Don’t Underestimate How Much Capital You Need To Grow

I recently had the pleasure of speaking at the Craft and Hobby Association’s (CHA) Winter Conference in Anaheim, California. The CHA represents small businesses in the craft and hobby industry which together generate around $29 billion in domestic revenues. I was energized by many of the participants who attended my address as they told me about their plans to move forward “full steam ahead” with their growth plans despite difficult economic conditions. After my address, I spent about an hour speaking with attendees and identified a key concern which is shared by most business owners: how to figure out how much capital is really needed to grow. The overwhelming majority of small business owners that I have encountered always seem to underestimate how much money it really does take to grow.
Failing to prepare a proper growth budget can have catastrophic consequences on your business. It’s very painful to set out on a growth plan only to find that you have run out of cash when you are on the cusp of achieving your goals. This happens to companies of all sizes and is most prevalent among business owners who have never managed a process of rapid growth.
When preparing your growth budget, keep in mind the following recommendations.
Your best case is not your base case
Many small business owners prepare a single revenue projection for their growth plan and calculate their cash needs based on this scenario. Some wisely add a cushion to what their projections indicate they need and feel comfortable that this amount of money will allow them to achieve their needed growth. Unfortunately, many revenue projections aren’t realistic or assume that almost everything will go as expected, something that seldom happens. When I look at a revenue projection I always ask “is it realistically possible for you to do much better than this?” If the answer is no, then I tell them that they have just shown me their best case scenario. Their base case—the realistic one—needs to be less aggressive.
Run a cost sensitivity analysis
Scenario planning is also important for projecting the costs associated with your growth. If you have been running your business for several years, then you should have a good feel for your fixed and variable costs and your projections should therefore be defensible. This confidence can lead to overreliance on the projections. Surprises on the cost side can also kill a growth plan and for this reason you need to run a sensitivity analysis.
This analysis consists of modifying your assumptions for key costs and analyzing the impact of those changes on your overall projections. It’s important to run sensitivities on all important costs and combinations of costs. What would happen to your plan if you have to change suppliers and spend 20 percent more for your raw materials? And your liability insurance rates were to double? Or what if gasoline reaches $5 per gallon as some economists predict? Your model still needs to work under these new assumptions.
Work with someone with experience
Experience is the best teacher, but not the cheapest one. Rather than “learn from your mistakes” it’s better to work with someone who has already accomplished what you are setting out to do. Make sure that someone on your team (a partner, investor, advisor or consultant) has specific experience growing your type of business to the level you want to achieve. This is the best investment you can make towards your future success.
Executing a successful growth plan is very realistic for small businesses because there really is almost unlimited opportunity relative to your starting point. But make sure you do it right and follow these recommendations.

