DECEMBER 23, 2016

As you review and assess your business over the past year, your first thought may be on profits. While analyzing your sales and cash flow is important, when it comes to year-end reviews, you may want to look at the overall big picture. There are a variety of minor pieces of the puzzle that can make a big difference in whether your company is successful.

“A business can be looked at as a well-oiled machine,” says Hillel L. Presser, president of the Presser Law Firm and author of Asset Protection Secrets. “If one piece or part is broken, the entire machine doesn’t work. Many business owners focus way too much on the minute details of their businesses and fail to see the larger picture. The goal for every business is to offer the best merchandise or service. In order to do so, every procedure and method should ideally be completely streamlined.”Evaluating the whole picture is important, agrees business and personal development expert Douglas Vermeeren.“My business is working with speakers and coaches,” Vermeeren explains. “Most of them focus much of their efforts on presentation skills and neglect the balance of their businesses. Many people in the service industry approach things in the same way, focusing mostly on what the customer sees. A business can be compared to an iceberg. The majority of what makes the iceberg is never visible to the observer. Your business cannot be successful if you focus only on cosmetics, rather than the whole iceberg.”

When conducting a year-end review, consider the following vital business components to help you look at the big picture.

Examine Sources of Business

During a year-end review, you may want to take a close look at the origin of your business. “Review not only overall numbers, but particularly where business comes from—namely referrals,” suggests professional photographer Everardo Keeme. “I want to know, and then reward, those who refer me. I do this from two aspects. I look at who referred me the most often and who gave me the best referrals—so quality and quantity.”

You may also want to identify where the year’s most profitable transactions came from during a year-end review, concurs Vermeeren. “Look carefully at how and where you found the clients who created those lucrative transactions and what made them work so well,” he says. “Your best transactions are what make your company more profitable. Having a clear view of what those transactions were and how they came about will give you the ability to create more of them over the coming year.”

Consider Costs Versus Pricing

In a rush to consider profits and overall sales, it’s not uncommon for business owners to overlook the important details of how much you’re spending versus how much you’re charging. “Remember to review your costs, such as vendors and materials, and revise pricing sheets and product menus accordingly,” advises Keeme.

“Your business may not have the volume to sustain a shrink in cost of goods versus profit margin,” Keeme continues. “While reviewing this [ratio] should ideally be done several times a year, it’s especially important to complete this task at year end when you have all of your sales and costs together and can evaluate a true average from month to month.”

Evaluate and Gather Your Team

The end of the year can be an ideal time to take a close look at your employees and evaluate their performances. When doing so, you may want to take their contribution to company profits over the last year into consideration. Also consider analyzing if their work performance and attitude dovetail with your company’s goals and mission. If you discover that there are employees lacking in performance or buy-in, you can then make plans for addressing this issue.

You may also want to look at your overall business team and ensure that your company is well-protected, advises Presser.

“See that you have the necessary experts on your team,” Presser says. “The year end is a good time to meet as a group and get on the same page. Doing this could save you substantial money in the future.”

Examine Everyday Processes

“Now is a great time to take note of what’s working and what’s not within your everyday processes,” suggests Nick Candito, CEO and founder of Progressly, a centralized platform for business processes.“Companies today are burdened by siloed, difficult-to-use business systems that complicate processes and hamper operations, and such [inefficiencies] can cause a reduction in revenue,” says Candito. “Yet many companies continue to ‘make do’ with their current applications and systems even though these solutions may not be right for them. Rather than continuing to use antiquated business process solutions, consider a single system of record to achieve transparency, streamline communications and manage performance.”

After a year-end review and before the start of a new year can be an ideal time to streamline everyday processes, agrees Jesse Wood, CEO of eFileCabinet, a document management software vendor.“Businesses are creating more data and information than ever, and the trend will only intensify in 2017,” Wood says. “Although unprecedented data acquisition and creation is good, it incurs significant operating expenses when businesses attempt to leverage information through traditional, paper-dependent methods. Going paperless and relying on document management technologies to facilitate collaboration and data storage can help.”

Ask, “Am I Having Fun Yet?”

Although this may not occur to you as you work hard to ensure that the year ahead is a profitable one, it helps to remember why you went into business for yourself in the first place, encourages Keeme.

“Review how much time you actually took off this past year,” he says. “Many business owners start their own companies for the freedom and independence it gives them. If you’re working harder, longer and more often and not enjoying time off with friends and family and doing things you enjoy, the year end gives you an opportunity to evaluate why you’re doing what you’re doing and how you can meet your personal goals in the coming year.”

Read more articles on planning for growth.

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AUGUST 26, 2016 As college students head off to school across the nation, it’s getting harder for retailers to ignore student loan debt. America’s student loan debt—which is currently more than $1.2 trillion, according to the Federal Reserve—may put a damper on spending for years to come.“Many young people are facing a college debt load that feels like an elephant is standing on their chests,” says Joseph Michelli, author and CEO of The Michelli Experience. “They watch a large portion of their income pass through to service their student loans. Not only are they feeling the pinch in terms of greatly reduced discretionary income, they see their repayment terms as eternal.”

