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6 Popular Phrases Used By Failing Entrepreneurs

Business

Most entrepreneurs learn quickly that you need to stay positive in business, or you will give up. Positive thinking helps, but so do the words you choose in your daily interactions. Throughout my 20-years of consulting entrepreneurs and startups, I have observed many businesses go under.

I've noticed most of these failed entrepreneurs frequently repeat similar phrases as they discuss their routine operations. If you're trying to grow your business during tough times, here are a few phrases you should be conscious of using when times get tough.

1. “I combine my personal and business expenses."

Combining personal and business expenses make any bookkeeping complicated. It adds more stress and increases your chances for audits as you try to identify which expenses can be deducted and which are personal. A recent TD Bank survey revealed that 56 percent of small business owners use a personal checking account for both business and personal finances.

Businesses must provide the IRS with all records related to the operation of a business. The supporting business documents required at tax time range from gross receipts, purchases, expenses, assets, employment taxes to travel and transportation costs, entertainment costs and gift expenses.
When these documents are combined, it will require a lot of time and effort to separate them and the risk of human error increases. Mistakes made with regard to filing taxes can result in hefty fines. Using a simple expense tracking system like Receipt Bank can help business owners separate personal from business expenses.
2. “I'm not good at delegating."
Successful business owners know they must delegate if they are going to grow their business. When entrepreneurs do everything themselves, they are preventing the business from succeeding and growing.

Many inexperienced entrepreneurs don't know when to delegate and when to do the work themselves. Generally, a task should be outsourced when it's not central to generating revenue for the company. If a task doesn't increase a company's competitive edge or requires specialized knowledge, farm out the work. It will give you more energy to focus on growing your business. Accounting, payroll, website design and public relations are good examples of tasks that should be outsourced.

3. "I do my own accounting."
The majority of small business owners opt to do their own accounting to save money. However, in the end, this approach may actually be costing them more money. Accounting requires time and effort, and when a business owner utilizes their valuable time towards accounting tasks, they are not making the best use of their time. The opportunity costs of accounting are exponential. The opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen, like focusing on growing and expanding the business.
Accounting can also reveal the health of a potential failing business. If the books are in disarray then a business owner can't properly evaluate the financial health of the business - which is the starting point of financial growth.
4. "I gave my client (or vendor) a financial break."
Entrepreneurs don't want to lose any deal, which is why many small business owners squeeze tight profit margins as a way to win the business. This isn't a smart approach. When I hear businesses say they gave a financial break to win the business, I know they are headed on the wrong path. Offering a client (or vendor) a financial break might be a genuine gesture, but it is not good for future business. The value of a product or service should reflect the quality of work. And by diminishing the cost, you are effectively telling the client your product or service is inferior. Entrepreneurs must be confident in what they offering, and giving financial breaks implies the opposite.
5. “I use Excel for bookkeeping."
Excel can be a great starting point for startups because it's easy to use, free, and chances are; you have it on your computer. But when businesses continue to use Excel past that initial startup period, they start to get into trouble. Excel provides many opportunities to make manual or financial mistakes in the books. Manually entering the formulas, filters and data connections in Excel is time-consuming and is prone to human errors. Excel also doesn't have the capacity to help you scale your business. As new products are introduced, assets are acquired and new employees join the team, books become more extensive. Excel can't keep up with these changes. Abandon Excel as soon as possible to give your business the foundation it needs to grow into a thriving organization.
6. “I was denied a Business Loan because my books are a mess."
This phrase is too common especially since today, we have online access to information with notes on preparing for a business loan application. A crucial point to remember as a small business is that most banks will evaluate the fiscal health of your business as well as the business owner's credit rating and personal financials. The best way to prepare for a loan application is to have a conversation with your Bookkeeper or Accounting Advisor. He or she can research what will be needed to accompany your application submission and get your books properly prepared for running financials the bank will want to examine like Cash Flow Projections, Collateral Schedule, and Outstanding Debt.
Career

Male Managers Afraid To Mentor Women In Wake Of #MeToo Movement

Women in the workplace have always experienced a certain degree of discrimination from male colleagues, and according to new studies, it appears that it is becoming even more difficult for women to get acclimated to modern day work environments, in wake of the #MeToo Movement.


In a recent study conducted by LeanIn.org, in partnership with SurveyMonkey, 60% of male managers confessed to feeling uncomfortable engaging in social situations with women in and outside of the workplace. This includes interactions such as mentorships, meetings, and basic work activities. This statistic comes as a shocking 32% rise from 2018.

