Charlotte Howard Consulting Blog

Do you realize that there are mistakes you can make at various stages of your business’ growth that can be slowly killing it for months or even years if you don’t watch for them?

Well, these mistakes do exist and they are not just reserved for the rookie companies. Many working businesses, including those you might think are successful” because they’ve been around for 10+ years, are often still making them… and are possibly losing a lot of money and/or wasting a lot of time in the process.

Although some of these big and sneaky mistakes seem aimed more at service type companies, they really do fit the bill for almost any type of industry. I’ve done my best with the listings below to give examples to prove it.

Underestimating Project/Service Time

This is a big one and it pertains to service companies as well as companies that sell a product. This is a service company’s bread and butter. If you don’t estimate your time to perform each and every service in your repertoire, you will get burned and there is little you can do about it but bite the bullet and learn from it. The best way to estimate time is to do it once yourself or watch your best employee do the task and then throw in a little fudge factor on top of it. For product companies, time becomes an issue with logistics so be aware!
Not Knowing YOUR Company Numbers/Incorrectly Setting Prices

Notice I emphasized the word “your”. It’s a common mistake to use a competitor’s as your pricing gauge without actually knowing why they use those numbers. Think about the nightmare you will get yourself into if you take a competitor’s price, cut it by 10% and then start selling. What if the competition has a bad pricing structure and is barely making money or even losing money?!?! What if your costs are more than theirs?!?! You can use competitor as a starting point but you can’t base your whole strategy on it.

Different industries have their own variables as far as costs go and you need to be aware of them for your project or product pricing. What you pay for a product you are going to sell is not the only cost to have in your head when you are pricing products. How much your labor and materials cost for a service is only a piece of an hourly rate. Employees cost more than just salary and not every employee is part of your labor cost. Every company has insurance to pay for.

There are tons of overhead expenditures that need to be part of your price. Oh, by the way, the big one that many people forget about in their price is the quality factor. What you include as “standard services” or “standard product features” as well as job site etiquette or in store service or warranties all need to go into your pricing. I’ll get to more on why in the next segment.

Not Charging for All of Your Time & Costs

This seems like a stupid statement to some but I bet most business owners will admit that they have given away a little too much of the farm at times. Hey, there is nothing wrong with giving a little extra here and there to show you care. But either way, that’s not what I’m talking about here. What concerns me are those that put a lot of quality into their work or products or stores and do not cover the cost for it. As an example, say you run a service company and your competitors don’t do a certain standard service that you do.

You can’t just undercut their price to steal a job; you need to have that cost covered in your rate and advertise the fact that it comes with the price upfront. Stores underestimate themselves, for example, when they put more people on the floor for customer service but don’t charge for it. These things cost you money and when your competitors don’t do them it costs them less money. Put out better service and then under price them, and your competition just has to wait a little bit for you to fall on your face so they can swoop back in.

As a business owner you need to believe that you are providing your clients worthwhile wares that deserve to be paid for. If you get the chance to explain why your prices are higher, then take that opportunity and do it. If they don’t like the fact that you include things that others charge extra for later or that you treat them better, then they are most likely completely price shoppers. You don’t want them as regular customers anyway. Trust me.

Not Getting Paid Fast Enough

That’s right, the old cash flow issue. As long as you are actually making enough money to pay the bills, this problem can be solved, prevented or at least made to be not as bad as it could be.

Here’s the deal:

First off all, bill customers very promptly. It is very common for a small business to not have the procedures or systems in place to get invoices generated and out the door in a timely fashion (see the next segment for more). Again, this would seem unlikely since that’s the reason why we are doing the work- to get paid. But it is very easy for the people responsible for getting this info to the billing people to be too busy to get it there or not have enough organization to give it to them the right way.

The second part to slowing down or stopping a regular cash flow crunch is to make the quickest payment deals possible with customers and the slowest possible with vendors and employees. If there is any way not to pay employees any more than twice a month, you better do it. Contractors always have an issue with this. If you must pay weekly, then tell them before they are hired that they will be getting the first week held back, essentially buying you a week. It will help, I promise.

