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Tag: Business Ideas

  • 3 Key Tips on How to Turn Your Idea Into a Business | Entrepreneur

    3 Key Tips on How to Turn Your Idea Into a Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When we find ourselves with a brilliant idea, the pull to transform it into a business is strong. However, the path from an idea to success is filled with uncertainties. As a result, this path can make even the most promising ventures stumble.

    In fact, every great business was once simply an idea. The process of transforming that idea into a thriving company comes with many challenges.

    Nonetheless, as entrepreneurs, we can make an effort to overcome these obstacles by persevering to reach our goals, surrounding ourselves with a network of talented, encouraging professionals and seeking out the right opportunity for our ideas to flourish.

    Related: How to Turn Your Idea into a Business

    1. Persevere to reach your goals

    A cornerstone of success is the ability to persevere in the face of failure. In fact, without failure, many successful entrepreneurs wouldn’t be who they are today.

    The indication of a great entrepreneur doesn’t lie in the success of their first attempt. Instead, the characteristic depends on how they react when faced with hardships. These hardships may come in the form of failed prototypes, unsuccessful launches or financial troubles. What separates great entrepreneurs from good ones is how they respond to setbacks.

    Because success is never guaranteed, it’s critical you learn how to embrace failure as a learning opportunity. So, no matter how often you experience setbacks or obstacles, you must never seek shortcuts. Shortcuts will always lead to an undesirable or inferior outcome.

    Instead, when looking to overcome your challenges, take an incremental approach. In simpler terms, take on each challenge in smaller, bite-sized parts. As a result, you’ll stay productive without losing sight of your end goal.

    2. Build a supportive network

    As your company grows in success, it will also grow in size. While your business may be solely your idea, a supporting team with the right skill set can make it a reality — and even improve upon it. After all, entrepreneurs require the expertise of others to fill in the gaps where they’re lacking.

    Many successful entrepreneurs throughout history have relied on strong teamwork to achieve positive results. The ability to step back and let someone with more expertise take the reins is the sign of a humble and unostentatious leader. Not only will this result in better outcomes at your company, but it’ll build your reputation as a modest leader who people want to work with.

    So, you’ll need to build a supportive team of specialized individuals. To do this, find professionals with the experience your idea needs, from mentors and advisors to like-minded peers. Equally important, these individuals should share your vision while complementing your existing skills.

    In fact, as your idea grows from conception to business, members of your team will slowly grow their own teams. Their success as managers depends largely on how you foster your relationship with them. If you start on day one intending to build strong and reliable professional relationships, they will, too. And your idea and your company will be better for it.

    You can transform your ideas into a profitable venture only by believing in people. With this in mind, you can scale your company with employees who are unquestionably the most essential aspect of your business.

    Related: 9 Steps to Put Your Business Idea into Action

    3. Seize the opportunity when it rises

    Unfortunately, a brilliant idea can fall flat if it’s introduced at the wrong time. Meanwhile, a mediocre concept can flourish with impeccable timing.

    For instance, many factors, such as market trends, emerging technologies and consumer preferences will impact how your idea manifests. By monitoring these indicators, you’ll have the opportunity to adapt to customers’ expectations. This adaptation will give you a competitive edge.

    Moreover, timing the launch of your product or service around industry events, seasonal trends or consumer behaviors can boost your chances of success. By coinciding the launch of your business with certain situations, you can generate buzz and attract early adopters. So, take advantage of market trends, instead of working against them.

    Simply put, timing is everything. It encompasses anything from launching your product and scaling your business to understanding the nuances that can make the difference in the success or failure of your business.

    Embrace the journey your ideas take you on

    There is no limit to the number of good ideas out there. But good ideas only become successful businesses if entrepreneurs take the appropriate actions.

    In order to improve your chances of success, first, you must take a steadfast approach to turning your idea into a business in spite of the number of failures you experience. Then, remember to surround yourself with those who support and complement your ideas for a better business. Finally, master the art of timing by paying attention to the market and industry as it evolves.

    With these tips in mind, you can enjoy the journey of building a business from the ground up with your ideas.

    Related: Got an Awesome New Business Idea? Here’s What to Do Next.

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    Cyrus Claffey

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  • 10 Lessons I’ve Learned In 10 Years of Running My Own Business | Entrepreneur

    10 Lessons I’ve Learned In 10 Years of Running My Own Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In 2013, I made a life-changing decision. I decided to “take a break” from my dream job, which while amazing, was also fast-paced and demanding. I gained invaluable experience, opportunities, connections and more as a law firm partner, but my personal life suffered.

    I was fortunate to have had financial success that enabled a break, and this difficult decision catapulted me into becoming a full-time entrepreneur. While I miss some things about being a part of a law firm, I love setting the pace of my own life and that I still help others daily, just in a different way.

    Becoming a business owner has revolutionized my understanding of the realities of running a company. I now believe you cannot tell someone else how to run their business if you have never successfully run one yourself. In celebration of 10 years as a fully self-funded female business owner, here are ten things I’ve learned.

    Related: Are You a Business Owner or an Entrepreneur?

    1. You can actually start your own business and be successful!

    I never intended to become an entrepreneur. However, after deciding to pause, I was asked to consult with lawyer friends who had previously been competitors. Unlike work, it sounded fun, and I could do it while “on a break” from law firm life. Ten years later, I manage a team of marketers and work with law firms across the country, helping my team members and my clients succeed.

    Related: 10 Tips for the First-Time Business Owner

    2. No matter how good you are at what you do, some people will still treat you like you aren’t

    You might expect that after over two decades as a lawyer and achieving both legal industry accolades and marketing industry awards, those I talk to and work with would always treat me with respect. You’d be wrong. No matter how many years of schooling, degrees, years of experience and awards you have, some people will always try to make you feel small, treat you as if you do not matter and belittle your skills.

    Don’t work with those people. Don’t employ those people. Don’t allow those people to impact your energy and success.

    3. You cannot control your clients, but you can only control how you respond to them

    Most marketing agencies do not refund client money after being paid. I used to feel the same way — I did the work, you paid me, and I deserved to be paid. Fear of having done a bad job, fear of not being able to afford to refund that money and fear of that client keep owners myopic. Success has allowed me the privilege to evolve.

    I had a client who was negative and abrasive and refused to collaborate. Even though we delivered everything they paid for, the firm was still unhappy. So, I fired them and refunded every cent of their money. While this made my business lose money, the financial price was worth it.

    4. You do not need a physical office to be a seven-figure company

    I spent my legal career working in business attire in a professional setting in office buildings. Once the pandemic hit, the beautiful corner office on the top floor of a building in my neighborhood I had painstakingly searched for and decorated became a source of stress. Our team became remote, not really by choice, and we stayed that way. Now I pay no rent and reallocate those funds. I miss working collaboratively in person, but my team is thriving. We have been able to take on more clients than ever before, all without a physical office.

    5. If a new hire is troubling you early on, they are likely not going to work out

    A successful business owner told me that I would know within two days of working with a new hire if they would work out. I scoffed at what sounded like a lack of care and a lack of willingness to try harder when onboarding.

    After ten years, two days still seems pretty quick, but it does not take long to know if a new hire is the wrong one. The longer you wait to deal with it, the worse things get for the new hire and the existing team. Cut your losses early, allowing that person to move on and you to start looking for the right fit.

    Related: How to Find, Hire (and Fire!) Rockstar Employees

    6. Narrowing services offered means increased expertise

    As a 21-year lawyer, legal marketing is my consulting focus. Because there are a lot of lawyers, and most law firms engage in marketing efforts, I have a decently sized national marketplace from which to obtain clients. One of my strongest selling points is that I have a niche business focused on one industry and am a licensed expert. Expanding into other industries I know less about and have no footprint in would dilute my biggest point of differentiation. Stay focused and grow within your niche.

    7. Saying “no” leaves room to say “yes” to opportunities you don’t know about yet

    It is scary to say no to paid opportunities early in the life of your business but remember, each engagement is a partnership, and you should only partner when it can be mutually successful. Prevent doomed collaborations on the front end.

    Gauge compatibility by paying attention to how they speak to and email you, the “story” of how they came to be in their current position, and more. Every client you choose to work with can come at the expense of being able to take on another, better opportunity you might not know about yet.

    8. Being your own boss is addicting

    Over time, being my own boss has become a commodity worth significant value to me. I greatly enjoy not having to ask permission to spend a full weekend day uninterrupted with my children. The scary part of being the boss is being responsible for yourself, your team, your clients, and many others, but the benefits of determining how to handle those responsibilities are worth it.

    Related: 5 Essentials for Succeeding When You Become Your Own Boss

    9. Set boundaries early and do not compromise

    Boundaries are important in both our personal and professional lives. The legal industry cultivates a culture of constant availability and immediate response, which is stressful. Now, running my own business, I make conscious choices to shape our company culture differently.

    No one on my team is required to work outside of normal business hours. No one on my team has their work email on their mobile device. I no longer provide clients with my personal (and only) cell phone number. Establishing boundaries like these makes work healthier and more productive.

    10. If you can’t pay yourself as an owner, you are not doing it right

    A surprising number of business owners I consider successful cannot and do not pay themselves at all. Their businesses do not generate sufficient revenue to allow the owner to make an income. If you cannot pay yourself (after a reasonable startup time, of course), you are not succeeding. You should reevaluate your financial position, overall business plan, and whether or not owning a business is the right choice for you.

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    Stacey Burke

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  • The Psychology Behind Why You Can’t Keep Your Fitness Goals Intact | Entrepreneur

    The Psychology Behind Why You Can’t Keep Your Fitness Goals Intact | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    How often have you signed up for a new fitness regimen of some kind, and lost steam a few months in? New Year’s workout resolutions may spring from rock-hard convictions, but within a couple of months, most of us lose steam. Even amid the proliferation of boutique fitness studios and “fitspiration” influencers, the percentage of U.S. adults who meet the CDC’s guidelines for “aerobic and muscle-strengthening activity” is just 24.2% — the same as it’s been for decades. Perhaps, then, it’s no surprise that customer churn rates are also the single biggest problem for fitness businesses.

    That’s why it’s particularly impressive that Future, a fitness app that pairs customers with personal trainers to build individualized weekly workout plans, has locked in a 90% retention rate for users after 90 days — the point when people’s dedication typically falls off a cliff. Future costs $150 a month, and the average user works out 16 times a month for 40 minutes.

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    Frances Dodds

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  • She Ditched Corporate Life and Bet on Herself. Did It Pay? | Entrepreneur

    She Ditched Corporate Life and Bet on Herself. Did It Pay? | Entrepreneur

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    On this episode of “Entrepreneur Elevator Pitch,” find out if a new food company has investors digging in or saying no thanks.

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    Entrepreneur Staff

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  • How to Grow Your Business When You Have No Idea What You’re Doing | Entrepreneur

    How to Grow Your Business When You Have No Idea What You’re Doing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Starting a business, let alone growing one, is not for the faint of heart. It takes time, patience and a lot of humility. In 10 years of owning my own business, our growing pains have had their own growing pains, but at this point, I can safely say they have transformed into gains.

