Harvee – Adam Houlahan is a friend of Inspire and a social media guru! He runs Web Traffic That Works, a social media agency that helps entrepreneurs gain influence and credibility online. He has a particular skill for LinkedIn, and this post is filled with some great insights on how to use it properly.
Plus… There’s a special bonus for Inspire Community at the end!
Enter Adam..
Have you ever considered LinkedIn for growing your career or your business?
LinkedIn is the social media channel for professionals to interact and engage in a professional way. Unlike other social media platforms, LinkedIn is all about it users’ professional lives and profiles. It is also a premium channel to enlist for using social media for business and marketing purposes.
There are numerous ways to create a LinkedIn marketing strategy, and in this article we’ll look at some simple tips and explain how to use LinkedIn for business and create a marketing plan for measureable results.
To achieve sustainable success in the long term with professional social media marketing, you will need to develop a consistent, comprehensive LinkedIn marketing strategy. Whether you are a small business consisting of a sole trader, or a larger corporation, LinkedIn can be a powerful lead generator.
Too many LinkedIn users view the platform as an online resume. When it comes down to it, do the professional connections you make now care where you went to school? Or where your first job was? At the end of the day, the audience doesn’t care about you as much as they care about what you can do for them. So use your profile to tell your audience what you do now; what makes you stand out from the crowd; how you can benefit others; and include testimonials from others that support your claims.
Whilst your personal profile will always be the main presence and way you interact on LinkedIn, consider your LinkedIn business page as an extension of your business website. Include job opportunities, new products and services, and compelling content. Invite your existing customers, clients, partners, vendors and employees to connect with and follow your LinkedIn page. Key partners, clients, or customers may be willing to endorse you via the LinkedIn tool – this can be a very powerful asset to your business.
Use your page to provide compelling content in the form of industry updates, showcasing your business, interesting and informative blog articles, etc. Remember to segment your followers appropriately so that you can target updates in a relevant way.
Visual content is much more engaging than raw test and with great visual content on your profile, text is more likely to be read. Use the LinkedIn Professional Portfolio feature to enhance your profile with images, screenshots, videos, infographics, SlideShare presentations and linked articles. Update your profile regularly so that its content is dynamic; include recent press articles, work samples, case studies, screenshots of tweets based on your work, special programs and events, and speaker videos.
You want to develop real relationships on this platform, as opposed to simply collecting connections. One way to do this is to provide targeted value within your niche. Contrary to the common practice of broadcasting at your wider audience, instead aim to connect with your network to ultimately create an active relationship that is mutually beneficial and ultimately grows your business’ bottom line. This will humanise you, your business and your brand, and your engagements and interactions will become more meaningful.
As a result, you will stand out from your competition, position yourself as of value to your connections, trigger reciprocity, and engage your network.
LinkedIn groups bring together members of the platform who share common interests and goals. By creating and launching such a group specific to your niche, you can position yourself as an authority and a thought leader within your industry.
LinkedIn groups also allow you to message your members directly each week, delivering campaigns and promotions and directing them to your compelling content like newly published blog articles.
Assign a moderator role to a person who asks open questions, pre-approves discussion topics, and manages group membership. Organically inform clients, customers, partners, vendors, relevant connections and employees as well as key influencers in your industry. Key influencers can become ambassadors for the group to enlist new members and help lead discussions to keep the group activity dynamic.
Prove yourself to be an expert in your field and you will achieve greater results with your marketing campaign. As a marketer that provides value to others through compelling content that is of high quality, you will be remembered by consumers when the time comes to make a purchase to fulfil a need. Great social content helps to foster and generate leads.
It’s also a great idea to designate suitable company employees to assist in the implementation and maintenance of your overall LinkedIn marketing strategy. Having employees on board fosters an extended network and a greater presence for your business.
LinkedIn sponsored updates allow you to target your content towards the key influencers and decision makers on the platform. This in turn will result in your credibility as an authority in your niche expanding, and your exposure across the platform will be enhanced.
Thanks to LinkedIn’s detailed analytics tools, you can track the effectiveness of your LinkedIn marketing campaign via the following metrics:
When you consider how to use LinkedIn for business, one thing to adopt is blogging on LinkedIn. LinkedIn’s Influencer Program was launched in 2012, and it allowed thought leaders to publish highlighted blog posts on topics ranging from innovation and leadership to case studies. The capability was extended to all platform users in 2014, and anyone in your network can see and benefit from your blog posts.
