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The 3 most annoying things about being in business...and what to do about them
We regularly hear how enjoyable business would be without these three things!
Here's what they are and what we think you can do to reduce your frustration...
1. The Government
Unfortunately the number one thing we hear about is how hard the government makes it for NZ businesses to operate. We tend to agree, so here are some things that can help.
Solution 1 - Get on with it
Probably not what you expected, but there you go.
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Sometimes being in business is plain annoying, but there is always something you can do about it.
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For example, GST is a fact of life and so is the complex employment legislation. Get a computer package that makes GST reporting easy. Products like QuickBooks and MYOB have a range of other great features to help increase your profitability that you may even thank the Government for giving you a nudge. The same goes for a software package that handles payroll, or maybe outsource it - there are many reputable online providers.
Join an organisation like EMA – Northern who not only lobby the government, but also provide excellent advice regarding your legal obligations.
Use professional advice or services where necessary. It may seem expensive, but probably won’t cost as much as the personal grievance or OSH prosecution if something does go wrong.
Solution 2 - Make the most of what they do offer…
Believe it or not the government does do a lot to help business too. For example, check out the excellent NZTE Capability Development Scheme. NZ Trade & Enterprise also provide grants for businesses seeking to export. The government also has many information sites.
2. Staff
Coming in a close second is staff. Well what can we say? Who chose them? Who manages them?
Obviously, the most important thing is to get the right person first. Be thorough in your screening. Where possible get them to demonstrate their skills. Undertake full pre-employment screening (questions, references, driving record (if relevant), credit and criminal records). Look for a value and attitude fit first, as these cannot be changed. Given a reasonable level of intelligence, people can learn the rest.
Once they start – give them some help! Induction, training, procedures, reference material, a buddy and regular, specific feedback all help. So does allowing them to experience the consequences of their actions. If they make a mistake, let them explain it to the Customer and fix it.
And if it’s not working, then follow your performance management system to the letter, sometimes things improve, sometimes they don’t. Either way it’s better than letting things fester.
3. Bad payers
And lastly – the bad payer! If you can – don’t do business with them. Where the dollars are large, do a credit check. If you feel you must go ahead, then get a deposit, or payment in advance. No order is worth it if they never pay.
Have the strictest payment terms you can get away with, and enforce them. People will soon learn to up you on their list of who to pay. Make sure your terms and conditions are clear regarding payment terms (yes you do need terms & conditions). Invest in things like EFTPOS if it would mean getting the payment in easier.
Always, always monitor and manage outstanding debtors. Remember the job’s not finished 'til the money’s in the bank – your bank that is!
By following some of the above you can alleviate some of the pain associated with being in business, and focus on the many benefits.
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