Category: Business

  • 7 Ways to Improve Workplace Productivity

    7 Ways to Improve Workplace Productivity

    The success of any business, large or small, depends largely on nurturing an efficient, productive workplace. While improving employee productivity should always be a priority when the ultimate goal is a sustainable and profitable business, the process is easier said than done. Below are some of the most effective methods of managing a productive, happy workplace while increasing output.

    Establish Accountability

    Productivity depends on every employee understanding that the jobs they do come with specific responsibilities, and that their actions have consequences. Employees that lack accountability are more likely to slack off, procrastinate, or blame others for their shortcomings. Establishing accountability from the beginning results in higher-quality work output and an increased focus on informed, efficient action.

    Happy Female Professional In Glasses And Suit Holding Tablet

    Avoid Excessive Micromanagement

    There is no denying that management is absolutely crucial, but too much of a good thing can have adverse effects on productivity. Excessive micromanaging creates employees that feel as if they are not trusted and that their decision-making processes are not valued. Instead of encouraging employees to put forth their best efforts, it results in an eventual dependence on micromanagement that can sink productivity levels.

    Recognize Success

    Just as employees must be held accountable for their actions, they should also be recognized for their success. Even small efforts, such as verbal recognition or occasional awards, can encourage employees and make them feel like their hard work is being rewarded. For businesses that can afford it, larger rewards, such as holiday parties, improve morale and create camaraderie in the office, all of which lead to happier, more productive employees.

    Break Out of Ruts

    While it is generally advisable to assign tasks based on an employee’s particular competencies, keep in mind that doing the same tasks repeatedly over an extended period of time can make even a skilled employee feel as if their work has become monotonous. If possible, it may be useful to expose employees to other tasks and even other departments. This renews motivation, offers new skills to learn and apply, and grants the employee a broader understanding of how the company operates.

    View From Above. Business,startup, Teamwork Concept. Startup Partners Sitting At Coworking Space Talking About Future Project, Looking Through Examples Of Work On Laptop And Digital Tablet.

    Cut Down on Meetings

    Oftentimes meetings serve as nothing more than temporary breaks from productive work. If a meeting does not have a specific purpose, an organized agenda, and a plan of action, it will probably only function to diminish productivity. Meetings can be a great way to share ideas and establish goals, but don’t let them get in the way of delivering actual results.

    Embrace Technology

    While many workplaces still see new technology as unnecessary or even distracting, the simple truth is that it can have a significant positive impact on productivity. Updated hardware, software, and machinery ensure that work can be performed in less time and with minimal error. While it may not seem like a big deal, even minor issues such as temporary connectivity problems or hardware breakdowns can quickly add up through the course of a fiscal year.

    Think Outside the Box

    Studies have revealed several productivity-boosting techniques that may seem counter-intuitive at first glance. While social media has been demonized in workplace settings, data shows that allowing occasional breaks to access such sites can boost workplace productivity by nearly 10%. Likewise, allowing employees to listen to music while working – when it doesn’t interfere with the job, of course – can also improve efficiency. Providing such perks can pay off tremendously if it means happier, more motivated employees.

    Balancing the needs of a business is never an easy job, but a focus on increased productivity can have a positive impact on nearly every other facet of the workplace. By using the techniques above, it is possible to eliminate unnecessary pitfalls and ensure that employees are personally invested in efficient, quality work output.

  • So you’ve launched your business – now what?

    So you’ve launched your business – now what?

    Good news for small business owners: according to the US Small Business Administration, nearly 80% of small businesses survive their first year.

    However, that number begins to drop as time rolls on. Only half of the small businesses pass the five-year mark, and a mere third celebrate their tenth anniversary.

    Business

    Taking steps to create a good foundation in the early days of your business is essential for a sustainable and profitable future. Here’s how.

    Keep your eyes on the numbers

    If you’re just starting out, you may be surprised by just how quickly those day-to-day expenses add up. It’s important to make sure, right from day one, that you consistently track your spending, file your receipts, and monitor your income and expenses with an easy, reliable accounting system.

    Cloud-based accounting software (like Xero or Sage) can help you know exactly where your finances stand in real-time—with secure access to accurate, up to date financial data anywhere, anytime.

    In addition to being able to collaborate more efficiently with your bookkeeper and accountant so you can get advice whenever you need it, you’ll avoid the stress and hassle come tax time—and be empowered every day to make better, smarter business decisions.

    Don’t neglect marketing

    All entrepreneurs are incredibly busy, and it can be a real challenge to find the time to promote your business. The other challenge for new businesses is money—but every small business needs to invest in marketing activities that will bring in more sales and keep the cash flow flowing.

    It’s wise to be wary of costly large-scale marketing strategies when you’re just starting out. The best use of your time in the early days is to really get to know your customers and how they tick, so you can design (or hire an expert to mastermind) highly appealing, cost-effective campaigns.

    And don’t turn a blind eye to what you’re competitors are up to. Monitor how they attract new customers and think about how you can improve on what they’re doing—or take a completely different approach to promoting your business that will help your young brand stand apart.

    Touch base with a business advisor

    Every successful entrepreneur learns from experience—not to mention failure, which can be the greatest of all teachers.

    While it’s true that “you don’t know what you don’t know”, you can shrink your learning curve by reaching out to experienced mentors for guidance.

    Consider working with a small business consultant who can provide personalized advice to help you make it through the first year—and an ongoing objective perspective on your business, industry, and market going forward.

    Final thoughts

    It’s been said many times that a business is like a baby—and it can be incredibly difficult for entrepreneurs to trust someone enough to hand over any aspect of it. Many business owners work themselves to exhaustion because they can’t let themselves take a weekend off. They neglect their most important relationships and never get to enjoy their successes because there’s always more to do.

    The most successful entrepreneurs know they can’t do it all—nor should they—and build in time for rest so they can be more productive at work. Train someone early on to run the business in your absence so you can take a rejuvenating vacation, and enjoy the freedom you likely dreamed off when you first imagined going into business for yourself.

  • Why you need recurring revenue streams – and how to start

    Why you need recurring revenue streams – and how to start

    The same advice for building a healthy investment portfolio applies to your business: diversifying will lower risk and increase growth.

    Adding a recurring revenue stream (or two, or three!) can provide a predictable, ongoing source of income which will improve the accuracy of your projections, increase profits, and provide a buffer for any unexpected sales dips.

