Every day there is news about the stock market's heavy hitters. GOOG, FB, TSLA and other big-ticket ticker symbols float across the bottom of news broadcasts. However, the vast majority of U.S. companies are privately held. So, if privately held companies can’t issue public stocks, how do they raise money? Many companies bootstrap themselves with owner or family and friends equity or loans to start. Two other vehicles for raising funds are private equity and venture capital. Here, we'll discuss what each does, how they're different and similar, and why the private market remains so resilient and attractive to businesses and investors. What's the difference between private equity and venture capital?Let’s explore the main differences between private equity (PE) and venture capital (VC) firms: Venture CapitalVenture capital firms raise funds by gathering investments from limited partners (LPs), whose money they then invest. VC firms are known for focusing their investments on startups and other young companies that show high potential for growth and above average rates of investment return. Often these companies are characterized by innovation or carving out a new industry niche. Frequently, they involve some new technology or other innovation. As such, VC investments are normally much riskier than Private equity investments but also have potentially higher returns. The role a venture capital firm takes following their investment frequently includes a Board of Directors seat and, consequently, significant input into its future direction. They can also attract other investors and provide valuable connections for the company to expand their business. Because of the amount of capital sometimes involved in these investments, numerous VC firms may invest in a given entity. As such, a single firm does not often have a controlling interest in the company. Also, sometimes, the founders maintain control by having special stock voting rights or control provisions that allow them to maintain control of the company. Private Equity One of the most significant ways private equity differs from venture capital is in the type of companies in which they invest. Whereas venture capital primarily funds startups as they grow and blossom, private equity often invests in more established operating companies with opportunity for growth or improvement. Private equity firms raise capital from institutional investors and wealthy individuals, often in a fund. The fund or firm normally takes controlling interests in these more mature operating companies. The investment of their equity is almost always coupled with debt, sometimes quite significant, to fund the company purchase price. In some instances the prior owner of the acquired entity will also continue to hold some equity in the new entity. They then seek to improve the company via additional growth opportunities (new products, new services, add-on acquisitions, geographic growth, enhanced sales and marketing capabilities, etc…) or operating improvements (cost reductions, improved technology, improved operating processes, etc…), leading to enhanced shareholder value. In accordance with its majority equity stake, the PE firm normally controls the Board of Directors of the acquired entity. This gives them control over the management team and strategy of the acquired entity. PayoffOne of the fundamental similarities between private equity and venture capital firms is that they both aim to achieve the same thing: leveraging their existing capital, resources, and knowledge to make businesses more profitable and more valuable. They get their payoff in similar ways too – normally from a sale or merger of the acquired company with another entity. This could be an outright sale to another party, merger with another entity or a sale via an initial public offering. Upon such an event the VC or PE firm achieves a return, which is ultimately passed along to its investors. Why Is There So Much Interest in Venture Capital and Private Equity?One of the primary reasons so much capital is flowing into venture capital and private equity is that yields on other investments have declined in recent years. Investments in treasury bills and other debt securities have extremely low returns due to the low interest rate environment that has been in place for the last decade. Additionally, there is a wave of baby boomer owned companies that have no transition plan and are being sold. Private Equity firms are often great buyers for these companies, with ready capital and an infrastructure to manage the purchased entities. Lauber’s Business Expertise Regardless of what funding avenue your business chooses to pursue, you're going to experience a fundamental shift in the way your business operates. Startups that have been bootstrapped until their funding will suddenly be able to hire more employees, specialize their business operations, and scale upward. More mature businesses might need to change their organizational structure, operating procedures, personnel, financing facilities and other things as they pursue new growth. Navigating these times is critical to the future success of your organization, and Lauber’s Finance & Accounting, Human Resources, Talent Search, Coaching and Planning services will provide you with the expertise you need to take your business to the next level. . A Lauber Fractional leader proficient in the most complex. Lauber delivers its services fractionally (i.e., a day-a-week or on some other regular schedule), on an interim basis or a project consulting basis. Contact Lauber Business Partners for Fractional, Interim or Project Consulting Leadership Today.At Lauber Business Partners, we understand what it takes to deliver exceptional expertise that will significantly impact your organization’s success. Please contact us by email at [email protected] or by phone at 414-273-8060.
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As the landscape of business continues to grow and change, one thing is more true than ever: talent is king. The recruiting strategy employed by your organization is of utmost importance when it comes to putting your business on the path to success and growth. Though it may fly in the face of preconceived notions of recruitment, the recruiting process is best implemented as an ongoing strategy. Why An Ongoing Recruiting Strategy is Best Continuous recruiting is accompanied by several benefits, especially compared to a more sporadic and temporary recruitment process: 1. Gives You Constant Surveillance Utilizing modern ongoing recruitment strategy and process provides your organization with a constant view of the market for talent. 2. Identifies Talent as It Becomes Available Finding the right fit for your company is all about timing: whether it’s timing of the applicant or timing of the job market and economy. Utilizing an ongoing recruiting strategy means your hiring process will be dialed in and ready to capitalize on the right candidate at the right time. 3. Actively Builds Your Brand in the Marketplace Proactively recruiting also gives your organization the consistent platform to be seen, allowing your brand to be seen and engaged by prospective employees. 4. Enables You to Move Quickly Position vacancies take a serious toll on your organization’s ability to operate, and depending on your size and industry, can be devastating. An ongoing recruitment process allows you to fast track and prioritize certain vacancies. Ongoing Recruiting with lauber business partnersRecruitment through Lauber is more than a service. We’ll work with your business as an extension of your team, ensuring that we are fully aligned with your goals and requirements as you build your ideal team. Working closely like this allows us to gain intimate knowledge of your company culture and needs, aligning ourselves with your priorities. We offer multiple models that we can tailor to your specifics: Recruitment Process Insourcing (RPI) RPI is a scalable and flexible model that allows for a dedicated recruiter to work only with your team and your positions. This recruiter works as an extension of your organization, fully representing you in the candidate field. You’ll have access to the data and recruitment tools, and you’ll only be charged a flat monthly fee. Contingent Search Lauber’s Contingent Search model is best utilized when recruiting for hard-to-find professionals; candidates who are the best long-term fit for your company. This model is paid for through a contingent fee and allows your own team and resource to be freed up while we take on the searching and vetting process. Lauber offers two kinds of contingent search: Executive Search to deliver top-level management and c-suite candidates and Non-Executive search for independent director and supervisor roles. Interim Staffing When your organization is in need of candidates for specific projects or general short term needs, Lauber’s interim consulting resources bring experienced personnel that can hit the ground running. Contact Lauber Business Partners for REcruiting ServicesAt Lauber Business Partners, we understand what it takes to deliver exceptional candidates that will significantly impact your organization’s growth. If you want to learn more about how your organization could benefit from Lauber’s ongoing recruiting and interim staffing models, please contact us by email at [email protected] or by phone at 414-273-8060. Additional ResourcesWhile the challenges brought on by the pandemic were and are different across organizations, one thing remains consistent for every organization: strong leadership will be required to guide us into a post-pandemic business world.
