The Importance of Quality Over Quantity

Quality over quantity – it’s a simple concept taught to us throughout our formative years – but it’s one that fits like a square peg in a round hole in today’s corporate environment. The reason that it’s so hard to emphasize quality over quantity is simple – businesses are established to make money as quickly as possible and at the highest possible margins. Crafting single high quality products tends to be expensive and time consuming, and must be sold at much higher, less attractive prices to the average consumer in order to be profitable. Lower quality work, produced quickly in outsourced factories with a minimal time commitment per product, tends to be far more profitable, with higher margins as well as a lower, more attractive price point for consumers. Well-known adopters of this business model are Wal-Mart and Target. However, business managers shouldn’t entirely overlook the importance of quality over quantity. If your product becomes known for its shoddy construction – and due to the Internet, word travels fast – your overall sales will be quickly damaged. Modern consumers are likely to scout out opinions online before purchasing goods – wouldn’t you rather that they be greeted by a stream of favorable comments as opposed to a flood of angry ones? If your product is too cheap, it can also get easily lost in the bargain bin at Wal-Mart alongside a plethora of shoddy, similarly named foreign-made products. Let’s take a look at a few examples where quality over quantity has prevailed. In the auto industry, BMW’s business model of selling well-crafted luxury cars in tiers has become a standard for companies wishing to emphasize product quality. BMW offers its flagship vehicles in three flavors – the compact 3 series, the mid-size 5-series and luxury 7-series – all aimed at different markets. In addition, it sells sporty Mini hatchbacks as well as the ultra-luxurious Rolls-Royce in order to appeal to the lower and higher ends of the pricing spectrum, respectively. BMW’s clear separation of its tiers, all while retaining an aura of overall luxury, was the inspiration for Steve Jobs when he returned to Apple in the late 1990s. At Apple, Jobs mimicked BMW’s tiered pricing system with his computer and iPod lines. BMW and Apple are shining examples that offering a quality product on multiple pricing levels can attract the maximize amount of customers at premium prices. A large part of product quality stems from product design. You need to have a product design team that can create attractive designs while keeping costs under control. Your aim should be to create the illusion of an expensive product which is actually cheap to manufacture. This does not mean to cut corners and decrease quality. Instead, you should decrease the amount of necessary components, streamline the design and eliminate redundancies. Johnathan Ive, the head designer at Apple, is a master of this concept. By simply replacing the cheap plastic exteriors of its computer products with sleek, airbrushed aluminum and minimizing the amount of visible screws, he set his products miles above the rest, and customers lined up to pay the “Apple premium” for his futuristic looking products – such as the iPad, iPhone and iMac. Customers will come back if your product feels good in their hands. Quality over quantity – it’s an age old lesson that too many of us choose to ignore. Although sacrificing the former for the latter may grant you a few short-term profits, you’ll quickly run out of steam when customers fail to come back. Favoring quality over quantity will increase your company’s reputation and increase product loyalty, which will keep your business sustainable in the long run.

Effective Sales Techniques for Small Business

You must believe in what you are selling. Be passionate about your business and your customers will be excited too. As you build your sales team, keep in mind that every person has a unique method of selling that suits his or her personality. Train your staff on how to handle the special customers that may require special care.

Low pressure selling

Pushy high pressure sales people are dreaded by most buyers. Educate your customers about the features and values of your product. If possible, bring an item with you on sales calls to show and tell. Demonstrating your product in person allows the buyer to test out the product and will make your visit memorable. Explain why they should buy from you. Never talk badly about the competition. Keeping the focus on your company and what it has to offer can pay more dividends than forceful sales tactics.

Listen to your customers

Ask questions and let the client do the talking. Give them your undivided attention and find out what is most important to them. Once you get an idea of what they’re looking for in a product or service, you can adjust your sales pitch accordingly.

Helping buyers save their company money is usually one reason. Providing them with exceptional customer service and prompt delivery might be at the top of their list. Listening to your customers requests could open the door for additional products and services to increase your business.

Know Your Business

Not just your company, but the industry. Keep abreast of new technology and products related to what you are selling. Let your customers know you are educated in all aspects of the industry and they can come to you if they have any questions.

Build a Relationship

Get to know your customers. In a world of big box stores and online competition, you can remind customers that they are not just a number, they are special. Pay attention to their interests and hobbies. Keep a file on each customer to remind you of the little things before you call them. It is a friendly way to show them you care, and may produce a few extra deals.

Keep in Contact

How often you call or visit your customers may depend on the type of business you have. Pay attention to spending habits and pay them a visit just before their next order is about to be placed. Keep all customers informed of new products and services as soon as they are available. Be sure you let them know they can contact you if they have questions. Provide the client with your cell phone and email address. Staying up to date with their product or service needs could give you the edge you need to beat out the competition.

Customer Relations Management System

Customer history records are important to all facets of your business. Records can be stored manually in the office, but to be more productive, consider a customer relation management system can be accessed by your employees, as well as clients. Organize your customers starting with the initial contact point. Buying trends can be monitored by watching dates and quantities of each order. Praises, complaints and customer service issues can also be entered and resolved by approved staff members.

Ask for the Business

Whether you are on the phone or making a personal call, always ask the customer for an order at the end of your visit. You’ve likely done the leg work – don’t miss out on an opportunity.

Top 10 Management Mistakes

Managers come from different walks of life, possess various characteristics, and have their own philosophies regarding how to manage a business and employees. In a broad sense, there are common mistakes made by managers at different levels and in various types of businesses. The following are 10 of the most common management mistakes.


1. Putting policies ahead of people: The smaller the organization, the larger the mistake this is. Policies are made to be followed, within reason. Some flexibility with employees, particularly in a small company, is important. An even bigger mistake is standing behind policies at the expense of losing loyal customers. Weigh the significance of standing behind your policy in each situation. If it is a matter of physical safety or security, policies must be upheld. However, in many other instances, there are reasonable solutions that will not alienate the customer or create a strained relationship with your employee(s).

2. Lack of communication: In any industry, at any level, communication is key to being a successful manager. Employees need to know what is expected of them and when specific projects or tasks need to be completed. Communication needs to be clear, and any questions that arise need to be answered.

3. Failing to hear what your employees have to say: Managers make the mistake of listening but not always hearing what their employees are saying. To manage effectively, you need to understand the needs and concerns of your employees.

4. Not acknowledging that you do not have all the answers: A good manager does not make the mistake of trying to solve every problem. Seeking help from individuals with expertise in specific areas is a sign of strength, not weakness. In addition, a good manager must understand that his or her way is not the only way to do the job.

5. The glass is always half empty: Managers who continually focus on the negatives, without recognizing positive achievements or employee accomplishments, end up with employees who are not motivated and often have one foot out the door looking for a more positive work environment.

