The past few years have probably been the most difficult years for your new and young business. The effects of a pandemic, economic changes, the credit squeeze and recession can become a big problem and make it difficult for businesses to progress. But as business owners, we cannot give up on circumstances and must keep our business alive.
We need to learn how to survive in difficult economic conditions and continue to develop accordingly. Splitting the two focuses between how to survive and how to grow is a challenging task but it’s still possible to do. That's why we need to know about business survival tips in 2023.
What is survival and growth in business?
The survival of business is when your revenue barely covers expenses. You will still be in survival mode if your growing rate of inflation is 2-3% per annum. If a business continues to be in survival mode for a long time, then they will go out of business.
While growth is the long-term survival of a business by means of fund investments, drives profit and business performance, attracts new talent, brand awareness, and any efforts to make the business grow.
Growth is necessary for every business, because it allows you to employ more staff, expand products or services, attract more customers, and take advantage of new opportunities. If you are out of survival mode, you can respond to market demand, capitalize on your brand, and increase your market share. Growth does not run by itself. You need to have a business survival strategy, business plan, and run it in a sustainable manner.
What is most important for survival of business?
Shifting from survival mode to growth mode takes a fair amount of time and effort. Every entrepreneur must find their position and know some of the important factors that make them survive.
Know where you stand
Survival mode means tightening profit margins, saving cash, cutting costs, and sometimes you need to lay off employees. Unlike the growth mode which expands their operations, adds employees, and reinvests profits. But growth mode also requires brainstorms with long-term payoffs. You need to know the current position of your business whether it is at a safe level or is it worrying. If you feel that too many resources are wasted, then you must immediately find the problem point and minimize resource wastage.
There are several checklists that can be used as a reference whether your company is still in survival mode or not. Is the company's cash flow break-even? does the company have credit lines or existing cash that can be used for growth? Are there always new discussions for business development with existing staff?
If you can answer all these questions, then you are in a good spot and ready to start developing.
Focus on staff development
Every staff must have a collective mindset to continue to grow and not be stuck in the same position. If your business is shifting to growth mode, then staff need to change their performance by adopting a proactive attitude, not stopping learning new things, and taking part in providing suggestions during meetings. You cannot force some of these things on every staff, but you can give them training or courage by giving them a positive attitude.
Know why you need to survive
Business survival must have a strong reason. Even though the recession is a pretty good reason, it can't be the main reference for why you have to keep moving and growing your business. Brainstorm with staff to assess your company's strengths and weaknesses, let staff provide their educated opinions for the common good.
One of the biggest mistakes is business owners who are rigid and don't want to hear staff's opinion about what steps should be taken for the company in long-term measures. Each staff has their own input for what can be improved in the company, and this can become a shared spirit to build the company and stay alive.
Top 10 business survival tips
Here are some tips for those of you who are in survival mode and are struggling with the staff to ensure your business is running well to grow.
Have a business plan
A business plan must always be in every business and constantly reviewed. A business plan is like a route map to help business owners go in the direction they want. A good plan must have targets and a track record of whether your business stays on track. With a business plan, business owners will always be forced to think about the next step and what makes the business different from other similar businesses.
Measure every numbers
Every business owner must understand the key numbers in their business. Not only about finances, but also quantitative measures, such as numbers of inquiries, conversion rates, website traffic, capital for advertisements, etc. Great measuring numbers can be good records and understand critical key performance indicators when you want to grow your business.
Good time management
There are many time management tools that you can use to find out which tasks are urgent and which are non-urgent, try to get all of your staff to use the same tools so that the direction of the plan can be in accordance with what you want. Good time managers can become great routines and be followed by all staff. Don't let you or stagg do many things at the same time, and complete tasks one by one without being overwhelmed.
Differentiate yourself
Every business always has something in common with other businesses. Make your business unique by differentiating in the services, products, or after sales section. It's not an easy process, but you can start by asking for feedback from customers to improve service and product quality, and brainstorm with staff what marketing steps you want to take to differentiate between your business and competitors.
