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Important Steps For A Successful Sole Proprietorship

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StrategyDriven Entrepreneurship Article |Sole Proprietorship|Important Steps For A Successful Sole ProprietorshipIf you have an entrepreneurial spirit and are the sole proprietor of a business, you know that it is just as important to offer an excellent product or service as it is to understand the business side of your chosen pursuit.

A sole proprietorship automatically forms when you begin offering any services or goods. At this point, there is no differentiation between you and your business from a legal standpoint. To take it a step beyond that point, if you choose to incorporate or register your business then you are no longer operating in a sole proprietorship. While there are pros and cons to initiating a sole proprietorship, it is essential to know what you are getting into.

Liability

When you are in a company of one, it is vital to understand that sole proprietorships have unlimited liability and how this will affect the way you conduct your business. Unlimited liability blurs the lines between your company and personal assets. If you are interested in taking the next steps to becoming a sole proprietor, ensure that you engage with professionals to understand what you are embarking upon. Follow this legal guidance when considering whether to become an entrepreneur.

Business Plan

One of the first steps beyond having a marketable product or service is to create a business plan. This plan is not limited in scope. You can add to the plan or modify it as needed. After all, this is your business. You are at the helm of your future, and your decisions are the driving force for your success. To have a productive business plan, begin by asking yourself why you are creating your product or service? What is your end goal or mission? How do you intend to sell and market items? Will you outsource? There are a multitude of templates available online to get you started on creating an effective business plan.

Outsourcing Options

Staying on top of everything by yourself can be difficult. On a good day, all of the business aspects will pull you in a few different directions. On a bad day, you will not be part of your actual product at all. Too much time spent on managing your business will leave you without the energy to focus on the reason you began your business in the first place. Consider alternatives to doing it all yourself. Outsourcing options will afford you more time and creative energy to give your business your full attention. Common outsourcing options for sole proprietors may include marketing and advertising, social media and blog posting, accounting and payroll (if you have other employees), transportation of goods (mail and packages), legal guidance, and customer service.

Ask For Help And Guidance

Whether you are a longtime business owner or just starting, it is beneficial to seek the counsel of others. They may be within your industry or someone that you identify as successful. Consulting with a variety of people will offer you invaluable insight into both your company as well as theirs. You will have the opportunity to ask questions, see what they are doing that works, and even learn from the value of their mistakes. Having another person or group to bounce ideas off and ask for referrals will help you on your path to growth and success.

As they say, knowledge is power. Always do your due diligence and understand what you are getting into when starting your own business. It will be a wonderful opportunity to showcase your talents.

Key Costs Of Business Expansion You Need To Be Prepared For

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StrategyDriven Starting Your Business Article |Business Expansion|Key Costs Of Business Expansion You Need To Be Prepared ForExpanding your business is incredibly exciting, but it’s also a huge risk. If you miss the mark and your plans for expansion don’t play out the way that you hoped they would, you could lose the business. Usually, this happens because companies don’t budget for the cost of expanding or they overestimate how much their revenue is going to increase. You can’t take anything for granted and there is always a chance that your revenue will grow much slower than anticipated, which means you need to budget for the cost of expansion and make sure you have enough money to cover it before you get started. If you are expanding your business, these are the big costs that you need to be prepared for.

Increased Staff Costs

If your business is going to grow and expand into new markets, the workload will also increase. Unless you have the right team behind you, you are unlikely to see sustainable growth, which means that you should hire some new people before you do anything else. As you already know, staff costs are one of the biggest business expenses you have to cover, so it’s important that you are able to survive when they increase. Ask yourself how long you can comfortably pay for the salaries of new team members with your current earnings. If it’s not very long, you need to save more money before you start hiring anybody.

Office Relocation Costs

If you take on one or two people, you might be able to fit them in your existing office, if you’re lucky. But if you start hiring a big new team, you’ll need a larger office space, and that gets expensive. Most business owners have considered the increased monthly cost of a bigger office, but they don’t factor in the cost of the move itself. You need to hire removalists to take all of your stuff, you’ll need new furniture to fill the extra space, and then there are added extras like internet and phone installation. Don’t forget that the business will be in shutdown for a few days while you move to the new office, and that costs money in lost revenue.

Market Research Costs

If you are expanding into a new market, researching it is absolutely vital. You won’t be able to create effective marketing campaigns unless you have an in-depth understanding of the market, especially when expanding internationally because different cultures will respond to your marketing efforts in a different way. You can’t afford to cut any corners here, so make sure that you have the money to conduct in-depth research before doing anything else.

Inventory Costs

Hopefully, your expansion will be a success and you will be selling more products, which means more revenue. But don’t forget that there are costs associated with that too because you will need to buy more inventory and pay for storage. Improving your inventory management systems will help you manage these costs, but there will always be an unavoidable increase that you need to be prepared for.

