According to Webster’s Dictionary, a workaholic is defined as, "somebody who has a compulsive need to work hard and for very long hours." A recent study conducted by Statistics Canada showed that almost one-third of employed Canadians aged 19 to 64 (31%) identify themselves as workaholics. This statistics only applies to the typical 'employed' individuals -- the numbers for self-employed, home-based business owners are much higher. The main reason for this increase can be summed up in one simple sentence: the majority of self-employed individuals believe that the more hours you work, the more income you earn. In my case, this was true. It wasn't until I found myself working almost 100 hours (or more!) per week when I realized that the income I was earning was coming at a very high price.
When I first started my home-based business, I had all the time in the world to plan, strategize, organize, write, work, meet, talk ... well, you get the idea. As long as my husband was at work, I was free to do all the things that I needed to do to earn income. My typical day would be to wake up at 7:00 am, 'commute' to my basement office, and work through the day, rarely taking a break, except to grab a quick meal to eat at my desk, and close my laptop when my husband returned home from his day at the office, usually around 7:00 pm. We would share a take-out dinner, and after cleaning up the dishes (a quick drop in the waste bin), I would sneak back downstairs and work some more, until bedtime at around 11:00 pm. This usually happened between six and seven days per week.
Fast forward to today, and I am still married, but with three children under the age of six, a four-bedroom, four-bathroom home, and running my own business from my home office. The typical days of yore are long gone, and my daily schedule has shifted dramatically. I now get up in the morning and "work" from home, just not as much in the office as I used to. My 100-hour work week has dropped to less than half that, and I spend time with my family during what I have voluntarily declared "family time." I do not schedule calls, meetings or deadlines during my family time. My responses to emails do not usually come during this allotted time space, nor do I try to accomplish large tasks in this timeframe. I have, what I consider to be, a very healthy work / life balance now, but this did not happen overnight.
When my first son was born, we expanded my office to include a play area for him when he no longer slept 20 hours per day. He had is own space right beside me that was safe and secure, and I was free to work on my computer while keeping constant watch over him. Once he began walking, his area became too confined and he was no longer content to simply play with his toys. His attention span was dwindling, and as all toddlers do, he began to demand more interaction from me.
The day of reckoning, for me, finally came when I was participating in a tele-conference seminar while my son was napping. Halfway through the call, I was distracted by his cries on the baby monitor. Given that he had only been asleep for about 15 minutes, I thought I could "sneak" away from the call for a couple of seconds to quickly go and soothe him back to sleep. The scene that awaited me proved otherwise. He had taken off his diaper, and *ahem* painted not only his crib rails, walls and blankets, but also himself -- from his toes to his hips. I had a choice. I could leave him in his crib for a minute, run back to the office, rejoin the call and graciously excuse myself, allowing me to return to tend to his artwork. However, I decided to take the opposite route. I decided that the call would have to wait, and while all of the participants silently wondered where I had disappeared to, I was bathing my one-year-old (incidentally, if I had had access to a hazmat suit, I would have gladly accepted!)
Needless to say, when I had all the sheets changed, and my son was back to sleep, I returned to the seminar call. It had ended -- without an opportunity for me to explain my absence. It was not a shock to me when I was not asked to return as a guest by the seminar speaker.
From that moment on, I decided that I needed to get a better balance of when and where I could conduct my business. I learned the importance of ensuring that I could work without being distracted. I no longer booked calls or meetings when there was a possibility of being interrupted, even if it was during a time that I could usually expect to work without any disturbance. The incident above taught me to "expect the unexpected."
I also learned that it was much easier to book "family" time than it was to book "work" time. Family tends to be a little more unpredictable, whereas the interruptions from work can be controlled. I choose when to respond to emails, I choose when to answer the phone (or turn it off completely), and I choose when to work on projects. Most days now, this happens when the older kids are at school, and after they have gone to bed at night. Some weekends, when I have an especially large project, I can enlist the help of other family members to spend some time with the kids, but for the most part, my work is performed when family time is finished.
So what about those without kids or other family responsibilities, you ask? The same rules apply. Only, "family time" becomes "me time." As you can see from the beginning of this article, when I did not have little ones to worry about, I fell into the workaholic trap, pushing myself between 16-18 hours per day. Not only did I neglect my relationship with my husband, but I also neglected my relationship with myself. We've all heard of "me time." This is not simply a catch-phrase. It is a REQUIREMENT! ... Many life coaches will tell you that you cannot simply find time for yourself, you need to make time for yourself. I never did that -- my life revolved around my business, and I actually thought that WAS me time! Now, I'm not telling you to neglect your business, but simply realize that it's important to take time out for yourself in the process. It could simply be a 20 minute brisk walk around the block, a coffee break with a friend, a hot bath in the evening with a good book. Take time out of your day to do whatever it takes to allow your mind to think about you, and ONLY you.
