionals

The best part about hiring an external specialist is that you can benefit from industry skills in an area, while still managing to keep costs low. This is the perfect balance for the small business that needs to grow proportionally to its revenues. You can start small and scale up as needed.

4. Business growth

On average, hiring an external contractor saves small businesses 30-50% over hiring a full-time staff. This is money that you can use to put back into growing your business.

Hiring a contractor offers excellent opportunities for small business growth. It allows you to use your resources efficiently and have expert knowledge at your beck and call. If you are thinking about taking your small business to the next level, outsourcing is something you should consider.

When to outsource

One of the biggest questions that small business owners have is when they should begin outsourcing. There comes a time in every business owner’s journey when they simply do not have enough hours in the day to do everything that needs to be done. At the same time, many are reluctant to give up control, handing over certain daily operations to someone else.

Every business is different. You need to weigh the benefits and costs when you are thinking about outsourcing. 

Small business burnout is something that no one tells you about when you first start your business. Everyone is enthusiastic in the beginning, but many small business owners eventually find themselves losing motivation and the energy that they had in the beginning. Let’s explore this phenomenon and some strategies to help you get over it and back on track with creating your dreams.

What is small business burnout?

It’s normal to experience it throughout your small business journey. It’s possible to love your business and still experience burnout at the same time. The circumstances that lead to burnout are many, but they all have a few symptoms in common.

What are the symptoms of small business burnout?

The first step is to recognise the symptoms. Here are 6 common signs that you may be experiencing small business burnout.

• Fatigue or exhaustion
• Lack of motivation
• Procrastination
• Little passion or excitement for weekdays
• Lack of creativity or enthusiasm
• Clashing with colleagues 

10 ways to avoid small business burnout

The good news is that there are ways that you can avoid burnout, or if you have it already, get back on the road to small business success.

1. Prioritise

The first thing you need to do is set priorities. As a small business owner, everything is on your shoulders, or at least you feel like it is. Many productivity gurus will tell you to decide on one priority to get done each day. You can allow yourself up to three priorities, but you must decide which one is the most important. This will allow you to have focus and separate high priority from lower priority tasks.

2.Organisation

Organisation follows priority setting. It is easy to look at the entire to-do list and want to see it all gone at once, but it’s just not feasible nor realistic. Instead, divide your project into phases and small tasks that go along with each phase. Sometimes seeing it as a series of small, achievable steps can free you from overwhelming feelings and allow great productivity.

3. Allocate free time and work time

Free time and downtime are also a priority. Our brains are not machines and are not built to run 24/7. They are designed to have work periods and rest periods, and this means time away from work physically and mentally. Try setting alarms in your phone to remind yourself to rest after a certain point in the day.

4. Delegate or outsource

Small business owners need to learn to delegate or outsource certain tasks. This frees up your time so that you can spend more time being an effective leader for your business.

5. Take holidays and breaks

This goes along with allocating free time. Everyone needs a holiday and time to reset the mind and body. You’ll find that you’re much more productive when you return and you and your family will be all the better for it.

6. Identify and avoid stress triggers

Knowing what causes you stress is the first step to handling these situations when they arise. If there’s a certain situation or person that makes you feel stressed, the best thing you can do is to recognise it and plan a coping strategy to help you get through it the next time.

7. Say no

Knowing when to say no is the simplest way to avoid burnout. It’s a skill that you should learn to practice starting if you want to maintain a healthy work and life balance.

8. Celebrate your achievements

Sometimes, it is easy to get caught up in all of the things we haven’t done yet and to over analyse our failures but not our successes. It’s important to take time to reflect and celebrate your achievements and reflect on your progress

9. Bond with colleagues

The key to building a great team is to plan bonding activities outside of work with your teammates. Friendships mean a great deal when it comes to looking forward to going to work and having a support system when you get there.

10.Don’t forget your wellbeing

Personal wellbeing is usually the first thing to go out the window when you are busy. The power of a good nights rest coupled with healthy food and regular fitness activities can really help to avoid burnout.  

Now you know what burnout looks like and some of the ways that you can prevent it. Taking care of yourself both physically and mentally should be a priority on your agenda every day. Taking time for yourself is the best way to keep the creativity flowing and be the most productive during your working time.

Knowing how to increase cash flow is one of the most challenging aspects of running a small business, and mastering it is the key to long-term success. Many businesses fail in their first few years, and one of the main reasons for these failures is cash flow problems. Fortunately, many tools and techniques are available to help small businesses manage cash flow and achieve success. Let’s explore these tips and tools.

What is cash flow and why is it so important?

Managing cash flow in your business is similar to managing your household budget. Although managing cash flow in your business is more complicated, the principle is the same. You need to generate enough cash to pay your bills and obligations. You also want to have a little leftover to enjoy or reinvest in your business growth. If you don’t manage your cash flow, your business could struggle to stay afloat.

Top 6 methods for increasing cash flow

The concept of cash flow is simple, but putting it into practice can be complicated. Here are a few of the things you need to consider and explore to make your business a success.

1. Create a cash flow forecast

Forecasting is important for managing cash flow. Knowing your upcoming expenses means that you have time to adjust and ensure money is there when you need it. There are software and apps which can help make this process simpler.  You can choose something that only focuses on cash flow, like Xero, or a solution that provides integration and other functionality, like Float or Fluidly. 

2. Expand payment options

Another way to increase your cash flow is to expand the number of ways that you can receive payment. Having a single form of payment, like PayPal, could limit the number of people who can purchase your services. Try adding other electronic payment methods like Square, which allows you to collect funds immediately after providing a service. Afterpay is another popular option that allows your customers to make 4 partial scheduled payments for your service.  

3. Update service prices to reflect the current market

 Be on the lookout for market changes and what your competitors are charging. If your services are underpriced or overpriced, this could impact the cash you have available. Adopting this strategy doesn’t mean that you have to change your prices every time your competitors do, but it is important to price accordingly.

4. Customer Relationship Management (CRM) Software

It can be hard to keep track of customers’ data, invoices and payments Fortunately, there is plenty of CRM software available that allows you to simplify and automate the process. You can use it to capture contact details, store data, send automated messages, invoices and follow-ups after a service.

5. Consider current assets

If you should ever find yourself in a moment of low cash flow, you could look into selling any unused machinery or equipment. Equipment that is sitting around and not being used is a liability that could be quickly turned into liquidity.

6. Consider tax time

Everything you do, whether it is making a purchase or making a profit, will have an impact when it comes to filing your end-of-year taxes.  It’s important to keep a record so you can take off the deductions that you are allowed. Knowing what taxes you will owe also helps you predict what you need to have set aside. The most important thing is to be prepared so you do not get caught at the end of the year with an unexpected tax bill.

Helpful cashflow programs 

Here is a few popular cash flow management software to help automate and simplify processes for small business owners.

• Xero

Xero accounting software is an online solution that allows you to pay bills, claim expenses, connect to your bank, accept payments, and reconcile your bank statements.

• Float

Float gives you resources that include cash flow management tools, planning tools, and scheduling software.

• Futrli

Futrli is powerful forecasting software that helps you make better business decisions. It helps you predict sales, expenses, and profits.

• Fluidly

Fluidly automates forecasting and presents the information in graphs and charts that are easy to understand. This software gives you the information that makes business decision-making seamless and easy to see your options.

Managing cash flow is one of the most important skills that you can learn as a small business owner. Fortunately, there are now tools available that make it easy. Knowing how to increase cash flow in small business management is the best way to create a successful enterprise in the future.