Blogging on LinkedIn enhances your profile and professional standing. Some basic tips for successfully blogging on this platform and to enhance your social media marketing campaign include:
LinkedIn is a powerful professional social tool for growing your business. With some attention to the above suggestions, you are certain to enhance your overall social media marketing campaign. LinkedIn can’t be ignored.
If you’ve got some ideas for LinkedIn from Adam in this article, we strongly recommend his free four week LinkedIn eCourse – it will fast track your path to raising your profile, generating leads and boosting your business through LinkedIn.
Inspire is built on the premise that we can help small business owners with young families, draw more happiness in the form of time and resources from the work they do. One of the things standing in the way of owners achieving this goal is too much time spent on invoicing, bookkeeping and administration. Now this doesn’t necessarily apply to everyone but ask yourself these important questions. At the end, we’ll tell you what it all means:
We’ll leave the questions there because you probably need to get back to your invoicing and/or admin. But what does it all mean? Let’s take a look.
If you answered “yes” to any questions aside from questions 5 and 8, we need to talk because you have problems that we can help you solve. And Xero will feature in many of the solutions.
Talk to your accountant or us about switching to Xero and get your head out of the books and back into the clouds, where it belongs on your days off… you know… days off?
A reliable, recurring and regular income stream for your business from a single source is a wonderful thing. Some businesses refer to them as retainers, others simply call it repeat business. There are other names too but whatever you call it, from the outside looking in, it’s called a healthy and valuable business.
You see, marketing is an expense that can get really expensive if it’s not leading you to more sales. Cold calling contact lists can take its toll and prospecting for new clients is necessary but not necessarily easy. But providing goods and services regularly to regular customers is – or at least relatively so.
When a small business can show turnover, unencumbered by heavy costs of doing business such as business development time (and associated fees and or salaries), it’s a clear sign that margins are healthier. It also suggests that profits will be healthier and more sustainable. Potential investors or those in the market to buy all or a piece of a small business, will be attracted by the sweet, sweet scent of recurring dollars. Even if you are not interested in selling your business or taking on an investor, take their interest as affirmation that you are on the right track and the value that you add for your clients has made your business even more valuable.
Recurring revenue or retainers also suggest to interested parties that you have and maintain good relationships with those clients. It says that you and your commercial enterprise are easy to do business with, which means running the business will be easier. All of these aspects of your business represent valuable ticks in all the right boxes and are important features of a “Cashed Up Business”.
If 50% or more of your revenue is derived from monthly subscriptions or similar, you will automatically have more time to work on your business (the offer, the customer experience, innovation and future-proofing…) instead of in it. You will have progressed from maybe “owning a job” where you find yourself well and truly in the operational space to owning a Cashed Up Business. Now you can rely on your established processes and systems to help keep the business and the revenue ticking over.
Tip: ensure that all of these valuable processes, protocols and systems are clearly documented. Think of this compendium as an owner’s manual or instruction booklet. Any well-oiled machine is far more valuable when it comes with a detailed handbook and a clear path to sustainable success i.e. recurring revenue.
For more tips on how to turn your life’s work into a Cashed Up Business, book your place at one of our workshops (June 2 and 15), it will make all the difference to you.
As we inch closer and closer to the end of the financial year and the conclusion of the tax season, there’ll be conversations around how your business did and how well you did on the tax front. As accountants ourselves, we know that part of the glory and all of the blame rests with us when the final (tax) reveal takes place. If you’ve saved a lot of tax because of the advice you received and the actions you took as a result – happy times. If not, one of two things generally happen. One nothing. Or two, disappointment (perhaps some unkind words but rarely) and then… nothing.
This is not a good outcome for you, the small business owner. It should, all things being equal, start the search for a more invested, proactive accountant to guide you through the fiscal jungle or at least lead to some fairly direct conversations about expectations.
So, to the questions.
You know that moment when you’ve been sitting with your accountant for quite some time and they are just about to tell you what you owe or what you’ll be getting back from the ATO? You’re excited, perhaps you’re nervous, perhaps you’re feeling physically sick. This could be bad, it could be really, really bad. And yet, there they sit, as cool as a cucumber.
Why?
There are two possibilities. One because they know they have done some great work for you and they know you’ll be delighted with the result. If anything, they’re mildly curious about how you’ll spend all that extra money that you thought would be heading the ATO’s way.
Or two, they simply don’t care. Unfortunately, there are those in our industry, and every industry for that matter, who are permanently in “fill and file” mode. This is not great but it gets worse when you realise that someone like that is “taking care” of your small business’s money. The same money with which you promised yourself, you’d make a great life for your family.
