This tactic of the game was hard for me to master and at first I failed many times. I carried my business cards only in my briefcase, because I thought they were only used in business. Wrong! I missed quite a few opportunities to toot my horn because of that misconception. Not only did I miss the opportunity, but when it did arise, I looked like an amateur. Here's what happen on one of those occasions.
One day while standing in a bank line waiting to make a deposit - by the way, it was the merchant bank line; a nicely dressed gentleman noticed I had several checks from different companies. He asked about my occupation. I cheerfully explained my business and qualifications. He stated that he was impressed and promptly asked for my business card. Oops! I didn't have one in my possession. I had to meekly admit that I did not have one with me. He now realized I was new to the game and in a teaching tone, he suggested I should carry them in my wallet. He went on to explain, that I should never be without one. I was too embarrassed to ask for his business card and was elated when the teller said "next."
New to the game, I truly didn't think people would just ask you for a business card. When I related this incident to my boyfriend Tim, he chimed in.
"Why wait for people to ask? Don't be a secret agent; leave them for people to find." He continued, "When you leave a tip on the lunch table, leave your business card.
"What?" I questioned, "I don't think a waitress or buss boy would use my services."
"You don't know that." he calmly continued, "Besides they may know of someone who needs your services. Standing in lines or elevators are the best places to sell yourself," with that he winked and said, "you've got a captive audience."
Friday, November 7, 2008
Is Your Company Working At a Standstill? You Need Activities for Conflict Resolution Skills!
Are you worried that the upcoming staff outing is going to be an all-out disaster? Maybe instead of horseshoes or badminton at your next picnic, you should think about activities for conflict resolution skills!
Conflict among staff and team members are typically symptomatic of misperceptions and disintegrated communication - in other words, your employees are probably acting a lot like this:
Defensive or hypersensitive
Fearful of reprisals and putdowns even if encouraged to speak
Unwilling to see the "other side's" point of view
Planning Activities for Conflict Resolution Skills...
If you're planning a group meeting in the near future, this can be a good time to incorporate fun activities for conflict resolution skills. What should your planned goals be in planning activities for conflict resolution skills?
Enabling everyone in your company to actually recognize and reframe their misperceptions - to understand how words were meant to be understood versus how they were interpreted.
Giving your team a sense of "air time" through activities for conflict resolution skills so team members can identify their place in the group and the situation at hand.
Give your staff a chance to see and experience another side to the great people they work with on a daily basis.
Activities specifically designed for your staff and their unique challenges so that the lessons learned will be maintained long after the event is over and you receive a good return on your investment.
If conflicts run deep, it's often advisable to bring in an objective professional to choreograph activities for conflict resolution. Your planned activities may stem from your best intentions, but if they are not designed and monitored carefully by a specialist, the process can blow up and potentially become worse than it was at the start.
Following is an example of of some fun and informative activities and programs we have had success with. This example will give you an idea of how to approach conflict resolution within your organization.
Orientation/Context:Participants are given an understanding of the experiential program and how it can benefit them as well as their team, department and /or organization. Additional topics focus on personal safety, importance of support, how to enter the learning zone, and other key points that invite participation.
Paired Shares:In a structured one on one format participants meet and converse with many different colleagues. Each conversation and the subsequent progression (4-5 different topics) are specifically designed to get the group more connected and comfortable with each other and help anchor points made in the previous context phase.
Shape It Up:While seated and blindfolded the team must discover the answer to an equation that involves colored plastic shapes. This event requires clear and descriptive communication, open and non-biased listening, and consensus.
Diminishing Resources:As work projects and demands continue to rise to a shrinking time line and budget, moods and effectiveness may deteriorate. This simulation catches the team assuming too much and supporting too little until one brave member begins to share his/her knowledge (thus reducing stress and effort) with the team.
Debrief:At the conclusion of each simulation, the team is given an opportunity to assess their performance. Discussions involve the poignant insights they have gained or been introduced to and how these relate to their developmental leadership stage, career and/or office environment etc.
Sharing/Close:Small group discussions regarding stages of leadership development and where they perceive themselves to be (i.e., novice, moderately competent, proficient). Or they can discuss one area in their realm where they've had a great breakthrough and one area that needs attention/support etc.
The groups will be brought together for the last time of the day/evening. This is a final opportunity for the entire group to share, cross learn and connect about key insights and critical points (i.e., leadership, communication, teaming, and shared successes) that were experienced during the program. Variation for constricted time lines: A representative from each team shares a highlight and insight about the teams experiences with the other groups.
This outline is an approximation only. The value of these activities comes not from the events so much as from the insight and dialogue the events inspire. Therefore, if learning from a particular event and subsequent debrief is going exceptionally well, we suggest you deviate from the aforementioned outline in order to solidify and deepen the learning potential. This will tend to promote further dialogue related to this subject at a further time.
Conflict among staff and team members are typically symptomatic of misperceptions and disintegrated communication - in other words, your employees are probably acting a lot like this:
Defensive or hypersensitive
Fearful of reprisals and putdowns even if encouraged to speak
Unwilling to see the "other side's" point of view
Planning Activities for Conflict Resolution Skills...
