Small Business Minute by Greg Weatherdon

In this episode, we explore when you should lead from the front or step back and lead from the back to keep your team motivated.

Finding a trustworthy supplier can be challenging. Following these 8 steps can help reduce the risk and increase your success.

I actually starting this piece 3 or 4 years ago, pre-Covid days. And as often happens when trying to be creative, you can be hit with a case of writer's block that can leave any number of incomplete topics to collect dust. In my case, I can have upwards of a dozen or so pieces just sitting on the sidelines at any point in time. So was the case with this piece. The reason I mention pre-Covid days is because many businesses are still facing challenges as they recover, however my original observation about customer experience were prior to Covid and yet still exist today. Putting lipstick on a pigThe phrase to put "lipstick on a pig" means making superficial or cosmetic changes to a product in a futile effort to disguise its fundamental failings. {Wikipedia} Many businesses, both small and large, condone this kind of behaviour.On a recent road trip south, we stayed in a number of hotels. Like many, when heading to a specific destination we tend to stay in mid range establishments that we book at some point during our day. Booking any farther ahead is pointless as we never know how far we'll drive on any given day because of weather or traffic.These establishment are well known chains, from Holiday Inn Express to Hampton Inns, to name a few. Fancy, no! But usually more than satisfactory for a quick overnight stop and they're usually situated right near major highway exits. So easy off, easy on. In most cases they're reasonably priced and provide a free breakfast. All in all, a good value proposition. Most of the time.The following are just a few of the observations I made during our stays at various establishments. Poorly trained and uncaring staffBurnt out light bulbs in room.Inoperative power ports or outlets in room.Significant marks on wall and ceiling in room.Peeling wallpaper in hallways.Worn and scratched stain on bathroom door.Poorly applied caulking around tub.  I ain't buying the placeIndividually, none of these shortcomings are a deal breaker and can be easily overlooked when just staying one night. As I like to say, “I ain't buying the place” and for the most part the rooms and establishment were clean. But they tarnish the customer experience. The point I'm trying to make with these observations is, when something such as a hotel room is serviced every single day, how do any of these items get overlooked? In one hotel we stayed in they were in the process of completely renovating the front lobby and the breakfast area. Yet, this is the same place where the wallpaper in the hallways was pealing and light bulbs in the room were burnt out. To my way of thinking they kind of got this back asswards.I always wonder whose decision it is to invest tens of thousands of dollars in refurbishing the lobby when the rest of the establishment is in dire need of some loving. Especially when these items can be rectified at little or no cost. It's akin to putting lipstick on a pig and again does little to improve the customer experience. Considering that these places are designed for travellers who typically spend more time in their rooms than in the lobby as they rest up for their next driving day. When you think about it, once checked in, most guests spend their time in the room as they rest up for the next day of driving. So, wouldn't think room maintenance would be a priority? Just saying!To be sure 1st impressions are important and major renovations are part of the hospitality industry. As franchisees, they have requirements to update their facilities to new standards set out by the franchisor.Out of syncBut many small businesses operate the same way. They are more concerned about their outward appearance, which I maintain is an absolute must, but useless if the behind the scenes operations are totally out of sync with that image.Too often I see small business owners spend time,

Don't confuse innovation with invention. Simply put innovation is improving something whereas invention is something new. Innovation should improve customer experience.

So what is a small business owner to do? Well, you have two choices, play defense, and batten down the hatches or go on the offense and grab market share.

My guest today is Dennis Geelen and is here to talk about his new book The Accidental Solopreneur and how it can help any consultant acheive greater success

There are many fairy tales when it comes to entrepreneurship. Knowing the difference between reality and fantasy, will save you grief!

A big client can kill your business! That's why the 15% rule is so important.

The reality of being a small business owner is that you are going to have difficult clients.

Shut up is my best tip to increase your sales. Learn more about this and an additional 4 tips in this episode.

Inflation is like rust.

Don't be a Lazy Owner

Let's be honest. There's lots of things that people have a passion for that could never support their dream lifestyle.

