Three Best Ways to Catch an Employee Thief

Three Best Ways to Catch an Employee Thief |Wall Street Journal|By SARAH E. NEEDLEMAN

If your small business can’t afford external auditors, security cameras or other resources for spotting employee fraud, consider doing some detective work of your own. The effort could save your firm from a significant financial loss or worse—failure.

After all, a single heist could be fatal for a small business, says Richard Hollinger, a professor of criminology at the University of Florida. Small firms typically don’t have

the financial resources to fall back on that large organizations have, he explains. (See related story, Business Owners Get Burned by Sticky Fingers.)

Employee fraud can take place right under a business owner’s nose. According to the Association of Certified Fraud Examiners, an anti-fraud trade group in Austin, Texas, such activities occur on average for as long as two years before the victim organization catches on.

The phone keeps ringing. Some corrupt workers will instruct friends to repeatedly call a business and ask if the owner is on site until the answer is no, says Mark R. Doyle, chief executive of Jack L. Hayes International Inc., a provider of workplace crime-prevention services in Wesley Chapel, Fla. Once they hear those “magic” words, the friend knows it’s safe to come by and swipe merchandise under the rogue employee’s watch, he explains.

The math doesn’t add up. Two years ago, ReShonda Young noticed a subordinate at her father’s transportation company, Alpha Express LLC, had turned in a weekly time sheet with more hours than he could’ve possibly worked. That prompted Ms. Young, a manager at the Waterloo, Iowa, company, to investigate further and she discovered that the employee had been stretching his hours for months, initially to a less-noticeable extent. “I guess it got to be a little easy,” she says. Now all supervisors must review and sign workers’ time cards before they can be processed, says Ms. Young.

Money problems surface. Financial pressures are a key motivator of occupational fraud, the ACFE reports. For this reason, business owners should take note of any excessive complaining by a worker about money burdens. And if such a person’s lifestyle suddenly improves dramatically, this could signal he or she has their hand in the company’s cookie jar.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

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How to Manage Multiple Business Locations

How to Manage Multiple Business Locations | Inc |By Darren Dahl | Mar 4, 2010

Thomas Friedman was onto something when he wrote his book, The World is Flat. Companies increasingly feel the need to expand their reach into new markets—both domestically and internationally—from a very early age.

One direct result of this expansion is that you may now be forced to manage multiple locations and oversee employees in distant offices—a fact that can cause quite a few challenges and headaches, says Eric Bloom, president of Manager Mechanics, a management-training firm based in Ashland, Massachusetts.

“No matter how widespread your organization becomes, you need to work hard to retain team cohesion and the philosophy that everyone is on the same team regardless of where they work,” he says.

Dig Deeper: Why You Should Expand

Managing Multiple Locations: 6 Challenges

1. Out-of-site-out-of-mind syndrome. When things get busy at your primary location, it can be hard to give your employees based at other locations the time they deserve.

2. Loss of spontaneous communications. Because you do not see your employees in the hallway or at meetings, there is very little natural or unplanned communication.

3. Attenuated logistics. Anything that cannot be sent electronically, must be mailed, which causes time delays and increased effort.

4. Complicated work assignments. It is harder to perform certain types of jobs or collaborate on them when employees are based in remote locations

5. Lack of team cohesiveness. Your team members will not know each other as well. This can easily lead to an “us-versus-them” mentality.

6. Concerns over general supervision. If you have a remote office that clients visit, it’s virtually impossible to see if your employees are arriving on time, working appropriate business hours or wearing proper business attire.

To tackle these and other challenges, then, organizational leaders need to focus on three key areas: systems, technology, and communication.

Managing Multiple Locations: Put Systems in Place

The old adage is that systems run businesses, and people run systems. “You must have systems in place to be able to standardize the quality of your communications, products and results,” says Bert Martinez, founder of Bert Martinez Communications, a business training and communications company with multiple locations. “Systems will allow you to duplicate offices and grow faster with reduce training times and supervision.”

The key is to establish clear responsibilities, boundaries, and authority, says Ann Latham, president of Uncommon Clarity, an organizational-behavior consulting firm in Easthampton, Massachusetts. “Vague responsibilities create the proverbial cracks into which everything drops,” she says. Muddy boundaries create disasters ranging from personnel problems to legal ones while insufficient authority can become a source of delay and demotivation. “An employee with everything needed to exercise good judgment except either the authority or sense of responsibility to do so is worth little,” says Lantham.