Being a broad and buzzworthy topic, leadership advice can often get bogged down with redundant details and an overload of proposed tasks. Rather than listing out potentially arbitrary business leadership tips, we’ve prioritized 4 areas specific to leading your organization out of the pandemic as we return to some sense of normalcy. 1 . Embrace Flexibility One of the biggest lessons of the pandemic is just how crucial it is for your organization to remain flexible and be able to pivot due to unforeseen circumstances. The pandemic forced businesses across the country into dire decision making, from difficult employee cuts to severing office leases and potentially closing their doors. These circumstances have also shown us that flexibility is more important than ever. This may mean supporting your employees’ needs to work differently if your business allows for it. Properly supporting remote work takes an investment in the tools and protocols that will promote efficiency while retaining company culture and collaboration. Remote work comes with its fair share of pros and cons, ranging from saving costs to missing out on in-person collaboration that can’t be fully replicated through virtual tools, according to Fortune. While some companies have opted for relegating some of their staff to remote work or even hiring international remote teams, you may find a hybrid work model to be an ideal solution that allows for remote flexibility while retaining some of the benefits of in-person work. Keeping a pulse on your employees’ preferences and productivity will allow you to evolve most effectively. Every team functions differently, so finding the right balance between remote work capabilities and in-office collaboration is key. 2 . Prioritize Mental Health According to Forbes, a CDC survey from 2020 found over 40% of respondents indicating conditions such as depression and anxiety. While mental illnesses are nothing new, our growing knowledge and sensitivity to them certainly is. And the pandemic has only further exposed these underlying conditions in much of the American workforce. Leading your organization out of the pandemic will require sensitivity to your employees’ mental health needs that have likely been exacerbated by the pandemic and quarantine conditions. In addition to reviewing your work flexibility as mentioned above, you’ll want to revisit your benefits and resources for employees including:
Addressing and accounting for mental health goes beyond added benefits and well into establishing a work culture of openness and acceptance. Leadership must set a tone in the work environment that encourages employees to attend to their mental health wellbeing. Employees will be more likely to take advantage of the resources and offerings in a work culture that rewards taking care of oneself. 3 . Promote Transparency Uncertainty has been the theme of the pandemic and likely a word you’re tired of seeing. However, we’ve never seen this level of uncertainty, especially with regard to business operations across all industries. When moving forward into the post-pandemic world with your team, it will be of utmost importance to keep everyone aligned and informed. Decisions and directions may be up in the air, and proper communication will go far in retaining talent and ensuring high morale. Remaining transparent is one of the 6 Small Business Management Tips we’ve discussed before, and for good reason. Encouraging your team members to come to management and leadership with problems can lead to quicker solutions and more proactive decisions. Providing clarity with effective internal communication is foundational in maintaining a workplace culture built on trust. 4. Leverage External Resources to Drive Better Performance You may be moving into the post-pandemic world with a much different organization than that with which you entered it. Roles may be combined, duties may be shared, talent may be difficult to find and leadership voids may need to be addressed. This is a challenging environment in which to operate and it can seem overwhelming at times. We’ve discussed how Fractional Leadership is a predicted business trend of 2021. The benefits of fractional leadership are numerous, especially in times of uncertainty and change. You can supplement your team’s needs with highly-skilled cost effective fractional resources, far greater than you might be able to afford as a full-time resource. These resources can be accessed in accounting & finance, human resources or operations. Trying to ramp your operation back up to accommodate growth or find a new key leader can be extremely challenging today. Being able to access talent on demand, attract new talent and develop the talent you have is crucial to your organization's future success. Often turning to a firm like Lauber can help you accomplish this much more quickly and effectively than trying to do it all yourself. We are dedicated to providing critical talent and developing talent for organizations to help them be successful. Providing Services to Small and Mid-Size Businesses Since 1986 Lauber Business Partners provides services tailored to small and mid-size organizations. We’ve been consulting with organizations like yours since 1986, and our services include: Human Resources Finance & Accounting Coaching Executive Search Nonprofit Management Growth Planning Recovery & Rebuild Services Recruitment Process Insourcing Contact us today at 414-273-8060 or [email protected] to see how Lauber Business Partners can help your small business grow and succeed. Mind chatter defines the barrage of thoughts we face each day. Some of these thoughts can serve us, some can sabotage us. Where we choose to focus our attention has significant implications for both performance and happiness. Positive Intelligence: Fitness for the Mind The capacity to respond to work/life pressures with a positive rather than negative mindset requires a Mental Fitness Routine, much like a physical fitness routine, to heighten Positive Intelligence (PQ). PQ measures the percentage of time that your brain is working positively (serving you) versus negatively (sabotaging you). PQ is based on groundbreaking research by Shirzad Chamine, Stanford Lecturer and author of New York Times Bestseller, Positive Intelligence. His work integrates Positive Psychology, Neuroscience, Cognitive Psychology and Performance Science to help individuals and teams achieve their full potential and achieve the following outcomes:
Many of us have experienced amazing insights by participating in various professional development opportunities in the past. We may feel energized and motivated to implement changes immediately, and most of us struggle with how to go about making those changes actually happen. The challenge, as Chamine points out, lies in the fact that it takes 20% insight and 80% practice to achieve sustainable change. See our webinar below. Lauber Professional Coaching Services With a Lauber Coaching Engagement, participants can Expect to look up from their day-to-day responsibilities and reflect on their performance in a confidential, non-judgmental environment. More than a series of open-ended questions, the Coach will bring skills of reflective inquiry and challenging feedback - based on current research about sustaining desired change.
