Article Contributed by Roberta Chinsky Matuson
As human beings, we have a natural tendency to want to be loved. But what happens when your desire to be loved interferes with your ability to lead?
People who gravitate toward leadership roles tend to be charismatic. They work hard at keeping their audiences captivated and enjoy the adoration they receive from their followers. This is all fine and good, until their desire to be liked, or even loved, begins to cloud their judgment. Here are some examples of how this can play out:
Colleagues rather than subordinates
In their quest to be liked, leaders drop their guards and become more informal with their employees than they should be. An example of this is when a leader joins his staff at Happy Hour. There is nothing wrong with sharing a beer with the team. However, things can quickly get out of hand when one beer leads to a six-pack. Before you know it, managers are sharing drinking stories from their college days. Throw in a few shots of tequila, and all bets are off.
To effectively lead, your followers must have a high regard for you. Sure, they may look up to you all evening, but will they still respect you in the morning?
Communicating versus commiserating
It is lonely at the top. There are few people who you can confide in regarding your hopes and fears. It can happen to the best of leaders – eventually they stop communicating and start commiserating with their executive team and sometimes with staff.
In these trying times, your team is looking for a leader. Someone who they are confident will be able to steer their ship through these choppy waters. The last thing they need to hear is a leader expressing doubt. If you find that you need a sounding board, consider hiring an executive coach or joining an association. Then be sure you return to the business of communicating the information employees need to hear, so when you turn around, you actually have people following you.
Are you doing too much for your employees?
Are you constantly picking up the slack for members of your team who are not cutting it? When doing so, do you take the time to explain how they can improve their performance? Or do you simply decide it is easier to do things yourself to avoid more conflict?
Conflict fuels improved performance and innovation. It can also strengthen relationships when both parties have an opportunity to have their say. Think about your own personal relationships – do you have more respect and adoration for those who are willing to call you on your actions, or for those that avoid conflict?
It is nice to be loved, but as a leader, it is more important to be respected.
About the Author
Roberta Chinsky Matuson is the President of Human Resource Solutions (www.yourhrexperts.com) and has been helping companies align their people assets with their business goals. She is considered an expert in generational workforce issues. Roberta publishes a monthly newsletter “HR Matters” http://www.yourhrexperts.com/hrjoin.cgi which is jammed with resources, articles and tips to help companies navigate through sticky and complicated HR workforce issues. Click here to read her new blog on Generation Integration http://generationintegration.typepad.com/matuson/. She can be reached at 413-582-1840 or Roberta@yourhrexperts.com.
Author: Pamela Swift
Article contributed by Franchise Direct
Franchise Direct, one of the world’s leading franchise portals, recently conducted an in-depth study of the coffee franchise sector. After thoroughly examining 29 Franchise Disclosure Documents, Franchise Direct has found that the coffee franchise sector is weathering the recession resiliently, bolstered by a product that is an integral part of American life.
Despite an early dip at the beginning of the recession, this $11 billion a year industry continues to grow and diversify, according to the Franchise Direct study. With coffee consumption remaining constant in this declining economic climate, coffee franchises continue to be a worthwhile investment.
According the study, the coffee franchise industry remains extremely competitive at the top and fragmented at the bottom. Starbucks is the industry’s leading coffee chain, with over 16,000 stores worldwide. Because of the accessibility and popularity of coffee, a franchised approach, boosted by an established brand identity, continues to be one of the most profitable options to profit on this product.
One of the most reassuring reasons to invest in a coffee franchise is the enduring success of the beverage. The Franchise Direct study quotes a recent poll that shows that coffee consumption actually increased last year among the lucrative 25-to-39-year old demographic, while it remained steady amongst 40-to-59-year-old’s. As the recession continues, we can safely assume that the popularity of coffee will continue unabated.
Coffee franchise businesses are also flexibly adapting to new American consumer habits. For instance, in recent years, there has been greater demand for environmentally-friendly products that do not exploit workers in the production process. Coffee franchises have been at the cutting edge of the Fair Trade movement, and with a range of organic goods, they are perfectly positioned to thrive on this developing $1billion industry.
The Franchise Direct study shows that location is the most important factor in a coffee franchise’s success. At the same time, mobile units or kiosks give prospective franchisees a low-overhead, high footfall alternative to the standard franchise unit arrangement.
Underpinning the recent success of coffee franchises is the growing popular consensus that coffee has a number of health benefits for drinkers. While perhaps once seen as unhealthy, coffee, as illustrated by authoritative studies conducted by researchers at Harvard and UCLA, clearly has health incentives.
People exploring franchises for sale will find that coffee franchises sell a product with broad public appeal that is seamlessly adapting to American consumer trends towards healthiness, social responsibility, and environmental sustainability.