If you're planning a group meeting in the near future, this can be a good time to incorporate fun activities for conflict resolution skills. What should your planned goals be in planning activities for conflict resolution skills?
Enabling everyone in your company to actually recognize and reframe their misperceptions - to understand how words were meant to be understood versus how they were interpreted.
Giving your team a sense of "air time" through activities for conflict resolution skills so team members can identify their place in the group and the situation at hand.
Give your staff a chance to see and experience another side to the great people they work with on a daily basis.
Activities specifically designed for your staff and their unique challenges so that the lessons learned will be maintained long after the event is over and you receive a good return on your investment.
If conflicts run deep, it's often advisable to bring in an objective professional to choreograph activities for conflict resolution. Your planned activities may stem from your best intentions, but if they are not designed and monitored carefully by a specialist, the process can blow up and potentially become worse than it was at the start.
Following is an example of of some fun and informative activities and programs we have had success with. This example will give you an idea of how to approach conflict resolution within your organization.
Orientation/Context:Participants are given an understanding of the experiential program and how it can benefit them as well as their team, department and /or organization. Additional topics focus on personal safety, importance of support, how to enter the learning zone, and other key points that invite participation.
Paired Shares:In a structured one on one format participants meet and converse with many different colleagues. Each conversation and the subsequent progression (4-5 different topics) are specifically designed to get the group more connected and comfortable with each other and help anchor points made in the previous context phase.
Shape It Up:While seated and blindfolded the team must discover the answer to an equation that involves colored plastic shapes. This event requires clear and descriptive communication, open and non-biased listening, and consensus.
Diminishing Resources:As work projects and demands continue to rise to a shrinking time line and budget, moods and effectiveness may deteriorate. This simulation catches the team assuming too much and supporting too little until one brave member begins to share his/her knowledge (thus reducing stress and effort) with the team.
Debrief:At the conclusion of each simulation, the team is given an opportunity to assess their performance. Discussions involve the poignant insights they have gained or been introduced to and how these relate to their developmental leadership stage, career and/or office environment etc.
Sharing/Close:Small group discussions regarding stages of leadership development and where they perceive themselves to be (i.e., novice, moderately competent, proficient). Or they can discuss one area in their realm where they've had a great breakthrough and one area that needs attention/support etc.
The groups will be brought together for the last time of the day/evening. This is a final opportunity for the entire group to share, cross learn and connect about key insights and critical points (i.e., leadership, communication, teaming, and shared successes) that were experienced during the program. Variation for constricted time lines: A representative from each team shares a highlight and insight about the teams experiences with the other groups.
This outline is an approximation only. The value of these activities comes not from the events so much as from the insight and dialogue the events inspire. Therefore, if learning from a particular event and subsequent debrief is going exceptionally well, we suggest you deviate from the aforementioned outline in order to solidify and deepen the learning potential. This will tend to promote further dialogue related to this subject at a further time.
How Leaders Unlock Potential in Teams
Leaders are faced with unlocking the potential in the people that they lead and motivating the individual is a key part of this process. Motivation is not something that is done to an individual as they already posses it. What a leader does, to benefit the whole team, is to release, or unlock, it. Here are seven ways leaders unlock potential in people.
1. Leaders share their vision and values. Vision is what the team aspires to. Some visions may not ever be reachable, yet by their very existence they inspire, excite and motivate people to turn them into a reality. Where the vision comes from, however, is less important than whether team members fully share the vision. Where does vision come from? Essentially it comes from what you value or care strongly about. Values, then, are the foundation of the vision. Normally you would have only a few values. Each person can usually identify and describe them in their own words. They are not necessarily the same as mission statements, slogans or taglines written on walls or bulletin boards. As a leader, it is important that you regularly restate the team values and display them by your own actions. Leaders should also ask team members to keep producing examples of how they are turning values into reality.
2. Leaders value people. People will work very hard for a leader because they feel you value them as a person. You do this by treating each person with respect and by persisting in demanding that this is how team members treat one another as well.
3. Leaders Give Recognition. Research has shown that organizations seldom give enough recognition to their people. All too often people feel that they are taken for granted and that there is insufficient feedback about their efforts. Recognition does not always have to be in the form of a promotion or pay raise. Your team needs clear signs of appreciation and this can easily and simply be done by saying "thank you," a small gift, public praise, a party, etc.
4. Leaders are Creative. Creativity is one of the most powerful means a leader has of unlocking your team's full potential and infusing them with new energy. You can foster creativity by being open to new possibilities, new connections, new methods and surprising solutions. To use everyone in the team to their maximum potential, they need to be stretched as human beings. This does not mean setting impossible goals as much as it does expecting the most of each person on the team. To expect the most, you need to know each persons talents. You can learn about members of the team through formal assessment procedures, asking the person, asking others, trial and error in the workplace and so forth. The range of your team's talent will likely astound you. Have fun uncovering the team's talents.
5. Leaders Inspire Special Effort. Interestingly, people will do extraordinary work for some leaders and not for others. This happens when people see their own interests linked with the leader and he/she wants to achieve. When you call for team effort, remember that people respond to facts and emotion. Both are essential. Facts will start the process of convincing your team that heroic effort is needed. Make sure you prepare the facts carefully since they must stand up to the team's scrutiny. Emotion is another vital ingredient. You need to appeal to people's feeling, not just their logical, rational, parts. Facts alone will seldom tap a team's hidden energy and commitment. Watch for signs in the team to indicate that people are making special effort and immediately reinforce this by offering approval and recognition.
