Executive Coaching: Certification, Career and Job Opportunities

executive-coaching

Executive Coaching: Certification, Career and Job Opportunities

Executive Coaching is a rapidly growing field that offers exciting opportunities for helping professionals to expand their influence beyond just individual clients. It can also be a great way to make a living.

Coaches help executives overcome personal and professional barriers so they can reach their full potential in both life and business. Coaches work with executives at all levels of organizations, from CEOs to managers who are trying to get promoted or increase their influence within their current position.

Coaches must be able to work with people across functions, helping them communicate more effectively across departments. This person must also have great time management skills because coaching sessions often come right before other meetings or flights that are scheduled back-to-back. They need strong interpersonal communications skills because they will deal with many different types of personalities throughout any given week, including senior leaders, subordinates, peer-level employees.

The Importance of Executive Coaching

Executive coaching is a process that helps leaders through difficult transitions, such as a merger or acquisition, downsizing, restructuring, career change and leadership transition. Coaches work with executives during times of high stress from these types of events to help them make better decisions and deal more efficiently with people affected by the change. Executive coaches typically work with a person for six to 12 months. 

How to Become an Executive Coach

There are many paths to becoming an executive coach. Coaches may come from a variety of professional backgrounds, such as human resources, training and development, management, psychology, or counseling. 

The average salary for executive coaches in the United States is $100,000 per year, according to Payscale. Executive coaches with more than 10 years of experience earn an average annual salary of $127,000. Jobs for executive coaches are expected to grow by 18 percent through 2022.

executive-coaching

Certification for Executive Coaching

The best way to become an executive coach is to obtain certification. Coaching certification also allows professionals to increase their salary and marketability. Coaches can obtain certification through the International Coaching Federation (ICF) and by working with an ICF-certified coach.

Coaching certifications were barely heard of a few years ago; now they’re fast become a staple among those wishing to enter the growing coaching industry and expand their knowledge and reach beyond just individual clients.

Job Description and Qualifications

An executive coach is a professional who helps individuals and organizations improve their performance. Coaches work with clients to identify and achieve goals, deliver feedback, provide support and accountability, and help clients develop new skills.

Future coaches should have an interest in personality, organizational systems, relationships, and human behavior. This job is ideal for those with a combination of interpersonal skills and business acumen. Those educated as psychologists are best suited for this job, but there are many training and certification options for people with different backgrounds.

Best Executive Coaching Programs and Certifications

 Coaching certification training programs vary greatly in length and intensity, but most programs require about 100 hours of coursework. The Coaching Association of Canada (CAC) offers the only nationally recognized coaching certification in Canada..

Certified Coaches International is another well-respected credentialing organization for coaches.

Coaches who wish to enhance their career prospects can also complete a master’s degree program in an executive coaching or organizational psychology. Harvard University offers an online master’s degree program through its School of Education.

Conclusion on Executive Coaching

Executive coaching is a rewarding and growing profession. Coaches can make a great living by helping individuals and organizations achieve their goals. The best coaches are those with an interest in personality, organizational systems, relationships, and human behavior. They should also have strong interpersonal skills and business acumen. With the right training and credentials, executive coaches can enjoy a successful career in this exciting field.

What do you think? Leave a comment below!

Looking for more articles about careers? Check out our blog page!

Author’s Bio:

Thomas Glare started his career as a game tester and became a team manager. After that, he moved on to project management and held various positions. For the past three years, Thomas has led teams working on art assets for the mobile casino, with hundreds of employees in five different countries at the peak of production. 

How To Manage Your Business Working Capital

working-capital

Manage Your Business Working Capital

Managing your business’ working capital will help you prevent cash flow problems, improve your assets’ liquidity, and increase your return of investment, among many things. Properly done, it will spur your company’s growth, leading to inevitable success.

However, business working capital management is easier said than done. There is a lot of information to take into consideration. You might not know where to start! So, to make your life easier,

Here Are Steps That Will Help You Become A Good Steward For Your Company’s Finances.

Minimize Your Inventory to Help Your Working Capital

Having your own inventory is considered as an asset by many entrepreneurs. But if you want to free up your company’s cash flow and enjoy better net working capital, you need to optimize it. That means increasing inventory turnover cycles, avoiding stockpiling and reducing slow-moving inventories altogether.

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To minimize your inventory, most high performing businesses recommend relying on pull inventory methods like drop-shipping and the just-in-time strategy. These techniques usually involve buying the products (or the materials needed to manufacture it) based on demand. In short, you have to get the goods after your customers have ordered it. This will help significantly reduce your company’s expenses, ensuring your working capital is properly utilized.

At the same time, you need to boost your business’ inventory turnover cycles or days inventory outstanding (DIO) if you want to properly manage your working capital. This means minimizing the days you hold a product before selling it to a customer. To achieve this, you need to constantly measure the turnover rates, compare it to your competitors’, and introduce techniques to minimize DIO.

Switch to Electronic Payment Systems

To effectively manage your business working capital, you need to be able to send out invoices quickly. By introducing an electronic payment system to your company, you can achieve that plus more.