    Business

    Here are four simple ways to start earning recurring revenue for your small business.

    Auto-renew subscriptions

    The most tried and true recurring revenue model? The subscription automatically rolls over each month unless canceled.

    Think newspapers, magazines, Netflix, and those delightful subscription boxes that arrive each month featuring food items, craft kits, cosmetics, specialty teas, books, or clothing. Some B2B examples are cloud-based accounting software, document storage, anti-virus protection, and web hosting.

    Customers depend on their evergreen subscription services because they make their lives easier or more pleasant. As long as they feel they’re getting value for their money, your customers won’t give the small monthly fee charged to their credit card a second thought.

    Tips for getting started: Research what your competitors are offering, and talk to your customers about the kinds of products and services they’d be happy to pay for on a monthly basis.

    Membership sites

    If you’re an expert in your field, a membership site can provide a lucrative opportunity to serve more clients on the web—and earn more income.

    In addition to paid, password-protected content, your membership site can offer your clients an online community portal, where they can socialize and connect with you for group mentoring outside your office hours.

    Ideal for location-independent-minded entrepreneurs, coaches, and consultants, a membership site allows the freedom to serve clients all over the world.

    Tips for getting started: If your website is built on WordPress there are a number of membership site plugins available to let you accept secure credit card payments and provide member-only access to certain content.

    Affiliate subscriptions

    Unlike set monthly subscriptions, being an affiliate may offer a less predictable income stream, but, nonetheless, an opportunity to earn some passive income.

    With the affiliate model, brand ambassadors are paid a set fee or percentage of each total sale for each successful referral. If you’ve built credibility and trust in your brand, some of your customers will likely be willing to pay for the products and services you recommend.

    How to get started: Make a list of the businesses that you regularly buy from. Check each company’s website to learn how to become an affiliate. Once you’ve signed up, you’ll be sent a unique link to share with your customers. Every time a purchase is made using the link, you’ll earn a referral fee.

    Final thoughts

    To learn more about the benefits of setting up recurring revenue streams, take a look at John Warrillow’s, The Automatic Customer: Creating A Subscription Business in Any Industry.

    In addition to increasing sales and profit margins, recurring revenue can lead to better customer retention as well as greater growth for your business.

    Now that you know a bit about recurring revenue streams, which model is right for you?

     

  • Wealth the Warren Buffett way – a short guide to value investing

    Wealth the Warren Buffett way – a short guide to value investing

    Value investing is the stock selection strategy famously used by business magnates and the third wealthiest person in the world, Warren Buffett, whose total net worth exceeds $91.5 billion.

    Developed in the 1930s by Columbia University professor and economist, Ben Graham, value investing involves screening securities to find stocks undervalued relative to peers and the market. Stocks are then assessed for their intrinsic value, determined by a fundamental metric—such as the price-earnings ratio—and purchased only if the stock price is less than its intrinsic value.

    Business Owner

    With value investing, dividends, cash flow, and earnings growth matter more than market factors on the stock’s price. The idea is that the market will eventually correct—and when that happens, the undervalued stock will rise in price and the investor will make money.

    Buffett’s investments have consistently outperformed the market, decade after decade, which is why he’s become known as the “godfather” of value investing.

    Warren Buffett’s story

    In the early 1950s Buffett enjoyed success following Ben Graham’s investing guidelines but began to assess potential stocks differently than his mentor. While Graham kept his focus on the bottom line numbers—the balance sheet and income statement—Buffett looked at a company’s corporate leadership and overall potential to generate earnings long term.

    In 1962 Buffett bought Berkshire Hathaway, a failing textile company whose shares were valued at $7.50 each. He phased out its textile manufacturing division and transformed the business into a holding company for investments. By choosing to invest in a number of assets that proved lucrative in insurance, oil, and the media, Buffett was able to build Berkshire Hathaway into the incredibly profitable company it is today.

    Value investing tips

    These tips from a Business Insiders article on Warren Buffett’s winning investment strategies can help you become a more successful investor.

    Re-think your diversification strategy

    Buffett recommends selecting stocks carefully, with an eye on the long-term future, maintaining focus on individual investments rather than hedging bets with a varied portfolio designed to minimize volatility.

    Follow the 99-1 rule

    Buffett warns investors not to sell as soon as it appears that a stocks’ value is declining—like the 99% do, overreacting as they take in just 1% of the daily financial news.

    Play the long game

    Buffett’s approach to investing requires patience and commitment. He advises investors to select stocks with potential and hang onto them for decades. Investors who constantly buy and sell may lose out on higher returns—and end up paying more trading commissions and taxes.

    Get started with a formula for value investing
    For more detailed information on value investing strategies—including guidelines for how to choose undervalued securities with excellent profitability potential—check out this article on Investopedia.

    You might also be interested in taking a look at The Essays of Warren Buffett: Letters to Corporate America—a collection of letters Warren Buffett wrote to Berkshire Hathaway shareholders—or Ben Graham’s classic book on value investing, The Intelligent Investor.

  • Finding money within your business

    Finding money within your business

    Most small businesses experience cash flow problems from time to time and urgently need working capital. Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension. The money you need might already be there—locked up in inventory, assets or your debtors’ book.

    Finding Money Within bisiness

    You can often free up funds from within your business by re-examining your business systems, and these funds might in themselves be sufficient for your immediate needs.

     

    Good management

    Even if the funds you free up from within your business are not sufficient, there is another payoff: the effort you make in searching for them helps to ensure that you are running your business in an efficient manner.

    To free up funds from within your business, look closely at:

    • assets
    • customers
    • suppliers

    Assets

    Your assets include debtors, stock, pre-paid expenses, vehicles, plant and equipment, fittings and property. Each of these is a possible source of funds.

    Debtors

    Are you letting some customers have the free use of your money for months? This is a common occurrence in small businesses where the owner(s) are so busy getting the business off the ground, products out the door, or services completed, that they don’t pay enough attention to basic business procedures. Many customers will take advantage of this ‘free money’. But your business is not to serve as a free bank.