Look for references from successful business men
Looking for good people around you, like someone who is already successful in their field, can be your step for business survival. You need to hear their stories about how to deal with problems, how to survive, and how to thrive in tough competition with competitors. Don't hesitate to take part in seminars or add relationships for your additional knowledge in doing business.
Audit your business
Even though everything is going according to plan, you must still have a neutral outsider to see whether your business is developing positively or negatively. You can hire a professional auditor like Smebrother who can give you the best advice on how you can survive and move forward on the track you plan.
Go online
Technological developments require us to do business online. Make an online presence such as a website or social media, because every customer will see whether or not the company is trusted based on their social media and websites. There are many platforms that you can use for free to introduce your products and services, paid or free.
Manage the cash
Cash is crucial in business. Conserving your cash is necessary if you feel that the money is tight and it seems that the business is not running as it should. Keep an eye on expenses and watch for possible unnecessary costs.
Work as a team
Running a business doesn't have to only come from your own mind. You can brainstorm with staff, find out their suggestions and criticisms so you can have many perspectives on how you run your business. Take a mutual agreement to achieve success, and research together possible problems that arise and immediately deal with them carefully. Maintaining communication between the owner and staff can trigger higher morale.
Always improve
Every great business leader will never stop learning and improvising. Set aside some time to learn new things that suit your products and services, invite some of your staff to upgrade their skills. You don't need to do it every day, but you have to do it at least once a month. By learning new things, you can prepare long-term plans and invest in self-improvement.
For any business, accounting is a crucial part of running a business. From small to medium-size businesses, accounting is an aspect that must be handled with care. Even the slightest mistake can pose a huge risk to a business, could cost time, money, or lead to an audit.
Even though you can't manage everything in business finance, such as customers' buying trends or the economy, you can reduce the chances of any accounting errors. This article will discuss about that, so stay tune till the end.
What Is Accounting Errors?
All unintended accidents in accounting caused by a slip of the hand, like entering an incorrect key when filling in finances in an accounting application, or transposing a number. Common errors can occur due to many factors, from data entry to errors in principle.
There are two broad categories of accounting errors that can be detected easily, but require a closer look. First, errors that impact the trial balance like unbalanced journal entries and single entry accounting, and second, errors that have no trial balance impact like duplicate entries, omitted transactions, reversed entries, incorrect values, incorrect general ledger accounts, or incorrect accounting treatment.
What causes inaccurate financial reporting?
Innacurate financial reporting can occur both internally and externally. It creates a cascading effect and impacts your organization's health. Some of the things below are examples of why financial reports can be wrong.
Data incosistencies
Minor or inconsequential inconsistencies can create storm clouds over your operational money. For example, when you are rounding your figures in disclosures, there's a result in data that is a single digit different from your financial statements. Every slightly differing figures can make mistakes in all financial reports, and are ill-prepared.
No-post close review process
You can improve on your closing by taking notes on what needs to be fixed in the system. Any inefficiencies must be identified in post-close reviews. The absence of a review on the closing process can miss any misses on business changes, guidance updates, or costs that don't stay on track.
Incompetent staff
Inadequately trained staff can directly and indirectly cause errors, such as miscount inventory, miscount in expense reports, etc. They do not understand financial rules, and may not be up to date with accounting standards and regulatory requirements.
How can small businesses reduce accounting errors?
Every prevention is worth as a cure. The accounting departments must have control procedures in filling out reports carefully and preventing any mistakes. You can do preventive and detective controls to minimize any errors.
Use accounting software
Any accounting software or application includes error-reducing features, such as block lopsided transactions. Many software provide the highest level of automation and system integration to minimize data entry errors. You can find software that suits your needs by applying the specified standards, and policies to limit errors of principle and errors of commission.
Staff training
Investing does not have to be in resources or capital, but can also be through staff. By training your staff properly, you can provide adequate resources and ensure maximum performance. Provide staff with manageable workloads. It is better to have more than one staff for financial checking, because overstretched accounting departments are easier to generate errors.
