Jeremy Tauri: Even nice guys make tough calls

Jeremy Tauri tackles the hard finance questions.

If you have more work than you can handle, you should revisit your price.Have you ever found yourself stuck in a decision-making rut in your business?

Here are five tough decisions that SME owners face that can be overwhelming to deal with.

Do I make changes or run with the status quo?

There is no perfect business. Habits, trends, people, seasons, fashion ... they all change. Always look to make changes and improve what you're doing. Be curious, ask questions and remember that your competition will be looking for an advantage or point of difference over you. Change is good, it keeps things fresh and interesting.

Should I invest more into my business?

The key to an investment is making a return. If your path is one of growth and measured success then you may have some optimism and confidence about investing more into your business. When times are tough, however, then things can be a little more emotional. Make sure you don't isolate yourself from professional advice to get a clear, independent and unemotional opinion of the financial outcome, no matter which of the two scenarios you fall under.

Should I retain a difficult employee?

Despite your best efforts an employee or hire just isn't working even though you have tried your best. While there are processes that need to be followed what is tough to come to grips with is the impact you imagine this will have on them and your own judgment of your own decision to end their employment. You're a nice person, right?

The reality is if it's not working and is affecting your business negatively you need to make a move. You're not doing yourself, your customers, your business or the employee a favour by dragging it on.

Should I put up my prices?

Ninety per cent of the time the answer is yes.

Some businesses I've dealt with seriously undervalue their work.

The real fear is losing clients by raising prices. But, if you have more work than you can handle, you should revisit your price, otherwise be prepared to work longer and harder, which is only sustainable for so long.

Jeremy Tauri is an associate at Plus Chartered Accountants.