Converting to electronic payables and receivables comes with numerous benefits. For instance, it gets rid of the inefficiency caused by manual processing, lost receipts, and high invoice demands. Also, electronic payment systems can be automated, allowing you to send invoices more promptly. As an added bonus, this opens opportunities for your business to get more favorable capital payment terms and other perks.

Improve Your Collection Processes

Collecting invoices is vital for maintaining your cash flow and shortening your working capital cycle. Unfortunately, this is also a process in which every business runs into snags or delays. It’s not uncommon for customers and clients to try and delay payments as they try to manage their own cash flows.

A good collection process can give your working capital cycle a significant boost. It guarantees that most, if not all, of your pending invoices get paid within the term set by the agreements with your customers. A clear collection system also ensures that invoices are assigned to the right specialist, i.e. overdue accounts must go to collectors that specialize on collecting late payments. 

Take a look at your existing collection workflow and see if there are segments that need to be improved. Try to check if there is a clear schedule of reminders and actions that should be taken as the customer’s due date approaches. Make sure everyone is on the same page with regards to collection goals, and how important the process is to the business.

Introduce New Payment Options for your Customers

If you’ve stuck to only one payment option for your clients or customers, you’re shooting yourself in the foot. In this age, digital solutions now exist for processing payments in addition to traditional check or cash payments to the bank. Your business should be leveraging these digital solutions because they have long-term benefits to offer.

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One of these advantages is convenience. Digital wallets, for instance, provide a means for both consumers and businesses to settle obligations without having to meet. Both parties just need an account at these e-wallets so they can send and receive funds with one another. Transactions are instantaneous, eliminating the usual processing time in traditional payment methods. 

Making multiple payment options available for your customers can also potentially speed up the collection process. They also reduce stress on both your collection teams and the client. With the instant receipt of funds made possible by digital wallets, for instance, customers have almost zero excuses for late payments.

Pay Lenders and Suppliers on Time to Help Your Working Capital

Paying vendors on time is another great way to efficiently handle your working capital. Not only does it ensure proper cash flow, but it also allows you to instill discipline in your business whenever it makes payments. Additionally, it makes suppliers feel more at ease with your company, thus making them more flexible when it comes to discussing prices and contract terms.

So assess your payment terms with your supplier or debtor, and check the agreed-upon window for paying for their goods and services. If the time frame seems too long, then you might want to discuss it with them so you can shorten it. Just make sure the payments you make stays within your company’s budget. Simultaneously, you can reduce potential bad debts by implementing rigorous credit control procedures in your business.

Making sure that all your payments to lenders and suppliers are on time will also improve your credit score tremendously. A good credit score gives you access to more financing options. A positive standing will make sure that you can obtain financial assistance anytime the need arises.

Get Adequate Financial Assistance

Business loans can help you improve your business’ working capital management in several ways. For example, short-term loans can help give your company a financial boost in case its cash flow is acting up. While this is essentially a band-aid solution, it will fund your operations long enough for you to fix your current financial issues.

Or you can opt for long-term business loans to acquire fixed assets and stabilize your company’s cash flow. You can then use the recently fixed cash flow to repay the loans and any other unsettled expenditures. This will ultimately lead to better relationships with lenders, allowing you to get more flexible terms in the future.

Alternatively, you can consider talking to alternative lenders. Unlike banks, these debtors tend to offer more generous deals for their financial services. Depending on where you go, you could end up enjoying more money borrowed, less interest, and generous repayment terms. For instance, you could receive a cash advance against your pending invoices by entering into a accounts receivable factoring agreement with a lender.

Control Your Expenses Carefully

working-capital

Last but not least, learn how to monitor and curb your company’s expenditures. To diligently track your business’ expenses, you need to gather as much data as you can about your historic costs. That way, you’ll be able to make a plan to reduce future expenditures.

You should also manage your business’ variable costs. You can do this by taking a look at your company’s previous variable expenses and calculating how much they contribute to the overall expenditures. Then set budgets for each of these expenses and implement it during the following months. If you’re running a large company, then you shouldn’t ignore small expenses. Despite their size, they can easily accumulate and affect your working capital.

You might also want to think about setting up dashboards. Dashboards allow you to take a snapshot of a specific group of data with just a click of a mouse. You could take advantage of this capability to gain an overview of your business’ cash flow anytime you need to. These software solutions help you make informed decisions when it comes to managing your cash flow and working capital. 

Learn How to Manage Your Working Capital

Through proper business working capital management, you can ensure your company’s financial health, maximize its operational efficiency, and improve its profitability. An optimized working capital cycle, together with cash flow, is key to ensuring your business’ survival amidst a very competitive landscape. The tips outlined above should help in improving your working capital cycle.

One Amazing Way to Boost Your Business in 2022

Ways Boost your business

Way to Boost Your Business

When you start your own business, it doesn’t take long to realize that there is a lot to learn – like gaining the skills to form strategies, budgets, processes, and a marketing plan. Business owners have to create a business card, brochures, website, and logo. To boost their business, they have to write a business plan, hire employees, find vendors and connect with their customers through social media and networking. It is a serious learning curve for most entrepreneurs.