The point, then, is to make each employee’s responsibilities clear through an organizational structure combined with a system that measures each and every employee, and holds everyone accountable for delivering on their work responsibilities regardless of where they are based.

Dig Deeper: Building Systems to Manage Your Business

Managing Multiple Locations: Adopt New Technology

With the advent of the Internet, and the prolific surge in the number of collaborative tools that have spawned from it, technology has become an integral part of the backbone for any far-flung organization, says Bloom, particularly because it can help your organization cut down on business travel expenses.

While many organizations rely on custom-built software platforms and intranets as collaborative platforms, some of the most commonly-used tools by small businesses in particular are also either free, cheap or available as a software-as-a-service, which means you can access these tools over the web for a monthly fee. Some of the best and cost-effective options include:

• Google Documents, Gmail and Calendar for internal training and communication.
• Basecamp: An popular project management tool.
• Facebook : The now ubiquitous social networking tool is just as useful for business as it is for personal applications.
• Skype: The surge in VOIP technology and software means that you can communicate with remote employees cheaply and effectively.
• Salesforce.com: One of the most popular tools around, Salesforce.com allows remote sales team to collaborate in real-time on maintaining your company’s sales pipeline.

A new wrinkle in terms of technology is that many firms have begun to equip all of their employees with smart phones such as the iPhone as a way to enable them to access any web-based technology regardless of where they are, including many new applications.

Dig Deeper: The Latest Small Business Technology News

Managing Multiple Locations: Focus on Communication

Systems are a must, technology is important tool however, none of these will work with out real communication, says Martinez. “Communication is the key to collaboration with your offices, coworkers, and clients,” he says. If you neglect this aspect of running your business, you do so at your own risk, particularly in a business with multiple locations. That’s why Martinez also makes having his employees have time face-to-face a priority by having his offices take turns hosting each other once a year to enable communication between people on all levels.

Other tips for fostering communication between your employees based in the office and elsewhere include:

1. Establish full team weekly staff meetings via phone or webinar to get your whole group together.

2. If possible, have web cams so your team members can see each other.

3. Make each physical site responsible for a specific type of work, rather then assign random tasks associated with a central project.

4. When doable, have the CEO or management members personally visit each remote site on a scheduled basis, every month, for instance.

5. Establish weekly phone-based staff meetings individually with each remote group so that each physical location will get time with top management.

6. If possible, get your whole group together once or twice a year for staff meetings, brainstorming and team building.

Dig Deeper: How to Improve Your Communications Skills

Managing Multiple Locations: The Global Workforce

Managing multiple locations across the U.S. is hard enough. But when you add a new sales office or manufacturing plant overseas, says Bloom, you can actually run into a host of new challenges associated with cross-cultural communication that include:

1. Time zones. There is limited or no overlap in the standard workday.

2. Language. Even if everyone has a common language, English for example, differences in accents, language fluency, and the use of slang expressions can make communication extremely difficult, particularly on conference calls and speakerphones.

3. Social norms. Cultural differences from country to country can accidentally cause tension, embarrassment, and miscommunication.

3. Holiday schedules. Scheduled meetings, reporting deadlines, cash flows and standard business processes can be derailed or delayed based on local holiday schedules.

4. Technical connectivity. Not all countries have high-speed connectivity at all locations.

5. Labor laws. Laws regarding hiring, employee termination, hours worked, layoffs, sexual harassment differ from country to country.

6. Business-related laws, ethics, and practices. Business is conducted very differently from country to country.

7. Personal-privacy laws. In European Union member states, the laws regarding the personal use, storage, and transport of personal information are quite stringent compared with those in the U.S.

Dig Deeper: Building the Best Virtual Workforce

Managing Multiple Locations: Adapting to Different Cultures

Bloom suggests tackling these challenges by considering the following tips:

1. Find one key contact in each country that is very knowledgeable in local customs, business practices, and laws.

2. Learn to pronounce people’s names correctly.

3. Gain a basic understanding of country politics and current events.

4. Know the names of your managers and leaders in those countries and pronounce their names correctly.

5. Find ways to take advantage of the time zone differences.

6. Be respectful of the differences between people and cultures.

The bottom line in managing multiple locations, says Martinez, is to help make everyone in your company feel motivated and part of the team, regardless of where they do their work. “When your people feel good and that they matter, they will perform better,” he says.

