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5 Rules Of Money Management For Small Businesses

Individuals must know how to manage their money to become rich so you also need to know how to manage your business money to be successful.

Just like an individual, your business also needs to pay for the cost to survive. How to spend money effectively without getting caught in debt or going into debt?

Individuals must know how to manage their money to become rich so you also need to know how to manage your business money to be successful. With businesses, you will have to work with employees, suppliers, tax authorities. How to work with them, you always take advantage of the money you spend.

Here are 5 rules to help you manage money for your small business:

1. Minimise The Cost Of Life

If you are managing your own small business for the first time, the above principle is extremely important in the first few years. Calculate how much money you need to cover your monthly living and withdraw the right amount of income from your business. With the remaining profit, invest back into the company. Let that money serve growth.

It will be exciting to make money from a business, but many new business owners use it on expensive vacations or homes. Resist those impulses. Wait until the business has gone through a few years, then you can start taking those profits to enjoy yourself.

2. Do Not Hire Employee Early

In a fledgling business, the biggest expense, by far, is employee salaries. As the business gets busier and you seem to be overloaded, it’s time to hire a new employee right away. However, make sure it is essential.

Never hire staff until you need them. Always ask your current staff to work hard to make sure they work to the best of their ability.

3. Strategic Use “Jit”

JIT is an abbreviation of “Just In Time”. This is a strategy to reduce the cost of loans and inventory in all business forms.

For example, if you estimate you need to cover your expenses for next year, there’s no need to borrow the entire amount at once. Because if you do that, you’ll have to pay interest on the entire amount when you don’t use it up until the end of the year.

Instead, you will borrow that estimated amount in the first 2 months of the following year (except for the month of the new year holiday). Then borrowed it again for the next 3 months. Following this rule, you will reduce the total amount of interest payable to the bank. So that money will increase and you save a large amount of money after a long time.

4. Agreement With Supplier

When dealing with external contractors or suppliers, such as delivery services, food delivery, electricity, security services, do not hesitate to negotiate contract terms. Choosing a provider that allows you to pay after 30 days of receipt of service bills instead of paying immediately.

That grace period allows you to better manage your money and organise your bills in order of priority. Many peers always allow this but need to be willing to ask when they want to pay immediately.

Year: Do Not Pay Money To Wage Payments

State tax law requires business owners to deduct an amount in addition to employee salaries such as Social Insurance, Health Insurance, Union Funds and Unemployment Insurance for each payment period. Businesses will have a certain extension period before they have to submit this fund report. As a business owner, it’s important to keep those funds separate from other funds. Don’t use this money to invest or cover daily expenses.

Instead, put the money in a separate account that you cannot touch. This will help you avoid spending money that you don’t have to. It’s a good habit to keep your business free from violations at the end of every month. State fines will not tolerate such cases. Nowadays there are a number of maintenance planning training and maintenance planning courses were available online from that you can get more ideas for maintaining your business easily.

How to write a press release for your small business

The press release has been a mainstay of public relations since its inception decades ago.

And while it may seem a bit old-school to some, there’s a reason press releases have stood the test of time — they’re effective and produce results.

From generating media coverage to positioning yourself as a thought leaders in your industry, and ultimately help your business succeed and grow — there are a number of reasons why business owners need to learn how to write and distribute a press release.

Today, I’ll focus on part one of that process: how to write a press release.

If you’re trying to decide whether or not something warrants a press release, all you need to do is answer one question: Is it newsworthy?

For something to be newsworthy, it must be something that audiences outside of your internal organisation will care about; something that has significance to a reporter and their readers, viewers, or listeners, or to other external stakeholders (potential investors, etc).

Here are a few factors to consider when determining if something is newsworthy:

Impact: Who will this information affect? The broader and larger the impact, the more people will be interested.

Timeliness: Why does this information matter now? Does your news relate to or tie back to a significant “moment in time” or event of some sort?

Proximity: As a small business, this one should be easy to understand — proximity matters. For many small businesses or nonprofits, your news will likely matter more to local publications than to national ones, or publications that focus on other regions.

Name recognition: Clout that comes with big recognisable names (well know people, organisations, companies, etc) will likely increase the interest in your news. If you’re partnering with, or involved with a big name that might generate this type of attention, consider issuing a press release.

Now that you know when to write a press release, let’s take a look at how you actually do it.

Here, I’ve outline the four major components of an effective press release:

1. The headline

The headline should be attention grabbing and encourage the reader to want to know more, while also being explanatory. This isn’t the time to use vague language.

Formatting tip: Make sure the headline is written in bold and the subhead is italicised.

2. The body

The body of your press release should stay as concise as possible, while making sure to get all of the important information across in an engaging manner. Reporters that read your release aren’t likely going to have the time to read page after page trying to understand the news.

There aren’t really a prescriptive number of pages or word count. It can vary depending upon the information the release is covering. The key is to keep it concise and not overly verbose, but at the same time make sure that you have all the relevant info included. So, the length can really vary depending upon the announcement.

Here are other things to keep in mind when pulling together the body of any press release:

The dateline: Begin with a dateline of the city in which the press release originated and the date it was issued. This is especially important for small businesses that are distributing their press release to the local media.

