Launching A Home Business: Don’t Let Finance Hold You Back

While it’s true that running a home business is a more affordable option than running a business that is based on a commercial premises due to much lower overhead costs, it still does not come cheap. That’s why, before you can take steps to launch a home-based business, you need to consider the financial side of things and how to make it affordable.

We say ‘how to make it affordable’ and not ‘whether it’s affordable’ because your finances should not hold you back from reaching your dreams. The fact is that just because a lack of finance could hold you back from making your aspirations a reality, that doesn’t mean that they have to. There are plenty of steps that you can take to ensure that you are able to afford to run your business. One of the first steps would be opening a business account, to keep track of your finances. You can visit https://www.atlanticunionbank.com/commercial to get more information.

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Wondering what these steps are? Read on for everything that you need to know!

Work out a budget

The first step to successfully launching a home business is working out a budget for your venture. Sit down and create a detailed business plan and then use that to work out a budget for your business. If numbers aren’t your strong suit, you might want to consider talking to a financial advisor who can help you to put a plan in place for your business’s finances. To keep costs low, you might be able to get a 30-minute free session with an advisor and then only pay for another half an hour or so, so to clean your credit, there’s no short answer on what a good ChexSystems score is, however there are some personal observations revealing the range can help with this.

Consider your financing options

The next step  that Hawley Advisors: check out our wealth management offerings in California suggest is to consider your financing options. So what you want to do is research what options you have in addition to using the funds that you have saved yourself. The first option is to look for business grants – grants are good because they don’t require paying back which can help make running your business more affordable as the money used to set it up is not repayable. Another option could be to use resources like https://personalloan.co/ to look for a personal loan that you could use to help set up your business. Purchase order financing is an alternative way you should also consider to access working capital. You can use PO to access liquidity by applying for funding to a financial institution. Or, how about considering taking a financial investor on board – someone to be part of your business and take a small percentage of your earnings?

Get creative

When money is tight and you only have a small income to work with, it’s vital that you know how to get creative. Think about the ways in which you can make the funds that you have access to go further like investing in hodl stock. Look at ways that you can cut costs to make it more affordable to start your business. There are always options available, it’s just a case of finding them.

Finance is a key part of running any business, but that doesn’t mean to say that a lack of it has to hold you back. Just because funds are tight, that doesn’t have to mean that you can’t launch your business, it’s just a case of finding a way to start your venture with a smaller than expected budget. It is doable, it’s just a case of knowing how to do it.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

text me: +385/9193-55474
email: hrvojeh75@gmail.com

How To Get To Know Your Customers Better

Your customers are the backbone of your business, and, as such, it’s not hard to see how you could benefit from knowing them as well as possible. Alas, the usual complaint from companies is that while they want to understand their clients better, in practice, it’s not all that easy to do. This was once a truism, but we’ve come a long way in recent years, and now there are plenty of ways to dig a little deeper into the mind of your customer, especially in the digital sphere. We take a look at a few of these methods below.

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A Solid Buying Persona

But before you get too deep in to understand who your customers are and what makes them tick, you should have a basic understanding of the type of people interested in your business. This is called your ‘buying persona,’ and while it doesn’t lead you to the mountaintop of customer knowledge, it does at least function as a way to understand who you’re NOT targeting. Understand that your target customer is 30-45 and has a high disposable income won’t give you everything, but at least you’ll know not to target the 18-21 poor student demographics, for instance.

Past Buying Habits

Your customers have already told you a lot about themselves. You just need to know where to look. For example, a customer has bought stuff from you before, and if you’ve got their basic information, then you know what that was. If you know that someone has purchased a tent, stove, and ax from you, then you can be reasonably sure they’ll be interested in outdoor clothing gear. This is actually how Amazon boosts their sales. They get to know their customers by seeing what they’ve bought previously, and then market related products to them. Simple? Yes. Effective? Absolutely!

Identify Who They Are

However, this method won’t work for all of your customers. It’ll only work with your past customers; it does nothing for your future customers, the ones who are interested but haven’t yet made the relationship between themselves and your company official. But good news: there’s a way to understand something about these people too. It’s called Visual Visitor, and it’ll help you identify the people who visit your website but who don’t identify themselves (for example, by logging in to an account). These form the bulk of visitors to your website, so it’s not hard to see how you could benefit from knowing who they are!

Analyse How They’re Using Your Website

Your customers will subconsciously tell you the areas of your website that they like, and the areas that they don’t. You’ve got all the data there; you just need to use it! Have a look at what pages your visitors look at and how long they spend there. If you’ve got some pages that people rarely seem to visit or click out of straight away, then you’ve got a pretty clear image that your customers don’t approve. Just by looking at the data you’ll have gotten to know your customers that little bit better. Perfect!

Ask for Feedback

If you want to know what your customers are thinking, then you could always try something novel and…ask them. If you’re not sending your customers feedback forms after the transaction has been completed, then what are you waiting for? They might have a lot on their mind, and are just waiting for an opportunity to speak up. OK, in reality most of your customers will ignore those emails you send, but the rare few will respond. If response rates are really low, offer a sweetener, such as the chance to win a gift certificate.