6. Leaders Do It Their Way. Leaders need to develop a method and adopt a style that suits them. Then, when you need a special effort from the team, this is the moment to show them your real leadership style. Inspiring people is not as easy as it sounds. It starts with you, sharing with them what inspires you. If are committed to what you want, people will respond to your inspiration, energy and vision. If you really believe in your vision, and exude energy and passion about it, the team will also share in that effort with you and feel your passion. Conversely, negativity will also breed negative thoughts from your team. Remember that each team member will internally respond with a "what's in it for me?" approach. Discover what each person on the team wants and you will have the key to unlocking their potential and sustaining that special effort you need.
Your qualities as a leader will attract people to consider making the heroic effort you want or need. They may be drawn to your passion, your humanity, energy, integrity or commitment. They may admire and fear your determination to make something happen, but it is the human qualities you share that will gain their respect and commitment.
1. Leaders share their vision and values. Vision is what the team aspires to. Some visions may not ever be reachable, yet by their very existence they inspire, excite and motivate people to turn them into a reality. Where the vision comes from, however, is less important than whether team members fully share the vision. Where does vision come from? Essentially it comes from what you value or care strongly about. Values, then, are the foundation of the vision. Normally you would have only a few values. Each person can usually identify and describe them in their own words. They are not necessarily the same as mission statements, slogans or taglines written on walls or bulletin boards. As a leader, it is important that you regularly restate the team values and display them by your own actions. Leaders should also ask team members to keep producing examples of how they are turning values into reality.
2. Leaders value people. People will work very hard for a leader because they feel you value them as a person. You do this by treating each person with respect and by persisting in demanding that this is how team members treat one another as well.
3. Leaders Give Recognition. Research has shown that organizations seldom give enough recognition to their people. All too often people feel that they are taken for granted and that there is insufficient feedback about their efforts. Recognition does not always have to be in the form of a promotion or pay raise. Your team needs clear signs of appreciation and this can easily and simply be done by saying "thank you," a small gift, public praise, a party, etc.
4. Leaders are Creative. Creativity is one of the most powerful means a leader has of unlocking your team's full potential and infusing them with new energy. You can foster creativity by being open to new possibilities, new connections, new methods and surprising solutions. To use everyone in the team to their maximum potential, they need to be stretched as human beings. This does not mean setting impossible goals as much as it does expecting the most of each person on the team. To expect the most, you need to know each persons talents. You can learn about members of the team through formal assessment procedures, asking the person, asking others, trial and error in the workplace and so forth. The range of your team's talent will likely astound you. Have fun uncovering the team's talents.
5. Leaders Inspire Special Effort. Interestingly, people will do extraordinary work for some leaders and not for others. This happens when people see their own interests linked with the leader and he/she wants to achieve. When you call for team effort, remember that people respond to facts and emotion. Both are essential. Facts will start the process of convincing your team that heroic effort is needed. Make sure you prepare the facts carefully since they must stand up to the team's scrutiny. Emotion is another vital ingredient. You need to appeal to people's feeling, not just their logical, rational, parts. Facts alone will seldom tap a team's hidden energy and commitment. Watch for signs in the team to indicate that people are making special effort and immediately reinforce this by offering approval and recognition.
6. Leaders Do It Their Way. Leaders need to develop a method and adopt a style that suits them. Then, when you need a special effort from the team, this is the moment to show them your real leadership style. Inspiring people is not as easy as it sounds. It starts with you, sharing with them what inspires you. If are committed to what you want, people will respond to your inspiration, energy and vision. If you really believe in your vision, and exude energy and passion about it, the team will also share in that effort with you and feel your passion. Conversely, negativity will also breed negative thoughts from your team. Remember that each team member will internally respond with a "what's in it for me?" approach. Discover what each person on the team wants and you will have the key to unlocking their potential and sustaining that special effort you need.
Your qualities as a leader will attract people to consider making the heroic effort you want or need. They may be drawn to your passion, your humanity, energy, integrity or commitment. They may admire and fear your determination to make something happen, but it is the human qualities you share that will gain their respect and commitment.
Team Work - A Challenge of Character
Over the years there has been much ado about team work, the value of teams, the ups and downs, the pros the cons! Some appear to work and others fail, why? Can your business benefit from a team work approach or not?
As people we are 'complex beings' It never ceases to amaze me how we often gravitate to negative ways of thinking about others when we ourselves (if we are honest) have just as many flaws and faults. We often find ourselves thinking about the glass half empty instead of the glass half full. Life and business can be a very positive experience.
Having been in the workforce for over 25 years have given me the opportunity to observe trends and over time see what works and what doesn't, and however more importantly why?
From junior clerk to CEO and President of businesses it is my opinion that there is nothing new under the sun.
Re-badged ideas and principals have been operating for centuries. From armies to seminaries we can observe and learn that humankind has arranged itself in team structures, some successful, some failures.
Take William Wallace, the plucky Scotsman who organised teams (bandits) against the English oppression.