    I’ve learned the hard way that expansion is a necessary step in growth, but doing so in a manner that doesn’t feel like two steps back for every one step forward has been the most challenging part for me. Growth should be an exciting process that couples a thoughtful approach with some creative bootstrapping and an unwavering “go get ’em” attitude.

    Sometimes growth proceeds only one slow step at a time, but that one step may be critical to the future of your business, so dedicate yourself to making each advancement as “right” as it can be, followed by another and then another. This will likely take some fine-tuning and adjusting. You couldn’t learn the ropes of first grade until you’d mastered kindergarten (yes, as a mom of five, parenting analogies consistently make their way into my writing!), and the same philosophy applies to business.

    Here’s how to identify focused steps to take to grow your business.

    1. Careful planning and strategic decision-making

    The importance of careful planning and strategic decision-making cannot be overestimated but is often overlooked when you’re running full steam ahead toward business growth. The last thing business owners need is wasted time on unnecessary work that could’ve easily been avoided with a little thoughtful preparation. Speaking from my own experience at the helm of R Public Relations, I decided to embrace one instrumental but utterly simple expansion strategy: finding my firm’s service niche area and sticking with it.

    The truth is, my firm and my team can do more than we actually do, but we had to start saying no to services we didn’t really want to focus on so that business growth would be in the right direction. Mine is a PR company, and yet at one point, I had more content writers and editors on staff than publicists. So I had to shift that imbalance, stay hyperfocused on our service niche and then use that very service to promote ourselves, brag about ourselves and show our potential clients how good we are at shouting the good news from the rooftops.

    Related: Why You Should Never Treat Your Business As A Side Hustle

    2. Finding your client base

    Just like I had to narrow my circle of employees and contractors to those who would most directly contribute to business growth goals, I had to zero in on the client base I wanted to feed my business by offering products and services that would most appeal to them. This step involves understanding your customers’ needs and wants — both current and future — and conducting market research to determine them. You don’t have to have a degree in data analysis; you just need to be a good listener when speaking to your clients. If you ask and show genuine interest, they’ll tell you exactly what they want from you that will keep them on your roster and, in turn, keep your business growing.

    Related: The 7-Step Guide To Finding the Right Clients and Avoiding the Ones Who Waste Your Time

    3. Setting pricing and service offerings

    I’m frequently asked, “How much should I charge for so-and-so?” You can’t stay in business if you don’t get paid appropriately for what you deliver, but just expanding your menu of offerings to bring in more revenue isn’t always (or even usually) the best route to growth. Diversification and specialization can make all the difference, so when you’re reassessing your service line, make tweaks where needed and, in some cases, eliminate some services altogether.

    In my firm’s case, we took inventory of all the feedback we received from our clients, and guess what we found out? We were providing not only more than they were asking for but much more than they were paying for! Not good.

    When we raised our prices to keep in line with costs, client demands rose in kind. I ended up with a burnt-out staff and clients with unclear expectations until I eventually realized that the trick was to scale back on extraneous services without disrupting client satisfaction. In other words, we stopped overdelivering and instead set definite and finite targets that could track both client growth and our own. We defined and set a value for our services so that we could price them properly and better manage client expectations.

    4. Understanding your market landscape

    This step could just as easily be labeled “stalking your competitors,” and there’s no shame in that. In fact, you can learn a lot from scoping out what the competition is doing and then figuring out ways to do it better or differently or with more personalization. When I was just starting out in the hospitality market, there was a “cool kid” on campus, and we wanted to be cooler. So we’d pitch to the same clients and often win — maybe based on price or our extreme commitment or a combination of both; but the point is, we learned how and what to pitch precisely by following the lead of our competition and then putting our spin on their moves.

    Continually assessing where you can stand out in your market and how you can actualize your exceptionality keeps your current clients from jumping ship and attracts new clients to the buzz you’ve created around yourself. And you can achieve this with a small team and a small budget. When I had limited amounts of both, I prioritized deepening my relationships with my clients through active listening and customization. In the process, I gained valuable insights into market preferences that allowed my firm to tailor strategies to current market trends, strengthen existing client bonds and foster new ones.

    Related: Starting a Business: How to Start a Business in 12 Steps

    5. Being passionate about what you do

    Clichéd as it sounds, truly loving your business — thriving off what you do — is the single most valuable key to business success. Clients want to work with you when you’re enthusiastic, energized and fun. When your passion for what you do is visible, it becomes a viable path to growth because people want to join you on that path, follow you on that path and share in the rewards that come from an enjoyable journey to a set destination.

    I’ll keep walking that path, recruiting fellow travelers wherever and whenever I can, because we’re all aiming for the same thing: successful, blossoming businesses that stand the test of time and evolve with an ever-evolving marketplace.

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    Emily Reynolds Bergh

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  • Starting a New Venture? Don’t Make These Research Mistakes. | Entrepreneur

    Starting a New Venture? Don’t Make These Research Mistakes. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    During challenging economic times like we face today, most smart entrepreneurs see both more opportunity and increased risk. So, when it comes to starting up a new business venture, it’s more important than ever before to guide your decisions with data.

    But as a leader in the insights industry, I see traditional research methods failing today’s entrepreneurs. When you’re dreaming of disrupting an existing market or upending the way a problem is solved, the status quo doesn’t offer the blank-page flexibility that you need to evaluate the soundness of your instincts.

    Leaders looking to pivot need to make intelligent, informed decisions at rapid speed. So if you’re thinking about starting a new venture or expanding your side gig, here are some research mistakes you absolutely must avoid if you’re looking to make a real impact in competitive marketplaces.

    Related: I Accidentally Became a Successful Entrepreneur. Here Are 5 Mistakes I Learned to Avoid When Starting a Business

    1. Letting surveys write the script

    Quantitative surveys are tempting because they’re cheap, quick and inclusive in terms of demographics and geography. But they also have a serious depth problem. The questions are often too restrictive to net you truly authentic insights. You often get superficial answers that don’t offer the context you need to fully understand market potential.

    If you’re trying to figure out a brand-new vertical, asking static questions about the world that currently exists isn’t going to get you where you need to be in order to understand if you’re making the right call.

    What to do instead

    There’s a reason why so many experts in the insights field refer to this as a discovery process: If you go into it believing you already know what you’re going to find, you’re simply going to have your preconceptions reaffirmed.

    You need to throw out the script and talk to people. That’s not to say quantitative research isn’t useful — it absolutely is. But to capture the nuance that comes with rich emotional reactions and body language, you also need to speak to your potential audience in a way that enables them to share the “why” and “how” behind the “what.”

    Instead of asking presumptuous questions like, “Would product X solve your problem?” you should have conversations with your target audience and allow them to tell you about their pain points. This tests your assumptions about the marketplace and prevents your biases from distorting the findings.

    2. Relying too much on focus groups for the big picture

    Considering the limitations I just detailed regarding quantitative research, you might be tempted to gather feedback through focus groups. Though more expensive, this option does solve many of the problems quantitative surveys pose. However, it creates a whole new set of issues to work through.

    Assuming you want to convene your focus groups in a physical space, you’ll be limited to local participants and those with relatively flexible schedules. Does that fully capture the demographics and geographies you’re trying to reach? Very likely, it won’t. What about people who work during the day — will they take time out of their busy calendar to come to your focus group? How about those with disabilities or challenges with transportation? Are you ensuring they are fully represented?

    Even if you decide to convene focus groups in a remote environment, these sessions traditionally require participants to share their opinions in front of others, leading to groupthink and biased results, not to mention the challenges of accurate recall. These are all deadly factors when it comes to launching new ideas or exploring new possibilities.

    Related: If You Really Want to Understand Customer Needs, Avoid Surveys

    What to do instead

    To discover a world that doesn’t exist yet, you must be wary of the status quo. But thanks to the technology we carry around in our pockets every day, there are some really simple ways to break away.

    You can ask study participants to use their phones to record videos of themselves using products in the moment as they would in their daily lives, or even when they’re shopping in-store or online. Without a moderator to lead the discussion, participants will subconsciously feel more free to take you along on their journey, and this is where the real innovation comes in.

    Honest, raw and uncut opinions from actual consumers will help bring your idea to life or show you where there might be an unmet need or improvements that can be made. This approach enables you to understand at a really deep level what your audience desires and how to structure your offerings to stand out. It will uncover real usage trends and hidden insight gems. And not only that, the asynchronous nature of this kind of research allows you to avoid schedule-based biases and embrace the geographic and demographic diversity that’s necessary to understand a global customer base.

    This economic moment offers incredible opportunities to those looking to strike out in a new direction. Leveraging next-generation research technologies will arm you with the data you need to be part of the next wave of innovation and start delivering experiences your consumers rave about.

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    Nihal Advani

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  • Don’t Mess Up These 2 Crucial Customer Service Moments | Entrepreneur

    Don’t Mess Up These 2 Crucial Customer Service Moments | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Everything is not equal in the customer journey; customers don’t remember their time with you in an even-handed, equitable way. Rather, there are moments in their customer journey that are disproportionately likely to define how they remember the customer service you’ve provided them. How you treat customers in these moments will disproportionately lead them to have a negative, neutral or — if you nail these moments — supremely positive impression of their time with you.

    As a customer service consultant and turnaround expert, I prefer that you get every single moment in the customer journey right! But if I have to choose, here are the two specific moments I want you to focus on right now because getting these right will give you an enormous advantage over your less-attentive competitors.

    What the Ritz-Carlton knows (and you need to learn)

    Did you ever notice how, when you stay at a Ritz-Carlton hotel (if you haven’t yet, I suggest you head off on a junket!), they have everything supremely polished and choreographed for the moment you arrive at the beginning of your stay? The valet greets you when they take your car, the bell staff already know your name, and everyone you encounter goes out of their way to make you immediately feel welcome.

    Also, when you’re leaving the hotel, they send you off warmly, perhaps even with the GM or hotel manager coming down to thank you and wish you a good journey.

    These two points, the beginning of the customer interaction and the ending, are emphasized at Ritz-Carlton’s and at other customer-focused companies because they’re the two moments in the customer journey that are nearly guaranteed to remain in the memories of your guests more than any others, perhaps for life.

    Related: How to Turn an Upset Customer Into Your Company’s Best Advocate

    Two scientific effects you need to learn

    The primacy effect — The fact that first impressions are lasting impressions is called the primacy effect.

    The recency effect —The fact that final impressions are also disproportionately influential is called “the recency effect.” another well-demonstrated psychological effect. (Together, these are known as “the serial position effect,” which is a scientifically verified, well-proven psychological phenomenon.)

    Thus, these are two critical moments in the customer’s journey to be sure you get right because of how prominently they are likely to figure out how your customers remember their time interacting with your company.

    How to nail step one: the warm welcome

    Use a welcoming tone of voice. Put down anything distracting you, whether from a prior customer or something else you’ve been working on. (The worst impression you can give a customer is that they’re interrupting the work. Truly, they are the reason for your work!)

    Make eye contact in person or what you could call “voice contact” on the phone: displaying a similar focus that can truly be picked up on audio. And smile as you greet the customer, whether in person or on the phone.

    Can customers tell if you’re smiling over a phone line?

    Of course, they can! Smiling unlocks all that beautiful treble in your voice.