Article Contributed by Experienced-People
The dot com bust proved convincingly that business models involving a lot of gloss and very little prospect of consistent and growing profit find themselves on the scrap heap – and rightly so. However, in the years that followed, some internet businesses made it so big they forever changed how people buy products and how they live their lives. From Amazon’s colossal grip on the world of books, to Paypal’s hugely successful online payment system, to YouTube’s massive user base, many Internet businesses have innovated their way to fame and success. However, the big Internet Business Success Story isn’t any of those. Some of those leviathans have profit more in their imagination than in their bank.
The Facts and Figures
That the Internet population is growing by the day is not in doubt. From 2000-2008 the number of people online skyrocketed by 342%.1 Not only are more people online but users are spending more time on the ‘net, accessing more goods and services there, integrating their offline world with “social networks” and moving their spending online too. In 2008, nearly 900 million people bought something online and that number is growing at the rate of 40%2. The US accounts for less than 16% of global internet users, yet in the US alone people will spend over $160,000,000,000 online in the recession hit 2009.
The bulk of that money is not, as one would imagine, going to a few large companies that straddle internet commerce. For every dollar the Google behemoth makes from the Adsense ads seen on so many websites, a large chunk goes to the owners of those sites. In the first quarter of 2009 Google paid out $410 million every month to these small businesses3. For every £1 eBay makes in commission on goods sold, the “small” eBay retailer pockets up to £10 in profit. The top 1000 eBay sellers generated revenue of £785,000,000 in 2008, with an average turnover of £440,0004.
The Opportunities
Businesses like eBay and Google account for only a small fraction of the business transacted online. The big story is the millions of small businesses – from firms developing applications for Facebook to companies creating and providing electronic delivery goods like software and ebooks, to businesses supplying consultancy services to SMEs, multinationals and governments. There are huge opportunities, there are successful businesses showing amazingly healthy growth, and there’s a business in this sector to suit every taste and budget. They include
– small, low cost, work from home, part-time businesses making just a few hundred dollars a month
– information websites that have steady revenue from contextual ad programmes such as Adsense. (It’s like income from copyrights and patents – no active management required)
– “drop ship” retailers of everything from candles to yachts but without a warehouse, logistics or customer service
– domain businesses consisting of nothing more than a collection of domains earning steady income from “domain parking”
– franchises without the employees, premises, bureaucracy or tedious hours
and
– traditional businesses selling high street goods and services but conducting the advertising, selling, order processing etc., entirely online giving them a significant competitive advantage over older, more established players
Why Now?
Clinton Lee, author of 101 Ways to Make Money Online, has been involved in online businesses for the best part of the last decade. In his words, “I’ve moved from buying and developing B&Ms (Bricks and Mortar) to buying Internet businesses partly because they are so much better value. The P/Es are a lot more attractive. It’s not uncommon for a quality website to sell for less than a year’s EBITDA. There are real bargains to be had. Yet, these businesses are higher growth, more flexible, more scalable and better able to adapt to changing market conditions.”
The lack of geographical restriction when choosing a business makes for phenomenal amount of choice. Most can be run from anywhere, even if the owner decides to emigrate. The ownership of online business and their cash flow can be directed outside a home country making them ideal tax planning vehicles. Internet businesses are easier to grow than local businesses, can grow much further, can employ talent anywhere in the world and tap into the larger global market.
So why are do online businesses sell for what would be considered bargain basement prices elsewhere?
Traditional valuation principles still apply. It’s still about quantifying future Profit and Risk. The values exist …but the buyers don’t.
There is still a mind-set among buyers that associates Internet businesses with new-fangled, high risk or requiring specialist technical skills to own/manage. Nothing could be further from the truth. While no Internet business can boast the 50 year history that some cafes, hotels or pubs take pride in, many have been generating substantial and growing profits for several years. With staff to do the technical work, long-term contracts in place with blue chip companies, solid business plans and motivated management teams, many of these businesses have everything that excites buyers.
Except the Marketplace
There’s another price dampener: the lack of a proper forum for the buying and selling of these businesses. Apart from particularly large businesses, Internet concerns are unlikely to catch the attention of the right audience when listed in a general business-for-sale publication. A typical website owner wishing to sell needs to contact owners of similar sites or post threads on webmaster community boards – hardly the best places to find savvy business investors.
What’s very evident in these website-for-sale threads is the average sellers’ obvious inexperience with selling businesses. Their pitch is targeted squarely at their audience of webmasters and usually refers to Page Rank, DMOZ listings, site design and backend, how high the PPC is etc.. but rarely a proper analysis of the profits, cash flow or projections. Presenting a proper financial case is a turn-off for that specific audience. The experienced business buyer would ask the right questions to get at the figures.
The new Daltonsbusiness sector devoted to Internet businesses should bring these business opportunities to a wider audience and expose business buyers to a largely untapped sector.