Follow Your Social Media Mentions

Of course, some customers are going to give their feedback in a less direct way. They’ll just talk about your company to their follower on social media., and they might not tag your company in it. It’s good practice to search for your company’s name on Twitter and the like. You might receive some praise…but in reality, most people use these platforms to complain. Still, you’ll learn something about how to improve your services!

Face to Face Meetings

Finally, don’t forget the tried and tested face to face meetings. People are more open when they’re speaking face to face, and more likely to give a company credit when they see the people working behind the scenes. When you have cause to celebrate, host an event and invite your most loyal customers to attend.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

text me: +385/9193-55474
email: hrvojeh75@gmail.com

How To Improve Your Customer Service And Customer Satisfaction

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As any small business owner should already know, customers are what keep your company afloat. Without them, you’d have no one to buy anything, which means you that wouldn’t be making any money. Since cash is the thing that keeps the business world turning, it’s absolutely vital that you do what you can to attract customers to you and ensure they keep spending. An important part of this process is improving your customer service and customer satisfaction. As the boss, it’s your job to ensure that your customers are truly happy with their service. There are plenty of ways to do this, so here are fifteen ideas for you to consider.

  1. Understand Who They Are

Trying to guess who your customers are or what they want is never a good idea. In fact, more often than not, it will just lead to wasted time and money. Because of this, it’s important that you do your research and examine the core characteristics of those that shop with you, including their age, location, income, and lifestyle. You can find this out using marketing analytics reports. Once you have this data, you can adjust your service and marketing for those you actually serve.

  1. Personalize The Customer Experience

There’s nothing customers hate more than being treated like one in a long line of nameless, faceless consumers. If you want to boost loyalty to your brand and improve customer satisfaction, then you should ensure you treat every person who shops with you as an individual.

You can do this by personalizing their experiences with you. There are lots of simple ways to do this, but one of the most popular is offering freebies or discounts to customers on their birthdays.

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  1. Ensure You’re Always Available

When a customer has a question or feedback, it’s important that they can contact you right away. If they can’t, they’ll think it’s because you don’t care what your customers have to say. Because of this, you should buy 1800 numbers for your business. This way, they’ll be able to call you no matter the time of day, and it won’t cost them anything. You should also be available by post and email and should have all of this contact information clearly on your company website.

  1. Help Customers Help Themselves

As important as it is to be there to help, customers almost always try to find information out themselves before they even consider contacting a business directly. With that in mind, it’s essential that you make this process as easy as possible, by adding a frequently asked questions (FAQs) page to your website. This makes life easier for your customers and means you’ll have to spend less time answering the same questions over and over again.

  1. Use Your Website Effectively

In most cases, consumers look for a specific product or service online, rather than heading straight to a business website. Because of this, you need to ensure that your site is optimized for search engines. If it isn’t, you won’t show up in the first few results, making it highly unlikely that potential customers will find you. To do this, you should ensure that your site loads quickly, is optimized for smaller devices, is easy to navigate, and has original content posted regularly.

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  1. Take Time Hiring Employees

With so much work on your plate, delegating tasks to a team of employees is just part of owning a business. However, when these tasks are customer service related, you want to ensure that the employees you’re giving them to are the right people for the job. To do this, you need to focus a little bit more time on the hiring process and make sure you find people that genuinely care about your company and customers. You should also give your hires customer service training.

  1. Retain Your Best Employees

Once you have a team of dedicated and hardworking employees, the last thing you want is to lose them to a rival company. To avoid this, you need to show your staff you care about them and genuinely appreciate the work they do for you. You can do this by offering rewards and incentives when they meet goals and targets. Of course, this can mean money, but it’s often much better to tailor your rewards to the needs and wants of your employees.

  1. Ask For Customer Feedback

Customers like to know that you care about what they have to say, which is why it’s important that you speak to your customers regularly and ask them for feedback. You should also touch base with customer-facing staff, and see if they have any ideas for improvements you can make. After all, they’re the ones speaking to your customers all day. If you’re having trouble getting feedback from customers, you should offer incentives, like discounts, when they leave a review.

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  1. Learn From Your Complaints

Although listening to your customers is important, it’s a completely useless practice if you’re going to ignore what they’re actually saying. When you receive a complaint or constructive criticism, you need to learn from it and come up with ways to improve. If you don’t, customers will notice and assume you don’t actually care. To help you out, you should take samples of complaints into team meetings and allow employees to suggest ways to deal with your problems.

  1. Always Have A Solution

If you want to improve customer satisfaction, then you need to ensure that you always have a solution to their problems. If you don’t have the skills, knowledge, or power to help them yourself, then you need to direct them to someone who can. Of course, the world isn’t perfect, so there are going to be times when there’s nothing that you can do, but, instead of telling them this, you should turn the negative experience into a positive one, by offering a discount or freebie.