Business owners want to know how to tackle these struggles by getting educated and mentored.  Asking for help can be a hard decision for some, though it’s unquestionably the wisest choice. The faster a business owner gets the essential skills and education, the sooner profits rise and the business owner salary grows!

The One Approach to Mastering Business Ownership

I believe there is ONE simple way that a small business owner can attain the necessary skill set to grow their salary and improve their business.

There’s never been a single independent business owner who could expertly perform the multitude of jobs needed to build, launch, and manage a small company – Marketer, Speaker, Graphics Designer, and Website Developer. Each has to be Leader, Interviewer, Project Manager, and Researcher. Each must know Customer Service, Finance, Sales, and Negotiations.

Remember when Hemingway wrote, “No man is an island”? Well, he may have been writing about a small business owner, because there’s no one who can successfully do it solo.

It’s All About Business Coaching

Business coaches can provide the training, mentoring, recommendations, and guidance which help entrepreneurs to learn the skills they need to achieve their desired objectives. They offer a tailored education along with support and accountability.

Coaching can take several forms … and can be over a brief period or a longer-term, depending on needs and budget.

Below are some options available to you in getting expert help. I personally have used the mentoring options below and have seen remarkable results. Since I hired my first business consultant many years ago and achieved amazing results, I have depended upon advisors to help me advance my business ventures. Here are a few options:

  • Boost Your Business With One-on-One Business Coaching

Meet with a professional business coach on a regular basis. Gain insights into performance, setting goals or strategy, or whatever is needed. This can be done in person, on the phone, or through meeting apps like Zoom or Skype.

  • One-on-One Small Business Consulting.

Use a consultant who is focused on a narrow area of a business for a short period of time. Let’s say that a business needs software to streamline processes. Just hire a specialist to complete this single task and you’re done.

  • Business Coaching Program Helps To Boost Your Business

A program is a series of activities with an end goal in mind. In this context, the business coach develops lessons or seminars for the client focusing on a certain area, like marketing. Coaching programs can be a one-time workshop or several teaching modules held over weeks or months. Programs can also be customized or bundled into packages that cover a wide array of topics and skills, regardless of the size, complexity, or age of a company.

  • Attending Group Business Coaching Can Help You Boost Your Business

Many issues and needs that business owners face are common. Group coaching can be an affordable and even fun solution. In this format, entrepreneurs can receive standard training modules while participating in a community (usually 5‑10 people) that shares successes, referrals, and lessons learned. Meet weekly online or monthly face-to-face.

  • Mastermind Business Groups.

A mastermind group (weekly or monthly) focuses on the sharing of knowledge from other business owners along with a coach. Information shared can be general or specific.

In addition to coaching, all business owners (like doctors and other professionals) should continue to develop their knowledge and skills through self-development:  books, magazines, videos, webinars, seminars, etc.

As you can see, there are many growth and learning options available to the small business owner who wants to improve themselves and grow their business owner salary. Any of these options can provide much-needed support while giving you a significant return on investment.

Tell us what coaching would most benefit you or your business right now?

Employee Hiring Plan: Auto Repair Business in 2022

Employee Hiring Plan

This week I’m writing about using an Employee Hiring Plan in an Auto Repair business. An Employee Hiring Plan helps you to win the battle for the top talent by consistently generating more than enough leads, screening out non-performers, and using a skills-based test-drive process and psychometrics to choose team members that deliver results.

Employee Hiring Plan In An Auto Repair Business

 

36 Business Coaching Modules

I have been writing about some of my hero clients and how we are able to achieve significant results from our work together. We have 36 Business Coaching Modules, which are areas within your business that when we improve your performance in these areas, your business will run better.

Mark, Owner of Auto Repair Shop

Mark is this week’s small business hero. He owns an auto repair business that he started about 5 years ago. When I met Mark his business had grown, but the business was “running him.” He was working very long hours and was constantly interrupted by customers and employees. This was affecting his health and personal relationships with his family; he was spending very little time with them.

Tactical Marketing, Time Management, and Key Performance Indicators

We decided to implement several of our Coaching Modules to address his situation. These included a Strategic Plan, Team Deployment Meetings, Tactical Marketing Plan, but most importantly an Employee Acquisition Plan, Time Management Plan, and a Key Performance Indicator System.

Employee Hiring Plan: Auto Repair Shop

An Employee Hiring Plan is all about marketing. You are simply marketing to prospective employees. Of course, you need something attractive and compelling to market to job candidates. This is one of the things that a Strategic Plan does for you.

A Strategic Plan for Your Team

Even if your business is not the most attractive workplace now, a compelling Vision, Values, and Mission can help you to attract great employees. You are taking your team on an exciting journey to a great job and workplace. The team deployment meeting helps all your employees to know where you are going, how they are to act, and what they are to do every day.

Time Management and Reducing Time Screening Employees

Back to an employee hiring plan, you want to bring in a large number of candidates, but have a system that screens them without taking your time and you end up with the very best prospective employees. That’s what we helped Mark do. We also conducted a time management study and delegated less important duties to his team members. Finally, we installed a door between his office and the customer lobby to reduce interruptions.