Part three involves credit. If your company can get a credit card, then get it. This allows for certain important things to be bought (that you can afford) that might come up during a cash flow crunch. Better yet, especially if you have no choice but to deal with 45+ day customer payments, do your best to get a company line of credit. This is a must if you plan on selling to the government or doing commercial service work. These clients often have 60 to 90 day wait periods.

Failure to Have Solid Systems and Procedures in Place

Too many procedures (known as “red tape”) is the reason why many people start their own business in the first place. Unfortunately, having no procedures and systems in place at all is not an alternative. Depending on the type of industry, business owners must come to a happy medium or chaos and the unknown will ensue. Some basic examples where procedures or systems are needed include billing, collections, payroll, hr (interviewing, hiring, vacations, benefits, job responsibilities, etc.), manufacturing, operating equipment, maintaining equipment, inventory, sales calls/visits and logistics to name a few.

Even a one person show needs to have some admin procedures in place. This will make it easier to hire temps and subcontractors and control what they are doing for you. Without at least a watered down version of a system or procedure to do everyday work, you will be to blame for causing many major headaches as your company grows.

I can’t emphasize how important this is for when you bring on new employees. I’m sure you heard this before, but I am also a big proponent of having an employee handbook even for one employee. It’s amazing the trouble people can cause business owners just because they allow you to pay them.

Spending Advertising Money Just to Say You Advertise

I would almost rather see my clients not advertise then to spend without regard to tracking the results. There is no point in a marketing campaign if you do not put things in place that allow you to measure how well the plan is working. The other wasteful part of marketing that many people make the mistake of doing, is not tracking their previously successful campaigns. Why some people think that just because a $400 dollar a month ad worked once very well for one busy season, that it will automatically work every year after that is beyond me.

Spreading Yourself Too Thin

This is a classic mistake made by every entrepreneur. The key is to figure out when you are at that “wearing too many hats” point and start getting some help. The solution here is to know your strengths and to be able see when you are not performing the duties that demand these skills. If you are the best sales person on the company, you can’t get caught up in day-to-day operations. If you do, sales will slip and eventually you won’t have any operations to worry about. Think about this to help you figure out if you are spread too thin: Did you really go into business for yourself to work 80+ hours a week?

Not Getting Help Soon Enough

Set goals to know when to hire people to take over where you are light on knowledge. Not getting help or waiting too long can kill a company. Most people who start a business do it because they are good at the technical end or the sales end. If you know the best way to make a widget, then your strength is in production and that is where your time should be spent. Hire an outside company or consultant to take care of the sales and marketing and then hire inside when you can afford someone full time. Don’t be something to your company that you are not. It will only hold you back.

The three big issues people like to tackle themselves but usually are least knowledgeable about are legal issues, accounting/bookkeeping issues and daily operations issues. The odds are that these three things are your weakest link so if you don’t have a partner that has the background for these subjects, then be prepared to get help as soon as possible. It’s preferable that you do this before you start a business.

Although looking for these problems at any time is a good idea, the end of a year or season is an excellent business interval to make sure you are not making these errors. Take the time, or make the time, to fix these problems. If you don’t know how to reverse the problems, then get some help. If you really don’t have enough time to either figure out if you have these issues or know they are there and can’t break away long enough to do it right, then get some help.

The Cash Flow Quadrant is the sequel to Robert Kiyosaki’s bestseller book Rich Dad, Poor Dad. For a better understanding of the sequel, it is highly advised to read first the first book.

Robert Kiyosaki’s describes the cash flow quadrant as ‘a set-up where one goes vertically, and another line goes horizontally. The lines cross in the middles to create four separate areas. Each area is labeled accordingly.