  1. Don’t Make Impossible Promises

Before you tell customers that you can do something, you need to have a good think and decide if what you’re promising is actually realistic. Companies who break their promises seem untrustworthy and dishonest, so it’s much better that you underpromise and overdeliver than the opposite. Of course, you should always try to do the very best for your customers, but you shouldn’t say that you can or will do something if you’re not actually sure if it’s possible.

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  1. Keep Your Customers Updated

Most people hate the thought of change, but it’s much worse when change happens suddenly and without warning. Because of this, you should do your best to keep your customers updated of any important changes occurring within your company, whether that’s switching up your products or services, increasing the prices, changing managers, or moving locations. You should already have social media accounts, so use them to talk to and inform your customers.

  1. Don’t Copy Your Competitors

As a business, you’re going to want to stand out from your competitors and show that you’re willing to work harder and go further than they ever could. This means you’ll need to do some research and find out exactly what they do to keep their customers coming back. However, doing this doesn’t mean that you should copy your competitors’ strategies. Even if customers don’t notice you doing it, they’ll get bored with the same tactics and, as a result, might not shop with you.

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  1. Set Customer Service Goals

Saying that you want to improve your customer service is a great first step, but, unless you know where you stand now and where you want to be in the future, you can’t start to make any changes. Even if you tried, you’d probably waste time and money. Because of this, you need to use metrics to judge your performance now and then come up with a few measurable and achievable customer service goals. Once you’ve done this, you can come up with plans to meet these targets.

  1. Go Beyond What’s Expected

Most customers, whether they like it or not, expect businesses to do what they’re paid to do and nothing more. This means that, when a company goes above and beyond the call of duty and does something without any sort of reward, it really stands out. Because of this, you should try to help your customers as much as you possibly can, even if you don’t get anything out of it directly. This will impress them, improve their satisfaction, and show that you’re a company to be trusted.

Without customers, your business wouldn’t be able to survive. Because of this, it’s vital that you do what you can to improve your customer service and customer satisfaction. This will take a fair bit of work, but, if you’re willing to put the time and effort in, then you should see some big rewards. Of course, every business is different, so some of the tips above might not work for you, but you’re not going to find that out unless you try.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

text me: +385/9193-55474
email: hrvojeh75@gmail.com

How to Monitor Your Manufacturing Costs

For every manufacturing business, making sure that all the resources are allocated the best way and waste is reduced is a good way of improving profitability. If you would like to make your business more effective, your processes more efficient, you will have to learn how to monitor the costs. Below you will find a few tips on how to get started and implement lean principles in your manufacturing business.

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Optimize Processes

The first thing you need to do is go through your processes and make sure that you are not wasting human resources or time when completing them. To optimize your business processes, you will have to get rid of anything that is unnecessary or takes too long to complete. For example, you can simplify complex processes, or improve the communication between different departments. Alternatively, you can get better at scheduling and allocating resources when they are needed.

Train Your People

Efficient people can save you money, so it makes financial sense to provide your staff with additional training. If there is a new technology to be introduced in your manufacturing business, you might ask one of your employees to evaluate the new process and help with the rollout, training the rest of the staff.

Implement Lean Principles

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Image via Naval Sea Systems Command

If you haven’t heard of Lean manufacturing principles yet, it might be time to update your knowledge. Originally developed by Toyota in the 1930s, Lean’s  main purpose is to reduce waste and cut costs. It enables companies to provide more value for their customers using fewer resources. It can help business owners remain competitive and profitable in challenging market situations. Lean can help you walk through all the processes and make them work seamlessly together.

Identify the Bottlenecks

Chances are that some individual business processes are working fine, while others are holding back productivity, These are generally referred to as bottlenecks. The process with the lowest throughput is the bottleneck, and to improve the overall performance of the manufacturing value chain, employees need to improve this area. You can make your operations smoother if you reduce wait times. For example, if the part manufacturing process is a bottleneck, the assembly line will waste time waiting for the parts.

Monitor Your Resource Consumption

It is also important that you know the exact amount of resources you are using to manufacture one item. There are several ways of calculating raw material and resource costs. If you are using water or oil, you can get a flowmeter installed, so you know exactly how much raw materials or other resources you are using and make adequate improvements that will reduce your cost, waste, and make your business greener at the same time.

If you would like to improve your manufacturing processes, you will need to check every stage and make improvements based on data. Eliminate time, resource, and quality related waste through implementing Lean principles. Make sure that you monitor the situations and train your employees to become more productive.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

text me: +385/9193-55474
email: hrvojeh75@gmail.com

Five Decisions that Can Make or Break Your Business

If you would like to ensure that you will succeed in your new venture, you will have to learn how to make the right decisions. The average person makes hundreds of decisions every day; from which shoe to wear to what to eat for dinner, or which route to take to work. However, some decisions are more important than others, especially when it comes to business. Below you will find five business decisions that will make or break your business.

