Portfolio Categories: AMERICAN EXPRESS BUSINESS TRENDS AND INSIGHTS

WHEN A BUSINESS PIVOT IS THE KEY TO A COMPANY’S SURVIVAL

The following companies have been on the brink of closing, but found a way to survive. Discover their secrets to thriving after a business pivot.

NOVEMBER 17, 2017

 

In 1998 during the dot-com boom, Chris Mittelstaedt, founder and CEO of The FruitGuys, began delivering farm-fresh fruit to offices in Silicon Valley as a healthy alternative to sodas and sweets. Business quickly took off, but just three years later he found it necessary to make a major business pivot.

When the dot-com bubble burst in 2001, Mittelstaedt lost half of his clientele overnight. He had to start delivering product himself. The FruitGuys also struggled during the Great Recession of 2008.

Despite experiencing market dives that could have been business busters, today the company delivers to more than 3,000 companies nationwide, with warehouses in 13 cities and annual sales just over $30 million.

“Because we were smaller and only located in the Bay Area at the time, the dot-com bust hit us harder than the recession,” says Mittelstaedt. “In both cases, the instinct to survive and do anything and everything required to stay alive became the driving force.”

Rather than close down, Mittelstaedt hunkered down.

“The ability to do a business pivot while managing expenses in a tight economy goes way beyond multitasking,” says Mittelstaedt. “Pivoting is a twist and a rotation at the same time. The only way to stay afloat is to give nothing less than all of the energy, focus and skill you have to muster.”

Dips in Business Can Bring Great Lessons

Whatever the circumstances that lead to a business pivot, entrepreneurs find that the need to reassess and refocus brings invaluable experiences.

Such was the case with Miko Branch, CEO of curly and textured hair product line Miss Jessie’s. She almost lost her brand shortly after launching several years ago. Now Miss Jessie’s is a multi-million dollar business. Branch attributes her business’s success to the stumbles the company experienced along the way.

When your business dips, it triggers resourcefulness, and that strengthens the fate of your company.—Eric Casaburi, author

“If it weren’t for our failures early on, we wouldn’t have experienced the level of success and acquired the innovation necessary to create a business from scratch,” says Branch, who co-founded Miss Jessie’s with her late sister, Titi Branch. “We became trailblazers and leaders in the beauty business because we always think outside the box and came up with a master plan.”

There’s no better feeling than when a company pulls out of a death spiral and soars, adds Terry Duncan, president of Duncan Management Inc., a business development company.

“The revived, inspired and rewarding metamorphosis of a once struggling business to a stable company is highly satisfying,” Duncan says. “The lessons learned from this experience are comparable to what you learn starting a new business.”

Steps to Ensuring a Strong Business

Being prepared and ready to execute a business pivot at a moment’s notice can lead to success. The following tips can help achieve such a balance.

1. Be open to new ideas.

“The best way to recover from faulty business steps is to be open to new suggestions,” says Duncan. “There are always lessons to learn. The experience leads to rewarding adventures that fortify the core of your business.”

Branch agrees. “Be open to new concepts and innovative thinking,” she says. “You never know where your next big idea will come from. Try to understand how these new concepts or approaches can enhance and improve your business.”

2. Maintain a positive cash flow.

“I believe that running a business based on making money where you are, rather than hoping someday you’ll make money at scale, allows for quick decision making when it comes to difficult choices and pivots,” says Mittelstaedt. “This method has kept me honest about where we are and what we can do at any given time. It also enables us to quickly adapt to change.”

3. Believe in your product and take necessary risks.

Alex Pollak is CEO and founder of ParaDocs Worldwide Inc., an events medical services company that staffs events across the country. When he started his business, he invested his savings in operational insurance.

“It was an incredibly expensive investment that, if it didn’t pay off, could have ended my business,” says Pollak. “The first year, we had two events requiring high premiums and barely covered the costs. That was scary, but it taught me to believe in my product and take risks.”

4. Embrace the business pivot.

Eric Casaburi, entrepreneur and author of Just Make Money!, encourages company owners not to fear the business pivot.

“No company rises straight to success,” Casaburi says. “There’s always some regression, but those times create pivots and necessary changes. A business pivot gets your company to the next level.

“Temporarily making less money is painful, but often good things come from being uncomfortable,” he continues. “When your business dips, it triggers resourcefulness, and that strengthens the fate of your company.”

Read more articles on pivoting.

Photo: Getty Images
Project Link
Date: NOVEMBER 17, 2017
© Julie Bawden-Davis

LESSONS LEARNED: WHAT MILITARY SERVICE TAUGHT THESE VETERAN BUSINESS OWNERS

In honor of Veterans Day, 18 veteran business owners share valuable lessons learned from military service.

NOVEMBER 08, 2017

 

While protecting our country and way of life, U.S. military personnel learn key lessons along the way. Thanks to their military training, those veterans who choose to run their own businesses after serving may often have an advantage over the competition.

The lessons veterans learn while working as cohesive, well-orchestrated teams for the U.S. military help empower them to be effective business leaders. Here 18 veteran business owners share the lessons they learned in the military that have led to business success.

The Power of Intense Focus

“There are times when a business owner is faced with situations that come with a lot of noise. My military background helps me stay on task and focused on getting from Point A to Point B. The ability to silence distractions is a critical business skill that allows me to quickly assess situations and identify solutions that yield positive outcomes. This ability to keep my bearings allows me as a veteran business owner to focus more on what people are saying rather than on how they say it.” —John O’Hara (U.S. Marine Corps), president of TOP/SF, a division of The O’Hara Project

 

Better Teamwork

“In order to achieve a mission, the military taught me that it takes a team watching each other’s backs while doing their individual best. That’s why the military has training exercises and holds everyone accountable. At my company, I ensure that we strategically choose team members and fully train them so they can offer their best efforts. Everyone is also held accountable for their work.” —Mike McKim (U.S. Navy), CEO and founder of Cuvee Coffee

 

“Being a Marine Corps fighter pilot taught me that taking care of your people allows them to take care of their work. No one goes it alone in the military and the same holds true for business. Teamwork builds successful companies.” —Ted Fienning (U.S. Marine Corps), co-founder of Babiators

 

“When I served in the U.S. Navy, I learned a lot about team bonding and working together as a cohesive unit. The stakes can be quite high when you’re in the military—literally life and death. You depend on one another for support. Fortunately, you don’t have to deal with as much potential danger in the business world as a veteran business owner. However, teamwork is still an important part of the process.” —Charles Dugan (U.S. Navy), CEO of American Image Displays

 

“The military produces individuals with uncanny adaptive thinking and a capacity and passion for continuing to learn. This learning environment focuses on personal development, as well as training and developing subordinates and peers. This acts as a force multiplier when a veteran is added to the staff. He or she ensures that the whole is performing well rather than focusing on the individual. This unwavering commitment to a greater cause becomes an ingrained ethos that can improve the work habits of the entire team.” —Lee Kirby (U.S. Army), president of Uptime Institute and founder of Salute Mission Critical

 

“Military service has a long, time-honored tradition of shaping individuals into rigorous, fulfilling, and organized team cohorts. The traditions, unification and determination of a solidified unit magnify the accomplishments of a group. If problems arise, they’re faced head-on, without reservation, and with the help of those around you.” —Terry Duncan (U.S. Marine Corps), president of Duncan Management Inc.

 

Advanced Leadership Skills

“I learned everything about being a leader from military service, including discipline, consistency, ethics and respect. I also learned how to care for others who were under me in rank. You can learn leadership and management skills anywhere, but the Army gives you the opportunity to learn it when you’re younger and carry the lifelong lesson of caring about others.” —Sami Ladeki, (U.S. Army), founder and CEO of Sammy’s Woodfired Pizza & Grill

“Every day I use skills that I learned in the Navy. One method I learned is ‘distributed decision making.’ This involves pushing responsibility and accountability as far down in the organization as possible. This requires training and clear accountability. When executed well, this method promotes creativity and autonomy at many levels of the organization, rather than creating a bottleneck at the top ranks.” —Rob Eleveld (U.S. Navy), CEO of Whitepages Pro

 

Adaptability

“In the military, if something stays the same for too long, it starts to feel strange. You’re constantly moving to a new base, changing roles and deploying to different locations. In the private sector, change is also constant, especially in companies that strive to be ‘green and growing’ and look to improve. Our company has experienced constant change and continuous improvement over the past two years. Our military-like culture has helped us push through the changes quickly.” —Tim Best (U.S. Army), CEO of Bradley-Morris and RecruitMilitary

 

Superior Decision Making Skills

“Leaders would love to make decisions with perfect information, but that never happens. In the military, I learned to trust my ability to make decisions under pressure using what information I had available. For instance, in Afghanistan, while serving as an Army platoon leader, I picked up on the fact that we were about to be ambushed in time to make a decision that prevented casualties. As a veteran business owner, I’ve successfully used that same ability to make decisions under pressure.” —Mike Kim (U.S. Army), co-founder of KPOP Foods

 

Resourcefulness, Flexibility and Persistence

“Veterans bring a sense of resourcefulness, boldness and leadership not seen in employees with civilian backgrounds. They’ve been faced with the challenge of getting a job done without access to the resources that would ideally be available. This resourcefulness is a highly desirable employee trait for independent business owners trying to grow with limited resources at hand. Veterans also bring to the table a keen ability to stick through difficult tasks and see them through to completion.” —Patrick J. MacKrell (U.S. Marine Corps), president and CEO of New York Business Development CorporationVeterans bring a sense of resourcefulness, boldness and leadership not seen in employees with civilian backgrounds.

Patrick J. MacKrell, president and CEO, New York Business Development Corporation

“A veteran’s greatest skill is an uncanny and nearly unparalleled ability to independently solve complex tasks with little to no guidance. Service members are entrusted with missions of the utmost importance to national security and with the lives of their subordinates. They’re given tasks and told to ‘make it work.’ As such, veterans are accustomed to performing independently at the highest levels while under stress.”—Nicolas Campbell (U.S. Army), president of Stonewall Defense

 

“Veterans learn to pivot on a moment’s notice from plans that aren’t working to plans that are. Many people think military service is all about rigidity and following orders. That’s true—in part, but you also need to think and act flexibly. If your battle plan isn’t working, you pivot immediately to a plan that does.” —Paul Dillon (U.S. Army), owner of Dillon Consulting Services LLC

 

“Resilience is critical to business and fostered through military service. Nothing ever goes according to plan. Driving on, regardless of the magnitude, discomfort or surprise of the change is the only option.” —Ed Marsh (U.S. Army), owner of Consilium Global Business Advisors, LLC

 

“The military cultivates many traits that serve well in business. It champions collaboration, innovation, being nimble and problem solving. Innovation ends up being perpetuated as a function of people having to think on their feet. You never know what’s around the corner or what challenge will arise, but one belief that runs deep in the military is that ‘there is always a way.’ And when it comes to executing a mission, there’s a strong adherence to relying heavily on the collective creativity of the team to get the job done.” —Ed Borromeo, (U.S. Air Force), partner and COO at Tallwave

 

The Ability to Harness Processes and Procedures

“One of the most important things my Air Force training taught me was the importance of procedures and having processes. You don’t just hop into a plane and take it off the ground. There are many checks and safety inspections that have to be done, and a responsible pilot has to be accountable for all of it. As a veteran business owner, I take this same approach of rigorous training and safety precautions with my pest control company.” —Donnie Shelton (U.S. Air Force), owner, Triangle Pest Control

 

“My biggest lesson learned from the military that I apply to my business is to focus on the fundamentals. In the military, everything is built on the fundamentals. We would never be able to progress to conducting night live fire exercises if we weren’t able to shoot, move and communicate during the day.” —Nolan Martin (U.S. Army), creator of BudgetChaos.com

 

Extreme Discipline

“Starting and running your own business is the most all-consuming thing you can do, and I wouldn’t be able to get through it without the discipline the military instilled in me. Running on little sleep, having a no-quit attitude and preserving until the end are all attributes I can trace back to the military.” —Brady Speth (U.S. Air Force), CEO and owner of Riton USA

 
Photo: Getty Images
Project Link
Date: NOVEMBER 08, 2017
© Julie Bawden-Davis

7 TIPS TO HELP ACHIEVE STRONG FOURTH QUARTER SALES

As holiday shopping begins, is your company on target for yearly sales projections? Try these strategies to help ensure you end the year in the black.
 

NOVEMBER 02, 2017

 

Ten months ago you most likely started the year with optimistic revenue projections. Now that fourth quarter sales are in full swing, it’s probably clear whether reality is meeting expectations. If you require significant fourth quarter sales to achieve your goals, you may still meet your initial projections.

“There’s still time to ensure strong fourth quarter sales,” says Shlomo Bregman, founder and CEO of Bregman Success LLC, a sales training and marketing agency. “Many consumers are primed to open their wallets at this time of year. As a result, I’ve seen companies earn as much revenue in the last two months of the year as they have in the previous 10 months.”

In addition to ensuring a positive year-end, strong fourth quarter sales set you on the right track for next year, believes Bregman. “A healthy fourth quarter creates hope and optimism within a company and more often than not leads to a strong start to the first quarter of the following business year.”

Many companies’ fourth quarter sales are the highest, even though there’s less sales days than other times of the year, adds Manny Medina, CEO of the sales engagement platform, Outreach. “In order to have stellar fourth quarter sales, it’s important to line yourself up for success.”

Consider these seven strategies for helping to ensure that your fourth quarter sales end on a high note.

1. Examine current sales figures.

In order to improve on fourth quarter sales, it’s a good idea to take a close look at your current numbers, suggests Eva Rosenberg, a tax education expert and author of Small Business Taxes Made Easy.

“Update your accounting and compare your current profit and loss statement with last year’s at this time,” says Rosenberg. “Then determine how much more you need to earn this year and early next year to meet the targets you’d like to reach.”

2. Focus on month-end, rather than quarter-end sales.

Once you have current sales figures, determine how much more you’re projected to make for the year and break that amount up into months and weeks, advises Fred Gewant, chief revenue officer for Adaptive Insights, which produces a performance management business-to-business software.

“If you look at every month-end as a quarter-end that will change the performance of your sales organization,” says Gewant. “When you manage sales on a monthly versus quarterly basis, there’s a level of accountability and focus that keeps performance aligned with sales goals.”

3. Follow up with unsold customers.

One of your best bets for healthy fourth quarter sales is selling to customers you’ve already vetted and presented with your sales pitch prior.

“Make a list of all of your unsold prospects from the past year and follow-up with them,” suggests Bregman. “Start with the most recent, because you’ll have a better chance of closing with them.”

Giving customers something extra surprises and delights them and trains them to expect more.—Mike Schultz, president, RAIN Group

Brock Blake, CEO of the lender Lendio, agrees. “When time is of the essence, look for low-hanging fruit. Call back prospects from the previous quarter, offer an incentive or a rebate, or send out a mailer or email blast to build sales momentum.”

Before you approach existing customers, get clear on their prior objections to buying, suggests Bregman. “Most customers have specific objections and reasons they articulate for not proceeding with a sale, such as high prices,” he says. “Compile a list of the most common objections and then craft responses that will help customers move past those objections.”

4. Market and sell existing overstock.

“You can often immediately boost fourth quarter sales by running a promotion on products that have been in less demand than you originally projected,” says Robert Ellis, CEO of Massage Tables Now, an e-commerce company that sells massage equipment and supplies. “Attempt to make a small profit or recoup the original capital invested in order to move old inventory and make room for products in higher demand.”

Instead of just promoting products you know will sell this time of year, use this buying market to clear what James Thomson calls “stale inventory or overstock.” He is a partner at Buy Box Experts, a marketing agency for online sellers and author of The Amazon Marketplace Dilemma: A Brand Executive’s Challenge Growing Sales and Maintaining Control.

“We find even small price discounts this time of year will motivate customers to buy practically anything, allowing you an easier time clearing out inventory in those dusty corners of your warehouse,” says Thomson.

5. Add value to your product offerings.

Mike Schultz, president at RAIN Group, which provides sales training and consulting, suggests increasing fourth quarter sales by offering clients extra value. “Many businesses will discount, but the trouble with this tactic is that it trains buyers to expect discounts,” says Shultz, who is also the author of Insight Selling. “Giving customers something extra surprises and delights them and trains them to expect more.”

6. Improve your marketing efforts.

With the race to Black Friday on, Thomson encourages brands and retailers to improve their SEO optimization.

“Better product titles, bullet points, search keywords images and short educational/product demonstration videos help create higher visibility,” says Thomson. “This puts your products ahead of the millions of options yelling for attention and drives customer conversion.”

7. Keep an eye on the new year.

Medina cautions that it’s easy to get so focused on achieving strong fourth quarter sales that you might deplete your product pipeline and find yourself in a tough spot starting quarter one.

“Of course you want to close as much business as possible in the last quarter, but also keep an eye on the new year,” he says. “We’ve found it useful to think about how our product can help customers start their year strong. Then we build messaging and campaigns around that.”

Thomson recommends also stocking up for right after the holidays. “Remember that people often don’t receive all of the gifts they want, so there are often sales immediately after Christmas as people buy items for themselves.”

Photo: Getty Images
Project Link
Date: NOVEMBER 02, 2017
© Julie Bawden-Davis

7 WAYS TO HELP PREVENT E-COMMERCE FRAUD DURING THE HOLIDAYS

With the holiday sales season just about here, protect your bottom line now by considering the following e-commerce fraud prevention tips.

OCTOBER 30, 2017

 

The holiday season can present a significant uptick in sales for many business owners. Unfortunately, it’s also during the holidays that companies are more likely to see an accompanying increase in e-commerce fraud.

Overall, the incidence of holiday fraud is rising each year. According to The Forter/MRC Fraud Attack Index, fourth quarter U.S. online sales in 2016 were 79 percent more at risk of fraud than in 2015. (The index measures domestic and international transactions in apparel, luxury and digital goods, food deliveries and travel and hospitality.)

E-commerce fraud increases are likely tied into the increase in EMV-chip technology at physical stores as fraudsters shift to card-not-present (CNP) transactions, believes Kimberly Sutherland. Sutherland is the senior director for fraud and identity management strategy for LexisNexis Risk Solutions, which offers risk management services.

In 2017, retailers have seen the cost of online fraud increase significantly, notes Sutherland.

“According to the 2017 LexisNexis True Cost of Fraud Study, [which surveyed 1,000 fraud executives], merchants that sell both online physical and digital goods experienced a significantly higher cost associated with their fraud losses—a 63 percent increase over 2016.”