Results for Mark and his Auto Repair Shop

As I write this blog post Mark is on a 3-week vacation in Europe. He has opened a second location, purchased a lot for a 3rd location, built a spectacular house on the lake, is working 4 hours a day, and is in some of the best physical condition of his life! Here’s what Mark said:

testimonial5With Alan’s help I have less stress and I’m able to conduct meetings without any interruptions. Alan helped me to evaluate the costs/benefits of hiring new employees and gave me the assurance that I could justify the additional expense. My sales and profits have grown even with the new hires.  Alan has coached me on how to motivate my employees to meet my business goals. With Alan’s help by next summer I plan to have my business running without my day-to-day involvement.

Conclusion

Congratulations Mark on your amazing accomplishments using among other things an Employee Hiring Plan in your auto repair business! You are one of my business heroes and an inspiration to other business owners. You can view another case study using a Team Building System in a landscaping company here.

Search Engine Optimization: Can You DIY in 2022?

Search Engine Optimization

Search Engine Optimization

When you have a website or other online presence, you know that you need to use SEO or Search Engine Optimization to get your business links ranked at the top of internet searches. But can you do it yourself?

Can You Do Your Own Search Engine Optimization?

My answer is yes, as part of a guerilla marketing strategy. Eventually as you grow your business you will likely hire an expert, but in the beginning there are a number of things you can to improve your rankings.

Doing Search Engine Optimization is a lot of work

Search engine optimization is a lot of work and requires learning some things about the internet. Even though SEO is a good strategy to make your website known and to get more leads and customers, it takes time and effort. Starting out, read some related blogs or articles. Watch a webinar. Ask other business owners and partners how they tackle this truly important strategy.

With SEO, there are plenty of things you can do on your own that won’t cost you anything but a few brain cells:

Know Your Business Keywords

As you attempt doing your own search engine optimization, the first focus point should be keyword research. You must know the words or phrases people are using to find your products or services, which drive them from search engines to your web site or social media channel.

While you know the names, characteristics, catchwords, and jargon associated with your offerings, don’t assume that buyers do. Do a little digging to discover the verbiage being used in internet searches – try using some free tools like Google Ads or Google Keyword Planner.

Future outlook for Search Engine Optimization

Voice searches are rising, and are expected to be used for half of all searches. This will necessitate using more conversational phrases instead of individual keywords.

Check Out Your Business Competition

Looking at your competition’s online presence can help you figure out how you can get more visitors and sales. While you shouldn’t just copy what your competitors are doing, it can be quite useful to see what they do and how they do it.

Conduct your own searches for services or products that you offer. Click on the website results that Google returns and do a little investigating:

  • How does your competitor rank in search results compared to your company?
  • Do they have a comparable business model to yours (similar pricing structure, services, products, online storefront)?
  • What they are doing well (branding, easier navigation, more photos or testimonials)?
  • How do they engage with their prospects (pop-ups, videos, trade shows, person-to-person, etc.)?

How Social Media Can Help Search Engine Optimization

Platforms like Facebook, Instagram, Twitter, LinkedIn, and YouTube are incredibly important in terms of search engine optimization.

While having a YouTube channel doesn’t by itself rank you higher in search results, it starts a chain of events that does. Worthwhile content gets followers, who share links with others … your brand grows, traffic increases to your site … website shows up higher in searches.

If you don’t have a social media page, build one! It continues to be one of the best ways to share your content and to drive more targeted traffic to you.

Think Your SEO Strategy Through

After completing the earlier steps, you can now look at your website from a different perspective. You should have a clearer idea about what your target audience is looking for and how your competitors are offering it.

Now, take a look at your website again. Choose the most important pages and the right keywords to get consumers there. Driving traffic to these pages is what will create interest, draw them into a funnel and, ultimately, make a sale.

Recommendations to Improve Your SEO:

Pop-ups within your site are a great method to drive your web visitors to connect with your sales team or to go where your products and services can be purchased. Be careful in your design, though – as of 2017, “intrusive” pop‑ups (ones which that a mobile user has to dismiss before being able to access the main content of the page) will get you penalized by Google.

Include your target keywords in: content, images, all types of links, and in URL slugs (ex: www.mywebsite.co/keyword).

Polish up your content – it should be:

…   typo-free

…   professionally written

…   keyword-rich

…   mobile-optimized (test it)

…   of value and relevance to your target audience

Optimize your website by:

  • following Google guidelines
  • avoiding broken links
  • partnering with other site owners to provide backlinks to each other’s pages
  • making it user-friendly (test that, too)

Keep it Your Content Fresh

Content is crucial in any SEO strategy. However, we understand that you may not have the time to publish a blog post every day.

You just need to strike that balance in making Google happy by publishing new content frequently. The main focus should always be ensuring that your content is unique, valuable, and consistently refreshed. Good, relevant content ensures people will share it.

Remove stale website copy

Don’t forget that publishing content with relevant keywords is not just about text – there’s also videos, photographs, imagery, and infographics, among others.

Analyze Your SEO Results

Measuring your results is crucial to knowing if your efforts and strategy are paying off. After all, how can you know which page gets the most visitors? Or the pages where your bounce rate is higher? Or what content leads directly to purchases?

