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The Myth of Multitasking

For a long time, I believed in the myth of multitasking. I carried around my exhaustion proudly. Every chance I had, I waved it like a flag to show that I was doing many things, all at the same time. And our culture rewarded that. Friends called me a hero. It encouraged me to add another spinning plate. But gravity always wins, and so it all came crashing down. If only I knew then what science has shown us about what multitasking does to our brain.

The meaning of multitasking

First of all, to clarify what I mean by multitasking. Strictly speaking, talking to our kids while we drive is multitasking. Or cooking dinner and listening to music. These routine life activities are not the topic here. This is about entrepreneurs multitasking activities that grow and manage their business. For example, doing bookkeeping while listening to a marketing podcast. Or scanning email while listening to a pitch from a potential new supplier. Also, working with two monitors, so that financial reports and resumes from job candidates can be reviewed at the same time. As shown below, this multitasking doesn’t save time at all, and in fact may actually hurt the business in the long run.

Multitasking in Western culture

The myth of multitasking runs deep in Western culture. It may have its roots in the Protestant work ethic. Generations were raised hearing that “idle hands make for idle minds” or similar expressions. As a result, it’s a commonly accepted notion that it’s good to do multiple tasks concurrently is a good thing. There are blog posts and Reddit threads suggesting TV shows and movies to multitask to. Also, it shows up as the Supermom trope in movies and advertising. With multitasking normalized, we just push ourselves harder to get more done.

Multitasking and entrepreneurship

Meanwhile, multitasking and entrepreneurship go together like bread and butter, or cheese and wine. Also, coffee and doughnuts. You get the idea.

Obviously, you just can’t have one without the other, right? And this makes sense because being an entrepreneur is not one role. It’s all of them, simultaneously. This is true for all sizes and stages of a small business. Because even when there is a team of staff, the entrepreneur oversees them all.

Ultimately, the business owner is responsible for the strategic direction and ultimate success of the whole company. Therefore, the ability to juggle a number of projects, ideas, and decisions is important. After all, within any given hour, an entrepreneur may have to deal with a variety of tasks across all business functions. And being able to switch between marketing, operations, sales, and human resources is a skill that benefits all business owners. However, the problem comes when we try to do more than one thing at one time.

The science of multitasking

As shown above, our society values productivity and efficiency. Obviously, these are desirable goals for an entrepreneur. After all, saving time means saving money, which can make the difference between being profitable or not. Especially for new business owners. However, science says we have it all wrong. As a neuroscientist at MIT explained it, “people can’t do multitasking very well, and if they say they can, they are deluding themselves.” Here are 3 big reasons why multitasking is not effective.

1. Brain Overload

Basically, multitasking causes brain overload. Because it takes energy to switch from one task to another. Doing that again and again over the span of a workday tires the brain in the same way that repetitive movement can cause muscle strain. Scientists call it cognitive fatigue. Daniel J. Levitin did groundbreaking research on the topic of multitasking. He explains that prolonged multitasking leads to “a depleted state in which, after making lots of insignificant decisions, we can end up making truly bad decisions about something important.”

2. Increased stress

Switching focus from one task to another causes our brain to release cortisol. This important hormone has a purpose. It’s designed to help us cope with stress. However, it’s meant for emergencies only. As in, a bear is chasing you, so here is a boost of energy to cope with it. Therefore, experiencing regular cortisol boosts is not good for the body. Humans simply were not designed for that. Over time, it has many negative effects, like insomnia, weight gain, diabetes, and high blood pressure.

3. Impaired learning

Lastly, multitasking impairs learning. Specifically, learning new information as part of a multitasking session will stunt the ability to remember it later. This is because studies show that the brain will send new data to the wrong part of the brain. Basically, if you are making dinner while also trying to learn new software, the new information will be sent to a file storage area in the brain that is harder to access later. This makes it more difficult to recall, which slows down the learning process. So when improving skills as an entrepreneur, give the material your full attention. This is an example of the myth of multitasking, because focusing on learning is more efficient for your brain to retain the new information.

Lessons for entrepreneurs

Overall, what can entrepreneurs learn from all this? First, look at how the myth of multitasking shows up in your life and business. Multitasking may be a habit so ingrained in your routine that you don’t even notice it anymore. So spend a week tracking your work activities. Be aware of the times when you are bouncing between windows and devices. Make note of when you are focused on one task. Use the results as a blueprint for how to make changes in how you work. This could be physical, like removing that extra screen from the desk. There are many ways to create more focus. And accountability is important, which is why I highly recommend Flow Club. Scheduling a block of time to work with intention and be with like-minded people is powerful. I often host sessions, so come join me in the Flow!

