Category Archives: Business

Know Your Value. Know Your Worth.

If you’re anything like me you’ve probably had to learn at least a few things ‘the hard way’. The most recent lesson for me has been about knowing my value, and knowing my worth. Though I have considered these things before, the importance of understanding them has become very apparent in terms of seeking return on investment – specifically, the return I get on investing myself into various aspects of my life.

Though they sound the same, there is a subtle difference between your value and your worth. I think of it in terms for what you offer, versus what you receive.

Know Your Value

Your value is what you bring to the table. It includes your knowledge, experience, skill set, level of expertise, as well as things like your attitude, disposition and approach to things. It is both a quantitative and qualitative measure – not just what you can do, but how you do it and how well you can do it. It can be both objective and subjective as well. For example, my value as a physical therapist can be measured against other physical therapists by looking at objective measures, such as my knowledge and proficiency of a treatment technique, as well as subjective measures, such as my rapport with patients and co-workers.

We all have different levels of value in different areas of our lives. My value as a physical therapist is far greater than that of my value as a carpenter; my value as a Tai Chi instructor greater than that of my value as a marathon coach. Knowing your value requires a great deal of critical self-reflection. It requires us to self-evaluate our strengths and weaknesses, a process which requires us to be very honest with ourselves. Not always an easy thing.

Knowing your value has a number of benefits. First, it serves as a point of reference for making decisions that are going to be favourable to you. Using my above example, I know that I’m going to be much more successful seeking and retaining employment as a physical therapist than I will as a carpenter. I could further say that as a physical therapist, I have much more experience working in the home health setting than I do in intensive care, so when it comes to looking for work, I probably have a much higher chance at success in the home care setting than a specialised hospital setting.

It also helps you identify opportunities for growth and improvement. More than that, it can help you prioritise and focus your efforts towards growth and improvement. For example, I know that my value as a carpenter is probably comparable to my value as an artist – that is, relatively low. While I would like to improve in both these areas, improving my ability to draw represents much more of a personal challenge to me than carpentry, so at this point in life I’m more inclined to focus on improving my artistic ability than my wood working skills.

Knowing your value also enables you to understand your worth: to an employer, to your relationships, and to society in general.

Know Your Worth

Your worth is what your value entitles you to; it’s your reward for what you bring to the table. Worth is also objective and subjective, though I would argue far more of the latter. For example, your salary is an objective measure, however, exactly what that salary should be will differ between you, your employer, and the marketplace.

Knowing your worth is important for two main reasons. First, it enables you to determine what you feel is fair compensation for your efforts. Again, in terms of salary, you would probably expect it fair to be paid at a higher rate if you have specialised skills and years of experience than you would if you were new to the position and still learning on-the-job.  You would also expect to be paid at a rate that is similar to what others are getting in the same position, particularly if their knowledge and experience is similar to yours.

This leads to understanding what degree of leverage you have in a given situation, which enables you to be able to negotiate more effectively. This further empowers you to make decisions about what is and isn’t acceptable to you. Using salary as the example again, knowing your worth could equally help you negotiate a higher rate of pay, as it could help you determine whether other benefits (better work-life balance, less stress, etc.) in lieu of a higher rate is just as favourable.

My three tips for discovering your worth are:

  1. Be realistic: there’s no point in me expecting to be hired as a master builder because I can assemble flat-pack furniture. This is where knowing your value is important, and will save you a lot of frustration and embarrassment.
  2. Be self-critical: understand your limitations, but also give yourself credit where it’s due. No one is great at everything, but all of us are good at something. Also identify those things about you that are static versus those that are dynamic. Being willing to change and grow can increase your worth, but it’s also important to understand what aspects of yourself you’re not willing to change lest you lose the essence of you.
  3. Do your research: what you think you are worth can be different to what someone else thinks you are worth. The more you understand someone’s needs, the more you can determine your level of worth to them, and what they are worth to you.