6. Not accepting responsibility: A common mistake made by managers is to either delegate blame or simply not accept responsibility for that which happens under their guidance. Eventually, avoiding responsibility will catch up with a manager and usually not bode well for his or her future. Being in charge means taking responsibility for whatever happens.

7. Favoritism. Once a manager has obvious favorites, he or she loses credibility and the respect of the rest of the team.

8. Just do it. The Nike slogan does not work when employees are trying to gain an understanding of the process or project. Rather than expecting your team to simply work blindly on tasks they do not understand, a good manager takes the time to explain what the project is all about and how the team's work is incorporated into the plan. Remember, the more the team is invested in a project, the better the results will be. full version on request, send mail to: adejuyigbe.francis@gmail.com

Internet Solutions Ltd Recruiting IT Sales Professional

Internet Solutions Ltd Recruiting IT Sales Professional

Internet Solutions Nigeria Limited, a reputable, professional IT business focused on providing best of breed IT infrastructure solutions to businesses is in urgent need of IT SALES PROFESSIONALS.

As an end user provider, they provide a broad range of connectivity services and integrated solutions, sales and support, managed wireless solutions, network and user security, IP infrastructure, VoIP, telemetry solutions, video conferencing solutions and much more.

An IT SALES PROFESSIONAL is needed to help spearhead growth. This role comes with an excellent commission structure and great working environment.

Job Title: IT Sales Professional

Essential Responsibilities:

Generate new business sales revenue by selling IT solutions and VAPs

Help develop the company’s profile and reputation

Responsible for a number of key accounts and support other accounts.

Working in conjunction with the sales manager to maintain current client relationships and encourage repeat business

Maintain high level of Customer satisfaction

Exceptionally skills at cold calling

Qualification / Requirements

BSc/HND in Computer Science, Marketing or other related field

Minimum of 3 years practical sales experience

Must have proven track record of selling IT infrastructure, hardware and/or software solutions

Must be confident, possess good character and charm with good communication skills; a positive persuasive personality and diligent attention to details

Fluent in English.

Application Deadline
16th of March, 2012.

How To Apply
Send a copy of your CV to: funke@internetsolutions.net.ng with a valid email and telephone number.
Only shortlisted candidates will be contacted.

REVENUE ALLOCATION TEARS NIGERIA APART

Since 1954 when Nigeria became a federation, revenue allocation formula has always been a knotty issue, causing some resentments and frictions in the wheel of the nation.

Recently, the Niger State Governor and Chairman of Northern Governors’ Forum, Dr. Babangida Aliyu, stirred the hornet’s nest, when he attributed the underdevelopment of the North to the paltry allocations the states in the region receive from the federation account. He called for the scrapping of the 13 per cent derivation given to oil-producing states in the South, so that the states in the North will get more for development.

Governor Aliyu was echoing what the Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, had said in an interview with Financial Times of London. The CBN governor said that the low financial allocation to the northern states was the major reason for the underdevelopment and activities of such groups as Boko Haram. Indeed, since Sanusi flew the kite and followed by Aliyu’s outburst, the arguments have polarised the nation along North and South divides, especially coming at a time when the agitation for restructuring and convocation of a national conference has reached fever pitch.

Genesis

When Sir Arthur Richards (Lord Milverton) divided Nigeria into three regions, in 1954 and Nigeria became a federation, a commission headed by Sir Louis Chick was set up the same year to work out revenue sharing formula. The commission recommended that the total revenue available to Nigeria be allocated in such a way that the principle of derivation be followed to the fullest degree, for the purpose of meeting the reasonable needs of the centre and each of the regions, among others. The 1954 federal constitution embodied most of the recommendations of the commission, especially the derivation formula.

Chick’s formula was in operation from 1954 to 1958, when another commission headed by Jeremy Raisman was set up to replace it. The Raisman Report played down considerably the principle of derivation and instead placed great emphasis on population, which is regarded as an approximate index of fiscal need. It also emphasised the basic responsibilities of the regional governments as well as the need for an even development of the country as a whole. This recommendation was taken and thus the whole revenue allocation formula was reversed. This was the situation until independence.

The next fiscal review commission was appointed in 1964 and was headed by Binn. The report of the commission was not published until 1965. When it came out, it still emphasised on the use of the principle of fiscal need.

In May 1966, the military government under Major General Johnson Thomas Aguiyi-Ironsi abolished the federal system of government and formed a unitary system of government, with the centre taking lion’s share of the resources from the states. After the counter-coup of July 1966, General Yakubu Gowon promulgated a decree abolishing the unification decree of Ironsi and restored Nigeria to federal system of government.

However, the Nigeria did not go back to the old four regions that controlled their resources. The military legislated for the whole country. This was the situation until the May 27, 1967, when the military Decree No. 15, empowered the government to carve out 12 states out of the existing four regions.

Owing to the prevailing situation in 1967 during the creation of 12 states, what obtained was to subdivide federal transfers to each former four regions among the states in a particular region. This arrangement met with stiff opposition and criticisms because of its arbitrariness. This initial creation of states and subsequent ones saw the centre getting stronger while the regions, as replaced by states, are getting weaker.

Against the background of revenue sharing being an agitated issue, the Federal Military Government appointed, in July 1968, an interim allocation committee headed by Chief I. O. Dina, who submitted its report in February, 1969. The committee recommended that in distributing resources the fiscal needs of the states should be the determining factor. This is mainly on the side of distributing oil revenues.

It recommended that only 10 per cent, as against 50 per cent, should go to the mining states, while the remaining 90 per cent should go to the other states through the Federal Government. The government never implemented this recommendation of the commission. Rather, during the period, between 1969 and 1974, the government relied on an interim allocation arrangement.

In 1975, the Federal Military Government promulgated the Revenue Allocation Decree to reverse the situation. This was a departure from the principle of derivation. The non-oil producing states benefited more from this arrangement.


During the Second Republic, President Shehu Shagari, in 1980, set up a commission headed by Dr. Pius Okigbo. It was the first in presidential system of government in Nigeria. The commission significantly raised the revenue of some states at the expense of others and, therefore, it negated the idea of balanced development in the country.

The Supreme Court of Nigeria invalidated the Okigbo commission’s recommendations. However, the revenue Act that was passed by the National Assembly in 1981 was based on the commission’s report. According to the Act, the Federal Government was to receive 55 per cent of the allocation. State governments were to collectively get 30.5 per cent and local governments, 10 per cent. The remaining 4.5 per cent was for special funds. With this, the derivation principle was discarded in revenue allocation scheme.

The military government that took over from Shagari continued in arbitrary sharing of revenue. However, attempt to address the ecological problems caused by oil exploration in the Niger Delta received a boost, when, in 1992, the military government of Ibrahim Babangida established Oil Mineral Producing and Development Commission (OMPADEC).

