Tag: Growth Strategies

4 Steps to Create a Online Community for Your Brand
Opinions expressed by Entrepreneur contributors are their own.
A community can be formed in many ways. For example, it can be done through social media, offline events or by creating an online forum. In order to create a community on social media, you should post content that will attract people who have similar interests as you. You should also make sure that the content is interesting enough to keep them coming back for more. But basically, you have to execute four main things in order to get going in the right direction:
1. Define the core values of yourself and your community.
2. Go live on a regular basis (minimum once a week).
3. Use the common language of your target audience (through qualitative studies and conversations, you identify pain points and needs of your audience).
4. Co-creation of content (integrating and tagging people you interviewed in your podcast and from Q&A sessions, for example).
This is how I executed these four steps in order to build my community, and it will also work for your brand if you’re willing to execute and answer a couple of questions:

Related: 3 Examples of How to Build a Strong Brand Community

Define the core values of yourself and your community

This first step already was tough for me, because I was not really sure about my core values. “What is a value at all?” I asked myself. I am from Germany, and being on time is also, for many people, a value. I thought about my existing clients and how they think about artificial intelligence. They are all fascinated by AI and use it almost on a daily basis. A common thought that I heard in my live shows was that AI is a strong tool and is here to help human beings. So, I wrote that down: “AI is a tool and not a human replacement.”

The other thing that I thought a lot about is that I am very focused on these tools, and I could do this all day long — testing new tools and giving feedback on a regular basis — but most people don’t like to test new tools. So, this is a big pain point for a lot of companies, and CEOs struggle to convince their teams because they are afraid of being replaced. So, I wrote down “People and training first. AI second.” It made sense for me to define this approach and make sure that our responsibility is to train people so that they can use AI in the right and ethical way.

It is important to find your people and build a community with core values. It can be a blog, podcast or YouTube channel. The idea is that you are building an audience of people who are interested in the same things as you are. However, a community is not just a group of people who share the same interests. It’s more than that — it’s a group of people who share the same values and beliefs, which creates an emotional connection between them.

Values can be a powerful tool for driving change in your business, but they have to be authentic. Values can be used to influence behavior, create meaning for employees and customers, attract talent, build trust with customers, set standards for quality of service or product and achieve business goals. A company’s values should align with its mission statement and create an emotional connection between the company and its customers. Core values should be a clear expression of who you are as a company or organization, as well as what you stand for.

The more clear you are about your core values, the easier it is for you to build trust with customers. So, make sure to ask yourself these questions:
- What do you want to stand for as a company?
- What do you want to represent?
- What are the beliefs that drive your decisions?
Once you have the answers to these questions, make sure they are communicated internally and externally so that they guide every decision and action taken by everyone in the company.

Related: A Successful Online Community Needs These Key Elements

Go live on a regular basis (once a week at minimum)

Going live on a regular basis is one of the core components of community-building. You just have to make sure that it is not only about your products and services. It should go deeper than that and have real value for the people you want in your community — which creates trust. This is a very iterative process! When I first started, I spoke with my interview guests about broader topics like content marketing and sales. Then I was introduced to the world of AI-generated content and thought, “That is really cool! I want to get more knowledge about all these tools and the founders,” so I launched a new concept and started interviewing CEOs of software companies.

Going live and interviewing those people helped me to build strong relationships with them, and I also started to work with them more closely. Some became clients, some became cooperation partners, and we support each other. The main point here is that going live and creating content together is a very strong approach to building trust online.

Use the common language of your target audience

This sounds like a big step, but this is really easy to do with a survey that you organize. I did a simple Google Survey and sent it to all my interview guests within the AI niche. They responded with quotes, concerns and struggles they have in their head. One common thing was that they didn’t have time to create content for themselves. Even when they are CEO of an AI-generating software, they couldn’t sit down for 60 minutes to go live or write a blog article. This was fascinating for me because I didn’t have that on the radar, but through this survey, I was stepping into the conversation in their heads and using their own words for my own content campaigns.