Keep it factual: Your press release should focus on answering the five W’s: who, what, when, where, and why.

Factual doesn’t have to mean dry: While your press release should be as concise as possible and stick to the facts, it doesn’t have to be as dry as say, a research paper. Keep the language engaging.

Avoid lazy mistakes: Typos and poor grammar in press releases make your business look unprofessional, and will likely turn off reporters.

The quote: Most press release include a quote by the most relevant spokesperson for the topic of the release. The quote provides space to add some color commentary (going a bit beyond the factual basis of the rest of the release) and can also be pulled directly from the release by journalists to use in articles.

3. The boilerplate

This is the about us section where you provide background on your organisation. It should be included following the body of every press release. The language used here can be the same in every release. Don’t forget to link to your company homepage to drive readers back and provide more information.

4. Contact Info

A reporter reads your press release and is interested in getting more information — great! But how will they know where to go?

Be sure to include relevant contact info for any inquiries that may arise from your press release.

This information should be listed at the very end of the release.

It doesn’t begin and end with creating the press release.

Keep in mind that while a well crafted press release is the foundation of a great public relations campaign, your efforts should not begin and end with the creation of the release.

Press releases work when you get their information in the right hands (reporters, other stakeholders) that will further extend the reach of your news, ultimately resulting in measurable business success.

Stay tuned for part two, where I’ll explain how to distribute and get results from your press release.

6 key ingredients of effective law firm press releases

As the media continues to evolve in this electronic age, newsrooms are shrinking or disappearing, the role of journalists is changing, and opportunities for publishing news online are proliferating. The type of information getting published – especially online – also is changing. A decade ago, the chances of getting a law firm press release published verbatim were almost nil. Today, with news and aggregate websites in abundance, wire services publishing on the Web, and more non-journalism-trained editors deciding what gets published, the tables have turned for the press release as a PR tool.

A press release is no longer a vehicle just for informing journalists (who, in the past, mostly cherry-picked the facts they needed from a press release to incorporate into their own stories). In many cases today, a press release is the complete story that your audience will see. That makes the stakes higher than ever before. With that in mind, consider these tips on key ingredients and useful elements to include when writing a law firm press release.

  • Include an attention-grabbing headline.
  • Include the most “newsworthy” information in the first two to three paragraphs – your audience may not read beyond that.
  • Emphasise what’s different about you, your firm or whatever news you’re communicating. Reporters love “firsts” and precedent-setting developments (if they are legit).
  • Insert web links to your law firm’s site and blogs, attorney biographies, and related external web pages. (Even if publishers use “nofollow” links that don’t pass link juice, you will still point readers to your firm’s website where they can further engage with your content.)
  • If there’s a related video, link to that also or embed it into the press release. YouTube and Vimeo players make it easy to copy embed codes.
  • For releases about attorneys, add links to their social media platforms (e.g., LinkedIn, Google+ and Twitter).
  • Provide an email address and phone number for someone knowledgeable and responsive as a media contact.
  • Employ useful content. Great storytelling is what sells a release, and these add-ons and themes will help get reporters and editors invested in your news:
  • Provide statistics, if applicable, to add timeliness and credibility to your story.
  • Add local angles. For example, if a law firm has multiple offices, consider customising releases for each office with a different market (city) dateline. In each release, quote a local attorney/office head on firmwide stories. Consider other ways to localise your release to interest journalists in each city where you want coverage.
  • Try to pivot from a current event or story in the news. For example, for a press release about a new law firm office, juxtapose it against a recent story about a downturn in new business openings in the community.
  • Relate your news to current or emerging trends in the legal industry. Reporters often are interested in piggybacking on top of what’s on the cutting edge.
  • Analyse the impact of the news or development that your release covers. Don’t just report the news about you or your firm – explain how it may affect clients, the business community, other lawyers and law firms, and other key constituents.
  • Include at least one good quote from an attorney source or the subject of the release. This adds “color,” personalises the information, and breaks up the routine facts of “who, what, when, where and how.”

Don’t be intimidated by having to produce the perfect law firm press release every time out. By including as many key elements as possible, and hitting upon a couple of attention-grabbing content themes, you’re likely to have success in getting published and positively building the public reputations of yourself and your law firm.

Is NOW the right time to expand your business Internationally?

Expanding your business Internationally is a monumental task but, if done right, can be a significant driver of growth. We are proud to say that we now have coverage in 190 countries, with a small team and no outside funding.

Invest in a scalable infrastructure

Build a platform that is designed to scale from day one. For example, we made sure that Advisory Excellence was set up with infrastructure where it was easy to add new countries, and track KPIs globally.

A focus on marketing channels that can scale, such as Google, Youtube, Pinterest and Linkedin, can also prove useful in building a strong foundation for future growth. Whatever your budget, these platforms allow you to test the waters as knowledge of your market increases. As campaign metrics demonstrate positive growth, your company can expand budgets to grow reach Internationally.

Think globally, act globally

Being in hypergrowth mode is exhilarating but there are plenty of opportunities to learn from mistakes. When you scale very quickly, there is no time to micromanage locally. Only tailor locally what has been proven to make a significant impact.