Types of E-Commerce Fraud

There are two main types of e-commerce fraud for business owners to watch out for during the holiday season. Both types of fraud can significantly affect fourth quarter sales.

Friendly Fraud

“When a customer makes a purchase online for a product or service with a credit card, and then contacts the credit card issuer to dispute the charge in a believable way, that’s considered friendly fraud,” says Matthew Katz, CEO and founder of Verifi, a payment management and protection company.

Friendly fraud tends to peak during the first quarter, notes Katz.

Having a good fraud protection system in place before the holiday season is in full swing is ideal.—Matthew Katz, CEO and founder, Verifi

“Unscrupulous consumers claim they never received purchased items, the products weren’t as described online, or they arrived damaged, which results in a refund,” he explains. “These losses put a huge dent in a retailer’s bottom line.”

Friendly fraud is common during the holiday buying season, agrees Jared Ronski, co-founder of MerchACT, which offers merchant payment solutions.

“Customers are making many purchases at once, which opens the door to both accidental and intentional friendly fraud,” he says. “Accidental fraud may occur if a customer didn’t remember placing an order. The person calls the credit card company, which initiates a costly chargeback.”

Identity Fraud

When cyber criminals target your e-commerce site using stolen credit cards, the losses can also be significant.

“We see a fair amount of identity fraud,” says Rene Delgado, founder of  The Bounce House Store. “Thieves steal credit cards and try to make purchases with them. We see an uptick of this type of fraud beginning in November, and it goes all the way through the holiday season.”

There are e-commerce fraud risks associated with stolen identities of real people, as well as synthetic (fictitious and/or manipulated) identities, notes Sutherland.

“Fraud schemes are forever evolving,” she says.

Steps to Help Prevent E-Commerce Fraud

E-commerce fraud may be rising, but there are steps you can take to prevent and minimize online fraud. The key is to manage and mitigate risk with a proactive rather than reactive approach, says Bradley Shaw, CEO of SEO Expert Inc., a digital marketing and e-commerce consulting company.

“Solving the fraud problem requires a multi-layered approach to mitigate the risks,” adds Sutherland. The following measures can help prevent and minimize e-commerce fraud.

1. Use e-commerce fraud protection services.

“Having a good fraud protection system in place before the holiday season is in full swing is ideal,”  says Katz. “Making sure all of your systems, including your chargeback management provider, are up-to-date is a great way to avoid any mishaps in the buying process for online shoppers.”

Delgado agrees on the importance of having fraud prevention and chargeback protection.

“The company we use inspects 100 percent of our transactions and validates that the orders are legitimate and not fraud,” she says. “They also provide peace of mind by offering a chargeback guarantee. If the company approves an order and our business receives a chargeback from a customer, the company covers 100 percent of the costs.”

2. Look for fraud protection that combines artificial and human intelligence.

Whatever fraud protection system you use, it’s a good idea to use one that combines machine learning and human experts to prevent fraud, believes Ronski.

“Any additional insights that merchants can gather to help determine whether to approve or reject an order is always helpful.”

But how do these systems help to reduce e-commerce fraud?

“Fraud protection companies use advanced machine learning techniques combined with human intelligence to analyze tens of millions of transactions to identify patterns of fraudulent behavior,” Shaw explains.

“AI by itself is not enough,” says Brad Wiskirchen, CEO of Kount, which provides solutions for fraud and risk management. “The key is the addition of the human element in order to calculate specific tolerance and risk levels. Such information provides real intelligence for retailers.”

3. Use verification technology.

“Leverage verification processes that look at both the physical and digital components of an identity, identifying the fraud risk associated with the bill-to and ship-to addresses, email address, phone number and even location of the order when submitted,” says Sutherland.

Experts recommend employing an address verification system (AVS) to fight against e-commerce fraud. This verifies the address of the person who claims to own the credit card, which helps ensure that the transaction is valid.

Card verification value (CVV) technology is also advised. This anti-fraud security feature is another layer of protection that can help ensure that the card user is in possession of the card.

4. Take advantage of email authentication.

“Email fraud is a common type of fraud,” says Alexander García-Tobar, CEO and co-founder of ValiMail, an email authentication company. “This includes fake email from a customer or a bogus email that looks like it’s coming from a supplier or bank.

“The most destructive and hardest to detect is a message coming from a fake email address,” Tobar continues. “The only way to avoid this is to use email authentication with DMARC—Domain-based Message Authentication, Reporting and Conformance.”

In addition to protecting you or an employee from clicking on a potentially damaging fake link, email authentication can help protect your domain from being misrepresented.

“When you use email authentication, you ensure that your emails to customers are trusted and don’t get caught in SPAM filters,” says García-Tobar.

5. Identify the origins of transactions.

What sort of device an order is placed on can help you to screen for e-commerce fraud more effectively and accordingly, says Wiskirchen.

“iPhones, iPads, Android devices, etc., all have different fraud profiles,” he explains.

Device assessment is key to fraud prevention, according to Sutherland.

“Device assessment helps merchants detect human versus bot interactions, flag malicious intentions and spotlight anomalies associated with account takeovers,” she explains. “Even when the identity and payment data are valid, the device risks identified may heighten the overall transaction risk.”

6. Ensure software systems are up-to-date.

Make sure you’re running the latest version of your operating system, advises Shaw.

“Updates are continually released with security patches to prevent fraud. Newly discovered vulnerabilities, viruses and malware are a daily threat.”

7. Provide excellent customer service.

A good bet against friendly fraud is having excellent customer service.

“Sometimes customers will attempt to chargeback a purchase simply because a merchant’s return policy is non-existent, hard-to-find or too complicated,” says Ronski. “Having a concise, well-defined return policy advertised on your website is important. It’s also important to offer multiple ways to reach a readily available customer service agent.”

To provide customer service focused on making her customers feel safe and secure while shopping on her site, Delgado has her company phone number at the top of every website page.

“It seems very simple and rudimentary, but we’ve noticed an uptick in consumer confidence just by having the phone number clearly visible at all points in our store,” she says. “We also partnered with a company that provides all of our customers with a shopping guarantee.”

Read more articles on cybersecurity.

Photo: Getty Images
Project Link
Date: OCTOBER 28, 2017
© Julie Bawden-Davis

10 TIPS TO HELP BOOST ONLINE SALES THIS HOLIDAY SEASON

Learn what successful internet retailers are doing to bring in significant business and online sales just in time for the holidays.

OCTOBER 23, 2017

 

With holiday pre-season shopping in full swing, you may want to take a close look at your online sales strategy. With attention to product offerings and customer service and a little “digital elbow grease,” you could see your online sales rise sharply.

This was the case with Dor L Dor. The clothing retailer recently hit $1 million in net online sales after three years of paying attention to the digital details. Dor L Dor started in 2003 with one brick-and-mortar location in lower Manhattan and now has seven stores throughout New York and New Jersey, as well as a thriving online marketplace.

“In this technological time, if you’re not moving forward quickly, you’ll stall,” says Elliot Dejmal, co-owner of Dor L Dor. “Traffic is hard to drive, so it pays to find smart ways to drive it. When you do attract customers, keep them coming back with unique products and excellent customer service.”

With e-commerce eroding brick-and-mortar retail, it’s important for retailers to learn how to effectively compete in the digital marketplace, believes Steve Miley, vice president of client services at innovation agency Tallwave. (The company helps companies build their digital sales.)

“Brands that make the online user experience as easy and smooth as possible and create reasons for customers to return, gain a competitive edge,” Miley says.

Here Dejmal, Miley and other digital retail experts weigh in on how you can help boost your online sales this holiday season.

1. Partner with others to drive online sales traffic.

“Piggyback with partners that can help you scale quickly,” suggests Dejmal. His company partnered with Shoptiques, an online marketplace for women’s clothing and home décor that was founded by CEO Olga Vidisheva. It now serves as a platform for shops throughout the world.

“Shoptiques hosts our online website, handles logistics and ensures we’re utilizing all of the new technologies,” says Dejmal. “With such synergistic relationships, you can potentially create a never-ending wheel of innovation that continues to drive business your way.”

Regardless of your differentiator, know the one thing that makes you different and be excellent at that one thing.—Elliot Dejmal, co-owner, Dor L Dor

“Small retailers spending the majority of their time in-store don’t usually have the capabilities or staff to focus on innovating their digital experience,” says Vidisheva. “Make it easier to discover new products and build customer relationships by finding partners to help [with logistics] like negotiating with shipping providers, finding the fastest way to ship product internationally and optimizing the checkout flow.”

2. Make offering superior customer service paramount.

“Always remember that customers choose to shop with you, so it’s important to do everything possible to keep them returning,” says Dejmal. “Each customer interaction is bound to be different. Whatever you do, it’s important that customers leave the interaction feeling better.”

According to Dejmal, Dor L Dor goes above and beyond for customers. “We always accept late return requests or re-order for customers if they reach out,” he says. “And we ship orders out the same day. Quick shipping is the new normal. Your business will suffer if you aren’t able to deliver that to customers.”

3. Ensure a seamless mobile experience.

When developing your e-commerce strategy, consider focusing on developing an effective, safe m-commerce platform, suggests Matthew Katz, CEO and founder of Verifi, a payment management and protection company.

“The younger, tech-savvy generations continue to look for and expect frictionless, easy ways to conduct purchases via mobile,” Katz says.

Mobile is a fast-growing channel that’s here to stay, agrees Monica Eaton-Cardone, an e-commerce expert who has co-founded a number of companies.

“Aim for a seamless online experience,” Eaton-Cardone says. “A non-responsive mobile website can cause shopping cart abandonment to skyrocket.”

Customers also expect to easily move between various channels, adds Eaton-Cardone.

“Make cross-channel interaction as simple as possible,” she says. “Failing to do so is no different than putting barriers in front of a physical store to stop customers from entering.”

4. Personalize the online sales experience for your customers.

Brands can’t rely on customer loyalty like they used to, believes Eaton-Cardone.

“Customers return to the merchants that offer a personalized experience,” she says. “They want to see the kinds of products they typically shop for, as well as new recommendations based on their history.”

5. Incorporate discovery shopping on your website.

Consider using discovery shopping as part of your holiday sales strategy, suggests Andrew Blachman, COO of Tophatter, a mobile marketplace where shoppers compete in 90-second auctions.

“Many customers don’t know exactly what they want and are looking for inspiration,” says Blachman. “We’ve seen this on Tophatter, where more than 90 percent of the three million purchases each month are ‘discovered,’ meaning there’s no search query before a purchase. The experience is more like a treasure hunt.”

6. Supplement your online sales with engaging content.

Consider adding interesting content to your website. The content can be designed to attract customers and sell them on your products.

“Increase online sales by publishing articles and videos featuring the best gifts in different categories,” suggests Eaton-Cardone. “For example, best gifts under $50, best gifts for techies and best gifts for teens. Also consider informative content that takes a subtler sales approach, such as history lessons, how-to guides and project or craft ideas.”

7. Continually offer your customers new products.

Customers are constantly searching for something new, so Dor L Dor adds new products daily.

“To come up with ideas for new items, listen to your customers, employees and your instincts,” says Dejmal. “And be willing to test new products. Remember that you just need one or two winners to pay for 10 mistakes.”

Adding new products daily can help inspire customers to return on a regular basis, which will increase online sales, believes Vidisheva.

“Customers learn that there’s something new to discover on your site everyday,” she says. “I suggest allocating a few minutes each morning to add five products to your e-store.”

8. Compete with your bigger competitors.

Given that Amazon is likely your number one competitor; it pays to ask yourself why a customer would buy something on your site rather than the online retail giant.

“It could be that you’re selling unique products simply not available on Amazon, as is the case with Dor L Dor,” says Dejmal. “Maybe you have differentiated pricing through a competitive advantage, or your brand and point of view sets you apart. Regardless of your differentiator, know the one thing that makes you different and be excellent at that one thing.”

9. Reorder quickly

Dejmal has found online sales success by initially buying small quantities of products and seeing which ones hit success quickly.

“If a product sells fast on the first day, I immediately place a re-order to fulfill all the demand I can,” he says.

10. Keep at it.

“It might sound cliché, but this is important to remember above all else,” says Dejmal, in the wake of reaching $1 million in online sales. “Keep trying until you succeed. If you have that mentality, there’s nothing to stop you or your business from coming out on top. Retail is a never-ending process that you can always keep improving.”

Read more articles on e-commerce.

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5 NEW CYBERSECURITY TOOLS FOR BUSINESSES

This National Cyber Security Awareness Month, check out the latest cybersecurity technology to help protect your company from an attack.

OCTOBER 13, 2017

 

October is National Cyber Security Awareness Month. While the annual campaign is designed to raise awareness about cybersecurity breaches, as a business owner you’re probably well aware of the growing threat.

The mounting number of company computer and data system breaches illustrates that it’s no longer a question of if your company’s sensitive data will be hacked, but when. Data analytics researcher Juniper Research predicts that data breach costs will reach $2.1 trillion throughout the world by 2019.

“It’s important to realize that your company is at risk, which makes vigilance critical,” says Gary S. Miliefsky, executive producer of Cyber Defense Magazine. “Many owners of small to medium-sized businesses don’t think they’re targets of hackers or cybercrime, but the fact is that most breaches are smaller now. To stay under the radar of the FBI and Secret Service, cyber criminals steal a small number of records, monetize those records and then hit again.”

“This ‘Wild West’ phase of learning to anticipate and work against cyber threats goes deeper than surviving a breach and picking up the pieces afterwards,” says Rob Arnold, founder and CEO of the cyber risk management company Threat Sketch and author of Cybersecurity: A Business Solution.

“History is repeating itself,” Arnold continues. “The future will play out just like it has with the advent of the internet. Businesses that embraced technology at a strategic level left their brick-and-mortar peers in the dust. In the same respect, those companies that learn to effectively manage cybersecurity threats will be the ones that are still in business 25 years from now.”

New Cybersecurity Features

In order to thrive amidst the perpetual threat of cyberattacks, it helps to familiarize yourself with the latest arsenal of cybersecurity prevention tools available. Consider possibly incorporating the following new innovations into your company.

Automatic Classification of Cybersecurity Threats

“The problem in cybersecurity today is not a lack of tools,” says Avi Chesla, CEO of the cybersecurity company empow. “The question is how to ‘read’ the huge amount of data these tools generate and to understand the potential impact, such as a malicious attacker’s intent.”

A hack often starts with a spear-phishing attack where an employee clicks a link or opens an attachment in an email that appears to come from someone they trust.

—Gary S. Miliefsky, executive producer, Cyber Defense Magazine

According to Chesla, there are new cybersecurity capabilities that use Natural Language Processing algorithms. These collect and interpret system information and classify that information by intent. Knowing intent helps companies proactively respond to advanced threats.

Intelligent Cyber Threat Hunting

“With system breaches becoming more common, it’s more important than ever for cybersecurity systems to have the capability to hunt and locate compromised hosts within systems,” says Chesla.

“New intelligent hunters include a technology that can identify host-related anomaly behavior, collect and analyze evidence,” he continues, “such as unexpected processes and applications that run on the host, and create new IOC  [indicator of compromise] signatures accordingly.” Detected IOC signatures indicate the presence of a security breach, such as malware. They are used to create new IOC signature files that are uploaded to scan systems in order to detect additional threats.

New Methods of Handling Vulnerable Data

“One of the biggest revolutions in cybersecurity is the idea that companies can attain the verified data they need without having to hold or manage personally identifiable information (PII) in one place,” says David Thomas, CEO of Evident, a company that offers an Application Programming Interface that eliminates the need to collect, hold and protect personal data.

“Traditionally, any data that a business receives from a customer or employee is held in one potentially vulnerable database,” says Thomas. “This means that if/when a breach occurs, hackers can get everything they want in one fell swoop. Companies are getting smarter about not only clarifying the data they need to ensure safety and security, but also how they need to handle that data to mitigate risk and liability.”

The Use of Behavioral Biometrics

Ensuring identity is a common practice in cybersecurity protocol. Behavioral biometrics is the newest addition to this practice.

“Behavioral biometrics identifies people by how they do what they do, rather than by what they are (e.g., fingerprint, face), what they know (e.g. secret question, password) or what they have (e.g. token, SMS one-time code),” says Frances Zelazny, Vice President of BioCatch, a cybersecurity company offering behavioral biometrics to banks and other businesses.

“The behavioral biometrics technology measures and analyzes patterns in human activities,” continues Zelazny. “Historically, these included keystroke patterns, gait and signature. Today’s advanced behavioral biometric techniques capture an array of human interactions between a device and an application, such as hand-eye coordination, pressure, hand tremors, navigation, scrolling and other finger movements.”

Employee Cyber Readiness Training Portals

Many breaches occur through email, which makes it important to train employees about spear-phishing attacks, believes Miliefsky.

“A hack often starts with a spear-phishing attack where an employee clicks a link or opens an attachment in an email that appears to come from someone they trust,” he says. “Spear phishing is becoming so sophisticated that even the best anti-phishing systems have not been able to detect the latest threats.”

As a preventative, some companies are using test phish templates and instructional content to familiarize employees with social engineering attacks, notes Mike Fumai, president and COO of AppGuard LLC, which provides anti-virus protection. “This instruction greatly reduces exposure to cyber threats, as long as the instruction is given often and individualized for each employee.”

Stay Ahead of the Trends

For long-term success, it’s a good idea if someone in the company is dedicated to continually tracking and understanding new cyber threats and solutions, believes Antwanye Ford, president and CEO of the cybersecurity company Enlightened.

“Subscribe to cyber information portals such as US-CERT, ICS-CERT and DHS,” says Ford. “Many universities also have information centers specializing in research and development and executive level education regarding cyber threats.”

Appointing an in-house Chief Information Security Officer (CISO) is a good idea, agrees Eric Biderman, counsel for law firm Arent Fox LLP.

“Such an individual can engage in penetration testing on a regular basis to pinpoint vulnerabilities and solutions,” he says.

Read more articles on cybersecurity.

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Date: OCTOBER 13, 2017
© Julie Bawden-Davis

THIS CUSTOMER SERVICE WEEK, THINK ABOUT INSTILLING THIS VALUE IN YOUR EMPLOYEES

Company owners weigh in on how to impress upon employees the value of customer service during Customer Service Week and beyond.

OCTOBER 06, 2017

 

As Customer Service Week

(October 2 to 6) comes to a close, it’s a great time to reflect on the importance of customer service. Business owners across the nation are well aware of how critical good service is to company survival. For many businesses, how customers are treated is top priority.