Related: How to Build an Online Community People Will Love

Co-creation of content

This is really where the magic happens. Co-creation of content is still under the radar for many entrepreneurs. The idea is simple: People support what they create. This means if you have questions from the chat or live interaction, for example, you can create additional content from their questions. You’re repurposing the content they produce. Always mention these people and tag those who appeared in your show. You can upload your live show and create micro-content pieces out of the larger video. People who are tagged are very likely to share it and like it because their name appears in this content. When you do this all the time, people feel appreciated for asking questions and showing up — that’s how you build a strong community.

The important thing to remember is that this is an iterative process. A good starting point is getting in touch with potential clients or cooperation partners and speaking with them. As marketers, we should stop being too much in our own heads and start being empathic and getting into the heads of our clients and partners. In order to start your own community, take these steps. and execute them. The journey may not be easy, but it will be worth it.
Yakup Özkardes-Cheung

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October 11, 2022
3 Essential Steps for Startups to Keep Enough Cash in the Bank

Opinions expressed by Entrepreneur contributors are their own.

Until your startup is profitable and generating positive cash flow, there is one fundamental question you should be able to answer at any time: How much runway do you have left? Many founders think this question refers to when their cash balance hits zero. Unfortunately, you’ll be in trouble well before then.

As your cash balance approaches the danger zone, your auditors may issue a “going concern” memo. Your bank might get nervous, restricting access to critical debt facilities. Key vendors will become worried when you start stretching out payments, tightening credit terms or even requiring cash up front before they ship that next order.

You need to know the point at which your cash balance gets so low that you risk losing control of your company. Here are three essential steps to ensure you always have enough cash in the bank:

Related: 10 Expert Tips on Managing Cash Flow as a New Business

1. Calculate how many months of cash you have

From the early days of Microsoft, Bill Gates insisted on having at least enough cash in the bank to keep the company alive for 12 months if revenue dropped to zero. Gates understood that cash equals control, and he never wanted to find himself in a position where he NEEDED money from someone else to ensure the company’s survival.

When considering how much of a cash balance you need to maintain, use your forward-looking monthly forecast for operating expenses, inventory purchases and capital expenditures. Don’t rely on historical spending patterns. Most startups are on a growth trajectory that regularly ramps costs and investments, which means your forward-looking targets will be higher.

2. Review these two simple ratios each month

Just looking at your cash balance as an indication of financial health ignores the state of the rest of your balance sheet. Most importantly, how do your current assets compare to your current liabilities, defined as liabilities that must be settled in the next 12 months? Two simple ratios should be a consistent part of your monthly reporting: the quick and current ratios.

The quick ratio measures your company’s ability to cover current liabilities with your most liquid assets, such as cash, marketable securities and net accounts receivable (“quick assets”). The formula for the quick ratio is: Quick Assets / Current Liabilities.

The current ratio, a less conservative measure, compares all of your current assets, including inventory and prepaid expenses, to your current liabilities. The formula for the current ratio is: Current Assets / Current Liabilities.

These ratios help uncover hidden problems that a seemingly healthy cash balance might mask. For example, when your business starts to miss sales targets, you will likely begin to stretch out payments to vendors to maintain your target cash balance. The current and quick ratios can let you know when those deferred payments are creating a risk level in current liabilities that could soon get out of hand.

The target for these ratios will vary from company to company. Big red warning lights should flash if you have a ratio under 1.0. Your Board of Directors might want you to maintain a certain ratio to avoid triggering a fundraise or sale process. There might be industry averages that you can use to benchmark your company against peers.

Assuming you have debt facilities in place, your bank might also have a point of view — which leads us to the third step.

Related: Long-Term Success Starts With Managing Your Startup’s Runway

3. Keep an eye on your bank covenants and “Events of Default”

Another reason that simply relying on your monthly cash balance is a mistake is that you likely have debt facilities that you’ve used to strengthen your cash position. Triggering a default with your lenders can leave your company in a precarious position.

First, be aware of your financial bank covenants. Often these covenants include a quick or current ratio target that you must maintain throughout the term of the loan. This is the bank’s way of ensuring you have enough liquidity to stay current on payments and eventually pay off your debt.