    Here’s how you fix the problem:

    • Get invoices out promptly. Whatever else you do, become efficient at getting invoices out early. This is your future cash flow—the lifeblood of your business! You want to receive it as soon as possible. Start this new system NOW. Depending on your business, you can often cut out statements simply by printing at the bottom of the invoice: ‘Please pay on this invoice as no statement will be sent.’
    • Send the invoice with the goods or immediately the service is completed. Date the invoice from no later than the day it is sent rather than following the standard ‘last day of the month’ date for invoices. The earlier the invoice date, the better your chances of getting paid earlier.
    • Change the terms for some of your customers, or for new customers. For example, can you reduce ask for immediate settlement or set reduced payment terms such as 7 days or 14 days from the date of invoice?
    • Follow up promptly when invoices aren’t paid by the due date. This is critical. Be polite but firm. If you haven’t the time to do this yourself, then appoint someone to do it for you.

    Monitor your debtor collection days and set an improvement target each quarter. For example, can you find out the benchmark standard for your industry? IF the average in your industry is 30 days, but you are taking an average of 45 days to collect outstanding debts, then there’s clearly room for improvement. If your customers or clients have been taking advantage of you because of your previous laxity in invoicing, then you may need to re-educate them. Do this politely so you don’t offend customers:

    “Have you received our invoice, Peter? I’m just checking that you’re happy with the goods/services we provided? “We’ve got a new invoicing system going here because we’ve been a bit lax in the past. My accountant has set some tough goals for me to meet in reducing our average debt collection cycle, so if you could settle that invoice promptly I’d be most obliged.”

    Consider factoring. This simply means selling your outstanding invoices to a finance company. So instead of having to wait 30 days or more until an invoice is paid, you receive most of your money upfront from the finance company that then, in turn, collects the money from your customer. The finance company will of course charge you a commission for this service. Be aware, though, that there are pros and cons to factoring. For example, check that the finance company will not antagonize your customers with a heavy-handed approach. Talk to them first about their collection methods.

    Consider offering a discount for prompt payment. If you’re going to pay a fee for factoring, why not try offering a discount to your customers instead? Discounts are not a good option for low-margin businesses but can be an option for high-margin operations. You have to work out whether the use of money gained earlier is worth the discount you’re offering. NEVER give the discount if the person has missed the due date for the discount offer. (Yes, some will try this on.)

    Inventory

    Do you have excessive capital tied up in stock? This can occur in two ways:

    • carrying high levels of items that you could obtain from suppliers at short notice
    • having too many slow-moving items (and too few fast-moving items).

    A quick sale?

    Review regularly your stock levels, your stock turnover rates, and your purchasing policies. Can you free up money by reducing stock? What about moving out of the slower-moving lines or having a quick sale of dust-collecting stock? It might pay you to reduce some items quite heavily to get some money in quickly.

    Can you approach suppliers to take back any excessive stock you may have ordered? They might help you out of a temporary tight corner as a goodwill gesture if you explain you have a temporary cash-flow crisis, but that you do wish to build a long-term relationship with them.

    If you need additional funds to purchase more stock, make sure that you’re replacing the slow-moving stock with faster-selling lines.

    Pre-paid expenses

    This is another area you could look at. These pre-paid expenses often relate to services. For example, you might pay your insurance bill for the year all in one hit, but you could arrange to pay small monthly amounts. There might be an additional cost for doing this, but you must weigh the extra cost against the advantages of 12 small payments which your cash flow can comfortably handle versus one large annual payment. Try a similar approach with your accountant. Instead of facing a substantial bill once a year, ask if you can pay a set amount monthly.

    Assets

    Assets can drain significant amounts of cash out of a business. Do you really put all your assets to full use? You might be able to:

    • Sell off little-used assets and hire suitable replacements when you require them.
    • Lease or rent assets and equipment that depreciates rapidly such as computers and or vehicles

    Customers

    Don’t forget your customers can be a source of business funds. Apart from debt collection improvements already discussed, try these tactics:

    Here’s a ‘thinking outside the square’ tactic. Ask some of your credit customers (start with the ones you know best) if they would be willing to use their bank credit cards for purchases from you, instead of using the account facility they have with you. For example, if they purchase say $2,500 worth of goods or services from you, they would pay for this by means of a business credit card. They still get 30 to 55 days credit before having to pay the credit card company, but you get your cash as soon as you sent in the voucher to the bank. You have to pay the (around) 5% commission, but otherwise, it’s almost as good as a cash transaction.

    If you’re starting a new business, consider establishing it on a cash-only basis to keep the funds inside your business rather than locked up in Accounts Receivable.

    Ask for progress payments

    If you supply goods over a period of time, or if you’re a service business, ask if you can invoice for progress payments. This is quite a common method of ensuring you get some cash flow during a project instead of waiting until the end of a project or delivery period to invoice—and then still waiting at least another 30 days for payment.

    There’s another benefit here too. If the customer turns out to be dodgy, you’ll discover this quite early on instead of at the end and you can cut your losses before they mount up and perhaps drag your business down. This tactic is therefore very suitable for tradespeople subcontracting to a developer.

    Suppliers

    Finally, consider your suppliers as a possible source of funds. Ask for extended payment terms to give you the opportunity to sell the goods first before you have to pay. If the supplier won’t budge, try this tactic: split the order in two and offer to pay normal credit terms (30 days) on the one half of the order and 90 days on the other half. Your suppliers will be more likely to agree to this kind of arrangement if you’ve paid them promptly in the past. After all, they have a vested interest in helping you succeed.

    • Quantity breaks – incentivize customers to order more through quantity discounts.
    • Re-order levels – Set up minimum stock levels to avoid stock outages on important lines.
    • Default reorder quantity – Setup re-order quantities so the most economic order quantity is placed.
    • Receive Stock – Receive items into stock so you can sell them before receiving the final bill

    Take advantage of discounts

    Pay accounts that give discounts on time. This is an easy one. If any suppliers offer a discount for early payment, then take it (and there is no harm in asking for a discount).

    These are just suggestions and may not be suitable for your business. Feel free to contact us about ways to find money in your business.

  • Encouraging word of mouth

    Encouraging word of mouth

    If you have any doubt that word of mouth referrals are important, consider these recent stats:

    So how can you encourage positive word of mouth for your small business?

    Try these three strategies.

    Offer exceptional customer service—every time

    There’s no way around it: positive word of mouth has to be earned.

