A great way to start 2021 is to take a fresh look at your business finances. Many things changed in 2020, and if you are in the habit of spending on the same items year after year, it’s the perfect time to decide what is essential and what can go.
There are only a few ways to increase profits when you think about it in black and white terms. You can either raise revenues or cut costs. Let’s take a look at where we can potentially cut costs.
These expenses tend to be monthly or yearly, and we tend to just let them automatically renew time after time. But do we really need them? Take a look in your Dues and Subscriptions account to evaluate what you really need to stay informed, and cancel the rest.
If you are a member of an organization or two, what benefits are you getting from your investment? Does it raise revenue for you? Do you use everything the membership offers? If not, it might need to go on the chopping block.
Memberships are especially tricky if the organization provides a local meeting component as a benefit and your state or county has been shut down. There’s a tradeoff right now between supporting the organization so that it’s still there when we can freely meet again and being responsible about your own business costs.
With many employees working from home, the question has come up in many businesses about how much space they really need. As leases expire, consider how much space you really need. Some employees may love to work from home permanently, which frees up space.
Retail stores that have moved their business online may be able to cut back on customer-facing space but might need more inventory storage space. A restaurant that has successfully transitioned to pickup and delivery orders might be able to get by with a smaller seating area.
Are you paying for any technology applications that you are simply not using? This is a good place to look for cuts.
Some applications charge by number of contacts. Keeping your lists clean inside these apps will avoid increases and cut costs in some cases.
Do you really still need things like staplers and scissors on everyone’s desk? If your business is going paperless, you can save a lot on office supplies.
Do you need to spend money on printing, or can the printed item be delivered electronically?
While information can be delivered electronically, physical goods still need to be shipped. Make sure you have the best deal with your shipping vendors based on your volume. You may also need to consider building your shipping costs into the price of the product or add a shipping fee to the bill if you don’t already.
A great way to increase profits is to become more intentional about your marketing costs. Are you able to measure what’s working and what isn’t? Or are you doing the same thing year after year?
Marketing has changed so much, even in the last few years. It might be time to implement digital marketing methods, which can be more cost-effective than older, outdated methods.
Make sure employees manage their time effectively by providing the right training and supervision. This should help to reduce labor expenses.
Has your business changed? Do you need all those extra features you are paying for? Could you do without those extra lines? Would another phone plan save you money on long distance or international calls? Many telecommunication companies will often bargain with you or offer you a new deal just for checking in with them.
This gives you ten places to look to cut costs and correspondingly increase profits for 2021. If you need help reviewing your income statement, please reach out.
Year-end is the perfect time to reflect on accomplishments achieved since January. It’s also an important time to put things into perspective as we turn the page and start a new year.
What We Learned
With so much change in 2020, the opportunities to learn have been abundant. Take a moment and contemplate the following:
- What new skills did you learn this year that you have put to work in your business?
- What topics did you become wiser about?
- What situations have you learned to master?
If you set goals for 2020, which ones did you achieve? Because it was a volatile year, you may have achieved a lot of things that were not planned. Or you may have simply maintained status quo, which is an amazing accomplishment in its own right in 2020. Give yourself credit for all of that as well.
As we transition to 2021, set new goals to be achieved in your business and record the list so you can look back periodically to monitor your progress.
The circumstances of the pandemic present a constant challenge to keep things in perspective. Our emotions are exacerbated when we feel threatened, whether it’s about our health or our freedom. This creates the polarization we’ve seen in the news and current events.
Gain perspective by asking yourself these questions:
- What kind of business person do I want to be in 2021?
- How do I see my business in five years?
- What can my business contribute to its customers, employees, and other stakeholders?
Reflect, plan, and gain perspective as we usher in 2021. And have a Happy New Year!
Now, more than ever before, the act of listening is important. Not only is it important to listen to someone, but to effectively listen to them. Sure, we all know that in order to understand individuals, to connect with them and understand their wants and needs, we need to be alert, focused, and mindful. After all, the power of listening—effective listening—will help you get more information from clients, increase their trust and commitment in you, and reduce conflict and misunderstanding.
Below, we’ve included more information on the power of listening, and tips on how to be a better listener.
What It Means To Listen
We don’t need to give you a textbook definition of listening; you already know what it means. However, it is necessary to point out that the act of listening and actually comprehending what a person is saying can lead to strong, healthy, and thriving relationships—all very important qualities in any type of relationships, specifically a business one.
If you don’t believe us, think about the last time you were having a conversation with someone and felt as if you weren’t being heard. How did that make you feel? How did that affect the relationship? Did it make you feel valued?
According to Dr. Carl Rogers, a psychologist, active listening is a specific communication skill. Giving free and undivided attention to a speaker through active listening is the most effective way to achieve individual change and group development.
Isn’t that the ultimate goal? Whether the relationship is professional or personal, don’t you want to establish a solid, mutual ground of respect? It’s the only way for both parties to succeed.
If your listening skills are in need of a little tune up, don’t worry—we’ve got you covered! We’ve put together a list of different ways to help you become a better listener.