12:33 by Robert dawne · 0

Top 7 Ways to Get the Most Out of Facebook

The goal for most small businesses on Facebook is to build relationships with current customers and future prospects. But random daily posts, "likes" and comments often do not produce the desired results. Fathom Research helps businesses understand what actually drives a deeper relationship with their customers. Here are some of the strategic activities they recommend (with my examples) that help build strong Facebook relationships.
1. Invite interaction
Let visitors know that your company is listening by responding ASAP (hopefully within four hours) on all posts. This is especially true for customer service inquiries, raves or rants. For example, Sage Peachtree does an excellent job helping customers that have questions about using their accounting product through their Facebook page. Reply not only on your own company's posts, but to those of your "friends"—and their friends to make further cross connections possible.
2. Tell stories
Stories make any brand come alive. Encourage the posting of examples of customers using your product. Scottevest has a gallery of photos from fans on their Facebook page from all around the world wearing their innovative travel clothing in the wildest places. This will also inspire everyone's imagination as to what is possible with your product without you actually selling it to them.
3. Exchange ideas
Ask questions and encourage creativity. Don't be afraid to tackle real issues that are important to your fans and your brand. For example, after the President’s State of the Union address, you can post “How well has President Obama done supporting “every entrepreneur that wants to become the next Steve Jobs”? This will elicit of alot of responses from both sides of the aisle.
4. Celebrate everything!
Pause to commemorate milestones or seasonal traditions. For example, on their Facebook page, American Express OPEN recently celebrated Martin Luther King’s birthday by asking, “...it’s a great chance to reflect on our own dreams. What is your greatest dream as a business owner?”
5. Make it fun
It is critical to connect with your fans' passions. For example, United Linen has a multipart video series on how to fold napkins on their page. Have visitors fill in the blank like American Express OPEN, who has a "Fill in the Blank Friday" feature! Sponsor contests or promotions by offering deals or other giveaways. Urban Oasis Spa offers a "free hot stone massage" contest during the cold Chicago winter and visitors can enter by just liking their page.
6. Show personality
Expand your brand and don't be afraid to be bold or irreverent. FibreGlast Developments Corporation shows off "Fiber Carbon Star Wars Star Troopers." This is important because some posts on your Facebook page need to be a break from talking about your product and company. Sage Peachtree tells jokes on their Facebook through a “Friday Funny” feature.
7. Make connections
Share your content with other complementary sources. As a result, they will more likely share their content with you. This can be done effectively by championing a cause that is in alignment with the values of your brand. For example, (RED) has raised over $180 million and helped 7 million people fight AIDS. These types of connections make your company relevant to everyday life.
How has your company effectively built relationships on Facebook?

14:00 by Robert dawne · 0

12 Engaging Facebook Posts to Consider

If you are wondering what would help you grow your Facebook community organically, the answer is relevant interesting content and engaged community managers. But even the best community managers sometimes run out of creative ideas.
Here are the 12 types of posts that in my experience consistently produce high levels of engagement.
1. Pictures. Pictures, images and photo albums are rather popular with the fans. One of the top five Intel Facebook posts of 2011 wasn’t even technically a post; it was the photo album featuring images of new Intel museum in Santa Clara. The post was liked over 17,000 times and with over 1,000 comments. And it isn’t the only example.
2. Fill in the blank. Let fans share their own perspective with you. Example would be “I love technology because _____” Again, one of our highest performing posts.
3. Questions. Asking fans to share their story or point of view is one of the most effective ways to increase engagement on your page. Though simple, this type of post is often overlooked by community managers. “Real or fake?” “What do you think?” “What is your story?” Or just plain “PC or Tablet?” would do.
4. Trivia. Your real brand fans as well as those who are not very well acquainted with your company would appreciate a little bit of trivia or sharing of historical company facts.
5. Quotes. People love quotes. Use them!
6. Videos. This one is a no-brainer. Videos, especially the unusual or funny ones, are always welcomed by fans. Rich media like pictures and videos are also one of the most shared formats on Facebook.
7. Holiday wishes. Show the human side of your company by wishing your fans happy holidays throughout the year.
8. Celebrate milestones and say thank you. Did you reach an important milestone? Celebrate with the fans! When Intel reached 500,000 fans, 1 million fans, etc. we celebrated on our Intel page by changing the profile picture and thanking our fans for being a part of our amazing community. The response was overwhelming.
9. Call to action. If you want your content shared or your posts to be liked or commented on, ask! Simple “Like [or share] this post if you agree” or “What do you think?” would do the trick. However, use it sparingly.
10. Offer interesting challenges. Quizzes or trivia questions might be interesting to your fans. Earlier this year we posted a comment written in binary code on the Intel page. Our fans loved it!
11. Open the kimono. Offer behind the scenes videos or the making of videos or posts that will give your fans exclusive inside scoop on what’s happening within your company.
12. Polls. Want to know something? Ask your fans! And if you run out of ideas or if your content calendar suffers from the “boring bug” just ask your fans what they would like to see on the page and deliver on their expectations.
And whatever you do, don’t automate your posts. Show your fans you care enough about this community to create a custom message specifically for them every day. Good luck!