During the build-up to the return of civilian government, because of the restiveness in the Niger Delta region, there was apparent concern about the declining security situation in the region arising from increased agitation from the oil-producing communities and its consequent threat to the economy.

This made the 1995 Constitutional Conference to recommend that in sharing the revenue, 13 per cent should be set aside as derivation revenue to assist the development of oil-producing communities. The intention was very clear: to financially empower the oil-producing states of the Niger Delta to tackle the monumental neglect and degradation of the area.

The now contentious 13 per cent derivation principle was enshrined in the 1999 Constitution. The affected states started getting the 13 per cent from April 2000, 10 months after the implementation of the 1999 Constitution on May 29.

It was not yet Uhuru for Niger Delta as the region had to contend with another issue: onshore/offshore dichotomy in oil revenue. They considered this a betrayal.

In 1978, the then military government of General Olusegun Obasanjo passed a decree, known as the Exclusive Economic Zone Act. The thrust of this decree or act is in Section 2(1), which states: “Without prejudice to the Territorial Waters Act, the Petroleum Act or the Sea Fisheries Act, sovereign and exclusive rights, with respect to the exploration and exploitation of the natural resources of the sea bed, subsoil and superjacent waters of the Exclusive Zone rest in the Federal Republic of Nigeria and such rights shall be exercisable by the Federal Government or by such minister or agency as the government may, from time to time, designate in that behalf, either generally or in any special case.”

The Federal Government interpreted this provision to mean that revenue derivable from offshore production of oil cannot be credited to the states to which that offshore geographically belongs, using the Offshore Revenue (Registration of Grants) Act, 1971 Cap. 366 LFN. 1990 as guide. On the basis of this interpretation, the Federal Government split oil revenue into 60 per cent: 40 per cent as on-shore/off-shore revenue and proceeded to base payment of the minimum 13 per cent derivation revenue from the 60 per cent. In effect, the Federal Government paid 7.8 per cent of oil revenue as derivation rather than the minimum of 13 per cent enshrined in the Constitution.

This issue of offshore/onshore was finally resolved by the Supreme Court that gave the offshore resources to the contiguous states and this is why some states, particularly, Akwa Ibom, River, Delta and Bayelsa go home with jumbo allocations.

If the report of the 2005 Constituents Assembly set up by former President Olusegun Obasanjo saw the light of the day, the cry by the northern interest groups would have been louder because the oil-producing states demanded 50 per cent as against current 13 per cent. The Constituent Assembly resolved to give to them 25 per cent. This was not, however, implemented.

The constitution headache

It is only a review of the constitution that can alter the present revenue formula, as it concerned derivation. It is going to be a Herculean task for the North to have its way.

The Niger Delta is still not satisfied with the present 13 per cent and like Oliver Twist, are asking for more, while other states in the South are calling for a return to the arrangement when the regions, paid in 40 or 50 per cent of their resources to the centre. They want they states to now take over the resources and pay the Federal Government 40 or 50 per cent of it.

When this scrapping or alteration of the 13 per cent derivation principle appears on the amendment list of the National Assembly, tribal and ethnic chauvinism would override national interest among the legislatures, as they would be divided along ethnic lines. Those from the North would push the amendment, in their favour, while those from the South would resist it.

At the state Houses of Assemblies, the 17 southern states would likely vote against any amendment in this direction, thereby stalling such proposal. The states in the South may also demand a review of sharing of revenue from Value Added Tax (VAT) as over 60 per cent of the industries that generate VAT are in the South.

Another issue that is associated with revenue sharing is the local governments. At present, the North has more local government areas than the South. This means that the North gets more funds accruing to local governments than the South.

What Business Structure Should You Choose?

As you plan starting up your own business, one of the first decisions you need to make is the formal business structure you will assume. Which structure you choose depends on your industry, growth goals, and how many people you plan to involve in your company. It is important to have a full understanding of the business structure you take – but at the same time, I caution you to avoid paralysis through analysis. Make an informed decision and get back to focusing on starting and nurturing the growth of your business.

The following are six types of business structures you could choose from.

Sole Proprietorship

This is the easiest type of business to start. There are no incorporation forms to file or fees to pay with the government. You pick your business name, and get to work. With a sole proprietorship, you avoid double taxation that occurs in corporations as every dollar you earn hits your personal income tax. You pay no corporate income tax.

Because of the ease of starting this type of business, there is a larger amount of risk involved due to the lack of incorporation. How much risk? You are personally liable for everything done in the business’ name. You can hire employees as you would with any other business, but if they damage someone else’s property you can be personally sued for the damages. This puts everything you own at risk.

Partnership

A partnership is where two or more individuals formally agree to do business together. Partnerships are very easy to form, and the income earned from the business is filed on the individual partners’ tax returns. As with a sole proprietorship, you pay no corporate income tax and avoid double taxation.

However, as with a sole proprietorship, there are risks involved. Partners are personally legally liable for not only their actions, but the actions of all general partners. For example, if your partner takes on a business loan, you are also responsible in seeing that it is paid back.

Corporations and Limited Liability Businesses

There are several types of corporations and limited liability business structures that can be used to avoid some or all of the business’ liability undertaken with a sole proprietorship or partnership.

C Corporation

In this business structure, you pool your money together with other shareholders and are given stock in the newly formed business. A C Corporation is viewed as a completely separate tax entity in the Internal Revenue Service’s eyes, so your business can take tax deductions just as an individual would. This also means your profits will be taxed twice: once at the corporate income tax level, and then again when the corporation pays you via salary, bonuses, or dividends. Since the C Corporation is a separate entity, your personal liability is limited.

S Corporation

An S Corporation is a legal entity formed just like a C Corporation with the added bonus that income flows directly to your personal income taxes through what is called “pass through” taxation. There is no double taxation. This structure is especially nice because your liability is limited to that of a regular shareholder, but you only pay tax once.

Limited Liability Corporation (LLC)

An LLC is a state allowed business structure that mixes the benefits of sole proprietorships and corporations while removing - To have a full version of this article, please indicate interest by mail to: adejuyigbe.francis@gmail.com or call: 07093175098

How to Select an Online University

The process of choosing the best online university is not an easy one. But the temptation many students who are new to the process fall victim to is a focus on the end product of higher learning – the degree – and a neglect of the considerations that go into earning it: skills, new resources, career opportunities and a fresh outlook.

At a physical university, these things are a given, with students sitting side-by-side with others and progressing through the coursework together. But sometimes this isn’t the case with online universities that often use message boards, email and instant messaging to communicate between students and instructors. In the process, the connectivity – often cited as a huge component to the learning process for many students – is lost.

Online course offerings vary from school to school, with some providing little to no physical interaction while others offer extensive hands-on experience and direct instruction from teachers. So depending on your abilities and desired level of involvement, it’s important to find the style of instruction that works best for you.