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 1. Funding

Once you have a solid business idea, it is important that you find a way to fund your startup. If you take on a huge loan that you will have to pay back even if your business fails, you are likely to fail. It is always better to get angel investors or crowdfunding options, apply for non-refundable government funding, instead of risking your financial future. You can put your personal savings in your business, or take on an extra job to get your startup funds.

 2. Location

For every business with a physical presence, choosing a location is a challenge. You will have to find a market that is underserved by your competitors and affluent enough to pay for your products or services. Your business opportunity might work in one state but not another. This is why it is important to make an informed decision based on research and market analysis.

3. Market Entry Strategy

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Once you are ready to launch your business, you will have to choose the most effective, cheapest, and fastest market entry strategy. You might want to buy a franchise to get established quickly, but you will have limited flexibility. You can come up with a unique idea, but it will take a while until you can strengthen your brand and reach out to your target market.

4. Taking Risks

Sometimes you will have to take a risk when it comes to financial decisions. If you want to increase your profits and invest your business funds into online accounts, you need to be beware of risks and the potential benefits and returns to assess the situation rationally and make the right decision. Whether you are buying a new technology hoping that it will become popular or coming up with an innovative solutions, you will have to do your research first.

5. Innovation Investments

One of the main financial mistakes people make when running their own business is that they fail to reinvest their profits. Your dream car can wait until you are comfortable with the funding and have a strong and growing business. Instead of blowing your profits on luxury items, you should reinvest at least a proportion of it into your business in the first few years to ensure sustainable growth.

When starting and running a business, it is important that you learn how to make smart decisions. Some choices will have a lot of impact on your financial future and the growth of your venture, so make sure you do your research.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

text me: +385/9193-55474
email: hrvojeh75@gmail.com

Expand Your Business In 3 Easy Steps

Thinking back a few years ago, you were nothing more than a solo at home freelancer working for yourself and breaking free from the corporate fat cat world. Fast forward to today, and your business has gone from strength to strength. You are now hiring staff, you have multiple premises, and you are looking to grow your company. Expanding your business can be a nerve wracking time. It’s all too easy to rest on your laurels and become complacent. However, this leads to nothing more than a sedentary lifestyle, with your venture never realising its full potential. Instead, you should be investigating these three simple ways that you could explore to expand your business.

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Look For New Networks

Being part of a niche market has its perks. Perhaps you are the go to source for accounting for small enterprises and freelancers, audits for IT contractors, or ball bearings for Hong Kong based manufacturers. However, there is nothing wrong with trying to expand your network of potential clients. You could choose to look to the public sector and source government contracts, or perhaps you can seek to expand your customer base globally. If something is working in your home country, you could possibly bring something new to the market overseas. By expanding your network you are inevitably expanding your business.

Expand Your Product Range

If you are a producer of custom tee shirts for babies, why not expand your range to include toddlers, kids and teenagers. If you are a specialist antique typewriter dealer, why not consider honing your skills and sourcing calculators and cameras from the past. By making your product range cover a wider variety of items, you can hit different demographics. This may mean changing your business plan to include different strands for your business. As a more immature line, you may need to dedicate more time to it. But this should never be at the detriment of your current products that are already successful.

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Open More Physical Stores

If you work in retail or food, you may have a physical presence on the high street. Having a successful flagship store can make you determined to expand to new locations. Ensure that you don’t spread yourself too thin and that you expand slowly. All too often, businesses become victims of their own success, running before they can walk. Their cash flow dries up and they have no money left to ensure the quality of their goods or produce. Begin by opening up another single store. Echo the location in which you currently enjoy success to mimic your current demographic. With any luck, you can emulate your pattern of profit to facilitate your ability to expand even further.

Your business deserves to realise its full potential. Don’t become complacent and spend your professional life ticking along. You deserve more, but you need to be proactive with your business vision to make expansion happen. Follow this guide and expand your company to aid in its chances of becoming a market leader.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com

10 PAINLESS WAYS TO GIVE YOUR EMPLOYEES A CO2-FREE PLANET AND SAVE MONEY DOING IT

 

Carbon dioxide (CO2) accounts for up to 77% of polluting greenhouse gas emissions. 

With just a small amount of effort, you can help make a lasting impact on the environment and reverse the trends of climate change for future generations by cutting your personal CO2. And you’ll money at the same time!

There are lots of ways to reduce your home’s energy usage and CO2, from switching to LED light bulbs to installing energy efficient appliances. 

