Business owners: We’re not in Kansas now, Toto…

Tuning into the local and global news at the moment feels like a long, long pulling tide going out before a huge tsunami hits. News from Europe seems dire and from America, a bit dodgy.  There is an eerie, unnerving stillness in business here in Australia, like the calm before the storm.

These few nuggets have stood me in good stead in the past when confronted with uncertainty:

1. Use what you have

Being resourceful for many in our Western world of plenty is a bit of a dying art. Using what you have seems obvious but not if you are in the habit of “getting more stuff”. This can apply to all aspects of your business: equipment, tools, finance, employee skills and knowledge, your own skills and knowledge, access and connections to people and other opportunities.

Better effectiveness and efficiency is what improved productivity is all about – working smarter, not harder. See this time as a great opportunity to try out what you and your employees can really do, given the right situation.

Create those right situations by increasing the level of trust and motivation in your business. This can be achieved by ensuring you have the right person in the right job, delegating more effectively and giving real autonomy to employees, recognizing work that is well done, ensuring that employees have enough skills, tools and support to do the job well.

Giving respect and care to your clients and your employees and expecting it in return will warm the climate in your workplace; giving your word and keeping it; dealing with people and issues with integrity are all key to unlocking additional value from your business.

And the great thing about respect, care, autonomy, integrity and commitment is they’re not  likely to cost extra $ – just a bit more effort and thought.

2. Think outside the box

This cliché has at it’s heart permission to be more creative and to challenge assumptions, and is a worthy partner to making more of what you have. As an employer, what assumptions do you have that are not working for your business?

• Do you assume that only you can do certain jobs or tasks?
• Do you assume that all employees must work, be available and be paid for 36-40 hours a week?
• Do you assume that only you know the answers to issues affecting your business? Who else might know about these and be willing to contribute?

3. Ask for help and support OR give some to someone else

And then there’s times when I can become completely paralysed with uncertainty and complexity. Too much or not enough information, too many or too few options or not enough energy can be very debilitating, inhibiting ability to act and deal with the situation.

The old adage a problem shared is a problem halved certainly has merit and I would contend that sometimes the problem is solved. I have run countless group training and work activities and know there’s nothing more powerful than handing a real problem to people and supporting them to come up with a great solution.

Think about trusted colleagues or friends that you can discuss business issue with confidentially. And think about how you might be able to help them – sharing what you have, your suggestions or even just listening. Or do you trust your employees enough to share with them? Try it and see – you might be pleasantly surprised at the results.

What works for you in times of uncertainty?

Growing Business Through People: Seven Tips for Small Business Owners

It’s not news to you that small business forms part of the backbone of the Australian economy, and business owners and their employees form the backbone of those enterprises. But what help and guidance is there for those small business owners to consciously manage and lead their way to a better future?

Here are some things to think about, some tips to help you, the small business owner, get more from the people in your business by giving the right things:

1. People are integral to and integrated with the business – having employees is about having additional capacity in your business in every way possible, not just an extra pair of hands. It should bring additional skills, knowledge abilities, energy and ideas, and ideally a synergy between all the people in the business that gives 2+2=5 ie. what you get out should exceed what you put in. This means that every part of planning in your business should be considering your staff as a means of achieving that purpose. Ask them for their ideas, be open to their suggestions and ask them to take responsibility for trying new approaches.

2. Planning and knowing what you want –“Everything is created twice: once in your mind and then in reality”. So said Stephen Covey, author of 7 Habits of Highly Effective People. Clear thinking that gives a purpose, a plan for getting there, and then communicating that plan, are all critical. This includes designing jobs that will get your business further forward and also give staff some job satisfaction.

3. Good management – don’t employ people if you don’t expect to manage them. People need purpose, guidance and support. They need the right tools for the job, the right skills for the job and encouragement to keep going.

4. Have realistic expectations – Not a single one of your employees is going to work as hard or as much as you.  If they do, expect them to leave to set up their own business or make you an offer for yours!

5. Set clear ground rules – everyone needs boundaries Be clear about what is acceptable working behaviour: how we do things around here, and what is not acceptable, and;

• Communicate them often, preferably through actions;
• Enforce them – don’t let employees away with unacceptable behaviour;
• Change them if they’re not working to get the outcome you want.

6. Your employees are not there to be your friends – they are there to do a job. Nothing can replace respect, courtesy and good manners in a good working relationship but don’t confuse this with friendship. This doesn’t mean that a friendship shouldn’t develop but be very careful about how you go about this, particularly in a very small business.

7. You’re the leader – give your employees a good example to follow. Everyone will be watching what you do, and will take their cue from that, no matter what you say.

BANKS: The Emperors with No Clothes? PART 2

My experience with getting a home loan a number of years ago (before the GFC) was bizarre. My husband and I had 85% of the total price (including stamp duty) of the property and could not get a home loan with one of the regular banks. Why not? Neither of us had permanent, full-time work. The fact that we both had long-standing contract work that was extremely well-paid did not seem to count.

So, how do lenders conduct their risk assessment of potential customers? My brief but wide-ranging research on current practices in Australia yielded the following key criteria:

• Employment status – those who have a “steady” employment record are a better risk than self-employed or those who don’t;
• Income– undefined
• Overall credit history – savings record including deposit, money management and repayments record over the past twelve months i.e. a positive credit history

Furthermore, on the issue of employment, the self-employed are singled out as particularly high risk “Typically, traditional lenders see the self-employed as a credit risk and are hesitant to approve them for a loan. This is a consequence of the banks risk assessment being primarily based upon income serviceability…Despite this, many people who are self-employed are very solvent and some are among the wealthiest people in the country. That said, most money lenders still prefer you to be on a stable salary income than to be listed as a sole trader or partnership structure.”*

In addition, the latest statistics (ABS November 2010) indicate that Australia has a total working population of 11.417 million of which 8.033 million (70%) are full-time workers and part-time employment is 3.384 million (30%).** And of these numbers, it is estimated that 18.5%*** are self-employed, approximately 2.112 million people, which is about 10% of the current total population.

In these times of change, fluctuation and uncertainty, the notion of permanent, full-time work as the key to approving home loans seems to me to be asking for trouble. It’s also quite ironic that banks are looking for stability- obviously their own work practices didn’t prevent the banking system falling into crisis, creating their own set of additional instabilities to world economies. It seems that they are looking from others what they are unable or unwilling to create for themselves.  They are not really setting a great example of leadership. So why do they have so much power? And what are some solutions for employers and employees so we can all get what we reasonably want?

Why do banks have so much power?

* Source: www.debtrelief.com.au

** Australian Bureau of Statistics November 2010 issue of Labour Force Australia

*** Independent Contractors of Australia Update May 2010