As the process of distance learning continues to grow in popularity, modern universities are dedicating more focus to the experience of learning, adapting many of their successful existing degrees and programs to an online format. So when comparing programs, you should be on the lookout for a single word: accreditation.

Accredited Universities

Simply put, when it comes to investing in online education, you want the best. Just like anything else you buy, products and services produced by quality firms will usually beat out the generic competitors due to a higher level of commitment to quality. The same is true of online universities. And accreditation is a university’s stamp of approval.

An accredited college adheres to a nationally-recognized curriculum and, among other contributing factors, maintains that accreditation through the continuous education of their instructors. Accreditation also greatly impacts the availability of financial assistance, often a major consideration that enables students to achieve their educational goals.

With online education, this becomes exponentially more important. Accreditation deals with far more than just the quality and reputation of an online degree. It’s a direct indicator of how and if your college credits will transfer to other higher learning institutions and, more importantly, if employers will recognize a degree or certificate in consideration for employment. In addition, accreditation is often viewed as a crucial component when determining the transferability of credits, as well as the recognition of qualifications and conferred degrees.

However, if you’ve conducted your research and found that the university offering the program you need is not accredited, don’t give up. Not all online colleges are accredited. Many legitimate universities are either too new to be granted accreditation or they’ve chosen not to pursue it. So if the college you’re interested in is not accredited, do a little extra digging to determine whether or not the program they’re offering is legitimate.

Three Effective Management Styles

Being an effective manager means knowing when to use the right management style. Some styles, for instance, are more people-oriented, while others tend to focus on a project or product. The management style you select will depend on your people’s skills and knowledge, available resources (like time and money), desired results, and, of course, the task before you.

Your job is to select the management style that works best for any given situation. Managing without a specific style geared to a specific set of circumstances can slow you down and even lead to costly mistakes.

Get your people to do their best work by using one or more of the following effective management styles:

1. Participatory Style
Here, it is critical to give each employee an entire task to complete. If that's not possible, make sure the individual knows and understands his or her part as it relates to the project or task. When people on your team know where they fit in the big picture, they're more likely to be motivated to complete the task.

Take the time to explain the details and why their role is important. Get their input on the task and its significance. This will give them a sense of value, and hopefully, encourage them to take ownership of their piece of the project. Do your best to make sure your employees understand the tasks. Ask questions that might seem obvious; the asking alone will reinforce an employee’s understanding of the work.

If your tasks are divided among groups, coordinate each group’s contribution so that everyone knows where and how they fit in. Make a concerted effort to minimize obstacles and difficulties that arise. Let people know that you’re happy to clear their paths so when a problem does arise, you are informed in a timely manner.

Reward not only jobs well done, but motivation as well. This will maintain the momentum and let people know that you have faith in their efforts.

2. Directing Style
Sometimes a situation will call for a direct style of management. Perhaps a tight deadline looms, or the project involves numerous employees and requires a top-down management approach. Here, a manager answers five questions for the employees: What? Where? How? Why? and When? Let them know what they need to do, how they’re going to do it, and when they must be finished.

This style may seem cold and impersonal, but you still have an opportunity to be a motivating and accessible manager. For example, when you assign roles and responsibilities, provide helpful tips or share experiences you encountered with a similar project.

With this style, don’t be afraid to set specific standards and expectations. Your communication, therefore, must be detail-oriented, unambiguous, and free of buzzwords and jargon. You also need to set clear, short-term goals like, “Your goal is to complete three reports a day.”

In addition, be willing and able to make decisions quickly. Midway through a task, for example, you may direct someone to switch from doing one thing to another. Let your people know from the outset that this may occur; it will help them transition more smoothly. Make sure, as well, to reward and recognize jobs well done.

3. Teamwork Style
If you want to expedite a project and optimize a process for completing that project, managing by teamwork is the way to go. When you motivate people to pool their knowledge, the results may exceed your expectations. Often, teams can tackle problems more quickly than what you can accomplish on your own. The give-and-take can create a process that you can replicate in other projects.

Remember that successful teamwork depends on coordinated efforts among the staff, as well as solid communication skills. Reports must be clear and concise. Presentations must convey information that leaves nothing unanswered. Understanding logistics is critical, too. Probably most important, however, is your willingness to credit the team for its success and independence, rather than your savvy management skills.

Indeed, when you get around to employee evaluations, remember to recognize those who were able to collaborate and maintain a team spirit, especially under pressure.

Leadership

The activity of leading a group of people or an organization, or the ability to do this. In its essence, leadership in an organizational role involves
(1) establishing a clear vision
(2) sharing that vision with others so that they will follow willingly
(3) providing the information, knowledge, and methods to realize that vision and
(4) coordinating and balancing the conflicting interests of all members or stakeholders.

A leader comes to the forefront in case of crisis, and is able to think and act in creative ways in difficult situations. Unlike management, leadership flows from the core of a personality and cannot be taught, although it may be learned and may be enhanced through coaching or mentoring.

The individuals who are the leaders in an organization, regarded collectively.

Leadership is in the Entrepreneurship, Management & Small Business and Information & Knowledge Management subjects.

Leadership appears in the definitions of the following terms: dominant leadership, Harvard Business Review, coach, paternalism and criterion-related validity.

Top 5 Must-Read Books for Business Leaders

Running and growing your business is a time-consuming effort that saps you mentally and physically. You might think taking time out of your busy week to read would fall so low on the list of priorities that you would never do any reading at all! However, great business leaders know that one of the tasks you can get the greatest boost to your bottom line from is reading great books. By furthering your business education and knowledge through reading, you can implement what you learn in your business and reap significant rewards.

Here are our top 5 books on leadership in business.

Good to Great by Jim Collins

This incredibly well researched book — 5 years of research — takes Collins and his research team through a list of 1,435 companies in an attempt to narrow down why some companies made it and others didn’t. They end up with 11 organizations that beat out other organizations that often started out in better position. The research goal was to determine what characteristics, including those of the leaders within the business, enabled the firm to survive and thrive while competitors failed. Don’t let the word research fool you; this is an engaging read that tells 11 fantastic stories.

Wooden on Leadership: How to Create a Winning Organization by John Wooden
John Wooden won an unprecedented 10 NCAA basketball championships during his coaching career. He brought together players of differing backgrounds and extracted every last drop of effort from them. Wooden’s success was built on his 12 Lessons in Leadership and his Pyramid of Success (25 habits that lead to personal excellence), and this book takes you through his thoughts on leadership.

The Five Dysfunctions of a Team: A Leadership Fable by Patrick Lencioni

This book was written in a fictional style to best deliver some hard truths to business leaders. Sometimes it is easier to know what not to do than to determine everything you should do. Limiting your biggest mistakes can engage your team better and lead to great results. You’ll learn the 5 biggest mistakes failing teams make, and be able to learn how to avoid them.

