Planning, The Hub of the "Wheel of Management".

This is the penultimate article in the series. The reaction has been great so far, but wait for the finale, it will blow your socks off! To read this and other articles in the series go to the article index in my website.

The Wheel of Management

I have started a new series of Articles which I call The Wheel of Management series. Each article will concentrate on one of the spokes of the wheel, the tools or processes we all need to know and use if we are to be successful managers. The first article on Organization is already published here.

New articles in the series will be published regularly.

A Budget is so much more than just a financial plan!

In this new article on my website I discuss the merits of preparing an annual budget. I make the case that "but the best part is that the benefits given are just the beginning. Used correctly, the budget becomes a major part of your management process, and is a key element in defining goals and objectives for your people. In so doing it is laying the groundwork for the holy grail of personnel attitudes, accountability".

See what you think. Read more

New Year Resolutions for Small Business Owners.

As we enter the new year, we all make resolutions about change we intend to make in our lives. So why not give some thought to those resolutions we need to make for change we need to make in our business. Here are some I think many small business owners will benefit from:

• Cash is king, so why don't we resolve to implement a comprehensive cash planning process. Large companies do this, but most small business owners fly by the seat of their pants, and too often get caught with them around their ankles. Using data from their own accounting system, it is a really simple process to define who can be paid and when, but most importantly to also signal when problems are on the horizon.
• Organization makes the business work smoothly, so lets resolve to check that every employee has a current job description that sets out not only what his tasks are but also what his authority is, what measurements will be applied and what satisfactory performance is. Doing this lays the groundwork for creating an accountable workforce. While we are about it lets review the organization chart and make sure everyone has a clear idea of who their boss is, and that they are assigned a job only because they are the best person in the company for that position,
• We all want to maximize profit, so a resolution to ensure that our accounting system is working smoothly and providing us with the information we need to run the business, not just the information the CPA needs to file the corporate tax return. We must make sure we have a costing process that tells us which parts of our business is doing well, and which is not, what gross margin we need and when we are achieving it and when we are not.
• A final thought may be a resolution to ensure that we are providing our employees with the feedback they need. A formal evaluation process sometimes seems cumbersome for small businesses but the benefits are enormous. But don't let it stop there, make sure you and all your senior staff recognize good performance when it happens, and of course do not shy away from criticism when performance falls short.

This is not an exhaustive list of resolutions you could make this New Year, but I promise you, make and keep these and you and your business will have a better year!

Year end is tax planning time.

As we approach the end of the year, it is a great time to think about planning for the next year. However the best place to start that process is to get this years situation in order, and part of that is tax planning.

Small business owners know that the inevitable result of making profit is you have to pay tax but you neither have to pay too much nor too early. Now one of the easiest tax strategies available to small business is to calculate your tax on a cash basis. Making this election which you may do once only, will frequently postpone the payment of a chunk of tax.

If you do that, you can increase your saving by paying bills and regular payments early to get them recorded in this year. Part of the training we provide is to help you develop you tax and cash strategies.

Of course, as we think about planning let us ensure we include getting the help and support we need to maximize the effectiveness of our business. All the best for the holiday season, and a fruitful and productive new year.

Why Do Small Business Owners Struggle with Accountability?

When I speak with small business owners, the conversation almost always comes round to the question, "How do I make my people accountable? The immediate response I make is "Tell them, measure them, then trust them."
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How to properly organize your small business.

I have just posted this new article on my website.

"An alternative description of a company is an organization, but experience shows that very few small businesses are properly organized. Well defined organizational structure is the framework upon which a business depends for its form and efficiency.

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The biggest mistake we make when looking at organization is to start with the question "Who do we have?" This article emphasizes that the correct place to start is "What do we need to get done?"

Organization in your small business is the most important part of telling your people what you expect them to do!