From good to evil nations and people have banded together and achieved more than they could have alone. This is the key, that alone and as individuals we can achieve, however together we can exponentially achieve if we will pay the price of patience and time.
Good teams take time and patience to build!
Over the years the practice of teams in business has often come and gone. It is my observation that over the last 10 years there has been a profound shift in the fundamental way teams operate in that those that are successful appear to be made up of people who have developed a high level of trust in each other and have had a heart transformation in that they strive to live authentically, have a high level of self control and common sense.
We appear by nature to be suspicious and untrusting as individuals and this does not lend itself towards team building. The good news is that we can change!
What makes a good team? A good team is one where team members are allowed a great deal of autonomy. This is usually given as teams prove their trust to management by succeeding in small tasks and are subsequently and progressively delegated more responsibility.
Have you ever noticed that the clock seems to go faster when working cooperatively with other people? Have you ever noticed the creativity and learning that takes place between team members? The off-setting multi-skilling is fantastic for your business.
What causes a team to fail? As the 3 musketeers once said 'one for all and all for one' When individuals come together to operate as a team it is critical that they have the hands-on support of management. Individuals need to learn to put aside differences and develop trust and believe that they will be rewarded as a team and individuals. Teams are not only about the team but about your employee's individual's contribution to the team - a fact overlooked to your peril.
Tips for Management
Change is painful for you and your employees.
You may want instant results! This is unlikely to occur and remain sustainable.
You cannot give lip-service to team concepts and demonstrate by your behaviour the opposite.
Over time a team will prove its worth to your business if your persevere with patience and support. You reap what you sow.
Communicate, communicate, and communicate!
Be participative with your employees. The sad truth is that some managers and business owners put more effort into their motor vehicle than their employees.
You cannot hide behind indifference and position and expect your team to produce. You must live authentically. This is sometimes called 'risky living'.
Tips for Employees Being part of a team is a fantastic opportunity to develop and grow personally and professionally.
If you are placed into a team be realistic and understand that change is painful for you and your other colleagues as well.
Understand your team will have its positives and negatives - be realistic.
Sometimes you may feel undervalued as a team member or be concerned that someone else in the team is being rewarded when you feel you should be. Understand that management is usually aware of what is happening. Behind the scenes management are making changes and these changes are not always in your timeframe. You don't have the full picture.
If you feel you need to say something do so respectfully. Don't put your manager in a corner forcing them to make a decision. Be patient?
Understand that one of the greatest challenges facing business today is to get 'good employees'. Your manager is well aware that he/she needs to keep you.
How to develop a team in your business Building good solid relationships anywhere takes time and effort. You must be patient!
Ask yourself the question - can my business benefit from team structures?
Do your homework and understand the cost in time and money it will take to get the desired outcomes your business is looking for. Patience and commitment is the key.
Do not lose your nerve. Take advice when you need it.
Communicate to employees - communication is the glue that holds teams and relationships together. It is reliably reported that up to 85% of divorce can be traced back to a lack of communication about money! Take your employees with you; explain to them the benefits; flexible working hours, team bonus for agreed outcomes, rewards from higher productivity, job certainty, and prestige.
Relationships - relationships are a critical strategic structure within society and any business. Good relationships can grow your business while bad relationships tear it down. You cannot escape from this principal.
Structure - ensure structures are in place for teams to grow.
Time - it takes time to build a good team but the rewards can be outstanding for the business and employees.
Having worked in teams and put them together I can recommend a team structure where both the business and individuals are committed to the team and demonstrate this by their behaviour.
Remember, your life and conduct are like a book - people, family and friends read you and see what is, not what you think is!
If you demonstrate patience and put time into developing a team environment built on trust you will succeed. Your business will increase its profits, your employee turnover will go down and your business will be admired.
The choice is yours.
As people we are 'complex beings' It never ceases to amaze me how we often gravitate to negative ways of thinking about others when we ourselves (if we are honest) have just as many flaws and faults. We often find ourselves thinking about the glass half empty instead of the glass half full. Life and business can be a very positive experience.
Having been in the workforce for over 25 years have given me the opportunity to observe trends and over time see what works and what doesn't, and however more importantly why?
From junior clerk to CEO and President of businesses it is my opinion that there is nothing new under the sun.
Re-badged ideas and principals have been operating for centuries. From armies to seminaries we can observe and learn that humankind has arranged itself in team structures, some successful, some failures.
Take William Wallace, the plucky Scotsman who organised teams (bandits) against the English oppression.
From good to evil nations and people have banded together and achieved more than they could have alone. This is the key, that alone and as individuals we can achieve, however together we can exponentially achieve if we will pay the price of patience and time.
Good teams take time and patience to build!
Over the years the practice of teams in business has often come and gone. It is my observation that over the last 10 years there has been a profound shift in the fundamental way teams operate in that those that are successful appear to be made up of people who have developed a high level of trust in each other and have had a heart transformation in that they strive to live authentically, have a high level of self control and common sense.
We appear by nature to be suspicious and untrusting as individuals and this does not lend itself towards team building. The good news is that we can change!
What makes a good team? A good team is one where team members are allowed a great deal of autonomy. This is usually given as teams prove their trust to management by succeeding in small tasks and are subsequently and progressively delegated more responsibility.
