Online Business – Is It for You?

I am going to start with a bit of a ‘controversial statement (as I am quite prone to do):-

Starting a Business, Online (or Offline) is NOT for everyone & actually may NOT be for YOU.

If you are looking at working for yourself and starting up a business, you might be the best Joiner, Painter, Mechanic, Salesperson, etc, BUT it may not be for you – If you don’t have or acquire certain traits, skills and experience, you will probably fail (maybe ending up owing a lot of money!) and being an employee is probably better for you: especially if you prefer:-

regular hours,

regular pay,

regular holidays,

sickness pay, or

are risk averse,

lack willpower and stamina.

Working for yourself and starting a business is definitely NOT a job. You have got to ask yourself if starting up and (hopefully) running a viable, successful business is for YOU – and no-one else.

This is exactly the same for an Online business, maybe more so. Just setting up a website for your Offline business is definitely NOT classed as running an Online business – really, all Offline businesses should have a website as an online presence as a minimum, however if you are really set on setting up an Online business, then there are specifics that must be addressed:-

It is NOT EASY

It takes TIME

It takes MONEY (maybe not a great deal initially but it does cost if done correctly!)

It is NOT a ‘Get Rich Quick’ solution

You will need to LEARN & develop a new set of skills and be comfortable with Marketing

An understanding of Computers will be required & you must be willing to learn

In comparison to a ‘traditional’ bricks & mortar’ offline business, an Online business can be very cost-effective as a start-up. So… What do YOU consider as an Online business?

Lots of people have found many ways to run a successful (profitable?) Online business, I have personally made a decent living selling items and information on a ‘popular’ auction site but the method(s) I have learned are only a few and I am currently still looking to learn other methodology and processes.

As an example, please ‘Google’ (funny how this has become a ‘verb’!) or place in your search engine “make money online” – at the time of writing this gives 165 Million results, so there are many ways (some good, some not so!) regarding making money online. Have a good look around and see how big the online business is, and how vast the number of opportunities are. The only thing I recommend is NOT to buy anything before you have had a good look around – there are lots of scams and totally useless products/programs out there – so Caveat Emptor:- ‘Buyer Beware’!

I want you to understand the range of opportunities out there, and that what may be suitable for some people may not be suitable for others.

Looking at things from a positive angle however, I believe the plus points of an online business are:-

Anyone can start and run a business, with no restrictions on age, race, gender, education, privilege

No commuting or having to get up and get ready for an early or late start

You are working for yourself, not as a wage slave for an ungrateful boss/company

How to Make Money Online Part 2 – Starting Your Affiliate Marketing Business

Last article we looked at lots of different ways to make money online. We found that affiliate marketing is a great choice for people starting out. This is because quite large sums of money can be made for a very small investment of money. This is exactly what everyday people need, to pay off credit cards, mortgages and get back on top of their finances.

The first thing to be aware of when starting up an affiliate marketing business, is that making money online is never quite as easy as it is promised. After reading lots of “how to” articles, and paying to join a training system, I discovered that it takes time and effort to make anything happen. If we were told this before we signed up and started, we would have a much better frame of mind, and be much more likely to succeed.

For those of you thinking of starting affiliate marketing, rest assured it is definitely a worthwhile thing to spend time doing. You need to begin by expecting to “learn the ropes” first. There are quite a few processes and skills which need to be learned, before any real substantial money can be made. If you begin by thinking you will earn $2000 in the first month, you may be disappointed. Don’t get me wrong, goals and dreams are very important, but expect to do some hard work before you see the money they promise.

Some useful tips when first staring out are:

• Have a goal – Where you end up is largely set by what your goals and dreams are.

• Write them down – There is a lot of research showing that written goals are a lot more likely to come to pass than goals in your head.

• Do some research – Don’t buy into the first training package or system you find, look around and find one which is best suited to you.

• Have a plan – Plan what steps you will take to successfully get a campaign off and running. A good training package will outline the steps needed to make money online.

• Follow your plan till you see results – Don’t get distracted by all the other things you can do to make money, if it’s not in your plan.

• Fine tune – When you are making money, analyse your results, see what is working and what isn’t and plan your next campaign to suit.

If you invest in a training program, they will outline the practical things which you need to do to get everything linking together and working properly. Some of these include:

• Setting up a ClickBank account.

• Setting up a PayPal account.

• Buying web hosting, or showing you free hosting websites.

• How to get cheap domain names.

• How to link your domain name to your hosting site.

These are mechanical steps which every Affiliate marketer must do, before they can start choosing products, researching keywords, creating landing pages, driving traffic and analysing the results.

Next time we will look at how to choose the best products from ClickBank

How To Start A Business With Zero Finance

Can you make money out of nothing? Don’t you want to know how to start a business with zero finance? Do not be surprised because the Net makes this not only possible, but also easy-to-do for everyone. Do you need to be a computer guru? The answer is NO! You need not be a computer expert or Internet marketing specialist. All you need is a fire in your belly to achieve success and an ongoing desire to learn. We are going to look at 3 simple steps and will expand on it later.

How?

This is the million-dollar question, right? Well, let us take it step-by-step:

1. Start a blog – once upon a time, to launch a business the minimum needed was an investment to create a professional looking website. Today also, a website is a great asset when you start a new e-business. However, it is not the only way to do so. You can also use a blog. A blog is free of cost and an excellent way to launch your business with zero investment. You can add everything you need on the blog including a shopping cart, auto responder and all the paraphernalia required to run a modest yet efficient website – all for free although you have the option to upgrade the services you receive from whatever provider you choose.

There a few out there:-

1. Blog spot/Blogger

2. WordPress

3. Type pad

4. Some hosting companies provide blogging options.

2. Affiliate marketing – this is an exceptional way to establish your business for free. What this means is you advertise other people’s product and get paid a commission for it. In some instance depending on what you are promoting the parent organization of which you wish to become an affiliate would not only offer you a free and well-designed website, but also all the tools and assistance you need to market their product. In addition, you would get a percentage as commission for every sale you make through your website.

3. Free advertisement – in order to make yourself known on the Internet you need to advertise your presence heavily and persistently. This too, can be achieved free of cost. All you have to do is write a few informative and interesting articles and submit it to free article directories or ezines. This process would help you build an enviable traffic to your blog almost overnight and your business would show profit in no time.

So thinking of starting a business and have no money, do not despair you can. The ingredients for success are these three simple steps, a positive attitude and an unquenchable thirst to succeed.

How to Make Money From Online Business

Are you keen to make money from online business, but don’t know where to start? With so many experts and gurus offering so much advice across the Internet, it can be very confusing when trying to figure out how to make money from online business, and how to set up an ongoing income stream that will provide for you and your family for years to come in the future.

Why make money from online business?

The question arises why you should choose to make money from online business is supposed to other businesses. The first point to make is that any business activity you conduct online generally requires a smaller outlay of money at the beginning, making the starting of a business online and attractive proposition. You do not have to pay out thousands of dollars per month for things like rent, stock or staff, because you can make money from online business by yourself, working in the comfort of your own home and working hours that outside of the regular employment times.

This means that you can start to earn money from your business while he was still working in your current employment, giving you the possibility of setting up an extra income stream as opposed to an alternative income stream. Once your activities online or yielding a large enough amount of money, then you can phase out of your day job and focus all of your efforts exclusively on attempts to make money from online business.

Why do many people fail to make money from online business?

The fact is, thousands or even millions of people set out to create a stream of income from the Internet, but almost all of them fail to make money from online business after a number of months or years. Sure, part of this can be put down to the hard work involved, and the fact that many people are doing this in their after-hours time, but much of it can also be put down to the blatant opportunism displayed by so-called experts across the Internet. I personally have signed with five Internet marketing gurus, and thus far have been disappointed by all five.

The unfortunate truth about these courses is that most of them over promised and under deliver in their information about how to make money from online business. In my experience, there is no magic formula that will instantly put tens of thousands of dollars in your PayPal account! These schemes may be out there, but I have never experienced one. In my case, there has always been no substitute for hard work, long hours and money invested to obtain the tools that will allow you to earn money from online business.

Is it possible to make money from online business?

The answer to this is yes, it is possible! I know because I have achieved my goal of starting to earn money from my Internet activities, and my new task is to further this to the point where it surpasses all other income streams. But I do believe, and am experiencing the truth that it is possible to make a great income online, if you choose the tools and courses carefully and don’t throw thousands of dollars at meaningless promises!

With hard work, I never say die attitude and a small amount of money it is possible to create a future for yourself and your family from the Internet. It is possible to make money from online business.

