Michael Levitt's Blog, page 84
May 11, 2021
When Your Customers Disrespect You, Do This
Most customers and clients are fair, understanding and generally compassionate people. But, occasionally, they can get a little ahead of themselves and start disrespecting your business.
As a company, it can be hard to know how to react to this. We live in a culture that says that the customer is always right. So when they start doing things that aren’t right, you don’t always know what to do next.
Ideally, you want to avoid any direct confrontation that could make the situation even worse. But you also need to stand up for yourself and make sure that you continue getting paid.
In this post, we take a look at some of the things that you can do if your customers start disrespecting you. The following is real leadership advice.
If you want the best possible outcomes for your business, you’ll need to become its decision-maker or advocate. Ultimately, as a leader, you’re the person who needs to stand up for the best interests of everyone in the organisation. If you don’t, then other people won’t follow your lead.
Becoming a decision-maker is ultimately about recognizing which customer relationships are good, and which aren’t. When the balance shifts towards the negative, it’s up to you to end the relationship entirely and potentially ask them to go elsewhere, especially if serving them is getting in the way of meeting other clients’ needs.
As a business, you should never beg for money. Begging gives people the impression that they have a choice of paying you or not.
Instead, insist on a price and once you lock people into a contract, make sure that they pay you every dime they legally owe you. If you’re not sure how to get money professionally, use an invoice template. This way, you can present your payment requests in a professional, procedural way, while also making it easy to collect money.
Don’t allow ambiguity to creep into your customer relationships. Always make it absolutely clear what you expect from both parties. If you don’t then your customers could take you for a ride, using a lack of clarity in your original agreement as a defense.
If you’re dealing with a client, make sure that you get them to commit and hold up to their end of the deal. For instance, if you run a building company, get your customer to agree to the design of the property before construction gets underway. Be clear that if they change their design requirements part way through, they will necessarily incur additional costs.
Customers will sometimes naturally disrespect you if you mislead them. They’ll see you as a phony and treat you as such.
Thus, you should always be clear about the realities of your services upfront. Don’t promise the world when all you can deliver is peanuts.
Be careful not to dupe customers into anything either. Don’t promise them a free webinar when all you’re doing is pitching your products and services. They won’t appreciate that.
Should You Consider a Franchise?
Many budding entrepreneurs like the idea of running their own business, but they lack any actual ideas for starting one that is likely to be a success. When that is the case, they often look to the possibility of buying a franchise.
This can seem like the ideal solution because franchises don’t require ideas. Someone else has already had that creative spark and built a successful business around it, and now they are willing to sell anyone who has enough money a slice of the piece.
That’s great right? Maybe. It can work for some people. If you have the capital, which can be hundreds of thousands of dollars for some franchises, to buy in, and if you are happy never truly being free to run your business the way you see fit, and you just want to own a business instead of working in an office or whatever, a franchise can be a good sell.
If., however, you’re more ambitious, want to be able to do whatever you want with your business whenever you want, and if you want to invest your money as wisely as possible, other business solutions may fit you better.
If you take a look at the infographic below, you will see some of the drawbacks that a franchise can bring, as well as some other ways of doing business that could fit your needs a bit better. Only you can decide which business structure will work for you, but you need to have all of the facts first.
Infographic designed by: Commercial Capital Training Group
May 10, 2021
Ways To Reduce Overhead Costs in Manufacturing
Creating a manufacturing budget for the year involves many different aspects, such as material and labor costs. But there are overhead costs, too. Managers can overlook the possibility of cutting overhead costs when creating wiggle room in their annual projection. Anyone building a budget needs to understand what overhead costs entail. Here are some ways to reduce overhead costs in manufacturing.
What Is Overhead?Overhead is any cost that isn’t directly related to labor or materials for production. Overhead is any indirect cost to keep your facility up and running. Factory burden is another colloquialism often used to describe these expenses. There are three kinds of overhead costs:
Fixed: These are expenses that occur every month or year but do not change: mortgage and property taxes are examples.
Variable: These costs will vary depending on your manufacturing output: utilities and trash service are included.
Semi-Variable: These are expenses that increase or decrease over time due to subsequent business activity: insurance or a lease, for instance.