Isn’t it time you considered buying an Internet business?
Almost everyone associates the telemarketing industry with outbound call centers. You know, the gigantic room full of people with headsets on, “cold calling” customers to make sales, generate leads, or collect information for surveys. There’s another kind of telemarketing, though- think customer service 1-800 numbers, customer help desks, or order processing over the phone. Inbound telemarketing is becoming a popular way to outsource processes that businesses might not have the staff capacity to handle. Here are a few ways you can use inbound telemarketing to benefit your business:
Order Processing
Inbound call centers can take customer orders over the phone and even process sales when customers pay with credit cards. Any business with time restrictions, such as those whose employees only work during business hours, can take advantage of this extended availability- the more you’re available to customers, the more sales you’ll make. You can also use inbound call centers for order processing for their language capabilities. While you might not have the resources to hire sales representatives that speak Spanish, Japanese, or Tagalog, an inbound call center does- this allows you to reach and communicate with more potential customers in a language they’re comfortable speaking.
24/7 Customer Service
If your employees can’t be available for customers at all hours of the day, inbound telemarketing offers a solution. Many businesses assign a 1-800 number to a telemarketing firm for in order to give customers around the clock access. Businesses like banks, hotels, and insurance companies that need to provide constant access use inbound telemarketing companies to fill the gaps when their own employees aren’t available to answer questions, fix billing errors, or file claim reports. If your company could benefit from offering 24/7 support to customers, telemarketing is an option you should consider.
Helpdesk and Customer Support
If you sell a technical product, such as software, it can be a good idea to use dedicated telephone service representatives- telemarketing company employees trained by your business that only answer calls on behalf of your company- rather than employing a full-time helpdesk employee as a member of your own staff. You can also reach more customers- telemarketing companies keep longer hours, employ representatives with different language capabilities, and are able to stay open to customers in different time zones more easily.
Lead Generation and Appointment Setting
Inbound telemarketing is often used for lead generation and appointment setting. You can direct sales leads to call the telemarketing company directly to set up a sales appointment, or gather sales lead information when customers place calls for more information about your products or services.
Inbound call centers can be used for several purposes in addition to those mentioned above. Inbound call centers can assist with promotional contests (such as radio call-ins) can help collect survey or donation information, or for any other service you can think of that might benefit your business. It’s always a good idea to speak with at least a few different companies before making a decision about which company to choose.
Here’s a tough question: What’s the one thing nearly all business owners consistently overpay for?
The answer is pretty surprising: Postage costs. Stamps, shipping charges, even the time it takes to go to the post office can all add up, costing thousands of dollars or more each year, depending on the volume of mail you ship. Most business owners don’t know exactly how much it costs to mail a particular parcel- so they end up “over stamping” and overpaying- often by quite a bit. Postal stores and shipping providers have overhead costs to meet, too- you pay for these when you’re charged to ship an item.
You can avoid overpayment- and create big savings- by using a postage meter. A postage machine, or digital mailing system, can calculate postage costs precisely, so you’ll never overpay, and can be used in-office, saving you trips to have packages shipped from other providers. Here’s a quick guide to using a postage meter:
How meters work
Postage meters are leased, and work similarly to a parking meter. You “fill up” by making a payment, and postage charges are drawn against your balance. Most meters allow you to “refill” when necessary, and some calculate monthly charges and send a bill- similar to paying for electricity costs. In addition to paying the postage charges, you’ll also need to lease the equipment. You can choose machines with advance features (scales, document feeders) or a simple stamp machine that just prints postage stamps on your outgoing mail.
Features
Mailing machine equipment can be very simple (a stamp machine) or very complex- some machines fold, collate, stamp, and stack bulk mailings containing several different printed pages. If your business sends large bulk mailings, you could benefit from such a machine. Machines can also be fitted with equipment to ship packages- you’ll weigh the parcel and arrange for the pickup online in a few simple steps. No matter which features you need, you can take advantage of cost savings- with a postage meter, shipping costs can be calculated down to the penny for each mailing, so you’ll never overpay.
Costs and billing
Equipment leasing costs can range from less than $20 a month to hundreds for sophisticated equipment designed to handle large volume mailings. You’ll pay for the postage machine equipment (the meter) as one bill, and pay postal charges according to current rates. Some meters only allow you to “pre-pay” postage charges, while other companies allow you to “pay as you go,” where you receive a bill for both postage and meter use costs at the end of a specified period of time. Pay-as-you-go options usually carry additional charges or fees.
You’ll generally sign a lease contract that specifies your terms of use for the meter. Longer term lease contracts can be significantly less expensive- if you’re willing to commit to a longer period of time using the equipment, you’ll get a better monthly rate. You can also choose to purchase a maintenance or service contract that covers repairs or part replacements over the life of the machine.