13:15 by Robert dawne · 0

Top 10 Free Google Chrome Plugins for Small Businesses, to Increase Productivity

Since Google launched its Chrome Web store in December,
extensions have sprung up to speed up to simplify the messy
world of Internet browsing. If you're a member of the club that
spends more time looking at screens than people, some simple
browser add-ons can streamline many of your daily processes
on the job.
We brought you a list of great Google Chrome apps for small businesses shortly after the store's opening. Here are 10 new
ones that are sure to increase your web productivity while at work.




1. StayFocusd

We understand it's a bit much to ask you to go completely cold turkey from Angry Birds. Fortunately for the Internet-browsing addicts out there, StayFocusd puts a cap on a list of sites you choose to limit. Whether you're wasting time on social networks, blogs, shopping or gaming, you can customize your list of restricted sites. Then, set your limit to the amount of time you will allow yourself to waste.
2. Large Document


Say goodbye to e-mail bounce-back notifications for documents over 10 megabytes. The Large Document app lets you transfer what e-mail won't, and it's simpler than an external sharing site like YouSendIt or Dropbox. The Chrome extension converts your file into a URL you can share. An added bonus? No log-in information is required.
3. Docs PDF/PowerPoint Viewer

Docs PDF/PowerPoint Viewer ends the frustrating restriction of needing to download Doc and PowerPoint files to view them. Rather than wait to read several pages sent in e-mail, open Docs, PowerPoints and PDFs directly in your Chrome browser.
4. Yast

Whether you're timing your hours billed to clients or how long your lunch meeting lasted, Yast makes timing your work easy. The app generates time sheets you can comment on and color codes so you can organize all your time-related needs.
5. TabCloud

Sure, tabbed browsing makes everyone's life easier. That is, until your tabbing gets to be a disorganized mess. TabCloud lets you save browsing sessions for a later date. If you're researching a project, just save the set of tabs and return to the bunch at a later time. And, because they're stored in the cloud, you can access your tabs from any computer.
6. Screen Capture

Using Screen Capture, you can easily grab stills from your browser. More transferable than copy and paste and faster than taking notes, screen shots will speed up your work online.
Fun fact: This is the very app that took the photos for this gallery!
7. Popchrom

Expedite your typing by turning your commonly used phrases into abbreviated shortcuts. Let's say you add "lmk" as a shortcut for "let me know if you have any questions." Once you have the shortcut saved, all you need to do is place your mouse over the abbreviated shortcut—in our case, "lmk"—and press ctrl+space. The expanded text will replace your abbreviation.
8. HootSuite

HootSuite puts all your social networks in one simple dashboard, updated in real time. Track traffic to your site, monitor conversations and schedule messages using this handy app.
9. Read Later Fast

If you often find yourself distracted while reading every interesting story you stumble across during the work day, Read Later Fast can help you kick the habit. Rather than forgetting about all those interesting links, this app will store your stories in an easy to use inbox for reading at a later time.
10. Google Calendar Checker

Rather than navigating between your work and your schedule, this easy app counts down until your next engagement in the corner of your browser. Google Calendar Checker's simplicity keeps you focused on meeting your deadlines and preparing for engagements.
Let us know in the comments if you are using any of these apps. Which work for you? What did we miss?