    Unfortunately, it is exceedingly difficult to prevent negative word of mouth. People are much more likely to share a bad experience than praise a business. (Research shows that 95% of consumers will pass on a negative run-in with a company and more than half will spread the word to at least five other people).

    Encouraging

    The best way to earn positive referrals is to make your customers feel special each and every time they come in contact with you and your brand.

    Here are a few simple ways to win over your customers:

    • Be friendly and approachable in person and online
    • Get to know your customers personally
    • Ensure customers are greeted promptly and don’t wait long to complete a transaction
    • Express gratitude for ongoing business
    • Offer perks for loyalty
    • Pay attention to the details
    • Be honest, always
    • If something goes amiss, take immediate steps to resolve the problem to the customer’s satisfaction.

    Invite—and reward—referrals

    You can increase the odds that customers will spread the good word about your business with an incentive—such as a freebie or discount on their next purchase for completing a review on your website, Yelp, or Angie’s List.

    Try an app like Wufoo to set up a simple referral form right on your website. Make it easy to pass on your e-newsletter to more potential customers with a web-based referral system that automates the process.

    Don’t miss an opportunity

    Remember to ask the folks who praise your products and customer service that you’d love a testimonial for your website, or a shout-out on social media.

    On that note, it’s essential to keep track of what people are saying about your brand online—whether the talk is positive or negative. Be sure to take a moment to thank your fans for their kind words. As an added bonus, replying to positive business reviews can help give them a bump in search results.

    Be sure to respond appropriately to negative reviews, too. Consider a bad review an opportunity to make things right. It’s much better to know what people are saying and respond than allow a problem to fester.

    Check out this article for useful tips on the right way to respond to positive and negative reviews.

    Final thoughts

    As you make efforts to increase word of mouth for your business, remember this: it’s the element of surprise that really gets people talking about a company. Think about how you can do more than meet your customers’ expectations, but dramatically exceed them. They’ll not only tell their friends about you—they’ll keep coming back for more.

  • Growing your business without borrowing

    Growing your business without borrowing

    Taking out a business loan may be your first plan of action for financing business growth. But there are excellent reasons to consider other options for finding capital to expand your business.

    For one, it can be very difficult for a small business to secure financing, especially in the early days. You’ll need to prove to a lender that you aren’t a high risk, with financial documentation that shows your company has been profitable for a few years.

    Business Finance And Loans

    When you take out a loan you’ll need to consistently make payments toward the principal, interest, or both, depending on your agreement. If for some reason you can’t make your payments, the problem can snowball from losing the assets you pledged as collateral to more devastating losses, including bankruptcy.

    Consider these four ways to finance growth without approaching a lender for money.

    Ask for pre-payment

    This option is as simple as asking your customers to pay you in advance of receiving your products or services. Explain that you are changing your payment policies and your new terms are that you receive payment on the first of the month, at the beginning of a project—whatever works for you. As the owner of your business, you get to decide when and how much you need to be paid in order to deliver your products and services.

    On a related note, you might consider using a subscription model for a new income stream. Some possible subscription-based services with a recurring pre-paid fee are:

    • a password-protected website offering valuable info and community for your customers
    • a monthly service membership website (i.e. beauty, dry cleaning, home maintenance)
    • box kits for DIY enthusiasts (i.e. cooking, crafting, and other hobbyists)

    Try Crowdfunding

    Crowdfunding campaigns connect individuals with a community of willing donors via a platform such as Kickstarter, Fundable, or Indiegogo in exchange for some reward.

    In addition to providing an inexpensive source of financing, crowdfunding allows entrepreneurs to gain market validation for a new idea before overinvesting—and provides an opportunity to market to potential new customers. You’ll be able to start selling before your new product or service is ready so you can continue to avoid the small business debt trap.

    Form an alliance
    Partnering with other businesses is mutually beneficial: each company can increase its sales by introducing each other’s products and services to its own customers at no added cost. You can potentially attract brand new customers, too, by increasing your range of offerings by way of your alliance.

    Likewise, a marketing alliance is a simple strategy where two companies agree to spread the word about each other’s products and services with their customers. Each partner would earn royalties on sales to the other partner’s customers, bringing in easy growth revenue without any additional marketing or advertising costs.

    Final thoughts

    As you move forward with your next phase of business growth—no matter how you fund it—be sure to touch base with a business advisor. Seeking the guidance of experienced business experts who can help you update your business plans, and choose the best strategies to cut costs, increase profits, and achieve your short and long-term goals, will lead to greater success.

  • From Apple to Avon: six inspiring marketing successes

    From Apple to Avon: six inspiring marketing successes

    From Mac computers to make-up, here are six examples of super-strong brands that cornered their markets using different marketing strategies.

    If you look at their histories and analyze the pivotal moments, you’ll find parallels and pick up tips on how your company can follow in their footsteps and stand on the shoulders of giants.

    Businesspeople Meeting Plan Analysis Graph Company Finance Strat

    Apple’s call to arms

    Anyone who remembers Apple’s computers from the 1980s knows its brand loyalty wasn’t always product-led. Many of its computers, including the famous Macintosh, proved too expensive, too limited, or too ahead of their time to find traction (anyone remembers the Apple Newton PDA? Didn’t think so).

    What sustained the brand through the ‘80s, as Microsoft grew to dominate Silicon Valley, was its success in building on its underdog status and turning its philosophy into a cause – and its 1984 Super Bowl TV ad was its watershed moment. Directed by filmmaker Ridley Scott, the ad took its cue from George Orwell’s novel 1984 to make Apple’s proposition significantly more emotive than its competitors’ – as if those buying a Macintosh computer were making a stand against conformity.

    Advertising Age later named it the the1980s Commercial of the Decade, while in 2007 it was named the Best Super Bowl Spot in the history of the event.

    Lesson:

    You don’t have to be the biggest to be the best. Consumers love innovators and underdogs, and if you can frame your offering into a struggle to be recognized, then you can appeal to people’s hearts as well as their heads.

    VW confronts its demons

    In the 1950s, VW was seen by most Americans as a European oddity with links to Nazi-era Germany. In other words, it had the kind of baggage that just can’t be stowed away in the trunk. However, Doyle Dane Bernbach’s Think Small ad campaign changed all that by turning one of the VW Beetle’s biggest perceived failings – its diminutive size compared to American cars – into an asset, and a social statement that would grow throughout the next decade.

