As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others.

When to Say Thank You

There are many opportunities in business to say thank you:

• When a client or associate sends you a referral that results in business
• When an employee goes out of their way to fix a problem or make a customer happy
• When a customer makes a large purchase
• When a vendor over-delivers
• When someone sends a gift
• After a speaking engagement or an event when someone has hosted you
• When someone provides advice that has been helpful, whether face to face or in a book or article
• When someone does a favor or something nice that you’d like to reward

Keeping thank-you notes top of mind will help you think of more opportunities to use them.

What to Say in Your Thank-You Note

You don’t have to be a professional writer to make a thank you note sound good. Just write from the heart. Let the recipient know what you are thanking them for. Express a detail about the item or activity involved. And then thank them again.

If you are unsure about what to say, write a draft first that you can edit. Then transfer the version that you are happy with to your stationery. It’s far better to hand-write your thank-you note than to use a computer-generated one.

Personalized stationery for thank-you notes is definitely recommended. They add a formal and professional touch to your thank-you note, enriching the experience for the recipient.

Sending gift baskets can be a good idea, but sending a hand-written thank-you note alone can be the most powerful action you can take, especially if it is not expected.

While many businesses send holiday cards each year, thank-you notes can be far more powerful. If your budget is limited, you might want to replace your holiday mailing with thank-you notes instead.

One more thing to consider NOT doing is making your thank-you note into an advertising event for your company. If you want to send promotional items such as t-shirts, mugs, or other items, do NOT do it with your thank-you card. Sending thank-you notes is not a marketing event; it’s a time for gratitude. Sending clients promotional items can be very welcome; just don’t do it at the same time.

Helping others feel gratitude is the fastest way to experience happiness. Sending thank-you notes is not only good business, it’s good for our health and wellness, too.

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Here are several ways to control or reduce labor costs in your business.

1. Encourage employee retention.

If well-trained employees leave, you must replace them with inexperienced employees that need training, resulting in a temporary loss of productivity. Some turnover can be good, but if it’s too high, it can result in increased labor costs.

2. Automate tasks.

Save labor by automating any tasks that can be automated that employees are still performing. While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on investment.

3. Streamline processes.

Are you operating your business most efficiently? Or are employees still doing tasks that are outdated or that have lost meaning over time?

One place to look is the interface between departments. Is your sales team duplicating marketing’s efforts?  Is customer service answering the same question without communicating to operations how it should be permanently fixed?  Enhancing communications among employees throughout the company can cut down on labor costs.

4. Train employees.

Make sure employees are doing what they should be doing by training them. If they are using systems and other tools, make sure they have completed courses in those systems and tools.

5. Provide the right tools for the job.

Do employees have the tools they need to do the job well? Be sure you’re providing them with the latest version of Microsoft Excel® versus an abacus, as an extreme example.

6. Cross-train employees.

If an employee is out sick, does a customer’s job sit around until they are back? Check to see if your employees can easily pick up another’s work in the case one employee is out.

7. Optimize employee schedules.

In many industries such as restaurant and retail, employee scheduling can make the difference between profit and loss. Software can help you determine how many employees you need and at what time. Ensuring employees know when to come in and what to focus on when they do will go a long way toward productivity as well.

In some cases, a shorter workweek is a possibility that can drive lower labor costs.

8. Outsource.

Outsourcing may be cheaper than using employees on certain tasks, especially if you have tasks that require specialized knowledge or skills, or you might not need a full-time person. Outsourcing can also help you determine how long a task will take so you can plan better if you do decide to take the activity in house.

9. Review compensation.

Compare your company’s current salaries to the going market rate for salaries in your industry.  Are your salaries in line? Adjust accordingly for future hires.

You can also consider different pay structures, such as commission-based, to better match performance to labor costs. Bonuses paid out in lieu of annual raises allows you to better manage accumulated pay raises in the case of long-term employees.

10. Review benefits.

Employees love perks but they can be costly. If necessary, this is an area where expenses can be cut to reduce costs. This can include reviewing time off policies, employer’s percentage share of 401(k) plan contributions, and additional health care coverages such as dental and vision.

Hiring part-time employees that are ineligible for benefits can also be a way to cut labor costs.

11. Cut overtime pay.

If overtime pay is so high that added headcount should be considered, then it’s too high.  On the other hand, some overtime pay is fine if it avoids hiring a headcount you don’t fully need.

12. Incentivize workers.

Try increasing productivity and results with incentives built into your compensation plan.