I'm sure you've heard the proverb, "All work and no play makes Jack a very dull boy." Some of us may know the second half as, "All play and no work makes Jack a mere toy." The idea behind the proverb is that there needs to be a balance in work and play. Too much of one is going to be detrimental to the other. Or, simply put, find your work / life balance. Amazingly, this sentiment can be found as far back as 2600 B.C., attributed to the very wise Egyptian Sage Ptah-Hotep, in his instructions where he states, "One that reckons accounts all the day passes not a happy moment. One that gladdens his heart all the day provides not for his house. The bowman hits the mark, as the steersman reaches land, by diversity of aim. He that obeys his heart shall command."
It may have taken decades to build the Great Pyramid, but I think it's safe to say that they probably had a great work / life balance.
Wednesday, July 14, 2010
Home Business Pitfall # 2 - Poor Accounting Practices (Part 2 of 7)
I will begin this post by apologizing for yesterday's article length. I will admit that it was a bit of a long read, however, I eel very strongly about the first pitfall because it seems to be the one that most people fall into without realizing it.
Nevertheless, I will continue on to the next pitfall -- poor accounting practices. The easiest way for me to explain this one is to tell my story, and what it cost me. Up until last year, not including my monthly invoicing to clients, I regularly allowed my accounting to fall behind each and every year. My fiscal year end is December 31, however, I have until June 30 to file my taxes with the federal government. Each year, I took full advantage of that six month window, and usually around April 30, I would begin to compile the previous year's accounting. I managed to file my taxes by August of each year, at which time I was always hit with a penalty and some interest because I always owed money on my taxes (because of my income level, I do not do monthly remissions).
Here's where the cost comes into play. If I were to go back and tally up all of the interest and penalties I have paid on my income tax, I could have hired a professional bookkeeper, if not accountant, to do all of the work for me. And, I would have saved myself tens of hours of work each year, during which I could have been doing billable work, and subsequently earning more income.
The first thing to do is get yourself electronic accounting software. I personally prefer QuickBooks because of its user-friendliness. If you are more advanced in your accounting knowledge, Simply Accountingis another great choice. And, if you do not wish to spend the capital on the software, you can always use Microsoft Excel (or another spreadsheet solution.) Alternatively, there are online accounting solutions available, such as QuickBooks Online Edition, where you can store your data offsite, and update it on the fly. And finally, if you have the available funds, hiring a bookkeeper to manage your day-to-day expense receipts is always beneficial. The important thing to remember, however, is to keep an electronic record of all of your income and expenses. The benefit to you is that you can always run reports to provide you with specific data, especially when it comes to tax time.
Nobody enjoys accounting and nobody enjoys paperwork. Okay, maybe there are a choice few who do, but for the most part, people dread keeping accounting records. But, if you enter in your receipts, expenses, bills, etc., AS THEY ARRIVE, trust me -- it no longer feels like accounting. It takes a couple of seconds to record your gas expense and quickly jot down your mileage (if this is a requirement in your home based business). The trick is to make sure you are only recording the necessary data! Don't try to include your kids’ toys that you bought for Christmas -- they don't count. If you really think about the trade off of what constitutes a legitimate expense and the time to enter it into your accounting system, it only makes sense to worry about the major ones.
Last year, I made a promise to myself to keep on top of my bills, and at tax time this year I was able to submit my return early -- yes, early! -- and saved myself from the pain of penalties and interest. My reward? This year, I get to hire someone else to do my tax return!
Nevertheless, I will continue on to the next pitfall -- poor accounting practices. The easiest way for me to explain this one is to tell my story, and what it cost me. Up until last year, not including my monthly invoicing to clients, I regularly allowed my accounting to fall behind each and every year. My fiscal year end is December 31, however, I have until June 30 to file my taxes with the federal government. Each year, I took full advantage of that six month window, and usually around April 30, I would begin to compile the previous year's accounting. I managed to file my taxes by August of each year, at which time I was always hit with a penalty and some interest because I always owed money on my taxes (because of my income level, I do not do monthly remissions).
Here's where the cost comes into play. If I were to go back and tally up all of the interest and penalties I have paid on my income tax, I could have hired a professional bookkeeper, if not accountant, to do all of the work for me. And, I would have saved myself tens of hours of work each year, during which I could have been doing billable work, and subsequently earning more income.