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Entrepreneur Do’s and Don’ts for a Home Based Business

Operations, Reflections

For many entrepreneurs, a home based business is the dream. Certainly, there are many benefits to running a business out of the same place you live. However, it can also be the source of all sorts of issues. Both professional and personal problems can easily come up without careful planning and consideration. Read these entrepreneur do’s and don’ts for a home based business to avoid hassles and make everything run smoother.

Benefits of a home based business

First of all, there are many benefits of a home based business. All these reasons fall into two categories – time, and money. And this is significant, because both time and money are valuable resources. So managing them effectively and efficiently is worthwhile. Therefore, choosing to run a business from home may be the ideal choice for many entrepreneurs.

Benefits of a home based business: Time

Benefits of a home based business: Money

Blending business with raising a family

When my business was still home-based, I had my second baby. She was born upstairs from my work space on a Sunday afternoon. The next morning, I was back at my desk. And holding my newborn while making client calls. Blending business with raising a family worked at the time. However, it was very challenging, and blurred all boundaries between work and life.

Entrepreneur Dos for a Home Based Business

1. DO check local bylaws and legislation regarding home offices

Every jurisdiction has different laws about a home based business. Be sure to follow rules about signage and parking to avoid fines and hassle from neighbours and authorities.

2. DO schedule regular working hours

First of all, this gives more structure and routine to your business day. Also, make your hours clear to customers, suppliers, and employees. Just because your office is in your home doesn’t mean you’ll be answering business emails at 11pm. Besides, that isn’t scalable. Though it may be possible when you are just starting out, and customers may be thrilled with your 24/7 responsiveness – it may be impossible to keep up in a year or two when the company is bigger.

3. DO establish expectations with family and friends

For example, just because your business is in your home doesn’t mean you are available to host a lunch or babysit a nephew at the last minute. Be sure your loved ones understand what your working hours are. And ask that they respect the importance of having dedicated blocks of time to focus on running your business.

4. DO set up a secure space for your home business

Especially if your business has any inventory or stock. Ideally, your work area can be locked and separate from the living areas of the home. Also, install an alarm system and cameras to monitor things when you are not there.

5. DO follow data protection and privacy protocols

Be sure to protect sensitive information about your business and confidential data about your customers. Cybercrime costs trillions of dollars globally, so follow tips to protect your home based business.

Entrepreneur Don’ts for a Home Based Business

1. DON'T multitask life and work

Quite simply, don’t try to multitask personal life stuff with running your home based business. This is a tough one, because it is very tempting to do when your life and your company share space. Full confession – in the early days of building my franchise system, when it was still a home based business, I did this. Alot. So I know from personal experience that blending life and business all day just results in feeling there has been no quality time for either. Besides, we now know from studies that multitasking is not effective because it drains neurological resources.

2. DON'T overlook setting up a proper business structure

Just because it’s a home based business doesn’t mean it shouldn’t be registered and official. In the UK, setting up a business is easy with 1st Formations, and the team can guide you on what is best for your situation.

3. DON'T forget about insurance

Don’t neglect to update home and business insurance policies. Insurance companies just love a loophole to get out of paying a claim. Therefore, talk to your agent about your home business set up and be sure that you are covered in case of a flood, fire, or other unfortunate event.

4. DON'T mix personal and business finances

Regardless of the business structure, all company money should flow in and out of its own bank account. Because keeping money separate makes it easier to track revenue, calculate profits, and report taxes. Specifically, this can mean doing two payments at the cash register. For example, when buying printer ink and other office needs, you also pick up art supplies for your kids. When paying, check these out separately, using your business bank card and then your personal bank card. Partly, this step saves time on bookkeeping. But also, because in case of an audit, seeing a receipt for crayons and Spiderman posted through your business bank account is going to cause a world of hassle.

5. DON'T miss out on tax benefits

There are many opportunities to reduce taxes and maximise profits with a home based business. Check with an accountant familiar with the rules in your country, state, or province. There may be all sorts of rules and allowances you can use to minimise taxable income for yourself and your business. From writing off business use of home, to gas mileage, it can all add up to more money in your pocket.

Entrepreneurship at home

As shown above, there are many entrepreneur do’s and don’ts for a home based business. Overall, entrepreneurship at home can be a challenge. Because it’s easy to mix up life and business, and have no clear structure and routine. However, for those who set up strong systems and boundaries for their home based business, they benefit from saving time and money.

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How to protect your business from employee theft

Managing Staff, Operations, Reflections

Small business owners understand the importance of using secure passwords and not opening suspicious attachments. Certainly, cyber crime is a risk, and protection measures are important. However, few entrepreneurs realize the biggest risk of theft comes from the inside – their own employees. I recently shared my own story of employee fraud. Here, read about how to protect your business from employee fraud.