13. Provide remote work options.

Studies show remote workers are more productive. Plus, overhead expenses such as rent, furniture, and utilities will plummet, saving expenses overall.

14. Hire smart in the first place.

The saying is “hire slow, fire fast.” Finding the right worker for your business is pretty much an art form. Interview, test, check background and references, and put employees on a trial basis to be sure you have the best workers.

15. Maintain a safe working environment.

Follow all of the regulatory requirements, but follow common sense as well to ensure you have a safe workplace for employees.

16. Understand the accounting side of labor costs.

If you pay an employee $15 per hour, understand that your labor cost is far more than $15. Not included in that $15 is:

• Employer’s share of payroll taxes (Social Security and Medicare)
• Vacation and time off
• Paid holidays
• Workers compensation insurance
• Unemployment insurance (federal and state)
• Health care
• 401(k) matches
• Company picnics and events
• The cost of all other employee perks

The cost to keep an employee includes even more than labor costs and should include allocations for these expenses:

• Computer equipment and software applications
• Rent, utilities, furniture, parking spaces, building repair
• Employer-paid meals, snacks, and coffee
• Training
• Events and travel
• Meeting time and expenses (this deserves to be listed separately)

If you’d like us to help you calculate your labor costs per employee hour, please reach out.

Employees make your business possible, but to maintain a business profit, labor costs must be kept in line. Follow these ideas to keep your team productive and your labor costs in shape.

Time is our most precious personal resource; once we’ve spent it, we’ll never get it back. As busy entrepreneurs, we seem to have less time than anyone else, so it just makes sense to look for ways to use our time wisely. Here is one technique that has worked for many.

The Four D’s

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1. Do it.
2. Delegate it.
3. Delay it.
4. Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best.

Do It

The first option is simply to do the task yourself.  Get it done, checked off, and out of the way.  This is often the best option if it’s urgent, important, or you are the only one with the experience and training to do it.

It might sound counter-intuitive at first, but doing a task might not be the best option. Let’s look at the other three options before we decide.

Delegate It

If your to-do list is full of simple, routine actions, then delegating is a strong choice. Delegating is also a great choice for tasks that are beyond your skill set and that would take too much learning-curve time away from your core work. If you don’t have time to do everything yourself, then getting help is a smart alternative to doing it yourself.

Getting help doesn’t mean you have to hire a full-time employee. You can get help in a multitude of ways:

• Engage a company to do a task. From walking dogs to managing Google Ad campaigns to handling your bookkeeping and taxes, there are companies like ours that would be delighted to take over your task for you.
• Automation is a form of delegation. Can software do what you are doing?
• Find someone on Fiverr.com or UpWork. You can hire someone for a five-minute task or a 5-day task. Find them on any website that lists freelancers for hire.
• Plenty of people are looking for part-time jobs, just in case you don’t have enough work for a full-time person.

If you can write instructions about how to perform the task, you can delegate it. And if you’re worried about losing control or quality, simply add milestones where you check the person’s work. Initially, it might not be faster, but in the long term, it will pay off.

Delay It

If a task is not urgent or important, delaying it might be the right option. The problem with this option is that you have to handle the task at least twice: once when reviewing it and deciding whether to do it, and again when you finally decide to do it.  If you keep deciding to delay it, you’ve handled it more than twice. Not only can this take up precious time, it can be a drain on your energy as you see the incomplete task on your to-do list for a long time.

However, there are times when delaying a task is best:

• Delay if it’s not urgent and you have other urgent items to attend to.
• Delay if it’s not important.
• Delay to prioritize other, more profitable tasks first.
• Delay when the task is best done in batches. Here’s an example: Rather than answer each email as it comes in, think about blocking out three times a day where you check and clear your email. You can apply this time-batching concept to just about everything to gain efficiency: posting on social media (write and schedule a month’s worth in advance), returning phone calls, attending meetings (book them all on one day and keep other days clear), and running errands (delay until you have three to four errands, then do them all in one run.

Be careful of delaying a task over and over again.  Something else may be going on with your mindset:

• The task may be uncomfortable for you (find someone that loves to do what you don’t and delegate), or
• How to get started is ambiguous (get training or find someone experienced to shorten your learning curve).

Delete It

Some tasks should never have been added to your to-do-list in the first place. When there is no return on investment for a task, perhaps the best choice is to delete it.

Take a look at some of the things you do out of habit. Does it still make sense to do that task, or is it simply done because it was always done that way?

Do, Delegate, Delay, Delete

Try the four-D time management trick for yourself to get an instant boost in efficiency and productivity.