    When you smile, it changes your vocal tone in a very easy way to pick up, even within the limited audio range of a phone line. Some veteran call center professionals even use tape or Velcro® to affix a compact mirror at eye level in their workspace to remind them to smile every time they pick up the phone. (I know this is dorky, but it works.)

    Now there is an exception to always smiling. If you’re talking with a guest telling you disappointing news, please don’t smile!

    Related: How to Use the Least Sexy Customer Service Channel to Get Your Cash Registers Ringing

    The exact words you should use when answering every customer call

    Since the telephone is often where the customer makes the first contact with your company — or at least the first contact with a human — let me tell you what I recommend as far as the actual specific words you should use when you pick up the phone.

    The best way to answer a ringing phone is with a greeting that includes all four of the following elements. (This is easier than it sounds, as you’ll see when we get to the examples.)

    1. A greeting
    2. A business identification
    3. A self-identification
    4. An offer of assistance

    Example 1:

    Good morning, (The greeting)

    Business [X]. (The business identification)

    This is [Jerry]. (Identifying yourself.)

    How may I help you? (Your offer of assistance.)

    Example 2:

    Thank you for calling (The greeting.)

    Business [X]. (The business identification.)

    This is [Jerry]. (Identifying yourself.)

    How may I help you? (The offer of assistance.)

    Related: 4 Simple Ways to Communicate Better With Your Customers

    How to bid goodbye to your customer at the end

    The other scientifically proven moment to matter disproportionately is the closing of service, the fond farewell. Ask if anything else is needed, if there’s anything else you can help them with. Offer a personal farewell. “It’s been great working with you, Jim; I will see you back here on Thursday. I’ll call you if anything changes.” Invite them to call on you for assistance in the future if that’s appropriate to the situation.

    Also, try not to rush the caller as they approach the end of their time with you. It’s easy to be so relieved that you have resolved things on this call, or to get distracted by what you have coming up next, that you speed things up unattractively.

    But don’t miss out on an opportunity to turn an ending into another scientifically proven “unfair advantage.” Refrain from rushing off to the next task on your list. Instead, take an extra moment (really! It’s only a difference of 5-10 seconds) to bid each customer a genuine and personalized farewell. Spending that additional minute, or even a handful of seconds, can have a significant payoff for you in terms of how your company is remembered by customers who have interacted with you.

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    Micah Solomon

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  • How to Stop Online Marketplaces From Robbing Your Brand | Entrepreneur

    How to Stop Online Marketplaces From Robbing Your Brand | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Marketplaces have become extremely influential in ecommerce over the past three years. Major market players such as Amazon, Alibaba and JD attract millions of users, facilitating massive transactions across a wide range of product categories.

    They also generate a wealth of data on consumer behavior, preferences and trends. This strong market position gives them an advantage and the ability to charge unreasonably high commissions, basically robbing brands.

    The rise of marketplaces

    The journey of marketplaces goes back to the early days of the Internet when platforms such as eBay and Amazon pioneered the concept of online commerce. Founded in 1994 as an online bookstore, Amazon has evolved into a comprehensive marketplace offering a wide range of goods. eBay, launched a year later, popularized the concept of consumer-to-consumer online auctions. China’s JD.com and Alibaba also burst onto the market in the late 20th century.

    With the growth of ecommerce, niche and vertical platforms began to flourish. They focused on specific industries or product categories. A prime example is Etsy, a marketplace for handmade and vintage goods founded in 2005. And as technology has evolved, so have the capabilities of marketplaces. The introduction of secure payment systems, improved search algorithms and user-friendly interfaces have provided a new level of convenience, trust, and efficiency in online shopping.

    However, it wasn’t until after the pandemic that marketplaces took off. The year 2020 was a stellar time for them and e-commerce in general. Online platforms have become critical for brands to reach a broader customer base. In 2021, a whopping 42% of all online purchases were made through marketplaces. The convenience of shopping from home, the ability to compare prices and read customer reviews, and the seamless transaction process for customers have contributed to the rapid growth of online platforms. And in 2022, almost two-thirds of consumers said they were happy to be able to order everything they needed through one merchant.

    By 2027, third-party marketplaces will become the world’s largest and fastest-growing retail channel, accounting for nearly two-thirds of online sales. Amazon, Alibaba, Pinduoduo and JD.com are expected to generate $4.3 trillion in global sales, up from $2.5 trillion today. Experts say that the most successful retailers, both now and in the future, will operate third-party marketplaces, and consumer brands must align with them to flourish in this new retail environment.

    Although the concept of marketplaces itself is beneficial, including for brands, the strong position of online platforms has allowed them to dictate their terms to sellers and vendors and practically rob them.

    Related: 7 Revenue-Killing Mistakes for Ecommerce Retailers

    How online platforms make money on brands

    In the early days of marketplaces, when they needed to attract new suppliers to basically unknown platforms, contract conditions for vendors and commissions for sellers were usually based on a small percentage of the transaction amount. As marketplaces expanded and diversified, they introduced tiered commission structures to incentivize sellers with high sales volume. Those who achieved such volumes or met specific performance criteria could qualify for lower commissions, which offered a potential savings advantage.

    With time, marketplaces expanded their revenue streams by introducing additional services. They included premium placement in search results, featured listings, advertising options, and other services such as fulfillment, delivery, and marketing support. With these, marketplaces generate additional revenue while allowing merchants to increase their visibility. The problem is that though online platforms aim to increase the effectiveness of services and tools offered to sellers, their main goal is still to earn more by raising the penetration of those products, not optimizing sales for specific brands.

    As a result, Amazon, for example, now gets more than 50% of sellers’ revenue on average, compared to 40 percent five years ago. Sellers are paying more because Amazon has increased fulfillment fees, making advertising costs inevitable. The typical Amazon seller pays 15% per transaction, 20-35% for order fulfillment, and up to 15% for advertising and promotions. The cost of Fulfillment by Amazon, when Amazon stores, picks, packs, and ships orders, has been steadily rising, and there are few success stories of operating outside of this model. Advertising is optional, but it takes up most of the screen with the best conversions, so sellers inevitably have to buy Amazon advertising services to get noticed.

    The company has even been sued recently. According to the claim, Amazon penalizes sellers for failing to set the optimal price for their products by demoting them in search results and disqualifying products from the “Buy Box” feature, a white box on the right side of the Amazon product detail page, where clients can add goods for purchase to their cart.

    The power of AI

    With the growing influence of artificial intelligence, companies can now leverage AI to expand their presence, optimize operations and ultimately generate more revenue. We estimate that the global retail AI market will be worth about $350 billion by 2032 as more companies realize the benefits of neural networks and take advantage of them.

    Marketplaces already use AI-based tools that provide valuable insights into consumer behavior, campaign performance, and keyword search. Their main goal is to increase sales, and algorithms help them calculate which sellers’ products are worth promoting to maximize overall revenue. Online platforms analyze customer buying behavior, items in the shopping cart and the most viewed items to make recommendations, predicting what each client is likely to buy.

    Brands, too, can use AI to get to the top of marketplace search and increase the share of sales in their categories at the expense of internal marketplace traffic. However, sellers cannot access marketplace AI models. Platforms keep information about their developments secret and notify merchants of updates only when they occur. In Amazon’s case, Amazon Vendor Service can be used to access some of the AI functionality, but it increases the cost of doing business. At the same time, the service itself remains a black box. It means that brands cannot use platforms’ AI to promote their products. It also means they need third-party solutions to do so. What exactly would such AI solutions offer them?

    Related: How to Leverage the Power of ChatGPT and AI to Boost Your Shopify Store’s Success

    1. Intelligent and dynamic pricing

    AI solutions enable brands to implement intelligent pricing strategies. By analyzing market data, competitor pricing, and customer demand patterns, AI can determine optimal price points for products. Dynamic pricing allows sellers to adjust prices in real time based on factors such as supply and demand fluctuations, competitor activities, and customer behavior. This ensures that sellers remain competitive and maximize their revenue potential on marketplaces. Our experience shows that using AI to determine pricing allows sellers to recover up to 6% of previously lost margins.

    2. Intelligent adjustment for performance bids

    Leading marketplaces usually use real-time bidding (RTB) systems allowing advertisers to bid to show their ads to buyers. For example, on Amazon sellers bid on keywords, and the one with the highest bid and the best-targeted keywords usually wins. In other words, the winning bidding strategy is when the buyer’s search query matches the seller’s target keywords.

    With real-time data and advanced optimization techniques, businesses can ensure that their ad spend is used efficiently. AI algorithms can continuously recalculate billions of possible combinations of bids and amounts of budget, campaigns and segments, helping to rebound 20% of previously lost ROIC, based on our experience. Amazon, Alibaba, and JD already use such algorithms for in-house performance marketing.

    3. Efficient inventory management

    AI can optimize inventory management processes for sellers and vendors operating on online marketplaces. By analyzing historical sales data, algorithms can forecast shipments and sales by warehouse and SKU with granularity to organic and promotional sales and high accuracy, identify peak selling periods, and optimize inventory levels. This helps brands avoid out-of-stock or dead-stock situations, reducing storage costs and ensuring a seamless supply chain. Additionally, AI can automate inventory replenishment and order fulfillment processes, streamlining operations and minimizing human error.

    Related: 4 Ways to Use AI to Enhance the Customer Experience

    AI vs. People

    AI has enormous potential for sellers and vendors on marketplaces. By using AI to learn about customers, adjust rates, optimize pricing and manage inventory, brands can improve their competitive advantage, drive sales and increase overall profitability on online platforms.

    AI models also allow brands to save on time and resources of in-house teams and agencies, which, in our experience, companies typically hire to get their products to the top of marketplace storefronts. Сonsider, a medium-sized company from the food industry. Typically, a marketplace team (the one working to distribute products through online platforms most efficiently) includes an e-commerce leader, a manager, a designer, and a marketer. In addition, the company may hire an outside contractor to help its internal team.

    Nevertheless, these people are forced to engage in routine operations instead of using their time to solve strategic problems. With AI, teams can focus not on playing cat and mouse but on developing strategy and launching innovations, while algorithms will help implement them around the clock and in the most efficient way.

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    Pavel Podkorytov

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  • Why Addressing the Racial Wealth Gap is Good for Business | Entrepreneur

    Why Addressing the Racial Wealth Gap is Good for Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Philanthropy and government programs have been trying to close the racial wealth gap for a long time, but they’ve been focused on band-aids when we need ladders. While the wealth gap is fueled by several contributing factors, including disparity in home ownership, accumulation of financial assets and strong growing wages, as small business investors, we can draw our attention to a core piece of the problem: the wage gap.

    Let’s take a moment to clarify what we mean when we talk about the wage gap as it relates to the racial wealth gap. We are not just talking about good-paying jobs for people of color. We really need good-paying jobs that provide a clear pathway for Black and Brown employees to build a stronger, sustaining financial future.

    The typical white U.S. household has nearly eight times the wealth of the typical Black household. To address the systemic issue of racial wealth inequity, the private sector must do what it does best – invest in great companies and entrepreneurs that create quality jobs –and ensure all workers, especially Black and Brown workers, have an equal opportunity to build a lasting, positive economic reality for themselves and their families.

    Related: Compounding Inequality to Compounding Success: Bridging the Racial Wealth Gap

    Media reported widely that recent pandemic aid cut U.S. poverty to a new low, but that was a short-term solution to a global crisis — it wasn’t aimed at driving wages higher in perpetuity. As that funding source dries up, those in a lower economic bracket return to the same or even worse circumstances than they were at the start. To truly attack the racial wealth gap, we need the private sector to make the change that the government and non-profits simply cannot do independently.

    Private sector employers and investors often can’t see how they can drive the change needed to give Black and Brown Americans access to wealth-creation opportunities while growing businesses and pleasing investment partners. But it is not as hard as they may think, and the benefits to their business and community deliver a long-lasting ROI for companies, workers and families.

    Building a path to financial security starts with strategic wages

    For decades, wages for Black and Brown workers have lagged behind those of white workers with the same experience and education, even in the same geography Even when people of color climb the corporate ladder, they make less — 97 cents on the dollar.

    These communities need more than just a living wage; they also need opportunities for long-term career development, pay parity and wage progression. A rising wage promotes economic stability, helps workers provide for their families and facilitates wealth accumulation for future generations.

    Wage progression — whether linked to individual performance, company performance, tenure, skills development, or promotion — is also good for business. It helps attract the best employees, improves retention, and sustains and incentivizes business growth.

    Related: How to Support Black Employees During (and After) Juneteenth

    The role of benefits in building generational wealth

    Meaningful benefits are a major piece of increasing sustainable employee wealth. Most employee wealth is derived from workplace benefits packages: health insurance, 401ks, stock options, etc. Low-wage workers typically don’t have those options, which are key to building generational wealth.

    Business leaders and investors can change this situation by learning from employees what benefits and opportunities would make the greatest difference in their lives and free up income for saving and investing– be that affordable healthcare, child/eldercare support, or direct wealth creation through incentivized savings opportunities like 401k plans, IRAs, and employer matching savings programs.

    Offering these types of household-stabilizing benefits could largely pay for themselves in terms of lower absenteeism, greater productivity, increased retention and worker-driven competitive advantage.

    Help employees continually grow their skills

    Too often, the leadership potential and training of Black and Brown Americans is overlooked. According to McKinsey, Black workers are disproportionately concentrated in entry-level jobs with low pay and underrepresented in leadership and executive positions.

    Correcting this divide means providing entry-level workers with access to training and development opportunities from the moment they are hired. Programs that teach employees valuable skills for remaining relevant in their careers to prepare them for higher responsibilities while reducing turnover, improving engagement and accelerating business growth.

    Making it happen

    Investors typically provide small businesses with growth capital, but they can also provide operational capital that is invested directly in employees. Business leaders, their investors and advisors can collaborate to devise a feasible and ambitious plan that establishes measurable goals for the company and the impact company leaders aim to achieve by driving an innovative wage strategy.

    Several local or national advocacy groups for diverse workplaces, such as the Business Consortium Fund, the National Institute of Minority Economic Development and the Minority Business Development Agency, can assist with this kind of wage-targeted approach to eliminating the racial wealth gap.

    Furthermore, it is crucial to monitor and evaluate outcomes using meaningful metrics. Failing to measure outcomes from these changes means businesses will not know what they’ve really achieved, which keeps them from continuous improvement.

    Related: How to Overcome Workplace Inequality and Reach Gender Parity

    Opportunity and obligation

    I believe that every employer and their investors have a moral imperative to make closing the racial wealth gap a focal point of their business model, even if it means taking a little less for themselves and other executives off the bottom line. There is a tremendous opportunity to hire workers from disadvantaged communities and grow and sustain a strong workforce that helps grow all businesses. In return, employees would benefit from quality jobs and greater economic vitality now and in the future, setting up the next generation for even greater progress.

    It’s about doing something incredible and making work “work” for businesses and employees alike. This type of investment is the catalyst for the change we need in our business world and our society —but it can’t happen without the private sector and its leaders driving the charge.

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    Sandra M. Moore

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  • 3 Critical Strategies to Help Your Company Sell | Entrepreneur

    3 Critical Strategies to Help Your Company Sell | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When you’re getting a new business off the ground, selling it is likely the last thing you’re thinking about.

    However, the truth is that it’s much easier (and much less costly) to develop your exit plan from the start than it is to restructure your company to sell. For business owners, the best course of action is to grow a sellable company right from the beginning.

    Not sure how to develop a sellable business? Here are some tips to get you started.

    Related: 3 Reasons You Should Sell Your Business

    How do you improve sellability while building a business?

    Making your business sellable doesn’t only benefit you when it comes time to make a sale. The businesses that command the highest sale prices are also the most profitable, so when you’re building a sellable business, you’re also setting yourself up for success as a business owner.

    One of the keys to building a sellable business is making early investments to improve scalability over time. You can do that by focusing on the following:

    • Implementing high-quality, efficient technology systems
    • Hiring executive leaders
    • Having financials regularly reviewed and audited
    • Building human capital function

    These might sound like obvious investments to make to some. Still, many founders do not want to make the necessary investments in infrastructure to be able to scale the business, instead viewing it as ‘overhead.’

    Investing in infrastructure from the outset may involve a substantial cash outlay, but it will dramatically increase your business’s value when it comes time to sell. Align Business Advisory, a leading M&A advisory for small and mid-size businesses, also points out that a third-party advisor can greatly help businesses to figure out ways to improve their overall scalability with services like business valuation and exit planning.

    If your company has quality infrastructure that can be built upon, potential buyers are looking at a turnkey sale. You’ll be poised to make significantly more from the sale in this situation. If a buyer sees that they will need to restructure the company for scalability after they purchase it, they’ll pay much less.

    Related: Top 5 Mistakes Entrepreneurs Make When Scaling Their Business To 7 Figures

    How do you help your company sell for a higher multiple?

    Even if your company has already been in business for years, there are still several things you can look at to optimize total value. If you want to make sure you’ll make as much as you can from the sale of your company, start with these steps.

    1. Enhance operational efficiency

    Many smaller business owners are owner-operators; their presence is essential for business success. However, when it comes to making a sale, this situation can dramatically decrease what a buyer is willing to pay.

    Why? If the buyer purchases a business like this, they’re taking on considerable risk. Once you leave the business, there’s a possibility that daily operations will suffer or key customers will leave.

    If you can demonstrate that your business functions well without your involvement, buyers will see a purchase as much less risky, so they’ll likely pay more when the time comes to sell.

    Related: Selling Your Business? Do These 6 Things Right Now.

    2. Optimize gross margin and EBITDA

    Not all revenue dollars are created equal. For instance, If a company must spend $99 to make $100, then that $1 of profit is not as valuable. So, regarding profitability, the cash in your business’s bank account isn’t the only thing that matters.

    To ensure your profit margins are high enough to draw in quality buyers, you’ll want to look at your EBITDA (Earnings Before Interest Taxes Depreciation Amortization) margin profile.

    Your EBITDA margin indicates your operating profit as a percentage of your total revenue. In most cases, buyers want an EBITDA margin of at least 10%. Many buyers view businesses with lower margins as too risky.

    3. Diversify your customer base

    Having one or two customers who routinely spend large amounts at your business can give you a sense of security. But buyers want to see diversified revenue. If most of your revenue comes from a few customers and those customers stop patronizing your company, your finances will suffer.

    In most cases, buyers look askance at any business where a single customer accounts for over 20% of the revenue. They may still purchase your business but are likely to pay substantially less.

    If you currently rely primarily on a few customers for steady income, make an effort to diversify income sources. That could mean offering additional products or services or using targeted advertising to draw in different demographics.

    Related: The 11 Rules of Highly Profitable Companies

    Build a sellable company from the ground up

    Creating a business that’s built to sell can be a challenge, especially if you’re wrapped up in running that business from day to day. However, it is vital that entrepreneurs prioritize sellability from the start of their business journey.

    The tips above provide ways to help maximize your business’s total value and attract quality buyers. By proactively working toward sellability, you are not only positioning yourself for a successful sale, but also setting yourself up for long-term business success and profitability.

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    Peter Daisyme

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  • Brand Loyalty Isn’t Enough to Keep Customers — But Reviews and Rewards Are. Here’s How. | Entrepreneur

    Brand Loyalty Isn’t Enough to Keep Customers — But Reviews and Rewards Are. Here’s How. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    We’ve come a long way from the negative and misleading image of rewards programs only being for low-income consumers. I know millionaire investors who make sure they use their air miles and take advantage of the punch cards and point systems at local mom-and-pop cafes. The traditional approach of building a brand and a loyal customer base is being replaced by rewards programs, which disproportionately benefit bigger spenders. The more these consumers spend, the more they get back — setting up a virtuous cycle for both buyer and seller.

    In our survey of over 50,000 consumers, only 3% said they would stay loyal to their top brand if a competitor offered cashback or points incentives. The explosion of the number of products at marginal price differentials on retail platforms helps explain this dramatic shift. With so many transactions taking place online, consumers are being swayed by the best deals, the best reviews and the best rewards.

    Rewards build up over time, so the purpose of these programs is to create an ongoing relationship with customers, especially those who spend the most. It’s a simple equation: Offering them the most value ensures they remain the most loyal. Brand equity may not be dead, but it is being redefined by the need to reward repeat customers in this more complex operating environment.

    Related: How Brands Can Turn Short-Term Rewards Into Long-Term Loyalty

    Reward programs are everywhere

    From your local juice shop offering a free beverage after collecting 10 stamps to the major players such as Amazon Prime and Target Circle, rewards programs are ubiquitous and public awareness is high. Almost 80% of people in our survey said they were familiar with apps and websites that offered purchase rewards. According to software company Oracle, 72% of consumers belong to at least one loyalty program.

    While reviews undeniably wield considerable influence over consumer choices, it’s evident that spending habits are increasingly pivoting around the strategic redemption of reward points. For instance, when Discover Card designates certain vendors offering additional points for a limited period, consumers are spurred to intensify their spending at these locations. Such strategic initiatives benefit consumers with bonus points and stimulate the entire ecosystem, creating a win-win scenario for all parties involved.

    Brand loyalty is also being informed by the preferred rewards of consumers, with two studies divided over the No. 1 category: Capgemini says 69% of consumers prefer cashback above all other rewards, while Merkle found that 79% of respondents preferred discounts. The constant is that everyone wants to be recognized and appreciated for their loyalty.

    What works best for you?

    There are two types of loyalty programs: Your own hosted program and an externally hosted program that offers a rewards ecosystem. No matter which you choose, you don’t need to have an enterprise business.

    A hosted program can vary from business to business, but it’s likely the type you are most familiar with. You spend enough money or make enough purchases at a business and are rewarded with a free item or something similar from the same business. Almost every small business now has punch cards or a point system that rewards us when we return regularly — whether it be your local coffee shop or the restaurant down the street.

    Alternatively, I am seeing growth in external loyalty programs that allow brands to reach new customers and reward them for sticking around. These programs can be broken down into two more categories: One that partners with individual industries or market segments, such as Ibotta’s hosted rewards program that offers rebates in grocery and retail, and the other that operates across the entire consumer landscape.