The 7 Habits of Highly Effective People by Stephen Covey

Originally published in 1990, this book has topped many best selling lists and has sold over 10 million copies world wide. While focusing not on leading a team or organization, this book will aim to make you personally better both in your job and outside the workplace. However, the great lessons to be learned can be applied to your team back at the office.

First, Break All the Rules: What the World’s Greatest Managers Do Differently by Marcus Buckingham

The rebel inside you has to be drawn to the title of this book. Breaking rules? Sounds great. This book, published in 1999, isn’t based on one person’s perspective of leadership or running an enterprise. Instead the well researched title is culled from over 80,000 Gallup interviews over 25 years. The lessons were taken from both inside the business world and outside in other competitive industries. This book should help you improve in the management of your team.

Management vs. Leadership

Management and leadership skills are often regarded as one and the same to many businesses. While the two inherently share many similar characteristics, they differ in that not all managers are leaders, but all leaders are managers. They are complementary qualities inexorably linked to each other, and any attempt to extricate one from the other is impossible. Whereas the manager exists to plan, organize and coordinate, a leader serves to inspire and motivate. Militarily speaking, a manager is the battlefield general while the leader is the commander-in-chief.

Qualities of a Manager

A manager is considered a copy of the leader, responsible for communicating the rules and philosophies of the company to individual employees, and insuring that they abide by them. For a manager, his or her relationships with employees are determined by a hierarchical management system, and rarely through personal ones. They are responsible for maintaining the day to day operations of the company so the cogs of the operation stay well-oiled. Managers are generally more concerned with the quarterly bottom line, and will often base decisions based on these calculations. Good managers are often considered “good soldiers” in that they rarely question the decisions of the higher echelons of the company, and only serve to enforce the execution of its policies.

Qualities of a Leader

In contrast, a leader focuses on interpersonal relationships with other important contacts in other companies, as well as promoting promising individuals within the company to foster innovation. A leader bases his or her decisions on reports from department heads to assess the entire company’s situation, and future strategies. A true leader will also be willing to ignore the company’s quarterly bottom line for several quarters – much to the chagrin of shareholders – and make investments for a long-range growth perspective. A leader is considered a “fearless innovator” in that he or she challenges the status quo and is unafraid to take high risks in search of high rewards, for customers, employees and shareholders alike.

Comparison Between Managers and Leaders

It is said that a manager asks “how” and “when”, whereas a leader asks “what” and why”. In many professions, managers and leaders assume the same role. However, if a leader of a business simply manages a company – rather than challenge its true potential – then it will likely fall behind its industry peers. Likewise, if managers overstep their bounds and attempt to revolt against the company, then they may soon find themselves out of the job. In some cases, where micromanagement is essential to maximize efficiency, nurture skills and keep employees organized, strong managers are an absolute necessity to prevent high turnover rates and the “brain drain” of a skilled workforce. A good leader will also stay in the front line of battle, and be familiar with every aspect of the company, leading through inspiration rather than coercing through hierarchical control. A perfect manager who attains the status of a true leader will be able to lead people effectively and draw on the correct strengths and knowledge of every key individual in the company. Many managers will struggle for their entire careers and never attain this, but a skilled few will evolve into true leaders.

Keeping an Eye on Your Competitors

It is said that “imitation is the sincerest form of flattery”, but in the world of business, imitation is inevitable, and hardly flattering. For example, Apple’s iPhone and iPad products have been imitated by a number of competitors, such as HTC and Samsung, which have incurred the legal wrath of Steve Jobs and company. Meanwhile, in the video game industry, cookie cutter genres are the norm, with each studio imitating a popular franchise – such as Call of Duty, World of Warcraft or Grand Theft Auto – in an attempt to cash in on current popular trends, rather than shoulder the inherent risks of innovation. Competitors in China have taken imitation to extreme levels, with fake iPods, iPhones and iPads freely available at any major street market. In this world which relies on low-risk and high-rewards, imitation clearly trumps innovation.

However, truly learning from competitors doesn’t mean flat out imitating them. While there is no fault in following the successful trend of a market leader, such as Apple, there is a flaw in slavish imitation. In Apple’s case, its cheaper Android imitators have given Apple the unintended gift of free advertising. People buy Android phones because they resemble iPhones at a cheaper price, but it ultimately fails to satisfy their desire for the real iPhone, which leads to a high turnover rate which benefits Apple. You don’t want to create a product that so closely resembles a competitor’s higher priced model that it causes your customers to view yours as an inferior, cheaper model. However, that’s only a rule of product design.

First of all, be aware of your competitors. Companies often get blindsided by a company which wasn’t perceived as a real competitor until it is too late. An obvious example is cell phone maker Nokia’s fall at the hands of Apple, which had long been perceived as a personal computer company with no interest in mobile handsets. Google also blindsided invincible software giant Microsoft by rapidly transforming from a search engine into a cloud-based software company. In turn, social networking site Facebook hit Google in a blind spot by outgrowing its status as a social site and branching out into all the nooks and crannies of the web, a final frontier which Google had laid claims to. The lesson gathered here is that your competitors aren’t always who you think they are. Besides your normal industry peers, be aware of which hidden companies are threatening to cross over industry lines to threaten your business.

Find several major competitors to follow. Commit your workforce to follow their every move, and try to gauge their business strategies based on their current products, supply chain, pricing and financial condition, if the company trades publicly. For example, Google has been struggling to follow in Facebook’s footsteps with its social network, Google+. You can bet that both companies are thoroughly evaluating the strengths and weaknesses of the other. Facebook has “Like”, therefore Google has “+1”. Google is changing groups into a more user-friendly “Circles” format, so Facebook strikes back by revamping its Groups pages into a new, simpler format. iPhone and Google Apps? Check. Instant photo sharing from smart phones? Check. This kind of rapid fire tit-for-tat is what your company needs to stay competitive and ahead of your competitors. Make sure your products have everything your competitor promises and more – hopefully at a lower price.

Lastly, follow public opinion regarding your competitors. Read its product reviews, and comments posted by real users. Take note of the good reviews as well as the bad, and see how you can use this free advice to modify your own products. Keeping your finger on the pulse of the everyday consumer, who cares enough to post his or her opinions online, can help avoid disastrous product design mistakes. Setting up social networking pages – on Twitter and Facebook – and inviting public discussion regarding your products can keep you well informed about your strengths and flaws compared to the competition.

Developing Organizational Systems for Better Efficiency

Have you ever felt like your business will stop the day you don’t show up? This happens to almost all entrepreneurs at first. Sometimes it’s because entrepreneurs begin by filling every function their business has to offer, from answering the phones to actually making the product. The business actually winds up getting limited by the number of hours the entrepreneur is capable of putting in. Unless something changes, the business stops growing. It also begins to resemble a job—something the entrepreneur absolutely cannot escape from.

