Poor communication limits your business’s capability to optimize performance. Communication is essentially the blood flow of an organization. It delivers the information to various people working with or within the business to get work done while providing a mechanism for building and strengthening relationships. It can be a significant factor in building company culture, which ultimately reflects upon your brand identity.However, when there are poor communication lines in your business, their effects are felt across the board, and might even leak externally to your customers. Individually, your staff will feel disconnected due to the lack of clear direction from the management. This leads to decreased engagement, low satisfaction rates, and poor performance. Ultimately resulting in an overall lower output from the entire business. Your customers might pick up on this and take their business elsewhere. Let us look at the various ways in which poor communication might be your brand’s Achilles heel.
It Creates a Culture of Distrust
Trust plays a vital role in the success of any high-performing team. This explains why team-building activities are always centered on getting each member of the team to believe in the other’s skill and willingness to perform their job. Ineffective communication; however, inhibits trust building and thus breeds a culture of distrust. When you do not communicate your goals and important events with your staff, they will eventually start thinking that crucial information is being held back from them. This creates an ‘us versus them’ mentality.
Confusion and Uncertainty
Effective top-down communication is what ensures that all your departments, their leaders, and employees are on the same page. However, when there is no clear direction, the role of departments and individual employees becomes uncertain. This results in a workforce that lacks priorities. The effects are usually inefficiency and a lack of productivity. In other instances, confusion is caused by mixed messages. For example, a manager might provide a directional message today, then give an entirely different vision after a few weeks. Another instance is when front-line managers and top managers have different perspectives on how goals should be accomplished. This causes chaos which leads to uncoordinated or misdirected tasks.
The Need for Open and Consistent Communication
Blueline Rental, the 4th biggest construction equipment rental company in North America, decided to prioritize communication across the company in a bid to show that the company cared about the well-being of its employees. In doing this, the company was able to take its TRI safety score (which should be 1 or below) from 3 to 0.74, making it one of the safest companies to work for in a dangerous profession. When looking to improve communication lines in your business, expect numerous barriers, especially if you have more people in your company. Thus, instead of telling your staff what to do, offer them a clear line of site which details where they are headed, and their role in that objective. Address concerns promptly while ensuring they have access to all the information they need, whenever they need it. Moreover, involve your staff in your decision-making process by holding discussions to get their input. This makes sure they know that their opinions are valued. It is also why clinics use healthcare management specialists to facilitate communication. By enhancing communication in your workplace, you’ll have a workforce that knows where it is headed, and how it is supposed to get there.
Having a shared vision and mission is key to establishing consistency in your brand experience both internally and externally. If you notice some communication slip-ups at work, whether with you or your co-workers, don’t hesitate to start wondering what you can better do to improve the situation. Communication is key to most things in life, and so practicing and succeeding at it as a company will surely lead to improved employee and client interaction.
Business finance 101 has a little more rules to it than personal finance 101, but the general principles on being careful what you spend funds on are usually the same. The main thing to know when managing your company budget or discussing reports with your accountant is what you or your employees will invest in the short-term, and what you should be doing in the long run. But in either case, since every penny spent can affect your business considerably especially if it’s still small, you should follow five financial management practice tips to keep it in good financial health.
Make Sure You’ve Set Your Own Salary Wisely
As this article points out, you should be careful not to sacrifice so much of your own personal capital and paycheck to the point that you aren’t getting paid. For tax purposes and other reasons, it’s good to have your business funds and personal funds in separate accounts, but your salary can be recorded in the payroll documents. It is also a way to recoup some losses if the unfortunate happens and your business fails.
Know How to Collect Accounts Receivable
Offering financing to your customers can be a great way to encourage them to make bigger purchases. But if your company makes its revenue mostly from billing customers, you want to make sure you know how to collect money from your invoices, so you aren’t running short on cash flow. Sometimes it’s good to incentivize customers with discounts on billing for signing up to make automatic payments on due dates. Also know when you need to be a little more aggressive about collecting from late paying customers. The bottom line is you don’t want to put your company short on cash.
Set Appropriate Limits on Business Credit Cards
Business credit cards can be quite a convenience for being able to make essential purchases, because at times they can offer more flexibility than bank loans and can allow you easy financial reports. Their interest rates can be quite costly, and without guardrails in place, they can be a significant liability on your company. You definitely need to limit the number of employees with credit cards as well as possibly limit credit card usage to those with a specific ranking. Even though well-defined credit card usage policy can help, sometimes shared company credit cards can easily become a financial trap. They can wreck the company budget and open the doors to employee fraud. Instead, look to other alternatives such as virtual credit cards, or you could even use gift cards or prepaid cash cards. Many big corporations have begun providing employees who travel frequently with prepaid cards for certain increments for food and other necessities to cut down on the risk of misuse.