Requirements To Start An Online Business

There has never been a better time than now to consider starting a small business. The Internet provides almost limitless opportunities for aspiring entrepreneurs. Many people make the mistake of starting an online business based on the recommendation of their cousin Larry without any knowledge about the business.

Before jumping into the first opportunity you hear about, do some research. Make a list of subjects (called niches) that you are interested in and knowledgeable about. If you want to enter into a business where you have no expertise, make sure that you can get the knowledge you need before making a financial commitment.

Once you have your list, research each niche by doing a search. Make sure there is a market for the businesses that you are interested in. If you do a search and very little comes up, it probably means that there is little interest in that field. In that case, you would probably find it difficult to make money in that business. On the other hand, searches that show 50 to 100 million sites may be too competitive to make any real money. Look for a balance somewhere in the middle.

After you have narrowed down your list, look for products that are related to your niche. Find 5 to 7 products for each niche. Two good places to go for this information is Clickbank and Commission Junction. Clickbank handles only digital products, Commission Junction handles physical as well as digital products.

Look for products that sell well. Check out the sales pages for each of these products. Are they compelling? Do they make you want to buy it? Choose the 3 best products for each niche.

By using the parameters above, you can easily choose which niche might be the best for you. Armed with this information, you are ready to determine what type of online business is best for you, regardless of what cousin Larry says.

Do you want to learn how to make money? Get all the details and start making money online!

Money Making Internet Business – How to Start Earning Money Online in 5 Easy Steps

Any project that’s worthwhile involves a process that one must go through before reaching successful completion. Achieving your goals for a project requires you to be dedicated and focused. Multiple steps will need to be completed over time for maximum results. Starting a money making internet business is no exception. Here is the easiest way to get started and be on your way to success.

Choose a Niche

You should choose a niche that you are comfortable talking about. This will be significant because you need to be able to create a lot of content around the topic.

Create a Website Around Your Chosen Niche

Don’t worry if you have no idea how to create a website. Most web hosting services come with a program called WordPress, you can use this program to create your blog. There are also free ways to create a blog. Do a search on Google to find a free program that works for you but if your serious about starting a money making internet business, I highly recommend purchasing web hosting and using WordPress.

Do Keyword Research

Use a keyword research tool to find out what keywords people are using within the niche to find what they’re looking for. This is one of the most important steps when creating your blog because you want to write about topics that are actually being searched for in the search engines. It’s best to target long tail keyword phrases containing three or more words because these usually have less competition.

Write Articles About Your Chosen Niche

Begin with writing at least five articles and post these articles to your blog. When you write the articles, include the keywords that you found with the keyword research tool. Write and post a new article to your blog each day to keep your blog fresh and updated, this will help you achieve higher rankings in the search engines.

Join Affiliate Programs In Your Chosen Niche

Most affiliate programs provide you with banners, links and other marketing material that you can use to promote their product. Pick a marketing material and post it to your blog along with your special affiliate link. You will get paid each time a visitor clicks on the link and completes a sale or a specific action.

If you follow these steps, you’ll be well on your way to success. So set your goal and put in the time and effort to achieve it! Don’t wait, get started now. You will be enjoying the fruits of your accomplishment sooner than you think!

How to Start a Foreclosure Cleanup Business "On the Cheap"

There are some definite costs to starting a foreclosure cleanup business. It’s not one you can start with no money – and don’t believe anyone who tells you otherwise. But, costs can be mitigated. Following are some concrete suggestions on how to start a foreclosure cleaning business “on the cheap.”

3 Concrete Suggestions for How to Business Cleaning Foreclosures Cheaply

Rent Equipment: While it’s ideal to have your own equipment when you own a foreclosure cleanup business, you can rent almost everything you need until you can afford to outright purchase it.

For example, a trailer and a dumpster. Most jobs will require these, as you will have to clean and remove trash and debris from a property. But this equipment can be rented very reasonably.

Equipment Tip: Familiarize Yourself with Costs before You Start Marketing

To start to get an idea of the costs of things you will be renting often (eg, ladders, lawn equipment (in warm seasons); tools, etc., visit your local Home Depot or Lowe’s. As these are built-in costs for your business, you should have an idea of how much it will cost to rent these things for your foreclosure clean out business until you can afford to buy them.