This is usually the point where the entrepreneur hires his or her first employee—but often, this doesn’t solve the problem. The entrepreneur gets caught up in trying to make sure the employee does things “right.”

Systems Are the Answer

A system is a specified way of doing things, and it can apply to every single part of your business. You can develop the “best way” to answer the phones and then you can write that way down in the form of a script. From then on out, anyone who answers the phone need only observe the script to answer the phones just like you would. If the employee leaves the company, the next employee just needs to stick to the script. There can be scripts for sales presentations. There can be specific instructions for marketing. These instructions can be as simple as noting that blog posts are written every Monday, direct mailers go out once a month, and follow-up calls happen every Thursday.

As you develop more and more systems you free yourself more and more. You can turn your attention away from performing each function of your business. Instead, you can work on finding other people to perform those functions. You can verify they are following your systems and then you can work on more systems. This is what working “on” your business, instead of “in” your business, is all about.

Systems Give Your Business More Value

When someone buys a franchise they aren’t just buying a brand name—they are buying the specific systems that led to the franchise’s success. Systems are the exact reason why companies like MTN, Chevron, Coca-Cola etc are such as successful today—most of their franchises runs exactly the way every one of them does, regardless of who owns or manages any individual branch. If you develop systems for your company you are opening up the possibility of turning your company into a franchise, creating a lucrative opportunity for your future.

If you’re not interested in franchising, you should know that you may be interested in selling your business one day. Having systems in place, all carefully recorded in an operations manual, will make your business far more valuable.

A lack of systems means you’re really just selling “FFE”—furniture, fixtures and equipment—as well as, perhaps, a location. Offering systems means you’re selling a turn-key business that has been a proven success. The latter is worth a lot more money, meaning you’ll enjoy a much higher return on your hard work and creativity than you might otherwise have.

What is a Sole Proprietorship?

As the name suggests, “sole proprietorship” refers to a business that is owned by a single owner and should not be confused with a corporation. There are no corporate taxes involved and the sole proprietor pays income tax on the profits generated. The person who organized the business pays personal income taxes on the profits made. This makes the accounting procedure relatively simple for the sole proprietor, who also enjoys complete autonomy in terms of making business decisions.

Setting up a sole proprietorship is easy. One of the main steps is to obtain a local business license (a sales tax permit may also be required). For certain businesses, such as restaurants or legal practices, you may need additional local or state licenses. Legal regulations and licenses aside, there are other major factors to consider when setting up a sole proprietorship. You will have to create a business plan, develop marketing and advertising campaigns, set up a budget, and find ways to fund your business.

Advantages and Disadvantages of a sole proprietorship

Many business owners choose to operate as a sole proprietorship to alleviate the difficult tax procedures that go along with other forms of operation. As a sole proprietor, you would simply have to file an individual income tax return (IRS Form 1040) including your business losses and profits. There are no restrictions on the number of people you can hire, and from the tax and legal perspective there is no distinction between you and your business. You can therefore hire as many people as you want and also recruit independent contractors if need be. Being in complete control of their business, sole proprietors make all the business decisions keeping law in mind.

Sole proprietorship is not for every business owners especially business owners that are not willing to assume all risks. Unlike a corporation or LLC, your business doesn’t exist as a separate legal entity. All your personal wealth and assets are linked to the business. Another downside is the inability to raise capital easily. Proprietors cannot sell shares the way other corporations do, so they have to seek out alternative methods to raise the necessary capital to expand their business.

Choosing the best business structure will ultimately impact the success of your business. Setting up a sole proprietorship is the easy and quick way to setup a business, but may not be the best structure for your operation. Make sure you weigh all the pros and cons before deciding if this structure will work for you.

Creativity and Innovation in the Workplace

There was a time when the concept of creativity was only associated with writers, painters, musicians and similar people in artistic professions. But with the ever-increasing necessity of cultivating a unique brand personality, the need for creative thinking has transitioned from the arts into everyday business. In addition, the act of producing a product that distinguishes itself from competitors in a marketplace where differences are often hard to come by demands a high degree of creativity both in innovation and marketing.

As a result, it’s now become commonplace for companies – both large and small – to adopt policies that foster creativity and thereby promote innovation.

But what is meant by creativity? And how can it be harnessed effectively?

There was a time when the concept of creativity was only associated with writers, painters, musicians and similar people in artistic professions. But with the ever-increasing necessity of cultivating a unique brand personality, the need for creative thinking has transitioned from the arts into everyday business. In addition, the act of producing a product that distinguishes itself from competitors in a marketplace where differences are often hard to come by demands a high degree of creativity both in innovation and marketing.

As a result, it’s now become commonplace for companies – both large and small – to adopt policies that foster creativity and thereby promote innovation.

But what is meant by creativity? And how can it be harnessed effectively?

Defining the Creative Environment

Creativity is the mental and social process used to generate ideas, concepts and associations that lead to the exploitation of new ideas. Or to put it simply: innovation. Through the creative process, employees are tasked with exploring the profitable outcome of an existing or potential endeavor, which typically involves generating and applying alternative options to a company’s products, services and procedures through the use of conscious or unconscious insight. This creative insight is the direct result of the diversity of the team – specifically, individuals who possess different attributes and perspectives.

It’s important to note that innovation is usually not a naturally-occurring phenomenon. Like a plant, it requires the proper nutrients to flourish, including effective strategies and frameworks that promote divergent levels of thinking. For example, by supporting an open exchange of ideas among employees at all levels, organizations are able to inspire personnel and maintain innovative workplaces.

Therefore supervisors must manage for the creative process and not attempt to manage the creativity itself, as creativity typically does not occur exclusively in an individual’s head but is the result of interaction with a social context where it’s codified, interpreted and assimilated into something new. Within this system, incentives are paramount – ranging from tangible rewards such as monetary compensation to the intangible, including personal satisfaction and social entrepreneurship.

How to Set Up a Creative Work Space to Foster Innovation

Establishing a creative environment takes more than just turning your employees loose and giving them free reign in the hope they’ll hit on something valuable. As with any other system, the process of creativity requires the proper framework to operate effectively, which also enables management to evaluate the profitability of the results.

Popular approaches to fostering innovation through creativity include:

• Create a stimulating environment. Offices that include stimulating objects such as journals, art, games and other items – some of which may not even be directly related to your business – serve as sources of inspiration. In addition, structuring the work area by removing physical barriers between people will improve communication and promote creative interaction.