Student Loan Debt Affects Everyone

Student loan debt is everyone’s problem, believes Michael Houlihan, founder of Barefoot Wines. “What if you gave a back-to-school sale and nobody came? That’s what retailers face this year as many college students and graduates face the frugal realities of their college debt,” he says. “Just like the stock market and housing sector collapse in the last recession, a major segment of the economy is beginning to buckle: 20 to 30-year-olds saddled with high levels of student debt, who have started cutting back on retail spending when this would historically be their most productive and strongest time to contribute to our economy.”

This massive student loan debt, combined with the increased cost of living, can have an incredible effect on the buying power of the millennial generation, notes Alyssa Selogie, digital marketing and social media strategist with Madison Consulting. “Because the amount of expendable income is often minimal among the younger generation, businesses have to compete more and fight harder to attract new customers and maintain current ones.”While the student loan debt does cut back on the younger generation’s buying power, Selogie believes that these economic conditions may benefit small-business owners over their big-box competitors. “Small businesses are able to adjust and change directions [more quickly],” she says. “Additionally, millennials seem to prioritize value and experiences over consumer goods or cookie-cutter services, which may make a local small business seem more attractive.”

Marketing to Cash-Strapped Millennials and Generation Y

Today’s student-loan-burdened generation may not be as quick to open their wallets. But you may still be able to get some of their limited business by keeping these tips in mind.

Be aware. “As business owners, it’s critical to understand the sensitivities and realities of the customers we serve,” says Michelli. “This goes well beyond the emotional and practical pain of monstrous student loan payments. It really is at the core of how we should approach all business decisions. What are the unique wants, needs, desires and concerns of core and emerging customer segments? How do you take their experiences [and] challenges, and present your offerings and their benefit in a way that addresses their needs?”

Empathize. Empathy for the financial struggles that the younger generation faces may be an effective marketing strategy for a small business, notes Rafael Ilishayev, co-founder of goPuff, an on-demand delivery app. “Empathy is not just emotion; it leads to effective business strategy. Small businesses that curate relevant advertising and social media, offer friendly service and don’t feel corporate will indubitably connect to the younger generation in a much more organic way.”Get creative. There may be an opportunity for small businesses to get creative in their marketing and customer outreach, believes Selogie. “Targeted ads with messaging related to the struggles of student loan debt, especially those that are able to put a comical spin and positive light on it, could do well,” she says. “Millennials are aware of the uphill battle they face, so a sale or promotion that makes them laugh or is entertaining will certainly catch their eye.”

Make it convenient. “Buying power in 2016 is not just a matter of price—it’s a matter of speed and availability,” says Yakir Gola, goPuff’s co-founder. “Small businesses that cater to millennials must adapt to any financial environment and not only offer competitive pricing, but a competitive experience. What they ask of the client in price they must return to the client in time and convenience to create meaningful, lasting relationships that transcend today’s taxing financial environment.”

Avoid overselling. “Small-business owners can demonstrate their awareness of the needs of millennials by welcoming ‘budget friendly’ purchases and not trying to oversell in ways that would further ensnare those customers in a credit trap,” says Michelli.

“Many millennials will flee businesses that encourage them to ‘go ahead and get it…no matter how much it will put you in debt,’” she continues. “I recommend small business respect budgets and the sensibilities of the next generation. Businesses who build relationships with debt-burdened customers have to think less about driving higher sales per transaction and more about how to maximize frequency of visits over a customer’s lifetime.”

Go the extra mile. You may want to cater to a millennial’s desire to make everything an experience and get a great value for the money being spent, says Selogie. “When someone is living on a budget, especially one constrained by debt, there is a greater need to justify any non-essential expenses,” she says. “Adding extra levels of customer service to enhance the experience a shopper or patron encounters; having a strong presence on mobile devices and social media; and keeping branding, marketing and decor all young, fresh and simple will all increase a small business’s chance of appealing to the younger generation.”

Be real. Millennials don’t have extra cash to throw around, and “when we do, we are smart about it,” notes Tyler Drew, owner of Anubis Properties. “If your business and your business practices are anything less than pristine, we will find out. We know when we are being overcharged or underserved, and we can review your business online before we even step foot through the door. Our money, and more importantly, our time are much more valuable to us. If you are charging more for a service, we want to know what we’re going to get out of it.”Watch pre-planned marketing. “We are the first generation to be directly targeted for products,” says Drew. “I know a badly marketed product when I see it, and I am much more likely to purchase from smaller, privately owned shops than big box stores. I want to know that a human built whatever product I am buying and that my money is going to a decent cause. I’d rather have a personalized experience, not a cookie cutter one.”

