Being in business is about people, and making money is what keeps it going. Successfully managing both is how you can create the greatest outcomes.
These 4 tips on people and money management will help you maximize ROI.
1. View Your Team like Pieces on a Chessboard
Bad leaders see their team as dispensable pawns and then themselves as the King. They think that they’re the sole key to winning and undermine everyone else.
However, just as each type of piece on a chessboard moves in a different way, so does each employee.
If you want to get the most out of your team and maximize ROI, you need to understand each individual’s unique abilities and then integrate them into a coordinated plan of attack.
2. Evaluate Business Expenses Based on ROI.
Last year in the face in covid, everything was about slimming down. It was about avoiding costs and just doing whatever it took to keep the business alive.
However, if you’ve now made it out of that situation, it’s time to reevaluate your business expenses based on their overall ROI and your plans for the future.
For example, what are you currently not spending money on that could be bringing more money in? What are you currently spending too much money that actually isn’t giving the greatest return?
3. Seek First to Understand, Then to Be Understood
That’s habit 5 from Dr. Stephen Covey’s book, The 7 Habits of Highly Effective People. As a manager, this means that you first fully understand not only your own perspective, but also others, and then get your point across second.
Too many leaders use their title to force their opinion but then once all the facts come to light, realize there’s actually a better way and change their minds on what they want.
This indecisiveness changes how employees view them and they can soon be written off as inconsistent.
4. Develop a Healthy Relationship With money
The way you view money as a manager has an undue influence on your business’ cash flow.
What many managers fail to acknowledge is how much this is the case — and it often has little to do with how much money is going in and out of your business, but rather how you’re viewing that money.
Chad Willardson, author of the book, Stress-Free Money says, “Making money work for you is one of the most powerful ways to befriend money.
“We are used to viewing money from the vantage point of lack, but the truth is, there are many ways to achieve financial freedom while clearing up your money consciousness. Money can be dealt with in a neutral manner, far from the dangers of guilt or greed.”
Seeing money in a neutral manner can help you make better financial decisions in pricing services as well as choosing appropriate salaries and benefits for your employees.