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High-Tech or High-Touch?

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StrategyDriven Talent Management Article |High-touch|High-Tech or High-Touch?Over the past decade technology has impacted the way we communicate, learn, and work. Over 5.5 billion Google searches are conducted every day and it is difficult to remember how we obtained information pre-Google. Big Data analytics are an important resource for business functions in all industries and conversational technology like chatbots and personal assistants can offer 24/7 customer support.

However, the question I want you to ask yourself is “Have we become too high-tech?” The title of this article is “High-Tech or High-Touch.” The more effective approach would be to implement a combination of both. Technology, when used properly, can improve efficiency and accuracy, but a high-touch approach is the key to building long-lasting relationships.

Salespeople often complain that no one answers their phone and will only respond to email or text. I will agree that texting is often the fastest way to obtain a response. However, technology should never replace human interaction. Often, it is the salesperson who would rather communicate by text or email, not the prospect or client. When you are screened out or voice mail messages are ignored, the person you contacted does not see any benefit in talking to you. Refrain from making WWD (what we do) presentations and instead focus your messages and conversations on how what you offer, benefits others.

People want three questions answered in any type of relationship: First – do you care about me? Second – can I trust you? Third – will you deliver what you promise? Prospects will initially view you as a vendor, but your goal should be to elevate your relationship to trusted advisor, consultant or even friend. Let your clients and prospects talk about themselves and they will like you better. Learn as much as you can about their personal lives and challenges so you can position yourself as the logical solution. It is impossible to obtain this information if you only communicate utilizing technology.

It is also amazing how effective snail mail has become. If you have an important message you want read, do not email it. Send the message in a white envelope (not a company envelope) with the return address only listing your street address – no company name. Too often, when people receive something from a company in the mail, they assume it is a sales pitch and discard it before they read or open it. Handwrite their name and address and write the words “personal and confidential” in the lower left-hand corner of the envelope. That is the only mail that is not opened by an assistant and will be read by the person you have addressed.

When you combine a High-Tech with High-Touch approach, rapport improves which then leads to trust; you will establish strong relationships and you will not be deleted with one simple click.

About the Author

StrategyDriven Expert Contributor |Barbara BrunoBarbara Bruno, author of HIGH-TECH HIGH-TOUCH RECRUITING: How To Attract And Retain The Best Talent By Improving The Candidate Experience, is an internationally recognized recruiting expert who has a proven track record of helping recruiters and talent acquisition professionals become more successful and less stressed. She has created several popular LinkedIn Learning courses and is president of Good As Gold Training, HR Search, Inc., and Happy Candidates. For more information, please visit:
https://www.koganpage.com/product/high-tech-high-touch-recruiting-9781789665154

Company Gone Well? Here’s What to Do With the Cash

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StrategyDriven Managing Your Finances Article |Wealth Management|Company Gone Well? Here’s What to Do With the CashAs an entrepreneur, one of the best things that can happen to you is for your company to do well and for you to make a killing selling your company or shares in your firm. However, newfound wealth can be difficult if you haven’t thought of what to do with it. Too many entrepreneurs are so focused on their next steps that if they suddenly find themselves with a windfall, the next steps can seem difficult. Without careful management, wealth that could last you the rest of your life could be burned through before you get a grasp on the situation. This doesn’t just come from splurging cash unnecessarily, it comes from not properly understanding taxation, wealth management fees and your own risk tolerance. If you’ve been lucky enough to make money from entrepreneurship, you owe it to yourself to be sensible with it.

Ringfence your cash while you decide what to do

The first thing you’ll need to do when you get a windfall of money is to make sure that it’s in a safe place. By all means – take a portion to have some fun with – but make sure you put the money you want to take care of in a safe account that you won’t accidentally eat up while you decide what to do with it. This will help to ward off any impulsive decisions that can hurt you in the long run, as well as give you the time you need to work out what you need to do next. This might be a good time to think of how you want to change the world – are there any projects or charities that you have always believed in and that need your help? Are there any causes not represented by a charity that you could help? Do you just want to make sure that your family is taken care of? Take your time to decide what you want to do while you enjoy the money you’ve put aside for fun.

Get taxes out of the way

You will probably need to pay some of your newfound money in taxes, so understand that a substantial amount will have to go to the government. At this stage, it’s a good idea to hire an accountant so they can help you to be as tax-efficient as possible and not have to pay any unnecessary tax that you would incur due to poor wealth management. The areas to look at include federal and state income taxes, capital gains tax and estate tax. Make sure you’ve thought of taxes before you start spending anything as you might not realize how much of your money has to go to the government.

Speak to someone you trust

Once you’ve worked out how much of your windfall you have available to preserve, i.e. your original sum minus taxes, debts and the chunk you take to have fun with, you should have a good idea of what you want to do with that money and your life. You should speak to a wealth advisor to help formulate a plan that includes retirement, inheritance and more. Seek the advice of an advisor that belongs to national advisory institutions or who has other qualifications like being a member of the President’s Club at Morgan Stanley. You should find one that you completely trust and feel comfortable with, as you may at one point have to speak to them about issues like divorce and death, as well as finding somebody who can both help you plan and invest money, without charging you high and exploitative rates.