Assist employees with student loan debt. If you have valuable employees burdened with student loan debt, instead of paying to further their education, consider offering to assist in paying off the student loan debt, suggests Alexander Joyce, president and CEO of ReJoyce Financial LLC. “For a young person starting a career, freeing up income and planning the future is high on the priority list. This is something that will win you loyal employees.”

For more tips on how to keep customers engaged, access 4 Growth Hacks for More Engaged Customers, with insights from CEO of Growth Hackers, Sean Ellis.

Read more articles on customer engagement.

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SEPTEMBER 02, 2016 As open enrollment for health insurance approaches later this year—and some insurers plan to leave the Affordable Care Act marketplaces

—providing employees with health insurance is becoming increasingly complicated.“The group health plan marketplace for smaller and mid-sized employers has become more unstable and expensive due to general uncertainties about the future of health care reform and the lack of competition among traditional insurance companies,” notes Michael Ferguson, president & CEO of the Self-Insurance Institute of America, Inc.

(SIIA). The result of this uncertainty is that some businesses are considering and adopting self-insurance.

“In recent years, traditional health insurance sources have been drying up, particularly for small businesses with 50 or fewer employees,” says Ernie Clevenger, president of CareHere LLC, a company that self-insures for medical insurance.“With some insurance companies reviewing or pulling out of exchanges, the supply of health insurance is decreasing. Meanwhile, demand for health insurance is increasing, particularly as the Affordable Care Act’s penalties for businesses that fail to provide insurance increase,” says Clevenger. “With supply down and demand up, the price of conventional insurance is rising. Consequently, many small businesses are exploring alternative benefit arrangements, including self-insurance, that allow them to provide high-quality benefits and avoid the volatility in the conventional insurance market.”

Kate Amdor is manager, compensation and benefits for Telligen, Inc., which also self-insures. “The traditional health insurance approach for small-business owners is to work with a broker to develop a financial plan, which is typically a fully-insured product,” she says. “Unfortunately, like with most insurance products, business owners find they eventually pay more than their expected losses.”Facing what Amdor believes to be double-digit premium hikes year after year and increasing related fees that threaten profits, many small-business owners are increasingly considering self-funding their health plans, backed by stop-loss insurance for large claims. “It’s a calculated risk, but done the right way, self-funding a health plan with stop-loss coverage typically costs less than fully-insuring the plan, over time,” says Amdor.

How Common Is Self-Insuring?

Self-insuring is not new and more popular than might be expected. According to The Kaiser Family Foundation/Health Research & Educational Trust 2015 Annual Employer Health Benefits Survey (Kaiser/HRET)

from a telephone survey of 1,997 randomly selected public and private employers with three or more workers, 17 percent of workers with insurance at small firms are enrolled in plans that are partially or completely self-funded. Overall, 63 percent of workers are enrolled in self-funded plans. Of those 63 percent, 60 percent also have what is known as stop-loss coverage, which is additional insurance in the case of high claims.

What Are the Benefits of Self-Insuring?

According to those companies that have gone the self-insurance route, there are a variety of good reasons to self-insure.

“The three main benefits of self-insurance involve cost, control and access to data,” says Ferguson. “Well-run self-insured group health plans are generally more cost-effective over time when compared to traditional insurance arrangements, although year-to-year experience often varies. Employers that self-insure also maintain control of how their health plan is structured, which contrasts with standardized plans sold by insurance companies. Self-insured employers are also able to access their own claims data, subject to certain HIPAA restrictions, which allows for greater efficiency in plan management.”

Self-insurance may also allow companies to provide more comprehensive and customized benefits for their employees designed to increase overall health, which can save money in the long run.

“Because employers are directly responsible for the cost of their employees’ care, they have a significant incentive to invest in their employees’ health,” says Clevenger. He notes that employers are increasingly offering employees innovative options for receiving care, like free medical center clinics within the workplace and access to data analytics software that identifies potentially costly health risks so that early intervention is possible.

“Providing services that allow employees to truly improve their health is an ideal way for small-business owners to decrease healthcare costs in the long-run,” agrees Amdor. “Good claims years when claims expenses run lower than expected allow the business owner to create reserves for the tougher years.”

What Are the Drawbacks of Self-Insuring?

There are, of course, cons to self-insuring, and self-insurance isn’t for every business, believes Ferguson. “Clearly, one of the main considerations is understanding that when you are self-insured, you’re on the hook to pay claims as they are incurred. Some of these claims may be large. Even though most employers purchase stop-loss insurance as a financial backstop, employers need to understand this obligation.”

Business owners new to self-funding must have the “stomach for the years in which the health claims they pay are higher than expected,” says Amdor. “If they haven’t yet built up good reserves, claims expenses may affect their financial performance.”