“In today’s competitive business environment, customer experience is everything,” says Clate Mask, CEO of Infusionsoft, which makes automation software. “Quick, friendly service is expected and your most powerful tool in boosting organic, word-of-mouth marketing.”

Micah Solomon, author of The Heart of Hospitality, agrees.

“Customer service is the new marketing,” says the customer service consultant, trainer and speaker. “For brand fans it’s easier than ever to spread the word about your company. What I call ‘word of thumb’ is very powerful today.”

As a business owner, you know full well the importance of good customer service. But how well do your employees understand this golden rule? Since your workers are often on the front lines, it’s important that they buy in to the importance of providing excellent customer service.

Learn how the following company owners instill the necessity of superior customer service into their employees.

Serve by Example

If employees are to take customer service seriously, it’s a good idea if leadership demonstrates how vital it is to have satisfied customers.

“If the leadership team lives and breathes customer happiness, employees will do the same,” says Jon Beekman, founder and CEO of Man Crates, which carries gifts tailored to men.

“Great customer service is contagious,” adds Tawanda Johnson, president of RKL Resources, a national human resources consulting firm. “It’s important for managers and executives to lead by example and provide excellent customer service.”

Develop Clear Customer Service Protocols

If your employees are going to deliver excellent customer service, it’s important that they know the required steps.

Express genuine appreciation to all employees for their parts in creating strong and loyal customer relationships. What happens on the inside of a company eventually shows up on the outside.

—Marilyn Suttle, CEO, Suttle Enterprises

“Develop protocols and policies that employees can use to assist customers when situations arise,” suggests Susan Unes, founder and president of Lotus Tree Massage & Wellness, which offers massage therapy, energy work and yoga instruction.

When relaying protocols to employees, Unes finds it helpful to role play. “Employees and management can learn from one another by sharing real life examples from the trenches,” she says. “These stories are the most effective teaching tools for anyone who handles customer service.”

Empower Employees

Those employees who have the necessary direction and a green light from leadership to use their judgment tend to provide great customer service.

At Man Crates, Beekman says the company empowers employees to make their own decisions when it comes to customer service. “We don’t have a rule book or guidebook for our customer service team,” he says. “Instead, we’ve given them free reign to do whatever it takes to make customers happy.”

Human resources expert and consultant Laura MacLeod, who runs From The Inside Out Project, believes that employees are best served when encouraged to build relationships with customers. “Too often scripted customer service responses are taught to employees, but that doesn’t allow them to be unique,” says MacLeod. “Encourage employees in customer service roles to use humor and express their interests and personality.”

Craig Malloy, CEO of Lifesize, a video and web conferencing company, makes it clear to his employees that the customer always comes first, and that employees will never be penalized for abiding by this rule.

“We adhere to the following ladder of priorities: Help your customer, help your coworker, do your job. This reminds our support team to always put the customer first and reassures them that they’ll never be reprimanded for helping customers,” says Malloy. “The next priority is helping your coworkers, because by doing that you’re most likely also helping customers.”

Use Empathy to Enlighten During Customer Service Week and Beyond

One of the most effective ways to teach employees about the importance of good customer service is to encourage empathy, believes Sotereas (Teris) Pantazes, CEO and founder of the home improvement platform EFynch.com.

Pantazes used to own a solar construction company. “I would ask my employees to put themselves in the shoes of our customers and to think about how we’d be going into their homes and onto their roofs,” he says. Pantazes finds that doing this humanizes the customer and makes employees relate to them in a more helpful manner.

At Emocha, a mobile health company focused on medication adherence, they go so far as to create circumstances that allow employees to have a customer experience. “We believe it’s more impactful for our employees to experience customer needs,” says the company’s CEO, Sebastian Seiguer. “We’ve sent designers and engineers into the field in locations such as Puerto Rico. They return with an understanding of the impact our product can have on real people.”

Analogy and empathy go a long way toward impressing on employees the importance of customer service, adds Mark Goulston, CEO of the Goulston Group, a management and business advisory company, and author of Just Listen: Discover the Secret of Getting Through to Absolutely Anyone.

Goulston suggests using the power of analogy by having employees share stories when they’ve been frustrated and disappointed from receiving poor customer service and then stories about receiving excellent customer service.

Reward Employees for Superior Customer Service

When they’re rewarded for a customer service job well done, employees are likely to see the value of making clients top priority.

“I recommend rewarding employees for handling customer issues from start to finish,” says Matt Leuschner, managing director at Gopher Leads, which helps companies accelerate sales through referrals. “We’ll thank employees by giving them a reward like a gift card to their favorite restaurants.”

Marilyn Suttle, CEO of Suttle Enterprises LLC, a customer focus and communication training company, agrees. “Your employees are your internal customers. Appreciate them. Gather for a “thank you” celebration. Express genuine appreciation to all employees for their parts in creating strong and loyal customer relationships. What happens on the inside of a company eventually shows up on the outside.”

Read more articles on customer relations.

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Date: OCTOBER 06, 2017
© Julie Bawden-Davis

A CONVENIENT ALTERNATIVE TO HIRING TEMPS THIS HOLIDAY SEASON

Thinking about your holiday season staffing game plan? Rather than opting for temporary help, consider drawing from your employee base.

OCTOBER 05, 2017

 

With fourth quarter sales just about here, businesses across the country are making plans for the holiday season. This year Walmart decided to take a different approach to holiday season staffing. The retailer will give existing employees more hours.

Having employees work longer hours during the holidays rather than hiring temps is a tactic many business owners know from experience can work well.

“We’ve always gone the route of expanding holiday hours for our employees,” says Ricky Klein, founder and head meadmaker for Groennfell Meadery in Colchester, Vermont. “Everyone wants to give their employees a bonus around the holidays. We decided to give employees flexible overtime hours and let them decide what they want to earn.”

For Groennfell Meadery, having employees work more hours is ideal. The company has a tasting room and restaurant that hosts numerous events throughout the holidays.

“The craft mead we make is unique and extremely rare. It’s almost impossible to train temps to sell the product accurately,” Klein explains.

Christopher West is owner of Mailing Pros Inc., a full-service mail house. West experiences a substantial uptick in business around election seasons, which sometimes fall during the holidays. He also finds that giving his employees the extra hours works best for everyone.

“Our employees work long days and weeks during elections,” says West. “The work involves running specialized machinery and specific handwork, which would be difficult to train people to do. At the same time, employees also know that the better the company does during election season, the more their holiday bonuses.”

Tips for Using Your Current Team for Holiday Season Staffing

Offering your employees additional holiday hours may benefit the company, employees and customers. To effectively determine and schedule hours during holiday season staffing, keep the following tips in mind.

1. Forecast required manpower hours.

Consider calculating how many extra hours of work will be required to fulfill holiday demand. Checking data from prior year’s sales and hours can help you determine by what percentage you need to increase hours. This figure can also let you know if your employees will be able to fulfill the required hours.

We let employees design the various events we hold during the holidays. Doing this shows them how important they are to the company’s success.

—Ricky Klein, founder, Groennfell Meadery

“We sit down in the fall and decide how much extra work we can possibly take on during the holidays,” says Klein. “Then we cushion this estimate with a few more hours.”

2. Check financial feasibility.

Look at current overtime regulations and ensure that having existing employees work is financially viable. You may find that hiring temporary workers costs you less money. Remember to factor into the equation time for training and the inevitable learning curve.

3. Ask about availability.

When doing your holiday season staffing, avoid assuming that employees will be open to additional holiday hours.

Consider meeting with your staff to communicate your desire to give them first dibs at additional holiday hours. Be available to answer any questions about how holiday hours will be allocated.

4. Provide additional responsibility.

More hours and the demands of the holidays may require that you give employees their own projects to oversee.

“We let employees design the various events we hold during the holidays,” says Klein. “Doing this shows them how important they are to the company’s success. This leads to buy-in, which makes them excited about making their events successful.”

5. Watch for burnout.

Occasionally, West will send an employee home if they’re showing signs of burnout.

“If someone is pooped and starts making big mistakes, I’ll send him or her home,” he says. “Another employee will pick up the slack. It’s very much a team effort here.”

When to Hire Outside Help for the Holidays

At times, it may be necessary to hire outside help to get your company through the holidays. At Mattone Restaurant in the suburbs of Chicago, they balance giving current employees more hours with the addition of short-term staff, according to Franco Francese, the restaurant’s president.

“I feel it’s a good idea to tread lightly when it comes to potentially overworking your current employee base. Some employees may want and need the extra hours, but it’s not for everyone,” says Francese.

If your existing employees aren’t able to fill in all of the gaps in holiday season staffing, you may want to consider hiring temporary workers. Consider these tips for doing so.

1. Look “at home” for holiday help.

You may be able to find a great pool of workers by simply asking your employees.

“Start by asking current employees if they know people who would like to work during the holidays,” says Francese. “Doing this has the added perk of starting positive discussions about your company.”

2. Employ customers.

On the handful of occasions that Klein has pulled in outside help for the holidays, he reached out to clientele.

“It has served us very well to hire regular customers,” he says. “They already have an understanding of the brand and know what we stand for. An added bonus is that they think it’s the coolest thing to work for their favorite brewery.”

3. Provide adequate training.

Proper and thorough training is vital, believes Francese.

“At the restaurant, we don’t change our training methods for seasonal/temporary workers,” he says. “We expect hires to perform as any permanent employee would.”

4. Be clear about expectations.

“Once the temporary employee is brought on during holiday season staffing, it’s important to lay out very clear and measurable expectations,” says Karson Humiston, CEO of the staffing agency, Vangst Talent Network. “It’s also important to remain involved in managing those expectations to ensure the temporary employee is meeting them. If that isn’t the case and you’re using a temporary agency, ask for a replacement.”

5. Look for potential permanent employees.

“If a temporary employee turns out to be an excellent fit, you can always bring the person on full time,” says Humiston.

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Date: OCTOBER 05, 2017
© Julie Bawden-Davis

9 LINKEDIN HACKS THAT MAY HELP BOOST SALES

LinkedIn is one of the most powerful networking resources small-business owners are not using. Start today with these 9 tips. SEPTEMBER 26, 2017
Many small-business owners don’t realize how powerful LinkedIn is as a networking tool, says social media expert and LinkedIn evangelist Karen Yankovich. “Small-business owners are finding many benefits to connecting on the site. It provides an appropriate way to keep contacts warm in a professional, unobtrusive and authentic way,” she says. Your LinkedIn profile is being seen by people even if you’re ignoring it. “Your profile is the front door to your world. When people want to find out more about you, they’ll do so through your LinkedIn profile, because the site is ranked high by Google search algorithms. This provides a huge opportunity to make sure potential customers know exactly what you want them to know about you,” Yankovich says. No matter what your industry, LinkedIn, which has more than 500 million users worldwide, has become today’s business card. Want to start making LinkedIn’s networking power work for you?

1. Claim your expert status in your headline.

“LinkedIn gives you an ideal opportunity to highlight your areas of specialization with your headline,” says Yankovich, who notes that the headline is searchable by Google, so having your specialties clearly stated in your headline is critical.

2. Make your profile professional.

Include a business-like headshot of yourself, your email address, website or blog address and your Twitter handle. Claim your personalized URL with LinkedIn rather than the URL they assign you, if it’s available. And be thorough in your summary of your skills and expertise.
Your profile is the front door to your world.—Karen Yankovich, social media expert

3. Make yourself searchable.

Sprinkle keywords throughout your profile regarding your areas of expertise, which will cause you to appear in online searches. If you specialize in tax law, make sure to use that and similar terms throughout your profile.

4. Build up your connections.

Unless you have a bad vibe about someone, Yankovich suggests accepting all invitations and sending them out on a regular basis. “The more connections you have, the greater the power of your network,” she says. “Your first degree connections have their own connections. It’s often in these second degree connections that you find valuable contacts.”

5. Ask for recommendations.

Recommendations on your LinkedIn page are like “social proof on steroids,” says Yankovich. “Giving and getting recommendations on the site is a great way to build up the trust factor between yourself and your connections and anyone who looks at your page. If someone praises your work, ask the person to write you a recommendation. Many people are happy to do so.” Recommendations are not be confused with endorsements, which are also a useful feature on the site.

6. Reach out to contacts.

On a regular basis, Yankovich emails about 20 of her LinkedIn contacts by sending a thank you for connecting and offers herself as a resource. “Seven out of 10 times, they’ll reply to me and sometimes it will result in a phone call to see how we might help one another,” she says.

7. Add media.

Take advantage of the opportunity to share media on your profile page, such as blog posts, articles, web pages and video, including YouTube tutorials or promotional videos.

8. Set up a company page.

“Personal profiles establish you as the expert, and company pages are where you can showcase all of your products and services,” Yankovich says. Include on the page a blurb about your company, as well as articles and photos.

9. Take advantage of groups.

A wide variety of groups exist on the site, offering you the opportunity to connect with like-minded individuals and forge valuable partnerships. Yankovich suggests active groups with 200 to 1,000 members. Look for groups where people are asking and answering questions and offering feedback about the topic. A version of this article was originally published on December 23, 2013.
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Date: SEPTEMBER 26, 2017
© Julie Bawden-Davis

ONLINE RETURN POLICIES: TIPS FOR HANDLING AND AVOIDING RETURNED MERCHANDISE

Holiday shopping is on the horizon, and a rise in returns is likely. These online return policy tips may help you manage returns (and prevent them).

SEPTEMBER 22, 2017

 

While there are a lot of perks to operating a virtual storefront, you can’t escape returns. With the holiday shopping season fast approaching, you might want to check your online return policies.

The National Retail Federation’s 2015 Consumer Returns in the Retail Industry

study polled 62 retail companies. According to the study, total merchandise returns accounted for more than $260.5 billion in lost sales for U.S. retailers. The amount of online returns rose by 2 percent during holiday shopping.

Online Returns Costs

Michael Lewis, CEO of retail data company RetailGo, notes that returns cost more to a retailer than just the value of the merchandise.

“There’s an opportunity cost, [a] shipping, packaging and operational cost,” Lewis says. “So $260 billion in lost sales is likely $500 billion after factoring in the entire cost of doing business.”

According to Mark Astelstine, founder of wine club company Uncorked Ventures, online return policies are always a “hot topic” at his company.

“Returns are more common than anyone cares to admit,” he says. “We end up getting about 2 percent of our shipments back, often due to no fault of our own.”

Astelstine’s company can’t resell the wine that’s returned, and since shipping charges represent 25 percent of order totals, he ends up paying that fee twice.

Online Return Policies Often Feature Free Shipping

In today’s quickly changing retail landscape, online return policies often include free return shipping.

“Amazon has literally changed how people think of online purchases,” says Astelstine. “It’s important to keep track of how quickly Amazon is shipping goods and how they communicate. That’s going to be the expectation moving forward when Amazon controls almost half of online sales.”

The best way to avoid returns is to make your pictures and descriptions as accurate and informative as possible.

—Chris Gronkowski, CEO, Ice Shaker

Lisa Chu, CEO of Black n Bianco, a children’s clothing online retailer, agrees.

“Amazon return policies have changed the dynamics of the e-commerce industry,” Chu says. “In order to stay competitive, a lot of e-commerce sites now offer free shipping and free returns. Thirty day return policies are the norm, as long as the product hasn’t been used or damaged.”

Chu has found that occasionally customers return used and damaged merchandise anyway, which further eats into profits.

“Many businesses will accept the returns and offer refunds, because doing so is better than negative reviews, or worse, chargebacks,” she says.

Risk of Chargebacks

“As bad as returns are, they’re still preferable to chargebacks,” agrees Monica Eaton-Cardone, co-founder and COO of the risk mitigation firm Chargebacks911. “If this happens, you still lose the sales profits, interchange and shipping fees, as well as pay chargeback processing fees. It’s unlikely you’ll get your merchandise back. Worst of all, excessive chargebacks can result in your merchant account being canceled.”

Though many online retailers offer free return shipping as part of their online return policies, it’s still also common to charge for return service, adds Scott Zakrajsek, managing partner at the digital marketing and e-commerce agency, Sproutward.

“Many retailers have online return policies that include a flat-rate return fee or a restocking fee, usually a percentage, especially for large or bulky items,” says Zakrajsek. “They’ll often waive this charge if customers choose to exchange items for other products.”

Tips for Effectively Handing Online Returns

You can help mitigate the negative effects of online returns by ensuring that the return process goes as smoothly as possible.

“Consider automating your return process,” says Zakrajsek. “Customers want the ability to complete a return painlessly. They should be able to access their order, process the return and print the shipping label immediately. This is a win-win for online retailers, as return costs can be greatly reduced through automation and not involving customer service agents. There are many third-party companies that help retailers with this.”

An easy return policy can lead to a positive experience, adds Chu.

“Make it simple,”  she says. “If the return process is a huge hassle, consumers won’t return to shop on your website.”

If you do end up on the phone with customers, finding out reasons for returns may help you sway them toward other purchases and help prevent future returns.

“We handle returns delicately with a ‘no-questions-asked’ attitude, but try to get as much information as possible,” says Edward Hartley, managing director and co-founder of the online art dealer, Bluethumb. “Most buyers will happily offer information, and you can use this to help secure [a replacement] sale.”

Chris Gronkowski, CEO of water bottle and  protein shaker cup purveyor Ice Shaker, contacts customers to find out why they’re returning his product.

“I deal with returns by offering reasonable solutions,” he says. “If there’s a small issue with the product, I can usually find a better solution or offer a credit for a future purchase.”

6 Steps to Help Avoid Online Returns

Of course, preventing online returns in the first place is ideal. To help cut down on returns, consider trying the following tactics.

Make online return policies easy to locate and crystal clear. “Transparency regarding your return policy is key,” says Zakrajsek. “Include what is covered, for example, [the policy] excludes clearance and final sale items. Also indicate for how many days a return is eligible, and potential costs.”

Accurately represent your products. “The best way to avoid returns is to make your pictures and descriptions as accurate and informative as possible. Display every angle possible in the product images and videos,” says Gronkowski. “You want customers to feel like they’re holding the product in their hands.”

Lewis suggests also adding reviews, proper sizing charts and colors, weights and measurements. “When a shopper understands exactly what to expect, this reduces the incidence of surprise and disappointment,” he says.

Ship quickly. “Many customers buy items as gifts online, and if the items are received too late, they’re returned,” says Zakrajsek.