Build a small but mighty team

Crafting a small but mighty team is key to moving forward in a positive direction. Even if there are only a small number of individuals, a dynamic team can move mountains when the focus is right. Create a high passion and energetic team which is invested in the future of the business.

If you instil one motto in your team, it should be: fail fast, learn and improve. We love trying new ideas and encourage the whole team to continuously test, especially when it’s outside their comfort zone. The only requirement we set is to approach it methodically, to document the results and to share learnings with the team.

Stay community-focused

Nurture your brand ambassadors; your first and most loyal members or customers will be your strongest voices if they can be involved. We’ve been around since 2013 and have built a community that continuously stays engaged. Listen to your members or customers, speak with them every week and make changes based on your insights. As a result of listening to our members, we decided to start hosting events. There is nothing stronger than a real-life experience and it really makes us stand out from the crowd in a competitive market.

Getting more feedback from your audience can push your business to new heights. We collaborate with our members, so a lot of our content is member-generated.

Work smart

Automate time-consuming tasks. We believe we have a strong proposition for individuals around the world and (while there have been many lessons along the way!) expanding into new markets has been one of the most rewarding things we have done.

How to incorporate Bundled Services into your accounting firm

Accounting firm owners could benefit from taking the time to evaluate their accounting firm as a business. As the owner of my accounting firm, I did just that and realised some changes needed to be made, starting with bundling our services.

Many accounting firm’s follow the traditional model of accepting clients in various industries through recommendations. Others provide clients with valuable services along with business-related compliance services, but don’t highlight those.

We as business advisors would agree that best practices for any business start with an evaluation of current practices so that weak points can be identified and evaluated for improvement. When speaking with other accounting professionals, I find many have similar concerns and “pain points”:

  • We spend countless hours learning tax law, software applications and best business practices. Clients call with a “quick question” and expect an answer without a charge for the time or advice.
  • We set up a plan for “making it through another tax season” and then lose control of our process when the client is not forthcoming with the necessary information to complete the engagement in a timely manner.
  • We bill for the services provided once the engagement is complete and then may have to negotiate our fee or wait for payment until the client receives their tax refund.
  • We start an engagement and then find that there is unanticipated work to be done in order to complete the job properly. We feel we should be paid for this “scope creep,” and then we have to explain to the client why the bill is higher. In some cases, we may not be adequately compensated for this extra work. If our clients are buying our services and advice based upon our knowledge, why are we selling them time?

Our lawmakers have identified us as Specified Service Businesses, they clearly see that we have great expertise as our clients’ advisors. They have also challenged us to interpret the sweeping new laws and provided us with an opportunity to reach out to our clients and start a conversation.

What better time than now to step back and evaluate your accounting firm’s procedures and incorporate a bundled services approach into your pricing and onboarding process? This is an opportunity to redefine how you work with your clients, be specific as to expectations and get paid for your knowledge.

Incorporating a bundled pricing system will also enable you to:

  • Standardise your service offerings into packages that your clients and staff can understand
  • Give your clients what they want, in addition to what we think they need, by separating compliance work from advisory engagements
  • Lock down your fee based upon a service level, helping to eliminate scope creep
  • Get paid up-front when you start the work, thus freeing up time and creating an improved cash flow for your accounting firm
  • Enhance your clients’ experience as you take the time to discuss their concerns
  • Ease into advisory services

When getting started, remember to do the following:

  1. Develop your mission statement. I recommend that you and your staff members get together and create a mission and vision statement that is right for you.
  2. Create a business plan. When creating the accounting firm that you want rather than the one that you have, best practices endorse starting with a business plan. Just as you would recommend to any one of your clients who is evaluating their business and looking to make a change, think about the steps that you need to take in order to reach your goals.
  3. Review your current processes. I recommend you make use of an action plan to help you organise and accomplish your goals. Even though you are excited to create the accounting firm of your dreams, it is important to try going slowly at first by creating tasks you can accomplish.
  4. Evaluate your services. Are there services you wish you could offer but do not know how to initiate the conversation? Start by setting up a list of service categories — you can then identify value propositions that will “delight your clients” and create new opportunities for accounting firm revenue.

Evaluate each one of the services you provide, then review and list all the steps or processes that make up that service. Picture a typical project type, then list the services encompassed in that project. By doing so, you create bundled offers or packages of service offerings.

Your bundles will be specific to your accounting firm and either your current or target clients. Your offerings chart for individual clients may look something like the one referenced in the linked whitepaper, but can certainly be more elaborate. It can contain more lines or services to help your client understand just what they are buying.

Remember that each bundle is a set of services packaged together and each is referred to with a descriptive name that describes the level of service. If you choose to move to a bundled pricing system, you will find that new opportunities will emerge from your regularly scheduled appointments, we have.

Now, our clients call and ask for more and expect the additional services to come with a separate engagement letter and invoice. Incorporating bundled services will help you deliver more value to your clients through advisory work. In turn, you will see improved team morale and cash flow, a better overall client experience and the accounting firm you want.