New To Business?
New to business? Don’t lose your nerve!
I have been helping out one of my best friends with her new business venture in the UK. It is exciting, a bit out of the box and loaded with potential. We had a long chat via Skype about a job offer she had received. It was essentially what her business offered but she would be committed full time for at least six months. The question – what should she do?
Give up the chance to earn a full time wage for six months or hold her nerve and continue with the business?
She held her nerve…bravely…. Instead of being a full time employee she convinced them they should hire her company instead! No need to put all marketing efforts on hold, no need to turn away potential new clients, no need to stop doing all of the things she has been doing in the past six months to get her to where she is.
Small business is a big old adventure loaded with potential wrong turns and bad decisions everywhere. You will make some (maybe even lots) and you will want to give up. I know this because I have been there. Possibly the worst decision you can make is losing your nerve too quickly. You know what it is like, the bank account is empty, you no longer buy the fancy toilet paper, and your social life has all but disappeared. You find yourself taking a quick peek at Seek, just to see what kind of jobs are going… it’s a slippery slope from here my friends.
If you are in your first year or two of business I want you to print this blog out and stick it above your desk as a reminder to not lose your nerve until you have answered the questions below;
Question 1
Do you honestly do everything possible every single day to make your business?
Question 2
Do people know you exist? This does not mean googling your business name!
Question 3
Have you asked a professional (oh I happen to know some business coaches…) for advice?
Question 4
Do you ask someone every single day to buy your product or service?
Question 5
Do you honestly want this to work?
If you answered no to the above then you just need a good old fashion kick up the arse with the exception of question 5.
If you answered no to question 5 then it is best you nick off and get a job fast!
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
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Starting A Small Business? Read this First!
What do you mean you are leaving a full-time job to go into business? “ARE YOU NUTS?” If only I had a dollar for every time I had heard those inspiring bits of wisdom and encouragement, I would be at least a hundred bucks richer!
So why did I leave my employer, hand back my nice new fully maintained company car, fuel card, expense account, laptop, mobile phone, regular guaranteed income and sanity behind? Possibly people were not wrong when they suggested I was nuts?
The actual reason was that I could see the downturn of the economy and it’s impact on the company that employed me slowly unfolding. Those above were feeling the pressure. In turn, their stress was being unleashed on those below. Cuts were being made everywhere; staff were not being replaced and those who remained looked as disenchanted as I felt. More than 50% of my pay was made from bonuses. As those around me starting losing confidence and motivation they stopped performing. I could see that it would mark the end of bonuses for everyone, not just those under performing. Micromanagement kicked into full gear, all of a sudden I had to explain my every move. For someone who actually enjoys work and loves achieving goals, this was nothing short of degrading.
What was I really leaving behind? Stability? Nope… nothing about my position felt stable. A regular income? Yes, but not the income I agreed to when I signed the contracts. I knew that no amount of time and effort invested would allow that income to increase anytime soon. What a frustrating place to be stuck in. Do I miss my company car now? Not really. Do I miss my fuel card? Heck YES! I loved that little bit of plastic. Would I trade any of it for being self-employed? Absolutely not!
So you may be thinking that this is a blatant plug to join Small Fish Business Coaching as a Business Coach, it actually isn’t! It is a plug for small business. If companies were thriving and bonuses were flourishing I possibly would not have made this choice. For me it is about (not to be cheesy) “being the master of my own destiny”. In this economy nothing is certain, being employed for me was no less risky than being self-employed. How stable do you feel right now?
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
Jon Dale 25-Jan-2012 01:45 PM
Me too, Melanie. I started Small Fish for many of the same reasons as you joined - disenchanted with corporate life and the lack of integrity, frustrated with my ability to earn of grow there and a desire to be more connected with my community instead
of running of to the city and a different world then running back (in rush hour) to my real life. I'm not sorry I did, though the price has been heavy, not least in uncertainty (of income, mostly). Business coaching is not for the faint hearted, either, is
it? For the brave only, just like any small business. If you're in business (you probably are if we send this to you), then I reckon you're brave (like me and Melanie).
Melanie Miller 25-Jan-2012 04:50 PM
Oh I have a plug for Franchises - at least we went through it together Jon! Safety in numbers! No going back, I love my self employed status too much.
Is it time to start a new Aussie Christmas Tradition?
One of my oldest friends now lives in America. I noticed this post on her Facebook page. I thought it was really interesting and considering that most of the people reading this are small business owners, I hope you will find it interesting too.