They should be able to build you a portfolio that fits in with your life plan, whether that’s to have a certain amount to live off by retirement or whether that’s an investment to supplement your current lifestyle. Make sure you speak to them about diversifying your interests so in the event of a market crash you’re not left high and dry. You shouldn’t just approach a wealth manager to help you build a portfolio, but you should discuss the sort of portfolio that you want to build together. Some people have special needs, such as members of the Islamic community, who need to make investments in companies that align with Islamic philosophy. Apart from that, you might have certain ethical requirements like wanting to avoid tobacco or fossil fuels, which are requirements you need to discuss with your wealth manager.

You should also talk with them about how you can kill two birds with one stone and decrease your taxes by giving money to charity – whether that’s direct charitable giving to charity or a donor-advised fund. There are many vehicles that involve charitable giving, so explore them properly.

If you have previously used financial management techniques to save before you achieved success as an entrepreneur, you might want to go through your existing portfolio and gauge how your investment strategy has changed. You might now be able to solely live off your investments, in which case you can just look at the amount of money you need to live and structure your portfolio to let you achieve that. For example, if you’ve decided you can live on $100,000 a year and have $10 million to invest, you just need to invest into a portfolio that can safely deliver you regular after-tax returns of 1% per annum. You might want to opt for tax-free investments to help to reduce your tax burden.

Keep some under the proverbial mattress

You should also have an emergency fund stashed somewhere in case your wealth takes a hit due to a major market shock or other unforeseen occurrences. This emergency fund should be enough to cover your next 6 months of expenses. This doesn’t just have to be to maintain your lifestyle while you wait for markets to recover – you might need to have a major medical operation or divorce settlement at some point, in which case you’ll need easily accessible money.

Never Run Out of Money! Use Cash Forecasting to Stay Solvent

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StrategyDriven Managing Your Finances Article |Cash Forecasting|Never Run Out of Money! Use Cash Forecasting to Stay SolventWill you have enough to make payroll? It shouldn’t be a mystery.

Don’t run out of money might be the first commandment of any successful small to medium enterprise (SME). You need cash on hand to pay your employees, service your debts, and keep your supplies rolling in on time. In short, you need to cash to keep your business running.

Cash forecasting is the tool you need to make sure you have the cash you need. Instead of looking at accounts payable and receivable (AP and AR), cash forecasting predicts how much actual money you will have on hand to meet your responsibilities. In addition to keeping you solvent from day to day and year to year, cash forecasting has other benefits, too.

Identify Potential Problems Ahead of Time

Cash forecasting can be like a check engine light with premonition for your finances. You can spot trouble spots months ahead of time and plan your way around them. In doing your first-quarter forecast, you might discover that you will have additional expenses in March, or perhaps you will have shipped sales or provided services that aren’t due to be paid until April. Your sales will show up in your AR report, but you probably won’t actually see the cash until April. By predicting this sort of shortfall in March, you can reduce expenditures in February or secure a line of credit with your bank to prevent problems before they happen.

Plan ahead to keep problems from ever occurring.

StrategyDriven Managing Your Finances Article |Cash Forecasting|Never Run Out of Money! Use Cash Forecasting to Stay SolventCreate Strong Relationships with Employees and Suppliers

Your employees depend on you to provide them with a reliable paycheck. They count on that money to meet their household expenses, pay rent or a mortgage, and buy groceries. Your suppliers are in business just like you. They need your payments to meet their own expenses. Neither employees nor suppliers will want to do business with you if they can’t depend on you. Being a reliable partner will establish trust and goodwill that is invaluable in running your business.

Long-Term Planning

You need to make larger expenditures sometimes to keep your business running. Maybe it is time to upgrade all your laptops or invest in that software you need to manage your growth. Be careful. Longer-term forecasts may not be as accurate as short term ones. Nevertheless, your cash forecasting can help you be strategic about when to make more significant investments, how to spread the expense if necessary, and when it might be a good idea to delay a more substantial purchase. Forecasting also helps you put some of your revenue aside for a rainy day, because there will always be rainy days, and expenses or slumps you can’t predict.

Cash forecasting is one of the basics of business. In 2018, CB Investments did an analysis of 101 failed startup businesses. Of those 101, the second most common reason they failed was that they ran out of cash. Cash forecasting is essential for avoiding disaster.

A solid cash forecast is also something your investors will need and something a bank will want to consider before doing business with you. It should be a living, breathing part of your business, updated continually, and consulted often. Cash is king, don’t be caught without it!

Business Financing Tips for Latino Business Owners

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StrategyDriven Managing Your Finances Article |Business Financing Tips|Business Financing Tips for Latino Business OwnersStarting and owning a business is growing into a much more popular way for people to make a living. While people of all backgrounds are starting businesses in the USA, no one is doing it more than Latino and Hispanic individuals, as they are the fastest growing group of entrepreneurs in the entire country.

However, before you can start and run your business successfully, you need to have the money to finance it. Sure, when you visit Professional Hispano and other helpful resources, you can learn great tips and tricks for running a company, but it is important to know how you’re going to afford the many costs of running a business.

In an effort to help when it comes to the financing aspect of your business, this article is going to cover a few finance-related tips for Latino business owners.

StrategyDriven Managing Your Finances Article |Business Financing Tips|Business Financing Tips for Latino Business OwnersHave a Plan

The first and most important financing-related tip we can give is to make sure you have a plan. You need to take time to figure out just how much your business is going to cost to start up, and also what it will cost to run. This can take a lot of research on your part, but that is a necessary step in the process.

One of the best ways to come up with this plan is to think backwards. Start out by thinking about what you’d like your company to look like. From there, backtrack and cover all of the things you will need to have and pay for to reach that goal. For example, will you need office space? What about employees, computers and other equipment?

Whatever you need should be written down, along with the approximate cost so you have a good idea of what it will take to start the business. The last thing you want is to only secure $10,000 to get your business off the ground, when you actually needed $15,000.

Know the Options Available to You

Once you have a plan and know how much the starting and operating of your business will cost, it’s time to actually go out and get the funding you need. Thankfully, there are many options at your disposal as a Latino entrepreneur. You can opt for a standard business loan, a microloan from the U.S Small Business Administration or one of the variety of grants available from the government.

With some of these grants and loans, you will need to apply, so be sure you have a business plan in place and are confident in your numbers and projections. Some can be quite competitive, while others are easier to be approved for or given.

Of course, there is also the option to bootstrap your business and pay for everything out of pocket. This can be tough if the costs are high, but many entrepreneurs can bootstrap their venture if they decide to make sacrifices and work hard. This option can save you a lot in the grand scheme of things, as well.

Don’t Be Afraid to Seek Out Assistance

Figuring out the financing for your business can be an incredibly stressful and daunting experience. This is especially true for those who are new to the space. Thankfully, there are ways to get some help. There are many organizations, clubs and groups that you can reach out to such as SCORE, the U.S Hispanic Chamber of Commerce, the Minority Business Development Agency and others.

Each can help you get guidance from real professionals in the space, who can point you in the right direction when it comes to financing. You can also simply speak to other Latino business owners in person or online and learn about their story.

Hearing from others who have been in your shoes can be very valuable. It can give you a better idea of the steps you should take when it comes to not only getting financed, but also operating your business as a whole.

While you might run the business alone and it’s success is 100% dependent on you, there are still many resources you can use to ensure you are making the right choices when it comes to financing.

The Best Financing Options For You

Financing a business as a Latino entrepreneur can be a difficult and potentially-stressful experience. But if you have a plan, know your options for securing financing and know how to ask for help, you are well on your way to being able to successfully finance your business.

Five Advantages Of Cloud Computing For SMEs

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StrategyDriven Tactical Execution Article |Cloud Computing|Five Advantages Of Cloud Computing For SMEsThe importance of cloud computing is overlooked by many businesses, it is vital for small and medium businesses to function at their best.

Why is cloud computing so important for SMEs? The idea of the cloud is that it is a network of remote servers that will allow you to access shared applications, storage, and other computing resources via an internet-based facility. The cloud replaces the need to have to install additional hardware of your own. The cloud is all around you, operating in your day to day life.

Everything is moving into the cloud. This is because there are a lot of cloud computing use cases that will make life a lot easier for users and businesses alike. It can improve cash flow, increase efficiency, and offers a lot of other advantages.

Flexibility

When you own a business, have the needed flexibility is essential. This is where cloud computing for SMEs can come in to help you. When you’re on the go, you know that you can rely on the cloud to give you access to modify and save the files you need from any device wherever you happen to be.

If you want to access virtual resources like protected storage, web applications, or redundant firewalls for example, then you can do this by using any device that is connected to the cloud via the internet. Activity like this can give any small business the upper hand on the competition.

Portability – Remote IT Infrastructure

As part of the advantage of flexibility, the cloud offers near limitless computer resources to its users regardless of their location.

The ability to allocate an entire server farm’s equivalent of computer power for your project or the task you need to do with just a few clicks is very appealing. Every major player in business uses a platform like this to give its users and internal employees access to secured data.

Data Security

Storing files and your important data via the cloud is often safer than more traditional storage on a phone or a computer. There are often many laters that are put into cloud computing security so the best cloud service providers can offer infrastructure will protect all your data.

Software Updates

Automatic software updates are another bonus that you can get from moving across to a cloud computing system. A key thing that can damage the productivity of a business is running out of data software. A lot of owners neglect this step, so it’s a common issue. With the cloud, it’s the job of the cloud service provider to manage any needed maintenance and software updates without you having to worry about it.

Environmentally Friendly

Cloud computing can easily be scaled to match your business needs. Before the cloud, you had to buy physical machines yourself, pay to power the whole server room, and pay employees to handle maintenance. Now, you only need to pay for the resources that you actually need. This helps the environment by reducing your carbon footprint.