Clevenger agrees. “The biggest possible con of self-funding is that it requires businesses to have an understanding of the risk they’re taking on. By self-funding, firms assume responsibility for the financing of their employees’ health care. They must take that responsibility seriously.”

There is also a substantial time commitment involved in reviewing and analyzing plan performance. “The best-run self-insured health plans are monitored by the company’s executive team,” says Ferguson. “Self-insurance should not be seen as a simple, one-time business decision that can be ignored later on.”

How Can You Successfully Self-Insure?

In order to decide if self-insuring is right for your business, Clevenger suggests conducting a side-by-side comparison of the annual cost of a fully insured plan with the annual cost of a self-funded plan and then projecting that comparison five years out into the future. Third-party administrators, including health benefit brokers or consultants, can run models to project costs under a self-funding arrangement versus your current fully insured plan.

If you’re interested in self-insurance, seek out knowledgeable brokers, consultants and/or third party administrators who can thoroughly evaluate this option. “Confirm that such advisors have successful experience with self-insured plans,” advises Ferguson, who notes that a listing of advisors can be found on www.siia.org. Read more articles on healthcare.

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The information contained in this article is for generalized informational and educational purposes only and is not designed to substitute for, or replace, a professional opinion about any particular business or situation or judgment about the risks or appropriateness of any financial or business strategy or approach for any specific business or situation. THIS ARTICLE IS NOT A SUBSTITUTE FOR PROFESSIONAL ADVICE. The views and opinions expressed in authored articles on OPEN Forum represent the opinion of their author and do not necessarily represent the views, opinions and/or judgments of American Express Company or any of its affiliates, subsidiaries or divisions (including, without limitation, American Express OPEN). American Express makes no representation as to, and is not responsible for, the accuracy, timeliness, completeness or reliability of any opinion, advice or statement made in this article.

SEPTEMBER 09, 2016 With Microsoft taking its HoloLens

holographic goggles on the road this month, it seems like the future is here. With access to concepts such as interactive holographic computers and 3D printing, small-business owners can take advantage of futuristic technologies that were merely fantasy just a few short years ago.“Of course, small businesses may not have the deep pockets to experiment with new technologies or [have] the relationships with government agencies where many new technologies are birthed, but they can certainly be fast followers and adopters of technology—more so than large businesses,” believes Patrick J. Stroh, owner of Mercury Business Advisors.Understanding that the only constant is change can be a key to success, notes Mayur Ramgir, developer of business management platform Clintra. “We have never really been able to predict where the future will go, but we have always known that it will be different from where we are right now,” he says. “This isn’t a new phenomenon. Businesses have had to deal with the influx of new technology for centuries. What has changed is the pace of development.”

Changes in technology are the new constant, agrees Stroh. “Expect technological changes and learn how to systematically monitor and manage those changes and their applications on a regular basis. Otherwise you are likely to fall behind.”

Embrace technological changes, and you may be able to get ahead of the game, believes Christian Cordoba, a founding partner at California Retirement Advisors. “The key is to evaluate what is happening and apply what we learn to change along with it and keep moving forward.”Here are some promising new technologies that are changing or will soon change the small-business landscape.

Holographic Telepresence

Teleconferences from across town or across the world are becoming more common, and holographic technology may be an integral part of these meetings in the not-too-distant future. The technology can be used to project lifelike images of people, as well as objects like products and prototypes.

Big Data

Large data sets known as big data have been analyzed by large companies in order to look for trends, patterns and associations in business for some time now. “The recent rise of cloud services has made big data analytics and processing available to small businesses,” says Ragmir. “Technologies like Microsoft’s Cortana and IBM’s Watson can now be accessed by anyone through cloud platforms at moderate costs. This will help small businesses make better marketing decisions in the future.”

3D Printing

“3D printing has been on the horizon for more than a decade, but the technology is finally reaching a phase of maturity,” says Ramgir. “The availability of 3D printers has vastly improved and the cost of the printing materials has gone down as well. 3D printers will open a whole new industry for small businesses.”

Stroh believes that 3D printing levels the playing field between large and small businesses. “This type of printing allows for hyper-fast prototype development and multiple scenario tests that would have taken months and thousands of dollars in the past and now just a day,” he says. “When you link this with getting instantaneous feedback via social media on product development and new feature additions to your products, you can get very fast and inexpensive feedback on your developments without wasting precious resources.”

Fintech

Short for financial technology, fintech along with the internet of things, which refers to the integration or networking of various tools and products, continues to provide the largest advancement opportunity for business owners, believes Cordoba. “The regulatory rules in the financial world are changing and so are the demands by consumers, especially within the millennial generation. Faster, more seamless access to financial resources is evolving without the inconvenience and waste of time that comes from physically getting yourself to a brick and mortar location. We’re seeing the beginning of the S-curve slope already with crowdfunding and lending, but will continue to see it change more mainstream with banking, insurance and other areas.”