After you have read it, think about what pledge you will make to yourself this year? I have started the dreaded Christmas shopping – already I have handmade soaps and lotions from a local market where I got to ask how the product was made, what got the owners started and what they enjoyed about their business. I have also purchased hand made dresses for the little ladies in my life and am now looking for some wooden boys toys. Friends will get homemade biscuits (not made from my home…I have not yet mastered the oven) and a nice bottle of Aussie wine!
What will you do differently this year?
Christmas 2011 -- Birth of a New Tradition
As the holidays approach, the giant Asian factories are kicking into high
gear to provide Americans with monstrous piles of cheaply produced goods --
merchandise that has been produced at the expense of American labor.
This
year will be different. This year Americans will give the gift of genuine
concern for other Americans. There is no longer an excuse that, at gift
giving time, nothing can be found that is produced by American hands. Yes
there is!
It's time to think outside the box, people. Who says a gift needs to fit in
a shirt box, wrapped in Chinese produced wrapping paper?
Everyone -- yes EVERYONE gets their hair cut. How about gift certificates
from your local American hair salon or barber?
Gym membership? It's appropriate for all ages who are thinking about some
health improvement.
Who wouldn't appreciate getting their car detailed? Small, American owned
detail shops and car washes would love to sell you a gift certificate or a
book of gift certificates.
Are you one of those extravagant givers who think nothing of plonking down
the Benjamines on a Chinese made flat-screen? Perhaps that grateful gift
receiver would like his driveway sealed, or lawn mowed for the summer, or
driveway plowed all winter, or games at the local golf course.
There are a bazillion owner-run restaurants -- all offering gift
certificates. And, if your intended isn't the fancy eatery sort, what about
a half dozen breakfasts at the local breakfast joint. Remember, folks this
isn't about big National chains -- this is about supporting your home town
Americans with their financial lives on the line to keep their doors open.
How many people couldn't use an oil change for their car, truck or
motorcycle, done at a shop run by the American working guy?
Thinking about a heartfelt gift for mom? Mom would LOVE the services of a
local cleaning lady for a day.
My computer could use a tune-up, and I KNOW I can find some young guy who is
struggling to get his repair business up and running.
OK, you were looking for something more personal. Local crafts people spin
their own wool and knit them into scarves. They make jewelry, and pottery
and beautiful wooden boxes.
Plan your holiday outings at local, owner operated restaurants and leave
your server a nice tip. And, how about going out to see a play or ballet at
your hometown theatre.
Musicians need love too, so find a venue showcasing local bands.
Honestly, people, do you REALLY need to buy another ten thousand Chinese
lights for the house? When you buy a five dollar string of light, about
fifty cents stays in the community. If you have those kinds of bucks to
burn, leave the mailman, trash guy or babysitter a nice BIG tip.
You see, Christmas is no longer about draining American pockets so that
China can build another glittering city.
Christmas is now about caring about
US, encouraging American small businesses to keep plugging away to follow
their dreams. And, when we care about other Americans, we care about our
communities, and the benefits come back to us in ways we couldn't imagine.
THIS is the new American Christmas tradition.
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
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5 of the Best FREE Business Tools
You know the saying… “there is no such thing as a free lunch”. I disagree. I find free stuff for business all the time! There are so many fantastic free resources, webinars, eBooks … the list goes on.
Why is it free?
Sometimes we assume “free” equates to “crap” but this is not always the case. The list below have free offerings – you can upgrade if you love them so much you want more!
1. Mailchimp
Golly gosh, I just love Mail Chimp. You will need to pay if you exceed a certain number of emails per month but you would need to be sitting on a massive database to do that. If you have tried newsletters before and have decided they don’t work for you, you were probably making some common mistakes – read my blog about the 5 biggest mistakes here!
2. Skype
Skype rocks my world on a weekly basis. If you have not downloaded this nifty program then you are missing out on free calls to other Skype users. It is fantastic for face-to-face communication – switch the video on and voila! It is like you are sitting in the same room as the other person. I use Skype to coach clients and to catch up with friends and family. You can even make conference calls, which is fantastic if you have a team that is not office based.
3. Toodledo
Need to manage your own task or assign group tasks? Then this free program is the answer. Steve Eastwood put me on to this one and I have now got clients using it for project management. I use it myself so it must be good! You can download a free app if you have an iPhone and/or iPad or go old school style and use it online.