Now check out our list of energy saving tips and start sharing in the effort to safeguard the Earth now by reducing your carbon footprint with these simple ideas that will also save you money:

  1. Use Renewable Energy to Power Your Home
  • Over 30% of energy-related CO2 in the U.S. is associated with electricity
  • If you live in a de-regulated energy state where consumers have a choice of energy providers, select a 100% renewable energy plan 
    • For example, in the largest deregulated state, Texas, you can view low cost green energy plans (alongside fossil-sourced plans) from major providers at HomeEnergyClub.com. In 2020, the first green energy “price parity” (grid parity) site, GetGreenEnergy.com will offer 100% green energy plans from major providers in all deregulated states for less than fossil-sourced plans; this groundbreaking site is expected to initiate mass adoption of renewable energy plans. 
  • By converting to a green plan, a small or mid-size home that burns an average of about 1000 kWh of energy per month will cut 1,159 pounds of CO2, equivalent to the amount of CO2 absorbed annually by 3,600 young trees
  • If you live in a regulated energy state that provides home solar subsidies, the government incentive can offset the cost of solar panel equipment. 
    • In addition, there are federal home solar subsidies available
  1. Improve Attic Insulation
  • The Dept. of Energy estimates that a properly insulated attic can reduce your energy consumption and give you savings of 10 to 50% off your monthly bill
  •  Although commonly used fiberglass has a lower upfront cost and is easy to apply and replace, this type of insulation can hide air leaks and is less efficient
  • Green home builders recommend that blown-in cellulose insulation has a better R-Value Rating of 3.2-3.9, which gives it much better insulation quality
  1. Use Appliances Certified by Energy Star Program
    • Purchase Energy Star Products which are certified to be more energy efficient, reducing your energy consumption between 10 to 50% each year
      • Energy Star is a program of the U.S. Dept. of Energy
    • Water heaters are one of the most energy-consuming appliances. When you buy a new water heater, make sure it has an Energy Star rating with an R-Value of at least 24. It is also a better idea to use solar water heating system. Such a system does not depend on fossil fuels and takes energy from the sun to heat stored water. It, therefore, saves money, which is a major advantage of solar heating systems. Energy from the sun doesn’t cost anything, so no charge from electrical utilities is needed.
      • This can give you an annual energy savings of at least 16%

Get a Smart Thermostat 

    • A smart thermostat will learn your preferences and suggest settings to conserve energy, reducing your home heating and cooling energy use up to 15%. Make sure as well to have regular air conditioning repair and maintenance so that you can reduce energy usage. And if you are planning to replace your HVAC unit, you might want to hire professional hvac contractors, visit their website for more info.

Buy LED Lightbulbs

    • Although LEDs have a higher upfront cost, the cost is offset by having a much longer lifetime 
    • They will reduce your CO2 and save you money by using 1/3rd to 1/30th of the energy of incandescent light bulbs

 

Turn Off Lights 

  • Lighting usage accounts for around 11% of your home’s energy
  • Installing smart light switches on existing light fixtures can save energy by turning lights off when you are not using rooms, and have added benefits like dimming or remote usage

Unplug Your Devices 

  • Many electronics will consume energy when plugged in, even when not in use
  •  Stand-by energy can be lessened by using an advanced or smart power strip 
    • By simply unplugging or flicking the “off” button on a power strip you can save on your energy costs and help reduce your individual carbon footprint by 20% or more

Place Exterior Shading Around your House

  • Carefully positioned trees can reduce a household’s energy consumption for   heating and cooling by up to 25%
  • The Dept. of Energy estimates that the proper placement of three trees can save an average household between $100 and $250 in energy costs annually 
  • Shading of an air conditioner can increase its efficiency by as much as 10%
  • Improve energy efficiency by using cost effective “Low-e” window film on existing windows and enjoy an energy savings of around 15-20% 
  • Keeping your windows and doors sealed to cut down on drafts gives you an advantage of around 10 to 20% energy reduction and savings

  Wash in Cold 

  • You can eliminate 90% of a typical washing machine’s electricity usage by washing with cold water. Use an all in one washer dryer to further eliminate electricity usage.

 Get a Low-Flow Showerhead 

  • If every household in the U.S. installed one of these, the country could reduce annual water consumption by 250 billion gallons, conserving the energy required to process and bring clean water to your tap
    • These shower heads use two gallons per minute or less vs the 2.5-gallons per minute from a standard showerhead

Caution: Double Pane Windows are Painful for your Pocketbook

    • According to the Energy Star program, the average home can gain up to $465 in energy savings per year by replacing single pane with double pane windows
  • However, because the cost of replacing windows may run tens of thousands of dollars for many homes, it can often take decades to recoup your investment

Estimated Average Energy Conserved and Savings Per Year 

Energy Saving Tip Average Energy Reduction and Savings 
Energy Star Appliances 10 – 50%
Energy Star Water Heater 16%
Smart Thermostat 15% 
Attic Insulation 10 – 50%
LED Lightbulbs 30% 
Turn Off Lights 10%
Unplug Your Devices 20%
Exterior Shading Around Your House 25%
Wash in Cold 90%

Most people already know that lowering your energy usage is one of the most powerful ways to reduce your carbon footprint and save money, but many people don’t know exactly which items to focus on in order to get immediate, high-impact results. We hope you’ll found our information helpful in doing just that.

Whether you use advanced options like purchasing a smart home system to manage your usage, or low-tech solutions like keeping curtains closed during hot weather, you can take action right now to cut your usage and help safeguard the planet. 