The Sharing Economy

“Uber, Airbnb and Lyft are all companies that have become successful focusing on the ‘sharing economy,’” says Ramgir. “Consumers today are much more comfortable with renting things instead of owning them, and this can work with pretty much every non-consumable product out there.”

For more tips on expanding your business, access Business Growth: How to Survive and Thrive, from MSNBC’s Your Business.

Read more articles on innovation.

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SEPTEMBER 16, 2016 Business owners know that diversity can lead to a dynamic work environment. Gender and racial diversity are a given today, but have you also considered neurodiversity when hiring? Incorporating the talents of individuals with neurological differences, such as autism, and having a neurodiverse workplace may benefit your business.“Everyone is unique in the skills and qualities they can bring to a business,” says Lauren Callaghan, clinical psychologist and co-author of Pulling the Trigger: The Definitive Survival and Recovery Approach for OCD, Anxiety, Panic Attacks and Related Depression. “I would encourage businesses to welcome neurodiverse individuals and keep an open mind regarding what they can contribute.”

Potential Benefits of a Neurodiverse Workplace

As business owners who incorporate neurodiversity into the workplace discover, employees with conditions such as autism can bring new ways of thinking with them. These different perspectives can lead to innovative and creative work.

“There are a number of benefits to hiring individuals with neurological differences,” says Elaine Fogel Schneider, author of 7 Strategies for Raising Calm, Inspired & Successful Children. “Such individuals often possess valuable talents and skills, such as attention to detail and the ability to be methodical, which are highly valuable attributes when it comes to jobs that involve technology.”Other benefits of hiring individuals with neurological differences like autism can include the fact that many such employees are driven to complete tasks, notes Fogel Schneider. “Often employees with neurological differences are dedicated to work on problems until they’re resolved. They also tend to be loyal employees.”

Challenges of Creating a Neurodiverse Workplace

But creating a neurodiverse work environment is not without its hurdles.

“Neurodiverse individuals can become overwhelmed and anxious and need encouragement to succeed,” says Fogel Schneider. “In addition, not all people on the autism spectrum have the verbal skills necessary for self-expression. Many also experience reduced intermittent eye contact and a rapid speech pattern that may be tangential to a topic—both of which affect the way interaction occurs with fellow employees and management.”

In order to have a neurodiverse workplace, experts advise that steps be taken during the interview and onboarding processes.

Tips for Interviewing Individuals With Neurological Differences

Given the nature of neurological conditions such as autism, consider making accommodations during the interview process, such as the following:

• Avoid expecting direct eye contact. “People on the spectrum may not be able to give you a direct gaze,” says Fogel Schneider. “They often report that it’s too stressful to stare directly into someone’s eyes during an interview. They may need to look at another point on the face, such as the mouth, or at their own lap.”
• Don’t ask for self-expression and social fluency. “Avoid requiring individuals with autism to talk about themselves,” says Fogel Schneider. “It may be difficult for such a person to form a response, for instance, if you ask why he or she would make a good employee.”
• Offer frequent breaks. If it becomes clear that the interviewee needs a few moments, allow for this during the interviewing schedule.
• Encourage non-verbal responses. If verbalizing is difficult, allow interviewees to show you how they work. “Ask [individuals with autism] to perform tasks or take technical tests, and you’ll discover a great deal about their social adaptations, levels of perseverance and work ethics,” says Fogel Schneider.

Creating a Supportive Environment for Neurodiversity

“A small business is like a family and thrives on the uniqueness and achievements of its employees,” says Fogel Schneider. “The idea of hiring a neurodiverse person might be overwhelming for a small-business owner and employees, who are often wary of things they don’t understand.”

To assimilate neurodivergent individuals into your business so they can be accepted and understood, consider trying the following tactics.

Educate. A little knowledge can help with increasing awareness. Consider holding training workshops on neurodivergence and offer information about autism. Inform employees about the autism spectrum, including reasons for behaviors and ways to help relieve anxiety if it crops up. Letting employees who have lived with a family member with autism share their stories and advice can also be a form of education.

Hold sensitivity trainings. “Educate employees about the thinking and behavior of neurodiverse individuals in such a way that they come to have empathy,” suggests business psychiatrist Mark Goulston, owner of the Goulston Group.“Teach understanding and compassion by encouraging employees to share their own experiences of not fitting in for a wide variety of reasons, including gender, disability, sexuality and even personality quirks,” says Goulston. “Have the employees share how those experiences made them feel alone, frustrated and powerless, and how they would have appreciated people being helpful, kind and patient, without being patronizing.”

Assign a neurodiversity liaison. “Have someone in the company serve as the go-between in the case of any issues that may arise, including communication difficulties,” says Callaghan. “Such a person can be in charge of awareness training, and if necessary, facilitate mediation.”

For more tips on building a strong company culture, access our exclusive guide by author and leadership expert Jon Gordon: Build a Winning Organizational Culture.