4. Facebook
I send clients and the other Small Fish Coaches nuts with my love of Facebook. There are very few businesses that this is not effective for. Set yourself up a free business page and start using Social Media to promote yourself! Mine is here if you would like free business tips! If you are not sure how to use it visit www.nataliealaimo.com - she is the “go to” gal for Social Media. You will find some great free resources such as eBooks and videos on her site. She is also running a free webinar in October, which will take you through the changes Facebook are making.
5. Free one-hour business coaching session
You knew I would slip that one in to the list! If you have not already booked a free session with a Small Fish Business Coach then do it now! We are smart and lovely and genuinely want to help. If business coaching seems like it might be for you – great! If not, we will still be friends and you will have some new ideas and a bit of fresh insight into your business.
Got a great freebie that you use in your business? Share it on my Facebook wall!
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
Jon Dale 27-Oct-2011 05:54 PM
Haha Melanie, great post. I'm glad you put a free coaching session in there - it made me laugh. Maybe I should look at ToodleDo. Could do with some help managing my workload......
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Regards,
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Anonymous 20-Jan-2012 03:55 AM
Un bon blog, bien écrit, merci.
Who Is Your Target Market?
One of the biggest challenges in business can be identifying your target market. Who are they? Why do you need to know who they are? What benefit is it to you and your business?
I have heard many people try to educate others on how to identify their target market and why it is important. I have struggled to educate people myself. At a recent BNI meeting I had 10 minutes to educate other business on my business. I pointed out my target market, I could hear the gasps and whispers in the room. Oh my god – she just said she ONLY works with women between the ages of 28 and 45! When in fact, that was not at all what I said! What I said was that the demographic that was MOST profitable to me was women between the ages of 28 and 45. Does this mean I have no male clients? No it doesn’t! Does this mean I have no clients younger than 28 and older than 45? Nope!
This is my best effort to explain it to you and I hope it makes sense. If it doesn’t, you're no worse off than you were before!
Firstly – your target market (in my words, not in business text book words) are the customers that have the longest lifetime value to your business. They are the most profitable to your business.
Think about a Fish and Chip Shop (mainly because I am hungry, but also because it is a nice simple way for me to explain using a “fishy” analogy). The Fish and Chip Shop need to sell $20 worth of product to make 150% profit. The profit declines as the average purchase declines. The aim is to attract the customer that spends a minimum of $20 in one transaction. They use only the best quality products including low cholesterol oil.
The Fish and Chip Shop has a very smart, gorgeous, funny business coach (hmm…who could that be?). The business coach suggests that they need to do some advertising but on a limited budget - the Fish and Chip Shop want to make sure they get as much bang for their buck as they can.
How do they accomplish this? Simple… Advertise to the clients who have the largest value to your business. The most profitable customers are the ones we want to attract!
These are the clients that
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Purchase regularly (1-2 times per month)
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Purchase more than $20 of food
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Live close to the shop
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See value in a quality product
These are NOT the clients that
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Purchase sporadically (3-4 times per year)
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Purchase less than $20 of food
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Do not live close to the shop
Lets now consider the types of clients the Fish and Chip Shop attract. This is clearly not an accurate full list, but stick with me, it will start making sense!
Now lets think about whom from that list you want to advertise to? The immediate answer most businesses give is “everyone is my customer”. While this is true, not every customer is profitable.
Who do you want to advertise to? Is it the single man, the teenager or the family? Of course it is the most profitable which is the family. A family doesn’t make the decision to purchase together – usually mum and dad make the decision so we have just broken your target down even further!
From figuring out who is profitable, the Fish and Chip Shop can now use their marketing dollar to influence mums and dads who live within 2kms of the store. Instead of spending $1000 on an advertisement in a newspaper circulated to an area 4 km outside of the shops location that is mostly read by retirees, we can focus efforts on a letterbox drop to homes (not units or retirement villages) in a 2km radius of the shop.
This is of course an overly simplistic view and I have no clue how profitable a serve of flake, chips and scallops are but I hope that helps you understand why you need to identify your target market.
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
Kristian Reiss 22-Sep-2011 05:57 PM
Thanks for that useful explanation Melanie, it certainly helped simplify the concept of target market. Of course, I also loved the fishy example!
Natalie Alaimo 23-Sep-2011 12:26 PM
Great article Melanie. I think target market is the most misunderstood topic for business owners, they are scared they aren't going to get any customers if they aim for only one type. But if they realise that they will get their most profitable customers
they will not only make more money but be happier also.