Also, be aware that insolvency can trigger a default condition, which allows your bank to call your debt and demand full repayment. This provision is usually tucked away deep in your loan agreement, under the section called “Events of Default.” Insolvency is a technical term meaning that your total liabilities exceed your total assets. You can have cash in the bank, make your debt payments on time and still be technically insolvent.

Maintaining adequate cash and liquidity levels is the key to always staying in control of your company’s prospects. With so much to think about as a founder, it’s easy to get lost in the weeds of weekly reporting and performance metrics. When all is said and done, spend a little extra time each month taking these steps to reassess your company’s financial health, and you’ll avoid nasty surprises that suddenly narrow your future options.

Related: 5 Ways to Keep Your Business Finances Healthy

Eric Ashman

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October 11, 2022
How to Avoid Nightmare Employers and Job Scams
Lexey Watson, an art director based in New York, thought she found her dream job after graduating. Experienced in advertising but just out of college, Watson felt like this company offered the quintessential “good opportunity” she needed to boost her resume. Aside from promises to work with big-name brands and a client she’d long been interested in, the office itself was hard to pass up: free snacks, comfy couches, natural lighting — who doesn’t love the lax atmosphere of a startup?

After applying for a full-time art director position — and being offered it — Watson ecstatically agreed.

Then, things got weird.

“When I opened my offer letter, it said I was being hired for an internship position, which was never communicated to me before,” Watson says. “I was told it was full-time.”

Thinking it was a mistake, Watson brought it up to her soon-to-be bosses, who said it was “normal” and that “they were working on it.” They said she’d have a full-time position within six to eight weeks.

“I wanted to give them the benefit of the doubt, and they worked with so many brands that I loved, so I felt like it was legit,” she says.

That client she was promised to work with? Not even signed with the company — and wait — it gets weirder. All of the big-name brands it worked with were only in niche overseas markets.

“I was like, ‘Oh, these are great brands, and I’d love to work on those accounts,’ and then it wasn’t even for the U.S. market at all,” Watson says.

Related: 13 Startup Red Flags to Avoid

Aside from being paid minimum wage in her “temporary” intern position — which lasted far longer than the communicated eight weeks, despite Watson’s nudging — she also had to run errands for one of her higher-ups, told it was “something all the interns do” and “not to feel bad.”

The task? Bring an envelope of cash to a psychiatrist on the Upper East Side to fill an Adderall prescription under the table.

“I literally had to sit there like I was a patient. I’d go in, exchange the money and then leave,” Watson recalls. “It was the sketchiest thing ever.”

After a few months, Watson knew she needed out and started actively applying elsewhere — something she didn’t exactly keep a secret from others in the office. Watson recalls a day her bosses asked her to stay late, and she was honest about needing to leave for an interview.

“I made them feel extremely awkward, but I really didn’t have a choice,” she says. “I didn’t want to be sitting in that meeting when I could be out getting a real job.”

The next day, Watson’s boss told her that if she got the job she should “make sure to tell them that you had the role we hired you for” in an attempt to cover his tracks.

It’s been about four years since Watson left that company, and she has found far better opportunities since. Still, the experience holds weight through its sheer layers of misconception — and unfortunately, Watson isn’t alone.

Aaron Aceves, a writer and teacher based in Texas, was recruited on LinkedIn in 2020 by an independently run college prep company under the assumption that he’d be editing and consulting clients on their applications. Once he was on board, though, his boss insisted he essentially write the application essays for the clients, which made him feel both uncomfortable and blindsided. When he finally quit, his boss charged him a “quitting fee,” which led to months of fighting for the money he was owed.

Related: A Financial Checklist for Quitting Your Job

Then there’s David Jacobowitz, who joined a startup whose product he was a fan of in 2016. He was told the company was thriving, only to receive news of mass layoffs just three months later. Higher-ups informed the entire staff, floor by floor, they might not have a job in two weeks. The company had been sinking for far longer than Jacobowitz was led on.

The list goes on.

In an age when it doesn’t take much for someone’s digital footprint to seem legitimate, we’re all vulnerable to falling for jobs that trap us in a bait-and-switch situation.

The people recruiting you are charming and witty, and they have the data (or so it seems) to steer you in their direction. Perhaps you hate your current job, don’t have one or are generally mesmerized by what a new opportunity brings. But when things seem too good to be true, they usually are.