The first thing to do is get yourself electronic accounting software. I personally prefer QuickBooks because of its user-friendliness. If you are more advanced in your accounting knowledge, Simply Accountingis another great choice. And, if you do not wish to spend the capital on the software, you can always use Microsoft Excel (or another spreadsheet solution.) Alternatively, there are online accounting solutions available, such as QuickBooks Online Edition, where you can store your data offsite, and update it on the fly. And finally, if you have the available funds, hiring a bookkeeper to manage your day-to-day expense receipts is always beneficial. The important thing to remember, however, is to keep an electronic record of all of your income and expenses. The benefit to you is that you can always run reports to provide you with specific data, especially when it comes to tax time.
Nobody enjoys accounting and nobody enjoys paperwork. Okay, maybe there are a choice few who do, but for the most part, people dread keeping accounting records. But, if you enter in your receipts, expenses, bills, etc., AS THEY ARRIVE, trust me -- it no longer feels like accounting. It takes a couple of seconds to record your gas expense and quickly jot down your mileage (if this is a requirement in your home based business). The trick is to make sure you are only recording the necessary data! Don't try to include your kids’ toys that you bought for Christmas -- they don't count. If you really think about the trade off of what constitutes a legitimate expense and the time to enter it into your accounting system, it only makes sense to worry about the major ones.
Last year, I made a promise to myself to keep on top of my bills, and at tax time this year I was able to submit my return early -- yes, early! -- and saved myself from the pain of penalties and interest. My reward? This year, I get to hire someone else to do my tax return!
Home Business Pitfall # 3 - Lack of Professionalism (Part 3 of 7)
Professionalism. What exactly is that? It is such an all-encompassing word, and describes things such as your wardrobe, your correspondence, your office space, your language. There are so many areas that can be covered in this article, but I am only going to discuss one particular topic -- you and your home office. By this, I mean how you present yourself and your business to potential and existing clients.
When I am working, I am hidden in a virtual world where I communicate via email, phone and fax. I very, very rarely meet with clients face-to-face, and when I have done so in the past, I chose to meet them at a mutually agreed upon location (ie: coffee shop, library, etc.) This offers me many liberties as far as my personal appearance goes. I don't exactly 'work naked' but if I feel like wearing my pyjamas to the office, I do so. If my hair is running in ten different directions, that's okay too. If the shirt I am wearing is still sporting the coffee stain from the unfortunate spill that morning, no one is the wiser.
However, if you are running a business where customers or clients are visiting you at your home, you need to pay attention to these details. Not only do you need to ensure that your personal appearance reflects the type of business you are running, it is crucial that you have a designated business area that is kept neat and orderly, and one that you have confidence that you can meet with your client without interruptions. And you also need to ensure that these details are taken care of, even when you are not expecting a client to show up.
I'd like to share a story about how I learned (the hard way) that meeting with your clients at your home office can be a tricky, tricky business. A number of years back, I used to provide desktop publishing services to my clients. Most of them were either in far off cities or other provinces, except for one client whom I will call Jenny. She was a very important client, and most of my time was spent working with her on a number of projects. Usually, when I had completed a project, I would courier the finished product to her office location, but on one particular occasion, she asked if she could pick it up due to time constraints. Even though this was the first time I would meet Jenny face-to-face, I trusted her implicitly, so naturally I agreed. We arranged a time later that afternoon where she would come by my office (also my home, remember) to pick up the paperwork. I made sure I gave myself enough time to change my clothes, tidy my office and send my family out for a walk to avoid interruptions.
Jenny showed up at my door 45 minutes after hanging up the phone. You see, she was unexpectedly "in the area" and decided to stop in a little earlier than planned, and she hoped this was okay.
My hair was carelessly tossed into a lopsided ponytail, my clothes were mismatched and wrinkled, and I'm not even sure I had had an opportunity to brush my teeth. The office was a disaster -- paperwork strewn about, toys all over the floor, breakfast dishes still on my desk. I had just put my son down for his mid-day nap, which he was convinced he did not need, and his wails of protest permeated the house. The dog was barking to be let outside. The TV still blared an episode of "Barney" ... have I painted the picture for you?
Although I told Jenny that it was not a problem, in my head, I screamed, "NO -- it is definitely NOT okay!" But the damage had already been done. After excusing my appearance, the mess and the noise, I invited Jenny into my office for a moment while I grabbed the envelope. I handed it over to her, with further apology for the situation, to which she replied, "Don't give it a second thought! It's nice to know that you're actually a regular human being!" After she left, I thought about this comment quite a bit, and while it was comforting to know that she understood the situation, it was also depressing for me that she had once viewed me as a professional, and in one fleeting moment, that perception was destroyed.
