10 Tips to Develop Effective Workplace Communication Skills

boss and employeeHas your boss ever treated you unfairly or blamed you for a failure that was beyond your control? Recently, a friend came to me in distress about a critical hand-written memo that he and his colleagues had received from their superior, the manager of a national retail chain store. The chain, formerly a Wall Street darling, had fallen from favor with the failure of the company to renew an annual contract with one of their larger customers. As a result, the stock price had dropped by a third, cash flow had decreased, layoffs were anticipated, and morale was in the dumps. Every employee felt the pressure.

The young assistant, vacillating between resentment and hopelessness, didn’t know how to respond to the three-page memo which listed failure after failure of tasks and expectations that had not been met by the group. The memo concluded with a threat that “things had to change or else,” and that he, the manager, no longer cared about the individuals due to their shortcomings. My friend, torn between quitting for what he believed to be an unfair assessment or staying when further advancement might be delayed or impossible, asked me, “What should I do? Quit or stay there hoping I will not be fired?”

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5 Money Savings Tips for First-time Entrepreneurs

This article first appeared on the shopify.com blog on July 30, 2013.

Despite the rise of the lean startup, crowdfunding sites and inexpensive software, there are still many business that never get off the ground simply because they lack sufficient capital.

Saving money and generating capital to start a business is tough and we’ve all heard stories about famous entrepreneurs working out of their bedrooms and barely scraping by when they were just getting started.

That’s why being frugal and spending money prudently from the outset makes considerable sense for the following reasons:

  • Rational spending inculcates a culture of disciplined thrift and investment. Examining each expense to ensure the greatest possible value for each dollar maximizes and justifies your entrepreneurial capital.
  • Few companies are able to rely exclusively on internally generated funds (revenues and/or profits alone) during the initial stages to build a base for sustainable long-term growth. Investment in the form of loans or equity is invariably required, a process that inevitably dilutes the founder’s ownership and control.
  • Extending the period between start-up and the need for additional capital infusions to later stages of the growth curve tends to expand the pool of competing entities which may invest, and is generally reflected in a lower cost of capital, either in the form of lower interest rates or higher entrepreneurial retained equity.
  • Delaying the need for outside capital until proof of concept, quantification of potential revenues, and/or achieving some level of profitability improves your negotiating position with potential investors. Simply stated, reducing expense maximizes cash flow, which reduces the level of revenues necessary to achieve break even, and increases profits.

Founders of companies that survive the start-up phase are likely to find their roles, authority, and return reduced as control of their companies is transferred to those who subsequently finance later stages of the company’s growth. The reality is that postponing the need for outside capital until strategically necessary is always good advice.

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Keys to Effectively Managing Subcontractors

managing subcontractorsThis article first appeared on the Beyond.com Careernetwork™ website on July 30, 2013.

From time to time, many workers use or contract “substitutes” to perform tasks that they cannot or prefer to not do for a variety of reasons. These subcontractors are ubiquitous, and can be found in the home, the workplace, even schools. The majority of subcontracting arrangements are casual, simple verbal understandings where duties, terms of agreement, and outcomes are easily understood and accepted by both parties for jobs such as yard maintenance, housecleaning, or babysitting.

Some arrangements are more formal and complex, often involving a number of people performing a service over a period that may extend for weeks, months, or even years, and have detailed expectations about work procedures, the final deliverables, and payment for the services being performed.

Whether you are contracting with a local arborist to trim your trees, or an executive hiring a firm to deliver a multifaceted software system to run your business, knowing how to manage a contractor/subcontractor relationship is essential if you want a satisfactory outcome.

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6 Things You Need to Know About Raising Capital

Coin stacksThis article appeared first in the Huffington Post Small Business Blog on June 23, 2013.
“Money makes the world go around, of that we can be sure,” sang Alan Cummings in the popular stage play “Cabaret.” Certainly, the half-million Americans starting new businesses in 2012 have reason to suspect the truth of those lyrics since raising capital, whether to fund a new technological marvel or open a franchised restaurant, is one of the most challenging aspects of starting a new business.

Unfortunately, the need for capital never ends. This means that understanding how to find and shake the “money tree” is critical. And before you begin your search, there are a number of crucial questions you must ask yourself – and answer.

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