Provide adequate review
You can review another person's work product to minimize errors. It might be challenging for companies that still have a small staff, but you can try using an accounting person, or someone professional to review accounts periodically.
Stay organized
Try to have properly organized records to reduce the overlooking of accounting transactions that can produce errors of omission. Organized records are needed in the event of a tax audit.
Reconciliations
Comparing accounting balances with bank statements, credit card statements, and loan statements requires account reconciliations. It can also apply to comparisons of subsidiary journals to the general ledger. Subsidiary journals are chronological records of frequently occurring transactions. Even though this step can be skipped by using integrated accounting software, there's nothing wrong with trying it.
Comparing actual and budgeted balances
Highlight the variances of actual balances and budgeted balances. By analyzing variances that seem unreasonable, you can find any accounting errors. For example, omitted transactions are compared with the possible duplicated entries that could make the larger expected balances, and you can see which might make sense. Another procedure you can try is to compare the actual balances from the current year and the prior year with several key performance indicators.
How to ensure financial records are accurate?
After reducing the possibility of errors, you need to ensure that your financial statements are correct. Keep up with your financial statement regularly by creating an annual balance sheet or income statement that is developing monthly updates. It will help you pinpoint concern areas and research which ones need to be fixed. If you are not familiar with the balance sheet, then you will not be able to realize which errors occur frequently or where unexpected errors occur.
If you feel overwhelmed because you have to check the balance sheet alone, get an accountant and work with you regularly. Choose a professional accountant like Smebrother as a third party to review your records and books. An accountant can see a hard look at reported numbers and patterns to determine which ones can become concerns. Having a second set of eyes will help you spot mistakes.
Having a business is hard work and full of thought. For many owners, the cost of living crisis and pandemic impact probably adds up to the problem, and is the reason why small businesses must survive despite the many challenging economic circumstances. Many small business owners have priorities for balancing the books for every month and achieving growth too. By carrying ambition and positivity, every business owner must understand how they are going to survive and take their business to the next level.
Do small businesses need to level up?
Every businessman will pursue their dream to bring their business to success. No business owner wants to be stuck in a condition and not develop their business. Leveling up their business is necessary to reach a wider market and aligned with more income. If there is a business that does not have a goal and does not understand what goals they are going to achieve next, then the business being run also cannot be understood whether it is profitable or losing.
Even though running a small business is not an easy job because you have to think about ways to survive and brand awareness, business owners must still maximize opportunities and try to bring their brand to the wider public. That's why small businesses need to level up.
What does it mean to take business to the next level?
Taking small business to the next level implies that you need to bring high quality products and services, constantly refining and improving every aspect of what you provide and how you do it. Companies that continue to strive to provide the best and always have new steps to improve something that is lacking in their business show that they are ready to step into a better position.
Knowing the results of taking the business to the next level can be seen from how many people are interested in our products or services, how much positive feedback we get from consumers, as well as evaluations from management to improve the quality of our products or services on a regular basis.
We cannot judge for ourselves whether the small business we are running is already at a higher level or not, because there must be an outsider who evaluates it neutrally. If you need someone who can assess what is lacking in the business you are running, you can hire a professional auditor to conduct an overall audit. Smebrother is your answer for conducting audits and preparing your business to the top.
There are many things that you can prepare to take your business forward and start to earn more. Let's take a look at some ways to take our business to the next level.
Ways to take small business to the next level
Doing many ways can ensure how we can do the best for the growth of our business. If you feel that in some way it will open up many new opportunities, then you can do several things at once and evaluate afterwards, until you feel the results.
Stay current with technology
Technology will continue to develop, and our efforts must be on the regular track of the technologies. Staying updated with technologies can open doors for enhancement and development. Knowing which side of technology can be utilized for our business will help a lot to save money, time, and other resources. We can assess whether our business can be aligned with the latest technology, or we have to find a way, so that our business is not left behind.