Still, there’s a way to avoid these nightmares and prevent yourself from getting trapped in something you didn’t sign up for. Using Watson, Aceves, Jacobowitz’s — and my own — real-life job catfish experiences, I applied my journalistic skills to vetting employers — going through the motions of a job search as if it were an ongoing investigation to see if these warning signs could be identified and avoided before joining the company.

Related: The New Job-Hunting Checklist

We all know Glassdoor, and although it can be helpful, it can also serve as a vehicle for catfish employers to mask their motives with fake reviews — let alone smaller companies that might not even have a profile or enough data to provide an accurate assessment. If you want to job search like a reporter, you’re going to have to dig a little deeper. Here’s what I found:

Take note of red flags

Take notes during your job hunt, both before the interview and throughout the hiring process. By consciously writing down any findings that seem questionable, you’ll have something to reference if you get the offer but still have concerns.
- Turnover trends: Do some research on previous employees on LinkedIn. See if there are any patterns — how long do people normally stay at the company? When they leave, is there a trend regarding where they go?
- Diversity: Check if there’s a pattern regarding the age, race or ethnicity of people who work there. Aceves recalls various instances where his former employer made off-handed and problematic remarks about Asian employees and clients. Sure enough, all the employees listed on the company’s LinkedIn page appeared to be the same race as his former boss. Diversity is crucial, especially if you’re already on the fence.
- Professionalism: During the interview, pay attention to how the employer talks about current employees and, if applicable, whoever you are replacing. A surefire red flag is if they talk poorly about a former employee. Sure, things happen, and relationships turn sour. But professionalism is still absolutely crucial during the hiring process, so take note of any time it begins to waver.
- Inconsistencies: Take note of any inconsistencies between the job description and what’s discussed in the interview. If either one is vague or seems contradictory to the other, it likely means that the employer or company isn’t clear about what the position entails, which means you might end up doing something you didn’t sign up for.
- Urgency: If an employer is being overly aggressive or pushing you to make a quick decision after sending an offer letter, it’s wise to run in the other direction. Stable companies that value you will give you a reasonable amount of time to make your decision after you’ve been offered the job.
Related: When My Company Had High Turnover of New Employees, I Realized the Problem Was Me

Vetting the hirers

First, do an extensive search on any information readily available online — their job history, social media and presentation on company websites. If it seems like there are gaps, take note of any questions you have for them, or ones that could be answered by doing more in-depth research.
- TruthFinder: Use online resources to do a more extensive background check. Websites like TruthFinder let you do a public record search, where you can see court history, criminal records and other information scoured from the web. Fair warning: It does take upwards of 15 minutes, so be patient, and it costs about $30 a month — but it does deliver what it promises (in painstaking detail). Pro tip: If you’re really in the throes of your job hunt, it has a slightly cheaper version that’s only one month, but you get unlimited searches.
- PACER: As far as free resources, there’s PACER, which lets you search court records by state. This one is a bit trickier to navigate, but if you have a hunch and know the employer’s business address, you can search by the city of jurisdiction and see if they’ve ever filed for bankruptcy or been sued.
Vetting the company

If you’re in the early stages of applying, an easy way to spot “ghost jobs” is to take note of how long the job has been posted and when it was last updated. If it’s been more than a month, it’s wise to run in the other direction, because companies attempt to feign growth by keeping up postings for positions that have either been filled or don’t exist at all.

Related: Employers Are Posting ‘Ghost Jobs’ But Not Really Hiring — And Annoying Job Seekers Along the Way

Next, spend a good amount of time on the company site. How legitimate are the testimonials, if there are any? Does the company have a clear mission and values? Here’s an easy test: If it seems like the company’s mission statement or “about” page could apply to a multitude of services or work, it’s likely not very cohesive in its values. You don’t want to work somewhere with a flimsy mission that lacks clarity. When it comes to researching a company, focus on specificity and nuance, not a groovy-looking landing page.

It’s easy to create fake addresses and phone numbers, so if you want to check the legitimacy of a business, contact the local chamber of commerce associated with the company to ensure it exists.