If you want to experience more positive interactions in your work, your relationships, your community, and even your self-image, knowing your value and your worth is a great place to start.

4 Things You DON’T Need to Start a Business (Part 2/2)

3e3556eWe’ve already established that you don’t need money (at least, not a lot of it) or an office space or store front in order to start a business. Now let’s look at what else don’t you need.

  1. (Paid) Staff

Many people starting out in business start out by themselves, as sole-traders/sole-proprietors. For many new businesses or business ideas, this is all that’s initially required. There is so much that you can do yourself in the early stages. In fact, depending on the type of business you want to set up, you may not actually want to bring anyone else in at the start-up stage.

However, what if you need other people right from the beginning? What if your idea is bigger than one person? Or requires a lot more time, effort, or assistance than you can devote to it by yourself? You need staff – but that’s a huge expense, especially if it’s going to take you a while to generate cash flow.

This is where finding helpful volunteers can be a great benefit to any start-up business. I put volunteers of this kind into two categories: 1) the helpful friend/family member; and 2) the like-minded interest. It isn’t unusual for a volunteer to be both, which can be even more beneficial. Let me illustrate with a couple of examples.

When I first had my clinical practice years ago, I found I was on-selling a number of products to patients; wheat bags, braces and supports, that sort of thing. As a very small and new business, I didn’t have the purchasing power to buy and stock items in bulk – I could only order one or several items as the need arose. This meant I paid very close to retail for items, and could only charge enough to recoup the expense of ordering them (sometimes not even that). One popular item was the wheat bag – a fabric bag full of wheat grain that people could use as either a hot or ice pack. These were popular, but the quality ones were expensive, so to stock cost a lot of money, and demand wasn’t such that it justified keeping a large surplus. It is a really simple product to make – I’ve known a number of patients who end up making their own – but I knew nothing about cutting out a pattern or sewing. And to be honest, I had no desire to learn. Fortunately, I had a family member who knew lots about it and was willing to help me out. After purchasing the materials at less than the cost of two wheat bags, we were able to come up with our own design that was every bit the same quality as what I had been purchasing. Once we had a template, we could make about five wheat bags for the same cost as purchasing one. And because I had a volunteer, I didn’t have the expense of hiring someone, or contracting the work out, so profit was immediate. I was even able to start compensating my volunteer for their time and effort.

It was similar when I helped establish the National Association of Aboriginal and Torres Strait Islander Physiotherapists, Inc. (NAATSIP). NAATSIP was formed completely by volunteers – by a group of like-minded people – of which I was one. We had no money, no location, no staff; all we had was a group of people who shared a vision, and a desire to make it happen. We formed a board of directors, registered a business name, established ourselves as a not-for-profit organisation, and put ourselves into the Australian health arena. With no support staff (and no funding) we did everything ourselves, from developing our strategic plan to preparing reports, establishing services like our mentoring program to representing ourselves on local and national bodies. In our first year we made connections with all key stakeholders in Aboriginal and Torres Strait Islander health, participated in State and National policy-making decision processes, and became recognised as the peak professional body for Aboriginal and Torres Strait Islander physiotherapists by other peer peak health organisations. All without a single dollar being spent on salaries or other form of compensation. How? Because we all shared a vision, and while that vision was beyond any one individual to achieve, by coming together we made it realistic and achievable.

Volunteers can be the lifeblood of any organisation, even ones that are already established. For the budding entrepreneur, they can be an invaluable form of assistance to get your business idea off the ground and in motion.

  1. (Paid) Advertising and Promotional Materials

There’s no question that advertising and promotion is a must for any business, and should be part of any marketing plan. The problem for start-ups is that it’s very expensive, not just in terms of cost, but the initial return on investment is usually very low, and sometimes nothing at all. It is very easy to invest thousands, or even tens-of-thousands of dollars in advertising and promotion and not make that money back for sometime, if at all.