Dig Deeper: How to Be a Lead Teams in Emerging Markets

Managing Multiple Locations: Additional Resources

Corporate Agility: A Revolutionary New Model for Competing in a Flat World, by Charles Grantham, James P. Ware and Cory Williamson (AMACOM, 2007.) This book will show you how to get your company to embrace new technology, understand the ever-changing workforce, and rethink the way you structure work environments to deal with the global economy.

Competing in a Flat World: Building Enterprises for a Borderless World, by Victor K. Fung, William K. Fung and Yoram (Jerry) Wind (Wharton School Publishing, 2007.) A book filled with solid tips to create a flexible organization capable of competing anywhere.

The Facility Management Handbook, by David G. Cotts Kathy O. Roper and Richard P. Payant (AMACOM, 2009.)
A great reference guide for understanding and implementing best practices for the modern workplace.

Tips for Effective Communication

Effective communication is essential to ones career growth. It includes both conveying messages clearly and receiving messages clearly from others. Communications skills help you when presenting a weekly report to your team, completing a sales call to a possible client, emailing your boss, or chatting with coworkers. Although each situation requires a unique approach, there are some general communication tips that apply to all types of audiences.

Tip #1: Know the topic you are discussing. If you are giving a speech to a large group of people, be sure you are familiar with the subject. Or if you are sending an email to your boss, be sure to understand what you are asking or discussing. Your audience can easily pick up on a lack of knowledge and will not value your communication if detected.

Tip #2: Know the audience. There is a big difference speaking to a work friend in the break room and discussing a deal with a customer. You want to adapt to the situation and match your communication to the level that is needed. Not to say you should change who you are but understand that what you know and do not know about the audience. Are they knowledgeable on the topic? Do they have cultural differences? What are their expectations from you? How much do they know about you? These are the types of questions you want to ask yourself before deciding on a communication technique.

Tip #3: Use the right communication channel. These include face to face, telephone, video conference, and written (email, letter, memo, etc). If you are discussing a confidential topic, you would want to be sure you use a method that reaches only a qualified audience. If you are reporting on a long, in depth subject, a phone call might not allow proper interaction. Maybe graphs or displays would work better in a face to face meeting.

Tip #4: Be to the point, positive, and polite. Do not ramble on about unnecessary information or personal references when they are not needed because the audience will become distracted. Reflect the news, even if bad news, in a positive light. If you begin speaking negatively, people tend to get their back up or become worried about the topic. They will then pay less attention to whatever else you have to discuss. And, always remember your manners, they go a long way. An audience will become more receptive if they are treated well and feel respected. Being rude will create an instant barrier that is tough to get through.

Tip #5: Listen. Communication is not just about you talking, it is receiving information and feedback from others. Whether you ask a question and the audience is answering, you send an email and the recipient I responding, or you are getting the opinion of others in a team meeting, be sure to listen fully. If you do not comprehend what they say, ask questions or for them to repeat it. Listening will help you clearly understand your audience so that they will clearly understand you.

Communication skills can be learned overtime through your experiences or you can take part in a communication skills training. Many businesses or organizations offer training to their employees or members so that they can present themselves effectively.

Creating a Memorable Tradeshow Or Event

Are you in charge of an event or tradeshow? Want your attendees to have more fun and provide you with great testimonies? The fastest way to learn anything or generate lasting memories is by creating Intense Emotional Associations (IEAs). Here is an idea that will create a lot of fun emotions and lasting memories try it for event or tradeshow.

Nowadays videos are all the rage and most people don’t mind posing for a video bite here and there. Assign a staff or two to take short videos, 1 minute or less, of the attendees and presenters having fun at the event. While they’re in this Intense Emotional Association (IEA) ask them to give a recommendation (sometimes referred to as a shout out or a sound bite) or testimony about the event, a workshop or a presenter, then ask if they would like a copy emailed to them, you know they all will.

Now you have intensified their emotions and created a lasting memory for them and your event. Be aware due to smartphones the videos would be uploaded every hour or so and emails sent to the individuals, if possible, if not, make it a priority right after the event. The videos will be seen and as always sent to coworkers, attendees, family and friends so now your event grows virally, also these videos can be used for future marketing of events and can be placed on your website as well.

Items you’ll need: A video camera, I recommend the Flip video camera they’re inexpensive and very easy to use and have all the software built right in the camera. Amazon has the Flip Video Cameras for about $100.00. High-speed internet access and a site to upload your videos like youtube.com or kyte.com. A note pad for collecting emails.