Have you ever noticed that the clock seems to go faster when working cooperatively with other people? Have you ever noticed the creativity and learning that takes place between team members? The off-setting multi-skilling is fantastic for your business.
What causes a team to fail? As the 3 musketeers once said 'one for all and all for one' When individuals come together to operate as a team it is critical that they have the hands-on support of management. Individuals need to learn to put aside differences and develop trust and believe that they will be rewarded as a team and individuals. Teams are not only about the team but about your employee's individual's contribution to the team - a fact overlooked to your peril.
Tips for Management
Change is painful for you and your employees.
You may want instant results! This is unlikely to occur and remain sustainable.
You cannot give lip-service to team concepts and demonstrate by your behaviour the opposite.
Over time a team will prove its worth to your business if your persevere with patience and support. You reap what you sow.
Communicate, communicate, and communicate!
Be participative with your employees. The sad truth is that some managers and business owners put more effort into their motor vehicle than their employees.
You cannot hide behind indifference and position and expect your team to produce. You must live authentically. This is sometimes called 'risky living'.
Tips for Employees Being part of a team is a fantastic opportunity to develop and grow personally and professionally.
If you are placed into a team be realistic and understand that change is painful for you and your other colleagues as well.
Understand your team will have its positives and negatives - be realistic.
Sometimes you may feel undervalued as a team member or be concerned that someone else in the team is being rewarded when you feel you should be. Understand that management is usually aware of what is happening. Behind the scenes management are making changes and these changes are not always in your timeframe. You don't have the full picture.
If you feel you need to say something do so respectfully. Don't put your manager in a corner forcing them to make a decision. Be patient?
Understand that one of the greatest challenges facing business today is to get 'good employees'. Your manager is well aware that he/she needs to keep you.
How to develop a team in your business Building good solid relationships anywhere takes time and effort. You must be patient!
Ask yourself the question - can my business benefit from team structures?
Do your homework and understand the cost in time and money it will take to get the desired outcomes your business is looking for. Patience and commitment is the key.
Do not lose your nerve. Take advice when you need it.
Communicate to employees - communication is the glue that holds teams and relationships together. It is reliably reported that up to 85% of divorce can be traced back to a lack of communication about money! Take your employees with you; explain to them the benefits; flexible working hours, team bonus for agreed outcomes, rewards from higher productivity, job certainty, and prestige.
Relationships - relationships are a critical strategic structure within society and any business. Good relationships can grow your business while bad relationships tear it down. You cannot escape from this principal.
Structure - ensure structures are in place for teams to grow.
Time - it takes time to build a good team but the rewards can be outstanding for the business and employees.
Having worked in teams and put them together I can recommend a team structure where both the business and individuals are committed to the team and demonstrate this by their behaviour.
Remember, your life and conduct are like a book - people, family and friends read you and see what is, not what you think is!
If you demonstrate patience and put time into developing a team environment built on trust you will succeed. Your business will increase its profits, your employee turnover will go down and your business will be admired.
The choice is yours.
Tuesday, October 28, 2008
Is Your Business Profitable?
What's your job profitability? Do you know?
Many business owners are unsure of their profitability at a company or job level. They "think" they are making money because they have a few dollars in their checking account. Having money in your checking account doesn't mean you are profitable. It might simply mean you haven't paid all the bills yet, so you have a little cash. Cash and profit are two different concepts. If you don't know your exact income and expenses for each job and your overall business, then how can you know whether you are making a profit? And, if you aren't profitable, your business won't last long.
Analyze Each Job
Regardless of the size of your business or your industry, profitability is something you should be monitoring on a monthly basis. To determine your profit, you must know how much you make and spend on each job. Expenditures should be tracked for direct labor and material costs on each job. In addition, you should also be tracking overhead costs and allocating them to your various jobs as applicable. There is always going to be some general overhead, but too often dollars are thrown into general overhead, when those dollars could easily be attached to specific jobs.
Intuit's QuickBooks software program has easy-to-use features that allow you to do job-costing for time and materials, so you don't have to worry about having to track it all manually. Rely on tools to help you run your business more efficiently and effectively.
Are you curious how you are doing with job costing measurements? Here are some quick and easy questions to gauge your job costing performance:
1. Do I track each customer's revenue information through a detailed invoice?
2. Do I have a way of breaking down my direct job materials cost by customer?
3. Do I associate all time spent to each job accurately with actual dollar amounts?
4. Do I have access to reports to monitor profitability on each job in a timely manner?
5. Do I have a way to trend the fluctuations in job profitability from job to job, month to month, etc?
If you answered "no" to any of these, then it's time for you to take an objective look at your financial goals. It's time for you to implement a job costing mechanism to help you answer "yes" to all these questions. How can you track your profitability and long-term growth plans if you don't have detail at a job level?
QuickBooks Can Help
Here are some easy ways to utilize QuickBooks effectively to help you with your job-costing process:
1. Set up the QuickBooks Item list so that you'll have both an expense and an income aspect to each of the items. This will allow you to track your costs and your income, and will provide you profit by item.
2. Record your sales through the invoicing or sales receipt process. This will record the income aspects of the items.
3. As you purchase the product or service items, make sure that you utilize the Items tab so that it will record the cost to the appropriate item. In addition, make sure to assign your customer/job information to each line item so that you'll have the costs associated to the appropriate customer/job for job-costing.
4. Utilize the time-tracking mechanism in QuickBooks so that you and your employees can track time by item and customer/job. No dollar value is associated with this time until you actually pay the employees within QuickBooks.
5. QuickBooks has preformatted reports that you can access to have job-costing information right at your fingertips. These are found under the Reporting menu and the Jobs/Time/Mileage option.
6. QuickBooks has the ability to provide reports for any time period you select. This will allow you to have a variety of detail over the growth of your business and to produce trending reports. You can modify the report as needed to meet your needs.
A good accounting professional can help you understand what these reports are telling you, in terms that you can use. Reports alone don't provide value if you don't understand them. So it is key that you understand the reporting information and how you can use that information to assist you in decision-making as you grow your business profitably.
Job-costing is easier when you set-up your accounting/bookkeeping software package and know how to use it. So, challenge yourself today to become more adept at running a financially savvy business through job-costing. Then, you'll know, without a doubt, whether your company is profitable.
Many business owners are unsure of their profitability at a company or job level. They "think" they are making money because they have a few dollars in their checking account. Having money in your checking account doesn't mean you are profitable. It might simply mean you haven't paid all the bills yet, so you have a little cash. Cash and profit are two different concepts. If you don't know your exact income and expenses for each job and your overall business, then how can you know whether you are making a profit? And, if you aren't profitable, your business won't last long.
Analyze Each Job
Regardless of the size of your business or your industry, profitability is something you should be monitoring on a monthly basis. To determine your profit, you must know how much you make and spend on each job. Expenditures should be tracked for direct labor and material costs on each job. In addition, you should also be tracking overhead costs and allocating them to your various jobs as applicable. There is always going to be some general overhead, but too often dollars are thrown into general overhead, when those dollars could easily be attached to specific jobs.
Intuit's QuickBooks software program has easy-to-use features that allow you to do job-costing for time and materials, so you don't have to worry about having to track it all manually. Rely on tools to help you run your business more efficiently and effectively.
Are you curious how you are doing with job costing measurements? Here are some quick and easy questions to gauge your job costing performance:
1. Do I track each customer's revenue information through a detailed invoice?
2. Do I have a way of breaking down my direct job materials cost by customer?
3. Do I associate all time spent to each job accurately with actual dollar amounts?
4. Do I have access to reports to monitor profitability on each job in a timely manner?
5. Do I have a way to trend the fluctuations in job profitability from job to job, month to month, etc?
If you answered "no" to any of these, then it's time for you to take an objective look at your financial goals. It's time for you to implement a job costing mechanism to help you answer "yes" to all these questions. How can you track your profitability and long-term growth plans if you don't have detail at a job level?
QuickBooks Can Help
Here are some easy ways to utilize QuickBooks effectively to help you with your job-costing process:
1. Set up the QuickBooks Item list so that you'll have both an expense and an income aspect to each of the items. This will allow you to track your costs and your income, and will provide you profit by item.
2. Record your sales through the invoicing or sales receipt process. This will record the income aspects of the items.
3. As you purchase the product or service items, make sure that you utilize the Items tab so that it will record the cost to the appropriate item. In addition, make sure to assign your customer/job information to each line item so that you'll have the costs associated to the appropriate customer/job for job-costing.
4. Utilize the time-tracking mechanism in QuickBooks so that you and your employees can track time by item and customer/job. No dollar value is associated with this time until you actually pay the employees within QuickBooks.
5. QuickBooks has preformatted reports that you can access to have job-costing information right at your fingertips. These are found under the Reporting menu and the Jobs/Time/Mileage option.
6. QuickBooks has the ability to provide reports for any time period you select. This will allow you to have a variety of detail over the growth of your business and to produce trending reports. You can modify the report as needed to meet your needs.
A good accounting professional can help you understand what these reports are telling you, in terms that you can use. Reports alone don't provide value if you don't understand them. So it is key that you understand the reporting information and how you can use that information to assist you in decision-making as you grow your business profitably.
Job-costing is easier when you set-up your accounting/bookkeeping software package and know how to use it. So, challenge yourself today to become more adept at running a financially savvy business through job-costing. Then, you'll know, without a doubt, whether your company is profitable.
How to Prepare a Business Plan
If you're about to start a business (or approach a financial institution for funding to expand your existing business), then you must have a business plan. Your plan allows you to set your goals, assess your strengths and address your weaknesses.
You wouldn't set out on a journey not knowing where you were going, yet many people establish a business with no real concept of what they want to achieve or how they'll achieve it.
The outline below shows what you need to include in your business plan; use it to gather the appropriate information so that you get your business off to the best start.
EXECUTIVE SUMMARY
Quote (about your vision for the business)
What already exists
The niche -- as you see it and benefits your business will bring
Type of business proposed -- benefits you will bring to the market niche
Overall financial goals -- anticipated sales and profits
Funds required to start up business
BUSINESS PROFILE
Business name
Principals
Description of business: • what it aims to do• its target market
Vision -- ultimate goals
Mission -- value, service you'll offer
Competitive advantage you have -- e.g. flexibility, able to draw on wide base of talents, connections in the industry etc.
SWOT analysis [Strengths Weaknesses Opportunities Threats](Be honest with these, but only put in threats, weaknesses that you know you can meet and overcome successfully)
Objectives:• at the end of the first 12 months of operation• after 12 months
PRODUCT AND MARKET ANALYSIS
Product / Service -- description of what you're offering
Features
Benefits
Price structure
Industry description and outlook
Market demand -- percentage of market you think you can capture; competition share you think you can take etc.
OPERATING PLAN
Resource requirements:• what you need in order to operate• what this will cost
List items and specify prices (tables etc)
MANAGEMENT PLAN
Manning levels:• details of staff required• training needed
Experience of managers and their skills
MARKETING PLAN
Divide this into: Internal - how you'll win repeat customers and referrals
External - how you'll get new customers
Impact - how you'll target specific groups
Detail how you'll go about targeting and selling to each group e.g.
Service levelsVouchersHand-outsMusicDecorEntertainmentSpecial add-onsEtc.
Publicity and direct approaches you'll make (specify targets e.g. music schools etc)
Promotion (e.g. freebies, discounts, buy one get one free, every 6th something free, charity performances, openings etc)
The actual product / service you're selling
FINANCIAL PLAN
Details:• Projected sales• Projected costs• Projected profits
Give SPECIFIC details e.g. break down into gross profits, overheads, net profits etc.
ACTION PLAN
Use table to show:• Activities to be carried out• When these will be done • Who will do each
Give a chronological sequence of action to show how you plan to start and develop the business.
Provide plenty of graphs (use different styles), tables, facts and figures.
Get info from Bureau of Statistics on demography, socio-economic groups, age etc etc.
Have AN appendix and include any extra details (for example: newspaper cuttings about bands bemoaning the fact that they can't get their CDs cut etc).
By following this outline, you'll have a realistic goal for your business ... and your bank manager!
You wouldn't set out on a journey not knowing where you were going, yet many people establish a business with no real concept of what they want to achieve or how they'll achieve it.
The outline below shows what you need to include in your business plan; use it to gather the appropriate information so that you get your business off to the best start.
EXECUTIVE SUMMARY
Quote (about your vision for the business)
What already exists
The niche -- as you see it and benefits your business will bring
Type of business proposed -- benefits you will bring to the market niche
Overall financial goals -- anticipated sales and profits
Funds required to start up business
BUSINESS PROFILE
Business name
Principals
Description of business: • what it aims to do• its target market
Vision -- ultimate goals
Mission -- value, service you'll offer
Competitive advantage you have -- e.g. flexibility, able to draw on wide base of talents, connections in the industry etc.
SWOT analysis [Strengths Weaknesses Opportunities Threats](Be honest with these, but only put in threats, weaknesses that you know you can meet and overcome successfully)
Objectives:• at the end of the first 12 months of operation• after 12 months
PRODUCT AND MARKET ANALYSIS
Product / Service -- description of what you're offering
Features
Benefits
Price structure
Industry description and outlook
Market demand -- percentage of market you think you can capture; competition share you think you can take etc.
OPERATING PLAN
Resource requirements:• what you need in order to operate• what this will cost
List items and specify prices (tables etc)
MANAGEMENT PLAN
Manning levels:• details of staff required• training needed
Experience of managers and their skills
MARKETING PLAN
Divide this into: Internal - how you'll win repeat customers and referrals
External - how you'll get new customers
Impact - how you'll target specific groups
Detail how you'll go about targeting and selling to each group e.g.
Service levelsVouchersHand-outsMusicDecorEntertainmentSpecial add-onsEtc.
Publicity and direct approaches you'll make (specify targets e.g. music schools etc)
Promotion (e.g. freebies, discounts, buy one get one free, every 6th something free, charity performances, openings etc)
The actual product / service you're selling
FINANCIAL PLAN
Details:• Projected sales• Projected costs• Projected profits
Give SPECIFIC details e.g. break down into gross profits, overheads, net profits etc.
ACTION PLAN
Use table to show:• Activities to be carried out• When these will be done • Who will do each
Give a chronological sequence of action to show how you plan to start and develop the business.
Provide plenty of graphs (use different styles), tables, facts and figures.
Get info from Bureau of Statistics on demography, socio-economic groups, age etc etc.
Have AN appendix and include any extra details (for example: newspaper cuttings about bands bemoaning the fact that they can't get their CDs cut etc).
By following this outline, you'll have a realistic goal for your business ... and your bank manager!
Trading Computers for Profit
My own core business is in reselling computers for regular fast profits. In fact the business reached the seven figure mark a few years ago. Now I resell repossessed and liquidated PCs, Notebooks-Laptops on a daily basis having established an elite core of reliable suppliers, in Europe, UK, Canada and the USA. In fact, you can operate the business in any democratic country in the world.
It's a very simple business and there's really nothing to prevent you from starting your own liquidated resale business just as I have done.
Your chance to produce an annual income from your own home, or even from a commercial unit, reselling computers and software for profit is a definite possibility. Not only that but I will also tell you in this article where to lay your hands on valuable merchandise at rock-bottom trade prices.