1. The top left side is “E”. This includes employees who work full time, complete with the benefits. This can be any job form a chef to a school principal.
2. The bottom left side is “S”. A self-employed person belongs here. This can be doctors and small businessmen.
3. The top right side is “B”. This area represents business owners. B differs from area S in terms of involvement. Small business owners are directly involved in the operations of their business. If they miss work, then there’s no money. On the other hand, big business owners work in a way that their business still runs with or without them.
4. The bottom right side is “I”. This area includes investors. This describes people who don’t work for money but instead money works for them. This is where most people would want to be.

The Cash Flow Quadrant offers a reader friendly concept. Anyone will have no difficult grasping into it. In summary, Kiyosaki describes the different types of working people and the way they earn money. The left side of the quadrant describes people who wok hard for money. These people will be the first ones to pay taxes. However, it seems that they find it difficult to avoid the “rat race”.

The right side of the quadrant represents people who take money as a tool. These are the people who are paid first, pay their taxes later, but still get more time to enjoy life. There is no wrong side of the quadrant. Everything depends on the person on how they view their sources of income.

Just like Kiyosaki’s other works, this book works on the concept of motivation and thought. The book does not give readers ideas on hoe to get rich quickly rather it I something than gives the reader the varying notions of living and succeeding in financial goals. Kiyosaki also debunks the idea that school is a necessary requirement in getting god jobs. He points that the cause failure is fear rather than stupidity.

Kiyosaki’s confidently presented his ideas on this book. It prompts reader to ask themselves the inevitable “what ifs?” This is a good read for people looking for a new perspective on financial freedom. It is important to note that the book is not for people who wish to get rich quickly but rather for people who wishes to consider other perspectives.

Genbook offers online appointment scheduling services for free. It is located in San Francisco and is a privately held, venture capital backed company. Genbook provides customers with a web based appointment scheduling or booking that is very easy to use. This online appointment booking can be used by any small business website. With Genbook, you will have access to their online scheduling features in just few minutes without spending a single cent and no obligations attached.

Genbook allows you to have that professional look in your business site free of charge. Their 24/7 online booking and email or text confirmations/notifications will surely help you in giving each customer the best of what they deserve, thus making them reliable and effective. Genbook also offers growth for your business. Upgrading your account to avail more services being offered is also possible.

Genbook generally aims to maximize your services and help you connect to your customers in new and improved ways while promoting your accessibility. What’s good about this service is that it also caters the needs of small businesses.

Genbook offers its customers a lot of features like:

Online Scheduling with Less Hassle

- Genbook offers a free online appointment scheduler that’s very easy to use. What makes this service even better is that it is free of charge.

Customer Loyalty

- Customer satisfaction is of course Genbook’s top priority. The convenience and around the clock availability of their services makes customers happy and loyal to them.

No Strings Attached Policy

- With Genbook, you will get an online appointment scheduler for free.

Genbook is basically free and you can use it for as long as you want. There is unlimited number of bookings for you and offers free marketing for your services. Genbook also offers a BookNow! buttons for customers to easily book with your services. They also have a flexible appointment scheduling that you can create appointments the way you want and put prices that are right for both parties. Genbook also offers their customers with a free online scheduling page for easier confirmation and searching of appointments online. Customers can book in the services they need in advance.

Genbook is truly a solution to those businessmen who do not have the luxury of time to check on their schedule and appointments. With Genbook, their life and work has been made easy.

Nowadays, the Facebook account has been popular to all ages. It has been a way of staying connected with friends and to get in touch with people who have been a part of your life. You can search for many names under this account, names of people you have formerly worked with, or went to school with.

To create a Facebook account, you need to go and visit their website http://www.facebook.com. Just click on the “Sign Up” so that you can start to create your account. Make sure to follow the directions stated. Creating the account is for free.

The next step you need is to enter your email address. Just make sure that when you choose a password, you can easily remember it, but hard for other people to guess. Don’t give your password to anyone so that they cannot access your account.

As I’ve said you can find your friends at Facebook. You can get in touch with them. Just use the “Friend Finder.” Be selective about posting your personal online. You don’t want other people to just have an access of your account. You can make your account private if you want. To get more indepth information on automating your facebook account click here.