Nothing. Costs, particular when it comes to tax, can mount up pretty quickly if you don’t have a good accountant. But if you do, you will find that their fees will be dwarfed by the amount you save as result of engaging their services. We’ve said it before but it bears repeating – If your accountant isn’t putting $10,000+ a year back in your pocket in tax savings it might be time for a change.
Aside from taking care of lodgements there are a number of things your accountant can and should be doing for your business:
These quick examples don’t include the basic goal of helping you build a better, stronger business with which to help you enjoy life with your family.
That’s the key – no question.
If you do have more questions, particularly around assessing the type of service you’ve been getting versus the quality you deserve, please do contact us.
With only 8 weeks to go until the end of 2016/17 financial year aren’t you a little curious as to how your business will look, results-wise, come June 30? The correct answer here is “no”. Bonus points if you added an exclamation point. Apart from curiosity killing a cat, what’s wrong with wondering if you finished in the red or the black, up or down, flat or flush? The reason “yes” to these questions is a red flag, is because you should already know. Maybe not down to the last 10cents, but at this stage of the game there should be no surprises and no need for guesswork or crossed fingers.
Knowing your numbers provides the answers to all of these questions. It even answers the question, “how can I tell what’s going to happen in June when we’re only in the beginning of May?” That’s the beauty of having a full picture of all the numbers that matter to your business. They will not only tell you what just happened but they will offer clear insights into what will happen next.
The scoreboard should tell you more than just the score
When we at Inspire recommend that small business owners establish and regularly check their scoreboard or dashboard, we’re not simply looking for the amount of money in the account. While cash on hand is important (vital actually) it doesn’t tell the full story. Buried (but not too deep) in monthly and weekly numbers are profit drivers and lag indicators. They are hiding in plain sight just waiting for someone to take a look at and formulate some next steps based on what the numbers are saying.
Too often, small business owners see a lower than expected (hoped for?) number and start feverishly cannibalising their own margins to prop up the turnover figures. Dangerous. Very dangerous. We’ve talked about how times of difficulty call for an increase in value not heavy discounting. With a clear view of the numbers, problems are solved while they are still just lag indicators, leaving you plenty of time to prepare your countermeasures. Similarly, when forecasts indicate an upswing in sales based on real data, a knowledge of your numbers will signal the right time to take advantage with added investment in staff, capital or simply a larger safe.
Using a dashboard regularly (weekly) and for its intended purpose, represents an investment of time and money that will pay for itself many times over, regardless of the story it tells. “Forewarned is forearmed” and “first in, best dressed” are the key messages that highlight the value of knowing your numbers. Not just the ones that tell you what happened in your business, but the ones that show what can happen for you.
An essential requirement for hitting a target is knowing where (and what) it is. As we have mentioned many times before, if you have not yet worked out your “magic number” (your expenses + tax payments + payroll + your pay +10% for the war chest + money to pay down debt) or the amount you need to earn each month, you are doing your business and yourself a huge disservice. Knowing your target is essential to achieving your target and you cannot do that unless you know your numbers.
But what if you do know your numbers and you have arrived at a “magic number” of say $30k per month? What then? How can you increase your chances of hitting that number consistently? Let’s get into a little Q&A. Here goes:
This is a common situation. You might be selling a product or service that falls outside the fast moving consumer goods (FMCG) realm where chewing gum, milk and food are paid for immediately, no questions asked. If you are a web developer, consultant or have a trade you may not have this luxury. At the very least, you need to collect full payment or at least a deposit before you commence work to alleviate potential cash flow issues. As we’ve said before, you’re not a bank, don’t act like one.
Most online banking services offer the facility to set up different accounts. The best way to ensure you’re not inadvertently spending the government’s money is to go ahead and set up an account called GST or something similar. Get in the habit of directing your taxes to a separate account and forget it’s there… until your BAS is due. It’s a discipline, but it will save you – again and again.
This is an interesting one about how to future-proof your earnings as much as possible. One of the biggest threats to your business’s ongoing viability is relying on just a handful of customers to keep you going. If you are depending on one client for 20% or more of your revenue, you may find yourself exposed if you lose them, if only for a while. Work hard to get a good spread of clients to share the load. Achieving your magic number on an ongoing basis could depend on it.
Unfortunately, there will be a rainy day here and there. It’s the nature of business. In some instances however, it won’t be just one rainy day, you may have to face a month or two before the sun comes out again. As a rule of thumb, aim to have enough funds on hand to cover three months of operational costs. Now, you may never need your war chest or rainy day fund, but you will definitely sleep easier knowing it’s there.