When it comes to financials, if the company is publicly traded, quarterly reports are available through an easy Google search — this will give you a window into how well the company is performing. If this is new to you, Investopedia has a killer guide to decoding an earnings report.

Related: Red Flags You Should Look for in Quarterly Earnings Reports

If the company is privately owned, financial health is a bit more difficult to suss out, given the company is not required to share financial reports like publicly traded companies. However, there are a few alternatives to gauge a private company’s stability.
- Investors: Many privately owned companies are backed by investors, especially startups. Do some deep research on the company to see if there’s been any press releases or news regarding any investors backing the company, and see what other businesses they’ve supported in the past.
- CB Insights: This is a great resource to check financials for both private and public companies. The database itself is huge, so chances are likely that the company you’re applying to will be listed. CB Insights gives you detailed transaction history of funding, investors, board members and even a window into the company’s web traffic. You can sign up for a seven-day free trial with unlimited searches.
- Don’t be afraid to ask: If you move far enough along in the interview process and haven’t successfully gauged the company’s financial state, don’t be shy about asking how their last quarter was, and if there are any reports or projections for growth they can share.
Interview those from inside

Although the internet has myriad resources to vet possible employers and companies, the best — and cheapest — source is a direct one.

Reach out to former employees if their information is available on LinkedIn or the company site. Although you can ask questions during the interview process, catfish employers are unlikely to show their true colors, and you’re going to want to ensure you speak to someone who will be honest about the culture and work environment. Don’t be shy about making an introduction and asking for more information. Here’s an easy message template:

Hey, X,

I saw you have experience working with Y. I’m on the job hunt right now and weighing my options, I was wondering if you’d be open to answering a few questions I have about Y and the work culture before I make my decision.

Best,

Z

It can seem daunting, but the truth is most people are kind and willing to help. Of all the individuals I interviewed, the number one thing they wish they could have done before taking their positions was to talk to former employees, and they stated they’d be more than willing to warn others in the future. Anyone who has ever been in a nightmare employment situation will not be shy about steering you in the right direction.
Madeline Garfinkle

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October 10, 2022
4 Smart Ways to Deal With Your Competitors

Opinions expressed by Entrepreneur contributors are their own.

The subject of competition can be a very polarizing thing. Many of the world’s most successful professionals proclaim they’re obsessively competitive, almost to a fault. The reality is that if you’re starting a business and you plan to have your business grow, you’ll eventually run into someone who had or has a very similar idea to the one that you can’t stop thinking about. In fact, there are probably 20 different articles on the subject of competition that are competing for clicks with this very article!

So as entrepreneurs, how should we be thinking about our competitive landscape? These are a few of the observations I made as I wrestled with our competitors in the process of building my company:

Related: How to Set Yourself Apart From the Competition

1. Don’t ignore it

When starting something new, it’s important to do a complete market scan to understand what and who you’re up against. Size your market, and list out your direct competitors, frenemies, as well as firms that are one or two moves away from becoming direct competitors. Figure out how much they’ve raised, the depth and breadth of their product offering and the experience of their founders and team. Use tools like Google Trends to understand key terms that are popular and commonly searched in your category to help inform your positioning relative to your competitors.

If you’re unable to find at least three competitors in your space, that’s usually a pretty bad sign. It’s rare to be the first and only product to market. In most cases, entrepreneurs that claim to be “the only product” in the market are still searching for an actual market and problem to solve. Unless you have a unique insight with real customer traction inside of a category you’re creating, it’s usually easier to innovate and disrupt incumbents in an established category with a known problem and a defined buyer profile.

2. Don’t be afraid to share more

Oftentimes, entrepreneurs are hesitant to share any information publicly about their business or the product they’re building. In reality, your incumbents, particularly large established vendors, couldn’t care less about what you’re building. You could literally call the lead product manager working on a product in your space and share your business with them. There’s a very low likelihood that they do anything with the information you share with them.

Big companies have established roadmaps that are difficult to adjust. Even if one of your established competitors wanted to compete with you, it would require them to shift resources off of their current priorities to do so. We went as far as publishing our roadmap publicly for customers and prospective partners to see when and how we were prioritizing things. That actually became an opportunity and moment for us to flex our position and our focus.

