Work – Page 9 – Sam Makhoul

December 2, 2011

15 TIPS for BUSINESS

If you own a business or manage a business unit for a major corporation these following tips will shelter you from the storm that’s heading our way.

Look after your loyal staff – but start planning cuts. This is inevitable if you want to survive. I know this sounds a little ruthless but when the crash is over, you owe it to your hard-working loyal staff to maintain a healthy company. Focus your energy on partnering with your loyal staff. Pay what is fair and necessary to keep the talent you have but don’t tolerate mediocrity. Expect and demand excellence.
Start a rainy day fund – Put money aside – put 30% of your profits for the next 6 months into a reserve fund. After 6 months reduce it to 20%. After 12 months reduce it to 10%.
Bullet-proof yourself from the Tax Office. Ensure that your bookkeeping is accurate and up-to-date. During tough times the tax office will be looking to get it’s revenue any way it can. Anyone with a weak set of financial statements will be vulnerable to an audit that will drag on and on and take you away from managing your business.
Spend less on new technology – extend your hardware warranties and do not upgrade your software unless you absolutely have to. Software upgrades not only cost you more in fees but also in implementation and training.
But, don’t save money by doing something that costs much more in time. Don’t skimp on purchases that will otherwise make you more efficient.
Move operations out of expensive CBD rentals. If you are in retail, boost your online presence and turn your CBD retail space into a showroom as well as a point of sale. The Apple store is one perfect example. So is the Nespresso store.
Cut your lease time – If you rent showroom or office space, make sure your lease allows you to leave on short notice or allows for rent reductions in line with the market.
Do not renew all your supply contracts just yet. There will be bargains for real estate space, telecommunications (voice and data), computers, office machines etc… Try and not lock in for longer than 12 months. If suppliers insist on a 24-month contract ask for a cost review clause in 12 months.
Hire staff from your local area. People that spend too much time commuting are much less effective at work, period!
Cut down on unnecessary business travel. It’s costly and takes your staff away from their families; which is not good for morale. Happy family equals happy work. Use teleconferencing or video conferencing.
Sell your business – If you have been thinking of selling your business, don’t wait any longer. Today’s circumstances may be your best opportunity for a long time. If you decide to hang on and ride out the storm, then read the following 8 Tips to Business Excellence.
Reduce Inventory – If you are in retail, reduce your stock levels. However, if your business relies on the supply of specialty items that are difficult to obtain, stock up.
Delight Your Customers Even More – The customer will be even more ‘king’ as business competes for a dwindling share of wallet. Share of heart will become more important. So do what the likes of Apple and St George Bank do. Go beyond the call of duty when serving customers. The 9th and most important tip for Business Excellence.
Work Harder Not Just Smarter – Here are 3 Tips to keep you focused on building your business
Start planning for the upswing, but don’t be premature. The media will be quick to talk it up because that will be the sexy story. Don’t be the first to jump in and be bullish. Wait for two quarters of good economic data before you upscale and invest in new capital. Being in the right position could ensure success for years to come.

November 14, 2011

7 Questions I ask myself at work every morning

Following on from my mantra that the answers your looking for are found in the questions you ask yourself:

Is our culture and technology evolving with customer needs?

Are we innovating and improving on operational efficiency?

Are we making a difference to society?

Are we putting money aside for future needs?

Are we constantly learning?

Is the team working with passion and serving clients from the heart?

Do we inspire our customers?

The moment you stop asking these questions is the moment you start falling behind.

November 1, 2011

Does Crime Pay? 5 Tips for Wall St

Criminal enterprise is the fastest growing sector worldwide. Why? Government regulation, taxes and red-tape is driving entrepreneurism underground. There is a perception that mainstream business is corrupt anyway, as is evidenced by the activities of Wall Street. So why bother doing it the hard way?

Got me thinking…is there anything we can learn from criminal enterprise?

At the outset I must point out that I am not condoning criminal conduct or criminal activities. I am making an observation. Here are 5 observations (or tips), which we in mainstream business can learn from the underground.

You have to earn respect. Titles mean nothing.
No-one gets paid until a job is finished and results achieved (Wall Street take note).
Develop networks of people you can trust and who are loyal.
Your word is your honour and a handshake is binding.
Business is always personal – if it’s not then there is no emotional connection to the mission and no accountability to customers.

October 24, 2011

Ask Your Boss Out to Lunch

Many years ago when I was a young lawyer, every so often I would ask my boss if he wanted to go for a walk at lunch and eat a sandwich in the park. It was a great way to connect and we rarely ever talked about work during those walks. We talked about family, sport, cars and world affairs.

Recently I saw him at a function and he reminded me about those walks and how he always appreciated the company. That was the thing he most remembered. He didn’t remember the cases I won or the fees I earned. Nor the new clients I brought into the firm.

It made me think, at the end of the day, whatever our title and our position, we are humans that crave connection. Always remember that. Whether you are going for a job interview or watching your idol at a music concert, the person you see yearns for the same things you do – food, water and honest connection.

It reminds me of something a nurse once told me. (He worked in a nursing home looking after the elderly). He said, “Sam, any human physical ailment can be managed, but loneliness is very painful for the heart. Humans need humans. We need company as much as we need air to breathe. We need that connection with others. Without it, we die emotionally. And that is the saddest thing to witness.”

I know that Mondays I usually post something on work performance but I thought I would mention this need for human connection because, as much as charity starts at the home, so it also does at work. Being charitable with our time and company is what the other person sometimes needs the most. It does not only have to be your boss that you ask out to lunch. It could be someone that just started at work or someone that needs an ear. You never know. This connection might also lead to improved performance at work. I did some of my best work when I forged a powerful alliance with someone at work.

September 7, 2011

READ: Work Harder, Not Smarter!

I must confess something. It’s rare that I get annoyed at anything but I am really tired of reading adverts and books on how to get rich quick or how to work less and earn more. I am also tired of the mantra ‘work smarter, not harder’.

We are all working smart these days but there are not enough of us working hard. I believe that is what’s wrong with Western World economies. We do not lack intelligence. We lack a strong work ethic. We constantly focus on making money quickly.

I want to share with you THREE pieces of advice that I give to my business-coaching clients:

1. Build your business brick by brick, day-by-day. There is no easier way.

2. Stick to what you know best. Do NOT diversify into areas of no competence. And do not invest your money on the stock market. Re-invest it into your own business where you have control. That’s where you will make the most money. I knew a guy who was one of the top mortgage brokers in Sydney. He made a lot of money. Instead of opening more offices and hiring more staff and expanding he invested in a café. He lost $400,000 and even worse took his eye off his business. He lost it all and had to rebuild.

3. Stay focused on the micro. Ignore what is happening with the macro-economic picture. You cannot control that. Focus on what you can control. And don’t watch the business news. It is full of bad news and paralyses you into inaction. (nobody ever reports the good news) There are a lot of businesses that are quietly making a lot of money because they have a great brand, a great product, and they stay focused on adding value to their customers. Look at apple!

Anyway, that’s my rant for the week. Hope you wok harder, stay focused and run your own race. Oh and don’t forget to work just as hard on your health and family life 😉

Sam.