6 Tips for Start-Ups in 10 minutes

Solutions for the Working Capital Financing Puzzle

Solutions for the Working Capital Financing Puzzle

The practical rationale for using a puzzle analogy in this article is to help describe an otherwise complex working capital and commercial financing situation in a more understandable way. The current commercial loan stakes for commercial borrowers could not be higher because their business survival might be hanging in the balance, and the comparison of small business financing to a puzzle is not meant to diminish the critical importance of success by business owners when they encounter difficulties with commercial lenders.

In using a puzzle comparison, this analogy provides an opportunity to evaluate the commercial loans puzzle (a challenging commercial lending climate) as something that tests the ingenuity of small businesses to solve. An increasing number of commercial borrowers are comparing what they are finding to a puzzle with pieces scattered everywhere when reviewing the current small business finance environment. A reasonable reflection of the underlying problems that cannot be ignored by a prudent business borrower is provided by the ongoing descriptions of commercial financing in terms of solving a puzzle. Such an analogy no doubt also reflects the growing confusion represented in small business owner interactions with their current bank concerning available business financing options.

For some commercial borrowers, recent experiences with their business banker probably resemble a confusing small business finance puzzle in which the level of difficulty keeps changing. Banks have recently been taking over two months for a working capital financing process that should realistically be completed in under one month, and even when taking this excessive period of time it has become a common experience for many banks to fail in providing the expected business capital without providing any warning that funding has been delayed or disapproved. Suggestions that commercial lenders have misrepresented what is required to finalize commercial loans are emerging in too many reports for borrowers to ignore.

Most business financing has been more complicated than borrowers realize for a number of years. Primarily because the eventual results have changed so drastically, recent events have made these complexities more obvious. It is situations like those noted above that cause business borrowers to feel like some of the required puzzle pieces have been removed from the board. Because fewer banks are now providing small business financing, that is in effect exactly what has happened. A business owner is indeed likely to feel as if the commercial finance puzzle pieces have disappeared when this happens with the bank that a business has previously relied upon for their small business finance needs.

By continuing the puzzle analogy, there are two practical options for commercial borrowers to analyze and consider. First, in an approach which can lead to a small business finance puzzle which will involve "fewer pieces" if executed successfully, business owners should assess the potential for a reduction in their commercial debt requirements. Second, by looking for alternative commercial lending sources, small businesses should attempt to find the "missing pieces". As with any complex business financing situation, both of these (as well as any other realistic commercial loan choices) should be thoroughly reviewed with the help of an experienced expert.

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Stephen Bush and AEX Commercial Financing Group provide help for small business financing and working capital management:

http://aexllc.com

How To Develop Your Staff Into A champion Team In Your Small-Medium Business.

How To Develop Your Staff Into A champion Team In Your   
Small-Medium Business.

Summary. “A champion team will always beat a team of champions.” That statement’s often heard about sports teams. But it applies in the workplace too. Manager sometimes concern themselves with building a team of champions. They should concentrate on building a champion team. These ideas may help.

The Team As the Basic Workplace Unit. Organizations are comprised of individuals. We spend lots of time and money trying to get those individuals to perform well. That’s desirable. But there’s another perspective. Each individual can perform well. But if they can’t work effectively with each other, your business will suffer. The basic human performance unit of the workplace isn’t the individual. It’s the team. You don’t have to build teams. You have to develop those which already exist.

What A Team Is At Work. In the workplace a team is characterised by three simple characteristics. • If one person in the team doesn’t do their job well, someone else in the team can’t do theirs well either. • Individuals depend on the help of other team members to achieve their work goals. • The goals of the overall team are more important than the goals of the individual members. When I use the word “team” that’s what I mean.

Misleading Titles. Unfortunately the use of the word “team” has been devalued in the workplace in recent years. Some managers and consultants use the word to describe any old work group, whether or not the members are genuinely interdependent. It’s as if by saying “team” you create “teamwork”. There’s a lot more involved than trendy work play.

Take care. Merely because we call a work group a team, e.g. “sales team”, doesn’t mean it’s effective. It may not even be accurate. We use the expression "sales team" to include support staff. But some salespeople don’t treat support staff as equals.

Multiple Team Membership. Even in very small businesses most employees are members of two or more teams. Sales support staff, for instance, may also be members of the “admin team”. Clerical staff are in the “admin team” but could also be part of the “warehouse team” and the “accounts team”.

Corporate Goals and Team Goals. Clearly defined corporate goals are essential if you want your company to be successful. They’re also necessary so that you can set effective team goals. Individual goals flow from team goals. Clear corporate goals are only the beginning. You must convey them, very clearly, to both your teams and the individual members. You cannot expect either individuals or teams to drive themselves down a road that has neither a clear destination or signposts.

New Mindsets. You need a new mindset to create effective team performance. Managers need to recognise the importance of teams in achieving corporate goals and in developing competent performance among members. Include effective team performance when setting up reward systems. Individuals need to understand that being a “star” performer isn’t as important as being an effective contributor to a “star team”.

Relevance Of Relationships. Work isn’t a “love in”. Unfortunately many attempts to develop “teamwork” are concerned with building better interpersonal relationships between team members. I’ve experienced many examples where close interpersonal bonds interfered with effective team performance. In these cases, individuals were not willing to risk upsetting a personal relationship for the good of the overall team. When individuals commit to team goals they’ll find ways to minimise their differences. And all members, even those who don’t “get on well” will experience the satisfaction of achieving the goals.