    I call the second type of program a “unified provider.” This type of rewards program is evolving in unique ways as mobile apps allow people to be rewarded based on where and when they are spending across varying stores and brands and accumulate rewards.

    Related: 3 Types of Reward Programs Every Retail Brand Should Know About

    Going further than games

    The surge in mobile usage over the last decade has unlocked vast potential for these unified reward platforms. My company aims to become the primary channel for consumers to amass rewards from diverse spending avenues. Initially focusing on mobile gaming, we plan to extend into other sectors like fuel, groceries and other areas consumers wish to be rewarded in.

    One of the key benefits of a unified provider lies in its cumulative nature. This allows consumers to garner more points than they ever could through multiple independent programs. The more consumers spend across diverse categories, the more rewards they accrue, creating higher value for the unified provider. In turn, the provider can afford to share more rewards with the customer, ensuring they stay engaged with various vendors. In essence, this creates a virtuous circle where all parties involved come out winners.

    Do your homework

    The arena of gaming for rewards and mobile rewards programs is relatively uncharted. Understandably, people harbor skepticism about earning gift cards simply for playing a game — it seems too good to be true! This newness and a dynamic marketplace indicate a clear need for brands to do their homework thoroughly before venturing into these emerging rewards ecosystems.

    If you want your business to use an externally hosted reward program, know that the market can be volatile. New providers often spring up only to vanish just as swiftly if they fail to strike a balance that benefits all stakeholders. Reliable resources are crucial for gathering insights and making informed decisions. Major contributors to the app install ecosystem regularly publish performance indexes of leading publishers. These indexes often include information about players in the rewarded engagement field, making them valuable starting points for verifying potential partners.

    Related: Dunkin’ Donuts Customers Express Fury Online at Pricier Rewards Program

    Reward retention

    The narrative of consumerism has pivoted; it’s no longer just about brand loyalty. The innovative rewards program landscape, from local businesses to global corporations, is expanding, evolving and firmly establishing its presence. And it’s not just about choice or variety.

    Repeat customers generate around 65% of a company’s revenue, underlining the vital role of rewards programs in customer retention, sustainable business growth, and market differentiation. They’ve become much more than just a trend; rewards programs are an essential strategic instrument in today’s consumer market. Brands that recognize this shift and harness the power of rewards will thrive in this dynamic environment, enhancing their consumer relationships and, ultimately, their bottom line.

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    Daniel Todd

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  • How AI Can Protect and Improve Your Business | Entrepreneur

    How AI Can Protect and Improve Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the ever-evolving landscape of the business world, resilience is key. The ability to weather storms, adapt to change and emerge stronger is what separates leaders from followers. However, this resilience isn’t a product of sheer will alone — it requires a certain degree of foresight, strategy and an arsenal of powerful tools. One such tool that’s proving to be increasingly invaluable is artificial intelligence (AI).

    During periods of turbulence, AI can serve as a game-changer for businesses, equipping them with the necessary capabilities to not only withstand challenges but also to seize opportunities and forge a path towards growth.

    This article will delve deep into the heart of this topic, exploring the manifold ways in which AI can act as a protector and enhancer of businesses during challenging times. We aim to provide you with insights, examples and action points — strap in for an enlightening journey into the world of AI in business resilience and growth.

    Related: What Is AI, Anyway? Know Your Stuff With This Go-To Guide.

    Leveraging decision-making AI for proactive problem-solving and decision making

    AI can be a powerful tool for detecting and resolving issues before they become full-blown crises. Through data analysis and predictive analytics, AI can alert you to real-time potential issues, from supply chain disruptions to unexpected shifts in market demand.

    When the stakes are high, and decisions need to be made quickly, AI can help businesses navigate uncertainty. AI can provide detailed insights and recommendations through machine learning algorithms that enable data-driven decision-making.

    Related: Redefining Problem-Solving With AI

    AI-Powered risk management

    Risk management is crucial for any business, but during challenging times, its importance magnifies. By predicting market volatility and providing insights into potential threats, AI can help you mitigate risks effectively.

    Artificial intelligence (AI) is revolutionizing the way businesses anticipate market volatility. Traditionally, predicting market trends was a laborious task that required teams of analysts to sift through colossal amounts of data. Today, AI simplifies this process, offering faster and more accurate predictions.

    AI leverages sophisticated algorithms and machine learning (ML) techniques to scan through huge data sets that humans would struggle with. It captures patterns, analyzes anomalies, and interprets economic indicators to give reliable predictions about market volatility.

    Example: Hedge funds like Bridgewater Associates and Renaissance Technologies employ AI to evaluate complex financial markets. They use these AI systems to predict potential stock price changes based on many factors, including economic indicators, geopolitical events and even social media sentiment. With the help of AI, these firms can process and interpret information far quicker than humanly possible, gaining a competitive edge in predicting market shifts.

    Spotting potential threats with AI

    Security threats pose a significant risk to businesses. AI-powered systems can detect anomalies, flag potential threats and even take corrective action, ensuring your business remains secure.

    The use of AI in identifying potential security threats goes beyond conventional practices. With its deep learning capabilities, AI can examine large amounts of data in real time and find patterns that might escape human detection.

    Related: How AI Is Shaping the Cybersecurity Landscape — Exploring the Advantages and Limitations

    For example, a financial institution could use AI to analyze millions of daily transactions. Instead of simply flagging large transactions as potentially fraudulent, AI can identify more subtle patterns that indicate illegal activity. It could look at the frequency of transactions, unusual transaction sizes for a specific customer, or even transactions at odd times. This provides more in-depth insights into the potential threats that businesses could face.

    Businesses can take the following steps to leverage AI in spotting potential security threats:

    1. Implement AI-based Security Systems: Businesses should look to integrate AI-driven security software that provides real-time threat detection. This can help not only in identifying threats but also in taking proactive measures to neutralize them.

    2. Continuous Training of AI Models: AI models learn from experience. Training these models on the latest threat patterns can improve their detection capabilities.

    3. Invest in AI Talent: Having AI specialists on the team can be a significant asset. They can help optimize AI models, interpret the results, and formulate effective response strategies.

    Gaining a competitive edge with AI

    Despite the challenges, tough times can present opportunities for businesses ready to innovate. Using AI, you can gain a competitive edge and position your business for future success.

    AI for automating mundane tasks — AI has already revolutionized several sectors by taking over repetitive and mundane tasks, thus freeing up the workforce to engage in more strategic and creative pursuits. For instance, in the retail industry, chatbots have been programmed to handle basic customer inquiries, leaving more complex queries to human representatives. This not only improves efficiency but also enhances customer experience.

    AI in product development — AI is also changing the face of product development. One example can be seen in the automotive industry. Companies like Waymo, Tesla, and Uber are using AI and machine learning to develop self-driving vehicles. These cars use a combination of sensors and advanced machine-learning algorithms to navigate roads and traffic more efficiently than a human driver could.

    AI in predicting customer needs — AI and machine learning can also aid businesses in better understanding and predicting customer needs. For instance, Spotify uses AI algorithms to analyze users’ listening habits and suggest music that aligns with their tastes, creating a highly personalized user experience. Similarly, Amazon uses predictive analytics to recommend products to users based on their browsing and purchasing history.

    Creating personalized customer experiences — Customers crave personalization in today’s digital world. AI can analyze customer behavior, enabling businesses to offer tailored experiences that boost customer satisfaction and loyalty.

    Artificial intelligence offers the unprecedented ability to collect and analyze vast amounts of data, including customer preferences, shopping patterns, and interaction histories. This allows businesses to create highly personalized experiences that meet and exceed customer expectations.

    Examples

    1. Netflix: A perfect example of personalization driven by AI is Netflix. Their AI algorithms analyze viewership data to suggest shows and movies based on what the user has watched before, their ratings of the previous content, and how they interact with the service. This has led to improved customer experience, higher viewer engagement, and decreased churn rate.

    2. Amazon: Amazon uses AI for product recommendations. If a customer is buying a phone, Amazon will suggest related items like a phone case or screen protector based on other customers’ buying patterns. This personalization makes the shopping experience more seamless and increases the likelihood of additional purchases.

    The Future of AI in Business

    With the increasing capabilities of AI, it’s clear that its role in business will continue to grow. The future of AI in business looks promising, potentially revolutionizing how we work.

    The role of AI in post-pandemic recovery is not just significant but transformative. AI technology provides tools and methods to streamline operations, reduce costs, and drive growth, acting as a powerful engine for businesses to rebuild and adapt to the new normal.

    The global pandemic catalyzed digital transformation, pushing businesses to rethink their operations and strategies. The digitization that was anticipated to occur in a few years got condensed into months, with AI being at the forefront.

    For example, traditional brick-and-mortar retailers that were hit hard by the pandemic had to shift online. AI played a significant role in this transition, from developing intuitive and user-friendly e-commerce platforms to powering sophisticated recommendation engines that enhance the customer shopping experience.

    Potential challenges and ethical considerations

    The use of AI isn’t without its challenges. As businesses increasingly rely on AI, issues related to data privacy, ethics and job displacement may arise, requiring thoughtful consideration and responsible AI practices.

    In a world where change is the only constant, improving your business with AI is no longer a vision of the future but an essential strategy for today. The current era of technological advancement offers both challenges and opportunities, and the smart use of AI will determine who comes out on top.

    AI is no longer an abstract concept but a real and tangible force in the business world, driving resilience, spurring innovation and powering growth. It’s the ally that works round-the-clock, the silent partner that offers deep insights, and the game-changer that provides businesses with an undeniable competitive edge.

    As businesses around the globe grapple with various challenges, from economic downturns to global pandemics, the ability to harness the power of AI becomes not just desirable but critical. Yes, the path may be riddled with hurdles, such as data privacy concerns and ethical considerations, but the benefits of integrating AI into your business strategy far outweigh the potential drawbacks.

    The future of business lies in AI — those who embrace it will lead, and those who ignore it may well find themselves struggling to catch up. So, here’s to a future where AI and business go hand in hand, a future where resilience is a given, and growth is a sustained trajectory!

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    Gajura Constantin

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  • Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch | Entrepreneur

    Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch | Entrepreneur

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    Marc Randolph, the co-founder of Netflix, joins us for another episode of Ask Marc, a live Q&A series about starting and growing your business. The event will begin on Wednesday, June 28th at 3:00 PM ET, streaming on our YouTube, LinkedIn and Twitter channels.

    Where can I watch Ask Marc?

    Watch and stream: YouTube, LinkedIn & Twitter

    You can watch on your phone, tablet or computer. Ask Marc will be shown in its entirety on YouTube, LinkedIn and Twitter

    What time does Ask Marc start?

    Date: June 28th

    Time: 3:00 PM ET

    The episode kicks off at 3:00pm ET.

    Why should I watch Ask Marc?

    Get free business advice directly from the co-founder of Netflix, Marc Randolph. Marc loves helping founders and small business owners, and this your free opportunity to ask him any of your questions about topics like:

    • Starting a business
    • Growing a business
    • Raising money
    • Building marketing campaigns
    • Best practices
    • Anything you want to know!