Innovation by keep moving forward
Many business owners still question why small businesses need new innovations. Innovation is the lifeblood of every business, because every business must keep moving forward and unlocking better ways to deliver what the customer wants. Providing services or products without new innovations will not make consumers happy with your services or products. If you are always thinking about targeting a new market, trialing a fresh way of working, testing a new product, offering new services or products with a new look, you will never lose sight and add new customer possibilities.
Remember, whatever changes you make must be in line with your goals, and evaluate whether they are in accordance with business growth. Ensure every employee understands the direction you are headed to achieve the same business mission.
Boost productivity
Do not get the wrong idea that productivity will increase along with the number of working hours. Having to work every day of every week doesn't always make your business run well, in fact, this hustle culture will burn you out.
You have to understand how many hours of employee time will spend their best thought and energy, without having to waste time on things that have nothing to do with work. Do not force your employees, or yourself to work more than 6 hours, because scientifically humans will only be able to fully focus on working for a maximum of 6 working hours.
Instead of making long to-do lists without timings, you can change them with quick ticks lists and flexible working hours. Give rules such as not allowing employees to use cellphones for purposes other than work, and giving time alone for employees to take a small break. Don't forget to organize additional hours or certain days for relaxation such as game time, time to chat with co-workers, and discuss something fun.
Commit to continous learning
Learning new things and continuing to upgrade knowledge is one of the keys to bringing your business forward. You need to commit to doing regular learning to build prospects for new ideas. No matter how much a person has achieved and gained, there's always room to grow. You can learn from other people who are more experienced, read books, attend seminars, or brainstorm with employees.
Continuous learning must not only be carried out by business owners, but also employees. You can involve employees to take part in online training, mentoring, self-paced programs, or integrated opportunities. You can implement what you learn into a business strategy until you can go in the right direction and help your business in the long run.
Change of marketing activities
Along with the development of technology, many entrepreneurs have carried out online marketing for their business expansion proceedings. Online marketing techniques can move your business forward faster than using a traditional approach. You need to learn some social media, and online methods to market your products and services.
Opening online platforms is now much easier, and you can get knowledge for free on YouTube or online documents. If you can use social media well, you can create a website to gain customer's trust and flourish the business professionally.
If you feel overwhelmed to carry out one of the marketing methods, you can do both traditional and online methods, and do more methods that you think will generate more opportunities for new customers.
Maintaining a business and bringing it to a better direction is the goal of every business owner. You can start from how you learn new things yourself, and continue to innovate so that your business is not stuck in just one position. You can involve employees for business development and align your business goals with them and reach the top together.
Business owners often ask: is an internal audit necessary? What if we only run a small business and have limited resources to take internal audit programs? The obvious answer is "Yes" if your clients depend on you to provide compliant, efficient, and secure services.
There are many evaluations that we can get during internal auditing, such as how are we going to make improvements? is our business meeting our goals? Are there any gaps between our procedures and policies? Some of these questions are important for us to discuss for smooth business development.
Knowing about a few things is not enough to know the reasons why internal auditing is necessary. Let's take a look about the benefits of internal auditing, the main reason about the company's needs for internal audits, and the step-by-step to conduct internal audits.
Why Internal Audit is necessary for a company?
Audits will ascertain how risks are handled by the company, judging by whether the progress is in accordance with the business plan, and whether the procedures are carried out properly. If you use internal auditors, they will evaluate and check the controls a company has.
The role of internal auditors is to provide assurance in the company's risk management, internal control until it operates effectively, and to be a defense mechanism in detecting any violations in regulations, laws, and provisions of agreements and contracts.
Internal audit is necessary for bringing value and improving a company's actions. The main aim is to increase effectiveness and evaluate risk management. Internal auditing has everything about monitoring how the business develops through internal control which has been instilled by management.