    Before America knew it, the “people’s car” commissioned by Adolf Hitler in 1933 was the ride of choice for the flower power generation of the ‘60s. That’s quite a trick–- no wonder Think Small is ranked as AdAge’s top ad campaign of the 20th Century.

    Lesson:

    Don’t ignore criticisms or misconceptions about your product. Challenge them, face them head-on and turn them on their head. Why concede and start making products like everyone else, when all you’ll do is lose your point of difference?

    IKEA – Swedish for fun

    When IKEA founder Ingvar Kamprad first struck the idea of building flat-pack furniture that could be delivered cheaply to the masses because it cost less to transport and store, he scarcely could’ve imagined 50-odd years later his company would be opening 20 new stores a year and have a catalog more widely read than the Bible.

    But IKEA’s almost slavish following from the middle classes isn’t just about product and logistics. In fact, IKEA’s growth and success as a truly global brand without borders rest quite significantly on the experience – one Kamprad first started honing back in 1965 when he opened his flagship store in Stockholm.

    Anyone who’s visited an IKEA store would recognize it – its vast size, the showroom circuit which slows down foot traffic, the storeroom and check-out area that’s more like an airport terminal than a till, not to mention the restaurant seating 350.

    Kamprad reinvented the shop as a theme park, and today the IKEA faithful return to their local stores for the “experience” of buying and the lifestyle it offers, as much as for what they buy. IKEA’s strong product range and support via its iconic catalog (which gets randomly mailed out to more than 100 million households each year and is said to gobble up 70% of IKEA’s marketing budget) help keep the concept fresh, but much of the heavy brand lifting is done by its PR department.

    Not one store launch goes by without a competition rewarding the first at the door, generating masses of free publicity as cameras follow the lines camped outside, while others vie for the chance to be an IKEA Ambassador for Kul. What is Kul? It’s Swedish for fun.

    Lesson:

    Providing entertainment and an “experience” beyond shopping is added value consumers can find priceless. Instead of selling a product or a service, market a lifestyle or an experience.

    Marketing Advertising Commercial Strategy Concept

    Ford takes Detroit digital

    Until recently, The Ford Motor Co. was known primarily for two things – Henry Ford’s automated production line and its complete disdain for marketing. If there was ever a company besotted by the power of the car salesman, it was Ford, a brand that struggled with its image in its home market for decades. In fact, up until the global credit crunch hammered home the need for a rethink, Ford’s US car division’s brand slogans used to change every 18 months to two years. No wonder US sales dropped – Americans no longer knew what Ford stood for.

    However, if there’s one company that really stood up and took notice of the recent need for change, it is Ford. And nothing epitomizes its efforts more than its Fiesta Movement strategy, which was hailed on its completion in 2010 as a textbook use of the medium that has changed how Detroit looks at social media.

    The strategy simply saw Ford selecting 100 social media users to live with its Fiesta super-mini for six months in the run-up to the car’s US release. Ford gave them missions to carry out with their Fiestas every month – such as delivering meals on wheels – while these social media brand ambassadors blogged about the experience, posted videos on YouTube, and generated comment streams on Facebook, Twitter, and Flickr.

    So far, so what – but what really made the strategy shine was its execution. Few brands, large or small, really get that using social media requires subtlety, but with Fiesta Movement Ford really stood back and let other people talk about their product to not only generate brand awareness but brand credibility. Ford created a website for all the crowd-sourced content being generated, but crucially, they didn’t edit it.

    In 2010, consumer protection trackers ALG had Ford leading all other car and truck brands in gains of perceived quality, while Ford car sales in the US had a growth rate double that of the industry average.

    Lesson:

    Businesses looking to grow their brands via social media often think it’s all about creating your own content. It’s actually about kick-starting content from others who can add credibility to your brand with their independent voices.

    Guinness settles a few arguments

    For a beverage company making a product that, shall we say, isn’t everyone’s cup of tea, it takes real creativity and lateral thinking to generate near-universal positive association for the brand.

    But that’s exactly what Irish stout brewery Guinness did in 1955 with the Guinness Book of Records. It was four years earlier that Guinness Brewery’s then Managing Director, Sir Hugh Beaver, famously came onto the idea of distributing a free publication of record facts to pubs as a marketing exercise. It came to him during a shooting party in County Wexford when he was arguing about which game bird was Europe’s fastest and realized he was having the kind of argument many of his customers have while supping a pint of Guinness in a pub.

    After a positive reception with drinkers, Guinness released its first retail edition for Christmas 1955. It became an immediate bestseller and a new edition was soon being printed every year.

    Today it is known as the Guinness World Records and isn’t even owned by the brewery anymore. However, the publication has become the world’s best-selling copyrighted book, and the Guinness brand is one of the best known in the world (enjoying an almost unprecedented 98% prompted recall rate among tested consumers in the English-speaking world).

    Perhaps the biggest irony, though, has been the services Guinness has carried out for marketing along the way. After all, few brands can claim to have created an entirely new category of PR which, on average, can generate £250,000 of media coverage for companies involved in record-breaking attempts.

    Lesson:

    When it comes to promotional material, think outside the box because a promo item doesn’t have to be directly related to your product or service to be relevant. In fact, a niche product brand can greatly benefit from being associated with a promotional item popular with a wider audience.

    Ding-dong, Avon calling!

    In the late 19th Century, when societal pressures confined many women to the role of house-bound housewives, door-to-door salesman David H. McConnell stopped selling books and started selling perfume instead – in essence bringing the department store to their door.

    However, the real stroke of genius came in 1886, when his business, the California Perfume Company, hired Mrs. P.F.E. Albee as its first female rep. Shunning the traditional male door-to-door salesman, who’d often talk down to the customer, in favor of empowering other women in the role so they could be relatable for their customers was a brave move, but it soon paid off.

    By 1920, McConnell’s company – now known as Avon – was selling $1 million of cosmetics every year, dwarfing the annual sales of many department stores of the period.

    Lesson:

    Distribution choice is just as important  part of marketing as advertising and R&D, and if you can find a profound and effective way to reach your customer, you can use that choice as a point of difference to build a strong, unique brand. Reach out to us to learn more.