Find the right website analytic tool for you, based on the data you want to collect as well as its ease of use, power, and cost. There’s Google Analytics, SEMrush, and Clicky, to name a few. 

SEO may not be what you thought would keep you up nights, but it can’t be ignored in the quest to guide traffic to your stuff.

Summary: Be Persistent With Your SEO

Unfortunately, SEO is not a once-and-done job. Due to the continually changing universe of factors like search engine formulas, terminology, marketing trends, and user devices, you’ll need to regularly review and analyze what gets your links high on search results and drives consumers to your products and services.

Ten Company Improvement Suggestions in 2022

ten improvement suggestions

When you own your own business, it doesn’t take long to realize that there is a lot to learn. Many self-employed people ask me how a small business owner can improve their business and make more money. You may want to know the best ways to grow your business, how to hire and retain employees, how to be more profitable, or how to work fewer hours. There are many options available to you as a business owner. Here are the ten company improvement suggestions:

Use Some of These Ten Approaches to Grow Your Profits by up to 1,500%

Over the years I’ve had the opportunity to lead a number of business mentoring approaches to pursue the improvement of my own businesses and my client’s businesses. Here are ten ways a small business owner can improve their businesses. Some of these options have grown my client’s businesses by more than 400% and their profits by more than 1,500%!

The Ten Company Improvement Suggestions

In this scenario, you are working with a professional business coach who will meet with you on a regular basis to review your business performance, help you set goals, and hold you accountable to your objectives.

  • One-on-one small business consulting.

A consultant is usually focused on a narrow area of your business for a short period of time. For example, let’s say that you need help with developing operational software to streamline your processes. You would hire the consultant to complete the job and then you’re done with them.

  • Business coaching program.

A program is a series of activities with an end goal in mind, and is one of the ten ways to improve your business. In this context, the business coach develops a series of lessons for the client that directs you to improve your business in a certain area. For example, let’s say that you are interested in learning about marketing your business so that you can grow. The coach would teach you how to market.

  • Business coaching packages.

Packages are a variety of services or products that are included in a “bundle.” In our case, we have packages that include coaching you in 36 areas of business in the categories of time, team and money. These are especially helpful to you as a small business owner as your business grows and develops through various stages towards business freedom.

  • Custom business coaching.

Custom business coaching is the ability to create a unique coaching solution for the varied needs you may have as a business owner. Some business coaches with little experience may be strong in a certain area of business, but quickly run out of helpful advice when they encounter a new type of business or a unique problem. The ability to customize coaching services is a helpful advantage to you as a client.

  • Group business coaching.

Some self-employed people may not be able to afford a one-on-one business coach. Additionally, many issues that business owners face are common. Group business coaching can be a good solution for you. Your coach meets weekly online or monthly face-to-face with 5 to 10 non-competing business owners and takes your group through teaching modules. Business owners can share their experiences with others in this format.

  • Mastermind business groups.

With a mastermind group, the focus is on the sharing of knowledge from other business owners and the coach in the group. Usually, the coach will include a one-on-one monthly session for you and the group members.

  • Business referral groups.

These are groups that meet on a regular basis for the purpose of giving and getting referrals. The largest, most well-known referral group is BNI. Sometimes an educational component is also included in these groups, especially in the area of networking.

  • Peer-to-Peer mentoring.

Improving your business does not necessarily need to be in a formal setting. If you are on a tight budget, you can simply meet with another business owner to share and receive knowledge and to hold one another accountable.

  • Number Ten on the List is Self-Development.

Ranking ten on the list is forming the habit of developing yourself through books, videos, seminars, webinars, workshops, and audiobooks. You can select offerings on any area of business you choose.

Conclusion

As you can see, there are many options available to self-employed and small business owners who want to improve their businesses. Each of these options works, some better than others. But all can give you a return on investment. Which one of these ten company improvement suggestions worked best for you? And what didn’t work? Let us know your thoughts and experiences in our comments area below.

Using Psychometric Profiling to Hire Employees in 2022

Psychometric Profiling

Using Psychometric Profiling to Hire Employees

When you are recruiting new employees to work in your small business, you want to make sure they have the knowledge and skills for the specific job position you are filling. You also want to make sure that your employee will be happy in their position. So while looking at their CV is always something you should do, you should also use psychometric profiling.

But what exactly is psychometric profiling?

Simply put, psychometric profiling is a process that you can use to measure someone’s behaviors as well as mental capabilities. By using this process, you can know if someone is suited for both the job position as well as if he or she will be able to fit in within your small business.

While you may think that psychometric profiling is something incredibly complicated and expensive and that only big companies and corporations can do, this is not right. The fact is that the right employees will help you grow your business. When you take the time to select the right candidate for the job, you will be increasing your odds of success.

How Can You Use Psychometric Profiling To Choose The Ideal Candidate?

When you use a psychometric profiling process, all the candidates will be subjected to one or more assessments that will show their real personality as well as their real abilities. Even though some small business owners believe that psychometric profiling isn’t really measurable, you need to understand that the results are then analyzed statistically. And this will ensure that you get objective and reliable results.