Expedient shipping is especially important for the first couple of orders, adds Aselstine. “After that, the pressure seems to abate.”

Provide excellent customer service. “Try to provide live, round-the-clock assistance by phone, email and social media with trained staff ready to address customers’ concerns,” says Eaton-Cardone. “In many cases, you may be able to prevent a return by simply communicating with a customer.”

Provide brick-and-mortar location returns. If you have a physical retail space, consider providing hassle-free returns there, suggests Lewis. “Foot traffic leads to sales. In many cases, shoppers will replace unwanted items with something else.”

Collect feedback about why returns occur. “Use the data to influence future manufacturing and merchandising decisions,” says Zakrajsek.

Read more articles on e-commerce.

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Date: SEPTEMBER 22, 2017
© Julie Bawden-Davis

IS YOUR BUSINESS EXPERIENCING WEATHER-RELATED SHIPPING PROBLEMS?

In the wake of extensive hurricane damage, companies across the U.S. are experiencing shipping problems. Try these steps to help safeguard your business.

SEPTEMBER 14, 2017

 

In addition to wreaking havoc on those living in the affected areas, recent hurricanes have created a domino effect for companies. Weather-related shipping problems have slowed down business nationwide.

“When it comes to natural disasters and the impact on shipping and business, the back-to-back nature and power of the two recent storms—Irma and Harvey—are like nothing we’ve seen in the past century,” believes Tim Story, executive vice president of freight operations for Unishippers. The company is a third-party logistics company that services thousands of small- to medium-sized businesses nationwide.

“The storms have resulted in a severely damaged transport infrastructure,” Story says. “That includes bridges, rail lines and roads across Florida, Georgia and [Texas]. But the impact is not limited to those areas. Every state is experiencing the results of delays and backlogs.”

With brick-and-mortar retail closures at an all-time high, it’s already a challenging time for businesses, according to Marc Gorlin, founder and CEO of Roadie, an app-based service that features “on-the-way” delivery that enables businesses to use vacant space in passenger vehicles to transport products.

Assure your customers that you’re working hard to resume business as usual.

—Marc Gorlin, CEO, Roadie

“Retailers are desperate to compete in an environment where margins are already razor-thin and customers have come to expect free same-day and next-day shipping and delivery,” says Gorlin. “Obviously, devastating events such as Hurricanes Harvey and Irma add to that stress. Stalls, lost shipments and blocked shipping routes cause a ripple effect that impacts every part of a business.”

Tips for Dealing with Shipping Problems

Whether shipping delays have affected your business directly or indirectly, your bottom line can suffer. Consider trying these four tips for dealing with shipping challenges now and in the future.

1. Communicate with your customers.

“What customers and vendors crave most during uncertain times is frequent communication to manage expectations, address uncertainties and quell anxieties about your ability to do business,” says Gorlin. “Assure your customers you’re being proactive in not only working to get your traditional shipping lanes back into full effect, but that you’re also arranging alternative delivery options to get items out as efficiently as possible.”

2. Have shipping backup plans.

Alternative methods of getting products to customers and receiving supplies may keep you from losing business.

Backup plans are critical, believes Erik Morton, vice president of strategy and corporate development at CommerceHub , which promotes products and provides drop shipment services. “It’s good for the shipper to have a battle-tested business continuity plan. This can include having inventory geographically distributed to multiple fulfillment partners in different parts of the country. This allows the seller to keep shipping from other locations when one of their partners has a disruption caused by a natural disaster.”

Businesses that use a third party logistics partners have an edge, agrees Story. “Such businesses have access to a larger segment of various types of carriers, including airlift, ocean, rail, truck and small package. If businesses contract with one carrier, when that carrier is affected, they’re stuck.”

3. Consider weather-related insurance.

Shipping carriers aren’t liable for damaged or lost shipments when factors outside of their control occur, such as natural weather disasters, according to Story. “A carrier can take every step possible to minimize any future issues, such as not sending shipments into the affected areas, but items lost or damaged as a result of the storms are not covered.”

Given the fact that losses can be catastrophic for a business, Story suggests that businesses look into getting insurance that covers weather-related damages.

4. Be patient.

The effects of the recent weather events will have an impact on shipping capacity for quite some time.

“Time sensitive priority shipments, such as food, water and supplies, will take precedence over commercial business,” says Story. “Priority shipments flagged to support disaster recovery efforts will shrink the capacity for non-priority shipments.”

Shipping limitations and the fact that Hurricane Harvey hit Houston oil refineries will also most likely create price increases in shipping, believes Story.

“Rebuilding takes time, and that’s something you want to relay to your customers,” adds Gorlin. “Assure your customers that you’re working hard to resume business as usual.”

Read more articles on customer relations.

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Date: SEPTEMBER 14, 2017
© Julie Bawden-Davis

EMPLOYEE PRIVACY IN THE WORKPLACE: WHAT TO CONSIDER

U.S. employers have the right to monitor employees on company devices, sparking employee privacy concerns. Here’s how you can navigate this tricky space.

SEPTEMBER 11, 2017

 

Rapidly evolving technology has given employers the ability to remotely track employee productivity. On the surface, this seems like a boon for businesses. But monitoring worker progress via emails and tracking apps brings up issues of employee privacy.

The European Court of Human Rights recently overturned a ruling that had given employers in Europe unrestricted access to employee emails and other workplace communications.

The decision has prompted debate about American workplace privacy laws that currently grant U.S. employers the ability to monitor all communication performed on company property, including emails and phone calls.

“Technology has greatly increased the ability to monitor employees, as well as brought awareness to legal and ethical considerations that surround employee privacy,” says Carisa Miklusak, CEO of tilr, which matches qualified workers with employers.

This new hyper-connected reality has also raised new questions about the divide between the personal and professional lives of employees, believes Miklusak.

“For example,” she asks, “is it appropriate to monitor someone’s personal Facebook page when making a hiring decision? And is it acceptable to double check your employee’s stated check-in time at the beginning of a workday with GPS monitoring?”

Legal Versus Ethical

The rights of employees when it comes to workplace privacy aren’t a cut-and-dry issue.

It may be legal to track certain activities, but is it always a good idea? How does an employer strike a balance between employee productivity and employee privacy?

It’s up to your company policy to clearly state how and what you’ll monitor.

—Carissa Miklusak, CEO, tilr

As Miklusak sees it, there are two issues at play when it comes to employee monitoring—what is legal and what is ethical.

“The issue of employee privacy trickles into every aspect of business and is something that is becoming more important to consider,” she says. “For company leaders in today’s technological landscape, finding the right balance regarding monitoring employees is an art, not a science. It takes balancing what is legal or allowed with what is ethical, based on the values governing your specific organization.”

To decide what is right for your company, Miklusak suggests answering these two questions:

1. Will employee monitoring produce data that can be used to drive needed results?

“Avoid monitoring just to monitor,” suggests Miklusak. You may want to ask yourself what your objectives are for monitoring. For instance, do you seek specific metrics that will help you determine if work processes at your company are expedient?

2. Will your company culture support this type of monitoring?

“Monitoring should drive positive, not negative results,” says Miklusak. “Cultural acceptance and adoption is a core consideration. It’s of no use to monitor if the very nature of that monitoring drives down productivity. Ensuring that your team or company understands the reasons for monitoring and the potential positive outcomes are core to its success.”

Employee Privacy and Transparency

Often, employee dissatisfaction regarding perceived privacy violations comes when they feel blindsided about being monitored. Employers who aren’t transparent about monitoring may experience employee backlash.

“Almost everything that upsets us in life can be boiled down to created or perceived expectation, and that expectation not being met,” says Phil Shawe, CEO and co-founder of TransPerfect, which provides language services and technology solutions to global businesses.

“For employers, managing expectations is key,” continues Shawe. “If employees believe they have an expectation of privacy, but don’t get that privacy and are instead monitored, these mismatched expectations can lead to problems, and that’s bad for business.”

In order to create expectations that jive with reality in the workplace, Shawe recommends being clear and communicative about company policies when it comes to employee privacy and electronic devices.

Keeping It Personal

In addition to clearly stating how and when employees will be monitored in the employee handbook, Shawe recommends a separate notice regarding the policy that should be read and signed by all employees. Doing so can help ensure everyone is on the same page in regards to employee privacy.

“Make it clear that employees shouldn’t have expectations of privacy for anything they do on a company-owned network, computer or device,” says Shawe. “If employees wish to keep communication private, they should use personal devices for their personal communication.”

The use of personal devices rather than company ones can be an important distinction.

“TransPerfect has a division that performs eDiscovery and forensic investigations,” explains Shawe. “Any data resting on company devices, including fragments from using web-based email systems, such as Gmail, may be accessible.”

Full disclosure and cautionary advice is advisable, agrees Miklusak.

“As technological monitoring is a growing trend, laws and regulations are also evolving,” she says. “It’s up to your company policy to clearly state how and what you’ll monitor.”

Read more articles on hiring & HR.

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Date: SEPTEMBER 11, 2017
© Julie Bawden-Davis

FUTURE-PROOF YOUR BUSINESS IN THE WAKE OF A NATURAL DISASTER

Keeping your business going after an extreme weather event is not easy, but these tips can help your company’s chances of longevity after the storm passes.

AUGUST 31, 2017

 

Although Misty Starks’ Houston-based companies, 3B Resources Group Public Relations and Misty Blue Media, serve clients nationally, many of her customers have been affected by Hurricane Harvey.

“Each of my companies are business-to-business, so when my customer’s companies are interrupted, so are mine,” says Starks, who had to evacuate her home office during the hurricane.

“Since the hurricane hit, I’ve been proactive in communicating with my clients in order to manage expectations and address any uncertainties,” she says. “This storm has highlighted vulnerabilities in my businesses, and I’m grateful for that. When it’s all said and done, I’ll be a better business woman on the other side.”

Five years on the other side of Hurricane Sandy that hit New York City in October 2012, Lynne Lambert agrees that it’s possible to future-proof your business after a natural disaster.

“My company survived losing more than half of our inventory in Hurricane Sandy,” says the owner of NYC Subway Line, a clothing and apparel line featuring NYC imagery. “The public warehouse we used to store our merchandise was just feet from the Gowanus Canal. With no heat or electricity in the warehouse, my husband, son and I waded through toxic water to salvage what had not been damaged by the storm and resulting flooding.”

Natural Disasters Can Negatively Affect Any Business

According to FEMA, almost 40 percent of small businesses never reopen their doors following a disaster. Much of this has to do with the fact that many businesses are already vulnerable, believes Michelle Pippin, founder of Women Who WOW, a national and international association of women entrepreneurs. She is also located in hurricane territory on the East Coast.

Don’t forget that your employees are also going through a lot. Be sensitive to their needs beyond your business, and offer help where possible.

—Misty Starks, owner, Misty Blue Media

“Many small businesses are operating on razor-thin profit margins,” says Pippin. “When you throw in a natural disaster, like what Texas just experienced, you’ve got a problem that crosses all industry lines. Retail establishments see disappointing sales numbers and specialists face canceled appointments.”

5 Steps to Future-Proof Your Business

With some quick thinking and action following an extreme weather event, you can minimize the effects to your company. Help future-proof your business—and avoid becoming a statistic by keeping the following five post-natural disaster tips in mind.

1. Ensure that documents and key information are backed up.

“Future-proof your business by making sure your important files are saved to the cloud so they can be accessed from anywhere,” says Starks. “In an evacuation situation, you may not have your business computer at your disposal. Having important information in the cloud allows for business continuity.”

If you choose not to use cloud storage, ensure that copies of your important documentation are stored offsite, agrees Robin Lee Allen, managing partner for Esperance Private Equity, an investment fund manager specializing in private equity transactions. “Keep copies of legal and financial documents in an off-site safe deposit box or vault. Redundancy in record keeping is better than no records.”

Insurance will help with physical assets, but lost information can destroy years of hard work, agrees Roman Zrazhevskiy, founder and CEO of Ready To Go Survival, a retail brand specializing in personalized emergency preparedness. “If you have sufficient notice and conditions are safe, relocate your most valuable assets to a safe place or higher ground. Renting a truck and a warehouse at a safe location could minimize potential downtime.”

If you don’t have backup files and your data seems to be lost, look into electronic restoration, advises Jay Shelton, senior vice president of executive risk at Assurance, an independent insurance agency in Chicago. “It’s amazing what can be recovered from a hard drive that appears damaged.”

2. Contact your insurance provider ASAP.

“Notify your insurance provider at the first sign of damage,” advises Zrazhevskiy. “Waiting until later puts you at risk of being at the end of the line for a payout.”

Future-proof your business by communicating as soon as possible with your insurance agent and take their direction on how to proceed, agrees Lambert, who had marine insurance to protect her goods when they were on the water from China. “It turns out that insurance policy had a $100,000 in-warehouse component to it, which went a long way to making us whole again. If you’re worried about what insurance reimbursement you may or may not get, hire an independent adjuster.”

Keep good records for the insurance company, advises Starks. “Be sure to document any damage to equipment and your office to turn over to your business insurance agent, and keep track of any interruption of income. Promptly contact your business insurance agent to go over your coverage and to walk through the process of filing a claim.”

3. Check on employees and vendors.

“Immediately after a disaster, the first thing I advise is checking on the people involved in your business,” suggests Lee Allen. “From a business and economic standpoint, human capital is by far the most valuable. Ensuring that your employees are as personally secure as possible allows you to focus on business continuity plans.”

Starks agrees. “Don’t forget that your employees are also going through a lot. Be sensitive to their needs beyond your business, and offer help where possible. Being an understanding boss goes a long way toward employee retention.”

Shelton suggests staying visible and in direct communication with your employees after a natural disaster. “Inform employees of who’s responsible for certain aspects of the business’s recovery and how your leadership team can be reached. If possible, arrange a meeting with employees to review your post-disaster plans. And make sure to allow time for employees to tend to personal affairs.”

In addition, future-proof your business by reassuring customers. “In uncertain times, it’s important to communicate as much as possible with clients in order to alleviate any anxiety about your business’s ability to perform services,” says Starks.

“As soon as possible, reach out to vendors to whom you owe money,” adds Lambert. “Let them know that they will be paid, but ask them to please extend their terms to help you until your business gets back on its feet. If you’ve been a loyal customer and paid on time, this reassurance is likely to be met with a positive and helpful response.”

4. Apply for financial assistance.

While it’s a good idea to apply for financial assistance for your business through the Small Business Administration (SBA) and FEMA, Lambert suggests checking for other opportunities first.

“I got an SBA loan to replace the rest of our inventory not covered by insurance, but I missed out on a grant that would have greatly helped if I’d known about it. Before taking out any loans, see if there are any regional, city, state or federal low or no interest loans or grants available for businesses in your area.”

5. Reach out for help.

Avoid isolating yourself after a natural disaster.

“Contact fellow entrepreneurs if you’re in need,” says Starks. “Have a list of contractors and freelancers in areas outside your immediate city to serve as backup for employees, who are also displaced. Tap into your professional network to put a few people on standby who can be available to help your business, if necessary.”

Most importantly, future-proof your business by giving yourself and your business time. “After a disaster, it takes time to get back to normal,” says Starks. “Give yourself a chance to get back on your feet, and be honest with yourself and your clients about your recovery.”

Photo: Getty Images
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Date: AUGUST 31, 2017
© Julie Bawden-Davis

6 WAYS YOUR BUSINESS CAN CAPITALIZE ON BACK-TO-SCHOOL SEASON

As kids flood back to school, purchasing is in full swing. Try these tips to help make the most of back-to-school season.

AUGUST 30, 2017

 

With kids and young adults all over the nation returning to school and college, now is the time to take advantage of what the National Retail Federation estimates will be $83.6 billion in spending.

“The back-to-school season is the second-largest retail season in North America,” says JB Brokaw, president of the North America division of Sociomantic Labs, a programmatic ad solution that helps marketers reach individual consumers based on real-time and first-party data.

“To capitalize on back-to-school season, the key is to be on top of consumers’ minds throughout the season,” says Brokaw, who notes that the back-to-school season generally runs from June through August, with a spike before Labor Day and some sales through September.

“Fall often feels like a fresh chapter for adults and kids,” adds Todd Grossman, CEO of Talkwalker, a social media analytics platform. “Consumers are looking for bargains, but most accept they’re going to spend some money during this season.”

To help you determine where you might want to focus your last-minute marketing efforts to take advantage of back-to-school shopping, consider the following pointers.

1. Broaden your vision of back-to-school season.

“Back-to-school season is more than backpacks and binders,” says Brokaw. “Many brands can now capitalize on the season, including electronics companies—kids are using smartphones, tablets and laptops at a younger age—and grocers, who see sales from the college-bound.”

Rhonda Allison, founder and CEO of Rhonda Allison Cosmeceuticals, agrees.

“Identify how your service or product could benefit customers at this time of year,” she says. “We provide aesthetic professionals with products, treatments and marketing and educational materials for their customers—teens and their parents. Teens want to know how to clear up their skin quickly, so we focus on express treatments and home systems. For mothers, we suggest playing up rejuvenating ‘me’ time.”

2. Engage with your audience ahead of time.

“As with any holiday shopping season, it’s essential to keep in mind how consumer habits have evolved thanks to technology,” says Brokaw.

Social media is buzzing about the start of a new school year. Join the excitement in a targeted way by providing customers with some guidance that makes you a resource as well as a supplier.

—Todd Grossman, CEO, Talkwalker

“Many shoppers spend significant time researching items online before stepping into a store. When they do arrive, they have a good idea of what they want. We recommend starting online prospecting and branding campaigns early to reach customers even before parents begin researching and purchasing school items.”

3. Target “late” shoppers.

If you haven’t started early, you can still catch back-to-school season shoppers, believes Jonathan Cherki, CEO of ContentSquare, an experience optimization platform for online and mobile businesses designed to help increase conversions.

“The back-to-school shopping period starts with people buying because they need supplies and transforms into shoppers purchasing because they’re excited about going back to school with unique items that will differentiate them,” says Cherki.

ContentSquare’s data science team recently completed a back-to-school shopping study that analyzed 40 million site visits and more than 460 million page views across mobile devices and desktop platforms from more than 1 million customers.

“Our study found that people continue to shop well after sales are over, and the items bought later in the season generate a 37 percent higher cart value than books and school supplies and have 75 percent more page views than the latter,” says Cherki. “Shopping becomes emotional and shoppers are less focused on prices and more on products.”