Upgrade EquipmentRetiring old equipment and installing more efficient machinery can reduce overhead costs. Old equipment tends to fail, creating fees for repairs. Selling the retired equipment as opposed to keeping it can also add more revenue. New equipment will deliver more output faster. Likewise, training employees on efficiency standards can also be a resourceful way to reduce overhead costs.
In-House ToolingA considerable cost to manufacturing is outsourcing tooling. Creating in-house tooling would be another way to reduce overhead costs. It would assure accuracy, allow for quick adjustments, and guarantee shorter turnaround times. Outsourcing can slow down production on top of the exorbitant fees you’re paying for another company to create your tooling. It would be a semi-variable investment that you would reap the benefits of for years.
Reuse Equipment From Other FactoriesCall around to other factories and check if any of their old equipment can be reused. Redeploying retired equipment can save you time and money instead of purchasing new equipment.
Determining factory overhead costs can be tricky. However, it’s possible to reduce them significantly by utilizing even one of these ways to reduce costs in manufacturing. The key is to consider what your output has been in the past and present; then, you can correctly gauge what you’re capable of doing in the future.
5 Ways To Ensure The Workplace Is Consistently In Good Spirits
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Your workplace should always be somewhere that productivity is high. If you’re not working hard individually and collectively, then you’re not going to get the results you desire. There is literally no substitute for hard and smart work, so grinding things out needs to be done. A business is also only as good as those operating it, so slacking off won’t help anyone.
In order to keep employees motivated and to keep the spirits high overall, you need to ensure that everyone feels valued and they all are content with what they’re doing. If anyone feels a little negative and down, then you’re not going to get the best possible results. The good thing is that you don’t have to be the most charismatic leads with all of the answers (although it would help). In order to keep the workplace high, you just need to be consistent with a few things. Here are a few ideas regarding the ways of keeping spirits high:
You’re going to be the leader, so it’s your job to ensure that everyone is doing okay mentally and physically. If you have a negative demeanor, then they’re going to follow suit. Energy is contagious and it can make other people behave in the exact same way. If they turn up to work every single day and see your positive, optimistic attitude, then it’s going to give them a real boost.
There’s something about working with all the best devices and software. If you have new, fresh products, it makes you more inclined to work. If you have the old stuff that runs weirdly and looks like it may break anytime soon, then you won’t exactly be enthused. If you have the likes of secure file sharing for businesses with the latest desktop computers, then your staff are going to feel like they work in one of the best spaces. If you have the smoothest machinery or the freshest office space, then it’s going to make them feel a lot more advanced and important.
If you work hard, then it’s going to rub off on them. People react to what they see. They’ll then be proud of the hard work they put in and come to work every day wanting to continue doing so. Even on challenging days, they’ll be happy to put the hour in and get things done.
If you have a good-looking place, then you’re going to feel better about your day at work. Nobody wants to walk into a drab, boring, uninspiring workplace. This means that you should work on both the interior and exterior if you want the best results.
Don’t just invite anyone into your staff. Raise the standards and expect quality individuals. Don’t just go on their qualifications, either – choose them based on personality, too. If the overall standard of the workforce is higher, then more will get done – this will mean everyone involved will be happier.
Supporting Your Employees in the Workplace
As a business, you rely on your employees to help keep things running smoothly. This past year the workplace has undergone an immense change, and what that change looks like varies depending on your industry. Evaluating your business practices to make sure that your employees are supported and given the tools they need to do their jobs will help your business thrive.
Employees are what keep your business running. From managing the daily tasks to interacting with customers to implementing new practices, you rely on your employees. They are the face of your business, and customers and potential customers will judge your business based on their interactions with your customers. If your customers are happy at their jobs and given the tools they need to complete their work, then it will reflect well on your business.
If your employees are happy and able to do their jobs easily, then they will also be more likely to continue working for you. Finding employees, interviewing, and training new employees takes valuable time and money away from you and your business. Preventing unnecessary employee turnover helps your business run smoothly.
It is important that your employees have access to the right technological support to do their jobs. This will look different depending on your business, so it is important for you to be familiar with the technology of your industry.
More and more companies are transitioning to having some employees work remotely. If this is the case for you, then you need to be tuned in even more to the necessary technology. If you have employees working remotely, then you need to make sure that your employees are connected and have access to the data and programs as the rest of the team. Things like cloud based computing and software help your employees remain connected and able to complete projects as a cohesive unit.