First-Time Owners Find Management Comes With Headaches

Wall Street Journal | Small Business By SARAH E. NEEDLEMAN – FEBRUARY 24, 2010

When Cameron Madill launched Synotac Design LLC in 2003, wiping away tears and giving pep talks wasn’t on his to-do list. But once he began hiring employees for his Web-site development firm two years later, he learned that dealing with people matters comes with the job.

“I was interested in building a company,” says Mr. Madill, a first-time business owner in Portland, Ore. “I never thought through that it meant I would have to hire people, terminate people and do all of the things associated with being a boss.”

It’s common for first-time entrepreneurs to overlook responsibilities tied to managing people when starting out, says Edward P. Marram, a senior lecturer of entrepreneurship at Babson College in Wellesley, Mass. With all the focus on selling a new product or service, “most don’t think about being a boss,” he says.

But at some point, business owners typically need help to grow, Mr. Marram says, and that means hiring staff, delegating responsibilities, and learning to be effective managers. For the inexperienced, those management duties can be challenging, depressing and sometimes plain awkward.

For instance, entrepreneur Lisa Morris last year had to deal with an employee who accidentally copied her on a highly graphic email to a hotel sales manager. “He was saying he’d do certain things to the person’s body for good rates,” recalls Ms. Morris, owner of Road Concierge Inc., a travel- and concierge-services firm in New York. “We’re all about servicing our clients, but not actually servicing them.”

Ms. Morris, who started her business in 2006, says she felt “really uncomfortable” scolding the employee for his behavior because ruling with an iron fist isn’t her style. “I don’t like to be very corporate,” she says, adding that she runs a casual office where employees’ pets are welcome.

Still, while it was clear that the email exchange wasn’t serious, nor was the recipient offended, Ms. Morris says she needed to stress that a repeat performance would be unacceptable. “I hate having to act like a mom,” she says. “But there are times when you can’t be nice. You’re the boss and you have to enforce policy.”

Many first-time business owners struggle with laying down the law because they are in fact former corporate employees who became entrepreneurs in part to escape rigid work environments. The worst situation, however, is having to tell an employee you can no longer keep them on board.

Sandy Sabean, co-owner of Womenkind, pictured center, meets with employees Lara Ngai, left, and Betsy Handwerker, right.

“You feel terrible,” says Sandy Sabean, co-owner of Womenkind LLC, a New York marketing-communications firm with five employees. Last year, she says, she laid off two workers for the first time after the company lost a bid. “When you have to let someone out on the street under those circumstances it’s hard,” she says. “It’s sad.”

Gary Hewing, co-owner of Bert Martinez Communications LLC, a sales- and business-training firm in Houston and Scottsdale, Ariz, says it’s just as rough to fire someone for poor performance. “You know they’ll have a tough time finding a job and that you’re giving this person the last check they may have for months,” he says. “It’s extremely difficult. I do not appreciate that aspect of the job.”

Some inexperienced entrepreneurs are caught off guard by just how significant a role a boss plays within a small company.

Mr. Madill, whose Web-design firm has eight employees, learned that lesson about three years ago when a worker who was hired to do miscellaneous tasks refused to take on a new assignment and subsequently offered her resignation.

A self-described pushover, Mr. Madill agree to let her stay on the company payroll for the next six weeks while she searched for a new employer. “She helped build the company,” he says. “You feel some loyalty to your first few hires.”

But the decision drew resentment from the rest of the company’s staff, says Mr. Madill, particularly because the uncompromising employee did little work from that point on. “It led to an unbelievably toxic atmosphere,” he says. And when the problem worker was finally gone, things changed dramatically. “Productivity suddenly increased,” he says. “You would’ve thought we hired a person the day she left.”

Mr. Madill says he since changed his outlook on business leadership thanks to the advice of counselors at Accelerator, a nationwide support organization for early-stage entrepreneurs. Other support groups small businesses can turn to for advice include Young Entrepreneur, Energizing Young Entrepreneurs and SCORE.

Now Mr. Madill believes that as a business owner, “you only have an obligation to make (your employees) successful to the extent that they give more back to the company,” he says. “And if someone doesn’t understand that, it’s not your responsibility to educate them.”