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    Entrepreneur Staff

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  • 7 Methods to Make Your Business More Eco-Friendly | Entrepreneur

    7 Methods to Make Your Business More Eco-Friendly | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Today’s businesses need to focus on more than just getting the all-mighty dollar. With the rise of corporate social responsibility (CSR) and sustainability, companies are expected to do more for their communities and to give back. A tricky feat, but necessary for companies that want to stay relevant and successful. Why should businesses care about doing their part? Let’s talk about it.

    Incorporating CSR and sustainability into business strategies is essential for success no matter the size of your business. I have used the methods we will discuss to enhance my company’s business reputation, engagement of employees and foster customer loyalty. These initiatives attract individuals who share your values which will improve work culture and build stronger customer relationships.

    Related: 5 Tips to Instill Corporate Social Responsibility Into Every Aspect of Your Brand

    Examples of CSR in modern business

    My main company, Strategic Advisor Board, recognizes the importance of environmental sustainability and has established the “Environmental Stewardship Initiative” as part of its corporate responsibility program. This initiative aims to reduce the company’s environmental footprint and contribute to the preservation and protection of the environment.

    We’ve incorporated the following components that you might consider, too:

    • Energy conservation: My board members actively promote energy conservation practices within our offices and operations. This includes implementing energy-efficient technologies, optimizing heating, ventilation and air conditioning systems, and encouraging employees to minimize energy consumption.
    • Waste management: My company has implemented a comprehensive waste management system that focuses on reducing, reusing, and recycling. Recycling stations are available throughout the premises and employees are educated about proper waste segregation and responsible disposal practices.
    • Paperless operations: I am very committed in all my companies to reducing paper usage and transitioning to digital processes whenever possible. This includes utilizing electronic document management systems, promoting online communication and collaboration tools and encouraging employees to minimize unnecessary printing.
    • Sustainable procurement: One of our major focuses is prioritizing sustainable procurement practices by sourcing products and services from environmentally responsible suppliers. Factors we consider are the supplier’s environmental policies, use of eco-friendly materials and adherence to ethical and sustainable practices.
    • Employee engagement: The Environmental Stewardship Initiative actively involves employees in promoting environmentally friendly practices. As CEO, I encourage our leadership to organize awareness campaigns, workshops and training sessions to educate our employees about sustainability, conservation and the importance of individual actions in reducing the ecological footprint.
    • Community outreach: My board of directors extends its commitment to environmental stewardship beyond its own operations. It collaborates with local environmental organizations and community groups to support initiatives such as tree-planting drives, beach clean-ups and environmental educational programs. These initiatives aim to raise awareness and engage the community in environmental conservation efforts.
    • Impact measurement and evaluation: To ensure the initiative’s effectiveness, my company monitors and measures its environmental performance regularly. Key metrics such as energy consumption, waste reduction and paper usage are tracked to identify areas for improvement and set targets for continuous progress.

    Related: 10 Ways to Make Your Business More Socially Conscious

    Challenges and obstacles

    While social responsibility and sustainability may seem easy, companies may face a few issues when they begin adopting new practices. The first is that many business owners don’t understand what these policies can look like. Company owners will often say they care about the environment and their staff, but they won’t have well-defined initiatives to show how they’re following through.

    Reluctance to change is one of the biggest obstacles to promoting sustainability. Company leaders might believe the task is too daunting and think business is already going well so they don’t see a reason to change it. They also might wonder what the metrics would look like to measure the changes. Since there’s no one step or framework to CSR, many businesses don’t know where to start.

    My recommendation is to start with smaller initiatives that get everyone in the organization on board, including the customers. A local highway cleanup would be a great place to start as it’s easy to organize and will make a community-wide impact.

    Strategies for incorporating CSR into business operations

    Integrating CSR and sustainability into your business practices may appear challenging, but I have some strategies to help you put your plans into action. You’ll need leadership commitment and support. In order to do this, get down to what customers want. Create a customer survey and find out what social causes your current customers support and care about.

    According to the 2023 Business of Sustainability Index, 74% of consumers care about the environmental impact of the products they buy. Consumers are specifically searching for companies that are socially responsible to buy products from but need help recognizing which companies are environmentally friendly.

    Make it easy for your consumers to see you have CSR initiatives established in your organization. This can be done by incorporating it into your mission statement, using clear labels on your products and getting third-party tested. Make it known on your social media pages and website you can be counted on as a company that participates in CSR.

    There’s been a shift over the years to consumers willing to pay more for products that are environmentally friendly. The same report goes on to say in 2023, 68% of consumers are willing to pay more for environmentally friendly products vs. 64% in 2021. So take that into consideration when making changes to include CSR in your business and benefit from a more positive reputation and loyal clients.

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    Jason Miller

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  • The Magic Words Netflix Co-Founder Wants to Hear in a Pitch | Entrepreneur

    The Magic Words Netflix Co-Founder Wants to Hear in a Pitch | Entrepreneur

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    On every episode of Entrepreneur Elevator Pitch, we learn new lessons about what gets investors’ attention and what leaves them yawning. During this week’s show, Marc Randolph, the co-founder of Netflix, explains that touting your ability to get new customers is fine, but what gets him excited is if you can figure out how to keep them. “The one-and-done model is the surest sign to me that you’re going to piss away all of my money,” he says. “But build a machine that can get the same customer to come back to buy over and over and over again? Well that my friend is lifetime value, and now you’re speaking my language.”

    Related: Watch to See If a Hangover Cure Can Land a $150K Investment in 60 Seconds

    As always, this episode features three entrepreneurs who step into an elevator and have just 60 seconds to pitch their business. If our board of investors likes it, the elevator doors open and the entrepreneurs are invited in to try to make a deal. If the investors don’t dig what they hear? The elevator gets sent back to the ground floor, and the entrepreneurs are sent packing.

    Episode 2 Entrepreneur Elevator Pitch board of investors:

    • Marc Randolph, co-founder and first CEO of Netflix, master of scaling
    • Kim Perell, CEO of 100.co, serial entrepreneur and investor
    • Jonathan Hung, angel investor and venture capital partner

    Episode 2 Entrepreneur Elevator Pitch contestants:

    Who wins, and who gets sent down?

    One tech entrepreneur has an intriguing pitch, but will they be able to convince the investors that it’s different from existing platforms? And on other segments, we see a deal-making brawl break out and a surprise $10,000 investment from Amazon Business that will change the trajectory of a startup that’s trying to do good in the world. Watch and see who gets what!

    Season 9 of Entrepreneur Elevator Pitch is presented by Amazon Business with support from State Farm. New episodes stream Wednesdays on entrepreneur.com. Follow Entrepreneur Elevator Pitch on Facebook, YouTube and Instagram.

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    Entrepreneur Staff

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  • 4 Strategies for Turning Your Business Idea into a Reality | Entrepreneur

    4 Strategies for Turning Your Business Idea into a Reality | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    You have a brilliant idea that has the potential to change everything. You believe it will appeal to a wide audience and are passionate about it. So, how can you turn your concept into a reality? There are many people who deal with this issue. Many ambitious business founders struggle to go past the concept stage and begin implementing their ideas.

    Resources being depleted, failure anxiety, self-doubt, procrastination and analytical paralysis are just a few of the traps they fall into. They wait impatiently for the appropriate situation, opportunity or connection to arise. Perfection, however, does not exist. The only way to make your vision a reality is to put in a lot of effort, draw lessons from your errors and keep going without looking for perfection.

    Here’s some guidance on how you can move ahead:

    Related: How to Turn Your Idea Into Success

    1. Define your vision and your “why”

    Before you take any action, you need to have a clear vision of what you want to achieve and why you want to achieve it. In order to effectively plan for success, it’s vital to implement the SMART methodology when developing your vision. This means defining specific goals that are measurable in terms of the progress made over time; achievable within reasonable means; relevant in their ability to support broader plans; and anchored by clear deadlines.

    For example, rather than simply wishing for entrepreneurial success, you might aim to create a profitable digital platform for freelancers seeking clients before December 2023. A strong “why” is similarly essential: Don’t just aim for wealth at any cost. Instead, align aspirations with personal meaning. Establishing shared dreams like reaching financial independence so that you can explore the world together as a family adds meaning to otherwise scattered pursuits.

    2. Break down your goals into manageable steps

    You need to divide your goals into doable steps after you have your vision and your “why.” This will assist you in coming up with an effective plan of action and preventing overload.

    Determine the primary checkpoints or phases of your project before you begin. If you intend to start an online platform, for instance, some milestones may be:

    • Verify your hypothesis

    • Create a minimally viable product (MVP)

    • Utilize actual users to test your MVP

    • Utilize feedback to iterate and enhance your product

    • Introduce your goods to consumers

    • Expand your user base and income

    Then, for each milestone, list the specific tasks or actions that you need to complete. For example, for validating your idea, some tasks could be:

    • Conduct market research

    • Define your target audience

    • Create a value proposition

    • Design a landing page

    • Run a validation experiment

    Finally, prioritize your tasks based on urgency and importance. Use tools such as calendars, planners or apps to organize your tasks and track your progress.

    Related: How to Take Your Product From Idea to Reality

    3. Take consistent action every day

    The key to achieving any goal is taking consistent action every day. Even if you only have 15 minutes a day, use them wisely and productively.

    Don’t wait for inspiration or motivation to strike. Instead, create a routine or a habit that supports your goal. For example, if you want to write a book, set a daily word-count goal, and write every morning before checking your email or social media.

    Don’t let perfectionism or fear of failure stop you from taking action. Instead, embrace imperfection and failure as part of the learning process. For example, if you want to launch a podcast, don’t worry about having the best equipment or the most polished script. Just record your first episode, and publish it online.

    Don’t compare yourself to others or get distracted by shiny objects. Instead, focus on your own journey, and celebrate your wins along the way. For example, if you want to grow your social media following, don’t obsess over how many likes or followers others have. Just post valuable content consistently, and engage with your audience authentically.

    4. Seek feedback and support

    Lone wolf mentality does not bode well in business endeavors, regardless of one’s talent or idea. Improvement of one’s product or service requires active participation, feedback and support from others. Seeking constructive feedback relevant to the project during its various stages could come in handy — potential customers, existing users, mentors, experts and peers could play a big role here.

    Seek support from people who can help you with different aspects of your project: co-founders, partners, employees, freelancers, consultants, coaches, investors, etc. Delegate tasks that are not within your core competencies or that take too much time away from your main goals. Collaborate with people who share your vision and values and who can complement your skills and strengths.

    Seek inspiration from people who have achieved what you want to achieve: role models, mentors, heroes, etc. Learn from their stories, strategies, mistakes and successes. Reach out to them if possible, and ask for advice or guidance. Follow their example, but also find your own voice and style.

    Related: Got an Awesome New Business Idea? Here’s What to Do Next.

    Moving beyond the idea stage is not easy, but it is possible if you follow these strategies:

    • Define your vision and your “why”

    • Break down your goals into manageable steps

    • Take consistent action every day

    • Seek feedback and support

    Remember: Ideas are cheap, but execution is priceless. So, don’t let your idea die in your head. Take action today, and make it happen!

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    Candice Georgiadis

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  • 5 Customer Service Phone Tips to Keep Your Sales Coming | Entrepreneur

    5 Customer Service Phone Tips to Keep Your Sales Coming | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Talking on the telephone with customers is a pretty unflashy form of customer service interaction. And as a customer service consultant, trainer, and eLearning training designer, I can sense how its importance is getting overlooked more and more.