At Lauber Business Partners, we understand what it takes to deliver exceptional Coaching services that will significantly impact your bottom line. If you want to learn more about how your organization could benefit from Lauber Coaching, please contact us by email [email protected] or by phone 414-273-8060. Additional Resources Unravelling the Confusion Around the Word...Coaching Alignment and Succession Within a Family Business 2020 was an unprecedented year for the world, and no business industry of any type could escape its impacts. 2021 almost feels just as uncertain, but we see glimpses of normalcy on the horizon. As we approach the end of Q1, certain themes and trends are projected to take hold. In an article published by Recruiting Daily, President of WorkSmart Systems, Inc. Matt Thomas laid out six predictions for what would become HR trends in 2021. One of these six predictions was the growing need for fractional executive leadership. What is Fractional Leadership?A fractional executive’s role is to fulfill their management duties while on a flexible or part-time basis. This can range from a few days a week to a monthly basis, as needed by the organization. While the position may not be full time, the experience and decision-making of a traditional executive is still required for success. Depending on the situation of the organization, a fractional executive will have specific, timely priorities, often targeting key performance indicators (KPIs). Serving as an ongoing member of the management team, a fractional executive provides a hands-on approach to move the business forward, both financially and organizationally. Ideally, this position should free up other team members to focus on the areas in which they provide maximum respective value. Recommended reading, ‘4 Reasons to Consider an Outsourced CFO.’ What are the Benefits of Fractional HR Leadership for Small-Midsize Organizations? Fractional HR leadership tends to best benefit small to midsize organizations who require talented professionals to help them grow but who’s resources may be limited by either budget or staff capacity. Coupling this situation with an experienced fractional executive who understands the business, an organization can lean on the knowledge and guidance of a traditional executive leader while remaining within budget. A fractional HR Executive gets you:
As Summer Crenshaw, CEO of TalentNow, stated in the article, “The company gets the expertise of execs with less cost and helps prevent burnout for the executive grinding through the same problems daily. This trend that was accelerated by the pandemic will continue moving forward and begin trickling down throughout the company.” As we near the end of Q1, there is no better time to engage a fractional executive to propel your organization forward. Lauber Fractional HR SolutionsLauber specializes in providing leadership and guidance for small to midsize organizations amid stages of growth and change. Engaging with a Lauber fractional executive means tapping into our experience and proficiency in complex decision making. Our fractional executives are experienced in the core HR principles and practices. We’re not here to tell you what to do but to lead through action. We understand what it takes to help small to midsize organizations reach their goals.
If you have any questions regarding our Fractional HR or any of our other quality Lauber services, please do not hesitate to contact us today. Additional Resources Benefits & Value of Outsourcing HR Strategic Growth Planning for Small-Midsize Businesses [CASE STUDY] Organizational Leadership Challenges Whether it's a start-up struggling to scale quickly or an established small to mid-sized business with a long history, every organization can benefit from growth planning. Determining how to grow is often difficult to define unless you’ve got a well thought-out plan and an experienced team to lean on for insight. Here we provide a framework for identifying growth opportunities for your business and an execution system that helps ensure you perform against your plan.
Why Is Growth Planning Necessary?
Lauber Business Partners’ Growth Planning & Execution System Our 4-step process provides an effective execution system to conduct monthly reviews, adjust to new circumstances, measure progress and ensure accountability. When you partner with our team, you receive access to an experienced executive to facilitate this process from start to finish. 1. Understand - annual
2. Envision - annual
3. Plan - annual
4. Perform & Execute - monthly
Your Local Resource with a Proven Track Record of Success Lauber Business Partners and its experienced professionals have a proven track record of successful strategic growth planning implementation in Wisconsin. We’ve helped numerous small to mid-size businesses evaluate their growth needs and put into action the best plan of getting them to that next phase. Contact us today at 414-273-8060 or [email protected] to learn how Lauber Business Partners can help your small-midsize organization grow and succeed. Additional Resources for Small to Mid-sized Businesses As it is with many things, we’ve come to know the meaning of coaching from our own perspective. If we drill down to the origin of the word, according to Merriam-Webster.com, the earliest use of the term, coach, referred to a four-wheeled horse-drawn carriage in the 15 th century and was later used to describe an educational tutor in the 18 th century.