Subcontract: Another way to start a foreclosure cleanup business on the cheap is to subcontract out as much as you can. Cleaning, you can handle yourself. But, if there are jobs that you’re not equipped to handle because you either don’t know how, or don’t have the proper tools, outsource – eg, painting, plumbing, electric, window repairs, etc.

Just build the cost of hiring contractors into your estimate.

Market Online: One of the biggest costs most new businesses face is marketing. Luckily, a foreclosure cleanup business is one where marketing can be done on the cheap. Why? Because your primary customer base (eg, realtors, bankers and investors) are all online.

And, they are easy to find. So use email marketing. It’s free. Add a couple of vehicle signs to this (every foreclosure cleanup business should have vehicle signs) and this is all the marketing you’ll need to do to get business flowing in initially.

While there are legitimate startup costs you can’t get around when you start a foreclosure cleanup business (eg, insurance, vehicle, phone), everything else can be done “on the cheap” until you start bringing in business.

Learn more of what you need to know to start a successful foreclosure cleaning business.

Start Your Home Business And Make Money Right Away – Without Any Talent, Experience Or Skills

For whatever reason, people hesitate starting a home business and making money at home because they don’t think they’re “qualified.” They think they need more education. They think they are missing something and not sure if they are “ready.”

But the thing is, you can make money at home (or anywhere else for that matter) without knowing a thing about business, selling, marketing, or running a company.

How do I know?

Because it happens to people with no skills, talents, money or experience all the time.

In fact, most of the really successful business owners out there are not good at everything their business does. They delegate and outsource. They find people to do the things they can’t or aren’t good at, and just focus on the one or two things they are good at.

I think the ultimate example of this would be — and I hate to use this example, but it’s apt — Hugh Hefner, the guy who owns Playboy Magazine.

He creates his magazines and doesn’t do any of the writing, selling, photography or anything. He just kind of walks around in a robe with women all day. He’s the personality behind the operation. And that’s what he does. He leaves everything else to others more capable than himself.

And by surrounding himself with talent, instead of trying to “be” the talent, he built the Play Boy empire.

Now, I’m not saying you have to get into a raunchy magazine business or anything like that. My point here is, you can start your home business whenever you want. If you don’t know what you’re doing, simply find people to do the stuff you can’t or don’t want to do and just focus on the one or two things you can do.

These days with the Internet and the many dirt cheap service provider auction sites, you can outsource just about anything you want — the sales, bookkeeping, marketing, copywriting, all of it.

So if you are wanting to start a home business, don’t let fear of not knowing enough about business or lack of real world experience stop you.

The Truth About Starting an Online Business

What happens when your Internet marketing empire doesn’t take off that quickly or isn’t that profitable? Yyou feel like a miserable failure. So, then you invest more time and money to get more information, with similar results. Who really gets rich here? The people selling the information on how to get rich. It begins to feel like a hamster wheel in which you run and run and run but never get anywhere.

I’ve had a virtual online business since 1999, and it’s neither quick nor easy. What I’ve discovered is that some people can exploit a particular strategy for a short time until someone or something shuts them down, and then they’re on to exploiting the next newest strategy until it no longer works, and then they move to yet another new strategy. It’s tiring just to write about this process!

As I reflect on my 7 years in business, I really wish I’d known then what I know now. Since I get a number of questions and inquiries every week from “newbies”, or business owners new to the Internet marketing world, about how to get started in an online business, here’s my list of 10 things I wish I’d known about Internet marketing when I started my online business:

1. Niche your way to riches. Finding the exact market that needs what you have to offer is one of the primary keys to success in any business, but especially when you’re trying to do business online. Taking a shotgun approach and foolishly believing that “everyone” needs your product or service is the quickest way to failure. You need to be able to identify and describe your niche market, from determining what problem the niche market is actively trying to solve and what they’ll pay for (as well as how much they will pay) to what publications they read, what groups/associations do they belong to, and where they hang out both on- and off-line. The more narrowly focused your niche, the better. So, owners of Golden Retrievers is a better defined niche than dog lovers, and executive female golfers is better than women athletes.

2. Acknowledge your expertise. One of the great difficulties of online business owners is their inability to acknowledge their expertise in an area. It took me years to realize that while others did have a higher level of expertise than me, there was a very large group of people who knew less than me — and it was to those people I could become an expert! And, better yet, they would pay me to learn it so they didn’t have to go through the same trial-and-error method I did.

3. Create a content-packed web site. Content relevant and useful to your target market, embedded with keywords that your target market might use to find you, are the magic wands that enable you to be found on search engines. For years, my web site was simply an online brochure with details of my service offerings. It was not until I regularly started writing articles for my target market and posting those to my web site and blog did I see a noticeable increase in both the amount of traffic to my web site as well as in my number of newsletter subscribers. If you’ve been in business for awhile, you’ve got a good idea of the problems that your customers face. Your articles can serve as the solution to the common problems and questions of your target market.

4. Build relationships online. Even though an online business is virtual and you meet few of your clients and prospective clients face-to-face, it is still possible to build trusting relationships online. The most important thing to remember is that your personality needs to shine throughout all of your online ventures. So whether you share personal stories about your life or business (these will be very popular with your visitors), or write articles or web site text in the same way you speak, you need to give visitors an experience of what it means to do business with you. You can also use audio and video on your web site as well as photos of you in action in your business. Remember, most people need to get to know, like and respect you before they’ll decide to buy what you have to offer.

5. Discover reputable sources of technical and Internet marketing “how-to” information. Online technology and Internet marketing strategies change from moment to moment, and it’s tough to keep up with the latest and greatest innovation. You’ll need to read lots of ezines and visit lots of web sites each week just to stay on top of things.

6. Create several “stay in touch” devices. An ezine (email newsletter), blog (web log), and autoresponders (series of automated follow up emails) are the quickest and easiest ways to stay in touch with your current clients and to bring prospective clients into the fold. I think the most effective ezines are published weekly — it gives you one excuse every week to reach out to your contact database. Blogs tend to be attention hogs, so they are most effective as a marketing strategy when you post to them 3-4 times per week. Once you’ve written the content for a series of autoresponders, they can serve as a personal marketing arm for you, as they can be personalized and give prospective clients the impression that you’re writing a personal email just to them. The more “stay in touch” strategies you use, the quicker your prospective client base will get to know you and expect to regularly hear from you.

7. Provide a clear call to action. Web site visitors generally want some direction in what action they should take next. Whether they visit your web site, attend your speaking engagement, read an article you’ve written, or listen to one of your podcasts, they want to know what to do next to stay in touch with you. The call to action I always recommend is to get people subscribe to one of your “stay in touch” devices, whether that’s your ezine, an autoresponder series, or your blog. In most businesses, your contact database is the asset with the greatest value. It’s no different in an online businesses, where the the name and email address of your visitor is gold. Make it simple for someone to decide to initiate a business relationship with you — have your call to action in your brochure, on your business card, on every page of your web site or blog, and in the audio of your podcasts.

8. Immediately create information products. Creating information products, like ecourses, ebooks, CD or DVD series, workbooks, or audio downloads will help you immediately establish your expertise, create multiple revenue streams for your business, as well as give you a good understanding of the problems faced by your niche market. I’ve been quite slow to jump on the info product bandwagon, as I’ve just been unwilling to carve out the necessary time to create them. The creation process is time-consuming, but once something has been created, it can be a revenue stream for many years. In my early business years, I didn’t think I had any useful info to share with anyone, and now I realize that all the stuff I attributed to “common sense” should have been packaged and sold as information products. So, what info do you think is common-sense in your industry? What format will be most attractive to your target market?

9. Develop a marketing funnel. Creating a marketing funnel of products and services priced from free to expensive, as well as a way to get visitors through that funnel via a marketing plan will give many more people access to your expertise at different price points. Many business owners make the mistake of offering just one thing — their service — and miss out on other ways to sell to and educate prospective customers. Brainstorm on other ways you might deliver your expertise to prospective clients — an ecourse, ebooks, teaching workshops, holding teleclasses, sponsoring mentor groups, etc.

10. Don’t expect overnight success. Despite what the television ads might state or what the information products might claim, success in the online world doesn’t happen overnight. There will be a few who will spot a profitable trend before anyone else does, but eventually the income will fizzle and they’ll have to find another profitable trend. Just like any other business, an online business takes a great deal of time and attention. Some of the tasks can be automated, but you still have to pay attention to what’s happening so that you can effectively create your marketing and promotion strategy.

It is possible to make a decent living from online sources. However, to be successful, you’ll need to do your research, be willing to invest your time, and persevere when the going gets tough.

Copyright 2006 Donna Gunter

Stopping Employee Theft in Your Coffee Business

Regardless to how good of an employer you are, and even if you treat your employees well, understand that employee theft is a reality, and you need to control it. While it may only be a very small percentage of your staff that might steal from you, it can have a significant financial impact on your coffee business. If it goes unnoticed, employees will usually become even more brazen in their activities.

When it comes to theft, your employees are likely to fall into one of the following four categories:

Mr./Ms. honest – these are people who would never think of taking anything if it doesn’t belong to them. If they happen to go home with one of your ballpoint pens, they’ll bring it back the next day, and feel guilty that they took it home, even though it was unintentional.

Incidental theft – these are people that will take home your pen by accident, and will keep it. And, they may scarf a piece of cheesecake occasionally when you aren’t looking, even though they know they shouldn’t. Because these items have minimal value, they have no great sense of guilt related to their activities.

Theft because of need and opportunity – this is when you have an employee who is perhaps living on the edge financially, and because they have the need, and because your security may be lax, they’ll take advantage of an opportune situation to take something.

Compulsive theft – this is the person who is always looking for something to steal, and they have absolutely no conscience about it. They typically rationalize the theft in their own mind. They consider you to be the rich, fat cat, and feel that they are over worked and under paid, so stealing from you is justified.

Employee theft probably exists to some extent within your operation, whether you are aware of it or not. You can most likely live with incidental theft, provided it doesn’t get out of control. Theft related to need and opportunity is, in reality, your fault. These people would probably not steal from you normally, but a lack of security procedures has created the temptation and means for them to do so. Compulsive theft must be discovered, stopped, and you must eliminate the person(s) responsible.

Losing product due to theft:

Your employees may have no desire or need for a sleeve of 12oz. paper cups, Java Jackets, or a roll of toilet paper… but they might like a frozen cake, gallon of chocolate sauce, 6-pack of beer, or a bottle of wine.

There are some simple things you can do to greatly reduce the chance of being ripped-off. First, don’t allow your employees to store their jackets, backpacks, and purses near where you store products. This makes it incredibly simple for someone to slide something into their bag or jacket pocket when no one is watching. I always had my employees store their personal belongings in the cabinet under the cash register (where someone would always be watching), or in my office, under lock & and key.

Second, keep the back door of your store locked with a key at all times (you or your supervisor being the only ones having a key). If customers regularly enter through your back door, this may not be an option. If your back door is an emergency fire exit (and it probably is), you’ll need to install an alarmed breaker-bar. The whole point is that you don’t want your employees to be able to flow in and out of the back door without you knowing about it. Carrying product out the back door to their car, a hiding place for later pick-up, or an awaiting friend, is one of the most common ways products will exit your store.

Once you have made it more difficult to stash things in their personal belongings, or carry them out the back door, employees may resort to hiding items in the trashcan. Of course you will unlock the back door to let them take out the trash. If they have hidden something in the trashcan, a dumpster-diving expedition will certainly be planned for after-hours to recover their treasure.

Periodic trashcan checks should eliminate this problem, or make it a far less appealing option to anyone considering this method to smuggle things out of your store. Buy a long handle 3-prong garden rake. When employees ask to take out the trash, accompany them, and have them hold the can up on the edge of the dumpster while you rake out the trashcan contents. What you are looking for are things that might have been hidden in the trash, but you can tell your employees that you are merely making sure that small wares aren’t being accidentally thrown away. During the 15-years I owned and managed restaurants, I discovered everything from six-packs of beer, bottles of wine, and packages of steaks hidden in the trash!

Another situation that will create an ideal opportunity for employees to steal from you is having only one person working in your store. If your baker comes in each morning a hour before you or the next employee, or if one person is left to clean and lock-up the place at the end of the day, opportunities for theft abound. As the old saying goes: when the cat’s away…

Always try to have at least two people in your store at all times. If there is not justification for having a second employee on the clock, then you will need to be that second person. If this requires you going from a 60-hour workweek to 80-hours, then this may not be a tolerable option. If this is the case, then at least invest a couple of hours more each day for a week or two to do some detective work.

During those times of day when only one employee is working, park at the far end of the parking lot, or across the street, so that you will reduce the chance of being noticed by your employee. If they are familiar with your vehicle, use your spouse’s or friend’s vehicle for a few days. Watch carefully (with binoculars if necessary). I know this all sounds a little CSI – like, but better to rest-easy, feeling fairly assured that your employee isn’t carrying away your store when you’re not watching. If I had the time, I could tell you countless stories of my experiences in catching employees red handed, loading the trunks of their cars.

If you suspect that theft of product might be occurring, but you’ve seen no direct evidence of it, then conducting a daily key item inventory may shed some light on the situation. Write down a list of 15 to 20 products that you think would be most appealing for someone to steal. In your coffee business, this might include items such as coffee, syrups and sauces, smoothie puree, biscotti, cookies, and desserts, sandwich meats & cheeses, and of course beer & wine (if you serve those from your operation). Then take an inventory of these items every day. Your employees don’t need to know what you are doing, and if they ask, simply tell them you are taking an inventory for ordering purposes.

What you are looking for are anomalies in usage. For example, let’s say that from your daily inventories you assess that you use about half a gallon of chocolate sauce per day. Then, one day you notice you used 1 1/2 gallons of chocolate the previous day. This should send up a red flag! Why did you go through an extra gallon of chocolate? Were you significantly busier yesterday, or did you featuring several drink specials which contained chocolate sauce? A quick review of individual item sales from yesterday’s cash register report should provide you with the answer. If you average one ounce of chocolate per beverage, then using 1 1/2 gallons means you should have sold approximately 192 beverages containing chocolate (128 oz. per gal. x 1.5 = 192). If this was the case, no problem. But, if you discover that you only sold 64 beverages containing chocolate, then 128 oz. (or 1 gallon) is unaccounted for and missing! A good indication that it probably walked out the door. If this happens, keep track of who was working on the day of the shortage. If this happens continually, eventually you will discover that the same person or persons were working every time.

Theft of money by employees:

Hopefully, none of your employees will have the desire to steal products from you, but some will be tempted by the lure of cold, hard, cash. Everyone could use an extra $20 a day. Employees who steal money from you will definitely hurt your bottom line, and must be eliminated.

The first way to reduce cash theft is to have a cash handling policy in place that will discourage theft. If multiple employees are using the cash register, and no one person is responsible, then I can almost guarantee that your cash drawer will keep coming up short on a regular basis. The fact that no one person can be held responsible for the shortages, will make grabbing a bill or two easy and appealing.

Implement a policy that one, and only one person is responsible for the cash register for the entire shift. They should count the drawer at the beginning of their shift to verify that they are starting with the designated change bank. Then, they should be the only person to ring up sales and make change. Even you, the owner/manger, should keep your hands out of their cash drawer. Finally, at the end of their shift, they should set aside the amount they started with in the change drawer, and total all the remaining cash, checks, and charges, and balance against what was rung up on the register. If they started with the right amount of money in the cash drawer, rang everything up, took all the money, counted back all the change, and they end up short… who’s fault is it? It can only be theirs. By implementing this simple policy, I once took an operation that was coming up $100 a day ($3,000 a month) cash short, and reduced it to $3 a day, in just 30 days! That’s over a $2,900 bottom line improvement, (in case you didn’t do the math)!

The other common method that a cashier might use to steal money from you is by using a method called, building a bank. This is the process of not ringing up items on the cash register, while still taking money from the customers, and then pocketing that money. Typically, they will obscure the view of the cash register display on the customer’s side with something like a flower, retail merchandise, or by turning the display so that it cannot be easily seen. Then, they will pretend to ring up an item, but will hit the no sale key instead, popping the drawer open so they can take the cash and make change, but in reality, they haven’t rung up anything. The other thing they might do when it is busy is to just not shut the drawer between transactions. They simply convey verbally the cost of items ordered by customers and take the cash, but once again, nothing has been rung up.

A cash register that prints out the order on a remote receipt printer to the person who will be preparing the item, can eliminate this problem. Quite simply, if the item isn’t rung-up, it won’t print out. If your barista or cook won’t prepare anything without a receipt (and they shouldn’t!), it will force your cashier to ring everything up.

If you observe that the cash register’s display has been blocked from the customer’s view, or there are an excessive number of no sale indications on your cash register’s detail tape, or notice that your cashier is not shutting the drawer between transactions, beware! While these may not be indisputable proof that your cashier is stealing from you, they should certainly heighten your vigilance to find out if something is going on.