To capture these late buyers, Cherki recommends offering related and recommended products during every step of the customer journey and creating a sense of urgency during transactions. “For example, showing the actual stock available can act as a big conversion booster,” he says.

4. Focus on the digital buying experience.

Though a majority of shopping will occur in brick-and-mortar locations this back-to-school season, National Retail Federation data found that 46 percent of shoppers plan to shop online.

Mobile is an increasingly popular shopping option. “The average American is connected throughout the day via mobile. This translates into an incredible opportunity for businesses to engage with customers where they are most,” says Brokaw.

“Mobile is especially effective at driving brand awareness for advertisers,” Brokaw continues, “especially as many individuals prefer to research products while they’re on the go. In addition, as screen sizes get larger and companies improve their mobile web and/or in-app user experiences, more individuals are making purchases from their mobile devices.”

Cherki agrees. “With traffic on mobile growing exponentially, businesses will do well to have a seamless mobile-first strategy, for prospecting and completing the buyer’s journey. Focus on simple check-out processes with less screens and clicks needed to complete transactions.”

5. Advertise your back-to-school offers on social media.

“Social media is buzzing about the start of a new school year,” says Grossman, whose company’s 1,500 servers process posts from 150 million websites each day. “Join the excitement in a targeted way by providing customers with some guidance that makes you a resource as well as a supplier, such as ‘dorm style guides’ or ‘essential school supplies’ lists.”

You could also get attention by plucking at heart strings with a touching story about a child going back to school.

6. Remember Generation Z.

“This year, Generation Z—those born between the mid-1990s to the mid-2000s, which is the first generation of digital natives—has reached shopping age, and their behavior and demands are unique,” says Cherki.

“We’ve found that Generation Z wants and expects digital experiences beyond the ordinary, while at the same time simplified customer journeys that feel completely seamless,” he says. “Businesses have less than five seconds to capture their attention, but if they get it right, they’ll win big, because Generation Z converts twice as much as the rest of the population.”

Read more articles on marketing & sales.

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Date: AUGUST 30, 2017
© Julie Bawden-Davis

HOW BUSINESS OWNERS CAN HELP PREVENT WORKPLACE DISCRIMINATION

Having a plan against workplace discrimination can help avoid issues from occurring at your company, according to these business owners.

AUGUST 28, 2017

 

When a country’s built on freedom of speech, it’s not uncommon for the office to become a hotbed of speaking out. But as a recent incident at Google illustrates, there’s a fine line between freedom of speech and workplace discrimination.

When a male employee at Google distributed a 3,000-word email speaking out against company practices regarding hiring women, Google responded by firing him.

The fact is that private U.S. companies can terminate employees for what they say. “There’s no freedom of speech within private companies,” says Yoni Levoritz, founder of the Levoritz Law Group. He practices business, civil and family law. “Employees in the vast majority of states are ’employees at will.’ That means they can be fired for literally anything.”

According to Levoritz, the only policies that private companies must adhere to are those that pertain to federal, state and local government laws.

“Companies can’t discriminate based upon sex or religion in hiring practices,” he says. “Otherwise, employees under contract typically have to adhere to moral clauses that are subjective based upon how the company wants to be seen. If an employee speaks out [against a company’s ideology], the employer can fire the person.”

Of course, the goal is not to experience discrimination issues at your company in the first place. Here are some suggestions for policies and protocol that may help prevent problems.

1. Build a strong anti-workplace discrimination culture.

“Avoiding workplace discrimination starts with building a strong culture foundation—and that has everything to do with the people you bring into your organization,” says Heidi Jannenga, co-founder and president of WebPT, which creates software for the outpatient rehab industry.

“We intentionally hire for, and nurture, traits like service, accountability, community and work ethic,” says Jannenga. “We also emphasize inclusive leadership, which means valuing—and actively seeking out—diverse experiences and perspectives.

The first step to breeding a culture of fairness is to make everyone aware of what will and won’t be tolerated.

—Joel Klein, founder, BizTank

“Candidates need to be qualified, but it’s also good to be aware of gender bias and how it can be an issue, even subconsciously,” she continues. “That means being cognizant of seemingly simple things—like referring to potential job candidates as ‘guys’ or ‘ladies.’ For example, avoiding saying, ‘When are we going to hire that software guy?'”

A part of fostering a culture that discourages workplace discrimination is setting a good example.

Whitney Smith is president of The Smith Investigation Agency. “As an employer in what is a male-dominated industry, I strive to be an example of what I expect my staff to be,” she says. “I preach inclusivity and acceptance, so my employees see the environment I’d like our workplace to be. It all boils down to ‘treat others the way you’d like to be treated.’ I can’t expect my staff to respect each other if I don’t demonstrate the same respect for them.”

2. Incorporate anti-workplace discrimination policies into your company.

“Having discrimination policies in place is important,” says Joel Klein, founder of BizTank, an investment platform for Jewish entrepreneurs, and CEO of Immediate Marketing & Business Consulting.

“Companies lose millions of dollars every year due to hate speech or cultural offenses, because actions weren’t taken to protect victims of discrimination,” Klein continues. “With anti-workplace discrimination policies in place, employees feel protected, and that creates a standard for employers to follow.”

In order to make anti-discrimination policies known, Klein suggests having employers clearly state those policies and requiring employees to read and sign them. “When policies are written and distributed, everyone is held accountable and there’s no room for excuses,” he says. “This fosters a safe place for employees to ask questions that could prevent discriminatory statements and ideologies.”

When Smith hires employees, part of her company’s onboarding includes reading and signing pages in the employee handbook that pertain to the company’s zero-tolerance policy for disrespecting clients and fellow staff members.

“Most of our staff, being private investigators, work independently, but some assignments do require that staff work together,” says Smith. “It’s important they respect each other and work as a team. There’s no room for judgment, discrimination or disrespect in this line of work.”

Having anti-workplace discrimination policies and processes already in place can help ensure a safe and positive work environment, agrees Tonya Bruin, CEO of To Do Done, a renovation and handyman service. “The policies laid out for staff in this area are the backbone of my business.”

3. Encourage employees to report unacceptable behavior.

In addition to enlightening employees, Bruin’s guidelines offer instructions for reporting questionable behavior.

“Employees are educated about what behavior is unacceptable and what to do if they need to report a co-worker’s behavior,” she says.

If an employee faces discrimination by a co-worker, Lindsay Kavanagh, digital coordinator for seoplus+, feels that reporting the incident is critical.

“In workplaces with hundreds of employees, the actions of one can be repeated and hurt many,” she says. “Policies and procedures ensure that people can report incidences and feel safe in doing so.”

4. Provide sensitivity training for your entire company.

Of course, employees need to understand what constitutes unacceptable behavior when it comes to workplace discrimination. Some employers find that sensitivity training is helpful in educating employees.

“We run sensitivity training for the entire staff,” says Bruin. “As CEO, this gives me peace of mind that everyone’s been trained properly in sensitive issues.”

Klein agrees with educating employees. “To ensure that your workplace discrimination policy is understood and upheld, periodically conduct ‘quizzes’ or similar activities to help keep everyone refreshed,” he says. “Done in a sensitive way, you could also point out noted biases and prejudices. People can’t learn to fix problems they don’t know they have. This will also allow everyone to open up to different perspectives and views.”

5. Act quickly when workplace discrimination arises.

“If a workplace discrimination situation does occur, handle it immediately,” advises Klein. “Mishandling a complaint, even in negligence, can cause a bigger problem to arise. The first step to breeding a culture of fairness is to make everyone aware of what will and won’t be tolerated. Doing this immediately levels the playing field.”

Read more articles on hiring & HR.

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Date: AUGUST 28, 2017
© Julie Bawden-Davis

IS IT TIME TO OFFER FLEXTIME TO YOUR EMPLOYEES?

A recent survey shows that employees with children value flextime more than salary. Learn how you can make the most of offering your employees flextime.

AUGUST 24, 2017

 

Some company owners have added flextime as one of their perks to lure and keep top talent. And according to a recent survey by online service FlexJobs, it may be an option worth considering.

FlexJobs surveyed nearly 2,000 parents with children 18 and younger living at home. (The company services professionals seeking flexible schedules and freelance jobs.) The survey found that the majority consider work-life balance and flexible schedules more important than salary when evaluating job prospects.

“A perk like flextime could be the deciding factor for employees who are increasingly focused on quality of life,” says Don Rheem, CEO of E3 Solutions, a provider of employee workplace metrics and manager training. “Giving staff more scheduling autonomy sends a message that workers are trusted and that can increase their engagement in the workplace.”

How Employee Flextime Can Benefit Your Company

Flextime’s benefits are clear for employees, but how can business owners make the most of offering employees flexible scheduling? It turns out that offering flextime may also have some perks for your company.

“Having some employees work odds hours—like weekends or evenings—can be beneficial to your business,” says Adda Birnir, CEO and founder of Skillcrush, an interactive learning community that teaches tech beginners digital skills. “For example, flextime gives Skillcrush greater customer service coverage and the ability to turn things around faster, because of the extra time employees spend working outside of normal work hours.”

Just as some employees are most productive in the wee hours of the night, some workers need daily physical interaction and the stability of fixed work hours to excel.

—Attiya Abdulghany, CEO, Oliver + Sons

Jason Cummins owns All Hours Air Inc., a heating and cooling installation company. He finds flexible scheduling works well for his business. “Sometimes my employees have to work late into the evening, so I allow them to come in to work a bit late. They perform better when they’re well rested, which means a better advantage for me and the business.”

Offering flextime can be a way to keep incredible employees who would otherwise not be able to work at your company anymore, adds Peter Yang, co-founder of ResumeGo, a company that offers career coaching and resume writing services.

“For many of our employees, better performance and improved productivity come naturally with flextime,” says Yang. “Some employees are early birds, while others are night owls. After building a certain amount of trust, we encourage all of our employees to tell us when they’re the most productive and to simply work during those hours.”

Will Flextime Work for Your Company?

Before you consider offering flexible scheduling, it’s important to ask yourself if flextime will work for your company, believes Sophia Bland, co-founder of Mock Interview. The company provides interview coaching and conducts mock interviews using a team of nearly 60 employees from around the globe.

“What will providing flextime do for your company?” asks Bland. “It might allow your business to handle an influx of clients who want to work with your company outside of traditional hours. Sometimes it will make your company more efficient, as some employees are more productive when they work non-traditional hours.”

It’s also a good idea to look at what work style works best for your organization. That can be a company-specific decision, notes Rebecca Cenni, founder of Atrium Staffing, which provides workforce solutions to midsize and Fortune 500 companies.

“What are your competitors doing?” Cenni asks. “Could employee flextime help with retention and attracting top talent? What are the up- and downsides of offering flextime for your company?”

Taking some time for assessment is important, advises Brie Weiler Reynolds, senior career specialist at FlexJobs. She suggests asking these additional questions.

  • What types of flexible work will integrate within your workplace culture and your worker’s needs? Some options include full or partial telecommuting, flexible schedules, part-time options, summer Fridays off and job sharing. Consider conducting a survey to learn your employees’ preferences.
  • Which roles should be eligible for what types of flexibility? Customer-facing roles will need to be completed in the office, but employees who work mostly on the computer or the phone can often work from home.
  • What are your main goals for using flextime? Is it to increase productivity, improve employee satisfaction and morale, reduce real-estate costs, and/or expand your business offerings?

How to Get the Most out of Offering Employee Flextime

Many business owners agree that creating a clear, formalized flextime program is your best option.

“Casual policies allowing flexibility as needed or with manager approval may seem like an easy way to test work-life options, but that can ultimately backfire,” says Weiler Reynolds. “Employees get confused about what options they have, managers find it difficult to stay on top of everything and people often perceive unfairness. Decide which flexible work options will be available and to whom.”

Be very clear about expectations, adds Bland. “Work out with employees what tasks need to be done during traditional hours and what tasks can be done outside of traditional hours.”

Use great care in who you grant employee flextime, advises Yang.

“If an employee wants flextime, we look carefully at the level of productivity and dedication shown in the past,” he says. “Is the person someone who comes in late, leaves early, takes long lunch breaks and spends an exorbitant amount of time on each assignment, or the opposite? This helps predict if the person will thrive with flextime.”

Measuring the ROI of Flextime

Of those companies that offer flextime, many don’t measure the return on investment of doing so, according to Weiler Reynolds. If you’re going to offer flextime, take a look at how it’s benefiting your company, she recommends.

“Pay attention to measurable data like client satisfaction, projects completed, worker satisfaction, retention and turnover and operating costs.”

Accountability is key, agrees Bland. “First measure how productive an employee is working traditional hours,” she says. “Then measure how productive that employee is working flexible hours. For flextime to make sense, the second measurement should be at least as high as the first.”

One of the best ways to measure the impact of flextime is to measure employee engagement, believes Rheem. “When people are engaged at work, they’re strengthening their connection with their employer. The more engaged an employee is, the higher performance and productivity employers will see, regardless of when and where the employee is working.”

For Birnir, flextime has a significant impact on ROI because it enables her to concentrate on running her business.

“As a CEO, your impulse is to monitor everything—when employees show up and leave, and if they’re trolling Facebook all day,” she says. “I’ve found that offering flextime and focusing on quality and quantity of work is a better metric than how and when they work.”

Keep in mind that employee flextime is not for everyone, advises Attiya Abdulghany, founder and CEO of Oliver + Sons, a boutique digital strategy consulting firm with offices throughout the world.

“Despite generally having success, I’ve had to let a few people go who needed more structure than what our flextime, remote working environment could provide,” she says. “Just as some employees are most productive in the wee hours of the night, some workers need daily physical interaction and the stability of fixed work hours to excel.”

Read more articles on hiring & HR.

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Date: AUGUST 24, 2017
© Julie Bawden-Davis

BENEFITS OF MENTORING: HOW TO MAKE THE MOST OF THE MENTOR-MENTEE RELATIONSHIP

The benefits of being a mentee can be obvious, but what about mentoring? According to these mentors, there are some perks of advising newbies.

AUGUST 10, 2017

 

In August 2016, when LinkedIn invited Stephanie Bailey to participate in a special mentorship program, she jumped at the chance. Bailey, head of marketing at the management platform company AgileCraft, found the experience fulfilling.

“I’m glad to see that LinkedIn is trying this again, but with a larger audience,” says Bailey of the company’s recently debuted service that matches potential mentors and mentees within their database. The free service was recently tested and is now available to select users with plans to broaden availability.

Bailey felt the need to give back, because her own career has benefited from a 15-year relationship with a mentor.

“While my mentor has helped me immensely, mentoring also benefits him,” Bailey says. “He gets a new perspective on his views, new insight into marketing and the pleasure of helping to unlock some of my hidden potential and witness how he’s influenced another successful career.

“Most importantly,” she continues, “he gets the personal satisfaction of creating a lifelong relationship with a colleague and friend.”

Why Business Owners Can Make Great Mentors

With their broad range of experience in all aspects of business, entrepreneurs and company owners can make excellent mentors.

“Most business owners and entrepreneurs have gone through the highs and lows of spectacular triumphs and miserable failures during their journeys,” says Phil Shawe, CEO of TransPerfect, a translation and content management company. “The struggles many successful business owners have experienced often makes them capable of effectively mentoring younger professionals.”

Even if you just dedicate three to four hours per quarter to the mentee, it’s important to set aside the time to mentor. Small chunks of time can make a significant impact on someone’s life and career path.

—Stephanie Bailey, head of marketing, AgileCraft

Rafiq Punjani, president of Anago Cleaning Systems—Manitoba, agrees. “Since most mentors have walked a similar path, [which can be a circuitous one], they often have great wisdom to share with mentees.”

What Are the Benefits of Mentoring?

Just as there are numerous benefits for mentees of being mentored, mentoring also has its perks for mentors, such as:

Maximizing Your Impact and Time

Professional speaker and CEO of The Amplify Lab Joanna Bloor developed and hosts an annual speed mentoring event. One of Bloor’s biggest challenges is fulfilling requests from less-seasoned professionals to meet for “brain-picking” sessions.

“If I said yes to every request, I’d be in the coffee shop a significant part of the day and not doing my day job,” she says. “I’m always looking for ways to maximize my time while having maximum impact. Done properly, there’s always a win for both the mentor and the mentee. Tools like LinkedIn’s new program make it even easier.”

Establishing Your Subject Matter Expertise

What you’re known for as an executive can be key to landing senior positions, believes Bloor.

“Historically, other than speaking at conferences and general networking, there haven’t been many ways to show your expertise,” she says. “Mentoring within the LinkedIn platform could demonstrate that you know your subject matter and create career and business opportunities.”

Strategically Giving Back to Those Who Show Initiative

To Bloor, few things are more rewarding than giving advice to mentees who possess initiative.

“The result is that your advice turns to action and action manifests as impact,” she says. “I haven’t spoken to any mentors who haven’t been thrilled when mentees have acted on their guidance. It’s why people mentor in the first place.”

How to Make the Most of the Mentoring Relationship

In order to get the most benefits from mentoring for yourself and your mentee, keep the following in mind.

1. Be clear about what you can offer.

“Try not to be all things to everyone,” says Bloor. Focusing on your strengths and abilities, consider outlining exactly what you can offer a mentee. Being yourself and sharing your uniqueness can go a long way toward guiding your mentee. You may also feel satisfied with your contribution.

2. Commit your time.

“Even if you just dedicate three to four hours per quarter to the mentee, it’s important to set aside the time to mentor,” says Bailey. “Small chunks of time can make a significant impact on someone’s life and career path.” That significant impact can make you feel great about the connection.

3. Keep an open mind.

A lot of mentor/mentee relationships include an age gap, notes Bailey. “Just listen,” she advises. “You’ll be surprised how much you can learn from your mentee.”

4. Graciously accept praise.

“All mentorship programs are fueled with gratitude,” says David Harder, author of The Workplace Engagement Solution and president of Inspired Work, Inc., a workplace engagement, career and leadership development firm.

“As a mentor, accept all acknowledgement and praise with graciousness,” says Harder. “For example, if someone compliments you, avoid replying with, ‘Oh it was nothing.’ Gratitude fuels additional support.”

Read more articles on networking.

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Date: AUGUST 10, 2017
© Julie Bawden-Davis

3 TIPS TO HELP ENCOURAGE YOUR EMPLOYEES TO USE THEIR VACATION DAYS

Time off can help boost productivity, but a survey found that vacation days aren’t getting used. These tips may help your office become more vacay friendly.