When you are interviewing candidates for a specific job role, it is hard to understand the work skills the candidate has as well as whether she is hard-working or laid back. After all, most candidates show their best side on interviews and when they are hired, they will show how they really are. So psychometric profiling can help you decipher candidates better before you hire any one of them.

Your Job Candidate: Introvert or Extrovert?

Especially in small business, the work environment is extremely important. It is important that all employees get along well, that they are able to communicate and help each other when in need. So, psychometric profiling can help you discover if a candidate is extrovert or introvert, if he or she has the wrong temperament, and even if he or she is an easy-going person who is easy to work with.

Your Job Candidate: Team Player or Maverick?

As you can easily understand, the psychometric profiling criteria need to be carefully selected based on the open position. Let’s say that you are hiring someone for customer support. You want to ensure that a candidate is a calm person but that he is also pro-active. You need him to be patient and that he knows how to listen and take action on his own. On the other hand, if you are looking for a salesperson, you want to ensure that you have an engaging person who is easy going. So, ultimately, the psychometric profile varies depending on the job role.

Benefits of Psychometric Profiling in Your Business

Many companies and organizations are already using psychometric profiling every time they are recruiting. And there are many reasons why they are doing this:

– It helps with career guidance.

– It helps in succession planning as well as it can help in the development of future talent.

– It helps when it is time to have a promotion.

– It helps with training since coaches will have a better perspective of each employee and how they can easily reach them. In addition, the skills of each employee can also be increased according to his own preferences, allowing the employee to be more motivated.

– It helps as a part of the recruitment and selection for a specific job role.

Using Social Media to Know Your Job Candidate

As a business owner, you probably already know that many companies are using social media to recruit new employees. And when you are using psychometric profiling, you can have a better perspective of who you are recruiting for your small business.

Observe Your Job Candidate’s Posts on Social Media

Many people tend to forget about what they say in social media. However, they already left their footprint in there. So, by turning to social media, you can easily discover if your current employees are happy with their work, for example. But you can also notice some patterns in new and current employees. By looking at the social media background of a candidate and using psychometric profiling, you will be able to establish how this person behaves online.

Things You Can Learn About Your Job Candidate on Social Media

Here are some of the things that you will discover with the use of psychometric profiling in social media:

– An inconsistency of facts when the person posts opposite things on different websites.

– Harassment or bullying.

– Posts with harmful images.

– Inappropriate use of language.

– Negative comments about brands and employers.

As you can see, psychometric profiling is an incredible tool that you can use to recruit the ideal candidates for your small business. Besides, you can (and should) also use the data gathered to continue to improve your hiring model.

Why Measuring Results In 2022 in Your Businesses Is Crucial

Measuring Results

Why Measuring Results In Your Businesses Is Crucial

Measuring results is crucial! As a self-employed person, you know how business can be unpredictable. Since everything keeps changing and you need to keep adapting to every change, it is important to constantly measure your business results.

All businesses have ups and downs. And when you’re in a down cycle, there is nothing better to help you get up again than looking at the results and evaluating them. Conversely, when you are in an upcycle you want to measure what is working right so that you can repeat your success.

The Importance of Tracking Lead Indicators and Lag Indicators

There are two types of Key Performance Indicators: Lead indicators and Lag indicators. Lead indicators are measures of what happened today and this week. Examples include the number of today’s and this week’s prospects, the number of prospects you have converted into customers, recent customer reviews, etc. Lag indicators measure what happened in the past. Examples of Lag Indicators include income statements, balance sheets, and cash flow statements.

When you are looking to measure the results of your small business, there are many different methods or approaches that you can use. My preference is to use lead indicators and lag indicators. But in both cases, you want to track your results as quickly as possible. If you are using Quickbooks it is possible to have your income statement in real-time. That requires you or your accountant to enter all of your sales and expenses daily.

Here are some Key Performance Indicators to consider for your business:

#1: Determine Your Customer Satisfaction:

Measuring results is crucial with customer satisfaction. As a self-employed person, you know that the ultimate goal is to have good customer satisfaction. In fact, there are some business owners that only use customer satisfaction when they are measuring results. However, I’m not that extremist even though I believe this is a very important method.

The reality is that if a customer isn’t happy with the product or service they bought from you, they won’t buy from you again. So, how can you start measuring results?

Getting Online Reviews

One easy way is to have your customers to give you online reviews with Google, Yelp or other Social Media platforms. The rating scale is 1 to 5, with 5 being excellent and 1 being poor. You have to be pretty confident of your service or product because your rating will be posted for the world to see. The upside to doing this is if you have great reviews everyone will know it! One downside is that you may not be able to track certain aspects of your service that you may want to improve.

If you want more specifics you can use a survey with specific questions and ask for a review or feedback, or you can simply ask your customers directly. Doing this allows you to understand how certain departments in your business may be working such as reception, reservations, operations, billing, etc.

What if You Get a Bad Review?