11:42 by Robert dawne · 2

5 Ways to Use Facebook to Grow Your Real Estate Business

Facebook has become an integral part of marketing for many realtors. It's a way to spread the word about their services and reach new clients. In many ways, Facebook is the online version of what successful realtors have been doing for years: meeting new people, establishing personal connections and letting them know about their real estate business. But as many agents have learned, it takes more than regularly posting status updates and adding new friends to successfully use Facebook to increase your revenue.
Here are six secrets from agents who have turned Facebook friends into new clients.
Make interesting and relevant status updates
Many real estate agents use Facebook primarily to post their listings or to directly promote their real estate services. But other realtors caution against this strategy and have found that posting status updates that help establish their knowledge in the field, such as trend reports and articles of interest to people buying and selling homes, yield better results.  “I also like to post things to do in New York City that can appeal to transplants and prospective clients alike, enriching their reality or feeding the imagination,” says Caroline Bass, senior vice president and associate broker at Citi Habitats in New York.
Let your personality shine through
Because realtors are in essence selling themselves to potential clients, many use their personal Facebook page instead of a business page to promote their real estate services. Nick Jabbour, vice president of Nest Seekers International, uses one page for both business and personal purposes. “It serves as a humanizing factor, where my clients can get a feel for my personality, and potential clients get to know me. I stay fresh in their minds,” Jabbour says.
Zak Bushey, a realtor with Southland Properties, tries to keep his Facebook posts at a 5:1 ratio, with one post being related to his real estate business for every five that are personal or humorous. He says if you make only business-related posts, you come off as cold, but that if you post nothing about your business, then friends could forget you are a realtor. “Unless you make offensive or inappropriate comments...don’t be afraid to broadcast your personality,” Bushey says.
Automate the friend process
One of the best, most useful things about Facebook is that you can easily create a network of potential clients, but to do that you must find people to connect with and send them friend requests. Since it’s easy to forget to send a new contact a Facebook friend request, Jabbour has automated the process. “I use Outlook Connector, so every time I get an e-mail from a potential client or colleague, I can add them to Facebook immediately with the integration without having to search for it,” Jabbour says.
It is also important to connect on Facebook with contacts you make in real life. During the week, jot down the names of the people you meet, and keep any business cards you receive. Then dedicate a day of the week to check and see if your new contacts are on Facebook, and send them friend requests.
Reach out to Facebook friends
One of the most important aspects of using Facebook is to reach out to the connections you make through Facebook and establish a personal relationship. Bushey says that when someone he does not know comments on his page or “likes” a photo, he sends them a private message to follow up or simply thank them. “This gives them a feeling of a personal connection,” he says. He also posts his cell phone number and e-mail address in all business-related posts to encourage potential clients to contact him. Other strategies including commenting on their posts, wishing them happy birthday and "liking" their photos.
Tag posts and photos
Tagging photos is another strategy that agents successfully use to increase the number of people who see their Facebook posts. When someone is tagged in a post, everyone on the other person's or company's friends list also sees the post. “If you're sharing a great news article and that company has a page, tag them so your post is seen on their page, as well as your own,” says Bass of Citi Habitats.  You can also use this strategy to tag clients who you are working with, but be sure to check with them first.
One of the most important things when planning your Facebook strategy is to integrate it into your overall business strategy. Facebook should not be an afterthought, but an important component of building a successful real estate business.
Jennifer Gregory is a journalist with over 17 years professional writing experience. Jennifer blogs via Contently.com.