Read more articles on hiring & HR.

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SEPTEMBER 16, 2016 For several years McDonald’s customers asked for all-day breakfast menu items. Then the fast-food giant announced it would give customers what they wanted. McDonald’s isn’t alone in its positive response to customer requests. Pizza Hut is one of several chains that removed artificial flavors and colors from many of its foods.Take a look at some of the most forward-thinking companies, and you’ll likely see businesses that make it a top priority to listen to what customers say and use that feedback to improve their services and offerings.

Of course, not all customer requests and suggestions are viable ones. How can you weed out the good ideas from the crowd? Salonek offers suggestions for tuning into what customers are thinking and feeling about your brand and making responsive changes that may ultimately increase business.

Call on Customers for Input

“When responding to customer requests and developing new offerings, we’ve had success getting key customers involved with product concept development and design,” says Salonek, whose intent is twofold. “By getting customers involved on the front end and getting their direction, they have a vested interest in the final product and will purchase and promote the new offering.”

If you do ask for customer feedback, make sure to always take the advice when feasible, and acknowledge all of it, Salonek advises. “Asking customers for feedback and direction is similar to asking for feedback from employees. If you continually ask questions and request feedback but there are no changes or communication on what’s being done with the feedback, eventually they’ll have no interest in helping drive new products or offerings, because they think it’s falling on deaf ears.”

Draw Out Valid Customer Suggestions

Aside from checking social media and blog posts for comments from clients, there are other ways you might elicit suggestions from customers that could lead to innovative and productive changes. Whenever possible, survey customers about changes they’d like to see made. Rather than simply asking what new products or services they’d like to see, Salonek finds it more productive to get customers to share their core issues through other questions, such as:

• What’s one thing we should stop doing, start doing or continue doing?
• What’s a hassle (time wasted) when dealing with us?
• If you were CEO of our company for one day and could only make one decision, what would it be?
• If we could grow in one capability that would align us with where you think the world is headed, what would it be?
• What’s an important issue or opportunity when dealing with our company that’s being buried, ignored, not dealt with or is uncomfortable to talk about?

While viewing customer feedback from these questions, Salonek advises looking for patterns and trends, and he also suggests considering the more unusual suggestions. “Sometimes it’s the outliers that provide valuable suggestions on new product or service offerings,” he says

Study Analytics

It might not be in your budget to use data warehouses, sophisticated analytics or Business Intelligence (BI) software, but there are tools that allow analyzing customers and their behavior that are available to businesses of all sizes.

“Google Analytics and Google Webmaster tools are free and can be used with any website to complete tasks such as to analyze customer behavior and try A/B testing,” Salonek says. “Through analytics, companies can find the right balance between protecting profit margins while ensuring customer satisfaction.”

Include Employees

If you can set the right tone with your employees by convincing them that you care about what they think, they’re much more likely to mirror that concern in their interactions with your customers, Salonek believes. “Your employees will also be more likely to share their ideas for new offerings and improvements to existing offerings. The employees of Nordstrom are a great example of this principle. The company fully and authentically engages employees and they reflect that passion for great service to their customers.”

Know When to Fold

Don’t be afraid to cut bait on a new product or service offering if it isn’t working out or early customer testing is showing the idea isn’t going to be successful, Salonek advises. “More than once, I let my ego get the better of me and my personal investment in a concept kept me pushing it forward even though customers were pushing back,” he says. “Talking with customers, using surveys and implementing tools like Google Analytics are all good approaches, but remember to continue to trust a key element that got you to where you are today…your gut.”

For more tips on finding new customers, download our exclusive guide from Guy Kawasaki, The Art of Getting Customers.

Read more articles about customer engagement.

A version of this article was originally published on September 4, 2015.

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JULY 22, 2016 Recent events involving the African-American community are alarming and distressing. But the resulting call within the community to support Black-owned companies may have the potential to be game-changing for some small businesses.

“Although many recent events have been unfortunate, the Black community has awakened to the fact that they can create opportunities and use resources within their own communities,” says Phillip Dunn, a BOB (Black-Owned Business) advocate and CEO of A Seat At The Table, a company that seeks to generate more business for BOBs. “We’ve recently seen a reconnection of sorts within the culture [that’s] bringing Black Americans closer together,” says Dunn. “The ongoing events have forced the community to look inward for solutions.”The African-American community has definitely been shocked into action, adds Shekira Dennis, civic leader and co-founder of the Houston Justice Coalition. “The economic driver is to ensure that we are supporting Black-owned and -operated businesses by recirculating our dollars in the African-American business community.”