One thing that you need to have in mind is that you won’t be able to make everyone happy. There will always be a couple of customers that won’t be happy no matter what you do. However, don’t let this affect you. Take note of their opinion and try to improve the services or products that you are selling. If the negative review is online always respond to the review with an online review and apology and an offer to remedy the situation. Finally, bury that negative review under a lot of positive reviews! Be proactive about asking for reviews; the more the better.

#2: Measuring Results With Your Financial Statements:

Measuring results with your financial statements is crucial; they tell a story. The story of your recent performance of how much you sold, how much you spent, and how much was left after doing your selling and spending.

While you may not be an accountant and don’t understand financial statements very well, you want to learn how to read them. After all, you need to make sure that you know how much money your business is making and how much it is spending.

Measuring Results Using a Cash Flow Statement, a Balance Sheet, and an Income Statement

The main documents that you really need to understand are the cash flow statement, the balance sheet, and the income statement. The cash flow statement will allow you to know how much liquid cash you have. The balance sheet is a great tool to see how much you own and how much you owe. Last but not least, the income statement will show your profits and losses in a specific period of time.

When you look at them all together, you’ll get a great perspective on how your business is.

#3: Determine The Number of Prospects That You Are Getting:

Measuring results with your prospects is crucial. You should know how many prospects you need in order to win a customer. Your marketing activities should bring you the number of prospects that you need in order to meet your sales goals. Begin to track every inquiry that you receive through phone, through email, and through social media. Find out how these prospects found out about your business so that you can measure the results that your marketing activities are bringing to you.

#4: Determine The Number Of New Customers That You Are Getting:

One of the best ways of measuring results in a small business is to look at the number of new customers that you have on average. While it is important to keep your current customers happy, it is also important to get new ones. After all, when you don’t have new customers or you have one or two new customers a month, you can say that your business is stagnant (in some industries, and depending on the products or services that you provide).

In case you have no idea about how to start measuring results in this field, you can start right now. Simply create a list with your current clients and their email addresses, for example. As you have a new client, add him to the list with the date. This way, it will be easier to know if you are increasing your average of new customers, reducing it, or if you are stagnant.

#5: Measuring Results With Your Employees:

While keeping monitoring your financials as well as your customers’ overall satisfaction, your employees’ input is also crucial. So when you’re measuring results, you can’t forget about them. After all, they are the ones work hard so that your business can reach the goals you defined.

One of the things you can do is to conduct performance reviews once or twice a year. These will allow you to see if employees are happy with their current job position, with their responsibilities, and with their payrolls as well as they allow you to determine if they are completing their tasks in an efficient way.

I also recommend reviewing all your Key Performance Indicators with your employees and getting ideas from them on how to improve your performance.

As you can see, there are a lot of alternatives to measure results. And the best thing is that you don’t have to choose one over the other. You can (and should) use as many methods as you can so that you can truly start improving your business results.

Conclusion

What measures do you use? Have you tried any that have not been helpful to you? Tell us in the comments below.

Using a Sales Management System in 2022: Manufacturing Company

Sales Management System

A Sales Management System

This week I’m writing about using a Sales Management System in a Manufacturing Company. This is a practical system for building a top-performing sales force by scripting their approach, managing their activity, measuring their performance, and tying their paychecks to results.

I have been writing about some of my hero clients and how we achieve significant results. We have  36 Coaching Modules, or areas that fall under the categories of growth, profits and freedom. These are areas within your business that when we improve your performance, your business will run better.

John’s Manufacturing Company

John is the owner of a foundry (metal castings manufacturer). At this point, he wanted to transition his business into composites manufacturing. Over the previous two years, John had seen a decline in sales and profits. As a result, he had accumulated some debt; John wanted to become debt-free and grow his retirement savings. He has two daughters that are soon to enter college. Besides, John wanted plenty of time to pursue his hobbies of cycling and bowhunting.

Tactical Marketing, Time Management, Key Performance Indicators, Strategic Planning, and Team Deployment for John’s Company

We decided to implement a Tactical Marketing Plan, Time Management Plan and Key Performance Indicators. We then developed a Strategic Plan for his business. When it was ready, we met with his team to share his vision, values, and mission. This was the team’s opportunity to give their input and buy-in to the direction of the company.

The Sales Management System Implementation in a Manufacturing Company

We decided to focus on several of our Coaching Modules. We started with the Sales Management System. With our Sales Management System, we focus on three areas: Attitude, Activity, and Acumen. Based on this, we started by setting up an internal customer relationship management system. Then John and his team began to spend time daily on marketing and contacting prospects. We did a press release about John’s new focus in the composites industry and saw a big response. Additionally, John attended some of the Composites Industry Association meetings and developed relationships with contacts there.

Results For John’s Manufacturing Company In Using A Sales Management System

John’s results with our Sales Management System were dramatic in his company. Here’s what he said:

testimonial10“Alan has kept me focused on marketing, sales and profits and has held my feet to the fire. The results of this focus are that my sales have grown 30% and profits are up 228% over last year.”

 

Congratulations John on using a sales management system to grow your sales and profits. You are one of our business heroes and an inspiration to every business owner. You can view a pest control company using a revenue and profit budget here.