Sources: https://www.energy.gov/energysaver/articles/how-much-can-you-really-save-energy-efficient-improvements

https://www.energystar.gov/

https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

Probation Periods: 5 Reasons They’re Essential For Businesses

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The idea of a probation period seems cruel to some people. In their eyes, it’s another way for The Man to exploit workers and fire them as and when they please. However, it’s far from an exploitative measure. Probation periods are essential when it comes to new hires and recruits and here are the reasons why.

What Is It?

Firstly, it’s important to understand what it is and how it works. In simple terms, it’s a period an employee has to see out before they are offered the job on a full-time basis. During their probation, they are not subject to the same rules and regulations as regular workers. For example, employers don’t need to give a notice period before they are dismissed. Also, some perks, such as the business’s pension scheme, might not be applicable.

On the other hand, an employee can decide to leave the company without any further notice if they feel if the partnership isn’t right.

Are There Legal Ramifications?

The short answer is yes. While employees don’t get a notice period during their probation, they are still protected by several laws. It’s illegal to subject any worker to harassment or dismissal on the grounds of race, religion or sexuality regardless of their contract. In some cases, there can be consequences regarding unfair dismissal too. If an employer can’t prove whether their actions were fair, the worker can take the matter to court. 

Why Is It Important?

There are many reasons a probation period makes sense to an employer, so let’s take a look at a couple of them.

Failure Rates

A stat that might shock a lot of people is the fact that 18% of employees fail their probation period. To put the percentage into perspective, that means almost one-fifth of new hires don’t pass the standards set by the employer. Without delving into the figure too much, this alone should put an element of doubt into your mind. If this amount of people fail to hit the mark, what does this mean for the company? How will it be impacted if a fifth of the people you hire are not up to your standards? The obvious answer is that it will start to lose money and that’s a nail in the coffin for lots of SMEs. Imagine if you had no recourse for action without a probationary period; you wouldn’t be in a strong position.

Imperfect Recruitment

As you can tell from the above, the recruitment process is by no means perfect. While an interview and an individual assessment might be decent indicators, they don’t get under the skin of the person. They are cosmetic indicators and leave a lot to be desired. A probation period is different as it allows you to see how the individual gets by in the office. And, if you want, you can still test them at the end of their probation with the help of end point assessment organisations. That way, you’ll understand their academic achievements as well as their personality which will enable you to make a better decision. Essentially, it’s a recruitment tactic that lets you decide whether you’ve made a mistake because hindsight is always 20/20.

Office Atmosphere

Plenty of things make a business great, but the ability to provide a positive work environment is always high up on the list. When employees feel empowered and trusted, they go the extra mile because they love their job and the feeling of doing something right. However, the opposite occurs when there is a toxic feel to the workplace. Standards drop, productivity decreases, and teamwork takes a hit due to the mistrust and office politics. Certain things ruin an atmosphere but people are usually the number one suspects. So, if someone comes in with a bad attitude or one that isn’t in line with the company, it’s best to get rid of them before they cause any damage. Remember that the longer they are there, the deeper the rifts will become as they become irreparable after a certain point. Without a period of probation, it’s almost impossible to fire someone even if they are disruptive.

Probation

This image is from PXhere

Employee Investment

A probation period is a perfect opportunity for the employee and employer to get on the same page. By telling them what you expect during their initial three months, you hand them the tools to be successful. The candidates that are switched on will ensure they learn new skills and adapt as best as possible to secure a long-term contract. As a result, the final product will be a person who is ready to slot seamlessly into the team after they pass out. And, if they don’t, you know they are not a suitable hire. Of course, there is a grey area too as you can address the issues with them before the period ends to help them grow. In the long-term, you will find that an atmosphere of improvement develops within the workplace and that can only be a good thing.

Trend Setting

As a rule, probation periods encourage businesses to nurture young talent. After all, it’s not as if they are stuck with them if the trial doesn’t go to plan. Those that succeed get to gain the experience they need while the company gets the latest info on trends. Also, there’s the boost to creativity that comes with a new, fresh demographic in the office.

What’s The Ideal Length?

Don’t assume that bigger is better in this scenario. Employees hate the uncertainty that comes with long probation periods as it leaves them in an unpredictable spot. Therefore, it’s best to go for the middle option so that you can spot their strengths and weaknesses without them getting disillusioned. Three months or 90-days should be enough to get a sense of how they will fit into the office without causing them stress.

How do you feel about probation periods? Do they think they are essential?

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com

Major Challenges Of Solopreneurship (And How To Overcome Them)

This article isn’t for the big business owner; the man or woman with an empire to command.

And this article isn’t for the small business owner with a growing team at their disposal. 

This article is for the solopreneur; the freelancer, the blogger, the individual who right now is probably slaving away on their lonesome in their bedroom or home office space with nothing but a computer and a pet cat to keep them company.