It seems obvious in both cases, that the purpose of a coach is to assist with “transporting” someone from where they are to where they want/need to be. When we stop to consider how many different possibilities there are in how that assistance might be given…. it’s no wonder we’re confused! The WHAT of coaching provides assistance with reaching a destination/goal. The HOW of coaching takes multiple forms, refers to many types of professions (athletic coach, life coach, business strategy coach, wellness coach, executive coach, trainer/mentor coach, and so on), requires specific knowledge/competencies, and begins with a varied understanding about the process itself. Therefore, the commonality of coaching can be found in the WHAT while much of the confusion rests in the HOW. Communicating a clear focus and expectations at the start will help to minimize confusion. LAUBER COACHING is focused on:
What to Expect With a Lauber Coaching Engagement, participants can Expect to look up from their day-to-day responsibilities and reflect on their performance in a confidential, non-judgmental environment. More than a series of open-ended questions, the Coach will bring skills of reflective inquiry and challenging feedback - based on current research about sustaining desired change. And, while many participants have had prior experience with assessments, the Coach creates significant value by integrating in-depth assessment insights with practical steps for professional growth. Finally, when it’s clear that the participant would benefit, the Coach will share relevant knowledge or expertise as an alternative course of action, not as specific advice or a directive. While we may not have eliminated all confusion around the word coaching, we hope that we’ve clearly highlighted HOW we go about Lauber Coaching. At Lauber Business Partners, we understand what it takes to deliver exceptional Coaching services that will significantly impact your bottom line. If you want to learn more about how your organization could benefit from Lauber Coaching, please contact us by email [email protected] or by phone 414-273-8060. As a company grows, it reaches important talent benchmarks where you need to break apart combined roles and put it place the specific expertise to take the company to its next level. HR in a growing company is normally one of these combined roles but as the needs of the company to build and develop its human talent grow, it is critical to bring in the expertise of an HR professional to put in place the proper structures and processes to facilitate this growth. Laying the groundwork for an HR role requires four steps: determining needs, defining roles, bringing in the right HR resource and setting expectations.
1. Determine the Needs of Your Organization What will help establish a successful HR function for your business? It seems like a straightforward question, but the reality is there are many factors that contribute to the growth and success of an HR role. Size, industry and work culture are just some of the variables that can determine the kind of HR solution that is best for you. According to a Lucidchart HR Strategy, assessing capacity is the first step to mapping out your HR vision. Is there any current staff who have the talent to focus on your organization’s talent growth? What are the fiscal and organizational limitations for your future hiring efforts? An HR solution is different for each organization, and defining the proper roles needed will be impossible without first looking inward and assessing your capabilities and requirements. 2. Define HR Roles After determining the short-term and long-term HR needs of your business, you should define the role of HR in your organization. Consider the specific responsibilities that will be best suited for an HR leader. From identifying and retaining talent to training and reinforcing company culture—creating a role from scratch is challenging, but if you build a strategic roadmap and structure of what your HR function will look like, you’re half-way there. Read, ‘7 Responsibilities of Human Resource Management.’ Common responsibilities of an HR leader:
3. Hiring the Right HR Person Recruiting an HR manager aligned with the company’s vision is crucial. They should have the expertise and keen knowledge for running an efficient HR department. Ask yourself these questions:
Future growth and scalability must be top of mind when defining the structure and roles of your HR department. Understand that you may not have all the desired positions filled right away when developing this function, so have a flexible plan in place for responsibilities to be divided up among your hires as appropriate. It’s perfectly acceptable to start with one HR hire and scale slowly to mirror workload. ' 4. Set Expectations Small-midsize businesses may require more hands-on leadership due to bandwidth and the work required for establishing a new HR department. It is important that expectations are set early on by leadership and then clearly communicated to the new hire. Your new HR leader will also need to establish goals and clearly understand the key performance metrics important to leadership for measuring the success of your organization. For example, employee turnover rate and workforce utilization rates are metrics that will give leadership a clear understanding of overall organizational performance. Be sure to set up 30, 60 and 90-day touch points with