Advantages of conducting internal audits
There are many benefits that you can get when a company conducts an internal audit. The main advantage is helping the management effectively. It will highlight any incorrect progress and rectify the progress that leads to improvement and get the process efficiency.
After the internal audits are well-performed, management has the opportunity to take appropriate decisions and review performance regarding operational improvement.
Not only for companies, but internal audits will keep employees alert about their jobdesk and improving their efficiency. Auditing can examine which areas need to be improved or eliminated to maximize the allocation of resources and be of full benefit to the organization.
There are many values that can be obtained after an organization carries out internal audits, which are:
Decrement in business operations errors
Improved business permormance quality
Increased profit, cost recovery, dan decreased cost
Controlled risk management
Better communication to employees with appropriate hierarchy and clarity regarding duties and responsibilities
Preparation of reports and workflows become more structured and efficient
After knowing the many benefits of conducting an audit, you need to have a step-by-step planning.
Step-by-step to conduct internal audits
Detailed planning
Planning is the key to performing a successful audit. Several factors such as What, When, and How will the audit be must be prepared from the start. Choose whether you want to audit the whole or only part of the organization. The more time you have for planning a proper audit, the better quality and flexibility in the evocative audits.
Preparation
After planning, the next step is preparation. Prepare the audit with constructing day operations. If you have many departments, choose which department to inspect and evaluate first. The preparation step involves the results from previous internal audits and examining them with the current results.
Perform the audit
After the preparation is complete, do the audit. Carry out inspections and determine whether the organization meets the standards or requirements to meet the purposes or necessary certification. Auditors will collect information and look for evidence from several sources, such as employee interviews, documentation, or forms. After the auditors accumulated a record, they will begin calculation, examination and evaluation.
Publishing
Wait until the internal auditors have finalized their audit. They will publish the conclusions in a report. The report will pinpoint all the issues deliberated and emphasized on areas that need to be corrected, paid attention to, and require development. The results of the audit report will be delivered and discussed with management.
Act
Auditors will make suggestions and measurements as a final phase, then management can start implementing areas that need improvement.
Conducting audits should not be too infrequent, because there must be comparisons between previous audits and recent results. If you don't conduct audits regularly, then management cannot find which areas are problematic or need corrections. So, the more problems there are in an organization, the more it makes sense to audit more frequently until a solution is found and changes are implemented effectively.
If you already understand how an audit has a big impact on a company, you can hire professional auditors like Smebrother and carry out company improvements as fast as possible.
Starting a business and trying their best to develop it is the goal of every businessman. After preparing many things for the running of the business, the next step is deciding how to manage and structure your finances. If you study small business accounting, you'll save time to get simple business finances and reduce the stress at any given moment.
New businesses need a strong financial foundation to keep the business steady and keep the money on the right path. If you have never known about how to structure business accounting, let's take a look about the basics of small business accounting in 2023.
What is small business accounting?
All processes of recording, analyzing and tracking the financial transactions of your business. The business accounting will translate numbers into a comprehensive statement about business profitability. Many business owners think accounting is a boring aspect because they can't freely follow their business plan, but it is also necessary to maintain cash flow and avoid piles of paperwork.
The business accounting will track all the in and out flows including sales, purchases, liabilities and payments. For small businesses, it will be bookkeeping, creating financial reports, and filing tax returns. Accounting will help any business owner pay attention to the values and health of the company and make better decisions about short and long term success.
How to do accounting for small business?
The most basic method to do business accounting is manual recording with a pen and paper, but it takes a lot of patience and has a high error rate. At least two people must do the same recording to avoid misses. To start properly, you can use accounting software or hire professionals like Smebrother.
If you are still confused about choosing between hiring a professional, looking for an accounting software application or doing it yourself, there are a few things you need to do first.
Choose business structure wisely
The business structure will affect everything you do in your business. There are four basic business structures: Sole proprietorship, Limited liability company, partnership, and corporation. If you are a single owner, you can choose a sole proprietorship because it requires little setup, but there is no legal differentiation between your business and you as owner.
