If you have ever said the words “You just can’t find good help these days” then you NEED to keep reading!

Are you a small business owner desperately searching for reliable, competent help these days? If the answer is yes, don’t worry – rest assured that it’s not because there aren’t any good workers out there. The real reason why you can’t seem to find quality employees could very well lie with you. That’s right, YOU!

You’re probably ignoring some of the basic forces motivating qualified people to seek employment in your company and commit to long-term loyalty. According to a Harvard Business Review report, there are four primary elements that would-be employees are looking for from their potential employers. Ignoring even one can mean bad news for your bottom line and lead to countless weekends spent frantically scouring job sites, so read on if you want educated insight into solving this universal issue once and for all.

But, if all you are looking for are warm bodies for low-paying gigs then this article is NOT for you. This is an article about how to attract skilled professionals to help you grow your business.

Still Here? Good, let’s proceed

First, let’s set the table a little. As of March 8, 2023, there are 1.9 jobs open for every person actively seeking employment. That means that it’s a seller’s market in the world of labor. That means that your job opportunity isn’t much of a privilege anymore. The people applying to your opportunity have other options and they can afford to treat you as such. The question you should be asking yourself is not “Why can’t I find any decent people to work for me?” and instead needs to be replaced with “How do I attract the right talent?” The good news is, that’s what the rest of this article is about.

What do employees really want?

According to the Harvard Business Review, there are four main factors that employees consider when deciding whether to join or stay with a company:

1. They want to know that the company is reputable
2. They want to know that the company will still be there tomorrow
3. They want to know that there is room for advancement
4. They want to be paid what they feel they are worth

While all of these factors are important, failing to meet even just one of them can significantly hinder your ability to attract and retain good help and it’s up to the CEO to provide the vision and plan to make these things a reality.

The importance of a balanced approach

You might be tempted to think that as long as you offer competitive compensation, employees will be more than willing to overlook any deficiencies in the other areas. However, this couldn’t be further from the truth. According to the Harvard Business Review, “[Y]ou can have 1 through 3 but not 4 and you are dead in the water. And, it’s the same if you have 4 but not 1 through 3.” This means that offering a high salary without providing stability, growth opportunities, and a good reputation can be just as detrimental as offering a low salary with all other factors in place.

The Solution: understanding and meeting the needs of prospective employees

If you want to attract and retain the best talent, it’s essential to understand what your employees want and to make an effort to meet those needs. For example, to address their desire for job security, ensure that your company is financially stable and has a long-term plan in place. To demonstrate commitment to employee growth, create and implement professional development programs and provide clear paths for advancement within your organization. And, of course, offer fair compensation based on industry standards and each employee’s skills, experience, and qualifications. Even better could be to implement a performance pay structure with a built-in safety net.

Putting it all together

As a small business owner, it’s easy to get caught up in the day-to-day operations and overlook the needs of your employees. However, if you want to attract and retain the best talent, it’s crucial to take a step back and assess whether your company is meeting the four key needs outlined by the Harvard Business Review. By committing to providing a reputable, stable, and growth-oriented environment —paired with fair compensation—, you can create a workplace where employees are happy, engaged, and here to stay.

It’s time to stop blaming the labor market and start paying attention to what your staff wants. If you don’t, they will probably leave for someone that will.

Starting a business can be an overwhelming undertaking with multiple responsibilities to keep track of – that’s why having the right partner is so important. Not only do they provide financial support, but being partnered up also gives you access to valuable insights and advice which could make all the difference in hitting your growth goals.

Picking a business partner is no easy feat. It can be akin to marriage – make the wrong choice and you’ll have quite the divorce on your hands in order to undo it all! Consider wisely before taking this major step.

When picking a partner for your business, the right decision could make or break you- so it’s essential to choose carefully. Consider all angles and research their background before signing on the dotted line!

Trust

When selecting a business partner, trust is paramount. After all, you will be relying on them not only to look after their own interests but also yours and your company’s – plus any customers or people dependent upon it. All factors should work together for mutual success.

If you don’t feel confident enough to trust a prospective business partner with your financial information or most valued belongings, then it’s not the right time for a partnership. Remember that any actions taken by them will ultimately have repercussions in your life.