Our upcoming Cash Rich Business workshops (June 2 and 15) are your opportunity to get all the answers to all your questions as well as important tips and guides to securing all the benefits of a cash rich business. Hope to see you there.
It’s always a great thrill when you look at your P&L and realise that you’ve made a profit. Let’s face it, everyone loves a profit, especially when it’s big and healthy and we don’t even mind if it’s an unexpected event. It’s hard to think of a circumstance where the sudden arrival of a substantial profit is not welcomed with open arms.
Too often, profit is something that small business owners fervently hope for, and when it arrives, it’s greeted with gratitude, relief and yes, even surprise. While it’s certainly a happy event, should genuine surprise always be the reaction? If it is, that would suggest a lack of planning and more than just a smidgeon of luck! As we all know, luck is a wonderful thing to have on your side but it is not to be relied upon to bring home the bacon month in and month out, year on year. For that you need a plan.
Understanding growth indicators and triggers is an activity in which successful owners of cash rich businesses invest a lot of time. They understand that profit fluctuations occur for a reason – it’s not left totally to chance. Yes, we understand that being in the right place at the right has a lot to do with success but smart business owners also believe that there is a science and an element of planning behind sustainable profit and profit growth.
As always it comes down to knowing the numbers, being able to look at your P&L sheet and understand what has occurred and why. That’s only step one because having a firm grasp on past performance, in and of itself, may not mean that you understand what should happen next. This is why formulating a “profit improvement plan” with your “numbers team” (CFO, accountant etc) is critical to ensuring improved cash flow.
Planning demonstrates intent by setting forth actions based on what the numbers are telling you. Instead of simply hoping that the lucrative month you just rejoiced in is repeated in upcoming months, adopting logical steps that may call for planned operational tweaks and adjustments will help achieve that goal.
It’s funny how one bit of good fortune, keeps you in the game – believing that there’ll be more good luck just around the corner. However, relying on the ebb and flow of profit fluctuations and hoping to “catch lightning in a bottle” from time to time is not feasible.
The hard truth is that if you don’t work with some kind of profit improvement plan, you will always struggle. Why? Because if you can’t rely on the achievement of a certain amount of profit or growth, you have little choice but “hustle” hard all the time. If you don’t have a profit improvement plan, you can also forget about planned holidays – the type where you’re not sneaking back to the room to check emails and payments and the like. Even on holiday you can never truly switch off and that, is simply not sustainable.
Truth be known everybody gets lucky – but no one stays lucky. Especially not lucky enough to build and sustain a cash rich business. That takes planning.
Hope for the best, plan for the worst. We’ve heard that a lot and the tax planning season, which is already upon us, takes elements of this saying into account. Saving tax to ensure you only pay your fair share and operating under the right business structure, form the backbone of strategies that help your small business help you. But there’s more to it than that.
As part of our Cash Rich Business workshop (June 2 and 15), we also highlight and signpost remedies to some fairly common and impactful business mistakes. There are 7 to mull over but one in particular can get lost in the shuffle because it isn’t a remedial or systemic error. It’s a behavioural/disciplinary/planning one.
CRB mistake #1 – Spending every cent you earn
This is turnover without the profit, it’s a salary without the bonus, it’s a job instead of an enterprise. Everything you didn’t want and nothing you did. By spending every cent that your business hauls in, you are essentially rebasing your business at zero every month, quarter and year. From month to month, you, your business, its value remain at a status quo. Aside from a salary, there’s no real advantage there and the reality is that nett-nett, nothing has been gained.
This is a difficult truth for every business owner who isn’t satisfied with simply breaking even year after year. It’s frustrating because you realise that a cash rich business should be providing you, the owner, more time and happiness and less stress and worry and yet it will not and cannot happen. Not unless you are actively building a war chest and putting you and your business in a position where opportunities can be seized as and when they arise and difficult circumstances can be dealt with thanks to a cash reserve.
While every cent is being spent, that’s not going to happen. Interestingly, the cause of these sorts of cash flow stalemates is often not down to reckless or thoughtless purchases…
It’s a question of timing, not spending habits
Capital expenditure is necessary and it often signposts growth and/or growth potential but as is the case with most things in life, timing is everything. Even the very necessary purchase of new office furniture or work vehicles can hurt your business if the timing is wrong.