Jenny remained a client of mine for a number of years following that experience, but I think something in our business relationship changed. Her email requests became less formal and my project quotes were no longer professionally prepared documents but simple emails. Nothing in the work performance lacked professionalism, mind you, but because I had lost that perceived level of professionalism, the relationship no longer demanded the same level of respect.
So you see, in the world of a home-based business, perception can be everything. You can be a highly-paid, highly-respected business owner to your clients, but make no mistake, that can be erased in the blink of an eye.
From that day forward, I always kept the thought in the back of my mind that someone could show up at the door at any minute. Whether it is from an existing client, or a potential client, we are all susceptible to the "pop in." I did everything in my power to keep the mess to a minimum, my appearance became more of a focal point, and I never, ever leave my dishes on my desk.
When I am working, I am hidden in a virtual world where I communicate via email, phone and fax. I very, very rarely meet with clients face-to-face, and when I have done so in the past, I chose to meet them at a mutually agreed upon location (ie: coffee shop, library, etc.) This offers me many liberties as far as my personal appearance goes. I don't exactly 'work naked' but if I feel like wearing my pyjamas to the office, I do so. If my hair is running in ten different directions, that's okay too. If the shirt I am wearing is still sporting the coffee stain from the unfortunate spill that morning, no one is the wiser.
However, if you are running a business where customers or clients are visiting you at your home, you need to pay attention to these details. Not only do you need to ensure that your personal appearance reflects the type of business you are running, it is crucial that you have a designated business area that is kept neat and orderly, and one that you have confidence that you can meet with your client without interruptions. And you also need to ensure that these details are taken care of, even when you are not expecting a client to show up.
I'd like to share a story about how I learned (the hard way) that meeting with your clients at your home office can be a tricky, tricky business. A number of years back, I used to provide desktop publishing services to my clients. Most of them were either in far off cities or other provinces, except for one client whom I will call Jenny. She was a very important client, and most of my time was spent working with her on a number of projects. Usually, when I had completed a project, I would courier the finished product to her office location, but on one particular occasion, she asked if she could pick it up due to time constraints. Even though this was the first time I would meet Jenny face-to-face, I trusted her implicitly, so naturally I agreed. We arranged a time later that afternoon where she would come by my office (also my home, remember) to pick up the paperwork. I made sure I gave myself enough time to change my clothes, tidy my office and send my family out for a walk to avoid interruptions.
Jenny showed up at my door 45 minutes after hanging up the phone. You see, she was unexpectedly "in the area" and decided to stop in a little earlier than planned, and she hoped this was okay.
My hair was carelessly tossed into a lopsided ponytail, my clothes were mismatched and wrinkled, and I'm not even sure I had had an opportunity to brush my teeth. The office was a disaster -- paperwork strewn about, toys all over the floor, breakfast dishes still on my desk. I had just put my son down for his mid-day nap, which he was convinced he did not need, and his wails of protest permeated the house. The dog was barking to be let outside. The TV still blared an episode of "Barney" ... have I painted the picture for you?
Although I told Jenny that it was not a problem, in my head, I screamed, "NO -- it is definitely NOT okay!" But the damage had already been done. After excusing my appearance, the mess and the noise, I invited Jenny into my office for a moment while I grabbed the envelope. I handed it over to her, with further apology for the situation, to which she replied, "Don't give it a second thought! It's nice to know that you're actually a regular human being!" After she left, I thought about this comment quite a bit, and while it was comforting to know that she understood the situation, it was also depressing for me that she had once viewed me as a professional, and in one fleeting moment, that perception was destroyed.
Jenny remained a client of mine for a number of years following that experience, but I think something in our business relationship changed. Her email requests became less formal and my project quotes were no longer professionally prepared documents but simple emails. Nothing in the work performance lacked professionalism, mind you, but because I had lost that perceived level of professionalism, the relationship no longer demanded the same level of respect.
So you see, in the world of a home-based business, perception can be everything. You can be a highly-paid, highly-respected business owner to your clients, but make no mistake, that can be erased in the blink of an eye.
From that day forward, I always kept the thought in the back of my mind that someone could show up at the door at any minute. Whether it is from an existing client, or a potential client, we are all susceptible to the "pop in." I did everything in my power to keep the mess to a minimum, my appearance became more of a focal point, and I never, ever leave my dishes on my desk.
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