by Gewleigh | J Apr 2022 | Business Skill, Home Business
The theory on One in a small business
When you start a small business, you will often hear the phrase Cash is King but does this still ring true now that we are moving towards a cashless society? The quick answer, of course, would be yes. We should change the phrase from Cash is King to Know your numbers. It would be a much better phrase and affect every small business area. Cash is king only looks at your business’s money, needs, or wants. Check out our next post entitled ‘Follow The Money.’
So what do we mean by numbers?
The most obvious one would be how much money you have in the bank. Do you have enough money to pay your bills, staff, and taxes? Then do you have enough money to invest back into your business, market your products and finally, if you are the business owner, enough money to pay you some dividends? Knowing the cash figure in the bank is vital for these functions.
There are other numbers that you need to know. One of my favourite numbers is number one. It’s not a number I used to think about in any significant way until a business coach mentioned the figure in passing. Their reference was about being the only person in the business and what would you do if you became sick, went on holiday or needed to have an extended period of absence. Are there processes in place to cover your absence?
Small Businesses and one bank
The number of one then grows to be a much more significant number for a small business. Banking is a perfect example of the number of one, where it might have a deficit influence on your business. Most companies would approach a bank if your business was expanding, and you wanted a loan or overdraft facility. If you only bank with one banking institution, your company’s financial history is only known by them. If this institution had restrictive rules on business loans or overdrafts, this could become an issue. Effectively, you only have one institution to ask. I am not saying that you won’t get a loan or overdraft, but it could reduce your opportunities. It is advisable to take out two different bank accounts with other banks. One for your everyday business activities and one to squirrel away your staff wages, tax liabilities and potential dividend payments. (Banks are not the only institutions that loan money to small businesses, there are specialist institutions that only loan to other businesses).
Employing one staff member
Staff numbers can also become an issue with the number of one. It’s great when our small business employs staff. It is a sign that the business is growing; you are good at what you do, and your customers value your service. Hiring your first staff member changes your company staff from the magic number 1 to 2. But only having one member of staff also means that a member of staff has much power in your business. Often a first employee means the owner takes a bit of a cut in their salary to employ the member of staff and their take-home pay is less than the employees. What do you do when the staff member is on holiday, sick, or is a lousy employee? Upsets your clients, and you spend more time redoing or talking to your clients because of the employee. If possible, think about taking on two members of staff or maybe two part-timers. Of course, taking on staff will have a financial burden, such as employers’ tax liabilities, additional equipment and licences, and training. You could, however, sub-contract but ensure you have a tight Non-disclosure agreement and contract with the sub-contractor.
One Client in a Small Business
Client retention can become an issue when discussing number one. The trouble with having only one client or one client that brings in most of your sales. You may have an excellent relationship currently with your client, but what would happen if that client moved away? A client stopping your services can be for many reasons; you have a falling out, they can find your services cheaper or are taking the work ‘in house’. Losing a significant client that brings in most of your finances can be catastrophic for a small business. Spread your client base out and try not to rely on one company for your financial success.
One Marketing Strategy for a Small Business
Having only one marketing strategy can also be very limiting. Are you reaching your target audience, where are they, and what do they think of your services? If your small business relies on Facebook ads and posts, will your customers see them? Is that where they go to find business contact and services? If you solely rely on printing in a magazine, how often does the magazine come out? Are you a member of a networking group? Do you network with other small businesses? Limiting your marketing to a one stream strategy is a dangerous and potentially restrictive plan.
The number one can be dangerous if relied on for too long. However, it is also an exciting number and one that a small business should give as much respect to as possible. The advantage of one means that you have tremendous flexibility. We have seen how important flexibility can be in the past two years. Many small businesses had the foresight to adapt their services easier, quicker and more cost-effectively than their counterparts.
In conclusion one in a small business
Knowing your number one limits, advantages, and disadvantages puts you in a much better position to ensure the success of your small business.
