What To Consider When Moving To A Home Office

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StrategyDriven Entrepreneurship Article |Home Office|What To Consider When Moving To A Home Office There are many appealing reasons to work from home when you run a business, and just because you initially chose to run the business from an office elsewhere, that doesn’t mean that you can’t come home if you want to. In fact, since it can save you money and make you more productive, it is something that many business owners are thinking about.

What will you need to consider if you decide to move your business to a home office rather than an external one? At first, you might not think there is much to consider at all, but when you start to work out how to get it done, you’ll realize there are a number of things to take into account.

Is There Room?

Moving from a reasonably sized office space to a home office could be difficult due to the space needed. If you look at what space you have available now, and what space will be available when you move home, is there much difference? If not then this point won’t be something that needs to concern you, but if the room you intend to use at home is much smaller, you will have to work out where everything will go.

Something that can work well is searching for The Lock Up Self Storage near you and putting some of your files and documents or even equipment in there until you have organized your workspace correctly. That way you won’t be delayed and neither will you be cramped.

Is There Somewhere To Go?

As well as knowing that you have the physical space you need, do you have a room that can be used properly as an office? Moving from an external office building to a home office can be quite an adjustment. You need to ensure that you have enough space to work, simply sitting to the kitchen table or in the corner of your bedroom is not a good alternative option to an office. It will be difficult to concentrate, and you might not be as productive as you would be if you had a dedicated room.

Where Will Guests Go?

Not everyone is going to be comfortable with visitors to the business coming to a home address. Although working from home is something that many people do, there is still something of a stigma when it comes to having meetings with colleagues, suppliers, or clients.

Where, then, will you have these meetings if not in your home office? Where is the nearest appropriate space you can use? You can choose to hire a dedicated office space with a meeting room, or you could go to a café or coffee shop, for example.

The Physical Move

Finally, even if everything else is organized and you are sure you are ready to move offices, how are you going to do it? Will you need a specialist mover to bring items to you, or could you hire a van and do it yourself? How long will it take and what kind of disruption will it bring to your business?

This is certainly something that will need to be considered as picking the right time to move is just as important as moving in the first place – using up vacation time or a weekend could work better than midweek, depending on your line of business.

Portable Office Buildings Provide Everything a Business Needs

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StrategyDriven Entrepreneurship Article |Portable Office|Portable Office Buildings Provide Everything a Business NeedsBy their very nature, businesses are unpredictable, as a sudden demand for a product or service could arise, thus calling for a quick response. Maybe you run a hotel and there will be an event in the city where the hotel is based, for example a conference, and you have two weeks to a month to prepare for the big business of conference facilities and other services. Also, you could be in a field that necessitates constant relocation, for example the construction business, and you need an office onsite. Such situations can be sorted out by making use of portable office buildings.

Here are various types of portable office buildings depending on your space restrictions and needs:

In-plant office space

There are several businesses that have an already established plant for manufacturing or a huge warehouse, but they may need some office space. Instead of considering putting up a conventional, permanent office that may be a bit costly, it would be better to consider having portable office buildings, which are quick to build and will save on costs. Pre-fab modular office solutions can offer world-class offices—be they for industrial or commercial set-ups—in record time.

Storied offices

Space in urban or commercial areas is so scarce and can thus cost an arm and a leg. If a business intends to make the most of its limited floor space, a two-story office structure or any other multi-level structure that employs portable office buildings is a nice idea. They are designed to be strong, stable, and appealing to the eyes while still meeting all the needs of an office space.

Movable offices

Some businesses—like construction, mining, and data collection—involve constant office relocation. In such cases, it is best to have movable office buildings that allow easy relocation without damaging the materials. Such businesses can save a lot on renting office spaces in every area where they work. They should acquire the most cost-effective and easiest-to-implement solution by buying portable office buildings from reliable service providers, such as Smart Space Buildings.

Mezzanine office

Does your work area have high ceilings and thus lots of space that could be put to good use, therefore adding extra square feet without losing the current floor space? Well, you can consider using a portable office building system to put up a mezzanine office and thus create more space for conferences, offices, break rooms, and even storage.

Temporary sales office

Your business may need to put up a short-term sales office or a retail outlet to meet prospective customers, and to do so in a presentable way. The best solution is to set up a portable office building, which could even come with ticket booths that are easy to assemble, thus helping to manage the traffic.

Conclusion

Portable office buildings offer all the solutions for office space, storage, and any space-related need that businesses face. They are quick to put up, cost-effective, easy to move, and offer high-quality solutions. Also, they can enable businesses to have offices offsite and in remote places.

The Hidden Gem in Family Business Meetings

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StrategyDriven Entrepreneurship Article |Communication|The Hidden Gem in Family Business MeetingsI present to a variety of audiences around the country — university-based, family business centers, industry groups and professional groups. Invariably I’m asked, “What’s the one thing a family business should do to be successful?” I always respond that good communication is the most important thing to achieve, and family business meetings are the best way to achieve that. There are the obvious benefits, but there’s another incredibly valuable but hidden benefit you probably don’t know about.