I'm always surprised at how many small business owners don't prepare for their business's year-end. Sadly, it's more of a case that “they don't know what they don't know!” But spending some time on this annual event can potentially save you a lot of money. As to why so many entrepreneurs are oblivious to the importance of preparing for year-end has a couple of parents. To begin, most of the responsibility lies squarely on the shoulders of the business owner. For some unknown reason, far too many owners don't take the time to understand the financials of their business. Being an entrepreneur requires you to have an understanding of all aspects of your business if you hope to succeed. So many owners can recite chapter and verse on the merits of social media or other online promotions but can't read an income statement. This makes absolutely no sense to me. The root cause for this appears to be that many owners are afraid or don't want to look foolish by asking questions of their accountants, yet in the next breath complain that it's bewildering and too complicated. Therefore, like ostriches, they just stick their head in the sand and leave it to their accountants. This brings me to the second group that can share part of the responsibility – accountants . Now, as a caveat, I personally know a half dozen accountants that take the time to help their clients get a working knowledge of financials statements. These individuals also provide insight to entrepreneurs on how to manage their corporate finances in areas such as cashflow, receivables, etc. Unfortunately, they are in the minority. Far too often I come across individuals that leave their accountants office feeling they that they are no wiser and everything they heard was in Latin. Sadly, most just sat through the meeting nodding their head pretending they understood. Now in defence of accountants, most will gladly explain anything on the financial statements, if they are asked. Unfortunately, they rarely ask their clients if they truly understand what is being presented. So, a word of advice to owners, start asking questions and don't stop until you understand. So, in order to help you prepare for your companies year-end the following areas need to be addressed to ensure you get the clearest idea of where you and your company stand at the closing of each and every year. This process should begin during the final month of your company's year-end. 1.Invoices Get your invoicing done! Simply invoicing every client for work completed during the current year could make the difference between a good year and a bad year or a good year and a great year! By doing so, you attribute all the income you have generated to the actual year that the work was done. Failing to do so, distorts the actual revenue and expenses you generated during the year. Often, I see companies showing a loss at year-end and after a little digging, I find they should have shown a profit had they just invoiced their clients. 2.Expenses Get all your payables in whatever accounting system or spread sheet you use. Again, these are for work completed during the current year-end period. Much like invoicing, failure to get your arms around all the expenses you incurred, distort your final financial results. For example, failing to get all your expenses in could increase your profits for the year. Those profits are subject to taxes. Inadvertently overlooking some expenses mean that you'll have a higher tax bill, and nobody want to pay more taxes than they need to. So, get a hold of any laggard suppliers you have and get them to send their bills to you. 3.Inventory Does your business carry any inventory? If so, this is the time of year to do a physical count to determine its value. Inventory is an asset and can impact the value of your company. Although a company's valuation is always important, it is even more so, if you are planning on selling it. 4.Write-offs Have you got any bad debts? You know,

One of the biggest challenges of a service business is managing your inventory. Now you might wonder what inventory, besides a few stationary supplies you may have, that need to be managed? Well, unlike a manufacturing, retail or a distribution business, where you have physical inventory that needs to be stored, sold and then replenished, service businesses on the other hand have a single and very unique inventory -TIME! Time- It's how you get paid! Because as a service business, your product is the knowledge that you and your staff carry around in your head. Putting this knowledge or expertise to work is how you generate your revenue and that's usually in the form of hours worked. It can be argued that service technicians like appliance or auto repair have inventory, but for the most part you hire them for their knowledge and they in turn they charge you for the time it takes to fix the problem. Therefore, the parts although important, are secondary to diagnostic skills the technician possess, because without those skills, there wouldn't be a part to sell. Similarly, sales and marketing services companies also generate revenue by the hour, however, it is rarely shown as such as most fees are displayed as a total for a given project. But all the fees are calculated as an estimate of how much time or hours are involved in executing the project by the various staff members. Establish some balance One of the biggest issues with owners of service businesses is understanding that their inventory is finite and that they should be running their companies with that in mind. Unfortunately, this is contrary to how many of these businesses operate. They assume that they can just put in more time and work longer hours. Although feasible in the short term, it is rarely a long term strategy. Yet so many continue to do so. There are some advantages to managing your business based on your available inventory of time. First off, it should bring a sense of balance to a business. Balance, as in work life balance. Secondly, it would allow you to establish realistic delivery timelines to the customer. Let's be honest, we all think we can complete an assignment quicker than reality dictates but that just stresses out your staff or annoys the client when we are late. So being realistic can reduce the occurrence of both. Additional benefits of managing your inventory can be significant on the financial front. Foremost, you'll quickly understand whether you are charging enough and whether your existing inventory of hours available can support your financial demands. Calculate how much time you really have Furthermore, you should also discover how efficient or inefficient your organization is and where improvements can be made. Increases in efficiencies can greatly enhance your profitability. A simple metric such as revenue per hour is great place to start in benchmarking any improvements. This calculation is done by simply dividing your total revenue by total payroll hours for any given period, including your own. So, how do you calculate this inventory? Well, it is easier than you think, and it really doesn't matter whether your staff is making $20/hr or $200/hr as it is the exact same calculation. Earning a higher hourly rate does not give you more hours in a day, as we all get the same 24hrs. The following example is how you calculate your total available inventory of time in a service business. 1. Assume a 40 hour work week = 2,080 hrs 2. Assume 3 weeks vacation = (120) 3. Assume 11 statutory holidays = (88). 4. Assume 5 sick days = (40) 5. Assume 2x15 mins breaks/day = (12.5) Total available hours 1855.5 hrs So before doing this exercise, most owners assume they have 40 hours a week or 2080 hours per year per employee that are available to them. However, after taking into account vacations, stat holidays, sick days and coffee breaks, that number is reduced by 11% to 1855 hours per year or a loss of almost 6 weeks out of a 52 week ye...

With the vaccine rollouts well under way in many countries, the talk has turned to the reopening of the economies. One of the biggest issues facing many entrepreneurs, is the return to the workplace. At the start of the pandemic, millions of office workers were sent home to work remotely. Once the initial technical issues were resolved, everybody seemed to profess that they are never going back to the office and their future was a zero commute remote work environment. So confident that this new structure would be the new forever normal, many moved out of the big cities to rural or small communities, never expecting to commute again. Unfortunately, this might be a decision that they come to regret. Understandably, no one knew if or when a vaccine would be developed. However, in less than two years many countries are experiencing high vaccination rates and are slowly reopening much of their economies as life returns to some form of normalcy. So, what's next? Well for starters, offices will begin to reopen, and people will be required to show up for work. Just wait for the howls of injustice, that after more than a year of remote work, employees will be required to be physically present at their place of work. But, the interesting thing is that this vocal group may be in the minority. Research Recent research from KPMG is revealing that the majority of employees want to return to the workplace stating they “miss the social interaction, the buzz, the creativity of being at work”. However, they do want some form of hybrid arrangement combining the opportunity of working remotely part of the week. Interestingly, another survey conducted by Accenture of financial firms in the US shows that 80% of executives want their employees to return office at least 4 to 5 days a week. Clearly there's a misalignment between employee and employer expectations. Just to muddy the waters a little more, EY conducted another survey, whereby more than half the employees surveyed around the world would consider leaving their job post covid-19, if they are not afforded some form of flexibility in where and when they work. This juxtaposition could prove quite interesting for both parties. When you consider that most employers want people in the office, where exactly are those employees willing to leave their present positions going to go? Lots of discussion Apparently, HR consulting firms and employment lawyers have been exceptionally busy over the past 18 months. For the most part they been dealing with work from home challenges many businesses have had to manage, and it doesn't look like it will subside any time soon. The new challenge is how to deal with the return to office post Covid-19. But, depending on the jurisdiction, employees may not have much choice as to where they work. According to some employment lawyers, employers have the right to expect their employees to return to the office as the pandemic was an aberration or a departure from the norm and didn't change the employment contract. Granted, for some businesses, working from home may not be an issue and therefore will continue the practice. However, other employers will be less open to continuing the work from home concept. This is primarily because the pandemic has shown that communications, productivity, and creativity has suffered because of remote working. In SBM #89, Work From Home I related how IBM recalled 11,000 of their employees back to the office 18 months after sending them home to work remotely. They realized that they were missing out on the innovation that happened through in person interactions. So, I think there's an opportunity to learn from their experience. Now what? So, the question to small business owners is what are you going to do? This question needs to be dealt with now and should not be put off, because once the economies reopen, you may be just too busy to give this the necessary thought. The best advice I can give any employer is to decide w...

There are lots of reasons start-ups fail, but one that I see far too often is the lack of industry experience. Industry experience can be summed up as having substantive knowledge working in the area of the planned start-up. As an advisor, I have met with hundreds of budding start-ups and one of my primary questions to them once they have explained their idea is, “what industry experience do you have?” Unfortunately, I never thought to quantify the responses, but suffice to say that a large percentage had zero industry experience. Interesting enough, this was not isolated to any particular industry, but ran the gamut from app development to the hospitality industry and everything in between. This lack of industry experience can be partially explained by the rampant promotion of entrepreneurship and the social media heroes that give false hope to their many followers, by suggesting that they only need desire or ambition to be successful. For those of us that know better, nothing could be farther from the truth. To be sure there are examples of individuals who have been successful in areas where they had little experience. For the most part these individuals had a lot of luck or a lot of money to support them while they learned, but they are the exceptions. The average entrepreneur has neither, but what the successful ones do have is industry experience. Knowledge deficit The authors of Age and High-Growth Entrepreneurship stated the following in a Harvard Business Review post; “We found that work experience plays a critical role. Relative to founders with no relevant experience, those with at least three years of prior work experience in the same narrow industry as their start-up were 85% more likely to launch a highly successful start-up.” History itself can be a great teacher and as Winston Churchill once said in a speech to the House of Commons “Those who fail to learn from history are condemned to repeat it.” There are many examples from history that entrepreneurs can draw upon to support or justify why those individuals with industry experience have a greater chance at success. What most people overlook is that having industry experience is a massive competitive advantage. It gives you the knowledge to spot an opportunity from the inside that is invisible to an outsider. This is by no means a guarantee but having industry experience can minimizes potential missteps that are not clearly visible to the outsider. Klondike (Yukon) Gold Rush One of the most interesting comparisons that I can make to todays rush to entrepreneurship is that of the Klondike Gold Rush. Once the news leaked out that gold was discovered in Dawson City in the Yukon in 1896, the stampede was on. Much like social media does today, newspapers from around the world wrote extensively about the bonanza. So much so, that in one San Francisco newspaper it was front page news for over a year. It is estimated that between 100,000 and 300,000 people from around the world, regardless of their experience, quit their jobs, left their families, and headed out on the year long trek to claim their share of the riches. Sadly, many did not get far. Of the potential 300,000 who set out, only 100,000 thousand actually made it to the Yukon and only 30,000 of them got to Dawson City. It is interesting to note that of the 30,000 who made it to Dawson City, only 2,000 actually found gold and only a handful of those returned home with any. Access to Yukon in those days required the gold seekers to travel north via ships from ports along the Pacific west coast to Skagway Alaska. This was the jumping off point to the Yukon, but even if you made it this far, many Stampeders, as they became known, were in for a rude awakening and ended many a dream. Beginning in 1896 the Canadian government would not allow entrance into the Yukon unless the individual had a year’s worth of supplies to sustain themselves. This is one of the reasons that tens of thousands of people c...

The ability to think is a key trait of successful entrepreneurs. Thinking is not to be confused with worrying, because worrying is fraught with emotions. With busy days, entrepreneurs need to find time and a place to think in order to find the solutions they are seeking.

Pivot! Just pivot! That’s what your being told if you’re having challenges running your SME. It’s another one of those words that actually had value once upon a time. Now, it’s so abused that’s it’s nothing more than a throwaway statement by individuals who want to sound like they’re offering intelligent advice, but really aren’t. Realistically, most businesses can’t pivot.If we’re to be honest, most individuals have a heck of a time coming up with one idea that they can get excited enough about to take the plunge.… Read More

This is a guest post by Dennis Geelen of Zero In.Take a minute and think of a few companies that pop into your head that were once seen as leaders in their industry but, for one reason or another, eventually came crashing back down to Earth.  Maybe they have since been surpassed and are no longer a household name.  Perhaps they filed for bankruptcy. … Read More

Money, it’s one of those personal topics that many people are uncomfortable discussing. Why that is, varies from person to person.Even inside a business that uncomfortableness exist, but that needs to change. Generally speaking, the only time the subject of money seems to ever comes up is in the heat of the moment in comments such as “Do you know how much that costs?”.… Read More