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by Gewleigh | J Jan 2018 | Virtual PA in Bournemouth
This must be the most common question any Virtual PA will be asked. Why would a business use a Virtual PA? The most common reasons a client will be looking for a Virtual PA to work with them are:
Non-Core Business Needs. Small business owners want to concentrate on the core of their business. For example, a freelance surveyor will want to be carrying out surveys and meeting potential new clients. To have somebody to take on the more day-to-day aspects of their business, or areas which they are not experienced in. This allows them the time to concentrate on what they do best.
Resources. A small business does not have the need or resources for a permanent administrator or secretary. Therefore using a VA enables them to employ someone on an ad hoc or project basis. Some Virtual PAs are employed for a set number of hours per month to cover regular tasks.
Skill-based There may be an ad hoc requirement for a specialised service such as creating a CRM system, and your client does not have the skill or resource within their business to complete the project.
Convenience and Time-Saving Having a service which is accessible within a short timescale, and often performed by somebody who you already know (and who already knows your business) is extremely convenient and saves a client the time of having to source and train a part-time, temporary, or even casual employee. It also saves on the associated red tape which comes with recruiting somebody to join a business. These benefits should not be underestimated.
Not Wanting to do the Task Themselves Sometimes people have a real aversion to certain types of work. If you have a client who hates administrative tasks such as letter merges, postal campaigns and so on, then you need to let them know how easy it would be for you to do it all on their behalf. If it gets them out of a task they hate and frees up their time to do something they actually want to do, they will soon realise your value.
Becoming a Virtual Assistant or Virtual PA
Not Spending Enough Time with their Family This is a common problem for small business owners, as businesses are time-consuming and many people are so passionate about what they do that their family time can get eroded away without them even realising it. Using a VA for certain tasks can alleviate some of the pressure and workload and enable clients to create more of a balance between these two important areas of their life.
Outsourcing is Cost-Effective A VA is easier than recruiting a new member of staff and the client will not have to comply with employment law. They will not have to worry about sick pay, about holiday pay or cover. They will not have the worry of finding extra space in their office, buying extra computer equipment or licences. There will also be no need to provide for Pension cover or Healthcare costs.
Other Tasks Taking their Time Up.
Sometimes there simply is not enough time in the day to undertake the tasks a business needs to cover. In which case a VA is once more invaluable. Their services can be employed for specific aspects of a job. Alternatively, the VA could keep the day-to-day business going – in order for a client to complete an important project.
You may also be interested in these articles about being a Virtual PA
by Gewleigh | J Nov 2016 | Home Business, Secretarial Services, Small Business, Small Office, VA in Oxford, VA in Poole, VA in Swindon, Virtual PA in Oxford, Virtual PA in Poole
Business Expectations can drive business goals
When starting a business, the owner or director will have some business expectations. The first expectation will be, the business will be a success. Secondly, there will be financial rewards and personal achievement. Very few people start a new business expecting it to fail or have limited financial reward. The new business owner will be looking forward to creating fantastic relationships with both clients and suppliers. A relationship that will ensure:
- Their clients will value their product or service
- Clients will become an advocate for their business
- Invoices paid on time and in full
- Clients will be courteous and respectful
by Gewleigh | J Oct 2016 | Home Business, Small Business, VA in Oxford, VA in Poole
Using a Virtual Assistant in Poole
I know there are at least three significant advantages of working with a Virtual Assistant or Virtual PA. (Not taking into account the many smaller benefits). I know that this is correct from the feedback I have had over the years from my clients. They have:
- Grow their businesses
- Taken holidays
- Re-balanced their lives
myPA have been Virtual Assistants and Virtual PAs since 2005 so we have had a lot of feedback
by Gewleigh | J Oct 2016 | Home Business, Secretarial Services, Small Business, Small Office, VA in Oxford, VA in Poole
A dog in the office can help reduce stress
Working in any office can be stressful, however, with a dog in the office, stress levels are reduced considerably. It doesn’t matter if you work for yourself, work on your own or in a corporate environment, stress is now a factor in our working lives. The skill we have to master is trying to manage that stress. We also have to be aware of when our stress levels are overflowing. It is true that we all can manage a certain amount of stress, we are hard wired for it, but an overflow can be dangerous and unproductive.
There are many tools, therapies and strategies on the market to help elevate stress, but have you thought about have a dog in the office?