  • Lean canvas – a new way to do business planning

    Lean canvas – a new way to do business planning

    Few business owners have extra time to devote to a lengthy business planning process. But every entrepreneur needs a solid blueprint to get their business successfully up and running. The Lean Canvas—designed by Sparks59 CEO and Running Lean author, Ash Maurya—is a simple, effective planning tool that helps entrepreneurs assess and test their ideas before investing too deeply in building a product.

    For the small business owner, the Lean Canvas is an ideal “bare-bones” business plan template—a one-pager that can easily be updated and meaningful action taken for greater success.

    How to use a Lean Canvas

    An adaptation of Alexander Osterwalder’s Business Model Canvas, the Lean Canvas provides entrepreneurs with a quick visual sketch of their ideas via a simple nine-block matrix. What makes this online planning tool so useful is it gets entrepreneurs thinking, upfront, about one of the biggest obstacles facing every start-up: risk.

    Maurya’s goal was to build a planning tool that was “as actionable as possible while staying entrepreneur-focused.” Many business owners love using the Lean Canvas because it can be adapted for a number of purposes—for drafting a basic business plan, evaluating business models, or even identifying new revenue streams.

    What’s unique about Lean Canvas

    The main idea behind the Lean Canvas was to craft a tool that could actually increase an entrepreneur’s chances for success, by deeply considering its purpose: the actual problem it will solve.

    Unfortunately, the reason many start-ups fail is that they are focused on a big idea: the solution. The product is built before its market viability is adequately researched and tested.

    With a Lean Canvas, you’ll focus first and foremost on the problem, then list your customer segments, unique value proposition, revenue streams, and key metrics. Finally, you’ll define your “unfair advantage”.

    Although recognizing any advantage can be tough for new business owners, understanding how your company stands out is key to your long-term success. An unfair advantage can be many things—for instance, it might be your loyal customer base or an enviable talent pool.

    As you complete your Lean Canvas—whether you’re drafting a business plan or using it as a “testing lab” for your latest start-up—think about how you can nurture and protect your unique advantage, so you always have an edge on your competitors.

    Final thoughts

    Although a Lean Canvas isn’t a substitute or shortcut for the kind of detailed business plan a lender will want to see before approving a business loan, it can serve your business well as a starting point.

    Some business owners begin with a Lean Canvas just to record their ideas, then expand them into a longer plan. Others use the Lean Canvas as a quarterly planning tool, or to communicate their updated mid-year outlook.

    The beauty of the Lean Canvas is it’s free to sign up—and how you use it to serve your small business is entirely up to you.

     

     

     

     

     

     

  • Is a business mentor worthwhile?

    Is a business mentor worthwhile?

    “Mentoring is a brain to pick, an ear to listen, and a push in the right direction.” — John Crosby

    The opportunity to learn from a mentor can do more for a small business owner than any course, educational program, or degree. Being a mentee means you get the benefit of first-hand experience, without having to make all the mistakes yourself.

    Business

    There are, in fact, a host of reasons why a well-matched mentor is an invaluable asset for an entrepreneur. You’ll have someone you can trust and confide in, lean on for advice, bounce new ideas off of, and get help refining your business plans.

    Read on to learn how to connect with a mentor and get the most out of a mentor-mentee relationship.

    Finding the right fit

    The first step to seeking out a mentor is to know the kind of guidance you and your business would most benefit from, right now.

    For business owners in the early start-up stage, someone who can provide advice for surviving the first few lean years—and someone you can touch base with more often—may be the perfect fit.

    In this scenario finding a mentor with experience in your industry is a plus, but not absolutely necessary (which can make your search for a mentor a bit easier).

    If you’re in a highly specialized field (like IT), if you’re running a business in a niche market, or if you’re at the point where you’re ready to scale, you’ll likely want to narrow your search to a more selective pool of mentors with pertinent experience.

    Where to look for a mentor

    Start your search for a mentor in your current network. Think about who you know through your previous jobs, educational history, professional associations, and the local business community.

    Your social media networks can be a great place to find a mentor, too. Be sure to get the word out via your LinkedIn groups, Twitterverse, and Facebook. You never know who might be out there, just on the periphery of your social network, by one or two degrees of separation.

    Another option is to search for organizations in your area—like Australia’s International Business Mentors—that help match up to business owners with trained mentors.

    Alternatives mentoring opportunities

    Let’s face it: all business owners are busy people. And although it’s most beneficial to meet with a mentor consistently, doing so in person on a regular basis can be a challenge for both parties.

    For some mentors and mentees what works best are facetime chats. Other options to consider are “flash mentoring” via quick lunch-hour sessions, or connecting with a mentoring group that meets online. If you’re willing to pay to work with a mentor, a group scenario can also help reduce costs. 

    Final thoughts
    To get the most out of mentoring—and to demonstrate how valuable your mentor’s help has been—be sure to follow up on your progress. A mentor will appreciate hearing how you’ve put their advice to work, your milestones and successes, and the goals you’d like to work on in the future. Acknowledging your progress will help you stay motivated, too, by seeing how far you’ve come.

  • How to license your business ideas

    How to license your business ideas

    Looking for a cost-effective means to create another income stream? Consider this: ambitious companies are always on the lookout for the next lucrative business idea.

     Business Ideas

    Licensing your intellectual property to another company can be a win-win when both parties see eye to see, and result in a worthwhile payout for all concerned.

    Wondering how to get started licensing your bright business ideas? Read on.

    Intellectual property 101

    If you’re running a successful small business, you already own valuable intellectual property (IP)—some of which could be licensed to another party for a profit (e.g. your logo, brand, trade secrets, or unique business processes).

    Each of these “intangibles” is a valid financial asset that can be legally protected or licensed to another party.

    In fact, any creative work—ideas, designs, and products—that have value for a business are IP. A licensing agreement ensures your intellectual property is recognized and you are fairly compensated for their use.

    Generating million dollar ideas

    Now that you understand how licensing works, you can begin to brainstorm some original, unpatented money-making ideas.

    A good place to start is with a review of your industry and market. Take note of any gaps that could be filled, and problems you’d like to see solved. A great advantage of looking within your own industry is you might already know an interested licensee within your existing network—or just a quick phone call away.

    Come up with an extensive list and then research your top ten promising ideas. Before you get too far (and to avoid disappointment) make sure someone else hasn’t already registered your ideas with a patent office via Google’s patent search.