The 2021 holiday sales season will give businesses a chance to continue their online migration from 2020 trends, with opportunities for more refinement and improvements.  The key is to bring as much as possible online and integrate all of your customer touch points into an omnichannel of positive experiences.

Let’s take a look at some trends in retail that we can apply to many other industries. These trends will strengthen our businesses and position us well for the future.

Strong E-Commerce Presence

As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence, especially their e-commerce presence.

Many retail establishments benefit from a complete ecommerce solution, including a storefront, shopping cart, online payment process, and automated fulfillment. They can expand their online effectiveness with these features:

• Enable chat features between customers and store clerks to simulate the conversation the customer might experience in the physical store
• For clothing, post detailed sizing charts, imitate the dressing room mirror with try-on automation, and use photos of models in all shapes and sizes
• Create how-to videos to show customers ways to effectively use the product
• Expand photography so customers can see all angles of the product as well as how it can be used
• Display and sort user reviews to help customers decide
• Implement clear navigation and search options so customers can find what they want. Today, many customers research online, then visit the physical location to finalize their transaction.

Expanding your business’s e-commerce presence doesn’t just apply to retail. For example, businesses in the services space have implemented appointment-setting and payment processing. Real estate agents have enhanced virtual home tours. Many businesses with physical goods and documents have beefed up delivery options and implemented curbside pickup.

Each business has a unique sales cycle that a customer goes through when purchasing goods and services. The question for business owners to ask is how they can bring most of that experience online.

Mobile

The vast majority of transactions are now occurring on mobile devices. If your business’s mobile presence is not optimal, then you’ll want to make that a priority this year to catch up with your competitors.

Social

More and more consumers are using social media channels – Instagram, YouTube, TikTok, Snapchat, LinkedIn, Pinterest, Twitter, Clubhouse, and Facebook — to discover and purchase items that delight them. Wise business owners will invest more budget into attracting customers from this channel.

Holiday Seasons

With the move to online shopping, the holiday season has been extended from just one day or one weekend to entire months. Consumers are shopping earlier and all year long. Retailers and other businesses can benefit by always having some kind of sale or attraction going on. Here are the key holidays for the fourth quarter:

• Columbus Day
• Halloween, the second most profitable holiday (Christmas is first)
• Veterans Day
• Thanksgiving Day
• Black Friday
• Small Business Saturday
• Hanukkah
• Cyber Monday
• Christmas Eve
• Christmas Day
• Boxing Day
• Kwanzaa
• New Year’s Eve

How does your business fare when it comes to a fully online experience? Use these trends to boost sales growth in 2021 and beyond.

If you grant credit to customers or take recurring credit card payments, the unexpected can happen: a customer fails to pay on time, the credit card expires, or the check bounces. What can a business owner do to spend as little time as possible on these items but get the cash collected?  Plenty.  Here are our ideas:

Re-examine your credit policy

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk. Perhaps you can request final payment right before you deliver the final product.  Perhaps you can convert credit terms to a layaway situation, like they use in retail.

The best way to speed up collections is to change your payment terms if at all possible.

Be proactive

If the client is late with a payment, respond quickly.  Send them proactive reminders. Give them a call just before the payment is due if you have this luxury.

If the customer pays by credit card, monitor credit card expiration dates, and send reminders to update the card before it expires.

Make it easy and clear on your website support section how a customer can update their credit card number on file at any time. Automating this process will save you a ton of time.

Payment failures and disputes

It’s inevitable that you will experience customers whose credit card payments, ACH withdrawals, and checks fail or bounce. As a business owner, you need to have solid procedures for you or your employees to process these exceptions.

When a credit card payment fails, make sure your shopping cart, merchant account, or gateway processor notifies you of the failure. Contact the customer right away to correct the situation. The same is true of bounced checks or failed ACH deposits. Assess any extra fees and flag the customer account if you want to place any future payment or credit restrictions on them.

You may also have customers that report disputes to their credit card company. Respond timely to these transactions as there is always a tight deadline, and make sure you have all of the documentation you need at the time of sale if this comes up.

Develop solid collections processes

If the payment is late, start your collections routine.  Send out friendly reminders at first; then get progressively aggressive as the payment grows later and later.

Follow-up steps are very important. Make sure your customer is getting your notifications, and give them a call before you have to take legal steps with them.

Finally, if necessary, turn the payment over to a collections agency who can impact the customer’s credit report and possibly collect your money.

We hope you do not have too much of this activity in your business. But if you do, being proactive is a great way to reduce it. Check to see if you have all the processes described above in place to handle collections in your business so that your cash continues to flow.