Employee Theft

Did you know there is an Association of Certified Fraud Examiners? Yep, occupational theft and fraud is so common that investigating it has spawned an entire profession. According to a global study the ACFE conducted in 2022, almost 50% of employee theft comes from accounting, sales, operations, and senior management. And the numbers are staggering. It’s estimated that businesses lose 5% of revenue to fraud, which amounts to $4.7 trillion annually.

And this problem is getting worse. Due to the pressures of post-pandemic inflation, employee theft is on the rise. In the UK, employee theft is up 75%.

Types of Fraud

Fraud falls into 3 general types. There is theft, financial statement fraud, and asset misuse. Clearly, theft is the biggest source of employee fraud. Because there are many ways to steal from a company. It can be as simple as taking cash or inventory. Or it can be padding expense reports, or timesheets. Also, it could be from misrepresenting expenses, like claiming an expense for a personal purchase.

Also, asset misuse is another form of employee theft. Company cars, computer equipment, and other technology are used for personal reasons. Meanwhile, the cost of upkeep and maintenance is paid by the company.

Employee Theft Risks for Entrepreneurs

Small businesses have a higher risk of employee theft, for a few reasons. First, a small business may not have a sophisticated software system of checks and balances. Secondly, an overwhelmed entrepreneur is more likely to know and trust their staff. So tasks are delegated and not monitored as closely. Thirdly, there may not be any fraud recognition training in place, or structured systems in place. Finally, smaller teams means less supervision and cross-checking. When only one person is responsible for a task, it gives more opportunity to commit theft.

How to Protect your Business from Employee Theft

Although entrepreneurs running a small business are at greater risk for theft, there are ways to manage it. Learning how to protect your business from employee theft will save time, hassle, and money. Follow these tips to reduce the risk in your business.

1. Separate business and personal

Don’t let employees do company business in their personal space. Specifically, this means no customers using their own phone number, email address, or social media profile. Also, no storing company documents, files, or notes on their devices, Drive, or iCloud. Make sure all their work is done in company spaces you have full access to, and control over.

2. Limit Access to Information

Do front line staff need to know strategic planning and budget forecasting? Nope. So limit access to information, according to a strict need to know policy.

In addition to reducing the risk of employee theft, this also prevents management problems. For example, I know an entrepreneur who had a big morale issue when someone discovered the salary of a co-worker. All because the employee offer letter was in the company Drive.

Though it wasn’t in a place where this person would normally be – people are curious creatures. And a simple search can pull up all sorts of information buried deep in folders. So separate out documents into different Drives, and give staff access only to what they need.

3. Protect Passwords

Use secure passwords, and update regularly. Never share passwords and access points to sensitive data like bank accounts, payment processing gateways, website host, domain name registration, and utilities. Furthermore, protect them in a safe, gated place that only you have access to.

4. Have Approval Processes

Essentially, set limits for staff. Even the managers who deal with all the daily operational stuff. Set limits on spending, and have approval processes in place. Be sure there is more than one signoff required. Don’t just hand over a business credit card for them to use. Setting limits and approvals means better oversight over the small tactical decisions.

5. Set and Monitor KPIs

Consider what Key Performance Indicators are appropriate for each employee. Tie these to business objectives and strategic plans. Then, monitor these KPIs regularly, and discuss openly for a culture of transparency. Examine all the information carefully to look for patterns. Don’t take any data that is self-reporting at face value. Implement random fact checking. After all, when the team sees the boss paying attention to the numbers, it makes it more difficult for staff to commit fraud.

6. Cross Check

Clearly, the whole point of having staff is so that, as an entrepreneur, you can work on your business to grow and scale. Delegating tasks and then checking on every detail defeats the purpose. However, having team members randomly cross checking activities introduces a measure of accountability. It reduces the risk of fraud because one person can’t operate in isolation.

7. Regular Audits

Conduct regular audits of transactions which are at risk for fraud. Refunds, gift card purchases, and expenses should be monitored regularly. Watch for any changes in patterns. For example, if shipping charges jump one month but revenue hasn’t, audit the posted expenses. When staff see that financials are being reviewed and audited this closely, it reduces attempts to steal from the company.

8. Investigate

Check into every red flag, no matter how small. Though it may seem unlikely that your star employee is lying to you, it’s a mistake to not investigate. Get proof, and check the facts. Follow up every suspicion and report. It’s easy to get too trusting with long serving staff and top performers.

Protect your Business from Employee Theft

Knowing how to protect your business from employee theft is important for entrepreneurs. As shown above, there are several strategies to minimize risk. Remain sceptical, and keep a close eye on all transactions and employee activities. Don’t let personal friendships get in the way of a healthy level of mistrust. Also limit access to sensitive information. Additionally, introduce systems and processes for auditing, cross-checks, and investigations. Finally, set limits to what employees can access.

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