Unlike most other businesses which require a great amount of starting capital, there is a proven method you can use to make money almost from day one. No fancy premises are required. Very little capital is needed, as it is possible to start with just a couple of notebooks to resell and then to accumulate seed capital from initial profits made which can be as high as 150 percent on liquidated items.
You can operate a computer trading business from premises or from the comfort of your home. This business is unaffected by slumps and recessions which tend to hurt most other businesses. Our own trade-training website at Beauforts.biz has been up and running for over six years and to date it has been responsible for training over ten thousand dealers to date. Not all of them have been successful, that would be an impossible scenario, but a significant number have, and several have become wholesale dealers themselves.
Sales of computers and computer software remain buoyant despite recent peaks and troughs and show no sign of reaching a peak. In fact it is growing worldwide at a staggering rate. More and more men and women are needed to help in the promotion and marketing of computers and computer related products.
If you haven't done any selling previously don't be concerned about it, there is no shortage of eager, willing buyers. All you need the desire to make regular cash profits. There is definitely no hard-selling involved . . . enthusiasm and a little common sense is really all you need to make good money in the business.
Whether you are a beginner or a pro in the computer business, it is essential when writing to the suppliers and other contacts to type your letters on your business letterhead. Many of the listed contacts will ONLY deal with TRADE and some will need PROOF of your credentials as a bona-fide trader.
You will come across some wholesale ads which specifically state TRADE ONLY. Therefore, you should WRITE on printed business headed notepaper first.
To operate the Business during the Initial stages, you will need nothing other than a couple of duplicate books for sales and purchases, but when progressing into TRADE PURCHASES you should have made sufficient profits to up-grade your business and to afford the costs of ordering printed business letterheads
If you write to a Trade Supplier, it is highly unlikely that they will respond to your letter if it is written on a plain sheet of paper. Remember, as a Trader you have an image to establish . . . your stationery can build up your image or tear it down. Never write to any source in handwritten form.
Never indicate in any letter to any source that you are new to the business . . . this does not infer that you should be dishonest in any way - you simply have no need to tell them anything about your new business other than that you are interested in obtaining trade supplies.
As an example just consider the kind of letters some suppliers receive a scribbled handwritten letter which states "I am thinking of starting a computer dealership ..." He'll still be thinking of it in years from now and such letters are considered a complete waste of time by trade suppliers. What you should do, (even if you are "just thinking about it"), is to write stating that you "intend" to start dealing in computers asking to be placed on their e-mailing list for price-lists, etc.
It's a very simple business and there's really nothing to prevent you from starting your own liquidated resale business just as I have done.
Your chance to produce an annual income from your own home, or even from a commercial unit, reselling computers and software for profit is a definite possibility. Not only that but I will also tell you in this article where to lay your hands on valuable merchandise at rock-bottom trade prices.
Unlike most other businesses which require a great amount of starting capital, there is a proven method you can use to make money almost from day one. No fancy premises are required. Very little capital is needed, as it is possible to start with just a couple of notebooks to resell and then to accumulate seed capital from initial profits made which can be as high as 150 percent on liquidated items.
You can operate a computer trading business from premises or from the comfort of your home. This business is unaffected by slumps and recessions which tend to hurt most other businesses. Our own trade-training website at Beauforts.biz has been up and running for over six years and to date it has been responsible for training over ten thousand dealers to date. Not all of them have been successful, that would be an impossible scenario, but a significant number have, and several have become wholesale dealers themselves.
Sales of computers and computer software remain buoyant despite recent peaks and troughs and show no sign of reaching a peak. In fact it is growing worldwide at a staggering rate. More and more men and women are needed to help in the promotion and marketing of computers and computer related products.
If you haven't done any selling previously don't be concerned about it, there is no shortage of eager, willing buyers. All you need the desire to make regular cash profits. There is definitely no hard-selling involved . . . enthusiasm and a little common sense is really all you need to make good money in the business.
Whether you are a beginner or a pro in the computer business, it is essential when writing to the suppliers and other contacts to type your letters on your business letterhead. Many of the listed contacts will ONLY deal with TRADE and some will need PROOF of your credentials as a bona-fide trader.
You will come across some wholesale ads which specifically state TRADE ONLY. Therefore, you should WRITE on printed business headed notepaper first.
To operate the Business during the Initial stages, you will need nothing other than a couple of duplicate books for sales and purchases, but when progressing into TRADE PURCHASES you should have made sufficient profits to up-grade your business and to afford the costs of ordering printed business letterheads
If you write to a Trade Supplier, it is highly unlikely that they will respond to your letter if it is written on a plain sheet of paper. Remember, as a Trader you have an image to establish . . . your stationery can build up your image or tear it down. Never write to any source in handwritten form.
Never indicate in any letter to any source that you are new to the business . . . this does not infer that you should be dishonest in any way - you simply have no need to tell them anything about your new business other than that you are interested in obtaining trade supplies.
As an example just consider the kind of letters some suppliers receive a scribbled handwritten letter which states "I am thinking of starting a computer dealership ..." He'll still be thinking of it in years from now and such letters are considered a complete waste of time by trade suppliers. What you should do, (even if you are "just thinking about it"), is to write stating that you "intend" to start dealing in computers asking to be placed on their e-mailing list for price-lists, etc.
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