19:21 by Robert dawne · 1

Add to Your Network: 5 Best Business Contacts

Even if your marketing budget is tight, there’s plenty you can do to build your business. Networking is one of the most cost-effective ways to win new business. Often, it won’t cost you a dime, but to reap the rewards, you have to weave it into your daily business activities.
Here are five types of contacts to make in the coming months.
1. Smart people in other industries
People in other industries can alert you to best practices that you can bring to your own arena.
“It’s about exchanging information,” says Ken Tencer, CEO of Spyder Works, a branding and innovation firm in Toronto and New York. He is co-author of The 90% Rule, which looks at how to evaluate and effectively act on business opportunities.
How do you find the right people to add to your brain trust? Ask yourself who to exchange information with that would benefit yourself and your business, says Tencer. Don’t know many professionals outside of your field? Join a high-level networking group, such as Vistage, that puts you in the same room with CEOs from unrelated industries.
“It really opens your mind,” Tencer says. “It gives you feedback on what you could be doing differently, by learning from best practices in other areas.”
Those who don’t have time for ongoing group meetings can attend trade shows that attract participants from many industries. Go to the workshops and seminars where you’ll have an opportunity to talk with other business leaders, suggests Tencer.
2. Amplifiers
To spread your company's message, get to know like-minded industry thought leaders, journalists and social media users with a significant following. These people will help you reach their audiences, says Tencer.
You don’t have to meet such contacts face-to-face to build a strong working relationship. One good way to meet amplifiers, says Tencer, is by offering useful information based on your professional knowledge. Post to social networks such as LinkedIn.
3. New prospects in growing industries
A good 44 percent of small business owners expect economic volatility to make it harder to reach their business goals for 2012, according to the Guardian Life Small Business Research Institute.
You may lose some sales to clients who are in bad financial shape in today’s economy, but you can compensate. Add new customers who are in thriving industries.
It’s not likely to happen by accident.
“If you want to be in health care, make it a point to do some homework,” says Andrea Nierenberg, author of Nonstop Networking. She is president of The Nierenberg Group, an executive training, recruiting and consulting firm in New York.
Identify key players in the market you want to reach, and make a plan for contacting them, perhaps through a site like LinkedIn or with introductions from professional contacts.
4. Savvy suppliers
When you buy products and services, take the time to ask your suppliers about what they're seeing in the marketplace. Consider inviting one or two to your office this year to make a brief presentation.
“They can definitely tell you about trends they have seen in your industry and in parallel industries,” says Tencer. Suppliers who do business internationally can offer a particularly comprehensive perspective.
5. Friends of friends
Forget the old taboo against mixing business with pleasure. Your social circle, from lunch mates at the office to high school friends, can be a great source of referrals. This works as long as they are familiar enough with the quality of your work to recommend you confidently to their contacts.
How do you foster unsought referrals? Be a recurring source of help to others in your personal, professional and volunteer networks. When you pass along a job lead or make introductions to a potential client, says Nierenberg, others will naturally want to reciprocate.
If you’ve lost touch with a friend, Nierenberg suggests that you set up a Google alert with that person’s name. News clippings and blog posts that pop up may give you conversation starters to use in an e-mail. Of course, if a buddy makes a valuable connection, you’ll want to take them to lunch or send a small gift.
“The better the relationships you have with people, the more likely they are to make introductions for you,” says Nierenberg.
Elaine Pofeldt is an independent journalist specializing in entrepreneurship. Her work has appeared in TheAtlantic.com, BNET, Crain’s New York Business, CBS Moneywatch, Good Housekeeping, Inc., Working Mother and many other publications. A former senior editor of Fortune Small Business magazine and editor of its website, she does editorial consulting for online and print publications.