If your business expansion is going to be a success, you need to be prepared for these key costs.

How To Set Up the Perfect Therapy Office

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StrategyDriven Starting Your Business Article |Therapy Office|How To Set Up the Perfect Therapy OfficeHaving the perfect office can make your therapeutic sessions a lot better. If your practice is still new and you started off by just renting office space, it can be stressful to arrange and set up everything needed. You also need to think about your patients and how they would feel when entering your office. The atmosphere should be calm and relaxing. When you still have some unpacking to do and have no idea where to place what, follow these steps on how to set up the perfect therapy office.

Chairs

A chaise longue that clients lie down on is no longer the standard method. One of the most crucial parts of setting up your office is the chairs you and your clients sit on. A therapy session can go on for up to 2 hours, so making the seating arrangements as comfortable as possible is crucial. When doing sessions with families or couples, a sofa will be the best option as they can sit together. If your sessions are one on one, get a chair with a back that goes up and past the shoulders to ensure optimal comfort. Along with the seating, get a standard coffee table so that clients can put down their wallets, car keys, or beverages.

Arrangement of Furniture

After you have selected the perfect pieces of furniture, you need to think about how you will arrange it inside the office. There are many ways to utilize the space available in the most efficient manner to prevent your office feeling overcrowded.
But, this option is all up to you, just make sure that the office does not look too crowded but is still intimate.

Windows

If you have not rented an office space yet, look for one with a lot of windows. Natural light creates a place of peace and calmness – this is how you want your clients to feel when talking about difficult subjects. Natural light also has many health benefits. Windows will also provide your office with a view that can have a calming effect on your clients instead of just four walls that may sometimes make a person feel claustrophobic.

Comfort is Key

When a client is nervous or struggling to open up to you, it may help them feel more at ease when the office is comfortable. You can either decorate the office with light and neutral colors or offer refreshments like some herbal tea with cookies. The temperature of the office can also play a significant role when considering ultimate comfort – investing in an air conditioner to get the right temperature will also prevent a stuffy office. With regards to the air conditioning, It would also be a good idea to keep in touch with a 24 Hour AC Repair company for when your air conditioner is giving you problems and you need a quick repair.

The article gives you a few general tips on how to set up a comfortable and efficient therapy office. Together with these tips, you can also decorate your office with your desired items and elements to ensure patients feel right at home when walking into your practice.

How to Meet Customer Expectations when Demand is High

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StrategyDriven Customer Relationship Management Article |Customer Expectations|How to Meet Customer Expectations when Demand is HighSoon after opening a business, you’ll realize that running it is the hard part. You have to keep up with customer demands, make sure that employees are well taken care of, and everything runs smoothly.

Sometimes demand will fluctuate, but you still have to predict and meet customer expectations because when you don’t, you will lose them. No one will give you business when they cannot trust you to deliver on time. To avoid this

Focus on running the business

A lot goes into running a business, and you have to separate your core competencies and other services that boost productivity. What is your main focus? When you concentrate on tasks your business is not built for, you lower productivity and demotivate the workforce.

To avoid this, outsource most of the operations you’re not competent at or take a lot of your time. For instance, have an IT support company take care of all your IT problems.

With a reliable IT expert, you’ll get high-level customer service, up-to-date information on the latest technology, solutions to current problems, and quick response times.

Also, think of outsourcing your human resource, accounting, and manufacturing department. You improve productivity and at the same time have qualified outsourcing companies take care of essential departments. You can entirely focus on the core business.

Focus on the Quality of Your Supply Chain

Although it’s beneficial when you have suppliers who offer cheaper products, it’s more important to have a quality supply chain. You’ll have an able, professional, and dependable supplier who can deliver the goods even on short notice. If you predict a rise in demand, have at least three suppliers you can rely on.

Remember that your customers expect you to deliver their goods or fulfill their orders in the shortest time possible. Having a quality supply chain enables you to quickly get the supplies you need to keep your customers satisfied.

When demand is high, you might be tempted to stock more, but this is not a good solution. When the market is slow, you’ll be left with unsold inventory, holding your money. Also, you’ll have to look for a more extensive storage area to accommodate more stock.

Instead, have a quality supply chain that assures you of quick delivery of the raw materials or products you need to fulfill customer wishes.

Have Scalable Resources

During the low seasons, have the necessary measures in place to accommodate high demand. If your equipment cannot handle the high demand, start looking for leasing options, or if you can, buy extra equipment.

You also need to hire more workers. Have a ready and skilled workforce you can call on short notice when required. For a better experience, work with contracting agencies to provide the required task force at short notice. Also, look into the transportation options you have to facilitate timely deliveries. If you need to increase your storage area, do so on time.