the new hire to enable feedback and the ability for course correction if needed. Alternative Options to an In-House HR Department The simple fact is that your small-midsize organization may not have the resources to implement a fully functioning HR department. Understand that you still have options to address critical HR needs for your business through outsourcing your HR function. Lauber Business Partners’ HR Services provides a flexible solution that brings an experienced professional to your business who has previously successfully built and managed the solution you are seeking. We are a team of HR experts with experience in virtually every facet of HR who provide practical solutions targeted at small and mid-sized organizations tailored to your unique needs. We can help you both build the structure and processes that you need and then serve in a fractional, hands-on role to help manage the activities required to make it work for your company. Contact us today at 414-273-8060 or [email protected] to learn how Lauber Business Partners can help your small-midsize organization grow and succeed. Additional HR Resources for Small-Midsize Businesses Interim financial results are intended to give business owners and managers an ongoing picture of operating conditions. But there are common reporting mistakes that can distort that picture – mistakes that can lead to unpleasant surprises at the close of a company’s fiscal year. Here are 11 common mistakes we have seen include: 1. Not properly recording depreciation
Depreciation is properly recorded as a monthly non-cash expense. This includes depreciation related to assets acquired during the year. Failure to do so will inflate perceived profits on the income statement. 2. Failure to record assets purchased with a loan Failure to record assets when they are acquired is another mistake that can lead to reconciliation problems at year’s end. An example of this would be the purchase of a company car with a down payment. If only the down payment is recorded, the missing loan payable could lead to embarrassment when the bank analyzes your financial statements. 3. Improperly recording asset purchases as expense or the maintenance expense as a fixed asset addition Consider establishing a minimum capitalization policy, say $500, expensing all asset purchases below that amount. 4. Not splitting debt principle and interest into appropriate categories Payments on the principle should be recorded as a reduction in the liability while payments of the interest are an expense. 5. Not recognizing bad debts Bad debts are a reality for nearly every business. In accounting, they are considered an expense. How you record a bad debt affects the ability to write it off in accordance with IRS regulations. Waiting until year end to record write-offs distorts the interim financial picture and can lead to bad decisions. 6. Inventory valuation issues For companies that sell products, proper inventory valuation is important to provide a clear ongoing financial picture. This includes ensuring burden rates reflect current costs. Many companies base their cost of goods sold on the value of inventory remaining at the end of a period. If that inventory is not properly valued, a false picture can emerge. The situation can have a big impact on profits when inventory is valued based on a physical count at the end of the year. 7. Improper recording of project payments made in advance of delivery Long-term projects can present accounting problems when customer down payments are received but not properly recorded. If for example, a company requires one-third down before a project is launched, that payment should be recorded as a liability. The money can be moved into an income account as the work is actually accomplished to give a proper matching of revenue and expense. 8. Improper cutoff of revenue and expense figures at the end of a month It’s not uncommon for a company to record revenue for a product or service but not record all the costs. For example, costs still to come related to a completed contract. Revenue and expenses need to be properly matched at the end of the month to avoid misleading financial reports. Keep an eye on accounts payable processing, making sure that all items are properly recorded prior to closing an interim period. To ensure timely financial statements, estimates are OK for invoices that have not been received at the cutoff date. 9. Failure to accrue for once-a-year expenses like property insurance, officer life insurance, real estate and personal property taxes, etc It’s not uncommon for a company to record revenue for a product or service but not record all the costs. For example, costs still to come related to a completed contract. Revenue and expenses need to be properly matched at the end of the month to avoid misleading financial reports. Keep an eye on accounts payable processing, making sure that all items are properly recorded prior to closing an interim period. To ensure timely financial statements, estimates are OK for invoices that have not been received at the cutoff date. 10. Not accruing for bonuses, commissions, profit sharing and retirement plan contributions The cost of bonuses, commissions, profit sharing, retirement plan contributions and similar payments should be evaluated throughout the year and not solely at the end of the year. Ideally, such payments should be recorded on an accrual basis since, in effect, they