What appears the be the crux of the matter is that men are afraid of being accused of sexual harassment. While it is impossible to discredit this fear as incidents of wrongful accusations have taken place, the extent to which it has burgeoned is unacceptable. The #MeToo movement was never a movement against men, but an empowering opportunity for women to speak up about their experiences as victims of sexual harassment. Not only were women supporting one another in sharing to the public that these incidents do occur, and are often swept under the rug, but offered men insight into behaviors and conversations that are typically deemed unwelcomed and unwarranted.

Restricting interaction with women in the workplace is not a solution, but a mere attempt at deflecting from the core issue. Resorting to isolation and exclusion relays the message that if men can't treat women how they want, then they rather not deal with them at all. Educating both men and women on what behaviors are unacceptable while also creating a work environment where men and women are held accountable for their actions would be the ideal scenario. However, the impact of denying women opportunities of mentorship and productive one-on-one meetings hinders growth within their careers and professional networks.

Women, particularly women of color, have always had far fewer opportunities for mentorship which makes it impossible to achieve growth within their careers without them. If women are given limited opportunities to network in and outside of a work environment, then men must limit those opportunities amongst each other, as well. At the most basic level, men should be approaching female colleagues as they would approach their male colleagues. Striving to achieve gender equality within the workplace is essential towards creating a safer environment.

While restricted communication and interaction may diminish the possibility of men being wrongfully accused of sexual harassment, it creates a hostile
environment that perpetuates women-shaming and victim-blaming. Creating distance between men and women only prompts women to believe that male colleagues who avoid them will look away from or entirely discredit sexual harassment they experience from other men in the workplace. This creates an unsafe working environment for both parties where the problem at hand is not solved, but overlooked.

According to LeanIn's study, only 85% of women said they feel safe on the job, a 5% drop from 2018. In the report, Jillesa Gebhardt wrote, "Media coverage that is intended to hold aggressors accountable also seems to create a sense of threat, and people don't seem to feel like aggressors are held accountable." Unfortunately, only 16% of workers believed that harassers holding high positions are held accountable for their actions which inevitably puts victims in difficult, and quite possibly dangerous, situations. 50% of workers also believe that there are more repercussions for the victims than harassers when speaking up.

In a research poll conducted by Edison Research in 2018, 30% of women agreed that their employers did not handle harassment situations properly while 53% percent of men agreed that they did. Often times, male harassers hold a significant amount of power within their careers that gives them a sense of security and freedom to go forward with sexual misconduct. This can be seen in cases such as that of Harvey Weinstein, Bill Cosby and R. Kelly. Men in power seemingly have little to no fear that they will face punishment for their actions.


Source-Alex Brandon, AP

Sheryl Sandberg, Facebook executive and founder of LeanIn.org., believes that in order for there to be positive changes within work environments, more women should be in higher positions. In an interview with CNBC's Julia Boorstin, Sandberg stated, "you know where the least sexual harassment is? Organizations that have more women in senior leadership roles. And so, we need to mentor women, we need to sponsor women, we need to have one-on-one conversations with them that get them promoted." Fortunately, the number of women in leadership positions are slowly increasing which means the prospect of gender equality and safer work environments are looking up.

Despite these concerning statistics, Sandberg does not believe that movements such as the Times Up and Me Too movements, have been responsible for the hardship women have been experiencing in the workplace. "I don't believe they've had negative implications. I believe they're overwhelmingly positive. Because half of women have been sexually harassed. But the thing is it is not enough. It is really important not to harass anyone. But that's pretty basic. We also need to not be ignored," she stated. While men may be feeling uncomfortable, putting an unrealistic amount of distance between themselves and female coworkers is more harmful to all parties than it is beneficial. Men cannot avoid working with women and vice versa. Creating such a hostile environment is also detrimental to any business as productivity and communication will significantly decrease.

The fear or being wrongfully accused of sexual harassment is a legitimate fear that deserves recognition and understanding. However, restricting interactions with women in the workplace is not a sensible solution as it can have negatively impact a woman's career. Companies are in need of proper training and resources to help both men and women understand what is appropriate workplace behavior. Refraining from physical interactions, commenting on physical appearance, making lewd or sexist jokes and inquiring about personal information are also beneficial steps towards respecting your colleagues' personal space. There is still much work to be done in order to create safe work environments, but with more and more women speaking up and taking on higher positions, women can feel safer and hopefully have less contributions to make to the #MeToo movement.