September 21, 2022
Knock, knock. Who’s there? It’s only the biggest small and medium-sized business conference of the year. Playbook 2022 kicks off at 9 a.m. PDT today — and the best part? It’s FREE (and completely digital). Check out the schedule and register now! (And don’t worry if you can’t attend live — we’ll send you the recordings!)
Hot off the SMB press this week:
Who you callin’ a microentrepreneur?
According to the U.S. Small Business Administration (SBA), if you own a business with one to nine employees, you fall squarely in the microentrepreneur camp. And while their teams may be tiny, these microbusinesses are making a huge impact — they account for 92% of businesses in the U.S.
What services and products typically fall under the microbusiness category? Think: home services (like cleaning, babysitting, and tutoring), coaching, graphic design, bookkeeping, nail salons, bakeries, and coffee shops.
Another key feature of microbusinesses is they often require minimal capital (typically less than $5K) — in fact, 16% of microbusinesses launched with no need for capital at all.
I’m a microentrepreneur. Any tips on scaling when you’re small?
First things first: You don’t necessarily need to scale. Plenty of microbusinesses prefer their small and nimble size. It allows for simplicity, less risk, more profits, and better work-life balance.
But if you have your sights set on boosting your business’ size, here are some steps other microentrepreneurs have taken to position themselves for growth:
What’s labor hoarding?
When companies hang on to employees despite an economic downturn to save money. Even though everyone and their mother is anticipating a possible recession, many businesses are labor hoarding to save money in the long run.
How can keeping people on board save money?
Think of it this way. You hire someone new, spending an average of $1,500 and 50 hours getting them set up (depending on the efficiency of your hiring process). If you have to let them go and re-hire someone else, you may as well have thrown everything you invested right out the window.
Bottom line: Employee turnover — whether you orchestrate it or not — can cost you up to 200% of an employee's annual salary.
Well, when you put it that way… I should never let anyone go!
Now, hold your horses. You first want to be sure you’re hiring the right people and training them to be successful. If someone’s not the right fit, it might be time to make some tough calls.
But if they are the right fit, you may want to think twice about cutting ties. Even when things get tight. (After all, it could keep it from getting even tighter down the road.)
FIRST DAY JITTERS
We’ve said it before and we’ll say it again:
Onboarding is extremely important. It’s your new hires’ first introduction to your company — when you show off what makes your business unique while also preparing them for their specific roles on your team.
A good onboarding system accounts for 62% greater new hire productivity and 50% greater new hire retention. But, you know, no pressure.
Here’s how you can alleviate the stress of providing a great new hire experience:
It starts with your onboarding packet. It should have all the necessary information a new hire needs while serving as an introduction to your business. And the right onboarding packet makes it possible for new hires to learn at their own pace and consistently access the information they need.
Some of the things you’ll want to include:
And if you want to elevate your game…
Don’t limit yourself to those 50-page paper packets that could crack a desk with their weight. Treat your new hires to an easily-accessible, digital onboarding packet in a knowledge management system. The trees will thank you for it.
WE HAVE A PODCAST
Need something new to listen to during your commute? We’ve got the perfect SMB-focused podcast for you. Every weekday, founder and CEO of Trainual, Chris Ronzio, hosts the Organize Chaos podcast. It’s chock-full of entrepreneurial and small business leadership advice covering everything from people to processes to productivity — and how to organize your life around it all.
Basketball fans will especially appreciate last week’s episode with Alan Stein, Jr., a performance coach who has worked with superstars like Kobe Bryant and Steph Curry. Alan shared how business leaders can take notes from these hoop legends on how to raise and sustain your game while managing stress on a daily basis. If you’re feeling a little stagnant in your business, listen to Alan and Chris talk about dealing with mediocrity and performing on a high level.
Can’t spare time for a longer episode? Try these bite-sized nuggets instead: