Why Reducing Stress Stabilises Your Profits

As a small business consultant, I see the impact that stress has on people’s lives up close. Many times it is a good thing as it forces the business owner to adapt and excel so that his business thrives. Excelling, however, is contingent on the business owner knowing how to harness small doses of stress and manage its effects.

Unfortunately, for far too many people stress both consumes them and paralyses their decision-making abilities so that their health deteriorates and their business suffers as their short-term profits evaporate.

Elevated stress levels over time can lead to myriad health issues, such as high blood pressure, obesity, sleep problems, and headaches. Work relationships with employees, clients, and suppliers can also suffer as unmanaged stress can cause the owner to make more mistakes, become irritable, lack focus, and perhaps even resort to medications to lessen the feeling of being overwhelmed.

Unmanaged stress can impact profits. The American Institute of Stress in 2014 estimated that around $300 billion is lost each year in America due to stress related absenteeism and health costs. While in the UK, the Labour Force Survey found that 11.7 million days were lost in 2015/16 due to stress.

As an owner’s ability to perform suffers due to stress, the management of the business can deteriorate. Client work will not get the attention that it deserves, staff will leave to find a less volatile work environment, and competitors will start to gain an edge. Diminishing business performance will undoubtedly cause the owner to become even more stressed, leading to further poor decision making. It will only be a matter of time before the overall business declines because its foundation, the owner, is unstable.

So, what is the small business owner to do?

  1. Remember to keep things in perspective. While the success or failure of your business endeavours are largely dependent on your efforts, there are many things outside your control, such as the economy, regulatory change, and political decisions.
  2. Focus your efforts on the task at hand. Evidence suggests that multi-tasking does not work. It only leads to ineffectiveness and inefficiencies. Just think how dangerous it is to text and drive at the same time; it is illegal, not just inadvisable, as you are repeatedly shifting your focus from the road to the phone. You cannot do multiple tasks at once and expect to do them all at the same high level of performance. Constantly switching your focus as you move between tasks drains your mental reserves.
  3. Schedule your activities to achieve control over your day. There is a reason why militaries and schools are highly regimented, and that is because routine is the best way to achieve results. If you want to have less stress, you need to have more planning, which should encourage you to schedule your activities, track the time taken to complete these activities and then follow up on them to see how it could be done better in the future.
  4. Document processes and repetitive tasks, whether they are back office or client facing. Thanks to technological advancements, this is now very cost effective with companies like Process Street or SweetProcess specialising in standardising operating procedures. Every successful business is bigger than any staff member, even the owner. Therefore, by documenting work process and key areas of organisational knowledge this will allow a new person to step in and with minimal training pick up where the last person left off. If everything is in the owner’s head, or in the heads of employees, you are putting your business in a very precarious position.

As you can see, having high levels of stress for indefinite periods of time and having no way to manage this will have a negative effect on your health and overall business performance. Managing stress is vastly more important than chasing profits because most small businesses are an extension of their owner and an owner can’t just take six months off on stress leave and have other people cover for him. A healthy owner equals a healthy business and a higher chance of converting profiits into a long term sustainable future.

Benard Chedid is a small business consultant based in Sydney, Australia. His aim is to help small businesses professionalise by filling in the missing gaps that are holding them back, whether marketing or administration, sales or bookkeeping.

Image: Flickr

News or Noise

IF you are like most hard working professionals, then you probably make a habit of reading the news each day.

The New York Times, The Boston Globe, The Sydney Morning Herald.

The Wall Street Journal, the FT or The Economist.

There are many titles to choose from.

You scan the headlines for an interesting story and then dive in, happy to have something to read on the way to work, glad to be able to discuss the latest sporting headlines with colleagues – with whom you may have nothing else in common.

The reality though is that most of the time the news is not news, it’s noise. Information for information’s sake, something to read, something to talk about. Another story to consume our attention.

Why do so many of us choose to spend our time in this way?

It’s possible that the alternative is just too uncomfortable – silence and time to think.

Time to read a book that changes our world view. Time to write an article that challenges someone’s thinking. Time to create something remarkable that solves a problem or delights an audience.

We each have a choice about how we spend our time.

Are you filling your time with noise, or making an effort to create a story all of your own?

Slow Dance

Are you dancing too fast?

Have you ever watched kids on a merry-go-round,
or listened to the rain slapping on the ground?

Ever followed a butterfly’s erratic flight,
or gazed at the sun into the fading night?

You’d better slow down, don’t dance so fast,
time is short, the music won’t last.

Do you run through each day on the fly,
when you ask “How are you?”, do you hear the reply?

When the day is done, do you lie in your bed,
with the next hundred chores running through your head?

You’d better slow down, don’t dance so fast,
time is short, the music won’t last.

Ever told your child, we’ll do it tomorrow,
and in your haste, not see his sorrow?

Ever lost touch, let a good friendship die,
’cause you never had time, to call and say “Hi”?

You’d better slow down, don’t dance so fast,
time is short, the music won’t last.

When you run so fast to get somewhere,
you miss half the fun of getting there.

When you worry and hurry through your day,
it’s like an unopened gift thrown away.

Life is not a race, do take it slower,
hear the music before your song is over.

~ David L. Weatherford