When we built our company, one of our direct competitors immediately signed up for one of our free trials. They even took a prospective “partnership” call to get intel and information about our business. Two years later, that same company came back to us and offered to acquire us for a generous multiple of our revenues. In short, it could work to your benefit to share MORE with your competitors. Established competitors may realize how far behind they are in your category and make you an acquisition offer to accelerate their roadmap or build out their team.

Related: 3 Reasons You Should Spy on Your Competition

3. Don’t be an a-hole

As markets heat up, competition can become fierce, particularly if there’s a limited window or land grab opportunity to establish yourself as a category leader. In the heat of battle, it can be tempting to start trash-talking your competitors when in a shared sales cycle. Don’t do it.

It’s okay to highlight the differences between your product and your competitor’s product but do so in a way that elevates both positions while allowing you to reinforce your advantage. For example, if you’re selling to an enterprise customer segment and speaking with a SMB customer, there’s no harm in referring that prospect to a competitor that is focused on selling down market. Not only are you signaling that you genuinely care about the product fit for that customer, but you’re also demonstrating that you don’t NEED their business. Confidence is cool.

When you elect to throw stones at competitors, it suggests you’re overcompensating for something. Prospects can smell desperation from a mile away, and that smell can carry over to future selling opportunities if you let it. Most importantly, don’t disparage your competitors in written form. I’ve had multiple prospects forward me emails from my competitor’s founders/CEOs with all of the apparent flaws in our product and business.

Not only was this great bulletin board material that motivated our sales and product teams, but it also helped us uncover a new market opportunity that we hadn’t considered and that our competitor was beginning to sell successfully. We were second to market with this product; However, we executed better and ultimately won the category, thanks to the insight from our largest competitor.

4. Don’t let it consume you

Competition can be addictive. The highs and lows of success and defeat are what make the game of entrepreneurship fun. It can also be incredibly humbling, particularly when we’re on the losing end of a competitive sales scenario.

Related: Don’t Declare War. Respect Competitors, and Capitalize on Your Own Strengths.

I’m not suggesting that our marketing teams put down their battle cards or that we stop arming our sales teams with the resources they need to set “landmines” for competitive sales scenarios. However, your competitors are one data point that can help inform your understanding of the market you’re operating in. Use competition as an accelerant for your own learning and self-improvement. There can (and will) be multiple winners in a category. This is validation that your category is growing, which in turn drives more attention to the space you’re building in. Don’t run from it. Embrace it.

Justin Vandehey

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October 10, 2022
Check Out an Amazing Deal on a Sam’s Club Membership Ahead of Prime Day

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

Saving money is top-of-mind for everybody these days, but especially for entrepreneurs looking to find ways to keep their businesses in the black. One way you can save money is by taking advantage of promotions like Deal Days, which is our response to Amazon Prime Day, lowering prices on products that will help you lead a better, more productive, more efficient life.

Sam’s Club

So, if you’re looking to save money, it’s time to take advantage of a great deal you can benefit from for a whole year. Now through October 12 at 11:59 p.m, you can get a one-year membership to Sam’s Club for just $24.99.

Sam’s Club is a membership warehouse club that offers members incredible discounts on products that you won’t find at traditional retail outlets. Everything from groceries and office supplies to furniture and electronics are available at Sam’s Club for big discounts — allowing you to save on your day-to-day expenditures as well as those unpredictable big ones. (Time for a new office chair, perhaps?)

In addition to the great prices in the store and online, as a member, you’ll get additional perks like discounts on hotels, rental cars, live events, attractions, and more. So even when you’re traveling for business you can find more ways to save — many hotel accommodations around the world are up to 60% off.

With this deal, you’ll also get a complimentary household card to help you lock in even more savings in-store. And, of course, you can always find amazing value online, as well.

Entrepreneurs know the value of a dollar. With a membership to Sam’s Club, you’ll really figure it out. Now through October 12, you can sign up for half off $50 at just $24.99.

Prices subject to change.

Entrepreneur Store

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October 10, 2022
4 Tips for Responding to an Unexpected Media Inquiry

Opinions expressed by Entrepreneur contributors are their own.