AUGUST 08, 2017

 

As an employer, you probably already realize the benefits of providing employees with paid time off (PTO). You may not know, though, that a majority of employees don’t take their vacation days.

According to a 2017 survey of 400 employees commissioned by TSheets, 70 percent of U.S. workers “who received their PTO” don’t use all of it each year. (TSheets is a time tracking and scheduling software company.)

“If you look at the total number of employees working in the United States (about 151 million),” the report goes on, “these numbers imply that employees left 600 million days of PTO unused.”

It might seem like a way for business owners to save costs, but it may be better for your company to have your employees use their vacation days, believes Ximena Hartsock, co-founder and president of Phone2Action, a digital advocacy platform that connects citizens to lawmakers.

“Vacations days offer a chance to reflect and gain perspective,” Hartsock says, “and PTO increases productivity in the office.”

Burnout is a common result of a work-life imbalance. To avoid this potential productivity buster, it may be a good idea to encourage employees to use their vacation days. These three tips may help.

1. Set an example regarding taking time off.

It starts at the top, believes Rachel Hofstetter, chief marketing officer at Chatbooks, a service that turns digital photos into photo books.

“This is a perfect example of ‘tone from the top,'” Hofstetter says. “When company leaders don’t take vacation days themselves, they set a culture that dictates no one else can take time off.”

A month after Chatbooks implemented a revised family leave policy, the company’s CFO/COO took off the full time allotted for his paternity leave, Hofstetter says.

Your celebration of employee vacations reinforces the message that taking time off is a good thing.

—Manny Medina, CEO, Outreach

“Setting the example at the executive level that vacation days are meant to be used is a critical component of making sure employees are happy, healthy and as productive as they can be,” she says.

It’s all about leading by example, agrees Manny Medina, CEO of Outreach, a sales engagement platform.

“If I and my leadership team don’t take time off,” Medina says, “we send a signal to the rest of the organization that high performance requires never taking vacations. We take regular mini vacations every quarter or so, and we make sure everyone in the company knows about it.”

2. Make vacation days possible for your team.

Encouraging employees to take time off is one thing, but making it a viable option is another.

“It’s important to cultivate a culture where every member of the team willingly steps up to fill in for employees while they’re out, so no balls drop,” says Medina. “Putting policies in place that protect employee vacations is also vital. That’s why we created a maternity leave policy that allows new parents—moms and dads—to take time off after the arrival of a new baby without touching their vacation days.”

Hartstock finds that informing employees of the best times of the year to take vacations acts as a motivator.

“We allow people to vacation at any time, but send memos out before summer and the winter holidays so people feel encouraged to use their PTO when the business is slower.”

Phone2Action also allows employees with families overseas to take longer vacations and work remotely during the holidays. “All of this helps dedicated team members plan vacations without feeling guilty,” says Hartstock.

Sometimes finances are the reason why employees fail to vacation, so Hartstock’s company also gives travel loans. “We offer payment plans for young people who don’t have the savings to afford a vacation overseas,” she says.

3. Create a pro-vacation days company culture.

“While the TSheets survey cited that respondents were ‘too busy’ to take time off, I think the deeper reason is company culture and guilt,” says Jon Wirt, head of marketing for Aura, which creates digital picture frames.

“If employees take vacation days while others don’t, those taking time off might worry they’ll be perceived as slackers,” says Wirt. “Weave taking time off into the company’s DNA. At Aura, family time is valued, so vacation days are considered a good reason to be out of the office. You can’t force employees to take PTO, but when people bring up taking time off, stress the positives and take an active interest in their vacations.”

Hofstetter agrees. “Show interest—[instead of] disdain—when people take vacation days,” she says. “Emphasize the importance of going on vacation and go yourself. In our weekly marketing team meeting, one agenda item is to ask who is going on vacation the following week. Our policy is to put a palm tree as the person’s status on Slack and ask that other employees respect their time away.”

Chatbooks’ culture of approval surrounding vacation days has effectively filtered to employees, notes Hofstetter.

“In a recent employee survey, we asked employees, ‘What is one thing that makes you happy at work and satisfied with your work-life balance?’ Many employees cited the company’s positive attitude surrounding vacation days.”

You can also make taking vacations part of your culture by celebrating them.

“Your celebration of employee vacations reinforces the message that taking time off is a good thing,” says Medina.

Hofstetter agrees. “Once a month, employees share with one another a photo they’ve recently taken and tell a short story to explain it,” she explains. “The photos usually portray something that occurred during time off. This tradition does a great job of celebrating and encouraging vacations.”

Read more articles on work-life balance.

Photo: Getty Images
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Date: AUGUST 08, 2017
© Julie Bawden-Davis

GOOGLE MY BUSINESS POSTS: A NEW WAY TO ADVERTISE YOUR COMPANY

Google My Business Posts lets you share up-to-date information about your business with potential customers, which can help you market your company.

JULY 21, 2017

 

Until recently, when customers searched for your business on Google search and maps, they’d only see a basic listing. Now, with the new Google My Business Posts feature, you can share relevant and timely information—like events, specials and new products—that can attract customers to your business.

“In addition to editing hours, posting photos and responding to reviews, business owners can now share relevant details that might be exciting to potential customers,” says Angelina Darrisaw, founder and CEO of C-Suite Coach who leads Google My Business workshops. “This new function offers a great way to give customers valuable insights into your business.”

Google My Business Posts offer business owners a great opportunity to get their messages in front of new and existing customers, believes John Lincoln, CEO of Ignite Visibility, a digital marketing agency.

“Business owners have come to understand that search is becoming an increasingly important part of a customer’s journey,” says Lincoln. “When people search for products and services and [home] in on a company they like, they can now see Google posts with recent marketing messages.”

Updates are in real time and business owners can start posting right now, adds Bradley Shaw, owner of SEO Expert Bradley Shaw, a digital marketing and online consulting company. “Posts can be created on-the-go using the Google My Business Android and iOS apps or via a website.”

Benefits of Google My Business

Google My Business Posts can bridge a gap between search and social, believes Steve Hammer, president of digital marketing agency RankHammer.

“Social is great once you’ve acquired customers, but search is very often the place people get started,” Hammer says. “Google Posts is ideal for customers just discovering a business or those looking for the latest information. It features the business owner’s voice, which adds richness to results and can be a compelling user benefit. It also increases the odds of repeat searches.”

Instead of a generic business profile, posts drive customers to unique calls to action, such as visiting your place of business or attending a special event.

—Nick Leffler, owner, Exprance

The posts let you share time-sensitive information in a timely manner, adds Darrisaw. “Timing is a key If you’re having an event or changing hours for a special occasion. Posts are a great way to inform your customers about the updates right when they have the intent to visit your business.”

The feature can also help businesses reach local customers. “Now, instead of a generic business profile, posts drive customers to unique calls to action, such as visiting your place of business or attending a special event,” Nick Leffler, owner of Exprance, a digital marketing company. “Every post can also have an image, which helps draw attention to it.”

Google My Business Posts can be useful to companies with seasonal offers, believes Matthew Ganzak, who provides online marketing training to entrepreneurs through his company Scale Up Academy.

“You can set up a post that links to a holiday promotion,” he says. “Before, if you had a promotion you wanted to run and get into the search engines, you’d have to spend money on Google Adwords.”

Potential Drawbacks

In order to take advantage of Google My Business Posts, you must be a verified business on Google My Business.

Google My Business Posts are also geared toward businesses with a local presence. The companies that stand to gain from posting are brick-and-mortar businesses with a retail or restaurant presence, or businesses that serve specific local areas. The feature may not be as useful if your business is primarily online and serves a wide audience.

Currently, the photo-cropping feature on Google My Business Posts doesn’t seem to be consistent, adds Hammer.

“The minimum recommended size is 720 x 720 pixels, but I’ve had the bottom of images get cut off, and I’ve also had problems with extra, undesirable space on the sides of pictures,” he says. “At this point, I’d suggest just using square images with a bit of extra space around them.”

Effectively Using Google My Business Posts

To use the Google My Business Posts function, look for the new posts tab on the left-hand side of your Google business account. Then click and create posts using images and succinct 100 to 300 word descriptions.

The following tips can help improve your posts’ results:

  • Use attention-grabbing images. Consider posting high-quality, relevant photos instead of stock photos and blurry images. “Keep in mind that in many cases, the photo is your first impression,” says Hammer.
  • Post a clear call to action: Be transparent about what you want customers to do. Spell out if you want them to come in, call, use a coupon code or check out a new product. “Keep it simple and only ask customers to take one action,” suggests Leffler. “Don’t tell people too much in each post, because that will just frustrate and confuse them.”
  • Keep the offers fresh and up to date. “This is a not a set it once and never return,” says Ganzak. “Be mindful of your active promotions. Have someone logging in regularly to check that offers are up to date.”
  • Avoid excessive abbreviation. Use expressions like “buy one, get one free” rather than “BOGO,” suggests Hammer.
  • Realize this isn’t SEO. You’re not trying to rank in searches—you’re offering customers added benefits and more information about your company. “Putting in a bunch of keywords isn’t going to help you get noticed. It will just read like junk and turn off potential customers,” says Hammer.
  • Refrain from using the function like Twitter. Avoid using the function as the main line of communication between you and your clients. There are better tools for that.

Read more articles on digital tools.

Photo: Getty Images
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Date: JULY 21, 2017
© Julie Bawden-Davis

PASSWORD SECURITY: 9 TIPS FOR SAFEGUARDING YOUR COMPANY’S SENSITIVE DATA

Password security may be overlooked, but strong passwords can be a key to keeping your company information secure. Here’s how to create them.

JULY 14, 2017

 

As cyberattacks seem to become increasingly more prevalent, far-reaching and long-lasting in their damage, it’s more important than ever that you and your employees do everything possible to protect your company’s data. One often overlooked way to keep sensitive information safe is paying extra attention to password security.

Though passwords seem like such a simple element in the scheme of things, the truth is that they can open the door for cybercriminals. One easy-to-hack password and thieves can compromise your business in just a few keystrokes.

“Passwords are the only control you have to secure your data with most systems these days,” says privacy and cybersecurity expert Shaun Murphy, CEO of sndr, an app that enables messaging, file storage and sharing. “If your password is easily guessed by someone, then the person essentially becomes you. Use the same password across services and devices, and they can take over your digital identity.”

Why Password Security Is of Paramount Importance

“Passwords are valued currency in the Digital Age, and using strong passwords to prevent unauthorized access is a necessity,” says Stacy King, executive director of the Federal Bar Association. “The ability to transfer customer data, client files, medical records, employee files, financial records and other valuable and sensitive information has presented a new world of legal risks.”

Don’t think that it’s just online bank accounts that require password protection, adds Jocelyn Baird, associate editor for NextAdvisor, a website offering financial advice for consumers and business owners.

Passwords are the only control you have to secure your data with most systems these days.

—Shaun Murphy, CEO, sndr

“Password security is the front line of defense when it comes to protecting all of your online accounts and the data contained within them,” Baird says. “While it might be more convenient to use short, easy-to-remember passwords, one weak link password could hand a cyberthief the keys to your online kingdom.”

9 Steps to Help Increase Password Security

Creating secure passwords is possible. You and your employees may want to keep the following tips in mind.

Make the Password Complex

Easy passwords might allow you to quickly access your accounts, but they can do the same for hackers.

“When it comes to password security, think complex,” says Baird. “The more characters you use, the better. One trick you can use if you can’t remember completely randomized passwords is to create a passphrase instead of a password. Use spaces to make a sentence and incorporate numbers and special characters in place of letters. For example: w1Nt3r iZ com;nG? instead of ‘winter is coming.'”

Avoid the obvious, says security expert Jason Chaikin, president of Vkansee, a biometric verification company. “Using familiar dates like kids’ or spouses’ birthdays and home addresses are very obvious choices and aren’t recommended.”

Make the password even less hackable through intentional misspellings, advises King.

“See that the password is free of repetition, dictionary words and usernames,”  she advises. “A good password is one that has no relation to you whatsoever.”

Keep It Random

Chaikin advises using at-random passwords.

“Ideally, you want a random, 12-character password,” he says. “You can devise the password by picking two seemingly unrelated words and incorporating unusual characters.”

Go for Lengthy Passwords

“Length can exponentially increase the security of your password,” says Preston Powell, systems support specialist for commercial cleaning company Anago Cleaning Systems. “A strong password should be at least eight characters, with 12 to 14 being a recommended standard. Be sure to use a mix of alphanumeric characters and symbols, along with capitalization.”

Avoid the Automatic Login Feature

It might save you time and frustration, but automatic, saved login information, including passwords, may make it more likely that your company could be hacked, says Michael Bruemmer, vice president of identity protection at Experian

. (So you may want to avoid using the “remember password” feature.)

Use a Different Password for Each Site and Account

“It’s imperative that you have a unique password for every service you use,” says King. “If you recycle the same password or a variation of it and a hacker cracks one account, he or she will be able to access your other accounts.”

An important tip for password security is to avoid reusing passwords, agrees Baird.

“A password used in more than one location is automatically weakened, because if someone were to gain access to one of those accounts, they could easily access any others sharing the same password. And remember, the easier a password is to guess, the more dangerous it is.”

Change Your Passwords Regularly

“Good passwords aren’t easy to guess, but they also don’t last forever,” says Bruemmer. “Keep a reminder on your calendar to change out passwords regularly so that none of them stick around too long.”

Take Advantage of Two-Step Verification

“If a service offers a two-step verification, use it,” advises King. “When enabled, signing in will require you to also enter in a code that’s sent as a text message to your phone. As such, a hacker who isn’t in possession of your phone won’t be able to sign in, even if the hacker knows your password. Two-factor authentication helps you protect your accounts by adding a second step to the login process.”

Avoid Using an Email Address Login

“While names, addresses and dates are important details to not include in a username, the absolute worst mistake you can make is to use an email address as a login,” believes Murphy.

“Linking a username with an email address can simplify a criminal’s search for your personal information,” he says. “Using trial and error, a criminal can add common email providers to your username, run a search and pull up your social media accounts and any other sites where you have used that email address to create a profile.”

Try a Password Manager

Password managers securely keep track of your passwords for you so you don’t have to constantly remember them. They also make it unnecessary to recall anything but a master password.

“Look for a password manager that explicitly states it uses AES 256 bit encryption or stronger to protect your content,” says Murphy. “And, if you can use the password keeper via a web browser, only use it for unimportant sites—not for email, social media, banking or commerce. If you can login with a username/password and view all of your passwords, so can someone else.”

Photo: Getty Images
Project Link
Date: JULY 14, 2017
© Julie Bawden-Davis

7 STEPS TO HELP YOU DEVELOP AN EFFECTIVE PERSONAL BRAND

According to these experts, trust, consistency and knowledge can help build positive and lasting buzz around your personal brand (and your professional one, too).

JULY 11, 2017

 

Though the topic of personal branding may seem like it has little to do with your business, the truth is the two are closely linked. How you portray yourself with your personal brand can be seen as an extension of your company. Customers may make decisions about using your business by what they see and hear about you.

“A lot of business owners don’t realize that the public looks them up more than their companies,” believes Patrick Ambron, CEO and co-founder of BrandYourself, a platform that provides software and services to help businesses and individuals manage their online reputations. “As a business owner, you’re likely to get checked out by potential customers, employees, investors and partners. If you don’t look good, you could miss out on opportunities.”

Is Personal Branding a Necessity Now?

If you think having a personal brand is an extra perk that you can concentrate on when you have time, think again, advises Karen Leland, founder of the Sterling Marketing Group and author of The Brand Mapping Strategy.

“In today’s wired world, having a personal brand as a business owner is not a luxury, but rather a requirement,” says Leland. “For many business owners, the key is to create what I call a parallel brand, which is the perfect blend of an owner’s personal and company brand. While remaining distinct, these two brands should work in concert.”

It may be just as important for business owners to brand themselves as well as their companies, agrees Sandy Rubinstein, CEO of DXagency, a digital marketing and advertising firm. “

In today’s wired world, having a personal brand as a business owner is not a luxury, but rather a requirement.

—Karen Leland, founder, Sterling Marketing Group

Of course, potential customers want to know that the company has the ability to provide excellent work or products,” Rubinstein says, “but ultimately the client is buying you, the leader, champion and heartbeat of the company.”

Your brand can follow you throughout your career, notes entrepreneur and author Ian Balina, who wrote How to Make Millions with Initial Coin Offerings (ICOs).

“Personal branding stays with you, even after the success or failure of a business, and it’s the most important thing you can build as a business owner,” he says. “Most businesses have been commoditized, but personal branding creates differentiators that are tougher to copy.”

Must You “Show Off” to Get Attention for Your Personal Brand?

In order to build your personal and company brand, do you need to employ over-the-top tactics—the kind often seen online and in the media? Fortunately, such extreme marketing tactics aren’t necessary or even advisable.

“Repeatedly leveraging extreme behavior to get attention can frame your personal brand as outlandish, which usually isn’t suitable,” says Balina. “Quiet people get attention by sharing unique and fresh ideas.”

Low-key individuals who take the time to develop strong reputations embody brands that people trust, agrees Ross Kimbarovsky, founder and CEO at crowdSPRING, a marketplace for crowd-sourced logo, web, graphic and product design.

“Entrepreneurs we most admire, such as Jeff Bezos, Elon Musk and Warren Buffett, are not known for extreme behavior to get attention,” says Kimbarovsky. “Flashy clothing and an attitude may initially seem more effective, because it may get attention on social media, but such behavior isn’t sustainable for most people. Building reputation over time ensures respect for your personal and company brands.”

Tips for Building Your Personal Brand

Developing your own respected personal brand can be accomplished by presenting a consistent persona over time. The following steps can help with that process.

1. Identify your unique value.

Determine exactly what you wish to offer your audience or industry, says Ambron.

“Once you know your goal, such as being seen as an innovator in your industry or a thought leader,” he says, “you can build your brand in a targeted way that includes a strong online presence showcasing your value.”

2. Understand your product/service and how it relates to your target market.

When you’re building your personal brand, it’s important to research and know your audience. How you present your brand image will depend on your market, says Brent Wilsey, president of Wilsey Asset Management.

“An asset management firm is going to produce a much different brand than an extreme sports company,” Wilsey says. “Whereas an asset management firm must convey trust in its brand, an extreme sports company needs to be edgy and create excitement.”

