Showing posts with label business owner. Show all posts
Showing posts with label business owner. Show all posts

Tuesday, September 29, 2009

The White PIcket Fence Has Become a Little Grey!

For many Americans, the dream of owning a home or a business is the definition of the American dream. Add to this, the 2.3 kids, the well paid job or successful business and the stylish car to drive to work every day and you had the true picture of success. An individual's home, that was the symbol of stability and security, has become the primary center of stress for many home owners. It is no longer a dream for many but a nightmare instead.




The United States Census Bureau in 2007 reported an increasing number of homeowners are spending a growing amount of their incomes on housing. People in 49 out of 50 states reported an increase. The only state that didn't, Alaska, spent the same amount. The report showed that people are spending around 21 percent on their housing needs, up from 19 percent in 1999. In many areas, and for many Americans, it has reached a much higher number.

At this rate, first-time buyers are being priced out of housing markets all across the country. Economists point to rises in home prices in the last 7 years, as well as higher interest rates, coupled with stagnant wages and lost jobs over the same period. Household incomes, on the other hand, haven't done a very good job of keeping up. The same Census report showed that income has actually dropped, not risen, over the past 7 years, down 2.8 percent.

The report goes on to share the percent of people who allot more than 30% of their income for housing. The numbers are up almost 8%. National guidelines suggest that more than 30% of household income for housing is excessive and not financially healthy. Add to this that many companies take advantage of those desperate to own with shady lending practices and impossible interest rates. If this census was in 2007, one can only guess how much worse the numbers will be in the 2010 census.

Buying and owning a home has dropped to its lowest level in nearly nine years in the first three months of the year at the same time, housing vacancies reached an all-time high, according to figures released early this year by the Commerce Department. In addition, many distressed sellers are facing declining home values, their rates on adjustable mortgages have gone up, divorce prompted by stress around finances and even loss of health to stress related illnesses. This only adds to the amount of foreclosures and housing vacancies.

What does this mean in the long run?

The real estate market will remain lifeless until income can catch up to housing. And since real estate is one of the biggest drivers to the overall economy, a weak real estate market means a weak economy. The downward spiral is easy to follow. If no one is buying homes, then the number of new homes being built then decline. This means that all those individuals that earn their income in the building industry now are losing jobs or have lowered income due to fewer contracts. Continue down, these individuals are not spending money they would normally have and down it spirals impacting out. A giant ripple effect that is long reaching!

Until income can begin to grow as quickly as the real estate market, this trend shows no signs of slowing down. This could mean that the upcoming real estate slump could last much longer than anyone predicted. The true impact and prediction will be measured with the 2010 Census. The only consumers that will benefit from this current trend are those with the financial position to buy up property that has dropped in value and can afford to hold on to it for a long term investment.


Sunday, September 13, 2009

Emotional Management a Must in Business!


DropJack!
Managing emotions is an arduous task for some but a skill that is essential to success in business and personal relationships. We all have and experience emotions whether we like it or not. Managing emotions mainly deals with unpleasant emotions: anger, fear, frustration, depression, despair. Emotions are the feelings we experience day to day, such as happiness, pride, boredom, sadness, anger and frustration. Emotions are a part of our everyday existence as they move through the body, affecting our state-of-mind, performance, health and energy. Emotions cannot be helped. Emotions we don't even realize we are feeling can influence our thoughts and behaviors; they can also travel from person to person like a virus. Due to this virus like state, it is of the most upmost importance for those in positions of influence not only their own emotions but understand the need to monitor and perhaps influence the moods of others.

Management is in a unique position to dictate the pulse and rhythm in their workplace. "We engage in emotional contagion," says Sigal Barsade, a Wharton management professor who studies the influence of emotions on the workplace. Broken promises, laying the blame on others, dishonest communications, and ignoring employee suggestions are all unfortunately very commonplace in real world management. So how does management expect their employees to manage their emotions in the workplace if the tone that is being set is negative or one of disregard? Without that emotional-management component, a work environment can become toxic.

Those in leadership positions are often not really good at working with people and so spend a lot of their time avoiding and/or strategizing how to deal with, avoid, or get rid of those who are troubling. In fact a great deal of leadership is actually about emotion management. Emotions are also essential to inspirational leadership. These managers often lack the necessary people skills, communication skills and leadership skills to influence the emotional tone of the workplace. This is a critical oversight by those in upper management who do not get or provide the training to create a positive emotional tone. So in turn, employees’ moods, emotions, and overall dispositions impact job performance, decision making, creativity, turnover, teamwork, negotiations and leadership.

For Management to be in complete control of emotions of the workplace, they need to be a master of themselves, both theirs and their employees'. It is essential for employees to positive at work -- but this has to be supported by upper management. Employees need positive feedback, and if they do not see that coming, or do not even get acknowledged for their work, they will look elsewhere. This creates turnover and increased costs and lowered performance. Many employers in the current economy are quick to just higher someone else rather than address this aspect. They fail to look at the long term costs of losing an employee in downtime and in the retraining of a new employee.