Money Makes a Statement

Misty Starks, CEO of Misty Blue Media, a public relations and content creation company, agrees. “Many Black Americans feel that if we can’t get justice and equality in our neighborhoods, schools, at work and in the court system, we’ll use the one thing we know will get attention and spark change, and that’s historically been money. We can chant, we can march and we can create catchy hashtags on social media, but it all falls on deaf ears until money is involved. This movement to patronize Black businesses is definitely offering smaller, unknown businesses a lot more visibility and opportunity.”As a result of the movement, some consumers are taking the time to actually research African-American businesses and patronize them, adds Dennis. “This will benefit small businesses and bring some long overdue exposure to their community.”

As Black consumers use word-of-mouth tactics to bring visibility to BOBs, newer small businesses may benefit from the call to “buy Black” by being able to start off with a sufficient customer base from within their community, adds Dunn. “In addition to an increase in revenues and income for BOBs, the migration will provide them with opportunities for growth, such as hiring more staff, which drives down the unemployment rate, and expansion into new markets.”

Historically, Black-owned businesses have tried to market to the Black community. But many BOBs have faced a lack of consistent support and acknowledgement, believes Robert Van Arlen, an international speaker, trainer and coach. “Recently, the press has caused the Black community to galvanize and support. Black businesses that have always advertised and marketed towards the community are also finding it easier to retain existing consumers and gain new ones.”

Take Advantage of the Movement

In order to continue to ride the change in tide, Black business owners who act with a sense of urgency may be able to attract, secure and retain this new influx of customers, as well as existing ones, believes Dunn. “This will require a transformation in thought leadership, operating practices and historical beliefs about Black consumers, which could result in increased entrepreneurship in the Black community. As an increasing number of individuals become comfortable with the level of support from within the community, they will be more likely to risk starting and operating a business.”

When Black business owners do get an increase in business, Dunn advises being prepared. “If you own a small restaurant with 42 chairs operating near full capacity every day, you may not be readily able to effectively absorb a five to 15 percent increase in customers,” he says. “It’s important for BOBs to anticipate this recent upswing and staff accordingly. Otherwise, some new consumers may revert to prior spending behaviors and choices.”

Van Arlen suggests seizing the opportunity by developing marketing materials that engage the community, such as websites, flyers and radio ads. “It’s also a great time for Black-owned businesses to look for sources of capital if needed, because any expenditure in marketing has the opportunity to produce a greater ROI.”

Perhaps most importantly, if you’re going to succeed at increasing business, you may want to overcome your fear of failure, believes Alexander Joyce, president of ReJoyce Financial. “Be passionate about what you’re doing and what you stand for. If you are providing a service or adding value, execute with a purpose and never lose sight of your goal.”Read more articles on finding new customers.

Photo: iStock

SEPTEMBER 18, 2012When Mark Haag opened his company in 1990, the owner of Staffease, Inc.

chose his tax year-end based on the nature of his business.“I made a conscious decision to use a calendar year-end, because I run a payroll company and it made sense to close my year at the same time that I finalize client payrolls,” says Haag, whose company is now in 20 states and employs 690 people. “With a calendar year-end, we all start fresh every January.”

Planned Tax Year

If your company structure allows it, putting some thought into your tax year-end is advisable, says David Stevens, a certified public accountant serving small businesses and their owners throughout California. “Companies set up as sole proprietorships are limited to a calendar year-end, but other types of business structures can choose their year-end,” says Stevens, whose clients are in the manufacturing, wholesaling and service industries. The IRS recognizes two tax years. The calendar year runs for 12 consecutive months, beginning January 1st and ending December 31st.  A fiscal year refers to a period of 12 months that completes at the end of any month except December, for instance, from April 1st in one year to March 31st of the following year. What type of year-end a company chooses depends on several factors.

Partnership

If you’re involved in a partnership, your year-end must coincide with the tax year of the members of the partnership. If all members are on a calendar year, then that’s what you’ll have to use, but if there are members with year-ends at other times of the year, then your company will usually need to adopt the fiscal year-end of the majority of the partnership.

S Corporation

Businesses set up as S corporations are typically on a calendar year, but there are exceptions. Such companies can request a different year-end—such as October 31—as long as it falls within three months of the calendar year-end. Such a move isn’t always advantageous tax-wise, though, says Stevens.

“The IRS requires a tax deposit for the amount of income you’re deferring during those remaining months, which they’ll hold until the following year,” he says. “Having to make that deposit generally negates any advantages you’ll get from adopting a fiscal year-end.”

In some limited instances, individuals who run an S corporation can adopt a fiscal year-end without making the deposit, if they experience 25 percent of their gross receipts within the last two months of their fiscal year. Generally, only seasonal businesses fall into this category, such as those that peak in the spring, summer or fall. According to Stevens, a company that sells Halloween merchandise or a Christmas tree farm might qualify.

C Corporation

When your business is set up as a C corporation, you have the most flexibility in choosing a year-end.  If you decide that January 31st is an ideal fiscal year-end, there are no limitations on you choosing this date.