It is also important that your employees have the necessary training to do the tasks associated with their jobs. While some of this is usually covered during new employee training, you need to make sure that as things change, the training is updated. Updating training will help new employees, but it will also help current employees manage any changes smoothly.
In addition to the training needed to perform their jobs, you may also want to consider other forms of training that they will need. As you integrate new technology, providing training for it will help your employees feel confident in their ability to use it and will help the transition go smoother. You won’t have to worry about as much confusion and misuse of technology as you strive towards a better workplace in our digital age.
Training for other areas related to the workplace can also be useful. Training for proper conduct in the workplace and policies of the company will alleviate any confusion. Your employees may also be interested in training and certification above what they need to perform their jobs. Helping employees find fulfillment in their jobs and be able to take the skills they learn to improve the workplace lends itself to a better workplace atmosphere.
May 7, 2021
Avoiding Fraud in Your Business
Image under CC License Unsplash
It does not matter how big or how small your business is, or what industry you operate within, your business is susceptible to fraud. And, fraud is something that can devastate a business.
Businesses lose an estimated 5% of their annual sales as a result of fraud committed by staff, administrators, owners, and executives, according to research by the Association of Certified Fraud Examiners (ACFE).
Fraud is something that should not be dealt with once it has hit your business. It needs to be something ongoing and something that every business needs to be proactive about to avoid it becoming an issue in the first place.
What is fraud in business?
When an individual or an enterprise performs fraudulent and illegal actions for the purpose of gaining financial gain, it is known as business fraud. Business fraud is often concealed and disguised as a legitimate business transaction.
Since fraud is such a significant issue – one that may even lead to the fundamental collapse of a previously prosperous company – it is critical to tackle it aggressively.
There are five main types of fraud that can have a serious impact on your business. These are:
Identity theft: A con artist may steal your company's identity and use it to gain access to your credit. Your financial statements could be manipulated by fraudsters. They might be able to get this data directly from your computer.
Payroll fraud: This is more common in small businesses, but it can happen in any size company. Employees can request paycheck advances and fail to repay them. They can even fabricate work hours or have coworkers clock in and out for them. Payroll fraud can be avoided by using a payroll service that allows you to authorize everyone's time before they are paid.
Counterfeit money: It is possible that your company would be given counterfeit cash. There is undoubtedly more fraudulent money in circulation than you would ever realize. It is important to be able to recognize the difference between real and fake money so that you can refuse to take it and report it to the authorities.
Fake returns: If you sell goods, customers can purchase items, use them, and then return them, even if the items are in perfect condition. Return fraud can be reduced by requiring a receipt and enforcing strict return policies.
Employee compensation: Worker's compensation insurance is required by law for all business owners. If the workers are injured at work, this scheme will cover them. To help deter this form of fraud, companies should remain on top of safety and what happens in the workplace. You should also verify that if an employee claims to have been injured at work, the accident actually occurred there.
How can you avoid fraud in your business?Carry out background checks on your employees before hiring them
Small businesses rarely conduct background checks on prospective hires, putting the company at risk of attracting hackers, predators, and even convicted criminals. Conduct a rigorous background check that goes back a minimum of seven years to see if an employee has a criminal background.
Run credit checks
If your employee has any access to financial resources or records, make it part of the terms of the contract that you will carry out a credit check before taking them on or moving them to a new position. While poor credit does not mean they are going to carry out fraud, financial difficulties can lead people to do desperate things.
Carry out regular computer audits
Regular, unannounced computer checks carried out by computer forensics specialists can flag up any suspicious activity on an employee’s computer. Don’t forget to look at any other devices that they have that they access company information and records on, and stop them from using personal computers or devices for work purposes unless they are prepared for them to be audited as well.
Carry out social media checks
Again, make it part of your employment agreement that you will periodically check their social media profiles to make sure they are not posting things that could be potentially damaging to your company. Of course, if their profiles are completely locked down, there is not much that you can do, but you can check anything they post in public forums and groups and see if they have posted anything that bad-mouths any former employers. If they have, be aware that there is a chance they could do it to you.
4 Simple Ways to Come Up with New Product Ideas
One of the biggest challenges of running a business for entrepreneurs can be coming up with new products and services to keep the customer interested and push growth forward.