Have you ever gotten an unexpected call from a reporter? What did you do first? If you answered, “panic,” you’re not unlike many clients I’ve encountered. Why is our first response to a media inquiry to panic? And how can we calm down and marshal our resources to answer their questions — without the desire to head for the hills?

Why do we panic when we have to talk to the media?

There’s something about an unexpected media request that strikes fear in people. It may be because we’ve all seen those “gotcha” segments on the news — stories in which a company or its spokesperson looks like the bad guy. When a reporter gets in touch unexpectedly, it can make someone feel as though they’re being put on the spot, and they worry they’ll say the wrong thing.
Even in industries that aren’t fraught with scandals, there are times when ANY business can find itself in the position of responding to a media inquiry they didn’t know was coming their way.

Michelle Garrett

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October 7, 2022
How to Position Your Brand to Win in an Fast-Changing Market

Opinions expressed by Entrepreneur contributors are their own.

The market we work in today is rapidly changing across all industries. We’re working against ultra-high inflation rates, an ongoing labor shortage and a nationwide supply chain crisis that backlogged operations for many companies. During turbulent times, strong and strategic leadership is a must to keep an organization afloat. To move in a forward-thinking direction during these moments of change, leaders must analyze their competitors, identify market disruptors and research industry trends to stay ahead of the curve.

Over the last 20 years as the Founder and CEO of a national multi-million-dollar franchise in the healthcare industry, I have witnessed periods of extensive change in the market landscape. More notably, because of Covid, we’re currently seeing a new wave of market shifts that companies must actively react and respond to. In this article, I will provide examples and a path forward to ensure your organization is set up for success amid a rapidly changing market.

Related: How to Adapt in a Rapidly Changing Economy

How to position your brand to win

As markets evolve, determining the trends influencing your specific industry is the first step you should take to ensure your company is positioned to win. Based on these trends, analyze where the industry is heading and what this will mean for your organization’s future. We’re seeing businesses embrace technology like never before, digitize their processes and align with strategic partners to expand reach. These shifts often issue a new season of growth for companies that comply with consumer demands and align with the direction of where their specific industry is heading. Whatever the reason, to get ahead, be aware of these trends and create an action plan.

Another factor to consider is the danger of the status quo. No matter how large and successful your organization may be, it’s not immune to a changing environment. Adapting and adjusting to industry changes is a key indicator of a company’s future success. A cautionary tale of a business that failed to keep up with a changing market is Netflix‘s displacement of the Blockbuster franchise. Entertainment moved away from in-store disc rentals to at-home streaming, yet Blockbuster did not promptly read and respond to those changes until it was too late.

Watch the competition and recognize disruptors

While monitoring industry changes, keep a keen eye on the competition. Analyze how your competitors respond to real-time market shifts and how your response differs. Another essential key is recognizing disruptors. Disruptors are new companies or technologies that innovate outside your industry and significantly impact the market.

An organization that is notorious for disrupting the market is Amazon. We may think of Amazon as the big disruptor of ecommerce. However, when you take a closer look, Amazon is a highly sophisticated technology platform that adapts across industries — including healthcare, which is my specific industry. CVS is another excellent example. While it may be a retail giant, CVS also offers an array of integrated healthcare services via acquisitions and major corporate partnerships. After key trends have been determined, and you have your pulse on the competition and the industry’s many disruptors, your organization will need to develop a road map to prepare for what’s next.

Related: Why Amazon and Jeff Bezos Are So Successful at Disruption

Embrace a shared vision

Another crucial piece of the puzzle is ensuring all your key stakeholders are on board with your strategic plan for the company’s future. The goal should be to adapt to market changes while staying true to your brand values and mission. This means having tough but necessary conversations with your network to establish alignment.

My organization is currently implementing our strategic plan to adapt to advancements in the healthcare industry. Our brand’s purpose is to enrich the lives of our clients and families, and our brand vision is to expand our reach and the accessibility of home care. As a national franchise brand, we must work with our network of franchisees to ensure we share the same vision for the future. When we initially presented the plan, it was met with hesitation from some franchisees. We continue to hold one-on-one meetings and host network-wide town hall meetings to ensure our franchisees’ voices and ideas are heard.