This is for the solo business owner, and assuming you clicked on this article because you’re a solopreneur, this article is for you! Should this be the case, then you probably don’t need us to remind you of the challenges you face each day. But remind you we shall, not because we want to rub them in your face, but because we want to give you a few tips on how to overcome them.

Challenge #1: Handling multiple job roles

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Okay, so you might be a freelance writer, a professional blogger, an eCommerce seller, or any other job role that befits a solo business owner. But beyond your job, you probably have to handle other job roles too. There will be times when you have to take on the role of a marketer to promote your business. On a day-to-day level, you will need to handle the role of receptionist and administrator. When it comes to your finances, you might have to take on the job description of an accountant. And there are probably other job roles you can ascribe to your personal situation. The upshot of all this? A dent in your productivity because you are taking on too many tasks, and if you’re not careful, you might also experience solopreneur burnout because of overtime and exhaustion.

Overcome the challenge by…

Outsourcing to another business. Despite the expense incurred with outsourcing, you might eventually make a profit because a) you will have more time to focus on the money-making parts of your business, and b) you might improve your business because an outsourced firm will have the skills needed to ensure quality work is done. So, for your receptionist service, you might use the services of Virtual HQ (see the previous link). You might hire a professional marketing team to promote your business. And you could hire an accountant to help you stay on top of your finances, and to take on those pesky tasks that you probably hate, such as your taxes.

Downloading an app or software program. Technology is great, especially when it comes to helping you run your business. There are all kinds of apps and programs available, many of which come with free trials and low-cost options to help you save time and money. Take a look at these top tools and download anything that will give you the capacity to work faster and better during your working day.

Challenge #2: Feelings of loneliness

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There are benefits to working alone – you don’t have to put up with annoying work colleagues, you have no one to answer to but yourself – but there are also downsides, as being isolated, you might miss the office banter that comes when working with others. You might regret not having the opportunity to improve your social life. And while you could vent your feelings to your cat, you might miss the moral support that another person could afford you. 

Overcome the challenge by…

Setting aside time for a social life. While you might not have a lot of time for socializing in the day, you should still make time for some social interaction after work has been completed. So, you might want to arrange a time to spend with your friends and family, for example, and you could join a hobby group if you want to extend your social circle. It’s about being proactive, so if you value the company of others, plan for it to happen.

Being a social business owner. Do you know other solopreneurs? If so, meet them for lunch once in a while, or arrange business-type meetings where you can share ideas with each other for improving your respective businesses. And rather than working from home, you could share a rented office space with another solopreneur to improve both your professional and personal lives. Or you could take your computer and sit in your local library or café so you can be around other people, whether you talk to them or not. And when there are business network meetings happening in your area, you might want to get along to them to a) give you the opportunity to get out of the house for a while, and b) make contact with people who could benefit you on a social and professional level. You see, there are options available to you, so you don’t have to feel isolated as a solopreneur.

Finally

The life of a solopreneur isn’t easy, but it could be easier. We have presented two challenges here, and as you have seen, they can be overcome. So, consider the challenges you face, and don’t let them overwhelm you. Commit to research so you can overcome them, and then share your tips with us for the benefit of any solo business owners reading this article today.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com

Is It Time to Take on Staff?

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When you run a small business, you often find yourself starting out alone. You’ll probably work from home and set your business up relatively independently. But as you begin to establish yourself and experience success and recognition, you will generally begin to expand. At some point or another, you’re going to have to accept help from others in order to help your business flourish. If you try to continue doing everything alone, your business will suffer. You can’t be a specialist in everything and you will eventually find yourself being caught up in administrative tasks that will keep the company afloat, rather than being able to focus on more progressive areas of operation that will help to bring your business forward. You may also burn yourself out, which isn’t good for anyone. But where do you start when it comes to becoming a boss and bringing in staff to work for your company? Well, it’s a good idea to familiarise yourself with the different types of workers out there. Here are just a few.

 

Employees

An employee will take on a relatively permanent position within your company. You will provide them with contracted hours, contracted pay, and they will work for you in return. It’s important that you take the recruitment process seriously – make sure the individuals you employee are both competent and of good character. You will need to outline their job role and make sure that they are fit to fulfill it! Remember you will also have to provide other employee benefits, such as annual leave, sick leave and parental leave, as well as taking care of their health and safety in the workplace at all times. If you don’t have time to recruit yourself, you can always outsource this process to a recruitment agency.

 

Contractors

If you only have short term work and don’t think you’ll be able to provide an employee with stable work for an extended period of time, you might want to engage with contractors. These are individuals who supply the materials and labour to complete a job on a temporary basis. They will act like an employee, but they will only work with you for a set period of time – then they will move on to work with someone else. If you want the benefit of contractors with lower levels of responsibility, you can engage with a company that deals with a Construction Industry Scheme. They will supply you with contractors and pay contractor CIS taxes on your behalf.

 

Freelancers

If you literally have a one-off job that needs to be completed – for example, you need a website created, an article written, or another single project – you can bring in a freelancer. This individual will complete the set task for a set fee and then move on to work with others. This is extremely convenient for both individuals involved.