Although we can’t all be insanely productive inventors like Geoff Hirson, it is possible for most of us to pull it out of the bag and come up with new ideas when we need to, but it is not always easy. That is why I’ve put together a list containing some of the best ways to come up with new product ideas right now…
It might sound odd, but looking to your old business ideas for inspiration can be a good way to come up with new product ideas. If you’re the creative type, chances are you’ve had hundreds of ideas over the years, most of which you have never acted on because they weren’t quite right for the time or they needed a little work. Maybe now is the time and maybe it’s possible to do the work? It’s worth thinking about at the very least.
Get together with a few of your employees and just start shooting out any old idea you can think of. This may sound like a sure-fire way to come up with a whole bunch of stupid ideas, but actually, creative group brainstorming sessions can be very productive., Your idea, on its own, might not be great, but the people you’re brainstorming with may chime in with one simple change that makes it great; it happens all the time. Even if you don’t come up with a solid product idea, chances are you will come up with some new ideas that show you the way forward.
Remember when phones didn’t have a camera? If you’re old enough you will, and you’ll also know that when the camera came it was revolutionary. Sometimes coming up with a great new product can be as simple as making an addition to an existing product. Take a good look at all of the products and/or services you offer and think about whether there’s anything you could do to make it even better. If you can improve your product, you can boost your sales and it will be far easier than coming up with a brand new product altogether.
You should never copy your competition; that will lead to a bland brand identity with no unique selling point, but you should absolutely look at the kind of song things they are doing and see if you can improve upon them. They’re in your industry, doing the same kind of research, so having a look into their products could be very fruitful if you play it right and develop your own unique thing based on the ideas generated by them.
Generating new product ideas can be tough, but it is totally doable and the strategies above will help.
May 6, 2021
3 Effective Tips To Keep Your Employees Motivated
As a business owner, you probably know just how vital a motivated workforce is. If your employees are happy to be working with you, they will undoubtedly be highly productive.
Not only that, but contented employees are unlikely to quit working with you. A low employee turnover rate translates to more stability and predictability for your organization. Ultimately, this leads to improved performance and efficiency, which is excellent for your business.
If you have no idea how to inspire your employees, read on to find out how.
Empower Your EmployeesAs an employer, you want your employees to feel empowered. This makes them more confident, and it enhances their loyalty to your company.
The easiest way to empower a person is to show them that they matter. This means listening attentively to their ideas and acting on them. This is the attitude you need to adopt with your employees.
If an employee suggests that you allow people to work from home two days a week, consider the pros and cons of the suggestion first. If it makes sense to you, go ahead and actualize it. If not, inform the employee why you think the idea is not suitable for your company.
You can also show your employees that you value them by helping them in times of crisis. For instance, you can enlist the services of a private investigation company to protect an employee’s reputation. Providing them with health insurance and other benefits also shows that you care.
Consider also encouraging your employees to share the professional goals and dreams with you. Knowing their aspirations helps you mentor them better, which in turn improves their morale.
Create a Good Work EnvironmentYour employees will spend most of their waking hours in your business premises. If you want them to give their best every day, you need to make the work environment conducive.
Start by investing in quality furniture. This is particularly important if your employees will spend most of their time sitting. Having office chairs with ample back support can go a long way in boosting productivity.
You could also provide snacks and coffee to keep your employees full and active. Consider also having flowers to beautify the office space.
Other than the physical environment, you should create a supportive social environment. This means requiring that people communicate respectfully. It would be best if you also enacted a zero-tolerance policy to harassment and intimidation.
Encourage TeamworkAs the head of the organization, the duty to foster a team spirit falls squarely on your shoulders. You need to encourage your employees to work as a team for enhanced productivity.
If your team does not like working together, consider engaging in team-building activities. This can be something as simple as a game at a nearby soccer field. If your employees want to indulge in a more challenging task, you could also plan a hike to a far-off hiking trail.
ConclusionEmployees are a vital resource for any organization. As such, you ought to show them that you value and respect them. This goes a long way in motivating and inspiring them.
Fortunately, encouraging your employees is not difficult. Follow the tips on this post and watch the morale in your office improve.
How to Work Better on the Road
Are you on the road more often than behind a desk? Do you think it might be affecting your performance and attitude? It’s understandable. Even though business trips and client visits have their perks, it’s easy to get in a rut. However, with a few small adjustments, you can make working behind the wheel breezier, healthier, and more inspiring. Here are several tips for how to work better on the road and boost your initiative and career.