First, let’s discuss communication. With good communication, family businesses can make it, and with bad communication they fail. Why? Businesses is about making a profit. The one who sells the most for the lowest cost, is better than the competitors, keeps all dealings within the boundaries of the law and keeps customers happy wins. And, everyone in the business wins. It’s a blend of hierarchy and teamwork, with everyone marching to the same objectives.

Families are about unconditional love and support. What happens when you throw a bunch of family members into a business environment? Conflicting feelings can crop up everywhere. Family members get their feelings hurt when they’re reprimanded or held accountable. So other family members will hold back their true thoughts in order not to create hurt feelings. Until they blow up.

A good system of communication fosters an environment where business issues can be stated to family members without feelings getting hurt.

Family business meetings are a great way to accomplish good communication. At the start of each of my presentations, I say to audience members: “Before we start, I’d like to ask everyone to pull out your phones and go to your calendar, then create a meeting at the beginning of the next quarter for one hour. Call it ‘Family Business Meeting,’ and have it repeat every quarter, forever. And when you’re done, please silence your phones.” People always ask what they’re supposed to talk about at a family business meeting, and I tell them to start every meeting with the same statement: “We are a family in business together, and that’s a hard thing to do. What are some of the things we need to talk about in order to run the business well and make sure the family is in harmony?” The rest will mostly take care of itself.

By doing this, these natural questions will come up:

  • How do other family businesses do it?
  • When is dad retiring?
  • Who’s going to lead the business in the future?
  • How do we get paid?
  • How will ownership be divided?
  • How do we deal with a family member who’s not performing at work?
  • Do we need a buy/sell agreement?

This is all really good stuff. If you’re meeting every 90 days for at least 60 minutes to talk about family business issues, you’ll be uncovering the important questions and be able to work on them over time to a mutually agreeable resolution. Remember, these are family business meetings, not business meetings or family meetings.

Huge potential benefits may also be gained from family business meetings in which you invite the whole family. Here’s the reason: In order to live your life, you must work to make money to have food and shelter, pay bills and so on. You may also get a sense of accomplishment though your work. However, when you’re faced with life questions or big decisions, or find yourself at a crossroads in life, who do you turn to? Typically it’s a family member — a parent, a sibling or your spouse. Now why would you want to bring another family member without any ownership into the family business meeting? The reason is that they’ve heard about what’s going on in the business for quite some time and have a clear perspective of how the other family members feel.

Imagine a family business with a father, two sons and a daughter. Imagine them meeting. Now imagine a family business meeting with the mother, spouses of the three kids and the fourth sibling who doesn’t work in the business. And now ask the question: “What are the things we need to be talking about and working on to have a good business and harmonious family?” By getting the perspective of the family members who don’t work in the business, the information can take you to places you never realized. It will also give you much greater insight into the unvoiced thoughts and perspectives of the family members who do work in the business.

Bringing all family members — including those who don’t work in the business — into a family business meeting one or two times each year can help uncover thoughts, concerns and perspectives of which you were previously and completely unaware. With this added information, you can ensure that you’re on the right track moving forward to continue building a healthy business and a happy family.

About the Author

Henry Hutcheson has 25 years of experience in business management and global family business consulting across a range of industries, and is a veteran of a family business himself. He is a frequent corporate and university speaker, as well as a columnist and writer for the News & Observer, Charlotte Observer, Nursery Retailer, The State, and Family Business Magazine.He has been quoted in the Wall Street Journal, Crain’s, and other business and trade magazines. His new book is Dirty Little Secrets of Family Business (3rd edition): Ensuring Success from One Generation to the Next. Learn more at www.familybusinessusa.com

5 Mistakes New College Grads Make as They Enter Entrepreneurship

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StrategyDriven Entrepreneurship Article | 5 Mistakes New College Grads Make as They Enter EntrepreneurshipIt’s that time of year again. Thousands of qualified college graduates are getting set to enter the workforce. They were promised that their hard work and diligence will earn them an attractive job and a high chance of success. With ambition, motivation, and dreams, scores of young men and women will forge their way into the business world. Some of them have lofty goals of entrepreneurship. Many are under the impression that whatever works for high profile examples of successful leaders in business will also work for them. Public information and theory are often misleading, and so is attempting to imitate another company’s or leader’s blueprint. According to some experts, new college graduates often make five brutal mistakes as they try to navigate their own potential new enterprise.

1. Recent college graduates think they know a lot more than they do upon graduation. Implementation is different to theory and ideas, so you need to be able to bring operational performance and many other skills to the table. Knowledge is one thing, but true execution will provide the experience you really need.

2. Many do not understand how funding works and the capitol needed in the initial phases of a business. Inexperienced people are misled when it comes to startup funding and what is needed to begin and grow a business. Often young founders don’t think about basic concepts like unit economics, which is selling something for more than what it costs to make. Even some very well funded startups tend to ignore this.

3. Raising funds does not equal success. Many young entrepreneurs are focused on the superficial belief that the more money they raise, the more successful their business is going to be. While it’s true that, everything else being equal, having more money to spend on your business is good, there is a lot more to it than that simple formula. Plenty of businesses fail because they raised too much money and it encouraged them to do things that didn’t make sense. Many other businesses fail because they raised money that they believed would fund all of their dreams of growth, but it wasn’t nearly enough. Other businesses fail because they raise the wrong kind of money, such as debt they can’t repay on time or equity that causes them to lose control of their business.