• Reward efforts through positive psychological reinforcement. Encourage your employees to take risks, rewarding them for creative ideas and not penalizing them when they fail. In doing so, you’ll enable people to more readily take on assignments that stretch their potential (and that of your organization), discussing in advance any foreseeable risks and creating the necessary contingency plan. Encourage employees at all levels to contribute suggestions for improving current business operations.

• Foster different points of view through outside perspectives. Innovation can often spring from a review of how your customers view and use your products and services. Soliciting their opinions can provide valuable insight into potential areas for improvement as well as areas where you’re succeeding (essential knowledge for positioning against competitors). Other perspectives might include: vendors, speakers from other industries or consumers using a competitor’s products or services.

Business Finance 101

Owning a business can be one of the most rewarding and satisfying ways of meeting financial goals and ensuring that a person’s future is secure and fulfilling. Today’s economy yields many opportunities to people with different skills and strengths. One of the most basic aspects of running a business that is often left by the wayside is that of financial management. Usually only an afterthought, it is the financial management of a company that determines success. The perfect product or service doesn’t mean anything if the money generated goes into the business only to be misused or unaccounted for. Spending the money earned wisely and knowing when to save or invest in growth should be of paramount concern for a business.

Everyone is aware of the fact that most businesses fail within their first year of operation. Often a major contributing factor that leads to failure is poor financial management. A review of the financial information for many failed businesses shows that the business would have actually been quite successful if the owners had just made sound financial decisions in all aspects of the business. It is always recommended to employ the help of a professional like a banking institution, financial planner or accountant. However, a business owner should understand, at the very least, the basic principles regardless of whether a professional is hired or not. This protects the business and the business owner from fraudulent activities. Keeping up to date with the finances and being aware of the principles involved will also beneficially affect other aspects of running a business.

For smaller businesses it may not be practical to hire a professional for all of the financial work, but there are several software programs available that help to educate the owner on basic bookkeeping techniques.

A business owner should be familiar and comfortable with using the following:

• Day to day expense tracking – an owner needs to be able to create and analyze reports that give an idea of the health of a business.
• Accounts Receivable and Accounts Payable – An owner needs to be able to tell when payment is expected and prepare for any outgoing expenditures.

Of equal importance is the ability to determine the current financial state of a business and whether expansion is possible or even necessary due to competition. Being able to identify future trends that can positively or negatively impact a business will go a long way toward helping a business develop staying power in ever shifting market places.

Regardless of the size of a business, the goals of the business and the owner should be kept firmly in mind. While smaller businesses may not immediately benefit or be able to afford an accountant that is an expense that should be worked into a budget as soon as possible. Accountants and even financial planners are able to keep a business on track. They can help to establish realistic long-term goals to increase the chances of success. With the help of a financial professional, cash flow problems can be spotted and tackled.

How a Business and its Employees Can Benefit from Working from Home

Many employees in the everyday grind dream of working from home. Depending on your work responsibilities, however, this can either be a true possibility or a fanciful dream. Home offices can benefit both employees and employers, and lead to decreased costs and increased productivity. Here are some advantages to allowing your workers to stay at home.

For Employees

First, working from a home office is not suitable for all workers. However, with more work being done digitally, huge amounts of work can be completed from a home computer and simply uploaded to the company server or e-mailed to a supervisor.

Obviously, strict deadlines must be set by your supervisor before allowing trusted employees to take company files home. Some companies even use specialized software installed on employee home computers to insure that company secrets are not replicated or stolen.

If you have children, a home office can be a godsend – allowing you to spend more days around them while working. Although you may not be able to do anything extensive with your kids – like take them out to a baseball game – just being around them more is likely to improve your family relationships.

Working at home will also free you up from office distractions – such as chatty co-workers – and allow you to concentrate on the tasks at hand. You may find that you can accomplish much more in the same amount of time at your home office than at your regular workplace. Finishing all your work ahead of schedule can free up the rest of your day – which you can take for yourself or spend with friends and family.

Most companies don’t reimburse their employees’ fuel bills, and working at home can reduce gas bills considerably. It also helps contribute (on a minuscule scale) to sustaining our environment by reducing carbon emissions.

For Employers

Letting your employees work from home might be a micromanaging supervisor’s nightmare. It’s important to make sure you’re sending trusted, experienced employees home, and not the newest guy at the office. Make sure these are people who have consistently made deadlines in the past, and have earned the right to telecommute.

With fewer people in the office, the cost of office materials and utility bills should decrease. Less coffee/tea, toilet paper, pens and paper clips coupled with lower water, phone and electric bills should make any employer smile. You can even reduce the amount of available desks and computers and rotate them among the staff working at the office and the ones working at home. You may even be able to cut out cumbersome phone lines and extensions altogether and opt for an all-Internet workplace, in which office staff and home staff can seamlessly interact with each other via e-mail, instant messaging or Skype.

Allowing more experienced employees to work from home also increases their overall job satisfaction, and as studies show, also keeps them healthier. If your company is paying for their health insurance, your bottom line may benefit from reduced healthcare costs.

Don’t be afraid to renovate your offices to allow some employees to work from home. Studies show that a well-structured rotating office-home workforce can produce happier employees and cut office costs substantially in the long run.

Developing a Winning Strategy

Coming up with a strong, winning strategy for your company should be the backbone of your business plan. Strategies for each kind of company in different sectors will vary greatly, but there are some major recurring themes that all businesses can learn from.

History Repeats Itself

Students of history know this adage well, and use it as their fundamental reason for studying the past. Those who are not familiar with the past are doomed to repeat it, and this is extremely relevant to businesses. If you come out with a product that you believe is a game changer, only to find out that another company tried the same thing a decade ago and failed, would you be inclined to attempt it again? Has anything fundamentally changed in the years between that could give you success where your predecessors had failed? This is a common theme in tech companies – what was impossible yesterday becomes possible today. What if you found that a rising fad today is merely repeating a trend from decades ago? Would you be able to use your knowledge of that trend to forecast the next hot one? This occurs all the time in the cyclical world of fashion.

The first step to developing a winning strategy is to be an astute student of history. This will help you understand the desires of your targets (customers), the benefits receivable from your allies, and the weaknesses of your your opponents. These three are the holy trinity of establishing a winning business strategy.

Competitors’ Successes and Failures

While it’s human nature to marvel at your competitors’ products, grow envious, then try to copy them, it is not always the most profitable route. Take for example Apple’s seminal iPhone and iPad, which revolutionized smartphones and tablet computers, and the slew of imitators that followed. The imitators, mainly from Asia, were unable to match Apple’s numbers, and instead lost money while giving Apple free advertising with inferior products. On the flip side, however, Japanese automakers like Toyota and Honda were able to imitate American automakers Ford and General motors so successfully in the 1980s that they almost caused the collapse of the Motor City in 2008, and created the perception that Japanese autos are cheaper, better made and more fuel efficient, which persists to this day. Imitating your competitor’s success is a 50/50 venture, although the later entrant to the competition will always start at a significant disadvantage.