Enjoy in creating your account and have fun!

We have heard of some people’s identity being stolen.  Can we really avoid it?  Sometimes, we can be victims of it.  But there are a few steps where we can avoid it.

First, you have to think first before you use your computer when purchasing items from the net.  You have to watch for the safe site at the bottom of the screen, especially before putting personal information into your computer.  Make sure that you keep your anti-virus software and anti-spyware updated at all times.

Remember not to give out personal information on the telephone, especially to people you don’t know.  You may never be sure if they can be trusted and there is really a need for you to give out such information.  It is better be safe than being sorry in the end.

Another thing to protect your identity being stolen is that you never put your mail into your mailbox.  It is better that you take in to the post office.  This may be a little bit inconvenient for you but just put in mind that it is safer for you.  Nowadays, we have to be careful about these things because with the technology constantly changing and improving, we may never know what can happen next. Our identity might be stolen.  So, we have to be on guard about it.

Another is look over your credit card bills every month.  You have to make sure how much you have purchased and the things you have purchased.  Once your credit card bill has arrived, verify the purchase that is posted right away.  If, by chance, you don’t see the payments on the bill, call the credit card company right away and your bank as well to follow up on the payment.

There are so many ways by which our identity can be stolen.  Another is through our social security, that is why don’t carry it unless you have a reason for bringing it.

Remember to take receipt from the ATM machines.  Don’t just throw them away.  If you don’t want to keep them, just take time to shred it.

If your ATM or checks are stolen, report it right away.  Store any cancelled checks, and new checks in a safe place.

Those are just some of the things you should be on guard to avoid identity theft.

When we talk about business insurance, it becomes a complex subject.  It is as diverse as business itself.  Selecting an agent or broker is very important.

The first thing you do when you are obtaining business insurance, interview several agents.  Ask for referrals so that you would know who are experienced.  This is very crucial when you obtain such insurance.  After you have selected an agent or a broker, get several quotes or proposals in terms of coverage of insurance. Have them in writing.   You should not just get the proposal of one agent, but get several of them.

In selecting for insurance, you have to see the special terms and concepts unique to business insurance.  You should ask your agent to explain anything to you, especially when you are not familiar with it.  Be sure you understand how your insurance premium will be calculated.  It may be floor area, or it can be payroll or sales income.  That is why it is important you ask those questions.  In any case, your cooperation is expected for access to your books, records, and/or premises.  Just make them available for easy reference.

Be aware of the interest rate you need to pay for your premiums.  You should not just pay without knowing how much the premium is exactly and the interest rate of it.  Be aware too of the authority given to the financing organization and how any disruption in your payment will affect your coverage.

No matter how complex the subject is when it comes to insurance, since it is your business, you need to know certain details about it before you obtain such insurance for your business.

Setting up a Propay merchant account will provide you a simple, safe, and affordable credit card processing and electronic payment services for your business.  Isn’t this a magnificent service that they offer because Propay understands the unique needs of your business that it has created merchant transaction services just for you.  Now, you can set up online and begin accepting credit cards without having the need to buy any special equipment or any long-term commitments and investments.

The great part about it is that once your account has been set up, you can process transactions using Propay’s online interface, an API, a touch-tone telephone or an email invoice.

If you are already convinced about the service of Propay, there are still more benefits that you can get from this company.  It provides you with security, end-to-end, enterprise payment solutions.  It is not only through credit and debit card that they accept, the services allow you as well to pay commissions, split payments between multiple parties, and avoid touching cardholder data.  With this kind of service, it eliminates a company’s PCI DSS scope.

Because they value you as a customer, they offer such service for you so that your business can benefit a lot from it and it will be easier for you as well in running your business and in collecting payments.

Signing up is simple and Propay makes it affordable for you.  Whether your business is small, home-based, or even a multi-billion dollar enterprise, Propay will cater for you.  This is what they mean by understanding the uniqueness of these kind of businesses.