Carl Dierschow 24-Sep-2011 04:16 AM
Excellent article, Melanie, and spot on. I find a lot of people struggle with just limiting their targets to just the obvious demographics - gender, age, consumer/business, and so on. But targets should best be set on customer BEHAVIORS, even if it transcends
those kinds of distinctions. I had a great discussion this morning with someone who asked me whether age plays much of a factor in whether people want to buy my services. Honestly, no. When I WORK with people of different generations, I'll adjust my approach.
But what's far more important is that they're motivated to make deep and lasting change in their companies. That might be age 25 or 75.
First Impressions Count - Is Your Business A 70's Throwback?
We often hear the saying that people will decide what they think of you in the first 30 seconds of meeting you. First impressions count and this extends to your business as well.
Within 30 seconds a potential customer will have formed an opinion of the quality of your services before you have even had the chance to butter them up with your wit and charming smile!
How does you business present itself?
The Pushy Used Car Salesman
Is your business “in your face” with large colourful posters pitching every service or product you offer? Are those posters hand written suggesting you are a budget business? Does your staff almost jump the counter to grab a customer?
The Obnoxious Wine Snob
Could someone walking into your business clearly identify exactly where to go and what to do. Sounds strange doesn’t it? I have visited businesses where the front door was not easily located and the reception was deserted. The reception may have been beautifully presented but immediately I feel a little unwelcome and slightly intimated. Chances are I came to your business to use a service, not to feel like I don’t deserve to be there.
The 70’s throwback
Could your business be mistaken for a 1970’s trip down memory lane? Old stinky carpet, brown and orange bench tops/desks and yellowing/peelings posters on the wall of products you no longer sell. It is the equivalent of a woman wearing blue eye shadow and Farrah Fawcett hair. For some unknown reason, hairdressers and doctors surgeries often fall into this category. Doctors I kind of understand (they are busy curing illness after all) but hairdressers have no excuse. Refits are costly and headache inducing but small changes can make a huge difference. P.S Don’t fool yourself into thinking you are “retro” cool, your not…
The Moody Teenager
One huge mistake I see often are staff leaning and slouching all over desks and counters. It drives me crazy! Stand up and look alive people! If you are in no rush to serve me when I walk in your front door you will be in less of a rush to help me when you already have my cash.
The Sloppy Guy with Soup On His Tie
What might be acceptable to you in terms of tidiness may not be acceptable to your customers. If I can see piles of unopened mail, over flowing rubbish bins and paperwork strewn across your desk I won’t be impressed. Be as feral as you like behind closed doors, but when it comes to business keep it neat! Do you want to see a mechanic or dentist in disarray? I would worry that your disorganisation would lead you to forget to put the bolt back that holds my car together (slight overkill, but I am trying to make a point) or rip the wrong tooth out.
Take an outsiders view of your business, or better yet get an outsider to actually view your business. Ask the following questions to see what people notice about your business first?
- Could you find the front door/see our signage?
- How long did it take for you to be acknowledged?
- What where the first three things you noticed?
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
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Is Discounting Really The Best Option?
Everywhere I look I see perfectly respectable businesses tarting themselves out with slashed down prices like cheap hookers. Some of my favourite places are offering me prices so low I (almost) feel a little dirty for buying from them.
Sales have their place in the world of business. Moving excess stock after peek periods or getting rid of those old lines to bring in new products are perfectly respectable. What amazes me are the retailers offering substantial discounts on new stock. Advertising of sale stock has always been used to lure in the bargain hunter who then (hopefully) would be swayed into taking a heap of full price stock with them. Why then are some businesses marking down prices on everything?
Next time you get out the red marker pen and start pimping out your product at well below retail think about the following:
Will you customers still respect you when the discounting stops? Probably not, they will assume you were ripping them blind to begin with.
Example –I like one particular clothing chain (not naming any names but if you ever see me in the street you can check my tags). Their stock (all of it!) is on sale at least one week out of every five. So what is a girl to do? Wait till sale week of course! The strange thing is they still insist on under servicing and over staffing.
Are you cheapening your brand? Your target market may disappear and you may attract a whole new market that you never wanted in the first place.
Example – A local restaurant that I dine at regularly started offering 50% off meals and $12.50 steaks. Previously a large portion of their sales came from wine, now it doesn’t. What changed? Their clientele changed! Where once they attracted a younger crowd who loved a glass (or five) of chardy with their dinner, they now have families flooding in for a cheap feed. Guess who can’t drink gallons of booze on a weeknight? Mums and dads, that’s who! Guess who doesn’t want to sit in a restaurant with screaming (but I am sure lovely) kids? Me, and the rest of the “its fine to drink excessively during the week” crowd!
