Your business is off the ground, and you have great people in place. The heavy lifting is behind you on this entrepreneurship journey.
Now it’s time to focus on your employees and the stability of your young business. Retaining your best workers is one of the more important ways you can maintain your company’s quality standards.
It can be a major drain if you find yourself in a constant hiring loop, forced to replace employees who move on. Keep those valued employees by welcoming their suggestions and encouraging them to be emotionally invested. Reward their efforts in meaningful ways by giving them more responsibility and making them feel valued.
Here are some strategies to consider when managing your workforce:
- Hiring the right people can be a challenge. So, when you find them, do all you can to hang onto them.
- Be clear on your goals for employees and be available to answer questions and offer guidance.
- Learn and respect your employees’ abilities. This will help you rely on their instincts and give them room to grow.
- Delegate responsibility and don’t micromanage. Encourage your employees’ ideas and, whenever possible, provide opportunities for them to build confidence by taking on new and challenging tasks.
- Reward them — not just with money. They will also value novel perks such as a gift card, a spa day or a dinner for two.
- Conversely, if an employee does something you don’t approve of, say so — but never in front of customers or other staff members. A good rule of thumb is to praise in public, while making critical comments in private.
- Reconsider your hiring dynamics. Prospective employees are often less interested in money than in feeling valued and safe. Keep that in mind when you build relationships with prospective employees.
Cash Flow is Key
You should always have enough funds in your checking account to cover your monthly bills and payroll needs. If not, consider these four steps now:
- A line of credit with your bank can help weather seasonal difficulties and the occasional crisis. You’ll pay no interest charges until you draw on it.
- Age your accounts receivable by grouping them as current, 30-60 days and over 60 days; don’t let unpaid accounts linger.
- Negotiate longer payment terms with suppliers in case ruined stock needs to be replaced immediately and unexpectedly.
- Keep track of when your expenses come due — monthly, quarterly and annually — and create a schedule to avoid being caught short-funded.