Affinity

Finding a business partner who is truly aligned with your values and vision for the future can be hard, yet it’s critical to ensure long-term success. Make sure you both have similar ideas of where the company should go and that there are healthy communication channels between you – otherwise disagreements could quickly derail progress.

When considering a business venture with someone you’re friends with, it’s important to look beyond the relationship. Analyze whether they possess qualities that will help create an outstanding company or if your decision is solely based on personal connection.

Skills

Having the right partner is key to a successful venture. Consider who can fill in your gaps, and make sure you cover all your bases together for long-term success!

Having a shared skill set with your partner is great, but it can be more beneficial to have complementary talents instead. With different strengths in play you’ll be able to cover all the bases and tackle tasks together as opposed to relying on outside help. Ultimately this will lead to greater success for both of you!

Working with a business partner can be beneficial, both by having someone to share ideas and responsibilities, as well as compensating for skills you may lack. When looking for the right person to collaborate with, it’s essential that your strengths complement each other in some way – so if creativity is second nature to you then targeting partners who bring an analytical outlook could work perfectly.

Money

Finances are a critical component of finding the right business partner; after all, you won’t get anywhere without both parties putting in their fair share. When it comes to selecting someone who will help your venture reach its goals, make sure money is part of that equation.

Partnering with someone who puts nothing back into the company but continuously takes from it is a recipe for disaster – so why risk it? Make sure you choose wisely!

A successful business partnership requires both partners to take on the same amount of risk. Mismatched investment levels can lead to an unbalanced relationship, so it’s important for all parties involved that everyone is willing and able to participate as equals.

Choosing Your Business Partner

Choosing a business partner is an important decision, so take time to ponder the options. A bad choice could be catastrophic – not just for your business but also for yourself and your future prospects. Weighing up all possibilities should ensure that you select someone with whom you can build something strong and secure together.

What is a SWOT Analysis and why should you do one for your business?

Ah, the SWOT Analysis – it’s like the business world’s version of a personality test. Only instead of finding out if you’re an introvert or extrovert, you’re discovering your company’s strengths, weaknesses, opportunities, and threats. And let’s face it, who doesn’t love a good SWOT analysis? Not only does it help you identify areas for improvement, but it allows you to see the big picture and plan for the future. So why wouldn’t you want to do one for your business? Unless you’re a fan of flying blind, I suggest you grab a cup of coffee and get cracking on that SWOT analysis. Your company will thank you.

Identifying Your Strengths – what can you do better than anyone else in the industry or market

So, you’re looking to identify your strengths, huh? Well, let’s see…what can you do better than anyone else in the industry or market? Maybe you’re the master of multitasking, able to juggle a million tasks with ease. Or perhaps you’ve got a killer eye for design, with the ability to create stunning visuals that leave others in the dust. Oh, and let’s not forget about your impeccable communication skills, which can charm the pants off even the toughest clients. Yep, you’re just a little bit awesome. But hey, don’t let it go to your head…okay, maybe just a little bit.

Acknowledging Your Weaknesses – what could be improved or changed to make it better

Let’s face it, none of us are perfect. We all have our weaknesses and areas we could improve on. In fact, if someone tells you they don’t have any weaknesses, they’re probably lying or just have a rare case of narcissism. But fear not, acknowledging your weaknesses is the first step towards improving yourself. Maybe you need to work on your time management skills or your public speaking abilities. Whatever it may be, take note and make a plan to tackle those weaknesses head-on. After all, who doesn’t love a good comeback story of someone overcoming their weaknesses and achieving greatness? So don’t be afraid to embrace your flaws, because everyone’s got ’em.

Exploring Opportunities – what opportunities are available to you that could further your success

Ready to level up? The world is full of opportunities if you’re willing to open your eyes and seize them. Whether you’re looking to advance your career, broaden your skill set, or just try something new, there’s a wealth of chances out there waiting for you to take the plunge. Maybe you’ll discover a hidden talent you never knew you had, or find a passion that ignites your spirit. Whatever your goals may be, don’t be afraid to explore new avenues and take risks. Who knows? You might just stumble upon the opportunity of a lifetime. So go ahead – take that first step toward greatness. Your future self will thank you for it!