3. Pay attention to what you say rather than what others say about you.

“Most people spend far too much time worrying about what others say and write about them and not nearly enough time thinking about what they say and write,” says Kimbarovsky. “For some, a blog article or post on Twitter is solely a soundbite to generate controversy and followers with little regard for the impact their words might have on others. Thoughtless comments follow you indefinitely.”

4. Manage your messages.

You may want to make certain that your profiles and messages are consistent across all of your platforms, including social media, website, bio and blog. If you do public speaking in person and online, having all of your messages echo a similar theme helps project consistency between your personal brand and your professional brand.

5. Be accessible.

A large part of building a brand can involve relating with your customers. How you interact with your followers and what you say can speak volumes to them. If you’re not accessible, all of the work you’ve done to manage your brand may be in vain.

“Make it easy for your customers to talk to you,” says Kimbarovsky. “Be available by phone, email, in social media and in person. Be open to customers giving you suggestions, complaints and compliments, and then make sure to respond. People want to know that someone is listening to them and that if they make a suggestion, it will be considered and acted upon.”

6. Avoid complacency.

“Complacency lulls people into laziness and inaction, crushing curiosity and creativity and promoting irrelevancy,” says Larry Light, a global brand revitalization expert and CEO of the business-consulting firm Arcature. “Never stop looking at the changes in the world around you and in your specific market segment.” You can then react to those changes with your brand in mind.

7. Portray reliability, sincerity and patience.

Well-respected brands usually elicit a feeling of trust. This can come from offering great products and services over time.

There really are no shortcuts. Displaying a consistent brand image to your customers that shows your sincere wish can help and educate them. Follow these steps and you may eventually be viewed as a reliable brand worth listening to and supporting.

Read more articles on branding.

Photo: Getty Images
Project Link
Date: JULY 11, 2017
© Julie Bawden-Davis

7 STEPS TO HELP YOU DEVELOP AN EFFECTIVE PERSONAL BRAND

JULY 11, 2017

Though the topic of personal branding may seem like it has little to do with your business, the truth is the two are closely linked. How you portray yourself with your personal brand can be seen as an extension of your company. Customers may make decisions about using your business by what they see and hear about you.

“A lot of business owners don’t realize that the public looks them up more than their companies,” believes Patrick Ambron, CEO and co-founder of BrandYourself, a platform that provides software and services to help businesses and individuals manage their online reputations. “As a business owner, you’re likely to get checked out by potential customers, employees, investors and partners. If you don’t look good, you could miss out on opportunities.”

Is Personal Branding a Necessity Now?

If you think having a personal brand is an extra perk that you can concentrate on when you have time, think again, advises Karen Leland, founder of the Sterling Marketing Group and author of The Brand Mapping Strategy.

“In today’s wired world, having a personal brand as a business owner is not a luxury, but rather a requirement,” says Leland. “For many business owners, the key is to create what I call a parallel brand, which is the perfect blend of an owner’s personal and company brand. While remaining distinct, these two brands should work in concert.”

It may be just as important for business owners to brand themselves as well as their companies, agrees Sandy Rubinstein, CEO of DXagency, a digital marketing and advertising firm. “

Must You “Show Off” to Get Attention for Your Personal Brand?

In order to build your personal and company brand, do you need to employ over-the-top tactics—the kind often seen online and in the media? Fortunately, such extreme marketing tactics aren’t necessary or even advisable.

“Repeatedly leveraging extreme behavior to get attention can frame your personal brand as outlandish, which usually isn’t suitable,” says Balina. “Quiet people get attention by sharing unique and fresh ideas.”

Low-key individuals who take the time to develop strong reputations embody brands that people trust, agrees Ross Kimbarovsky, founder and CEO at crowdSPRING, a marketplace for crowd-sourced logo, web, graphic and product design.

“Entrepreneurs we most admire, such as Jeff Bezos, Elon Musk and Warren Buffett, are not known for extreme behavior to get attention,” says Kimbarovsky. “Flashy clothing and an attitude may initially seem more effective, because it may get attention on social media, but such behavior isn’t sustainable for most people. Building reputation over time ensures respect for your personal and company brands.”

Tips for Building Your Personal Brand

Developing your own respected personal brand can be accomplished by presenting a consistent persona over time. The following steps can help with that process.

1. Identify your unique value.

Determine exactly what you wish to offer your audience or industry, says Ambron.

“Once you know your goal, such as being seen as an innovator in your industry or a thought leader,” he says, “you can build your brand in a targeted way that includes a strong online presence showcasing your value.”

2. Understand your product/service and how it relates to your target market.

When you’re building your personal brand, it’s important to research and know your audience. How you present your brand image will depend on your market, says Brent Wilsey, president of Wilsey Asset Management.

“An asset management firm is going to produce a much different brand than an extreme sports company,” Wilsey says. “Whereas an asset management firm must convey trust in its brand, an extreme sports company needs to be edgy and create excitement.”

3. Pay attention to what you say rather than what others say about you.

“Most people spend far too much time worrying about what others say and write about them and not nearly enough time thinking about what they say and write,” says Kimbarovsky. “For some, a blog article or post on Twitter is solely a soundbite to generate controversy and followers with little regard for the impact their words might have on others. Thoughtless comments follow you indefinitely.”

4. Manage your messages.

You may want to make certain that your profiles and messages are consistent across all of your platforms, including social media, website, bio and blog. If you do public speaking in person and online, having all of your messages echo a similar theme helps project consistency between your personal brand and your professional brand.

5. Be accessible.

A large part of building a brand can involve relating with your customers. How you interact with your followers and what you say can speak volumes to them. If you’re not accessible, all of the work you’ve done to manage your brand may be in vain.

“Make it easy for your customers to talk to you,” says Kimbarovsky. “Be available by phone, email, in social media and in person. Be open to customers giving you suggestions, complaints and compliments, and then make sure to respond. People want to know that someone is listening to them and that if they make a suggestion, it will be considered and acted upon.”

6. Avoid complacency.

“Complacency lulls people into laziness and inaction, crushing curiosity and creativity and promoting irrelevancy,” says Larry Light, a global brand revitalization expert and CEO of the business-consulting firm Arcature. “Never stop looking at the changes in the world around you and in your specific market segment.” You can then react to those changes with your brand in mind.

7. Portray reliability, sincerity and patience.

Well-respected brands usually elicit a feeling of trust. This can come from offering great products and services over time.

There really are no shortcuts. Displaying a consistent brand image to your customers that shows your sincere wish can help and educate them. Follow these steps and you may eventually be viewed as a reliable brand worth listening to and supporting.

 

Project Link
Date:
© Julie Bawden-Davis

HELPFUL RESOURCES FOR VETERAN BUSINESS OWNERS

From mentorship opportunities to helping with recruitment, these organizations are doing their part to thank veteran business owners for their service.
 

Writer/Author/Publisher/Speaker, Garden Guides Press
 

JULY 03, 2017When former Army Engineer Captain Courtney Wilson, launched her business, DropZone for Veterans, the plethora of assistance for veteran business owners astounded her.

“I was surprised at the resources available,” says the combat veteran and Bronze Star Medal recipient, who served some time in Afghanistan. “America does an incredible job of supporting the troops and veteran entrepreneurs, offering everything from discounted business services to mentoring, training and networking programs.”

Wilson launched DropZone for Veterans, a customizable, online resource center of opportunities available to members of the military from businesses and organizations, in November 2016. Within 90 days, her company was cash positive, debt-free and generating revenue, thanks to several awards open to veteran business owners.

Wilson received $35,000 seed money through various organizations, including competitions. Vet To CEO awarded her $17,500 when she won a business plan writing competition and StreetShares Foundation awarded her $5,000 when she placed first in their monthly Veteran Small Business Award.

Wilson started DropZone for Veterans after seeing how such a connection positively affected a fellow soldier.

“I watched this person really struggle when adjusting to civilian life, including suffering from crippling panic attacks. I suggested he try an outdoor healing retreat that I’d attended, and he came back a changed person,” says Wilson. “I thought about how profound it was that he connected to one resource that literally saved his life.”

Challenges Adjusting to Civilian Life

Struggles to adjust to a less structured civilian life after a more regimented military service experience are common for many veterans.

“The biggest challenge is the transition, which is harder than you ever imagined,” says Jason McCarthy, a former member of the Special Forces Group and founder and CEO of GORUCK, which produces fitness gear and holds fitness challenge events, some of which are free or discounted for veterans.

I believe that a person’s character truly shines in the face of adversity. Veterans have the ability to overcome obstacles unlike anyone else.—Joseph Kernan, chairman, NS2 Serves

“When you leave the military, there’s a loss of identity and support structures,” says McCarthy, whose company also supports the Green Beret Foundation. “GORUCK serves as a bridge between the military and civilian worlds. Our events offer the opportunity to connect with likeminded people. The experiences aren’t easy—they’re led by former Special Forces guys—but I’ve yet to meet a vet who’s looking for the easy route.”

Mentoring Veteran Business Owners

In addition to support groups, mentoring opportunities for former military are valuable, believes Isaac Oates, founder and CEO of Justworks, which features a platform that provides business owners with HR, benefits, payroll and compliance guidance. Prior to founding the company, Oates served 16 years in the military as an intelligence officer in the National Guard and Army Reserve.

“Active duty has its obvious stresses, but assimilating back into civilian life can provide a new set of anxiety-inducing events, which is where mentorship can be so valuable,” says Oates, who personally mentors a veteran. “When veterans are able to speak freely about challenges and hear advice from another veteran, who has already taken those steps, that helps with translating military skills and experiences into civilian language.”

For those veteran business owners looking for mentoring, including advice on running their own businesses, there are organizations such as Veterati, Stand Beside Them and eMentor.

Helping Veteran Business Owners Excel

According to the U.S. Small Business Administration’s (SBA) April 2017 report, “Veteran-Owned Businesses and Their Owners,”  veteran-owned small businesses employ 5.03 million people with an annual payroll of $195 billion and receipts totaling $1.14 trillion.

“Veteran business owners thrive,” says Wilson. “If you survived the war, you can do anything. Veterans just need some assistance and training.”

Many veterans possess skills, such as leadership, punctuality, discipline and the drive to succeed, but don’t realize how those skills will help them in the civilian world.

“Former members of the military are able to navigate high-pressure situations, deal with difficult issues and work on various teams, making them invaluable assets when working for or running a small business,” says Oates. “The military lives and breathes similar leadership development to what a civilian might get in an MBA program.”

Promoting Veteran Business Owners

A variety of organizations exist to help veterans draw from their vast talents in order to thrive in business and as business owners. These include Bunker Labs, which through local chapters across the U.S., provides access to resources and educational programming, as well as a network of military veterans succeeding at business.

Some organizations offer training programs to veterans, such as NS2 Serves. Founded in 2014, the nonprofit trains and employs veterans in high-tech careers. They can take advantage of a three-month, all expenses paid, in-residence training course each spring and fall. To date, more than 130 veterans have graduated from the program.

“I believe that a person’s character truly shines in the face of adversity,” says retired Vice Admiral Joseph Kernan, a 35-year U.S. Navy veteran and Chairman of NS2 Serves. “Veterans have the ability to overcome obstacles unlike anyone else, which is why NS2 Serves is equipping veterans with the technical skills needed to overcome the hurdles they face in their civilian lives.”

Patriot Boot Camp is another nonprofit that holds technology entrepreneurship boot camps designed to equip active duty military members, veterans and even their spouses with the education and resources to succeed as technology entrepreneurs.

Finding and Recruiting Veterans

Recruiting services specifically targeted to veteran business owners and potential employees are also springing up, such as Hire Served. “We are essentially a headhunter company looking to hire former military, firefighters and law enforcement,” says the company’s CEO, Jean South, who worked for nine years as an FBI Special Agent, has parents who are veterans and is married to a Marine.

“Our ideal client is a growing veteran business that wants to find veterans/former public servants,” says South. “We augment their existing recruiting efforts by translating the military language, culture and mindset. Private sector organizations that hire veterans and harness their skills, such as resilience and adaptability, see incredible outcomes for their businesses and their teams.”

Applicants Plus for Veterans is another agency connecting veterans with businesses. “As any entrepreneur knows, your company is only as good as the team around you,” says the company’s CEO Burton Roberts. “Veterans know this better than civilians, because of their time serving the country with other reliable, dedicated and hardworking teammates. Companies looking to hire can benefit from a pool of such talented veterans.”

Photo: Getty Images
Project Link
Date: July 3, 2017
© Julie Bawden-Davis

HOW INTEREST RATE HIKES MAY BENEFIT YOUR BUSINESS

The Federal Reserve recently approved its second rate hike this year. Learn some surprising ways that interest rate hikes can be a boon for your business.

JUNE 22, 2017

 

After nearly a decade of holding the interest rates close to zero in order to stimulate economic recovery, the Federal Reserve recently announced a rate hike of a quarter-point to 1.25 percent. This is the second time this year they’ve raised the rate, and they plan to continue gradual increases until interest rates reach 2 percent. While some believe that interest rate hikes could stymie business, there’s various reasons for business owners to celebrate rising interest rates.

Looser Lending Standards May Equal More Spending

“Banks are often the largest beneficiaries of higher rates,” says Steve Hovland, director of research for HomeUnion, a remote real estate investment marketplace. “From a pure cost-benefit standpoint, banks can loosen lending standards when there are higher interest rates.”

With interest rates higher, banks may be more likely to offer more funding options to businesses, because lending will have become more profitable for them—thus making lending more attractive.

If your company is stable and your competitors aren’t, the interest rate hike can give you the opportunity to acquire more market share and grow your business.

“Although more borrowers are likely to default on their purchases, the higher rates paid by other borrowers in that pool will offset the losses,” says Hovland. “This could lift spending among millions more Americans, including millennials.”

Higher interest rates may also benefit senior citizens living on fixed incomes. The rates are likely to result in such consumers getting more revenue from their investments, such as CDs, which can mean more spending at your business.

Interest Rate Hikes May Mean More Funding Options

When interest rates are as low as they’ve been in recent years, it can make for much tighter lending, because the potential profits are too low for financial institutions to take risks.

Alternative online lending has exploded because of this. Many of these loan providers are more lenient when it comes to lending to businesses, but as a tradeoff they offer loan products with extremely high interest rates. It might now be more possible to get a bank loan instead of paying double-digit online lending interest rates.

Rising Rates Could Lead to More Savings

If you’re a prudent business owner, you have liquid assets, such as a savings account. This gives you access to cash in the case of an emergency and/or if you wish to take advantage of an opportunity that calls for cash.

Low interest rates over recent years have created sluggish growth in many types of investments, including CDs. The rise in interest rates may give you a chance to build up your coffers.

More Competition May Mean Increased Performance

When interest rates rise, companies that are overleveraged and not performing as well as they should tend to feel the pressure. If your company fits this description, the rate hike can provide you with a wakeup call that can lead to some expense trimming and belt-tightening, which can result in a more profitable company. Tough times lead to creative solutions that you might not have reached for otherwise. Learning to operate on less helps boost innovation and keeps your business competitive.

If your company is stable and your competitors aren’t, the interest rate hike can give you the opportunity to acquire more market share and grow your business. You may even be able to lure away top talent from competitors, if conditions are right.

Higher Interest Rates Could Cause Raising Fees

The Federal Reserve generally raises interest rates in order to keep inflation down. When there is low inflation, there tends to be more capital for businesses to work with and as a result, prices for services and products tend to rise. This may mean that you can increase your prices.

When it comes to your business, you may want to ignore the doom and gloom regarding interest rate hikes. You may just find that the rate hikes will actually benefit your company.

Read more articles on financing.

Photo: Getty Images

The information contained herein is for generalized informational and educational purposes only and does not constitute investment, financial, tax, legal or other professional advice on any subject matter. THIS IS NOT A SUBSTITUTE FOR PROFESSIONAL BUSINESS ADVICE. Therefore, seek such advice in connection with any specific situation, as necessary. The views and opinions of third parties expressed herein represent the opinion of the author, speaker or participant (as the case may be) and do not necessarily represent the views, opinions and/or judgments of American Express Company or any of its affiliates, subsidiaries or divisions. American Express makes no representation as to, and is not responsible for, the accuracy, timeliness, completeness or reliability of any such opinion, advice or statement made herein.

Project Link
Date: JUNE 22, 2017
© Julie Bawden-Davis

How Interest Rate Hikes May Benefit Your Business

The Federal Reserve recently approved its second rate hike this year. Learn some surprising ways that interest rate hikes can be a boon for your business.
 
 

JUNE 22, 2017

After nearly a decade of holding the interest rates close to zero in order to stimulate economic recovery, the Federal Reserve recently announced a rate hike of a quarter-point to 1.25 percent. This is the second time this year they’ve raised the rate, and they plan to continue gradual increases until interest rates reach 2 percent. While some believe that interest rate hikes could stymie business, there’s various reasons for business owners to celebrate rising interest rates.

Looser Lending Standards May Equal More Spending

“Banks are often the largest beneficiaries of higher rates,” says Steve Hovland, director of research for HomeUnion, a remote real estate investment marketplace. “From a pure cost-benefit standpoint, banks can loosen lending standards when there are higher interest rates.”

 

With interest rates higher, banks may be more likely to offer more funding options to businesses, because lending will have become more profitable for them—thus making lending more attractive.

 If your company is stable and your competitors aren’t, the interest rate hike can give you the opportunity to acquire more market share and grow your business.

“Although more borrowers are likely to default on their purchases, the higher rates paid by other borrowers in that pool will offset the losses,” says Hovland. “This could lift spending among millions more Americans, including millennials.”

Higher interest rates may also benefit senior citizens living on fixed incomes. The rates are likely to result in such consumers getting more revenue from their investments, such as CDs, which can mean more spending at your business.

Interest Rate Hikes May Mean More Funding Options

When interest rates are as low as they’ve been in recent years, it can make for much tighter lending, because the potential profits are too low for financial institutions to take risks.

Alternative online lending has exploded because of this. Many of these loan providers are more lenient when it comes to lending to businesses, but as a tradeoff they offer loan products with extremely high interest rates. It might now be more possible to get a bank loan instead of paying double-digit online lending interest rates.

Rising Rates Could Lead to More Savings

If you’re a prudent business owner, you have liquid assets, such as a savings account. This gives you access to cash in the case of an emergency and/or if you wish to take advantage of an opportunity that calls for cash.

Low interest rates over recent years have created sluggish growth in many types of investments, including CDs. The rise in interest rates may give you a chance to build up your coffers.