I’ve been wanting to golf at a rural course for a number of years now. The reason is that this golf course now sits upon farmland that was once owned by two of my uncles. I had spent a lot of time of these farms as a kid growing up and I had only played the course once many years before and my memory suggested it wasn’t a bad little course.… Read More

Work from home is not a new concept. People have been looking for any excuse to do so since the turn of the century. Initially, Friday’s was the defacto work from home day. It’s popularity was driven mostly to get a jump on the weekend, more so than trying to get distraction free time in order to get caught up. For evidence, just check the highway traffic on Friday’s afternoons during the summer, as people are fleeing the city.… Read More

For many Covid-19 has temporarily changed the way business is done and for others those changes will be permanent. This is both good and bad. The good is that for those that adapt, they will find news ways to do business. The bad is that for those who remain steadfast in their ways, they may not survive. This brings me to today’s topic, discounts.… Read More

Those of you that know me and have either purchased my book or attended an event that I have spoken at, know that the advice I share is based on getting the basics right. By getting the basics right, you can grow your business and your leadership skills that allow you to attain a high level of freedom by removing the shackles of ownership.… Read More

Covid-19 is creating utter chaos for many small business owners. Fear is taken hold of many owners as they wonder what’s next? No one knows when or if they’ll reopen. Most don’t want to admit out loud what they are secretly thinking-bankruptcy. It’s just too difficult to fathom.Making any kind of decision while under duress is never a good idea.… Read More

Conference CallsThe outbreak of Covid-19 has got the world on lock down and many employees have transitioned to working at home. With that, many entrepreneurs are holding daily conference calls to keep teams connected.The upside is many employees are having greater communication with their managers than they previously had. Unfortunately, many owners have never participated or hosted conference calls and in my conversations with participants, I’m hearing that many of these calls are bit chaotic and frustrating.… Read More

A few months ago, I finally did something that I had longed to do but just never got around to it. Not quite a bucket list item, but pretty close. That something was to drive a race prepared car on a closed road course. Calabogie Motorsports offers just such a program. The road course is just a hair over 5 kms that has 20 turns and enough of a straightaway to get you to question your sanity.… Read More

Shrink to greatness is a phrase I’ve often had to use when working with clients. To be honest, it’s rarely received well by those I’ve had to tell because everything we read about how to be successful in business says you must grow. So, this contrarian approach can be a little challenging for the recipient to accept as it goes against everything they’ve been led to believe.… Read More

What if, you had the chance of starting over? What if you could reboot your business? What would you do differently? Theses are questions that I regularly ask small business owners, especially when I come across those that are struggling, stressed out and unhappy.The answers I get range from, “I’d hire better people” to “I would not have tried to grow so fast”.… Read More

Burnout is one of the leading causes of small business failures. The thing about burnout is that it usually gets justified as just hard work. Of course, entrepreneur knows that being self employed is going to require sacrifices and therefore, burning the candle at both ends is the price of admission to a better life. To that I say, yes and no.… Read More

This is a guest post by Robert Fraser of Senior Exec Consulting an IT expert. e-Transfers have been a wonderful convenience, especially as a small business, however there are some startling security issues. So lets be honest, most of these can be traced back to lousy security habits on behalf of the person sending the e-transfer. Email systems being hacked and just plain bad passwords.… Read More

Opportunities are like buses, if you miss one, another one will be along in a minute. That saying has a lot of truth in it, and although I hate missing an opportunity, I’ve found out over the years, not to lose any sleep over it, because it probably wasn’t meant to be. Good or bad, I’m wired to be constantly on the lookout for opportunities.… Read More

I recently had some time to kill between meetings and I was hungry. So, I decided to go to a local diner. I figured I could use the time to do some writing. One of the reasons I chose this location is that I knew they had free Wi-Fi and I needed to access some information online with my laptop. After I was seated, order taken, and beverage served, I flipped open my laptop and attempted to connect to the Wi-Fi.… Read More

I’ve been considering this topic for quite some time but wasn’t sure it was worth addressing until a recent trip to New York City. Having been out to dinner, we returned to our hotel and were waiting for the elevator to make its way to the ground floor. When the door finally slid open there was a young lady getting ready to disembark.… Read More