Addressing Threats – what risks or external factors could affect the project and how can these be minimized

Ah, threats. What would life be without them? But back to the project at hand. Let’s talk about those pesky risks and external factors that could turn your project upside down. Whether it’s a sudden change in regulations, a global pandemic, or a unicorn invasion (hey, anything is possible), it’s crucial to have the plan to minimize these potential disasters. So, let’s get to work and think outside the box. Because when it comes to addressing threats, only the witty, fun, and a little cocky will survive.

Putting It All Together – using the information gathered to make informed decisions

Alright folks, here’s the deal. You’ve gathered all this information, done your research, and now it’s time to make some big-boy decisions. It’s time to put it all together and show this world what you’re made of. You’ve got a gut feeling and some hard facts to back it up, so don’t be afraid to flex that confidence a little. I mean, come on, you’ve got this. Don’t let anyone tell you otherwise. Use that knowledge and make those informed decisions like the manly man you are. Go forth and conquer, my friends.

Ultimately, understanding and utilizing a SWOT analysis can help you identify existing strengths and weaknesses for any business, project, or idea that you are working on. Or even yourself if you are so daring.

When combined with your creative vision and hard work, this knowledge can lead to success even in the face of external threats or major industry changes. As such, it’s important to take some time to think deeply before committing to anything. A thoughtful SWOT analysis is like a roadmap, helping you gain confidence in yourself and your endeavors and giving you the focus and determination you need to see your greatness through. So go out there and “own it”! Be confident in the fact that with a bit of research and smart strategy-building – even when faced with risk – it’s utterly possible to achieve what was once inconceivable.

I mean, who doesn’t love poring over rows of numbers and trying to decipher what they mean? It’s like a puzzle, but with more boredom and less fun.

First things first, let’s talk about what a balance sheet actually is. It’s basically a snapshot of a company’s financial situation at a particular point in time. It shows what a company owns (its assets), what it owes (its liabilities), and what’s left over (its equity). I’ll give you three guesses as to why it’s called a balance sheet.  The answer is in the name.  Your balance sheet is called that because when it is filled out correctly your assets will be equal to your liabilities and equity.  Easy, right?

Now, let’s dive into the nitty-gritty of how to read a balance sheet.

Let’s start with assets. These are the things a company owns that have value. It could be anything from cash in the bank to property and equipment to investments. Assets are listed on the balance sheet in order of how easily they can be converted into cash. So, cash is usually listed first, followed by things like accounts receivable (money owed to the company by customers), inventory, and so on.  Yes, your Accounts Receivable entry is considered an asset, but in no way does that mean that you want to see a big number here.  It’s much safer to stay true to the adage that “Money doesn’t count until it’s in the bank!”  That being said, you still need a place to keep track of who owes you what.

Of course, just because a company has a bunch of assets doesn’t mean it’s rolling in dough. It’s important to look at the liabilities too. These are the things a company owes, like loans, taxes, and payments to suppliers. Liabilities are listed in order of how soon they need to be paid off. So, things like accounts payable (money owed by the company to suppliers) and short-term loans are usually listed first, followed by long-term debt and other obligations.

So, how do you know if a company is doing well or not based on its balance sheet? One way is to look at the relationship between assets and liabilities. Ideally, you want to see more assets than liabilities, which means the company has a cushion in case it needs to pay off debts or deal with unexpected expenses. This is called a “strong balance sheet.” On the other hand, if a company has more liabilities than assets, it could be in trouble. This is called a “weak balance sheet” and could indicate that the company is struggling financially.

But wait, there’s more!

We haven’t talked about equity yet. Equity represents the value of the company that’s left over after all the liabilities are paid off. It’s what’s left for the owners (shareholders) of the company. Equity can be a good indicator of how well a company is doing because it shows how much value has been created for the owners over time. It’s also a way to gauge how much risk the owners are taking on. If a company has a lot of debt and not much equity, it could be a sign that the owners are relying heavily on borrowing to finance their operations.