52–53 Week Tax Year

A variation on the year-end available to businesses is what is known as the 52–53 week tax year, which according to Stevens, is often popular with retailers. This fiscal year-end allows businesses to always end each year on the same day of the week for the sake of continuity.

For instance, if you elect to end your fiscal year on the last Sunday of the year, then you do so no matter the date, which could be the 29th. Because of this manipulation of dates, about every four years you will experience a 53-week year. The 52–53 week tax year can be adopted using any fiscal year-end.

Carefully Choose Your Year-End

If you are able to choose your fiscal year-end, Stevens suggests analyzing the natural flow of your business and ending the year in your slowest month. “Your staff won’t be as busy when things are slow, and they can devote themselves to closing the books,” he says. “Your inventory will also be at its lowest point, which means less work counting and pricing.”

If you want to change your year-end, you need permission from the IRS, as well as a valid explanation of why you wish to make the change. Tax avoidance is not an acceptable reason. Requests for changes are made by completing IRS form 1128.

When setting up your business, choose your tax year wisely. Once set, your fiscal year-end is difficult, or even impossible, to change. A freelancer since 1985, Julie Bawden-Davis has written for many publications, including Entrepreneur, Better Homes & Gardens and Family Circle. Julie blogs via Contently.com.

Photo credit: Thinkstock

APRIL 28, 2014 One of the challenges of running a small business is the all-consuming nature of it. Not only are the day-to-day pressures overwhelming, but technology puts you on call 24/7. It’s not surprising so many entrepreneurs struggle to find a work-life balance.

Like many small-business owners, OPEN Forum community member Bennett Johnson knows all too well the push and pull between work and life, which is why the small-business consultant, entrepreneur coach and founder of Arete Business Methods, recently asked the OPEN Forum community the following question:

Just Say No

Though she finds doing so challenging, OPEN Forum community member Natascha Thomson, owner and founder of Marketing Xlerator, and author of 42 Rules for B2B Social Media Marketing, says “no” often. This helps her stay in control, and not become overwhelmed by taking on more work than she can handle. To ensure that those “no’s” don’t affect her bottom line, Thomson doesn’t undersell herself or her services and charges accordingly.Julie Gray, COC, organizational business coach and founder of Profound Impact Coaching, agrees with Thomson. “It starts with the right mindset,” she says. “You have to realize that you really can’t do it all and that you are going to have to say ‘no’ to some great ideas and people.”

Prioritize and Organize

Deciding when to say yes and no and how much work you can take on requires excellent organization and prioritization skills, Gray explains. “Just like everything else, if you want to make work-life balance happen, it has to be a priority.” She suggests using an organizational system for both work and home life “so that you know you are operating efficiently and can trust that your most important priorities get done.”

Sidney Blank, a partner with MBLM, agrees that an organizational system makes all the difference. “I use my calendar to actively schedule time to get the work done that I’ve committed to,” he says. “Using my calendar is my best defense against the scope creep of my to-do list.” Blank also has a schedule for managing email. He checks it before going to bed and upon getting up, which helps ensure he attends to email in a timely and efficient manner.

Separate Work and Home

Whether you work from home or in an outside office, make your office space all about work. A few family photos are fine, but avoid bringing in too many items that symbolize home. Likewise, avoid the proverbial “bringing work home.” It’s a lot easier to relax in your living room and enjoy the company of family and friends when you don’t have reminders of pending projects staring back at you, just as it’s easier to get work done when your thoughts aren’t drifting home every few minutes.

Work “Regular” Hours

Nicole Beckett, president of Premier Content Source, finds that her best defense against being off-balance with work and life is to stick to a Monday through Friday schedule. “Yes, there’s the occasional Saturday that I catch up on stuff, but the vast majority of my weeks are Monday to Friday,” she says, though she admits sticking to a five-day-a-week schedule took awhile to learn.“When I first started my business, I worked constantly,” she says. “I even had my smartphone ‘ding’ with every email notification. With clients all over the world, that ‘ding’ pops up constantly.” Beckett found she could only deal with that hectic pace for a couple of months.

“While it was important to work hard to get the business going, that’s not a pace anyone can keep up forever,” she says. “Once you learn that the world won’t stop spinning on its axis if you shut the computer off for the night or over the weekend, you’re much happier.”

Take Baby Steps

If your work-life balance is anything but balanced, start by making small changes to introduce more personal time into your schedule. Try going home an hour earlier or coming in an hour later once a week and spending the free time however you wish.

Even when your schedule is particularly hectic, it’s good for you to take 30 minutes to do something you like, such as take a walk, read a book or watch a favorite TV program. (And, yes, you can find the time.)

Finding a work-life balance might seem challenging at first, but once you get the hang of carving out some “me” time, you’re likely to be more relaxed and as a result increase your entrepreneurial productivity, creativity and profits.

Read more articles on productivity.

Photo: Getty Images