More Competition May Mean Increased Performance

When interest rates rise, companies that are overleveraged and not performing as well as they should tend to feel the pressure. If your company fits this description, the rate hike can provide you with a wakeup call that can lead to some expense trimming and belt-tightening, which can result in a more profitable company. Tough times lead to creative solutions that you might not have reached for otherwise. Learning to operate on less helps boost innovation and keeps your business competitive.

If your company is stable and your competitors aren’t, the interest rate hike can give you the opportunity to acquire more market share and grow your business. You may even be able to lure away top talent from competitors, if conditions are right.

Higher Interest Rates Could Cause Raising Fees

The Federal Reserve generally raises interest rates in order to keep inflation down. When there is low inflation, there tends to be more capital for businesses to work with and as a result, prices for services and products tend to rise. This may mean that you can increase your prices.

When it comes to your business, you may want to ignore the doom and gloom regarding interest rate hikes. You may just find that the rate hikes will actually benefit your company.

Read more articles on financing.

Photo: Getty Images

The information contained herein is for generalized informational and educational purposes only and does not constitute investment, financial, tax, legal or other professional advice on any subject matter. THIS IS NOT A SUBSTITUTE FOR PROFESSIONAL BUSINESS ADVICE. Therefore, seek such advice in connection with any specific situation, as necessary. The views and opinions of third parties expressed herein represent the opinion of the author, speaker or participant (as the case may be) and do not necessarily represent the views, opinions and/or judgments of American Express Company or any of its affiliates, subsidiaries or divisions. American Express makes no representation as to, and is not responsible for, the accuracy, timeliness, completeness or reliability of any such opinion, advice or statement made herein.

Project Link
Date: JUNE 22, 2017
© Julie Bawden-Davis

WHAT WE CAN LEARN ABOUT HIRING FREELANCERS FROM NEW YORK CITY’S FREELANCE ISN’T FREE ACT

Hiring freelancers in New York City now comes with added responsibilities and penalties if you run afoul. See how such a bill could affect your business.

JUNE 19, 2017

 

Thanks to ever-improving technology, the ease of working wherever and whenever you want makes freelancing and hiring freelancers a popular option.

According to the Freelancing in America report commissioned by Upwork and the Freelancers Union and conducted by Edelman Intelligence, 35 percent of the U.S. workforce in 2016 was freelance and earned an estimated $1 trillion. And 63 percent of the 6,000 U.S. workers surveyed said they were freelancing by choice, not necessity—a jump of 10 percentage points since 2014.

Recognizing the growing freelance workforce and taking into consideration their special circumstances, New York City recently passed the Freelance Isn’t Free Act. Designed to protect freelancer’s rights and ensure they get paid in a timely manner, this act lays extra responsibility on employers to ensure that they comply with certain rules when hiring freelancers.

Hiring Freelancers Shouldn’t Be Free

The Freelance Isn’t Free Act protects freelancers by granting them the right to a written contract and to be paid in full for work worth $800 or more within 30 days. The legislation calls for employer penalties for any violations involved in hiring freelancers. Employers could even be fined $25,000 if it’s found that they have a pattern of not paying employees in a timely manner.

Opinions vary regarding the act and its effect on hiring freelancers in New York City. Employers who have freelanced themselves understand the challenges associated with going it alone.

Make your expectations known to the freelancer so that the work that’s completed is satisfactory. Give detailed instructions and examples, when possible.

“I’ve been on both sides of the table,” says Kristin Hege, president and co-founder of Wired PR Group. “Before I started my own agency, I worked as a freelancer. I lived by the 30-day rule, as most contractors do, and wouldn’t continue to do work for a client if the company went over 45 days. Most freelancing communities are tight-knit ones. You don’t want to be the company that has a reputation for not paying on time.”

If you want quality work done for your business by a freelancer, it’s important to pay on time, continues Hege. “You may be able to get 30 days out of them, but the best ones have a good client base going, so they’ll likely move on from you and tell others about it,” she says. “Freelancers should be given the same consideration as any other service, Do you want electricity? Pay your bill. Do you want great freelancers? Pay your bill.”

Yoni Levoritz, founder of the Levoritz Law Group, believes that the Freelance Isn’t Free Act is likely to prompt employers to hire freelancers from outside of the city.

“There are no pros to the law for employers, who are in danger of being fined up to $25,000 if they don’t pay for services, because freelancers are unhappy,” says Levoritz. “It’s a union-sponsored bill that uses legal fees as the sword to make employers pay for services that may very well be defective, but they’re too afraid to contest. It’s risky for business owners, because some lawyers will accept the case of an unhappy freelancer. The resulting legal fees will end up being in the tens of thousands for what could have initially been a very simple task.”

Tips for Hiring Freelancers

In order to prevent problems when hiring freelancers, here are some steps you should consider.

Be clear. Make your expectations known to the freelancer so that the work that’s completed is satisfactory. Give detailed instructions and examples, when possible.

Be realistic. Talk to the freelancer to ensure that your expectations are realistic. Open doors and pave the way so that when the person works for you, he or she can be successful.

Set a timeline. When everyone is on the same page regarding timing of the project, the freelancer is likely to complete the work as expected.

Communicate effectively. Whether you talk via phone, email or video, it’s critical that you understand one another. It’s hard to have a productive working relationship when there are unanswered questions and concerns.

Start slow. Rather than starting by giving the freelancer a large job with a lot of responsibility, have the person complete a minor task. That way if you’re not happy you haven’t invested much time or a great deal of cash. Small jobs will teach you how the freelancer performs under various circumstances.

Encourage feedback. Help make the process of hiring freelancers and working with them even better by encouraging feedback. Ask for their perspective of what it’s like working for you, including any improvements that could be made and what they liked best.

Photo: Getty Images
Project Link
Date: JUNE 19, 2017
© Julie Bawden-Davis

What We Can Learn About Hiring Freelancers From New York City’s Freelance Isn’t Free Act

Hiring freelancers in New York City now comes with added responsibilities and penalties if you run afoul. See how such a bill could affect your business.

 

JUNE 19, 2017

Thanks to ever-improving technology, the ease of working wherever and whenever you want makes freelancing and hiring freelancers a popular option.

According to the Freelancing in America report commissioned by Upwork and the Freelancers Union and conducted by Edelman Intelligence, 35 percent of the U.S. workforce in 2016 was freelance and earned an estimated $1 trillion. And 63 percent of the 6,000 U.S. workers surveyed said they were freelancing by choice, not necessity—a jump of 10 percentage points since 2014.

 

Recognizing the growing freelance workforce and taking into consideration their special circumstances, New York City recently passed the Freelance Isn’t Free Act.  Designed to protect freelancer’s rights and ensure they get paid in a timely manner, this act lays extra responsibility on employers to ensure that they comply with certain rules when hiring freelancers.

Hiring Freelancers Shouldn’t Be Free

The Freelance Isn’t Free Act protects freelancers by granting them the right to a written contract and to be paid in full for work worth $800 or more within 30 days. The legislation calls for employer penalties for any violations involved in hiring freelancers. Employers could even be fined $25,000 if it’s found that they have a pattern of not paying employees in a timely manner.

Opinions vary regarding the act and its effect on hiring freelancers in New York City. Employers who have freelanced themselves understand the challenges associated with going it alone.

 Make your expectations known to the freelancer so that the work that’s completed is satisfactory. Give detailed instructions and examples, when possible.

“I’ve been on both sides of the table,” says Kristin Hege, president and co-founder of Wired PR Group. “Before I started my own agency, I worked as a freelancer. I lived by the 30-day rule, as most contractors do, and wouldn’t continue to do work for a client if the company went over 45 days. Most freelancing communities are tight-knit ones. You don’t want to be the company that has a reputation for not paying on time.”

If you want quality work done for your business by a freelancer, it’s important to pay on time, continues Hege. “You may be able to get 30 days out of them, but the best ones have a good client base going, so they’ll likely move on from you and tell others about it,” she says. “Freelancers should be given the same consideration as any other service, Do you want electricity? Pay your bill. Do you want great freelancers? Pay your bill.”

Yoni Levoritz, founder of the Levoritz Law Group, believes that the Freelance Isn’t Free Act is likely to prompt employers to hire freelancers from outside of the city.

“There are no pros to the law for employers, who are in danger of being fined up to $25,000 if they don’t pay for services, because freelancers are unhappy,” says Levoritz. “It’s a union-sponsored bill that uses legal fees as the sword to make employers pay for services that may very well be defective, but they’re too afraid to contest. It’s risky for business owners, because some lawyers will accept the case of an unhappy freelancer. The resulting legal fees will end up being in the tens of thousands for what could have initially been a very simple task.”

Tips for Hiring Freelancers

In order to prevent problems when hiring freelancers, here are some steps you should consider.

Be clear. Make your expectations known to the freelancer so that the work that’s completed is satisfactory. Give detailed instructions and examples, when possible.

Be realistic. Talk to the freelancer to ensure that your expectations are realistic. Open doors and pave the way so that when the person works for you, he or she can be successful.

Set a timeline. When everyone is on the same page regarding timing of the project, the freelancer is likely to complete the work as expected.

Communicate effectively. Whether you talk via phone, email or video, it’s critical that you understand one another. It’s hard to have a productive working relationship when there are unanswered questions and concerns.

Start slow. Rather than starting by giving the freelancer a large job with a lot of responsibility, have the person complete a minor task. That way if you’re not happy you haven’t invested much time or a great deal of cash. Small jobs will teach you how the freelancer performs under various circumstances.

Encourage feedback. Help make the process of hiring freelancers and working with them even better by encouraging feedback. Ask for their perspective of what it’s like working for you, including any improvements that could be made and what they liked best.

Photo: Getty Images
Project Link
Date: JUNE 19, 2017
© Julie Bawden-Davis

HOW YOUR COMPANY CAN ATTRACT TOP-NOTCH EMPLOYEES

A recent Department of Labor survey found the pool of qualified workers is shrinking. Learn tips for how you can attract employees to your business. JUNE 13, 2017
It seems like business owners are wondering how to attract employees. According to a recently released Job Openings and Labor Turnover Survey (JOLTS) by the US Department of Labor, though job openings increased by 259,000 by the last business day in April 2017, hiring decreased by 253,000 jobs. While these statistics seem counterintuitive, they point to a growing lack of qualified workers, reports the National Federation of Independent Business (NFIB) Research Foundation. According to their May 2017 report, the number of small-business owners reporting that they had job openings that couldn’t be filled was the highest since 2001. (The NFIB monthly survey randomly samples 10,000 small-business owners who are members of the NFIB.) The gig economy is playing a large role in the current tight labor market, believes career expert Nick Murphy, CEO of Mid-America Careers, a job search and placement company for the Midwest. “Companies like Uber, Lyft and Postmates are advertising their opportunities at scale,” says Murphy. “As more and more employees have the ability to supplement—or replace—their low-paying day jobs through freelancing, small and mid-sized employers will feel the pressures of the tightening labor market.” If these trends continue, small-business owners may find the landscape increasingly more competitive for hiring talented workers with the appropriate skills. To attract and convince qualified workers that your business is where they want to land, try these often overlooked tactics.

1. Write an enticing job description to help attract employees.

First impressions count for job seekers. How you present your company and the position you want to fill greatly affects whether potential employees will give your company a second look. Using an active voice and descriptive terms can highlight the benefits of the position. Consider focusing on the required skills the person needs and describing the environment in which the potential employee will work.

2. Be clear about your company mission.

Today’s workers, many of whom are Millenials, are interested in the company’s mission and any causes for which the business crusades.
When you focus on hiring people with the right personality and attitude, it feeds the heart of a productive culture.
—Manley Feinberg II, author
Having a well-articulated statement about how your company plans to change your industry and the world may elicit some interest from potential employees during the hiring process.

3. Toot your company’s horn.

When interviewing, consider informing candidates of your company’s successes. You may want to emphasize how employees contributed to the accomplishments and how everyone in the business benefited from those wins. If the person you’re considering hiring is well-suited for the position, this may excite him or her about the possibilities of working for you.

4. Emphasize flexibility and family-friendly benefits to help attract employees.

Many of today’s talented workers want to know that any company they work for is open to bending to life’s personal demands on occasion. Knowing that their family is covered—with health and life insurance, a retirement savings plan and innovative leave policies—can encourage people to give your company a try.

5. Pay competitive wages.

“Companies willing to pay reasonable wages are seeing less of a labor shortage than those organizations that have kept wages flat,” says Murphy. “In order to attract skilled employees—and retain them—companies must know what their competitors are offering and create meaningful and market-driven employment agreements. “Companies that can’t or don’t offer competitive packages are losing workers to the gig economy,” he continues, “which tends to be providing higher hourly wages, maximum flexibility and truly customizable scheduling.”

6. Focus on interpersonal skills and personality traits.

“During hiring, while many business owners focus on the challenge of finding employees with superior skills, what undermines a company’s productivity and profitability even more is the lack of candidates with solid interpersonal skills and the right personality traits,” says speaker and author Manley Feinberg II, who wrote Reaching Your Next Summit! “When you focus on hiring people with the right personality and attitude, it feeds the heart of a productive culture,” says Feinberg. “This attracts more engaged and ambitious employees who want to be challenged and part of an environment where they can contribute to something meaningful.” Feinberg asks behavioral interview questions during the interview process. These questions offer a bird’s-eye view of a potential employee’s personality and their attitude in the face of adversity. “In order to assess how the person stands up to challenges, I’ll ask questions like: ‘Tell me of a time when your life or work was especially difficult and exactly what you did about it.'”

7. Offer on-the-job training to attract employees.

“Most industries are looking to higher education as a means to train the workers with the skillsets they need, but in reality, it’s impossible for a curriculum to get approved and implemented quickly enough to keep up with today’s fast-paced industries,” says Justin Gray, CEO and co-founder of Six Bricks, a career-based learning platform. It can take a blend of learning and practical experience for potential employees to be ready for many positions. “This means employers need to step up their game in terms of internships, apprenticeships and teaching real-world problem-solving,” says Gray. If it’s clear during an interview that a person is a good fit for your company but doesn’t have the appropriate skills, perhaps inquire if they’d be open to training. Though it can take extra work to get someone up to speed, it can help save you time and money in the long run. Employees you train tend to be well-suited for your company.
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IS IT TIME FOR A BUSINESS PIVOT?

Industry trends may suggest you’re in need a of a business pivot. These tips can help you identify the signs that signal a change is necessary. JUNE 12, 2017
Pottery Barn recently experienced a sales slum that led the company to pinpoint the problem. Turns out their once well-selling large furniture pieces didn’t fit in the tighter living spaces of tiny millennial apartments. Following that revelation, the company made a business pivot and introduced smaller furniture pieces. Similarly, Staples, in response to shrinking retail sales, recently pivoted from its longstanding approach as a low-priced office supplier to a company that offers co-working space and supply delivery. Whether it’s welcomed or not, successful company owners know that making a business pivot can be necessary to survival and a natural part of building a business, believes investor and serial entrepreneur Wesley Virgin. “Business owners should anticipate trends because buying behavior is dynamic,” says Virgin. “Many conventional, brick-and-mortar businesses mistakenly believe that customer behavior won’t change and people will continue to buy like they did 10 years ago. As you can see with Pottery Barn and Staples, this is far from the truth. Business owners would be wise to pay close attention to customer buying behavior and do business pivots if they see buying behavior shift.” “Markets and consumers constantly evolve,” says Ross Kimbarovsky, founder and CEO at crowdSPRING, a marketplace for crowdsourced logo, web and graphic design and company naming services.
Smart companies regularly experiment with their marketing and with product mix in order to identify and anticipate trends in their markets.
—Ross Kimbarovsky, founder, crowdSPRING
“Years ago, companies like Xerox, Polaroid and Nokia lost substantial market share and revenue because they didn’t anticipate changing trends in their markets,” Kimbarovsky continues. “Today, we’re seeing some companies suffer the same fates, while others are responding to trends and thriving.”

Spotting the Trends That Require a Business Pivot

Identifying and anticipating trends your market makes may improve your chances of rallying and doing a business pivot before losing sales. “Smart companies regularly experiment with their marketing and with product mix in order to identify and anticipate trends in their markets,” says Kimbarovsky. “Without such experiments, it’s difficult to tell the difference between trends and fads. They both look alike in the beginning, but fads are momentary, whereas trends gain power over time.” Using these tactics can help you identify the trends that may require your company to make a pivot.

1. Collect and analyze existing information.

“Stay aware of the changes affecting the business landscape, your customers, your competitors and your brand,” says Larry Light, co-author of Six Rules for Brand Revitalization and CEO of Arcature, a marketing consulting company. “Identify changes in consumer behavior, attitudes, opinions and values.” To collect information, you can search your industry on Google Trends, adds Virgin. “On Google Trends, you can see actual data of where your customers’ current attention is focused. Look at your competition and new companies attempting to take a share in your niche.”

2. Gain insight from your data.

“Truly understanding trends requires more than information, it calls for insight,” says Light. “Information answers what and insight helps you understand why. Informed insight is not guesswork. Insight means seeing below the surface of information. This necessitates synthesizing in addition to analyzing. Analysis looks backward, but business strategy is about looking forward.” You know you’ve gained insight from analyzing data when you’re surprised at what you’ve learned and are motivated to change behavior based on the learning, explains Light. “An insight is a fundamental consumer truth that has the power to open our eyes. It’s relevant, recognizable, actionable and capable of building business for the long-term and will allow you to successfully maneuver a business pivot.”

3. Ask customers to tell you their problems.

“To help anticipate trends, rather than asking people what they want, find out what troubles them,” says Light. “Many customers don’t know what they want, but they love to complain. Ask about their concerns. The problems of today are the foundation for the innovations of tomorrow.”

4. Listen.

“To understand trends, you must understand your consumers,” says Kimbarovsky. “The better you understand them, the easier it will be for you to adapt to changing trends. Listening doesn’t mean that you implement every feature requested by users or start building requested products. Listening means understanding what people are talking about and why they’re talking about these things. If you stop listening to the market, you become irrelevant.” Virgin agrees. “Never think you know everything about your business,” he says. “Close your mouth and listen to the chatter of what’s going on in your niche. Go to conferences and seminars, and you’ll discover new innovations that you can be one of the first to capitalize on.”

5. Consider the “what ifs.”

“If you play chess, you know what this means,” says Kimbarovsky. “Every move is met with an opposing move. The best chess players can consider many moves ahead and anticipate their opponent’s moves. Smart businesses do the same, which allows them to make successful, timely business pivots.” Read more articles on industry trends.
Photo: Getty Images