So what are the options?
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Sharpen up your customer service! Know your product, know your customer and know how to provide exceptional service.
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Consider a value add instead of discounting. A glass of house red with a full priced meal would have avoided luring in the wrong customer (and gotten the right customer tipsy enough to splash out on a fancy bottle of red).
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Reward those who shop with you regularly. Provide a “members only” promotion or a rewards system that lets your regulars know you appreciate them.
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Keep in contact….constantly! Databases are gold mines when sales are down. It is easier to sell to your existing customers than to constantly look for new ones. Don’t underestimate the power of regular newsletters, social media or just a good old-fashioned phone call! If you have never bothered to start one, now is the time regardless of the industry you are in (and poke yourself in the eye, you deserve it for not starting one when times were good!)
So now you may be reading this thinking “this girl has no clue what we are going through! Well think again! I too have ruined relationships with great customers by discounting new product lines and have attracted the wrong customer with cheap stock. It took a lot of hard work to regain the ground lost. Don’t make the same mistake!
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
Fiona McEachran 28-Jun-2011 11:25 AM
I love this article. Great advice Melanie. It is so sad and true, when businesses don't know their USP (unique selling point) or how to promote it, and don't have a proper marketing plan in place, they usually just resort to the lowest common denominator,
which is DISCOUNTING! However discounting, especially long term, rarely wins. The businesses doesn't earn enough to offer good service, and the customer suffers when the business finally goes under.
Melanie Miller 28-Jun-2011 01:10 PM
Thanks Fiona. It is hard to give exception service or products when you know you are not making a cent on them. You are correct, it all comes down to USP! What do you want people to know you for? Thanks for leaving a comment! We love to hear what people
think!
Why The Best Small Business Ideas Fail!
There are many statistics on the number of small businesses that never make it past the first year of trade. I have seen figures as high as 90% quoted! Why do some of the best business ideas fail miserably?
I am sure some are just great idea’s that never quite translate to the consumer. For most it is a simple case of not knowing what they are getting themselves into. Here are five of the biggest blunders that you should watch out for:
1. Limited (or no) capital
Building a profitable small business requires an input of capital and if you ask around I am sure most successful small business owners will say “estimate what you think you need, then multiple by 10!” Don’t forget that it is not just money you will need. Consider time and energy as part of your capital. If you are trying to build a business whilst working full-time or even part-time something will eventually have to give.
2. Lack of commitment and discipline
Many small business owners underestimate the time and commitment needed to achieve success. There is enormous discipline required. You no longer have the structure of a job to go to every day. There is no one to fire you if you don’t turn up for a week. Your time is your own, you must use it wisely. Long lunches and lack of commitment and discipline will crush your business.
3. Not understanding your target market
I cringe when I ask business owners who their target market is and they answer “everyone”. You must identify your target market or you will fail to develop a sales message specific enough to entice anyone!
4. Lack of planning
Plan, plan, plan! It is imperative that you have a comprehensive plan before you even think about that great new business idea. Business plans and marketing plans don’t count if they only exist in your head. Get those idea’s down on paper and use this as your road map to success. Update regularly and be specific in you goals.
5. Manic Marketing
Choose a marketing mix that suits your business. Once again if you have not identified your target market you will struggle to get your marketing mix correct. Monitor your marketing weekly and stick with it! Many businesses throw bits of cash at random marketing efforts without any monitoring. If they don’t get a lead in the first week they decide that particular marketing effort didn’t work and they move on to the next. Give your marketing efforts a fair go before declaring failure.
I could go on and on…. but I won’t. If you are committing any of the above sins then give yourself a stern talking to! Or call me and I will do it for you!
Check out this you tube clip for a great idea that failed! Given the chance I would love to “Live the dream”. Rumour has it that it was nothing to do with lack of planning, apparently the companies founder was doing something a little dodgy and ended up in a bit of trouble.
Melanie Miller
Small Fish Business Coach Gold Coast
www.smallfish.com.au
Anonymous 13-Apr-2011 08:21 PM
If you fail to plan, you plan to fail !
How Do I Implement Incentives For My Team?
Incentive plans are important for Small Business owners. I hear many reasons as to why business owners fear implementing plans for their teams. Reasons such as “I pay them every week, which should be enough of an incentive” make me cringe a little. Yes, you do (or at least I hope you do) pay them each week to perform a set of duties. Providing an incentive may increase their productivity, make them feel valued and increase your profit! It’s a win-win situation for everyone.
There are some important factors to consider when implementing your incentives.