If your coffee business only warrants having one employee working at a time, perhaps because you own a cart, kiosk, or low volume drive-through operation, then how do you go about keeping your employee from building a bank and stealing from you? The best solution I’ve seen is to turn your customers in to watchdogs. Affix a sign to the front of your cash register, in plain sight of the customer, that reads: If you don’t receive a receipt with your order, it’s FREE! This will force your cashier to hand each customer a receipt for their purchase. If they are building a bank, this means they will have to hand the customer a receipt that says – NO SALE; something they probably won’t fell comfortable doing!

The financial impact of theft of money can be extremely damaging, for example: Let’s say you have a cashier who is skimming off $20 a day by not ringing things up, and then pocketing the money. Not only did you loose the stolen $20, but the $7 of ingredients that were probably used to produce the ordered products; ($20 x 35% ingredient cost = $7.00). So in reality, you lost $27, and it will take an additional $41.54 in sales, to recover this loss; ($41.54 x 65% gross profit = $27). $27 a day lost to theft, X 21 days worked by the employee = $567 lost cash & product per month; $872 extra sales required to offset this loss. (Annual loss, $6,804; $10,468 in additional income required to offset loss.) You must stop theft of money!

Theft of money management:

If you have a manger running your operation for you, this can really create an opportunity for cash theft. Just about anyone who has ever run a food service operation (self included), probably felt that they were over-worked and under-paid. Some are tempted to grant themselves an unapproved raise. Your manger has the control key to the cash register, which means they have the ability to back off items that were sold. You would be wise to check your cash register detail tapes on a regular basis. If you see multiple items backed off in groups, or more worrisome yet, all backed off at the very end of the shift, beware!

A good way to keep this from happening is to establish a policy that no over-rings are to be backed off of sales on the cash register with the management control key. Instead, when the cashier makes an over-ring, they should take the receipt, write over-ring on it, sign it, and put it in the cash drawer. At the end of the shift, the total of all over-rings should be manually backed off of the sales total indicated on the cash register report.

Many years ago I had a manager that was stealing money from me in another creative way. This manager, who opened the store each day, would reset the cash register by Z-ing it out after the first half hour of business. He would then pocket the proceeds earned during that first half hour. Because additional sales were generated during the second half hour, the cash register hourly sales report would always show sales for the first hour of operation, thus eliminating any suspicion that something might be going on.

It wasn’t until I was doing a routine audit of cash register Z tapes that I noticed something wasn’t right. When you run a Z report, which resets the cash register at the end of each day, a multi-digit number will usually be printed somewhere on that tape. The next time you Z the register, that number will advance by one digit. I noticed that even though the tapes were sequential in date, every other number was missing. This tipped me off that the register was being Z-ed twice a day! When I confronted my manager with the tapes, his look of panic spoke volumes.

If you are doubting the honesty of any of your employees or managers, one way you can verify or eliminate your suspicion is by baiting the cash drawer. Slip an extra $20 bill in the drawer sometime during the day when they aren’t watching. If they don’t end up reporting at the end of their shift that they were $20 cash-over, I’ll do it a second time (just to make sure). If they don’t report it a second time, you should have no doubts that they are indeed, dishonest.

NEVER accuse an employee or manger of stealing unless you catch them red-handed (actually stuffing money into their pockets). Even though the circumstantial evidence may be overwhelming, unless you actually catch them in the act, they are likely to deny your accusations, and will probably file a complaint against you with the department of labor! The brief moment of satisfaction you will gain from letting them know you are aware of what they’ve been doing, will be quickly overwhelmed by the legal predicament you will find yourself in. You will be far better off to not make accusations. Simply terminate their employment. In many states, you do not need to provide a reason as to why you are letting them go. When they ask for an explanation as to why you are firing them, simply say: I don’t need to give you a reason, I’m just letting you go, goodbye!

Finally, don’t over look technology to help you with security. Surveillance cameras linked to a DVR (digital video recorder) can provide you with peace of mind, or evidence of theft. These systems have become very affordable, and many are easy to install. The value of these cameras go beyond having a video record of operations. The mere fact that employees understand that their activities are being video recorded, will usually discourage them from doing things that they might not think twice about, if no one was watching.

I think it’s important to not be paranoid about employee theft. Certainly, you don’t want to be constantly obsessed with the suspicion that everyone is stealing from you. In reality, the majority of your employees are probably honest people. But, you would be wise to establish some simple safeguards, and maintain a watchful eye.

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