12:05 by Robert dawne · 0

Top 4 Mistakes When Franchising Your Business

Michael S. Rosenthal has childhood issues relating to franchising. No, he isn’t damaged by a bad experience; he’s regretful of what could have been. Back in 1957, the same year as his birth, his father Harvey opened a hot dog joint on the north side of Chicago. One day, a man came in and asked Harvey to go into business with him, offering a restaurant concept at $5,000 per store that, the man said, would blanket the nation and make Harvey very rich.
“My Dad told him to get the hell out of his store, that there was no way he would pony up $5,000—that was a lot of money back then,” says Rosenthal. “That man was Ray Kroc, the founder of McDonalds. If only he had said yes, I wouldn’t be working right now.”
Perhaps due to this story, Rosenthal has made it his life’s work to save wannabe franchisors from bad decisions. Today he heads the franchise law practice at Wagner, Johnston & Rosenthal in Atlanta, Georgia, and shares the top four biggest mistakes he sees every day.
Mistake No. 1: Underestimating costs
While franchising can make your company (and you) wildly successful, it can also sink you in a massive hole if you don’t have enough money on the outset. Most startup costs go to legal representation and the drafting of regulatory documents, says Rosenthal. And regardless if your franchise is doing well or not, the Federal Trade Commission mandates you update them once per year.
On the legal side, Rosenthal says costs can range from the “low teens to the mid-20s.” From there, you must file with your state’s attorney general, which could cost you another $1,000 to $2,000. Then there are the accountant fees (franchised businesses must be audited once per year, even if you don’t sell any units), which could ring you anywhere from $7,500 to $15,000. Gulp.
How much are we talking here?
“I’d say you should have somewhere in the high five figures,” says Rosenthal. “I’ve had clients start with less, but it is rare. You really need to set aside legal and marketing money because things add up quicker than you think.”
Greg Archer learned this the hard way. As co-founder of Age Advantage, a San Diego, California-based company that provides in-home care to senior citizens, he and his wife began offering franchises in 2006, but stopped about 18 months later largely because of under capitalization. He says you need even more than five figures starting out.
“Being undercapitalized really inhibits growth; I recommend starting with a minimum of $300,000 to $500,000,” he says. “As a new franchisor, there is no cash flow. You really don’t make money on the sale of a franchise, you make your money on ongoing royalties.”
In addition to legal and regulatory fees, the Archers were strapped with sales and marketing costs, all which proved to be too much. In 2008, they reevaluated their business. Two years later another company bought out their original location, which freed them up to focus on franchising alone.
Today, they are going to tradeshows and actively advertising. According to Archer, the company is on par to close about 15 more locations (they already have six) this year.
Mistake No. 2: Confusing the roles of franchisor and business owner
Rosenthal uses a barbecue restaurant as an example. As the business owner, it is your job to deliver mouth watering pulled pork; you do a great job and have legions of loyal customers. Pretty soon a potential business partner offers to open a franchise and you jump at the opportunity. It’s an ace in the hole, right? Not exactly.
“You need to recognize that being a franchisor and a business owner are two different skill sets,” says Rosenthal. “You may be a great chef, but that doesn’t mean you will be a great franchisor.”
Franchisors must be focused on finding and recruiting franchisees, says Rosenthal. Processes need to be put into place, manuals need to be written and franchisors need to invest time into training franchisees and lower level employees. These duties can take away from those related to owning your primary business.
Also consider bringing in a franchise consultant to help you with the process. (Note: to find a consultant, check out the International Franchise Association.)
Mistake No. 3: Lack of planning
Planning is key to a successful franchised business. Before even considering the business model, make sure you have a detailed operations manual for your business that goes step by step through every process in your company and you’ve talked to an attorney or franchise consultant, recommends Rosenthal.
“Don’t just think that you can do it on the cheap and see how it goes,” he says. “Franchises take a lot of pre-planning.”
Mistake No. 4: Franchising too soon
Just because your five-month-old Mexican restaurant is selling out every night doesn’t mean it’s time to think about franchising. Rosenthal suggests waiting three years before considering the business model.
“You need to have everything figured out,” he says. “No one is going to want to buy your franchise if you haven’t worked the kinks out yet.”

08:14 by Robert dawne · 0

The 7 Fundamentals of Building a Successful Business

First comes the idea, then a bit of follow-through and, ideally, in the end you have a business.
But if a company thrives, it's not because its founder filed all the right paperwork, got a P.O. box and had business cards made up. There's much more to building a successful business than those initial basics.
In fact, to make sustained growth more likely, small businesses need a smart, strategic plan. Whether a company is in its infancy or has been around for years, there are a few things every savvy small-business owner needs to keep in mind.