Write to Sarah E. Needleman at sarah.needleman@wsj.com

Using the Power of Networking for Your Small Business

Networking is one of the most crucial skills any start-up entrepreneur must have. It is an effective and inexpensive way to grow your business by meeting the key people who could become your clients, suppliers and support systems.

In fact, networking is the best marketing device of even the most cash-strapped home-based entrepreneur. It is based on an inexpensive endeavor using a simple skill: talking. As a result, networking is also referred to as “word-of-mouth marketing” because it is based on talking to people about what you do and listening to find out how to serve them. The best networkers do not even know that they are networking – they are simply being good conversationalists; adept at becoming visible; talking and responding, and getting to know people.

However, many people are put-off with the idea of networking. Some view the practice akin to “politicking” requiring an extremely outgoing personality willing to approach anyone who would care to listen. Many start-up entrepreneurs also have a hard time approaching other people – particularly strangers – about their business. It may be the fear of speaking out to a total stranger, or the fear of coming on too strong or aggressive. Others let their insecurities take the better or them, while some people fail to network simply because of laziness. As a result, many formal gatherings and social situations become lost opportunities to spread the word about their business.

Everyone you meet is a potential customer or a valuable contact. Well, maybe not the old lady you met in the library if you are selling shaving cream. But then again, that old lady may have a husband, son or nephew who could use your product. Marketing is simply spreading the word around, and it is a big loss if you continuously pass up opportunities for networking.

Schmoozing pays. In fact, the growth of any business is directly correlated to the number of people who knows about it. Doing more of networking allows you to develop more contacts in your field and to exchange information with your prospects. It can help you find out the concerns of your prospects and who is fulfilling them; what’s happening in your industry; and who needs what and who offers what. It is basically an entrepreneur’s tool for relationship building.

Successful networking entails harnessing your people skills. But it doesn’t happen overnight, particularly for those who are not natural social butterflies. It requires careful orchestration and good manners, too. Here are several steps to help you become an effective networker:

1. Prepare a plan. Networking goes beyond greeting people. You need to prepare a step-by-step plan for how you’ll build relationships and how you can effectively tell your story. It entails getting to know people who will either do business with you or can introduce you to people who will. When people ask you what you do, make sure you have a clever opening line to introduce yourself and your business.

2. Use social networking sites. LinkedIn http://www.linkedin.com , Facebook http://www.facebook.com and even the microblogging site Twitter http://www.twitter.com are excellent venues for virtual networking. Whether you are looking for potential partners, web site or blog contributors, or strategic partnership opportunities, these social networking sites allow you to expand and nurture your network in the comfort of your computer screen. LinkedIn, in particular, is most suited for professional networking as you can easily see the work and business background of the person.

3. Learn to communicate more easily. To be a good networker, you need to work on your ability to make small talk. You need to be able to articulate what you do in clear, easily understandable, and memorable way. Imagine yourself in a cocktail party or industry luncheon full of potential prospects. Set a goal of meeting at least two people in one event, slowly increasing the number as you become more comfortable with the art of schmoozing. Once you are at an event, do not stand around with appetizers in hand waiting for other people to approach you. Go out, head straight to people you do not know, and start a conversation. This will help you gain the interpersonal communication skills that you need. You will defeat the purpose of networking if you continuously stick with familiar faces. Get interested in what others are offering or saying without being abrasive. Good networkers are good listeners, too.

4. Identify your prospects. Know your most likely market, and learn where you will find them. Research as much as you can from the ideal prospects for your business. How do they get their information? Do they live nearby? What activities do they participate in? What organizations do they belong to? The more you know about your customers, the easier you can reach them.

5. Start with people you know. Look at your roster of friends, colleagues, acquaintances, and people you have come across in your lifetime. From among your friends, identify whom you think might be able to help you the most.

6. Get involved. A key to successful networking is to get involved and grow your people skills. Participate in organizations, events, professional groups and social clubs that offer opportunities for you to meet and greet. Participate in numerous networking groups, join your chamber of commerce, and attend conferences and training seminars. With the advent of the Internet, you can also network in online newsgroups and discussion boards. The key is to list every opportunity to network and develop win-win relationships with your contacts.

7. Make networking a part of you. Make it a point to meet new people wherever you go – whether you are on the plane, waiting in line at the bank, or fetching your child from school. Be generous in giving away your business cards, it’s an effective selling technique.