Because the high demand is temporary, you don’t have to make heavy investments to accommodate the change. Instead of buying new equipment, lease for the period the demand is high. You’ll save money that will keep you afloat when orders subside.

EMERGENCE – What is Now Needed for Leadership Teams to Become High Performance Teams

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StrategyDriven Management and Leadership Article |High Performance Leadership|EMERGENCE - What is Now Needed for Leadership Teams to Become High Performance TeamsLike those old scary movies… creature from the black lagoon. Moonlight on the water, ripples small at first. Then you see a head, then neck, shoulders, a trunk emerges, all covered in black yucky goo, smelling putrid and sulfuric. The creature is covered in wretched mud, dripping stinky black slime, standing on the bank gazing outward. That is how I feel. That is exactly how I think I look. Only I am emerging from the Pandemic.

Now imagine a group of creatures, dripping, stinking, and standing on the bank, male, female, big and small – about seven give or take and you have what company leadership groups look like as they emerge from the pandemic and take their first steps in dealing with the new reality.

It has been tough for many organizational leadership teams. In the beginning of the pandemic many companies experienced immediate slowdowns and uncertainty going from a growing company to a shrinking company. There was getting and managing PPP. This was harrowing and un-tested ground!

Slow business growth and emergence began in early summer and has continued throughout the year. We got used to working at home and working remotely and Covid protocols. This was spiced up by employees and leadership team members getting and dealing with Covid. Sometimes there were shutdowns, certainly there were quarantines and periodic, unexpected deaths. There was one challenge after another after another.

Today many leadership teams have not been with each other physically for over a year. Vaccines are occurring – I got mine- but what does it really mean? Is everyone getting vaccinated? Can we mandate that all employees get vaccinated? Can we hire only vaccinated people? Can we come to work like normal? When do masks come off and under what circumstances?

The federal government is predicting 6.5% growth starting in the summer……Is that something you and your company are ready for? What planning do you need? Part of that question is answered by asking is your company’s leadership team ready for the growth opportunity that is arising? Is your organization’s leadership team ready to emerge from “we survived the pandemic” to having the organization positioned for growth and health in the new emerging world?

The answer lies in, is your company’s leadership team really a high-performance team and prepared to lead in this new era? Frankly, is the leadership even willing to contemplate that it is a new era? The answer to this question will determine the short-term success of your organization as we emerge. What follows are thoughts and ways to diagnose and improve your leadership team in winning at this new game.

As a business coach, I have heard business leaders refer to many groups as “teams.” I typically cringe, hyperventilate and get a rash when I hear the word because it is usually not an accurate description of the group. I have found it useful to distinguish leadership groups from leadership teams.

Team performance does not just happen. It is not a function of the right combination of personalities or luck; despite what conventional wisdom and typical business pop psychology might have you believe. The following are components that are critical to growing and developing leadership groups into high-performance leadership teams. Much of my thinking here has been influenced by the book, The Wisdom of Teams: Creating the High-Performance Organization by Jon Katzenbach and Douglas Smith

First, members of high-performance work teams have a common agenda that all members subscribe to and support. These are typically documented, and progress is reviewed and coached usually in at least a weekly manner. For leadership teams that are emerging powerfully and entering the second quarter of 2021 this means they have a plan. No kidding! They are out to cause specific actionable results and they have action plans to support their goals.

Secondly, teams do not spring up by voodoo, and/or magical thinking. It is a focus on team performance and an agreed-upon appreciation of what this means that allows a leadership team to get results. The good communication and good relationships are an outcome and result of a team that is performance driven.

Thirdly, high-performance leadership teams are “a small number of people with complementary skills who are equally committed to a common purpose, goals, and a working approach.”

Real teams have members of the team who are mutually accountable for the results. This point of being mutually accountable for the results is critical to the success of the leadership team because it calls for mutual coaching and support between all members of the team. This is different from what happens in Leadership Groups where acceptance of mediocrity and avoiding conflict is rampant.

I am seeing two things. Some leadership groups are feeling their way and seeing what occurs as vaccine rolls out and the variants spread. The leadership teams are not waiting. They are making the bet that health and growth are returning and running down that road with a focused agenda. They are implementing and out in front of the emerging reality.

High-performance leadership teams develop in stages. By teaching these stages, groups can be asked to identify which stage they are in. Once the team has aligned on where it is, have the group design the necessary steps for reaching the next stage. Again, this exercise is valuable for allowing the team to focus on growing, developing, and normalizing their struggles and challenges.

The stages are as follows:

Stage A The exciting stage. This is the birth of the team that is still a group, and there is typically excitement and anticipation about the team’s potential and possibility. There is an uncertainty, but there is also optimism.