Is it integrated with your business goals?
If your goal is to maintain long-term relationships instead of quick one off sales, then reward for long-term sales. If your plan is to grow your customer base rapidly then an incentive could be based on each new client or customer brought to the business. Use your KPI’s (Key Performance Indicators) to set your goals.
Is it easily measurable?
If your incentive requires a Masters Degree in Finance to figure out it won’t motivate your staff. Make it easily measurable and visible by everyone.
Is it achievable?
An incentive should require a push in effort, if it doesn’t your simply increasing your staff’s wage. The push in effort required should be achievable. Nothing will de-motivate your team as much as a goal so out of reach they will never achieve.
Is it consistent?
If you want your incentive to be successful, set the goal posts early and don’t move them during the incentive. This is another de-motivator for your staff. You can of course pick different KPI’s to focus on each month or quarter. This will allow people who have different strengths or skills to achieve.
Is it payable within a reasonable amount of time?
Keep time spans small, anything more than three months can quickly be forgotten. The larger the time required to achieve the larger the incentive needs to be.
Is it what your staff wants?
If you are offering a voucher to a camping and fishing store to a group of people who never camp and have no interest in fishing will it motivate them? Most likely not! Chose an incentive that appeals to everyone. Cash is always a great motivator but if you don’t want to use cash, then a couple of hours or a day off can be of value to your staff. Be very carefully about offering your own products or services as an incentive. It’s not a great motivator either, unless you’re offering a free Porsche!
Melanie Miller
Small Fish Business Coaching Gold Coast
www.smallfish.com.au
Kris Peksis 09-Feb-2011 03:43 PM
Very well thought out and relevant. I have had experience as an "employer" of both volunteer, paid and commission only and have also been offered incentives as a salesperson, manager and administrative employee. Most people quickly get used to the regular pay level and accept that for a regular level of work. Many people will go over and above what is required but soon become disillusioned and can become bitter when there isn't an incentive or reward to acknowledge the extra effort or result. Volunteers often become choosy about tasks and high achievers move on or lose interest. Low achievers or people who don't feel the urge to strive often don't agree with incentives - they put up a wall in case they look like they failed. You need to be careful about the type of incentives or how they are presented so they aren't belittling (Krispy Creme Donuts uugghhh!) or not of interest.
The greatest way to understand whether it is disinterest, fear or apathy that hold people back from doing things is to gradually up the level of the incentive. Even to myself, I can say can I get a new client by tomorrow for $50?...maybe, bit hard. For $1,000? I will followup a few old leads... For $20,000...easy!!! Done Deal.
Melanie Miller 09-Feb-2011 05:29 PM
Thank you for your feedback Kris.
I agree that the incentive needs to be relevant and yes, Krispy Kremes might not really be appropriate!
I also like your view on low achievers vs high achievers. It is really about finding the right fit for the mix of employees you have. Identifying the disinterest, fear or apathy is a great point!
Thanks again for your insight and feedback!
Anonymous 09-Feb-2011 06:54 PM
Very valuable information.
Incentives are based on such a simple concept.
Being rewarded for your EXTRA effort....and who doesn't like to feel valued and appreciated ?
As an employer you will be able to create a positive and happy work enviroment and I can guarantee not only productivity will increase but positive energy will also increase.
I have recently made a career move based primarily on incentives and have recently met with my new team who are energised and motivated by incentives !
Speaking from an employee point of view, incentives make you want to put in that extra effort , feel appreciated and generally makes you feel like work is worth while.
I totally agree that the incentive and KPI's must be achievable. I have previously over achieved with a global company and received a very generous incentive, only to have the KPI's increased to the point they were completely impossible to achieve. The result ? I become so demotivated I simply gave up and am now employed by someone who understands incentives and appreciates my results.
I have recently met with the team I will be heading up and the first thing we done was share our dreams and goals, both professionally and personally. This was a fabulous opportunity for me to put incentives in place that my team would like to achieve. My team would like to work less hours....time is our most precious commodity.....therefore I am really looking forward to working with my team to achieve our goal and have them spend a few more hours with their family instead of at work !
P.S Incentives work wonders with children too !!
Penny 09-Feb-2011 10:41 PM
Excellent Blog and so very important!
Incentives are a win win for an employer and employee. An effective system of incentives can help, persuade staff to join your business, retain existing staff, increase staff motivation morale and loyalty, boost productivity, link individual and business performance, focus employees on achieving targets and also build teamwork (I could go on forever). Perks and incentives can form an attractive element of an employment package too!