Fortunately we live in the era of one of the best free ways to advertise and promote yourself – social media. In my opinion, social media is still either grossly under-valued, or ineffectively utilised, as a marketing and networking tool for new businesses. Yet consider these statistics:

  • Facebook has a reported 1.3 billion active monthly users;
  • LinkedIn and Google+ have 300 million users each
  • Twitter has 255 million users.

At those numbers, the chance of being able to expose your business to potential customers/clients is enormous, and (at this time of writing) it is all free-of-charge. All you have to do is sign up, create your business profile, and start promoting yourself.

One of the ways social media can promote your business is by finding people who will advocate on your behalf. You’ve probably heard it said that ‘word of mouth’ is the best form of advertising – never has this been more true than in the world of social media. Encouraging clients and supporters of your business to share that with others is one way you can attract ever-expanding interest in what you’re doing. Having people write reviews or testimonials about who you are and what you do, and then sharing that as far and wide as possible, is another way.

A good example of people who are using social media as part of their marketing strategy are independent (indie) authors and publishers.You’ll find indie authors and publishers on every social media platform, promoting their latest work or achievements to their followers, and encouraging said followers to share with everyone they know. Many actively engage in building friend/follower lists, and soliciting reviews of their work which they can then further use to promote themselves. The have to do this because, thanks to e-publishing, it has become such a highly competitive market: there are literally millions of self-published authors out there, all vying for your money. If you want to see how it’s done and how effective it can be, looking up the indie authors in your social networks can give you some pretty good examples.

Starting a business does not have to be as daunting or as expensive as it sounds. So many successful entrepreneurs – Richard Branson, Robert Kiyosaki, J.K. Rowling, Sara Blakely, and the Teutel family, just to name a few – have started out with little more than an idea and the desire to make it happen. One of the keys to their successes was that they made a start. If you have the desire to start your own business, you now know at least four things that won’t stand in your way.

Good luck!

Got more ideas on what you don’t need to start a business? Please feel free to share your tips in comments section below

4 Things You DON’T Need to Start a Business (Part 1/2)

3e3556eEver wanted to go into business for yourself? Been tempted but the thought of it is way too daunting? For starters there’s the money involved in starting a business, then finding a place to work out of, paying staff, advertising and promotion, licensing, registration, insurance, and on and on it goes. How can anyone struggling to get by possibly start their own business?

It might just be more possible than you think.

It actually takes surprisingly little to start your own business. Of course, what you DO need to start is highly dependent on the type of business you want to create, and any business that wants to succeed in the long-term is eventually going to need all those things already mentioned, and a whole lot more. But getting started, actually getting your idea out of your mind, out of your dreams, and into reality need not be as onerous or restrictive as you might have been led to believe.

Here are four things that might be holding you back that you don’t really need to start your own business:

  1. Money (at least not very much)

Now you probably think that’s crazy, if not impossible, however bear with me. To build a long-term, successful business will require expenditure, which means you will need money – I admit there is no escaping that. However, to get started, to take that first step towards being an entrepreneur, requires very little to no money at all. Chances are much of what you need you already have, or have access to.

Keeping initial costs down is all about two things: taking the do-it-yourself approach, and utilising as much free stuff as possible. For example, my first attempt at owning my own physiotherapy practice was as an in-home service. I had a computer, a printer, a car, my hands, and my vision. It cost me around $25.00 to obtain an ABN, and I registered my trading name at the same time. My first step was to create a letter to send out to all the doctors and medical centres in my area informing them of my service and what I could do for patients. Using programs that came with my computer, I created my own log, letterhead, and information package. After printing and stationary it probably cost me around $60.00 to do that. I then created a small flyer to do a mailbox drop in areas I thought I might get a response from. Printing costs may have been around $15.00, and I did the mailbox drop myself. Once I started getting referrals, the cost of service immediately offset the expense of running my vehicle, and soon compensated me for my accumulated expenses.