While a leadership team may have worked together for years, they may find themselves at this stage post pandemic. They have been separated for a time, the rules of working have altered, and they have been focused on survival. Like the creatures at the beginning of the article they are standing on the bank looking outward. There is optimism spiced with uncertainty as they look to the future.

Stage B The “poop hits the fan” stage is when reality sets in about the challenges facing the group and the organization. New group life can be hard and demanding. It is no longer fun, and there is finger pointing between leaders. Silos are rampant. Mutual accountability is seen as an empty concept. Team members look at whom to blame for their bad results.

How do we bring the company back to our offices? If we have been open during Covid what changes do we make and when regarding our Covid protocol? What is our policy regarding the vaccine….do we make people get it or fire them…? What about our supply chain as our sales increase? How do we make sure we can be on time to our customers? What about hiring – are we facing a labor shortage and what do we do about it? Are there now key hires that we need to go after and how are we onboarding them into the culture? As you can see there are some whopper challenges now facing leadership teams.

This “poop “stage is where most teams die. The leadership team needs to generate commitment to work through the inherent conflict surrounding these issues. This is also where the leader’s dedication to emerging powerfully from the pandemic is needed. Stage B is where focus and discipline are critical for success.

Stage C The “getting behind the game stage.” This is when everyone begins to align behind the company strategy and the leadership team performance in implementing the company strategy. Discipline and focus arise when the group follows the same ground rules and work approach. For the first time, real team performance results are seen.

A clear agenda post pandemic is required for the leadership team and company. This needs to be transparent and coherently communicated to the organization. What I see from the successful leadership team is that there can never be enough communication. Communicate, communicate, communicate, and reward the right actions are the mantras of the successful high performance leadership teams.

Stage D This is the high-performance stage, where the team is using its group structure to produce remarkable results. The team is enthused about the opportunity for growth and health. They are realizing the possibility before the organization.

It is typical, at this stage, for the team to be recognized both internally by employees and externally by customers for the results that are being produced. The teams that I see that are high performance are out and about and doing visits and surveys with their customers. Leadership team members feel connected to one another. The team is winning their business growth and development game.

From doing the above process the leadership team aligns on what stage they are in. You can also use + or – to distinguish the stage you are in. Brainstorming occurs on how the team can improve and move to the next stage. There needs to be alignment on what actions are to be taken and follow up and accountability established.

What follows is another approach in helping a group diagnose where they are in becoming a high-performance team. This is taken from an audit contained in The Wisdom of Teams.

“Even though most of us are familiar with high performance teams, we are imprecise in thinking about them. Imprecise thinking about high performance teams, however, pales in comparison to the lack of discipline most of us bring to potential high-performance team situations. Leadership Teams can significantly enhance the team’s performance by focusing on performance – not chemistry or togetherness or good communications or good feelings.”

As a starting point, think about the six basic elements of a high-performance team when you assess your leadership team’s current situation:

  • Are you small enough in number and do you have a methodology of powerfully meeting and communicating?
  • Do you have adequate levels of complementary skills and skill potential in all three categories necessary for team performance as you emerge into the new world?
  • Do you have a broader, meaningful purpose that all members aspire to?
  • Do you have a specific set of performance goals agreed upon by all? Are there action plans and champions and leaders accountable and acting on all the goals.
  • Is the working approach clearly understood and commonly agreed upon? Are the goals monitored and updated frequently and shared with the entire group?
  • Do you hold yourselves individually and mutually accountable for the team’s results?”

Answering these questions can establish the degree to which your leadership team functions as a real team as you emerge from the pandemic at this critical time. It will help pinpoint how you can strengthen your efforts to increase performance. Have your leadership team pick two areas in which you think you can improve. Which two areas provide the biggest bang for the buck if the team developed itself and improved?

This audit sets real standards and answering the questions will reveal the opportunities to improving your leadership team’s performance. Let the team think through and plan for actions they will be taking in these areas to improve their results. Facing up to the answers will accelerate the leadership team’s ability to develop, grow and become a high-performance team in this new business world.

A year ago, my company clients and myself were in free fall. Recall the news …. scary, dire and overwhelming as everything canceled and locked down. Fast forward a year. We are no longer in free fall and we and our leadership teams are standing on the bank. Stinky yes, gooey yes and on solid ground.

These ideas are intended to be valuable and stimulating as you work to generate a high-performance leadership team. Do not postpone this work. Now is the time. Get cracking! Apply and utilize this material so that you can emerge powerfully from what we have been through. It is worth the effort. Let us know what you are up to and what you accomplish. We are eager to hear about your progress.

About the Author

StrategyDriven Expert Contributor | Bruce HodesBruce Hodes, President and Founder of CMI, is dedicated to helping companies grow. The focus of his work is developing work teams, business leaders and executives into powerful performers. Bruce has an MBA from Northwestern University and a Master’s Degree in Clinical Social Work.