So, there you have it. The basics of how to read a balance sheet. But let’s be real, who has time for all that number-crunching? You could probably just take an inventory of how many followers you have and how cool your logo and branding are. After all, who needs financial literacy when you have social media?

But seriously, if you want to make the transition from being someone that owns their job to being an actual CEO, it’s important to understand how to read a balance sheet. It’s not the most exciting thing in the world, but it can give you valuable insights into a company’s financial health and help you make informed decisions. So, grab a cup of coffee, put on your reading glasses, and get ready to dive into the wonderful world of balance sheets. Or, you know, find a partner that can do it for you and then just tells you about it all. Meh, Whatever works.

First things first, let’s define what a profit and loss sheet actually is. It’s a financial statement that summarizes a company’s revenue, expenses, and net income (or loss) over a specific period of time. The period of time can vary, but most companies prepare this statement on a monthly, quarterly, or annual basis.

Now, let’s dive into the different parts of the profit and loss sheet.

Revenue: This is the money a company earns from selling its products or services. It’s the top line of the profit and loss sheet, and it’s always a good sign when it’s going up. Think of it as the fuel that keeps the company’s engine running. Without revenue, a company can’t survive.

Expenses: These are the costs a company incurs to produce and sell its products or services. This includes things like salaries, rent, utilities, and supplies. Expenses are subtracted from revenue to calculate the company’s net income (or loss). If revenue is the fuel, expenses are the oil that keeps the engine running smoothly. But be careful not to use too much oil, or you’ll end up with a mess.

Gross profit: This is the difference between revenue and the cost of goods sold (COGS). COGS is the direct cost of producing the goods or services that are sold. Gross profit is an important metric because it tells you how much money a company is making after taking into account the direct costs of production. Think of it as the cake before you start adding the icing.

Operating expenses: These are the expenses a company incurs to run its day-to-day operations. This includes things like salaries, rent, utilities, and supplies (yes, I know I already mentioned them, but they’re important!). Operating expenses are subtracted from gross profit to arrive at operating income (or loss). Operating income is an important metric because it tells you how much money a company is making from its core business operations. Think of it as the icing on the cake.

Net income (or loss): This is the bottom line of the profit and loss sheet. It’s what’s left over after all the revenue, expenses, and other income and expenses have been accounted for. If it’s positive, the company has made a profit. If it’s negative, the company has made a loss. It’s important to remember that net income is not the same as cash in the bank. It’s just a number on a piece of paper (or a screen). But hey, if the number is positive, the company can use that money to buy some cool stuff (like a new coffee machine for the break room).

Now that we’ve covered the different parts of the profit and loss sheet, let’s talk about how to use it.

First, you want to look at revenue. Is it going up, down, or staying the same? If it’s going up, that’s a good sign. It means the company is selling more products or services. If it’s going down, that’s a bad sign. It means the company is selling less. If it’s staying the same, that’s neither good nor bad. It just means the company is maintaining its current level of sales.

Next, you want to look at expenses. Are they going up, down, or staying the same? If they’re going up, that’s a bad sign. It means the company spends more money to produce and sell its products or services. If they’re going down, that’s a good sign. It means the company is finding ways to reduce its operational cost and therefore increase profits.

This is the #1 most important thing to pay attention to on your P&L sheet. Most new business owners get their reports from their accountant, and they look at the money that came in and then scan down to the amount that they get to keep and then they end up using that piece of paper for taking notes without giving it much more concern. It’s not really their fault. I blame the accountant for not adding historical data to the P&L. You see, without adding the historical data you have no way to easily see what direction things are going in.

Your goal as a business owner is to be acutely aware of what the variance is between this month and last, this quarter and last, and what your business was doing at this time last year. Doing this will allow you to see the trends in your business. It’s really the only way your business can talk to you. And if you don’t take the time to learn to speak in the same language you are risking losing it altogether. Don’t get it wrong, at this stage your business is just like any other relationship that comes your time. Good Communication Is Key!

Hopefully, this article has helped you understand the importance of your Profit and Loss sheet. If you still have questions hop over to our contact form and shoot us a message. Or give us a call, we’d be happy to help you manage and grow your business!