Common Problems That New Business Owners Face

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Starting a new business venture may sound as simple as having an idea or a product prototype, and setting up a base from which to sell it to the masses. However, there are many other factors which you will need to consider to make your company a success; from marketing your product well to managing your overheads. Failing to take into account the negatives of being your own boss and the difficulties which can come with being a business owner could cause you major problems down the line. Many small businesses fail within the first year of opening, so to successfully avoid becoming another statistic, you need to plan ahead to combat the common problems that all new business owners face.

Cash flow

Of course, when you set up a new business, you’re not going to be in the green from the start. There are many different start-up costs which are unavoidable in starting up a business, such as buying insurance to cover you for building contents, as well as any other insurance policies you may need to take out. Not forgetting the general costs of running a premises, for example, water and electricity expenses; paying to employ staff members, and purchasing stock. Money issues are always going to be a cause of stress and apprehension, especially if you’ve had to take out a loan to set the company up, or if you are experiencing pressure from investors that are expecting fast returns. In order to avoid getting into deeper money problems, it’s important to keep track of your incomings and outgoings. There are apps and online tools available which can help you with tasks such as calculating budgets. However, it might also be advisable to find an accountant who can help you to keep track of your finances, and advise you on the best course of action to keep your overheads to a minimum.

Becoming overworked

As a new business owner, it is completely understandable that you would want to be fully involved in the running of the company, and keep the control firmly in your own hands. Unfortunately, the running of a business is not simply a nine to five job. As you may have realized, there are many aspects of running a business which you have to do from behind the scenes, such as managing paychecks and paying expenses. If you are acting as the business accountant, manager, and the main point of call for customer liaison, on top of everything else, it won’t be long until you become burnt out. That will be detrimental to both your health and the wellbeing of your business because if you are overworking yourself, you could become disorganized, overlook important details and start making mistakes. It is incredibly challenging to run a business alone, so you may benefit from enlisting some co-owners to share the responsibility of the business, or choosing a few trusted employees to delegate tasks to. Work out which aspects of the business require your expertise, and which assignments you can afford to have less input in. There is also the option of employing independent contractors to take control of jobs which do not fall under your areas of expertise.

Managing legal requirements

There are several legalities that you must meet the requirements of when you start up your own business. You’ll first need to decide what legal structure you will follow; for example, will you be the sole trader, or operating as an LLP? Registering your business name, and acquiring a tax identification number should be high on your list of priorities. There are multiple different types of tax payments businesses can be liable to pay, such as federal and state income tax, BPOL tax, payroll taxes and sales tax. Dealing with these legal and financial processes can be difficult and confusing, especially if you are new to the process. It may be a good idea to consult with USAttorneys who will be able to offer professional advice and assistance in navigating and understanding tax regulations.

Finding loyal customers

For a new business, finding clients is incredibly important, because without the sales you will never be successful. It is imperative that you create an in-depth marketing plan, which will allow you to target as many people within your ideal client group as you can. You need to identify a unique selling point that will grab buyer’s attention, so it’s vital that you conduct comprehensive market research. Gaining a vast number of customers is not the only aim; you also want to find customers who spend more and repeatedly shop with your business. Identify the characteristics of your most loyal customers, and specifically aim future marketing ventures at gaining more clients of this nature. Don’t be afraid of gaining feedback from your customers, as long as you do so in a way which isn’t intrusive, and that won’t take up too much of their time.

Employee satisfaction

When you are stressed and juggling a lot of responsibility, it can be hard to prioritize the well-being of your employees. Nonetheless, your workforce is the heart and soul of your business. They are the ones who interact with client’s the most, and if you want a successful business, you need to keep your employees content. Show your workforce that their welfare is important to you by communicating with them on as regular a basis as you can manage. Ask for their opinions on how the business can be better run; they see first hand how your clientele respond to business procedures and are likely to know best what the company’s strengths and weaknesses are. Offer incentives: they don’t have to be expensive, but it doesn’t hurt to recognize an ‘employee of the month,’ or to hold an annual Christmas party to keep spirits up. If you have a high staff turn over, it doesn’t create a good impression to your clients, and it may be a sign that your employees feel undervalued.

By addressing these points from the beginning, you will minimize the likelihood of encountering complicated issues further down the line.