It is more important to learn from their failures. In the 1990s, Apple nearly collapsed due to the spread of a universal operating system – Microsoft Windows – across a fragmented hardware landscape of IBM clones, or PCs. Apple, with its closed hardware system using its own operating system, was unable to match the combined might of PC makers such as HP and Dell, and was marginalized by a software company which had never sold a single computer.

Who learned from Apple’s failure? Google. The world’s largest search engine, setting its sights on the throne shared by Microsoft and Apple, launched Android, a freely distributed operating system that was sprinkled all over the fragmented hardware landscape of smartphones and tablets from various vendors. Just as Microsoft did in the 1990s, Google captured a large portion of the smartphone and tablet markets through the combined might of a motley crew of hardware vendors using its operating system.

The lesson? Learn from your competitors’ successes, but also understand their failures. Mapping these out will allow you to succeed where your competitors have failed.

Make Sure Everyone is on the Same Page

Many companies have sallied forth, believing that they had an airtight winning strategy, only to have it all fall apart when it became obvious that no one was on the same page.

A perfect example is the “Google triumvirate” of “grown-up” Google looked like a streamlined monster – the world’s largest search engine which earned record revenue and record margins through advertising. Then that plan started to fall apart. Pardon the pun, but current CEO Larry Page was never on the same page as former CEO Eric Schmidt.

What can we learn from Google’s blunders? That everyone in your top-tier management must be committed to the same goals, and if they are not committed to your strategy, get rid of them, to avoid massive headaches down the road.

Plan Your Strategy – S.A.M.

No matter what industry you’re working in, the classic acronym SAM – Specific, Achievable, Measurable – applies to all winning strategies. Your ultimate goal, tempered by the lessons of the past and lessons from your competitors, must be all three. If they are not, start over. If they are indeed specific, achievable and measurable, then you have the foundations of a winning strategy. Just remember to stick with it for the long term.

Maintaining a Work-Life Balance

When you are starting a side business or new company, it is easy to let the new venture soak up every waking hour. In our hearts we know failure is not an option. Our income is dependent on the success of the business. Our family is depending on us. Our friends are cheering us on and it would be disappointing and embarrassing to fail.

Importance of Work-Life Balance

You cannot let your business consume you completely. Focusing on your company 100% of every waking hour will ruin your life, your relationships and your ability to sleep.

This is especially true for married entrepreneurs. While your family is likely depending on your success, they also need to be able to spend quality time with you. If your relationship gets to the point that it feels more like room-mates and less like a married couple, you are in trouble. The worst position for an entrepreneur to be in is things are tough at the office and there is a lack of support at home because the spouse feels unappreciated. Your home should be a place of safety and support so you can go out and work it even harder the next day. There must be a point where you put the smart-phone down, spend some time together as a couple, re-focus, and re-energize for tomorrow.

How to Maintain Work-Life Balance

Here are two tips every entrepreneur should aim to integrate into their schedules.

Schedule Hours Off

Most entrepreneurs do something with their business on a daily basis. Weekdays, weekends, holidays, birthdays, you name it… you are likely to be at least taking a call or answering an email.

That’s fine and necessary for your company to grow as you need it to.

But you have to schedule some quiet alone time with yourself and your family. Even if you can’t have a set period of time every day, try to set aside an hour or two every few days at the same time. It could be as simple as when you come home, you turn your phone off from 5:30 to 7:00pm. The calls and emails can wait while you focus on your family, and you pick up the pace after a quiet dinner.

Schedule Days Off

After you have integrated a set period of hours off for most days, set up your schedule to take a set day off every few weeks. You could take every other Saturday to kick back and relax.

The Key to Work-Life Balance: Start at the Beginning

If your schedule is ingrained into your life to the point that you have habits, it is much more difficult to succeed in transitioning with having work-life balance. Change is difficult and habits are hard to break.

To counteract this, build your work-life balance into your schedule before you start your next venture. To the budding entrepreneur it seems backwards to be taking time off when you’ve got the energy, drive and interest to keep pushing through on a business issue. But will you have the energy next month? Next quarter? Next year? Don’t trade next year’s energy to push through difficult times for today’s small issues.

Selecting Insurance Plans Using Needs Analysis

Knowing how much insurance you will need as a small business owner can be a challenging endeavor. Nevertheless, having the appropriate insurance policy can save a small business a lot of money.

Needs analysis can give you a better idea of what kind and how much insurance would be the optimum for your business. Of course, buying liability, property and health insurance, in addition to Workmen’s Compensation can be quite expensive, so assessing your business’ needs and what kind and how much insurance can be crucial.

Evaluating Your Business

The first consideration when using needs analysis for deciding on an insurance policy for your small business consists of accurately analyzing the different liabilities and assets which directly affect the business. These include:

• Property – this includes equipment, real estate and other assets.
• Business Volume – the amount of accounts receivable and the average cash flow of the business.
• Salaries – how much you pay yourself and however many employees the company has.
• Overhead – the cost of running the business including rent, utilities and other miscellaneous expenses.
• Future Trends and the Local Economy – how future trends and the state of the local economy will affect the business in the future.

You can then better determine your company’s insurance objectives and what type of insurance plan would be optimal for your business by keeping the above factors in mind.

The second consideration for your insurance needs involves estimating your business’s potential for losses. This includes fire, theft, property damage, an employee’s legal action or losses due to economic hardship.

Getting the Right Amount of Insurance

Once you have evaluated your assets and liabilities, you will be much better prepared to determine how much insurance your company will need. You will want adequate coverage for your assets so make an accurate assessment of potential risks to your property to get adequate coverage.

Remember, a high premium will provide a higher amount of coverage so be aware of potential risks and make sure your business is covered for any high risk factors. Also, if you choose a higher deductible, you will probably pay less for your policy. Make sure you get the right amount of insurance depending on what your company can afford.

By law, your business will need Workers’ Compensation Insurance. Consult with your company’s lawyer or advisor on how much your company may need and what type of package would be optimal for you and your employees.

Comprehensive coverage might be optimal for your business if you have several employees and own the business property. Group health and life insurance along with disability, property, flood and fire insurance can often be included in your policy.

Choose a Reliable Carrier

A reliable insurance company and an experienced agent can be an important element to obtaining the right amount of insurance for your business. A knowledgeable agent can help you perform your needs analysis and can sometimes speed up the claim process if you need to make one.

Also, choosing an insurance company with a good reputation and solid finances will give you greater peace of mind if any unfortunate event befalls your business. The last thing you need if you have to make a claim is an insolvent insurance carrier.

Finally, have your business appraised periodically to gauge how much insurance you will need on an ongoing basis. Since business finances and assets change over time, the amount of insurance you might need can also change.