An LLC is almost the same as a sole proprietorship, but is not responsible for business debt. You can have multiple partners and be more flexible in filing business taxes. If you run a business with more than one person, you can share ownership through partnerships. Each partner is responsible for developing the business, with detailed duties and responsibilities in a partnership agreement.
Or the last option, corporation. It's the most complex business structure, but has many benefits, such as lower corporate taxes, and legal protection. But remember, choosing this one is complicated and requires a lot of money.
Open a business bank account
Every business structure requires a business bank account. Even if you choose a sole proprietor, it's good to have a separate account rather than your own. Having a business bank account makes it easier for you to file business taxes, increases the confidence of anyone who wants to do transactions with you, and separates the business income from your personal funds.
Choose an accounting method
Don't just rely on simple accounting experience just checking accounts at the end of the month. You must understand the difference between the cash accounting method and the accrual accounting method.
The cash method is the simpler method and is suitable for freelancers with limited accounting activity. You have to recognize revenue and expenses when money comes out of a bank account or changes hands.
The accrual method provides an accurate picture for business health, because it recognizes revenue when earned, and only sees expenses when they occur. It's more complicated than the cash method.
Learn how to manage income and expenses
Handling income and expenses is the same as handling the majority of financial transactions. You need to learn how to invoice. White an invoice to provide customers an easy way to pay. You can link to online payment options, or explain an easy way for customers to pay you.
Next, pay your bills in time, because good credit is important for every business. Don't forget to record all of your expenses to pay accurate taxes at the end of the year.
Enter all financial transactions whether you record them manually, or use accounting software. Don't forget to do it regularly and properly entered.
Reconcile bank accounts
Many business owners skip this step because they are already using electronic banking. But don't skip this step because reconciling bank accounts each month is necessary. It will help you to pinpoint any bank errors and identify items that must be in the general ledger.
Run financial statements
Once all transactions have been entered, you are ready to run financial statements. Enter adjusting entries by starting with an unadjusted trial balance and help locating any out-of-balance accounts. After everything is done, look over the financial statements to analyze how your business is running. You must run three financial statements each month: profit and loss statement, statement of cash flow, and balance sheet.
What are accounting best practices for small businesses?
The key of accounting best practices is to separate personal finance and business finance. You cannot put these two things together, because business finances will not be healthy because they are mixed with personal matters. Maintaining accurate records by checking at the end of each month, as well as tracking income and expenses. Every small business requires neat and appropriate records in order to properly analyze their business performance.
Don't let a lot of mistakes in income and expenses. Do not let expenses be greater than income, because it can have a big effect on the course of your business. Prepare several business plans to prepare for unexpected costs, and keep the finances in check.
Do you already know the basics of small business accounting? If you still feel overwhelmed with business accounting, you can consider getting an accounting software or hiring professional accountants.
Companies tend to choose employees with high qualifications in the recruitment process. It was only the beginning. Maintaining employee performance to keep showing their best is more important. If companies want to achieve long-term success, they must recognize that their employees are valuable assets to them. When an employee does not perform well, it will affect the company's achievement.
Employee performance can be observed from the work quality completed, the ability to meet deadlines, as well as the way they communicate both with customers and colleagues. Many companies find it difficult to improve employee performance and motivate them. It only needs a simple-basic thing, that is better communication.
Tell the employees what kind of performance we expect them to perform, and give them feedback on their work progress and result. Give the best commitment to do it regularly, day by day, to support our employees in improving their performance. But first, make the expectation clear.
How Do You Define High Performance?
The term "high performance" may be interpreted differently by many people. We can say high performance is achieving better than expected results consistently. Other literature says high performance is the capability in dealing with a high standard. So, a high-performing employee is someone who consistently overachieves the expectation set for them.
Setting clear goals and identifying how to asses employees’ performance is necessary before improving their performance. Here are some ways to define high performance.