are earned throughout the year. 11. Investigating only negative variances If results are too good to be true, they probably are. Investigate both positive and negative variations. NEED HELP? ASK THOSE WITH EXPERIENCE For many, the most challenging step in financial management is knowing where to start. For others, it’s merely maintaining the course. Small business owners’ financial decisions will impact the entire company and the people that are part of it; so it’s important to have the proper financial management systems in place to provide information to inform management when making key strategic and operating decisions. Contact Lauber Business Partners for help in guiding you through every step of the process and ensure that the financial decisions you’re making are best for both your business’s present and its future. Small businesses face unique financial challenges. Though no one understands your company’s goals better than you do, it's okay to lean on reputable consultants for industry best-practices and general advice. Here are six small business management tips that apply to all operations. Get the Right Team & DelegateYour small business needs your leadership. Keeping your head out of the weeds is crucial to operating and growing a successful small business. One of the best ways to accomplish this is by surrounding yourself with the right team members that handle the day-to-day so you can focus on higher level issues -- things like new business development, strategy, and other operations. Read more: ‘5 Tips for Building the Best Team for Your Growing Business.’ With team members who understand your goals, you can begin to strategically offload smaller projects. This is why clear communication is so key to executing strategic delegation; make sure your team members understand what is expected of them—specific deliverables, timeframe and purpose. Consider implementing a low-cost project management software to streamline tasks and hold employees accountable. Keep day-to-day tasks moving while you focus on steering the organization. Stay NimbleWhether you plan to expand operations over the next few years or not, a small business plan is advantageous by allowing you to remain nimble and pivot when necessary. The business world has changed exponentially over the last few years, with the introduction of new technologies and remote & hybrid work opportunities around the globe. While sustainability should always be prioritized, keep in mind that an open and communicative workplace culture will nurture creativity and innovation. Be open to new ideas, tools and opportunities; your new differentiator or avenue may be one brainstorm away. Unforeseen problems and opportunities will come your way no matter what, so try to avoid tunnel vision and embrace the change to promote growth. Remain TransparentOperating a small business relies on trust between you and your employees -- and transparency is a huge part of it. Keeping an open door and consistent dialogue with your team will keep everyone in the know as well as encourage employees to come to you with problems and ideas as they arise. Depending on your workplace culture, subjects ranging from financial health, expansion or staffing issues may be things to address directly rather than wait for rumors and misinformation to take hold. Navigating these sensitive topics appropriately can prevent costly employee turnover. Outsource When it Makes SenseFocus on what you know best. Operating a small business can take you to unexpected places, and sometimes those places come at the cost of operating outside your organization’s expertise. Don’t be afraid to bring in help when you are out of your area of expertise. Trying to do important things out of your expertise can result in costly mistakes. Additionally, these activities can distract you from focusing on things that can make your business more successful, like growing sales and developing new products and services. Whether you need a specialist, human resources team or finance & accounting services, proper outsourcing will keep your small business on track and you focused on larger goals. Goal Check OftenAs we mentioned, small businesses should pivot strategies when unforeseen roadblocks and challenges come up. It doesn’t happen overnight, but you may wake up to find your business has strayed far away from what you set out to be. Take the time to meet with leadership often to stay on track for meeting your goals. Having your goals top of mind will guide you when making important decisions that may alter your small business trajectory. Celebrate Your VictoriesAccording to US Labor Statistics, almost 50% of small businesses will close within five years of opening. So even just existing may be a victory for a particular small business. Running a business of any size is no small feat, and those milestones and victories, no matter the size, are important. Take time to celebrate these achievements and congratulate your team. Take time to reflect on the differentiating factors that contribute to your small business’ success. Providing Services to Small Businesses Since 1986Lauber Business Partners provides services tailored to small and mid-size organizations. We’ve been consulting with organizations like yours since 1986, and our services include:
Contact us today at 414-273-8060 or [email protected] to see how Lauber Business Partners can help your small business grow and succeed. |