Identify your customers
It's important to share word of your business when you start out and as you grow in order to maintain a customer base. But instead of the cast-a-wide-net approach, try something a little more focused, strategic and rooted in research. Invest in market research—which you can either hire consultants to do or informally conduct yourself—to best identify who your customers are, then compare that data with who you would like your customers to be. From there, you can make an informed decision about where and how to reach them and launch a marketing initiative with a better chance of yielding a return on your investment.
Make sure you've got a professional keeping the books
If you don't think you're a numbers person, it'll be difficult for you to be a truly successful entrepreneur. If you're not qualified to keep your company's books yourself (and you should have an accounting background to do so if you expect any significant growth), you need to understand at least the very basics of accounting so that you can make a good hire of someone more adept to take on that work.
Foster good office culture
Retaining your talent is important for a number of reasons. It's costly (in terms of time and money) to train new employees, and it's be a huge burden to lose a staffer who's led projects for your company. One of the best ways to keep your people on board, and attract new hires, is to cultivate a solid office culture. You know, the kind of place people want to come to. As a small business owner, it's up to you to champion that welcoming, friendly, fun, productive environment. (Read more on creating a great office culture.)
Invest in the basics
Experts have said time and again that a business's success ultimately comes down to its people. Be prepared to pony up the time and energy it takes to vet, recruit, hire and train employees that not only are qualified but also fit within your organization. That means looking ahead to figure out which positions you'll need to hire for, and networking to find the best candidates. Another fundamental element of a successful company in 2012 is its website. Having an amateurish online presence will hurt your credibility and steer people to your competitors with more refined web content. There's a price tag on a good website, but its payback makes it worthwhile.
Listen, especially when you disagree
You started a business because you had an idea and a vision. But your business will only grow if you pay careful attention to your stakeholders and customers. Your board, investors, colleagues and customers can each offer you valuable insight, whether it's about the inner workings of your company or an outside perspective on its functionality and service. It's particularly important to listen when you disagree, like if a board member critiques your methods or a customer isn't happy. That's where you can best learn about your deficiencies and how to improve (translation: It's where you learn how to stay successful).
Plan conservatively
Do everything you can to avoid being surprised when you don't reach financial goals. Set realistic expectations, and have a clear plan on how to get there. Undershooting your revenue estimates will help ensure that your plans, which are based on how much money your business makes, won't derail the company. If you aim high and fall short of reaching your expected margins, it can be disastrous to your firm. (Get more tips on forecasting.)
Find a mentor
There are professionals, entrepreneurs and industry experts in your community who have already gone through the business-building process. Learn from them. They have suggestions to share and failures they've learned from that can spare you the pain and cost of making those same mistakes yourself. It's valuable to have an experienced, trustworthy advisor to review your ideas and help position you to improve and succeed.

13:09 by Robert dawne · 0

5 Ways to Retain Your Top Performers

Your best employee comes into your office Monday morning and gives their two weeks notice. Your heart drops and you start to panic. How will you replace such a stellar performer?
Hopefully you haven’t been faced with this scenario. And if you keep reading, you may never find yourself on the receiving end of such bad news. That’s because the following is some of the best advice on how to retain your rock stars. Take this list to heart and you may land a top dog for life.
Learn their language
You may think you know what motivates your top employees, but have you sat down and asked them? Tom Gimbel, founder and CEO of LaSalle Network, a staffing and recruiting firm in Chicago, sets aside time on a regular basis to learn what motivates his best employees. Then, when they do a good job, he rewards them accordingly.
“I have one guy who loves sporting events; I can’t give him enough tickets,” he says. “I have another sales person who loves to share her stories with me. She wants time with the CEO, to get my insights, so I schedule about 30 minutes every few weeks and that time keeps her happy and motivated.”
Involve them in company decisions
The more invested an employee, the more likely they will stay, so “bring them into the inner circle,” suggests Ralph Neal, vice president, educational services at Employers Resource Association in Cincinnati.
Consider bringing your top dogs into strategic planning meetings. Let them offer suggestions and seek their opinion about issues that will affect the organization as a whole, he adds.
“They will appreciate being part of the business planning process; it can be a big motivator,” says Neal.
While Gimbel agrees with this suggestion, he also offers a warning: some top performers don’t want to be involved.
“It all comes back to spending time with them and getting to know what they are thinking,” he says.
Give them ownership of their work
A micromanaging boss will only drive away a high achiever. Lori Dernavich, an employee performance advisor based in New York City, suggests letting them complete tasks on their own.
“Allow them to have a say on how to solve a problem; managers shouldn’t have all the answers, so give them a chance to own it,” she says.
Get rid of low performers
Top staff members don’t want to hang out with unmotivated, low performing employees, says Gimbel. Consider showing your bottom feeders the door.
“The majority of really good producers would rather work more than clean up the mess of an underperforming employee,” he adds.
Help design their career path
Don’t assume you know the desired career trajectory of a top performer, says Dernavich. Work with them on a personal development plan. Even if you can’t give them everything they want, your eagerness will land you a few brownie points.

13:06 by Robert dawne · 0