Tips On Becoming A Better Listener
If you truly want to become a better listener, then consider implementing these tips into your daily life.
Understand The Benefits
First, it’s imperative to understand that listening to someone is beneficial to both the person doing the talking and you. Nothing bad or negative comes from listening to another person speak, but the complete opposite. Remember, if you thoroughly listen to an individual, it’s more likely that same individual will listen to you when it becomes your turn to speak. The partnership the two of you are hoping to grow can only be successful with mutual listening.
Make Eye Contact
Next, when someone is speaking to you, always make eye contact. This tactic not only shows respect, but it will also help you focus on the other person’s words, what he or she is saying and how they feel.
When sharing a conversation with someone, make sure there are no distractions. Obviously, this means you need to put down your phone and give the speaker your full attention. Don’t worry about what’s going on around you; don’t think about your next meeting or what you plan to have for lunch. Listen, engage, and show the person talking that you care.
One of the best ways to show the speaker that you are really listening to them, is to ask them questions. Make sure you fully understand what they’re saying by verifying their wants, needs, and/or concerns with specific questions.
Remember, nothing bad comes from listening—only good. The next time someone is speaking, consider opening up your eyes, ears, and mind just a little bit more. In doing so, you will gain the full benefits of the power of listening.
How happy are you with your financial situation right now? In other words, do you feel personal financial pleasure or pain when it comes to your financial standing?
That is what the Personal Financial Satisfaction Index strives to measure for the typical American.
The PFSi is a quarterly economic indicator created by the American Institute of CPAs. This specific economic indicator weighs a variety of economic factors to calculate the financial standing of a typical American. These financial standings are only computed at a high level.
The main agenda of the PFSi is to calculate the difference between two component subindexes: the Personal Financial Pleasure Index and the Personal Financial Pain Index. These two subindexes are each created of four, equally weighted proprietary and public factors, which ultimately measure the growth of assets and opportunities in the case of the Pleasure Index, as well as the erosion of assets and opportunities in the case of the Pain Index.
In other words, positive scores of the PFSi indicate that Americans are feeling personal financial pleasure. Negative scores, obviously, indicate that Americans are feeling personal financial pain. It might sound like a subjective emotional measure, but it’s not at all; it’s based on government statistics as well as proprietary AICPA data.
The PFSi has been mostly increasing from the third quarter of 2011 to the fourth quarter of 2019. Since then it has dropped dramatically. With the current pandemic still in place, unemployment and other economic factors have contributed to the drop in the index. You can use the score as a measure against your own financial security and for planning purposes.
Read more about the index here: https://www.aicpa.org/interestareas/personalfinancialplanning/community/pfsi.html
Or reach out to us and we’ll be happy to answer any questions.
It goes without saying that 2020 has been quite the year—and it’s not even over yet! Of course, any one of us could easily come up with a long list of things to be ungrateful for, a negative list of every bad occurrence that has taken place since March due to the Coronavirus pandemic. In a sense, being sad or negative or depressed is simple. Being grateful is what’s really difficult, but we want to help you achieve the feat.
Below, we’ve put together different techniques to help you see that there are many things to be grateful for, both in our business and personal lives. This is a great time of year – just before the U.S. holiday of Thanksgiving – to stop and practice gratitude.
What Are You Grateful For?
The act of being grateful can lead to experiencing positive emotions. As a matter of fact, if you are experiencing negative emotions and don’t want to, the fastest way to “reset” your physiology is to start thinking of things you are grateful for.
Here are some ideas to help get you started:
Are you healthy? Are you able to see, to smell, to breathe, to walk? Health comes in many various forms; the idea of being healthy can mean something entirely different to two people. Consider what being healthy means to you, and then, if you do think you have your health, try and be grateful for it.
One good thing about the pandemic is that most people are eating more healthful meals and less fast food, and they are feeling better with more energy. People are also watching their weight and even losing excess pounds, especially after some of the initial reports that overweight people were having a harder time fighting Covid-19 than slimmer people.
Friends and Family
Are you surrounded by loved ones? Now, more than ever before, it’s important to be grateful for people who are in your life. You may be facing hardships but think how much more difficult times would be if you were dealing with them by yourself. Be grateful for having someone in your life that you can lean on.
Work and Business
So many people have lost their jobs, their income, their sense of security. If you still have work or your business to keep you busy, focused, and earning a steady paycheck, be grateful. It’s a wonderful exercise to express your gratitude to your clients or boss by writing them a thank you note or leaving them a review on Google My Business, Yelp, their Facebook business page, or their LinkedIn profile as a recommendation.
Similarly, it’s the perfect time of year to ask your clients or boss to leave you a review on one of these digital assets.
Never Stop Being Grateful
Of course, there are plenty of other things to be grateful for in this world; everyone’s list will look different. Perhaps you’re grateful for a pet or something you’ve achieved. Maybe the fact that you have a special skillset or the ability to be patient and understanding during trying times gives you reason to smile.
That’s the thing about being grateful: there is nothing too big or too small to be grateful for; no right or wrong answer. And while it may feel more difficult this year compared to others, you can always find something when you look hard enough.