Author: TechOne
How should I deal with a troublesome member of staff?
How should I deal with a troublesome member of staff?
Dec 4, 2020 | 2 min read
Employees who are misbehaving need sorted out swiftly, but fairly and within the law. The legal stuff is where many businesses fall down, usually for failing to follow the necessary contractual procedures. Employees that cause trouble are often the ones who read their contract of employment when they get up in the morning and prior to turning in for the night.
Usually these people are bullies and you or other workers are the victims. The only way to stamp out bad behaviour is to confront it firmly and make clear what is and is not acceptable behaviour. Make sure that the rest of your workforce know that you are addressing the problem but without telling them the specifics, which could breach confidentiality rights of the person being disciplined.
The problem will not disappear by burying your head in the sand, however tempting it may be as a path of least resistance when if your business is busy and you don’t fancy the distraction of a showdown. Leave the problem alone and it will fester until it reaches a new level and your workforce or business starts to unravel before your eyes.
Make sure you have got your facts correct and plan how your disciplinary meeting is to be managed, taking professional guidance first if necessary. The effects of a shock tactic on your workplace bully will shake them to the core, and either it will be the beginning of the end of their tenure with you or things will improve rapidly.
Sometimes the outcome is not as you may expect or the next move will be unclear or it will take time to play itself out but be patient and stick to your position.
It usually pays to have sought proper professional advice not just Googling it!
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Are you plagued with the wrong type of customer?
Are you plagued with the wrong type of customer?
Nov 25, 2020 | 1 min read
Many successful businesses have their growth crimped because they have too many of the wrong type of customers or clients. In extreme circumstances it can threaten the viability of the enterprise.
So, how do you identify these types?
The wrong type of client is typically not paying you a great deal for goods or services during the year but is constantly demanding and takes up a disproportionate amount of your time, which could be spent more fruitfully.
Collectively, they meet the 80:20 rule – 20% per cent of your customers are taking up 80% of your time.
If you recognise this type of customer or client it is imperative to get better quality clients on board or subtly educate them that things are
changing for their benefit and it is going to cost them more or they will have to submit their queries in another format, which is likely to put a stop to it. Instead of them being able to ring you on a whim tell them they have to submit a support ticket online or an email.
Pivoting to more profitable customers who are likely to have larger wallets and buy more often from you cannot be done overnight but pretending the problem will disappear is not a solution, because sure as day follows night, it will absolutely not. It may take time and if it involves too many clients it’s obviously not something you can undertake overnight as you still need to eat in the interim until the “right” sort of customers become established.
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Should I Rent or Buy Business Premises?
Should I Rent or Buy Business Premises?
Nov 23, 2020 | 2 min read
Businesses typically rent their premises although there is no reason why you cannot own your own shop, office or warehouse.
The rent paid is an allowable expense for tax purposes, which is an attraction, whereby if you have purchased a property with a bank loan the capital aspect of the repayments are not tax deductible, which can take the shine off the pleasure of being in charge of your own destiny.
One of the main reasons for renting is that it gives you the flexibility to move, subject of course to your lease terms and conditions, and avoids the need to raise capital or tie up funds in bricks and mortar that could be otherwise used in your business.
The critical aspect of renting, which is widely under-appreciated, is the importance of the lease that determines the relationship between you and your landlord. Often the problems arise because the landlord has not drafted it properly, probably trying it themselves from an online document instead of paying a solicitor. That does not mean you cannot avail yourself of the services of a solicitor and it is highly recommended, as property law and leases can be fiendishly complex, leaving you with potentially crippling obligations if you are not careful.
Ultimately to decision to buy or rent will rest upon personal feeling but in the case of an industrial premises or a warehouse these are typically on industrial estates that are entirely let from a property investment company of pension fund and it can be hard to find units that are for sale.
The disadvantage of buying is that if an area loses its shine, such as a local high street, you could face the double whammy of facing falling footfall and owning a bad asset, which leaves you trapped and possibly doomed, especially if passing trade is important. If you were renting and your lease had a break clause approaching you would have the comfort of being able to look elsewhere which will give you greater bargaining power over the landlord as the break clause date looms, possibly tempting you to stay and ride out the storm.
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Friends and family have offered to invest in my business – should I accept?
Friends and family have offered to invest in my business – should I accept?
Nov 20, 2020 | 2 min read
“Friends and family” – the often-heard phrase sounds innocuous and usually crops up on phone tariffs to enable free calls to selected numbers. However in the harsh world of business the practicalities of “friends and family” investing in your idea is in reality something of a hornet’s nest.
Many employers have a policy of not employing “friends and family” although often employees have become the former. On rare occasions in times of great need those wary employers might offer them fixed term or temporary work on the strictly understanding that it is purely short term to help them.
So why should you be so concerned about these seemingly nice people to the extent that you might not offer them a permanent job and certainly avoid taking their money to invest in my business?
The starting point to remember is that once you sell somebody a stake in your business you have made a commitment that is legally binding and more often than not removing them from the equation is either impossible or ruinously expensive, often precipitating the end of your relationship or for family members the creation of an enmity that can last for generations.
For all the business success stories that started with an investment from a sibling or best friend there are myriad failures littering the wayside, so why is this?
The starting point is to understand that when a business becomes a rip-roaring success and there is plenty of money about for everybody to share, there is nothing to worry about and it can be a fairytale ending. However, most small businesses only ever make enough for one person to live comfortably and when you are taking out a decent wage and not paying anything to your investors, eyebrows start to rise.
Imagine you have sold half your business to your best friend because you were desperate to raise finance and it makes a profit but doesn’t reach the potential that you both believed it would. If you are struggling with what you take home as your fair wage for full time work then your friend is unlikely to complain too much by his lack of return, but what if you feel you should be earning a higher wage to reflect the long hours and stress and award yourself more money ? Conversely, your friend may block your wage rise and you will be feeling very aggrieved.
New car on the drive? Large extension? Dream holiday?
Who is really paying for this in the eyes of your investor?
Consider another scenario. The business is successful and your sibling wishes to sell their stake which may entail selling the whole business, but you as the worker are unwilling to do so. The permutations of stories and scenarios is endless but I think the lesson is clear.
Only use friends and family as a source of funding if absolutely necessary and even then make sure everything is clearly documented by a commercial lawyer. It may cost more but it could mean the difference between maintaining a relationship and destroying it unwittingly and needlessly.
Every person has their price – but what price do you put on a relationship?