    The business of licensing

    To learn more about licensing agreements, it’s best to get in touch with your government’s intellectual property (IP) office. Rules can vary in different jurisdictions so seek advice from an officer who can best advise on next steps to apply for a patent, file a trademark application, or draft a legally binding licensing agreement—as well as any costs for doing so.

    Be sure to visit the World Intellectual Property Organization website, too, for a wealth of information on how to license intellectual property internationally.

    Building credibility with potential licensees

    Stephen Key, entrepreneur, and IP strategist, calls success with licensing a “numbers game”—contact a long enough list of prospective licensees with enough good ideas and eventually, you’ll hit pay dirt.

    However, you’ll make a better first impression—and protect your valuable IP in the process—by demonstrating you are already running a successful, legitimate business in your own right.

    If you haven’t yet, register:

    • your company name
    • a unique URL for your company website and
    • your intellectual assets

    By demonstrating you are credible and IP savvy, you’ll put yourself in the best possible light—someone an interested licensee could easily picture themselves doing business with.

    Registering your business, domain name, and intellectual assets will also put your business in a much better financial position if you ever decide to sell.

    Final thoughts

    If you hate cold calling, get discouraged easily, and can’t stand rejection, promoting your business ideas to potential licensees may not be the right fit for you. The good news is, there are a host of other ways to generate more income for your small business—and there’s nothing wrong with keeping your best ideas for yourself.

  • Choosing your business name

    Choosing your business name

    One of the most important decisions you’ll ever make in business is your choice of business name. A good name can create the perception of integrity, professionalism, or value-for-money. It could be your business’s biggest asset. A poorly chosen name can discourage potential customers by making your business appear farcical, or even offensive.

    Business

    What’s in a name

    If you haven’t thought of any names yet or the names you’ve come up with aren’t suitable, the first step is to relax – hardly anyone comes up with the perfect name straight away.

    Take some time to play with concepts, ideas and words to find a name that fits your business and its intended market. Running ahead with a name that isn’t really appropriate will result in additional costs further down the track.

    There are some handy tools to get you started:

    • A basic thesaurus or dictionary – This will give you endless options and allow you to gather words together to create potential names.
    • Free or low-cost naming programsThere are a number of computer programs that will calculate names for you on the basis of keywords you enter from a database of common words and phrases.

    Draw up a list of words and names that appeal to you, as well as a list of words applicable to your business. Try different words and combinations, then create a shortlist of potential names for your business.

    Make it memorable

    Being creative can help your business stand out, but its name also needs to be easy to spell and remember. If a potential customer types in your web address, it only takes one misspelled letter for a browser to declare they can’t find the server – or worse, take them to the site of another business.

    Think about how your name sounds when spoken and whether it’s easy to spell when searching for you online. Short, simple names are easier to remember for word-of-mouth referrals. Avoid SMS-style abbreviations or slang unless you’re sure this will suit your target market and won’t discourage customers.

    Using humor

    You might be tempted to play on words or incorporate humor in your business name. For example, a hair salon owner might have their heart set on the name Curl Up and Dye. Whether this works or not will depend on the nature and size of the business, whether you need to portray a professional image, and what appeals to your target market.

    If you’re at all uncertain about the name:

    • Canvass the opinion of close friends
    • Run a poll by possible customers
    • Get some professional advice from a marketing expert.

    Invoke an image or positive connotation

    This can be tricky but try to think of a name that invokes an image or a feeling, preferably related to what your business offers. These names are both easier to recall and link a positive feeling with your product. If you sell skis and snowboards, a name such as Adventure Ski and Snowboard would be more effective than Dave’s Ski and Snowboard Store.

    Reference what you offer

    For a business on a budget, having a name that tells potential clients what you offer is a good way to minimise money spent on marketing. For example, if you named your mobile coffee business Express Coffee, it’s easier to market than if you called it Red Yak.

    Names that reference what you offer are also better for Search Engine Optimisation (SEO) and Internet advertising. If someone’s searching for a product or service you provide and it’s part of your business name, your results will be more prominent in search engine results. You’ll have a competitive advantage over businesses with more abstract names.

    Testing the market

    Testing the market is a good way to gauge responses before taking the plunge.

    • Ask family and friends to comment on the name – they might point out some issues.
    • Ask existing customers or a sample segment of your target market for feedback.
    • Ask a marketing professional for advice before you make a final decision.

    This is also a valuable way of generating a profile for your business that could result in future sales –once, of course, you decide upon your business name.

  • 5 Cheaper Ways to Advertise Your Business

    5 Cheaper Ways to Advertise Your Business

    Advertising is an essential component of success for any business. Proper advertising ensures more sales, but if you choose the wrong options, it can be a very expensive proposition.

    Advertise

    Let’s look at five ways you can reduce your business’s advertising expenditure without affecting your results.

    Referrals

    A referral program encourages your current customers to send their friends to your site, and to earn rewards for their efforts. It’s a great way to generate low-cost advertising: your customers send visitors and earn a small percentage of every sale (or another reward), then those new customers refer their friends, who refer their friends, and so on!

    Before long, you can have an army of loyal customers actively promoting your business – with every new referral, you exponentially increase the chance of getting more customers. And all for the price of a small commission on each sale or some other loyalty reward.

    Joint advertising

    A joint advertising campaign works like any joint venture: you find a related business and you share the cost of the project. At the same time, you share target audiences, increasing the number of interested people who see your mutual ad campaign.

    Good examples of this kind of advertising build on complementary industries. For instance, if you run a home aquarium cleaning service, you could work with a local pet shop. Together, you could offer a discount on your cleaning services, provided the customer buys their equipment (and fish) from the associated pet shop. Both businesses benefit: you get access to the pet shop’s clientele, and they get a chance at more sales to people who would love an aquarium but don’t like the idea of doing their own maintenance.

    Note that joint advertising is rarely an equal proposition: one party almost always pays more than the other, as they stand to gain more from the advertising or bring less to the combined project. Be flexible and ready to compromise.

    Most relevant advertising medium

    Choosing the most relevant advertising channel is absolutely critical in decreasing your advertising costs. You’ll have to do thorough demographical research or invest a little money in trial-and-error learning to figure out the best medium for your business.

    For example, television and radio offer a massive return on investment for some companies, but if your business targets young adults who spend the majority of their time online, they may be a bad choice. You would almost certainly be better off investing in online advertising, or a social media marketing campaign.