Keep Your Car ShipshapeA stale, messy car is never a pleasure to sit in for hours on the road, nor is a car that sounds like it’s on its last legs—or rather, wheel. Whether you’re making a quick round of local clients or taking an extended trip to another branch, drive a vehicle you enjoy being in. Get regular checkups at the mechanic, including regular oil and other fluid changes; tire inflation, rotation, and monitoring for wear and tear; and regular tune-ups to ensure your car is running like a thoroughbred. A monthly cleaning and detailing routine wouldn’t go amiss, either. Reducing the dirty and grime around you will keep you mentally and physically healthy on the road.
Make Your Car Your Second OfficeNothing feels better than being ready for any request or emergency. After cleaning out your car, equip your trunk with an organizer. Many brands and styles are available, but all are excellent for organizing binders, storing documents, packing stationery and business cards, and filing paperwork until you return to your home base. They’re ideal for organizing papers, pens, erasers, scissors, sticky notes, and any number of other office supplies. Knowing everything you need is at hand is a positive attitude adjuster.
Eat RightThe temptation to save time and slide through drive-through after drive-through in search of coffee and sustenance is constant on the road. But eventually, all the carbs, caffeine, and grease will catch up with you. For long stretches, always keep a cooler of water and healthy snacks in the back seat (though, if you plan to chauffeur anyone anywhere, keep the floors clear. Still, it doesn’t hurt to have something to offer a hungry traveler). Carrot sticks and celery, hummus, cherry tomatoes, trail mix, cheese and crackers, fresh fruit, and other healthy treats are best. And if you must have coffee, keep it looking professional in a travel mug.
Take Time to YourselfThe destination is important, but the journey is the real story. It’s your story as well. Want to know how to work better on the road? Enjoy a meditative break between stops. Don’t hold a sandwich or cup of coffee in one hand and drive with the other. Pull over and take a moment to rest, preferably in a spot of natural beauty. Go for a short walk, and make plans to exercise a bit at some point. Remember, recharging your batteries is the key to maintaining peak performance in your duties!
May 5, 2021
Common Fleet Management Mistakes
Common Fleet Management Mistakes
Managing a fleet means coordinating drivers, vehicles, routes, and deliveries to ensure operations run as smoothly as possible to maximize profits. But there are some common fleet management mistakes that any fleet manager can make that will negatively affect business efficiency. Knowing what those mistakes are will help you realize when you are making them and will allow you to correct those errors faster.
Route EfficiencyWhen it comes to driving, the majority of the responsibility falls on the driver. Once they are out on the road, the fleet manager has very little say in how they drive or what routes they take to make their deliveries. While this takes some work away from you, this can lead to inefficient routes that will lead to longer delivery times and an increase in fuel consumption.
Map Routes Before HandHave a GPS in place to determine what the quickest routes are between delivery points to make the most out of drives. Having an automated system to generate the fastest routes possible will reduce the cost of fuel as well as facilitate more deliveries due to shorter delivery times.
Adhering To Regular MaintenanceVehicles break down, and they will break down faster the more you use them. It can be easy to neglect the necessary maintenance until problems start to arise, but by the time issues start making themselves known, there may be more severe problems at work.
Have a Maintenance ScheduleThe benefits of regular vehicle maintenance far outweigh the cost by making vehicles safer for drivers and less likely to break down for good. Allowing your vehicles to go too long without a check-up will lead to more serious problems in your car that will make it unsuitable for the road and will lead to high repair costs.
Using Your Vehicles Too Much or Too LittleWhen your fleet becomes a certain size, you may find yourself using some vehicles more than others or not using older vehicles at all. Failing to utilize every vehicle in your fleet will put unnecessary strain on some vehicles, causing them to deteriorate faster. In contrast, others are left to sit and waste away due to lack of use.
Use Everything at Your DisposalNo vehicle should go underused or overused; if you have it as one of your assets, you should be using it to the best of your ability. Your business’s efficiency will suffer if you allow some vehicles to do no work while letting other vehicles take on the majority of the labor.
Maintenance and AdministrationAlways be on top of vehicle maintenance and constantly audit your systems to ensure your business operates as efficiently as possible. Don’t fall into the trappings of fleet management mistakes that can cause your productivity to suffer. Know where the issues are sprouting up, and don’t wait to correct those problems.