It might be tempting to start spending as soon as your business starts making a little money, but this kind of thinking is a fast track to bankruptcy. Save as much as you can, because eventually you’re going to have to face a rainy day. Look for discounts, rebates, and other ways to save money on routine or large expenses. For example, some utility companies (especially electricity providers) will provide rebates for businesses who decide to invest in energy-efficient equipment. There’s also no shame in buying equipment used or renting instead of buying. Be smart with your business’ money, and you will be rewarded.
Have Your Growth Plan Be Something Your Team Can Be Happy With
As you’re making or planning for new company expenses, growing your company should be about more than just more products and higher profit margins. You should look at investing in things that can make your employees happy and make for a more comfortable work environment such as a new building with office space, or spending more on employee benefits and incentives. Making your finances count for good employee morale is a highly important move for your company and internal brand equity.
The bottom line to running a business is even if you have innovation and ingenuity, those can only get you so far without sound financial management knowledge and practices. Just as with personal finance, it’s good to be able to meet business expenses with cash from savings as opposed to running in high debt. Before you use any loans or even perhaps opening your doors for business, you should talk to a business financial planner about good ways to use company money.
Your fiscal practices is just as important of a branding decision as what your logo will be! Chances are your brand identity hasn’t been planned out in this area, or hasn’t been updated in a while, so let’s change that! We help with all parts of the branding process, and even if you’re just curious to see how we can help, we can schedule a short consultation to show you what we can do. Check us out today!
If you’re looking for the right city to start your business, you should strongly consider the options on this list. Here are the five best cities for startups:
Not only is this city’s economy doing great, but it’s growing too! In many places, there’s a lot of red tape that you’ll need to go through to get your business started, but that won’t be the case in Helsinki. Also, it is considered to be among the wealthiest cities in Europe.Relevant: Helsinki.com
Tel Aviv, Israel
Tel Aviv is the world’s 25th most important financial center, and this means that there are plenty of corporate travelers in the city with substantial financial resources. The legal climate of Tel Aviv is also very business friendly, and the city is home to a large number of successful enterprises.
Austin, Texas, United States
Austin, Texas has an economy that’s rooted in medicine, technology, and education. There are a lot of major corporations that use Austin as the location for their headquarters, and one of these companies is Dell. Furthermore, the Austin metropolitan area is growing in population, and it’s likely that it will continue to grow over the years. Relevant: All Storage Online
Bucharest is the economic hub of the country, and it accounts for approximately 23% of the country’s economy. If you are building a brand in the service industry, this may be a great option for you! The economy is mostly based on services, and it’s also the headquarters of a number of major corporations.
Singapore has an economy that’s so strong that the city is actually able to function as its own country! The tiny nation is pro-business in terms of its legislation, and it is the third wealthiest nation on Earth in terms of per person purchasing power. You may need some assistance in forming a business in Singapore, but finding business assistance is a simple and easy process because of how popular the city is.Learn about building a business in Singapore: Sandhurst Consultancy
Edinburgh is a growing city, and this means that there will be more potential customers for business owners in the area. The average citizen of the city has a high annual income, and this means that it will be easier for business owners in the city to sell their products and services.
Seoul, South Korea
Seoul has a booming economy that is focused on the electronics industry, and this is likely to contribute to the city’s economic growth over time. As a result of the city’s highly advanced tech sector and corporate headquarters, it can be a good investment to start a business that caters to business travelers. Relevant: Easy Expat
Warsaw is the economic hub of the country, and this has been the case for many years. In addition, Poland is the eighth largest economy in the European Union, and this means that people in the city have a significant amount of purchasing power.
This city in China is a major manufacturing hub, and this is likely to continue to be the case for many years to come. As a result, not only will you get plenty of business from the locals, but it’s also likely that your company will receive plenty of business from corporate travelers. Furthermore, the laws surrounding becoming a business owner in China have become far less restrictive than they once were. Relevant: Travel China Guide
Dubai, United Arab Emirates
This city is truly a bustling metropolis, and it’s home to the tallest structure on the planet. The culture of the city is very pro-business, and you are likely to get prospective customers from the local area in addition to corporate travelers from other regions of the world.
Despite this city’s isolated location in Iceland, it’s a great place to start a business! Not only does the city receive a significant amount of tourism, but it also gets a certain amount of business travelers. Relevant: Iceland.is
Dublin, Ireland has a thriving economy, and it is home to the headquarters of multinational corporations. As a result, people in the city have a significant amount of purchasing power, and you’re likely to get business from both locals and business travelers.While there are many great cities to start a business, many experts feel that the ones on this list are among the best. There are various advantages to starting a business in these cities, such as the fact that many of them have a strong economy and attract a large number of corporate travelers. Perhaps the best way to know is to check online reviews of these various places. It could help you make the best decision possible for your company.No matter where you are, or where you’re going, you want to make a stance and set yourself apart from the crowd. One of the best ways to do that is to have a recognizable and memorable brand. With our brand identity development, design, and maintenance services you won’t have to worry about your brand no matter where you decide to build your business!