Technology has been an amazing boon for businesses of every size, but none more so than for small businesses. Having come of age as an entrepreneur through the technology evolution, it’s truly amazing that what once took days by many, is now done in minutes by one person. The development and ease of use of current technology now allows small businesses to compete with much larger organizations.… Read More

In the movie Top Gun, Maverick and Goose are flying in close formation with Iceman in a training manoeuvre as they try to shoot down a much nimbler fictitious Russian MiG fighter. Maverick having been accused of abandoning his wingmen in the past, is sticking tight to Iceman but clearly has “the shot”. Maverick pleads with Iceman to break off and let him take the shot.… Read More

  We all know how much work it takes to survive, let alone thrive as an entrepreneur. We have all put in the long hours and have faced disappointments along with the successes that come with the territory. Some days, you’re just freaking awesome. On others, not so much. It just feels like you’re taking one step forward and two steps back.… Read More

Small business owners are faced with a myriad of challenges every single day. If it isn’t sales, then it’s receivables and if it isn’t receivables, it’s operations. Add to this the hundreds of thoughts they are juggling trying to sustain their enterprises. Always at the top of their worry list is how to keep their staff focused and motivated. Unlike much larger corporations, small business owners usually don’t have the financial resources to implement sophisticated incentive programs.… Read More

We all learn lesson throughout our working lives. Some are good lessons, some are a little painful. Some of those lessons we remember, some we forget. Hopefully, we learn to apply the good lessons as frequently as possible and not repeat those painful ones too often. One of those lessons I learned a long time ago, was to play the long game when it comes to sales.… Read More

In the movie City Slickers, Jack Palance’s character Curly and Billy Crystal’s character Mitch are riding along having a bonding moment, when Curly turns to Mitch and asks, Curly: Do you know what the secret to life is? Mitch: No What? Curly: This! (As he holds up one finger) Mitch: Your finger? Curly: One thing. Just one thing. You stick to that and everything else doesn’t mean (expletive).… Read More

In its heyday, the Kodak company used the following tagline in their advertising: “Make it a Kodak Moment!” This phrase was used when taking a picture of someone at a particular moment that will never be forgotten. It even made its way into everyday use to highlight anything good or embarrassing that happened to an individual, even when it wasn’t captured on film.… Read More

A constant refrain that I hear from business owners is “they should know better!” “They” of course being any or all the employees that screwed up. Naturally, when I hear this statement, I just can’t leave it alone and therefore I need to challenge it. At which point the conversation goes something like this, Client: They should know better Me: Really, why is that?… Read More

READING TIME: 5 minutes Discipline is not always a strong suit when it comes to describing many entrepreneurs, it just goes against their rebel nature. One of the main reasons they went out on their own is because they figured they could do a better job, make more money and have a better life, but to do it their way. For many, their jack of all trade, get it done, whatever it takes the attitude, helped them launch their business, but this, not an enduring strategy if one wants to create a sustainable business.… Read More

I have worked with hundreds of entrepreneurs helping them to shape their businesses into their vision. One problem that I frequently come across is the quality or I should say, the lack thereof of some 3rd party service providers e.g. bookkeeping, IT specialists, etc. For the record, I’m all about outsourcing non-core or mission-critical activities to individuals who specialize in a given area.… Read More

Someday I’ll be able to slow down. Someday I’ll be able to take more than just a couple of days off. Someday, someday, someday. This refrain is repeated daily by millions of overworked and underpaid entrepreneurs. Some feel trapped in a design of their own making. Others feel they have traded their soul or some other part of their being for the sake of their company.… Read More

Why is it that so many owners think they and they alone have all the answers, to every problem in their business? When you consider that most owners started their companies as the only employee, it’s easy to understand how this attitude got started but why it continues is the question? Granted, there will always be those technical, legal or safety issues that require the owners input, but what about those day-to-day operational, sales and marketing challenges that arise?… Read More

Reading time: 3 minutes Many successful entrepreneurs get asked, “What was their defining moment?” or some similar question. Several have never even thought about it, nor can they easily identify that special moment. Those that do, will admit that they didn’t recognize it at the time as a defining moment, because no trumpets blared or some similar event. It was only through hindsight that it became evident.… Read More