    Too bad: The telephone’s ability to provide human-on-human interaction with real-time cues continues to make it a powerful brand builder, a way to turn your customer service operation from a cost center to a source of customer engagement, loyalty and revenue.

    In today’s varied, tech-informed customer support landscape, voice-based customer support via the telephone is more important than ever before.

    This is because:

    • With the rise of digital communication and self-service, telephone conversations between customers and brands have become rarer — and thus more precious. When a customer only interacts with you on the phone once or twice in their entire journey with your company (rather than every day or even multiple times a day), every call represents a chance to make a real and lasting connection. This single interaction can create a halo of personal connection and care that can positively color all those other electronic, often non-peopled interactions that are so typical today.
    • Customers are typically in greater need (even distress) when they reach out to a business on the phone today. They’re more likely to be at their wit’s end, dealing with a thorny problem that self-service tools have failed to answer. In this situation, they’re likely to feel gratitude for every ounce of phone skills we can command.
    • A telephone conversation offers a chance to shine in a cue-rich environment. A telephone conversation offers multiple clues as to what is going on emotionally on both sides of the conversation, including tone and volume of voice, speed of speech, length of pauses, and more. This allows you to adjust your approach in real-time in response, which can improve your ability to solve problems with empathy and aplomb and ultimately deepen your customer connections.

    This, in turn, can help you shine as a brand and as an organization and help you make strides toward building up to an iconic level of customer service.

    To start on the right telephonic foot (so to speak!), a business should consider its answers to the following five questions, which I focus on in my customer service training and consulting when working on improving telephone procedures and nailing down best practices.

    Related: 5 Life-Changing Customer Service Secrets You Can Learn From Five-Star Hotels

    1. Who should be answering our telephones?

    Unfortunately, it is commonplace for companies to consider reception and phone support entry-level jobs — positions that an employee is supposed to graduate from as quickly as possible. But isn’t it safer to put entry-level employees in positions hidden from customers rather than front and center, where they become the company’s voice?

    In my experience, the right employee to become your company’s voice is not looking to graduate quickly from that position but instead willing to devote themselves to making the most of it.

    And be sure you don’t count out those of an advanced age! In my experience, a grandparent, parent or someone else with extensive and varied life experience is often the person who can provide a calming, empathetic, personable phone experience better than anyone.

    Related: 5 Phone Answering Mistakes That Drive Away Customers

    2. How quickly should we be picking up?

    You need to aim to pick up by, or just after, the third ring. By the fourth ring, callers start to feel uncomfortable, doubting whether you’ll ever pick up, and they begin to assume that if you finally do, you’ll be too distracted, overwhelmed or flustered to be much help. If you commit to the 3-ring rule, you’ll be joining some iconic companies, such as Nordstrom and the Ritz-Carlton Hotel Company who have taken the 3-ring limit to heart. (In fact, it’s standard of the Forbes Travel Guide rating system; you get points taken off if you delay beyond that third ring.)

    Related: The Best Customer Service Companies Spend These 8 Minutes A Day Becoming Better Than the Rest of Us

    3. What should we say when we answer?

    The absolute most important things to convey here to the caller are 1. That they’ve reached the right place 2. Your name.

    But if you really want to get this right, consider taking a page out of the customer service training I offer. If you’ve worked with me ever before, you know I preach that you include at least four elements in your answer, any time you pick up an external line. e.g.,

    1. A greeting: “Thank you for calling,”||

    2. The name of your business: “Business X”

    3. Your name: “This is [Julie] or [Julie Smith]

    4. An offer to help: “How may I help you?”

    4. What should we sound like when we pick up?

    Fabulous, of course! Achieving this will depend on multiple elements working in concert, including the following two key secrets to getting off with a great start:

    • Make sure you’re smiling. When you smile, it changes your vocal tone in a very easy way to pick up, even within the limited audio range of a phone line. Some veteran phone professionals even use tape or Velcro to stick a compact mirror at eye level in their workspace to remind them to smile every time they pick up the phone. Yes, I know this is dorky, but it works. (A quick caution about sounding cheery and smiley at the wrong time: Once you’ve given your initial greeting on the phone, it becomes time to start emulating the mood and pacing of your customer. This will sometimes call for something other than a cheery tone of voice.
    • Make sure that you sound focused on the caller from the first second that the customer hears your voice. Customers can sense even the briefest moment of disengagement at the beginning of a call. Pause any prior activity before answering the phone to be sure your mind is entirely focused on the call — and that you sound that way.

    Related: 5 Ways You’re Wasting Your Customer’s Time on the Phone

    5. How should we conclude each call?

    Ending your call on a good note — providing a “fond farewell” — is as important (or nearly as important) as getting the opening of your call right. This is because of the proximity effect, the psychological finding that the last part of an interaction lingers in someone’s memory.

    As the call is winding down, ask if anything else is needed. If the caller answers “no,” conclude the interaction with a personal farewell that includes their name and perhaps another personal detail like, “It’s been great working with you, Margaret. I’ll see you back here on Thursday, and I’ll call you if anything changes.” Also, if it’s appropriate to the situation, invite them to call on you for assistance in the future.

    Related: 5 Simple Ways to Get Prospects to Stay on the Phone With You

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    Micah Solomon

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  • How You Should Dedicate Your Early 20s to be a Successful Entrepreneur | Entrepreneur

    How You Should Dedicate Your Early 20s to be a Successful Entrepreneur | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you are aspiring to become an entrepreneur, your early 20s are the perfect time to get started.

    By spending this important time in your life getting the right qualifications, building great personal qualities, and expanding your professional connections – you’ll be thanking yourself down the road.

    Acquiring a higher education qualification

    Your early twenties are the perfect time to obtain an additional degree or certificate to add to your resume. This is especially true if you aspire to become a business entrepreneur. If you are looking to start a new business venture, enrolling to complete an MBA online, for instance, will provide you with invaluable life skills, capabilities, and technical knowledge that you can bring to your new business.

    Related: The 9 Most In-Demand Professional Certifications You Can Get Right Now

    Also known as a Master of Business Administration, an MBA will effectively teach you the many skills you require to be successful as a business entrepreneur. Some of the course material you are likely to cover during an MBA degree will usually include:

    Business function skills and expertise – If you’re venturing out on your own, you need to know the business world and how it functions and operates. Studying core MBA units around strategic decision-making, planning, and analysis is essential to becoming a business expert. Your business studies will also focus on understanding and leveraging marketing concepts. Some of these concepts will cover the areas of consumer demand, supply chain management, and marketing data analytics – to name a few.

    Related: Do You Need an MBA to Succeed in Business?

    Leadership and management capabilities – A competent leader is essential to running your business. If your venture is successful, you may hire your own staff in the not-too-distant future, even in your early 20s. The best part about this is that by training your employees to understand how to operate your business autonomously, your own workload will be greatly reduced. Ideally, you want to be able to employ staff who can run the business without you. Essentially, the goal is to generate somewhat of a passive income without having to physically be involved in the daily operation of your business.

    Transformational change techniques and strategies – Lastly, you need to learn to adapt to change. As such, learning and developing techniques and strategies that will assist with adapting to transformation and change is invaluable for any business entrepreneur. Some of these capabilities involve understanding how to navigate the complex and changing landscape of the business world. Additionally, it will help you make strategically-beneficial business decisions.

    Developing relevant personal characteristics

    As well as pursuing formal education, if you’re serious about becoming a business entrepreneur, you need to cultivate certain personality traits, characteristics and personal attributes. These include:

    Passion, drive and ambition – If you are an aspiring entrepreneur, you will already have the passion to get yourself going. You may also have a new business concept in mind. Your passion for this concept will drive and propel you forward. If you are in your early 20s and you are already passionate enough to want to start your own business, you definitely have it in you to succeed. Next, you’ll need to put in the work.

    Related: 13 Characteristics of Successful Hustlers

    Discipline and motivation – Sometimes, passion isn’t enough. You also need to stay consistently motivated. It can If you’re not feeling especially motivated, then you need to learn to be disciplined. There is a difference between being motivated and being disciplined. Discipline will enable you to stick to your positive habits, routine, and objectives, even when lacking motivation. As such, it is vital to develop this important attribute to stay on track toward your business goals.

    Dedication and a strong work ethic – Dedication and a strong work ethic are central to success as a business owner. Undoubtedly, the road ahead will be bumpy, and many obstacles will come your way. The only way to combat this is to work through the challenges and remain dedicated to your cause. By showing dedication, hard work, and commitment, you also become a role model to the staff you employ to help run your business in the future.

    Building your professional network

    There’s no way around it; if you want to be successful in the business world, you need to network. Perhaps the best way to expand your network is to engage with a professional business mentor.

    Related: Communication Tips 7 Entrepreneurs and Leaders Wish They’d Known in Their Early 20s

    Importantly, engaging with a mentor who can show you the ropes of the business world is extremely helpful, especially when you are starting out on your own. Likely, your mentor will already have experienced exactly what you are about to go through as a new business owner.

    Your early 20s are a formative time in your life. And, if you make the most of these years by developing the skills and characteristics required of a business owner, your ambition to become a successful entrepreneur is well within your reach. So, take the time to invest in higher education, cultivate desirable personal qualities, and grow your business network.

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    Under30CEO

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  • The 9 Most In-Demand Professional Certifications You Can Get Right Now | Entrepreneur

    The 9 Most In-Demand Professional Certifications You Can Get Right Now | Entrepreneur

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    Professional certifications are vital additions and improvements to your resume. In fact, the right professional certifications can help you qualify for higher-paying jobs or break into new industries even if you don’t have a specific degree.

    Whether you’re looking to upgrade your current position or switch careers, you need to know about the most in-demand professional certifications you can get ASAP. Let’s take a closer look.

    What are professional certifications?

    Professional certifications are credentials you earn through short-term classes or programs, depending on the subject matter. Once you earn a certification, you can put it on your resume, join certain organizations and qualify for different positions.

    As an example, you may need a professional certificate to become a project manager at your current place of employment. To become a certified professional, you’ll attend a certification program from an organization like Google.

    Think of professional certifications as extra qualifying credentials on top of degrees. In many cases, degrees are combined with certifications to show that a job candidate has the skills and practical expertise to fulfill a position’s requirements.

    Professional certifications typically take anywhere from a few weeks to a few months to earn (although a few may take several years), and some just require you to take a test without completing a program beforehand. A certification exam covers the fundamentals of the topic and lets you demonstrate competency. They’re often required for certificates in information technology, healthcare and business management.

    Many professional certifications require several years of experience or a degree before you can apply for them. Completing online courses also allows you to qualify for critical career path certificates. Organizations like the Project Management Institute offer certification courses for professional development and continuing education purposes.

    Related: Get CompTIA-Certified on Your Own Time and Kickstart Your IT Career

    Why do you need professional certifications?