Setting up a physiotherapy service for around $100.00 is no mean feat. Sure, it wasn’t an elaborate clinic, and if I had simply left it at that it would never have led to long-term success or sustainability. It was, however, a start. It gave me my first real taste of being an entrepreneur, and led me to the business I operate today. Unless you have major initial expenses related to your business idea – for example, the need to purchase equipment, storage space, or stock – there’s no reason money, or a lack thereof, should stop you from starting a business.

  1. An Office/Storefront

Almost every business venture I’ve started has been run from my desk and/or my laptop. In some cases this has been a pragmatic approach – I simply didn’t have the money or resource to lease and fit out an office or storefront – however for the most part the simple fact was that I didn’t need a physical location in order to do business. And unless your business idea requires a physical space that you cannot already provide, neither does yours.

The Digital Age give us the opportunity to revolutionise business like never before. Think about the average office environment – what does it contain? For an individual, it’s typically a desk, a chair, a computer, a file cabinet, and a phone. Some may have their own printer, many use a printer that is assigned to a work group. This will often be a multifunction device, enabling printing, copying, scanning and faxing. Look beyond the cubicle: every other person essentially has the same thing. Some – directors, managers, and so forth – will have their own office, but the contents of that office, the things that actually need to be able to work, are essentially the same. You’ll probably also see some kind of board- or meeting-room as well. Pretty standard, right?

Now consider this. You most likely have, or have access to, all those things right now. If you own a computer, a laptop, or one of the better tablets or smart phones, you already have your workstation. You might even already have a small personal multifunction device that lets you print, copy, scan and fax; but even if you don’t, you probably don’t need it anyway. Being able to store and share documents and information electronically has almost eliminated the need for hard copy. Why print when you can read and edit on-screen? Why fax when you can email? Why take up physical space filing hard copy when you can store things digitally on a device a fraction of the size of the average novel?

Thinking along those lines, it’s not difficult to see how this can revolutionise workgroups. If everyone can work and share electronically, what is the need to have an actual office? You might say what about face-to-face contact, interaction and collaboration? Well, that’s all possible too thanks to almost every device that connects to the internet having audio-visual capabilities. If you own a recent laptop, tablet or smart phone, you already have a device capable of video conferencing, which helps bring people face-to-face. There are plenty of apps and software available – much of it free of charge – that will allow to connect one-to-one and as a group: and you don’t need to be in the same area, the same town, not even the same country to be able to do it.

But what about presence? What about having that location that represents your business? What if you need to meet with clients or investors or other VIPs? Meeting at your kitchen table or the local coffee shop might not cut it, right? In that case, let me introduce you to the virtual office. Virtual offices have been around for sometime but remarkably not many first time or developing entrepreneurs know about them. In fact, there’s a good chance you’ve already done business with someone who used a virtual office and never even realised it. What is a virtual office?

You can think of a virtual office as the façade of your business. Virtual offices are a business in themselves: their business is presenting a public face for your business. A basic virtual office setup will often include, for a recurring fee, a physical location address, a mail service – whereby you can have mail sent and either pick it up or have it redirected – and a ‘receptionist’ who can redirect calls to you or take messages as required. You are generally provided with a business number to give out and calls received on your behalf are greeted with your company’s name as they would be if you had your own employed receptionist. For additional one-off or recurring fees additional services can also be provided, from having access to an office/cubicle and business equipment, to the provision of a board- or meeting-room to hold face-to-face meetings with clients. Many virtual office providers have services in different cities, even different countries, and can extend the same range of services in area they are based in. Suddenly, your business can give the appearance of being national or multi-national – something to consider when planning the scope of your business.

A virtual office can be an excellent short-to-mid-term solution for someone wanting establish a professional presence for a new business. Yes, all of this comes with a price, however when you consider the costs associated with leasing, or worse, purchasing, a business property, there really is no comparison when first starting out.

The next two tips will appear in Part 2 of this article – be sure to Subscribe so you don’t miss out!