An established business has the luxury of satisfied customers spreading the word about the business. Until your business is self-sustaining, you need to start opening your mouth, spreading the word about your venture to all your friends, relatives, acquaintances, then later on, even strangers.

by Isabel M. Isidro Brought to you by DLDESIGNSONLINE.COM

Internal Hires, Referrals Were Most Hired in 2009

Wall Street Journal | By SARAH E. NEEDLEMAN

Last year, employers filled more than half of job openings with existing employees, a new study to be released Friday shows.

Internal transfers and promotions accounted for an average of 51% of all full-time positions filled in 2009, down from 39% in 2008 and 34% in 2007, reports CareerXroads, a staffing-strategy consulting firm in Kendall Park, N.J. Survey respondents included 41 companies that employ a combined 1.8 million U.S. workers. Last year these firms collectively filled 176,420 positions.

For the 49% of jobs that were filled with external recruits, referrals accounted for the most hires — 27% — and about the same number as in 2008. On average, these yielded one hire for every 15 referrals received. Meanwhile, company Web sites and job boards accounted for 22% and 13% of external hires, respectively.

What the findings indicate, says Mark Mehler, co-founder of CareerXroads, is that networking is the most effective strategy for landing employment. “Job seekers should use job board and corporate sites to find information about openings, but they should use their network to apply,” says Mark Mehler, co-founder of CareerXroads.

Among the job boards that respondents credited for netting outside talent, CareerBuilder.com came out on top, accounting for 42%, however one respondent claimed a significant portion of these. Monster.com netted 12% of external hires, while aggregate job sites, which advertise openings from multiple job boards, hooked 10%. Classifieds provider Craigslist.org accounted for 2.8% of external hires.

Survey respondents also said outside talent was found via job boards that specialize in advertising open positions in specific categories. For example, Dice.com, a job board for the technology sector, netted 0.8% of external hires, as did TheLadders.com, which lists only positions paying salaries of $100,000 or more. All other niche job sites that employers identified were collectively credited with bringing in 27% of external recruits.

Going forward, the survey found that 48% of respondents expect to increase hiring in 2010 compared with last year, while just 11% predicted they’d reduce hiring. The remainder said they expect to make no changes to their head counts.

Meanwhile, the Labor Department reported Thursday that there were 2.5 million job openings on the last business day of December 2009. The seasonally adjusted job openings rate increased just slightly to 1.9% from 1.8% the month prior.

Write to Sarah E. Needleman at sarah.needleman@wsj.com

10.5 Biggest Mistakes to Avoid When Starting A Business

The following list is derived from my experience. Based on my actions and results I retired from corporate America at the age of 28. Filed bankruptcy at 30. I’ve been involved in several successful businesses and many unsuccessful ones too.

#1 – Never let your expenses exceed your sales. Yeah, I know that’s easy to say, because you say “Jeez, that makes perfect sense, if my expenses never exceed my sales then quite honestly I’m always going to have positive revenue. I’m always going to be in the profit. Wow. That’s fundamentally smart. But c’mon Bert, it doesn’t work that way in the world. Why? When we start out we don’t have any sales yet, and so our expenses have to exceed our sales on day one.” And you’re correct. That’s true, so I want you to have a concept, a goal or even a burning desire. That you will make those days the fewest number of days absolutely possible that your expenses are exceeding your sales.

#2 – Failing to collect the money or the receivables. Question – Should you really be extending credit to people? I don’t care what business your in retail, wholesale, hospitality, legal, or whatever. Selling is what you about not carrying receivables. Don’t extend credit, get paid now! Look fewer customers that have paid you 100% are way better than having more customers when some of them didn’t pay you at all. More cash, less stress – you don’t have to be real smart to do the math.

# 3 – Failing to take care of your employees. People have say that the customer is number 1 – right? Maybe not. Well who is taking care of your customers? Your employees handle quality and service and delivery? Well if you haven’t taken care of your employees, they’re probably not going to take care of your customers very well. It’s just that simple. It’s goes without saying that if you do take care of your employees, they will take care of your customers.

#4- Failing to take care of your customers. Real simple the easiest customer to get are existing customers. There is usually more profit in repeat customers than in new customers. A happy customer is a good customer a good customer refers more customers. Take care of your customers and they will take care of you.

#5 – Underestimating your competition. We can, no matter what business we’re in, we think of our competitor as dim-witted, we think of our competitor as incompetent. Remember this -our battle isn’t against them. It’s for the customer, not against our competitor. We don’t win by doing damage to the competitor. We’re not in a battle with him really. We’re in a battle for someone else. So quit thinking about the competitor and start thinking about your competitor’s customers.