    You may need a professional certification for a variety of reasons, including:

    • You want to progress your career. Some high-level and high-paying positions in your field may require you to have one or more certifications on top of a degree and several years of experience.
    • You want to enter a new field or industry. In some cases, a certification can stand in as a degree if you already have a bachelor’s in another major. For instance, if you have a bachelor’s degree in English but you wish to become a teacher, a teaching certification could qualify you for teaching positions.
    • You want to maximize your salary potential and resume attractiveness. Simply put, if you wish to earn a promotion or qualify for a higher pay grade, you might need a professional certification so management can justify the pay raise.
    • You just want to learn more about your field or a specific subject. Since professional certification programs take less time to complete than degree programs, they are optimal opportunities to learn more about a particular topic without committing a few years of your life to the process.

    For these reasons and more, you might want to know about the most in-demand professional certifications to pursue. However, you should look at factors like pricing, continuing education units and more to find the right certification for your needs.

    Related: Climb Up the Career Ladder with This Certification Training

    Top 9 in-demand professional certifications

    Good news: there are dozens of different professional certifications you can earn in the near future. However, it’s wise to prioritize your professional certification education.

    To that end, here are nine top professional certifications that should help you in a variety of different industries and jobs.

    1. Certified Associate in Project Management (CAPM)

    Project management is one of the most in-demand skill sets in business, finance, technology and more. If you want to become a supervisor or manager in any capacity, you’ll need a certificate proving you have the skills needed to succeed.

    That’s where the CAPM certificate comes in. This associate-level certification is perfect if you still need to gain experience managing company projects. You need 1,500 hours of project experience or 23 hours of project management education. Then you’ll need to pass a 150-question exam and pay a fee of up to $300.

    2. Project Management Professional (PMP)

    Another good project management certificate to complete is the PMP certification. This advanced certification is perfect for professionals with project management experience. It marks you as a capable project management specialist, and it requires 7500 hours of project leadership experience. If you have a four-year degree, you can cut down the hours requirement to 4500 hours instead.

    You’ll also need 35 hours of education project management. Pass the 200-question exam and pay the fee of up to $555, and you’ll get the certificate in no time.

    3. IIBA Agile Analysis Certification (IIBA-AAC)

    Business analytics is a growing field, and it’s no surprise why. Businesses need a lot of data to understand their customers, and those who can analyze that data are invaluable employees.

    To prove your data analytics skills, consider pursuing the IIBA Agile Analysis Certification. This standalone certification designates you as an adaptable, high-performing data analyst in changing and evolving environments. To acquire this certificate, you’ll need to finish an 85-question exam in two hours, plus pay the exam fee of up to $525.

    Notably, you don’t have to complete any eligibility requirements besides two to five years of agile-related experience. To maintain this certification, you must pay for recertification every three years.

    4. Certified Supply Chain Professional (CSCP)

    Aspiring or current supply chain managers should consider the CSCP certification. This is a globally recognized supply chain certificate proving you are a credible, experienced supply chain management specialist.

    Fortunately, many supply chain professionals will already have most of the requirements needed to acquire this certificate. You need a bachelor’s degree or equivalent, at least three years of related business experience and at least one other approved certification. Then you just need to pass the exam after paying a fee of up to $969.

    5. CompTIA A+ Technician Certification

    IT professionals can often benefit from pursuing certificates that prove specific skill sets. The CompTIA A+ Technician Certification is perfect for beginning workers who want to get into the technology field without formal computer science degrees or education.

    When you graduate from this certification program, you’ll be able to troubleshoot technology of all types. It’s a perfect certificate for pursuing support specialist or help desk technician positions, plus it qualifies you for further on-the-job training. You need to pass the written exam and pay a minor fee to acquire this certificate.

    6. SHRM-CP Certification

    Every business needs a team of human resources professionals. The SHRM-CP certification could qualify you for open HR positions, and there are other good reasons to pursue this human resources certification as well.

    For example, HR professionals with this certification have more credibility than others, qualifying them for higher-value positions. Once you have this certificate, you’ll likely also earn 14% to 15% more than your peers. In other words, it’s a fantastic progression certificate to pursue if you know you want to stick with the HR field.

    To get this certificate, you should apply for the program and study for three to four months before taking the exam. It takes about four hours to complete, but most candidates complete the exam and earn their certificates before the allotted time expires.

    7. Google Digital Marketing and eCommerce Professional Certification

    Google offers a handful of very desirable certificates as well. One of them is the Digital Marketing and eCommerce Professional certificate, which is split into seven courses with distinct focuses. These help you develop new insights and knowledge into digital marketing and online commerce strategies for your brand.

    It’s a go-to marketing certification choice for those who want to become digital marketers without marketing degrees. It takes about six months to complete with 10 hours of study per week, and you have to pay $39 monthly for a Coursera subscription. Still, this adds up to less than $300 over the six-month timeframe for most students.

    8. Google Project Management Professional Certificate

    Then there’s the Google Project Management Professional Certificate: another in-demand certificate to pursue for project management specialists and team leaders across industries. The certificate program includes 140 hours of instruction and many different practice-based assessments.

    Upon completion of this certificate program, all students can apply for jobs at Google and many other employers throughout the US. It takes about six months to complete and once more, you need to pay a $39 per month fee for Coursera’s subscription.

    For this program, you can take advantage of financial assistance from Google. All in all, it’s a great certificate to pursue for middle-level managers wanting to increase their skills and job responsibilities.

    Don’t forget to check out Google’s other certificates in Google Analytics, Google Cloud security and machine learning and more.

    9. IBM Data Science Professional Certificate

    The IBM Data Science Professional Certificate is a stellar choice for future data scientists and IT professionals. It doesn’t require any prior knowledge of computer science or programming languages, and it entails nine courses in total.

    Not only will completing this certificate program qualify you to work in entry-level data science jobs, but you’ll also get an IBM digital badge. You can add this to your portfolio and resume, making you more likely to be hired. You can even earn up to 12 transferable college credits since the lessons are ACE recommended.

    To complete the program, you’ll need to take about 11 months of study. You’ll also need to subscribe to Coursera for $39 per month. In total, expect to pay around $429 for 11 months of study.

    Related: 4 Benefits of Earning a Certification in Your Field of Expertise

    Get the certification you need to propel your career

    Ultimately, any professional certification could be just what your professional portfolio needs.

    Some other excellent professional certifications that look great to potential employers include:

    • SEO certification.
    • AWS fundamentals certification.
    • Social media marketing certification.
    • SFP (Sustainability facility professional) certification.

    Consider acquiring one or several certifications in the near future, and fuel your career.

    Check out Entrepreneur’s other guides and resources for more information on this topic.

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    Entrepreneur Staff

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  • Don’t Let These Myths About Entrepreneurship Hold You Back | Entrepreneur

    Don’t Let These Myths About Entrepreneurship Hold You Back | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Becoming an entrepreneur is one of the best ways to build wealth. Yet far too many people let fear or misperceptions about starting a business keep them from investing in their futures in this way.

    It’s time to dispel some of the myths about entrepreneurship that are holding people back.

    Myth #1: Starting a business always comes with a lot of risk.

    Truth: You have more control over risk than you may think.

    If you didn’t grow up with entrepreneurial parents, chances are you grew up believing that starting a business is far riskier than working for someone else.

    Many people are taught from a young age that a job with an established employer that offers health insurance, a 401(k) plan with an employer match and paid time off is “safe.” But that’s not true. You can perform well in a role with an established company and still lose your job with little to no warning. In recent months, there have been plenty of news stories about thousands of employees with some of the biggest companies in the U.S. waking up to discover they’re out of work.

    How does this compare with the risk of working for yourself? If you start a business with only one client, it’s similar. If you build a robust and diverse list of clients instead, you begin to bring that risk way down.

    Remember that when you are an employee, you have a single client. When you are in business, you have many clients, so if one client fires you, you are not out of business.

    The key here is to grow your business as quickly as possible, from zero clients to a diverse client base that generates at least as much income for you as your full-time job. How do you do that? Educate yourself on your business. The more you know about investing in a business and the specific industry and market for your business, the more you’ll be able to minimize your risks.

    Does starting a business come with risk? Of course. But you have a lot more control over that risk than you think.

    Related: 4 Myths About Entrepreneurship You Need to Stop Believing

    Myth #2: Starting a business is expensive.

    Truth: The government will pay you to start and grow your business.

    This myth stops a lot of would-be entrepreneurs in their tracks. Many people have the desire to start a business and a great idea of what that business would be, but let fear of the start-up costs prevent them from taking even the smallest action.

    If that’s you, instead of making assumptions about the costs, get the facts instead. Invest some time into creating your business plan, including an assessment of the start-up costs. You’ll also want to have a good handle on what revenue and expenses you’re likely to see in the first year of operation.

    The cost structure of your business will vary greatly depending on the industry and nature of your work. Thanks to technology, you can start many businesses with very little up-front capital. But don’t immediately rule out a business idea if these initial costs seem large.

    Governments worldwide have created financial incentives for people to start and grow businesses that can offset many of these costs. Business owners can access some of the best tax credits and deductions. In fact, most of your up-front and first-year business expenses are deductible, including:

    • Equipment
    • Rent or capital to purchase a location (or your home office)
    • Staffing costs
    • Legal expenses
    • Marketing

    If you anticipate operating the business at a loss in the first year, don’t despair. That’s common in many business models, and the government offers some assistance here as well. Losses from the business can offset other income, such as interest, dividends or a spouse’s wages.

    Related: Considering a Government Program to Support Your Startup? Here’s What You Need to Know First.

    Why do governments offer these incentives? Because they want more people to start and grow businesses that create jobs and provide goods and services to their community. A thriving private sector helps keep the population happy and secure. Governments see so many benefits from entrepreneurship that they offer a host of tax credits as additional incentives. Depending on the type of business you start, the location you select and the workers you employ, you may be eligible for credits that directly offset the amount of tax you owe dollar for dollar. Common business tax credits include credits for:

    • Creating jobs in economically distressed communities.
    • Hiring people from targeted groups that have faced significant barriers to employment.
    • Offering a qualified health care plan to employees.
    • Providing paid family and medical leave to employees.
    • Research and development.

    Myth #3: I’m too old to start a business.

    Truth: If you’re over 40 and starting a business, you’re in great company.

    You’ve heard many stories of successful entrepreneurs who started their companies in their college dorm room or parent’s garage. And starting a business early in life — before you have the responsibilities of raising children or caring for aging parents — has a certain appeal.

    But it’s not too late if you didn’t take the entrepreneurial plunge in your 20s or 30s. A recent study of more than 2.7 million entrepreneurs found that the average age of successful founders was 42, and the average age of founders of the fastest-growing companies was 45. And that’s the average, so plenty of people have successfully launched companies in their 50s, 60s and beyond. Colonel Sanders didn’t perfect his fried chicken recipe until he was 50, and he was in his 60s when he first franchised it, creating Kentucky Fried Chicken.

    Embarking on business ownership after establishing a career means you can bring more experience, and potentially more capital, to your venture. You also may be able to start a business while maintaining your current employment. As long as your business doesn’t create a conflict of interest and your schedule allows it, starting a business on the side can be a great option. It opens up the tax benefits of business ownership while maintaining your current salary, giving you a great on-ramp to launch your new venture.

    If you or someone in your life has been thinking about starting a business, now is the time. Debunk the myths and get started today.

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    Tom Wheelwright

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