Conclusion. Start developing your workplace teams by identifying them clearly. Don't forget that many employees will be members of more than one team. Set goals and performance standards for your teams. Develop systems that enhance performance both within teams and between teams. And review your rewards and incentives to ensure they include team performance. But if you don’t have clearly defined corporate goals, sort them out first.

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Leon Noone helps managers in small-medium business to improve on-job staff performance without training courses. Some say his ideas are too unconventional. Find out for yourself by reading his free Special Report “49 Practical Tips For Better People Management In Small-Medium Business”. Simply visit http://www.leons7secrets.com and download your free copy now.

Top 5 Tips for Your Workplace Holiday Party

I found this article by Karen Burns, " 20 Tips for Your Workplace Holiday Non-Party". The article was right on point with the 20 tips of Do's and Don'ts. Karen explains that "A workplace holiday party is not really a party.

In fact, it's downright misleading to even call it a "party." It's actually a "business event." As in, "work." Therefore, the way to successfully navigate your workplace holiday party is to treat it like work. Confuse it for a night out with old college buddies, your siblings, or even the members of your book club, and you have created a recipe for career disaster."

As I looked at the top 20, my top 5 from the list are

• Do act as if you're being observed. Because you are.

• Don't get drunk. Not even tipsy. If photos are being taken, put down your drink first.

• Don't flirt. With anyone.

• Don't make a pig of yourself at the food buffet. You can eat later if you're still hungry.

• Don't talk politics or religion, tell dirty jokes, or use foul language.

As noted by Karen, the number 1 "Do" is absolutely correct as everyone is looking at everyone just to see what they will do and say. The remaining 4 are Don'ts---we all know that generally alcohol may cause us to lose our inhibition which could ultimately lead to the next three: flirting, making a pig of yourself and saying something that may be inappropriate. So be on the safe side, be yourself, if you are usually wild and crazy at work, then come down 1 notch on the other hand if you are normally quiet and standoff, then come up 1 notch----and always remember the eyes are watching. At all cost, avoid being talked about at the water cooler or being the butt of the daily email joke.

Before You Punch Your Boss or Coworker (read this article)

In this uncertain economy, there have been an increase in job related tensions between co-worker, vendors, customers, supervisors and managers, and I found this article by Dianna Booher

"Resolving Conflict Without Punching Someone Out"

 

http://www.booher.com/mediapress/articles/resolving-conflict.rtf.

The article is well written and informative. Dianne explains that conflicts "can result from excellent work or poor work, from good intentions or evil intentions, from appropriate behavior or inappropriate behavior.

When the inevitable conflict surfaces, we need to deal with it so that it doesn't drain our energy, infect our whole life, and sabotage our effectiveness."

A three step process could be used to resolve conflicts

• Deal with conflict promptly

• Determine the nature of the conflict

• Determine the method of solving


Deal with conflict promptly

Dianne noted that conflicts should be dealt with promptly as regardless of the size or scope of the problem, the first step in conflict management is simply to deal with it. Certainly the most extensive and pressing confrontations cry loudest for our attention, but many a mountain is merely the consequence of a molehill left unattended. They all must be dealt with.

Determine the nature of the conflict

For the most part, conflicts can be divided into five categories. Identify them correctly and you heal the wound. Misdiagnose them and you allow the disease to spread.

• Conflicts over personalities

• Conflicts over goals

• Conflicts over values

• Conflicts over circumstances

• Conflicts over facts


Determine the method of solving

Accommodation is used when you yield to the other person's plans. This is a good strategy when the issue is important to them and relatively unimportant to you, when you cannot win or are wrong, when you want to bank a favor for later, or when harmony is more important than the issue.

Compromise is the process of melding both party's desires into an equally agreeable alternative. Use this method when the issue is important to both of you but not worth fighting to the bitter end, when the situation is temporary and will lead to a quick fix, or when you don't have time to haggle but need to meet some of your goals.

Overpowering the other person to get your way is another option. Though sometimes seen as aggressive and domineering, this strategy can be effective and appropriate. This strategy is best used when the situation is an emergency and you have to act quickly. You may have to play the part of statesman and enforce unpopular principles or take unpopular actions for a higher good or goal.

Collaboration - joining forces with the other and working things out - is a final strategy. Make the effort and take the time to collaborate when the relationship is long-term and the situation will be recurring, when both goals are too important to compromise, or when you need buy-in from both people on the outcome.

The method of solving conflicts that works best for me are Collaborating and Compromising to attempt to obtain a win-win solution that all parties can agree too. When all parties feel that their thoughts, ideas and solutions were heard and considered, I think this allows everyone to feel validated, supported and apart of the process/solution. Although we may make Accommodations to make the final decision work, but no one walks away with their voice not being heard. I rarely had to use the Overpowering method to solve a conflict, but would if this appears to be the only option to move the process along.

Dianne shares that creating a culture of conflict awareness and resolution is essential to effective business communications and productivity. Knowing how to identify and solve problems will determine whether you're an effective manager of inevitable conflict or one who leaves behind a trail of muddled opportunities and broken relationships.

When conflict arrives "we need to deal with it so that it doesn't drain our energy, infect our whole life, and sabotage our effectiveness" Life is too short to allow conflict to control our lives.

So join me in getting fit and healthy by changing our mind, body and spirit one day at a time.