How To Mitigate The Risks Of Outsourcing

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Visit any business-related website, and you will find articles telling you why you need to outsource. They will tell you your business will grow. You will discover how it can be a worthy investment. And on this very website, you will find out how outsourcing can save your business. But what about the risks? Despite the benefits, it is wise to take a step back before designating important areas of your business to another company. In this article, we will take a look at two of the major risks involved, and we will give you some handy tips to mitigate them.

Risk #1: Does the company have the ability to work for you?

This is the biggest risk of all. You don’t want to hand over a project to a company that is going to make a mess of it. Not only will you lose credibility as a business, but you might also waste money by hiring somebody not up to the job. So, what can you do about it?

Tip: Quite simply, do your research. Start by looking at their website and look at what they have to offer. Do they have evidence to back up their service claims? Consider Bespoke Excel. This professional consultancy firm has clients as respected as Adidas and Aston Martin, with case studies to support the work they do. That’s the kind of testimony you need to look out for. Then find out how long the company has been in existence. We aren’t saying a fledgeling company will offer you a less quality service, but if the firm has been open for a number of years, they are probably doing something right. So, find out as much as you can, from reviews to testimonials, as positive responses will give you some peace of mind.

Risk #2: Will you lose control of your project?

You will lose some control. After all, you are handing your project over to somebody else. While this is normal, it’s understandable that you, as the business leader, will have some fears around this. Will they leak valuable data? Will they produce something you hadn’t envisioned? How long will it take to get the project done? All good questions and you need to find the answer.

Tip: While you will lose some control, you can still mitigate some of the risk by collaboration. When you initially speak to the company involved, lay down a few ground rules and even draw up a contract between yourselves. This can include the request for daily communication, opportunities to see the work-in-progress, and a reasonable deadline to limit the time frame. You also need to be as directive as possible. When hiring a web designer, for example, you may not have the skills needed for the job yourself, but you can still outline what you are looking for, ensuring the web design firm has a clear idea about what you want. If you are in any way unclear, you can’t blame the outsourced firm for not giving you what you wanted. So, talk to the people involved before the project begins, and make sure there is a clear understanding before you hand your work over to them.

Final word

Outsourcing is risky, but for the business leader, there are many advantages. With the right research and effective collaboration, you will mitigate the risks involved, and hopefully benefit from what other companies can offer your business.

Three Tips To Improve Your Product Or Service

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As a small business owner, one of your top priorities should be improving, or, at the very least, maintaining the quality of the service or product that you sell to your customers. After all, if what you provide isn’t of satisfactory quality then you aren’t going to make any money, and your business isn’t going to survive for very long. It’s relatively easy to do what your competitors are doing, but this will only ever get you so far, and if you want your business to grow, then you need to be doing something even better. Unfortunately, this isn’t necessarily as easy if you don’t know where to start. If you’re in a slump and don’t know where to start when it comes to improving your products, then here are some great tips for you.

1. Know Why They Buy

Even if your sales have slumped a little recently, people will have needed to have bought from you at some point, or you wouldn’t be here now. What you need to figure out is why. Luckily, there are plenty of ways that you can do this. For example, you can ask those customers and clients who buy from you frequently to fill out a survey. This survey should be professionally designed and should ask customers what you’re doing right, what you’re doing wrong, and what needs to be improved. This information can help you out a great deal, as it will identify areas you need to work on.

2. Identify The Negatives

Of course, you need to make sure you keep doing the things that you’re doing right, but you also need to figure out what you’re doing wrong. Once again you can do this with a survey, and use the information that you collect to improve. For example, if you own a bait store and customers have stated that the packing isn’t very enticing, then you need to adjust the design of your bait pouch. You also need to pay attention to any complaints or negative comments that you receive. It won’t be fun to hear the negative things that people have to say about you and your business, but it is necessary if you want to improve.

3. Create A Plan

Once you’ve gathered all of this information, you need to create some sort of plan. You can start by making a list of things that should stay the same, good things that you can improve on, and bad things that you need to improve on. The negatives should always take priority, so start with those first. Assemble a team of people that can deal with each problem, such as a design team for packaging, and work towards your goals by taking small steps. It will likely take a lot of work, so it’s important to stay focused, set targets and goals, and remember what you are working for.

The quality of your product or service is incredibly important for the success of your business, so you need to get it as high as possible. More often than not, simply listening to your customers will give you all the information you need to know to get this done, so always be open to feedback.

Launching Your Business With a Bang

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When launching your business, you want to ensure that you reach as many people as possible. You might have a steady stream of family and friends who are happy to use your business, but you cannot rely on these forever.

Understanding what services to take advantage off, then, is essential to building a strong reputation early on and avoiding much of the uncertainty that is fraught with many a business is its early months. The world of business has changed dramatically in just the past few years, and so ignoring the potential of what you can achieve with the right tools will only leave you struggling.

EVENTS

Using your launch in tandem with events will give everyone in the neighbourhood an opportunity to see what you are all about as well as get the chance for vital facetime with locals. This will allow you to discuss any concerns they may have as well as provide absolute transparency about your company.

Demonstrating a sustainable and considerate business strategy will raise your profile in the local area and safe any suspicious eyes from glaring at you and your employees as they step out of the car on those early mornings. Furthermore, you will have the option to work with local vendors to perhaps work out collaborations that can benefit the both of you. This can include discounts and deals for customers who use both services, which will help build loyalty and trust between you and both local businesses and customers.

ONLINE

In an age where everyone is online, having a substantial online presence is essential for building your reputation in the early weeks of your company. This will give potential investors and customers the opportunity to discover how you can help them and bring more business to you.

To achieve this, it is essential that you have a complete website. If web design isn’t your thing, then working with a verified Kentico web agency can help you achieve the best results and make your endeavours look as prepared and professional as you want, even if you don’t feel it just yet.

MARKETING

Without marketing how can you expect anybody to know about your business? The world of marketing has evolved a lot in recent years, and companies are no longer relying on merely print and TV to get their name out there.

Therefore, investing in a robust marketing campaign can announce your business to the world with a bang. Platforms such as social media and services like Adwords will give you the chance to show off your business to the relevant consumers and allow customers to flock in earlier than you might imagine.

A BIGGER BANG

You might have the strongest and most unique business idea the world has ever seen, but you can’t rely on mere word of mouth to get your name out there. Engaging with the community and taking steps towards taking advantage of all of the services on offer in the modern world will announce your company to the world in a way that it will be hard to not take notice of.

How to properly execute an online review management program

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StrategyDriven Customer Relationship Management Article00As a business owner or manager, if you are thinking about assembling an online review management program, you are already on the right path to managing the reputation of your company online. Properly executing an online review management strategy in order to benefit your company takes some critical thought, training, and repetition, but the payoff is ultimately being able to provide potential customers with professional profiles that are truly indicative of the quality service and goods you provide.

Executing on Your Online Review Management Program

If you are looking to make sure the process you’re implementing is successful, you’ll want to make sure that you are constantly checking in with staff and the results to see what’s working and to detect weak areas early on if any exist. We always recommend auditing your current online reviews prior to putting a new plan in place, so that you can set goals appropriately and log progress against the original values.

As you are setting up your review management program, make sure you also appoint a single person (whether this is yourself, a manager, or another staff member) to head this project. By allowing this program to “free float” between staff members, it is more likely to get dropped by the wayside or slip through the cracks when it comes to execution. Similarly, make sure you are scheduling time each week to review progress.

Once your plan is in place, you’ll want to complete the following steps:

Set Expectations

Part of your online review management program is going to consist of setting expectations, or goals. This could mean that you’d like to have 5 new reviews left on your business’s Google My Business profile within two months.

But setting expectations should also mean that you are clearly outlining that you expect staff to treat customers, clients, or patients with a set level of quality care. Similarly, let staff know that you’d like them to ask each customer for a review and to ensure that they specify a designated professional profile, like Google.

These expectations should also be held for yourself; are you asking for reviews and working to ensure that customers have a positive experience? Make sure the expectations surrounding this program are entirely positive and aimed at bettering the company as a whole.

Follow up with Staff

Once your online review management program has been set into action, make sure you’re taking time each week to check in with staff. Ask them what kind of reactions they get from customers after they’re asked to leave a review to see if an alternative method, like using a reputation management software that sends text messages, may work better.

Make sure you’re also asking staff how they feel! Do they feel awkward when asking? Has one staff member developed a great flow of conversation that leads into asking for a review much more seamlessly? These are details that should be shared and accommodated to make sure everyone is successful.

Review the Results

At set intervals, you will want to make sure that you are reviewing the results. By this point, your goals and expectations should be realistic, so seeing one review gained after two weeks of action shouldn’t necessarily be taken as a failure.

Reviewing results monthly and quarterly may be a good way to see trends and manage outcomes by working one-on-one with staff to develop better methods of asking for reviews!