#6 Inadequate capital – Now I’ve started business with no money because I had to but then you quickly come to realize that you do need money to operate. You do need capital to grow the company and get to the next level. And here are 2 rules you should remember about capital. And, just in case your not clear, capital is the money we need to fund the organization, to buy the inventory, to hire employees, to do all those things that we’re going to need to do. Well here’s are 2 rules you need to appreciate. Is that your expenses are going to be hirer than you anticipated and your revenue is going to be slower than you anticipated. Those two statements are true in 99.99% of every single business that has ever started. Well that’s what happens. It happens almost all the time. Because we are optimistic, if we weren’t optimist we wouldn’t have started a business. We over-projected what our revenues are. What I’m telling you as a practical, experienced businessman lower that number. Now if you beat, if you excel… wonderful! Find a place to spend it. But if you have shrunk it down, conservative in your projection then you might be safe.

#7 Underestimate the length of time to break even. The break even is a magic moment in the making of a business and if you don’t understand let me try to explain the concept to you. Break even is that magic point when you quit putting money into a company and the company is finally sufficient enough that it starts to pay for itself or is finally starts to pay you for having been there first.

# 8 Focusing on profits instead of on cash flow. Business people, when they first start out, they focus on profits instead of on cash flow. And I know this is going to sound like sacrilege to some people saying well,” aren’t we supposed to be all about profits? absolutely, and yes! And we want to get there as fast as we possibly can! But before we get there we have to make sure something else happens first, and that is that we always have positive cash flow. We always have enough money to pay the rent. We always have enough money to pay out employees. We always have enough money to buy more supplies, to do more marketing, that’s really crucial. That’s called cash flow. Profits will follow the cash flow I guarantee it. Now there’s a different in being profitable and having positive cash flow, you can be unprofitable where you’re actually losing a little bit of money but still have positive cash flow. I’m telling you when your first starting a business, if you have to pick between the two, now if you could have both of them, great go get both of them and that would be wonderful, but I also will tell you from experience getting both of them when your first starting out is really going to be complicated. You’re going to have to make a decision between the two. Pick cash flow when you’re first starting your business.

#9 Over estimating size of your market. Entrepreneurs are optimists and we tend to have this attitude that everyone is going to want to buy what we have – that just doesn’t sell. Get over it. Just come to understand that it’s not going to happen. So what you need to be able to do is think about Bottom Up Marketing. It isn’t how many potential, how many people are out there, it’s about what you can you really do. Bottom Up Marketing looks at your capacity. So if you’ve got 1 employee, 3 employees, 7 employees, that’s all you can handle. It doesn’t matter how many people might want your widget. You can’t handle it! So think coolly about the real size of your market and don’t ever estimate it because you can’t handle it right now. You only need enough market to handle the capacity you presently have, and if you can do that efficiently you will be profitable, and if your profitable you’ll be successful and if your successful you can grow the company again, and again, and again. Do a little research on “Bottom Up Marketing” and you have a better understanding of the concept

#10 No Advertising/Marketing plan. So how are you going to drive your sales through advertising or through sales people. You need to develop your marketing plan, you need to have enough capital to drive sales. I’ve seen to many times were entrepreneurs will invest all this money in equipment or to get the doors open only to discover they have no way to adequately drive sales.

#10.5 – Exit strategy. At one point, P.T. Barnum noticed that people were lingering too long at his exhibits. He posted signs indicating ” “This Way to the Egress”. Not knowing that “Egress” was another word for “Exit”, people followed the signs to what they assumed was a fascinating exhibit…and ended up outside. So what am I talking about? We should start a business that we can create and build something that we can sell, transfer, dispose of, or hand off to someone else. That should be a goal maybe the first goal as you begin to vision your successful business.

Remember . . . You Were Created to Succeed!

Fatherhood – As seen June/July 2009 issue of Fit Pregnancy

Rub! Rub her feet, rub her back, rub her shoulders.

If family members (yours or hers) offer help, take it—but be specific about what you need help with. One of the best things someone can do is bring dinner over or babysit while the new mom takes a nap during the day

Sometimes you just have to let a crying baby cry—believing you have some control will only frustrate you. The baby will pick up on that emotion and cry even more. If you’re rested, you can handle the situation much better.