 

Hopefully, highlighting the different types of workers available has helped you to determine which you might want to engage with and which will prove most beneficial for your business’ progression!

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com

5 Ways To Boost Your Brand Awareness

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Image via Pexels

 

Whichever industry your business operates in, it’s a crowded marketplace these days. The Internet has made trade and commerce truly global, and customers are spoilt for choice and bombarded by an almost endless stream of marketing messages. So, what business development solutions should you choose to boost your brand awareness? How do you make sure your branding has an impact, and that you’re speaking to the right potential customers at the right time?

 

Consider A Referral Scheme

The best customer you can get? One who recommends you to others. Not only have you gained their business, but someone with a referral from a happy customer is more likely to come to you – so you get a double hit. So it makes sense to do all you can to encourage and incentivise recommendations. Decide what you can offer and think of it as part of your marketing budget. If customers spread the word, what perk can you give them? It could be extra service for free, or money off their next bill. Word of mouth marketing and social media recommendations are hugely powerful and can build your business without you spending on costly advertising that may not target the right people.

 

Brand Everything Up

Starbucks, McDonald’s… Whenever you think of a titan of business, the one thing they all have in common, no matter what they do, is consistent branding. This is an area where many small businesses fail. Think about the customer touch points and how you can increase your branding – whether it’s on invoices, putting your staff in branded polo shirts, paying attention to the packaging that your products come in or look into something like Sydney ute hire to brand up the vehicles your business uses – vehicle wraps are relatively cheap and easy to remove when you need to without damaging paintwork.

 

Form Some Partnerships

No business is an island, and collaborating with a non-competitive partner is a great way to get your brand in front of a whole new audience – and ones that are already warmed up! Build your brand by finding a non-competing company and find ways to combine your offers. From holding events together to offering discounts, there are many avenues to explore that will bring you new business.

 

Hold Some Social Competitions

Social media is an almost limitless platform to find new customers –  you just have to make your message clear. Running a social media contest is a great way to attract new followers. Set a task that isn’t too onerous to get people to join in – like submitting a photo or a video, inviting friends or sharing what they like about what you do, to get new followers on board and spread the word with their friends and family. It’s a great way to build your brand awareness.

 

Get Networking

Reaching out to other businesses and new customers should be a constant process, so build local networking events in as a part of your routine. You can also get networking online by joining LinkedIn groups and publishing white papers to get your name out there as a thought leader and get your brand associated with cutting edge developments – whether you are are B2B operator or a B2C, it can work well for you.

 

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com

Workplace Wisdom: The Five S’s You Cannot Afford To Ignore

Every business owner can appreciate the need to build winning working environments. From office spaces and shop floors to warehouses and construction sites, making mistakes is not an option. After all, the condition of the workspaces will influence everything from productivity to profit.

 

With so many aspects to consider, taking control by making things seem a little simpler is essential. With the help of the following five S words, you should be just fine.

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Staffing

The quality of the equipment and facilities will count for very little if you don’t have the right team behind you. Therefore, the process of staffing and recruitment should be considered a priority. Whether you do this through your internal HR department or outsourcing to recruitment agents is up to you. Either way, assembling the strongest team will form the foundations needed for success. Without them, everything else you do will be rendered redundant.

 

Stimulation

While hiring the right people will have a telling impact, you must not overlook the need to maintain morale. Stimulating employees with the best incentives can transform the entire venture. Employee perks can be used to great effect while showing a route to progression is vital. Encouraging employees to take greater responsibility and engage with their work in a strong manner is key. Otherwise, productivity and customer experiences will begin to suffer serious consequences.

 

Safety

 

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You have a human responsibility, as well as a business one, to promote a safe workplace. This is especially crucial when dealing with dangerous construction sites or manufacturing areas. Experts at Ranger Lifting and Rigging can provide winning support in relation to equipment. Meanwhile, you should provide goggles and safety clothing in the appropriate areas. Safety should extend to the office and shop floors. From slippery surfaces to electrical faults, vigilance is vital at all times.

 

Security

Protecting the employees and visitors is one thing, but you must also protect the assets. Outside dangers are at a greater level than ever before, which is why security needs to be taken seriously. CCTV and alarm systems can be used to protect the physical items within the workspace. Similarly, digital security should be introduced too. It’s also important to utilise contracts and agreements to protect intellectual property. Otherwise, departing employees may cause major damage to the firm.

 

Software

Technology plays a central role in every business environment. While you cannot afford to replace equipment and hardware as often as you may like, staying ahead of the game regarding software is vital. Experts at POS Solutions can help with mobile point of sale software to take shop floors to the next level. Meanwhile, the modern landscape is packed with products for automation. Removing human errors and increasing the speed of production can only have a positive impact on proceedings.

 

Failure to build a winning working environment will come back to haunt you. After all, the negativity will filter down throughout all elements of the company. Take control of the situation in style today or your hopes of success will remain limited.

If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat
hrvojeh75@gmail.com