4. Inexperienced founders often overestimate their own importance and don’t appreciate the importance of the team they build around them. It is not easy to find skilled people who also happen to be a good fit for the culture and mission of your enterprise. This takes a lot more time, effort, and trial and error than many founders realize if they haven’t done it before. You need a great team to build a great team. But that the classic chicken and egg problem you have to solve. You have to be careful, and realize you will make mistakes, about who you hire early in the life of your company. Only offer substantial equity and responsibility to those who have proven themselves. Recognize your hiring mistakes and correct them quickly. Teams often don’t rise to the level of their best people. They often sink to the level of their worst people. Keep that in mind as you build your company.

5. Know and own your limitations. Young innovators especially, though it applies even to more experienced entrepreneurs, tend to lack self-awareness of their own weaknesses. These blind spots can be disastrous. Most highly successful people understand their weaknesses and surround themselves with others who can do what they cannot, who share a similar vision, and with whom they can collaborate. Inexperience can lead to overconfidence. This is an especially dangerous pitfall for early stage startups and new entrepreneurs.

Elizabeth Holmes and Theranos is a good example of a culmination of all 5 of these mistakes and what inexperience can do to a business idea. She raised $900 million. Her company was worth billions. She was on the cover of magazines and featured on TV shows and one of the best founders in a generation. But it ended in failure and she may go to prison for her behavior.

There are real world, and sometimes life altering, consequences for making these mistakes. Think through your decisions carefully and be aware of the risks you take as you pursue your exciting and hopefully rewarding entrepreneurial journey.

About the Author

StrategyDriven Expert Contributor | Christopher GreyChristopher Grey is the co-founder and COO of CapLinked, and enterprise software company offering an information control and risk mitigation platform for the sharing of confidential or sensitive documents and communications outside of the enterprise. Previously, he was a senior executive and managing partner in private equity and corporate finance for 15 years and directly involved in the deployment and management of billions of dollars of debt and equity investments in various industries. Christopher founded two companies, Crestridge Investments, a private equity firm that made debt and equity investments in micro cap and middle market companies, and Third Wave Partners, which made debt and equity investments in distressed situations, and was managing director of a subsidiary of Emigrant Bank, the largest privately owned bank in the country. Most recently, he is a co-founder of TransitNet, a platform for security token issuers offering title verification, chain of ownership tracking, and other post issuance tools for improving the security and reliability of security token ownership.

5 Effective Strategies for General Contractors to Cut Costs

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StrategyDriven Managing Your Finances Article | 5 Effective Strategies for General Contractors to Cut CostsContractors need to devise ways to cut costs in order to remain profitable. With increased competition, the need to cut costs has become important now more than ever.

Eliminating people is not the right way to cut costs. This will only stifle the ability of your firm to make a profit. Instead, you should look for other ways to cut costs and boost profitability.

1. Cost Audit

The first step in cutting costs should begin with a complete audit of the existing expenses. You should consider ways to reduce operational expenses.

You can relocate the office to a location where the rent is lower. Also, you can consider the shift from in-house to cloud operations to cut overheads.

A lot of contractors subscribe to different software services yet don’t use most of them. Consider whether the services really add value to your business by saving time or improving efficiency. If not, it’s better to cancel the subscription.

2. Time and Contract Clause

Instead of Under-the-contract-price, you should consider adding the add-to-exceed clause. In the former case, the owner of the project only has to pay a fixed cost that includes overhead and profit. This is not necessarily the most cost-effective approach.

Instead, you should consider the time and materials contract. This is a type of contract consist of the following three terms.

  • Actual material costs
  • Actual direct labor costs at a specific hourly rate
  • Agree on add-on to cover profit and overhead

The main benefit of this type of contracting is flexibility. This cost structure allows you to adjust requirements, replace features, and cater to changed user requirements without taking a hit on the bottom-line.

3. Seek Multiple Bids

When working with a sub-contractor, you should consider multiple bids. This may take additional time, but the effort will be worth it in the end.

You may have to send lots of emails and hammer the phones. But this will allow you to lock in on subcontractors that offer services at the least costs. This extra work will help in significantly reduce the internal expenses.

4. Inspect Your Schedule

You should keep an eye on your schedule for any potential stacking or acceleration of activities. Compressing the schedule will allow you to squeeze cost advantages. Time is money and any time that is saved will have a positive impact on the company’s bottom-line.

5. Financial Prequalification

You should prequalify all subcontractors to reduce the risk in case of cost escalation. This is particularly important if the subcontractor will bear most of the risks. It will help in absorbing any deviances in a project that result in increased cost.

By financial prequalification, you can get assurance that the subcontractors will be able to absorb any costs overruns. Some of the criteria that you should consider include pipeline, days of cash, and work in progress.

The above tips can help in greatly reducing the contracting costs. Consider adding an escalation clause in all your projects as well. This will pass on the risk of cost increase to the project owners.