Interpret Your Income Statements in 2022

Income Statements

Interpret Your Income Statements

Small business owners must take on different roles to keep costs down – whether as a designer, copywriter, marketer, or accountant and being able to interpret income statements is included in the must-knows. You have to apply all the skills you have, or get the training to fill in the gaps.  

One expertise that tends to be particularly difficult for small business owners is creating and managing income statements. Two primary financial documents that a business owner must have are a balance sheet and an income statement. On the balance sheet, you can see what you own (assets), and what you owe (liabilities) at a specific moment in time. Income statements show – by month, quarter, or year – what money is coming in and going out, and whether you made a profit or had a loss.

Owners use this critical document to analyze profit and loss, and to then make strategic decisions on increasing sales or reducing expenses. It’s also a required document to show to inventors and lenders.

What is the Story That Your Income Statements Tell?

Your income statements tell a story. They tell a story of how you grew or didn’t grow your sales. How much you spent to get sales. How much you spent to pay yourself and your employees. How much you spent on rent, phones, insurance and other expenses. And then finally the story of how much was left in profits or losses after sales minus expenses. Whether the story has a happy ending is up to you!

To help you, we’re giving you some tips on how to interpret your income statements:

A Reality Check For Your Financial Reports

Even though your income statements may be done on the computer, it’s a prudent idea to verify the data. One wrong number or an error in a calculation could make the statement virtually useless.

  • Do you have all the needed categories for your industry (retail, manufacturing, personal services, etc.)?
  • Are any figures missing (costs like association fees, licenses, or legal bills or income like earned interest, rebates, or sold equipment)?
  • Are all the Excel formulas (like Sum) correct?
  • Do the actual numbers make sense for each category? 

Ensure you’re tracking all the right categories, and that the data makes sense. This can be a challenging task, so it’s always a good idea to explore reliable financial courses, such as MNYMSTRS financial literacy for beginners, that can provide you with the necessary knowledge and reliable tips regarding your financial wellbeing.

The Income Statements Sources

It’s imperative to closely look at each one of your income sources. Ask yourself if this revenue is sustainable or not.

Analysis will show whether your current business model is working. If not, determine what can you can do to improve it, such as:

  • Develop procedures or process flows to help your team become more efficient and, thus, faster
  • Join a trade group like an industry association or community club like a local Chamber of Commerce to meet peers and potential clients
  • Increase your online advertising to drive traffic to your website
  • Hire a professional to help with weak areas like social media, copywriting, or sales

The Expense Categories on Your Income Statements

Most businesses share common expenses like rent, insurance, staff salaries and benefits, interest, taxes, and supplies. Keep an eye on these expenses to determine if all expenditures are shown, and if reductions can be made in areas like insurance premiums, inventory, or loan rates.

Consider whether expenses are appropriate for your industry; for instance, in a manufacturing business, supplies and materials should be your two largest costs. If you have a service business, you should see a bigger expense in salaries.

It’s also a good time to think ahead to planned future expenses like training or advertising, and to make adjustments as possible in other categories.

The Bottom Line: Your Profits

Particular focus will be on the number at the bottom of your income statement:  Net Income value. When it’s a positive number, you have surplus income; when it’s a negative number, you have a loss for that period.

A positive number here indicates your business is making more money than what it’s spending for that period. It shows you’re doing a great job in managing business costs and generating sufficient income to be profitable. Congrats!

Positive income gives you the option to spend money on new equipment or software, advertising, or bonuses, or even pay yourself! 

If the Net Income value is a negative value, it means that your expenses are higher than your revenues. The negative number can show enclosed by parenthesis, in red, or simply have a minus before the value.

When you see a negative value here, it doesn’t imply that your business is failing. Many businesses operate in the red for up to 3 years due to the numerous start-up expenditures like facilities, hardware, software, training, websites, and licenses.

A negative number can also be due to lower revenues or higher costs due to:

  • ramping up your customer base through networking and word-of-mouth
  • development of advertising, social media, and online content
  • seasonal work such as farming, snow removal, roofing, or landscaping
  • time for training and certification of staff

Assess the root causes for negative Net Income and make the moves toward improvements in the period that follows.

If you continue to have a negative Net Income, you need a deeper analysis to know where efficiencies and changes can be made.

Comparing Income Statements Side-by-Side

While looking at an income statement from a single period is important, it’s even more important to compare it to the previous ones. This is the only way that you have to see major trends in costs and sales.

Ideally, use an income statements template that will show a column with your last numbers. Use the comparison to become aware of any trends, seasonal affects, unnecessary costs, or other key information. 

Once you can see the ups and downs in your numbers, you can address how to maintain the ups and to avoid the downs. If sales have declined, you can hire more staff. If insurance rates have increased, you can shop a better rate. If inventory is top-heavy, you can sell off the excess.

Reviewing the numbers in an income statement may not be the most exciting task of your day, but you should now recognize its importance in growing a successful business. You’ll know what is earning money, where your losses are happening, and how to get to the fun part – making more profit so you can expand your small business and fulfill your dreams.

For more information, here’s another article entitled “Why Measuring Results in Small Business is Crucial.” What are your thoughts about this topic? Is this helpful information? Reply in the comments below.