    Create loyalty

    It is often said that it is more expensive to get a new customer than to keep an existing one. For this reason, it is important that you strive to build a relationship with your customers. Answer queries quickly, make sure complaints are dealt with swiftly, and always try to exceed their expectations. This will ensure that you build a positive, rewarding relationship with your clients, and allow you to decrease your advertising costs in the long run.

    Don’t forget the real world

    Depending on your target market, “real world” advertising – as opposed to online, virtual adverts – can still be the best choice. For example, flyers and leaflets can be a very successful, yet inexpensive, form of advertising. The important thing is to ensure that your ads reach the right audience.

    For example, if your target market is women, you should distribute your flyers or leaflets in areas frequented predominantly by them. Ideal areas are near beauty stores, clothes shops, hairdressers, and gymnasiums. This will help ensure that your flyers are reaching the right audience, and are therefore more effective.

    Most successful businesses spend a large chunk of their money on advertising, so it is critical that you get the best possible returns. Don’t just assume that throwing money at an ad campaign will make it work better: research the best medium, consider all the options, then run tests to figure out where and how to invest most effectively.

  • Planning the year ahead

    Planning the year ahead

    The turn of the year usually prompts most people to think about some business planning for the year ahead. Here are some tips to make the planning more productive.

    Get your team involved

    Business planning works best when it’s a team effort. Involve your key staff and your advisors, such as your accountant, your mentor (if you have one), and others who can contribute meaningfully to the planning, such as an IT expert if you envisage a major website overhaul.

    Asian Business Women Feeling Happy Arms Raised Celebrating 7861 1254

    Ask people to bring their ideas to the planning meeting and try to hold the meeting away from the business to avoid getting caught up in daily activities.

    Review your business

    Start with a review of your business as it currently stands, focusing on three key questions:

    What’s working well for us at the moment that we should continue doing?

    What’s not − what should we drop or do less of?

    What has the most business potential for the future?

    Decide on changes

    Your combined thinking may produce some required changes. For example, you may need to adapt your existing products and services, seek new markets or distribution channels, or change your business model entirely.

    These changes are more likely to occur if there is consensus. Bear in mind that resistance often comes when people feel their comfort zones or their jobs are threatened. Address these issues right at the start.

    Figure out capacity

    Any changes will likely require some investment in new skills, new products or services, or other changes incapacity.

    Get help from your accountant to complete a return on investment (ROI) analysis if you need new equipment or even new staff. You need to know how much extra business needs to be generated for a reasonable payback and also how the business can access the funds for growth. For example, will you need a larger credit line or new capital?

    Get everyone on board

    Once you’ve established where you want to take the business, concentrate on the next 12 months. Set some end-of-year goals, and then work backward to create the stepping stones that will take you there. Your role now is to get everyone on board by clearly communicating the plan to them.

    Consensual goals are more motivating than imposed goals, so get at least your key staff involved in the goal setting. Immediate goals are easier to focus on than longer-term goals so make sure each person understands what is required from them this week, this month, and this quarter.

    Follow up

    A major challenge with all business planning is that it is often done at the beginning of the year when optimism and motivation are high. However, these emotions can quickly fade as people get caught up in their daily activities and new projects.

    Business goals won’t be taken seriously unless you set regular dates to review progress – such as every 90 days. Once people know that you will be calling them to account at these progress meetings, they will be more motivated to keep your planning on track.

  • Why Keep Your Data in the Cloud?

    Why Keep Your Data in the Cloud?

    Cloud computing is quickly moving from an obscure concept to an everyday reality for small businesses all over the world.

    A 2015 survey of small business owners found that 52% had already adopted some form of cloud-based data storage; however, a general lack of awareness regarding the logistics and advantages of cloud computing has made others a bit more resistant.

    The truth is, there are several very practical benefits to moving your data into the cloud, including reducing operating costs and boosting efficiency. Here are three more ways cloud computing can help your small business run even better.

    Easy file-sharing with team members & clients

    Businesses are increasingly decentralized. Some employees work from home, while others are on the road serving clients and making sales. Relying on email to share and collaborate on important documents can make it difficult to track files, consolidate revisions and get the right information to your client on time.

    Cloud storage options like Dropbox, Google Drive, Apple iCloud, and Microsoft OneDrive offer small businesses convenient access to files at work, from home – or anywhere else there is an internet connection.

    Plus, it’s easy to share documents with clients, track work in progress and back-up your files to prevent data loss.

    Save money on hardware and maintenance

    Small businesses can easily spend thousands of dollars on the installation and maintenance of physical data storage, including:

    • setting-up the server, device, networks, facilities and other equipment
    • deployment and configuration
    • regular maintenance of back-up servers, storage, network connections and software updates.

    Cloud-based storage, on the other hand, is operated and maintained by a dedicated team of experienced professionals who focus on maintenance and cyber security so your small business doesn’t have to.

    Cloud based solutions are also scalable. Providers offer solutions for businesses of all shapes and sizes, with prices and features tailored to fit your specific needs and budget.

    Online storage offers advanced data protection

    Not only do cloud providers implement the latest cyber-security protection, they also offer your business safeguards to prevent data loss in case of an unforeseen disaster.

    Cloud computing giants like Google can afford to have multiple data centers, each with several internet connections and the capacity to replicate data at every location. They’ve got generators to handle power outages and back-up systems that help servers keep running even if certain components fail.

    Consider how your business would be impacted by a local power outage that rendered your data inaccessible? Loss of revenue and client confidence would likely be substantial. You’d be left to rely on your internal IT team to reboot your system and recover your files. This would likely be costly and time-consuming, not to mention stressful.

    Cloud providers have the resources and expertise small businesses simply can’t otherwise access when it comes to data storage and protection. Tapping into their strength can help your business stay nimble, grow faster, and even compete with bigger players.

  • Improving your business with better time management

    Improving your business with better time management

    When things are hectic, most small business owners wish they could find a way to get more than 24 hours into a day.

    Often, your ‘to-do’ list can get so long that you feel you never get to put as much attention into every task as you would like. It can also mean more time in the office or dealing with work issues after-hours – cutting into your free time and affecting your work-life balance.

    Applying these simple time management tips and tools will help you get the most out of your work time and get more of the important stuff done.

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