One of the most fundamental things necessary to improve employees' attitude and to create a “culture of love,” is to adopt systems that recognize and reward those positive attitudes and behaviors. When managers are manipulative and treat employees just as "equipment" rather than humans beings, poor attitudes follow. And a workplace where emotions run rampant can turn off employees, vendors and customers alike. Similarly, it is the duty of the manager to ensure that he manages the negative emotional attitudes of his team in such a way that such attitudes are not reflected in their performance. Managers also need to learn how to lead by the example they set -how to deal with their own pain in positive ways that can inspire others to deal differently with their own difficult situations. Barsade gave the example of a manager who was dragged down at the start of every day when passing by the desk of an employee who either grunted or gave no acknowledgement. The manager took control and simply started following a different route through the office. If the company is losing money and experiencing the effects of downsizing, should the manager, feeling stressed and overwhelmed, convey his despair to his workers. Or should the manager try to appear cheerful and act as if nothing is wrong. Barsade says it's possible for the manager to convey emotions that are both authentic and positive, saying something like, "I know you're worried. The ability to summon positive emotions during trying times of stress is the key to being a successful manager.

Most organizations have traditionally focused on teaching logical and rational thinking and have neglected emotional learning in their development programs. The main implication is that organizations should focus on hiring managers with high emotional and social competence and also provide EI training and development opportunities to managers to enable them create a positive organizational climate. Effective listening is an important aspect of learning to do that as well.

Listening effectively is difficult because people vary in their communication skills and in how clearly they express themselves, and often has different needs, wants and purposes for interacting. Still, listening is an important skill and needs to be taught. The most basic of all human needs is the need to understand and to be understood. Feedback must take into account the needs of both the giver and the receiver. Otherwise, it can be destructive when it fails to consider the needs and feelings of everyone involved. Listen to words, body language and emotions to understand the player's both conscious and unconscious needs. By feeling heard, many negative consequences of a disgruntled or upset employee can be lowered if not stopped all together.

Managing emotions does not mean denying their existence or ignoring them. Never tell an employee he should not feel that way. Feelings are a biological reaction a circumstance, event or stressor and cannot be helped. How one can help is to acknowledge the feelings and help the employee consider positive possible choices they have to resolve their current feelings. Take a minute to consider the importance of active listening by thinking about how you can be a good active listener in terms of body language--or what you do during communication, voice--how you respond to the speaker, and content --what you say when you respond to the speaker. Active listening is an effective tool to reduce the emotionality of a situation. Every manager or sales team leader that can learn these skills will find that their team will overall increase in company loyalty and performance. Managing emotions is something that must be addressed, not avoided for success.




Sunday, August 16, 2009

Structure is Important to the Success of a Home Business!

One of the biggest mistakes that home business owners make is that in the attempt to build a business they lose sight of the very thing they wanted when they started. Most people begin home businesses to either supplement their income or to be home with family. However, if a person is locked in at their computer desperately seeking to drive sales or spending more then they are earning, they have lost sight of the very thing they were seeking.
Structures in life are necessary. Without them the human, unless naturally the high structures type spoke of in a previous article, will wander aimlessly from task to task. This is easy to do when promoting online because one site will lead to another. Each offering to nickle and dime the business owner with small costs to promote their URL. Each one seems small but when added up over the month, can be a large chunk if not exceed the advertising budget set aside.

The first thing to do to structure a home business is figure out the working hours. Are they while the baby is napping? In the evening when the spouse is home? Pick a set number of hours a day and the times that they are normally set aside for. This is flexible of course, that is the attraction of a home business. But on the normal, no appointments, no business meetings day, when will the home business entrepreneur be working?

The second thing to do is figure out what needs done in that time. How much time is needed to return emails and phone calls? How much time will be spent marketing online? How much time will be used in presentations? Deliveries? What ever ythe business needs done, allocate a time amount for it for the week. Now looking at these two things. Figure out what days and how much time on that day will be devoted to each of the indentified tasks needing accomplished.

Another important part of structuring is organizing the business expenses. Get a basic accounting system. It is hard at the end of the year to show all those little expenditures unless the business owner have been keeping receipts (email ones too). Take the time up front to desiginate how income and expenses will be monitored.

The last thing that is important to structuring a home business is to plan a marketing strategy wisely. If there is a marketing budget, get with the sponsor or find a trusted marketing mentor and find out where their money was best spent. If there is no budget, learn how to market for free. There are tons of free things that can be done to promote a business online. The key is consistency. When marketing for free, it is not about quick returns, it is about diligence and patience. Make a weekly goal of whatever strategies the business owner is comfortable using. For example, posting ten free classifieds daily. Something along those lines but for each thing on the list of free marketing tools. Be prepared to not see results for at least 30 days. People need to see the advertising multiple times before they will follow up.

Structuring a home business is not only critical to success, but it allows for tracking what works and what is not working. Wandering aimlessly in hopes of stumbling onto the gold mine does not work. Structures in a home business also mean that the important component of time with family or freedom to ___________ (you fill in the blank) remain an important focus in the week to week life of the entrepreneur. Remember, Balance is the key component to finding happiness, abundance and freedom in life!

Have a Prosperous Day!
The Balance Guide