A sound plan formulated between you and your team of numbers people (CFO, accountant, management team) after looking at your numbers will not only tell you when to buy but how to purchase. For example, an office refit might make sense for your business and the time is definitely right. Does that mean you should empty the coffers to make the purchase? Is there an opportunity to seek payment terms, if they are not offered? What are the pros and cons of leasing elsewhere instead?
By at least asking more of the right questions, you and your team will come up with ways to ensure that you don’t make the all-too-common mistake of periodically emptying the cupboard. You cannot be a cash rich business and enjoy all the benefits thereof, if you keep spending all the cash.
For more valuable insights into how to build a cash rich business, book your place at one of our workshops and experience the impact our tips, coaching and knowledge have on small businesses.
Cheers
Spending too much time and effort shaving valuable layers off your margins to remain competitive is literally death by a thousand cuts for your business. It’s excruciating, time-consuming and unfortunately futile. But as someone wise once said, “if you don’t like the answer, change the question.” That is to say, instead of focusing on discounting (sabotaging your margin), work on ways to enhance the value of your product or service.
Some business sectors call them upgrades, others – enhancements and others still prefer to rebadge the evolution of their services or products as “next gen”, “series x” or even tap into market segmentation (e.g. value, mainstream and premium). Whatever the case may be, thought and effort invested in increasing the perceived and/or actual value of the product or service will pay off. Admittedly, it can go too far as is the case with some dashboard screens. They display attention-grabbing warnings telling you that staring at your dashboard screen can cause accidents. That said, the intent to add value is front and centre.
As the owner of a small business who not only feels the weight of family responsibilities but also accountability to employees and the business, it’s all too easy to fall into a common trap. Paying attention to noise like, “Desperate times call for desperate measures” in your business, could influence you to:
Sometimes, these measures are effective when used judiciously and/or as part of a broader strategy. However, using them time and time again sets and establishes a dangerous precedent because it:
Can things spiral out of control from there? They often do. So treat margin squeezes like a cliff’s edge – don’t get too close.
When your business is running well, you the owner have a very pleasant dilemma. Do you spend more time with the family and develop more of your own hobbies or should you spend more time with the family and invest a little time working “on” the business? Well of course the answer is, “all of the above”. However, with systems in place and good people doing great work and freeing you from the operations side of the business, you can think about increasing the value of your business. Most business owners who do not do this find that they can’t because they are bogged down with everyday stuff. With so little time to come up for air, assess the situation/market/business, there’s very little time to devote to clear and innovative thought to adding value.
You got into this business as a means of providing a sustainable lifestyle for your family and to work on something that excites you. Focusing on value will do that while adding value to your life and the lives of those around you.
The key to success is to work hard, we’re told. But they’re only telling us half the story. The often quoted saying should be amended to “the key to success is to work hard for a while and then enjoy the results.”
If you set sail on the dream of providing for your family through small business ownership and all you packed was the ability to work hard and keep working hard, you may be sailing towards frustrating and stormy waters. And I say that because I don’t believe the saying, “hard work is its own reward” should apply to what we do. A suitable reward for what we do is a decent amount of time enjoying the fruits of our labour with our family in a home very much like the one we always wanted. Put simply, you can’t feed your family with compliments about how long you can “stick with it”, how much toil you can endure, how much of your weekends you are willing to sacrifice on a regular basis.
We talk about the idea of owning a “Cashed Up Business” quite a lot. But to be crystal clear, we’re not talking about trading the life you should be living for cold hard cash. Your family time should never form any part of a business transaction or requirement. That’s yours, it’s sacrosanct and precious.
But sadly, it’s becoming easier is to get caught up in various versions of “work hard, play hard” and “I’ll sleep when I’m dead”. After all, there are few better feelings than knowing you are working tirelessly for your family and providing them a good life. Too often though, it comes at the heavy, heavy price of togetherness and a balanced lifestyle.
This may sound extreme and even out of reach for those already living within a cycle of long hours during the week, weekend admin tasks and very little sleep. But what’s the alternative? There has to be one because “no one ever laid on their deathbed wishing they had spent more time at the office.” No one!
And here’s a bold and confronting challenge that I also like because attempting it will force a change of thinking. Cut your work time by 50%. What? Not possible? Take a long hard look at your work week as it currently stands. While you’re visualising that, please seriously consider the following questions and answer them honestly:
Running a truly “Cashed Up Business” according to the definition that we are comfortable with is all about enhancing the lifestyle you currently have and bringing the dream closer to reality. This can happen for you and we would love to talk with you about the “how”.