1. Map employees according to their characteristics, skills, and abilities to set a baseline. Identify the high-performing employees of the team and find out what makes them better than their peers when performing the same role. Discover the traits, skills, and competencies that enable them to drive them success in the role. We can set a baseline for every specific role and use it to improve all team members’ performance.
2. Connect individual outputs to strategic value. Every role has potential impacts. Review the job descriptions and determine the most expected outcome for each role. Identify which outcome has the most strategic value and sort the tasks of each role according to priority. It will help employees to focus their best efforts on those outputs when plays a specific role.
3. Generate a standardized criteria to assess employees performance. Evaluating employee performance so far has been difficult, because there are no clear criteria. Often managers as assessors are subjective, only using their perceptions or preferences. Without clear criterias, managers can only estimate whether the performance is adequate. Managers should assess each employee performance based on the outcomes achieved. To consider whether an employee performs high-performance, list the specific outcome for each role after setting up the baseline and determining each role strategic impact.
Why is it important to improve employee performance in a workplace?
Employees' performance plays a critical role in the company's success. If the employees are productive and well-motivated, it will be easy for them to meet the targets. The more employees perform high performance, the faster and easier the company achieves its goals. Otherwise, the company may spend more time and energy to get the employees nailed on the target set up for them.
Maximizing employee performance makes the employees work more efficiently. It will make the company accomplish its goals earlier and cost more effectively. Moreover, this can increase employee satisfaction with the company so that employee turnover rarely occurs. We all agree that the employees' experience in a role influences their performance. If it happens too frequently, it will affect the quality of the work.
Top 4 Ways to Improve Work Performance
There are many different strategies to improve employees' work performance. You can manage the daily practices better and create better communication. You can start defining the expectation clearly, communicating effectively, listening more, avoiding micromanaging, creating a performance improvement plan as needed, conducting employee training, and encouraging feedback.
You can also improve employee performance by creating a better workplace culture. Here are the top four ways to improve work performance.
Demonstrating authenticity
Show that the company supports and respects authenticity. Leaders must demonstrate the company's values in their daily actions. It will increase employee loyalty and respect for the company so that their performance will also increase. Leaders also need to reward employees for their high performance, for example showing verbal recognition in meetings to increase employee pride in their work. So, there will be good collaboration between the leaders and the employees to find better and faster solutions.
Creating a culture of a transparency
You can create a culture of transparency by letting employees feel the performance of everyone in the company so they can see whether their contributions fit in. It can make everyone motivated to work better and get higher results. You can also declare objectives and main results framework to create transparency. The employees can see how their work relates to the company's goals. With this perspective, employees can build self-awareness and can improve their performance.
Encouraging Stretch goals
Get the employees to move out of their comfort zone by encouraging them to set stretch goals. Stretch goals are ambitious goals and may seem impossible to achieve. It can make them continue to do self-improvement and learn. Even though this seems risky, encouraging employees to set stretch goals can make them feel that the company trusts their capability and values their contribution.
Appreciation
Employees who have worked according to expectations and targets need to be given appreciation. You can give appreciation by making them employee of the month to encourage others to be on the same spot. Don't forget to give souvenirs or corporation gifts to lift their spirit to pursue being the best every month. If employees are well motivated and keep at good performance, you can plan to hold a field trip or office vacation once a while.
How to improve employee performance is crucial in helping the company achieve its ultimate goals. The company should not hesitate to invest in one of its most valuable assets. Many companies provide proper training to boost their employees' performance. It might take time, cost, and effort, but it will be worth it. If the employees' performance is improved, their productivity is also increasing. They will accomplish the targets better and faster. So, the company needs less time and energy to achieve its goals. It is one step closer to the company's success.
If you're looking for a reliable source of information and resources for small and medium-sized businesses, look no further than smebrother.com. Our website offers a wide range of articles, guides, and tools to help entrepreneurs grow their businesses and overcome challenges. Whether you're just starting out or looking to take your business to the next level, our team of experts is here to support you every step of the way. Check out smebrother.com today and see how we can help your business thrive.