Despite the adversity and opposition from some players, I have remained steadfast in our vision to uphold the best interests of our network with whatever means necessary to ensure consistency in delivery and quality, expand the addressable market so more seniors can access quality care and deliver on the opportunities ahead. I have received feedback from franchisees that change takes time to process and operationalize. Ultimately, many recognized the value in refocusing efforts to align with the external forces impacting our industry. Many also recognized the opportunity this change presents. Our strategic plan will inevitably drive revenue growth and profitability for the entire network.

A natural reaction to change is opposition. However, the saying goes, “there is strength in numbers,” which stands true as you think about your company’s future. There is the strength behind a network coming together to create change. But a clear path must be put in place so all partners and all parties involved can launch that shared vision to fruition.

Related: How to Maintain Profitability in a Changing Market

The state of the market and knowing exactly where your industry is heading will often be volatile. However, keeping a close eye on market trends, disruptors and competitors and positioning your brand to remain in front of these changes will set your brand apart. Adhere to your organization’s brand mission during moments of change, and focus on areas of improvement to meet current and future industry demands. Be willing to be the leader who will take your organization where it needs to go, even if it may not be where stakeholders desire to go in the short term.

Shelly Sun

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October 7, 2022
What New Entrepreneurs Should Know Amid Rising Inflation

Opinions expressed by Entrepreneur contributors are their own.

Setting up a new enterprise can be both exciting and daunting. You’ll have a lot to think about, but one thing you may not have considered is the impact of inflation on your new enterprise. Open up any newspaper or watch any news report. The higher inflation rates are likely to be a talking point.

How should new entrepreneurs navigate their new business amid rising interest rates? Here are eight things you need to know:

1. Increased Prices

The first way inflation can impact new entrepreneurs is the increased prices in the marketplace. If you are a producer, you may need to budget for the higher cost of raw materials. You need to consider what you need to buy to make your items and look at the price of each component. With higher inflation rates, you could be paying 5% to 8% more for your raw materials, which you will need to factor into your pricing and business plan.

Even if you are not producing a physical product and instead offer services, your enterprise is not immune to the increased prices. You’ll need to consider the additional cost of heating, lighting, gas, and all the other essentials for your workplace.

Related: 3 Strategies To Protect Your Business From Inflation

2. Labor costs

Higher inflation will also impact wages. With the cost of living increasing, workers are more likely to demand higher wages to compensate for the disparity. If your enterprise employs a team or outsourcing any aspect of your business, you will need to look at your labor costs. If you cannot pay higher wages, you will need to anticipate staff attrition or pilfering, as found this study, which will impact your bottom line.

Another aspect of labor costs is the risk of a drop in employee productivity. If you’ve already agreed on rates for your team or freelancers, there is a chance that they will feel less motivated if you cannot increase their wages. This means that even if you keep your labor costs to the same level as your original business plan, you could suffer efficiency issues and produce fewer products, reducing your income/expenditure balance.

3. Currency fluctuations

Even if your enterprise is not a massive importer or exporter, it could still be hit by currency fluctuations. If you purchase raw materials or goods overseas or have overseas freelancers paid in local currency, you will likely find that your dollars don’t stretch as far. While you may have agreed on a rate with a weaker currency, you’ll be paying more. You will need to account for these increases in your enterprise cost analysis.

Related: Inflation Is a Different Beast for Entrepreneurs. Here’s How to Protect Yourself.

4. Borrowing limitations

Borrowing is also subject to the whims of inflation. Many lenders are aware of the increased risks within the market and will increase their rates. Additionally, the Federal Reserve uses interest rates to curb rising inflation. The Fed typically increases the base interest rate to address higher inflation rates and return them to optimal levels. Unfortunately, this rate increase is passed on to personal and business customers.

If you need to borrow funds for your enterprise, you may find that loans are cost prohibitive. Additionally, lenders may be more hesitant to offer loans to new businesses, so you may struggle to qualify with a limited financial track record.

If you already have a business loan for your enterprise and it is not on a fixed-rate deal, you will need to factor the higher interest costs into your expenses. Variable rate loans are subject to rate changes, so you are likely to have your lender contact you to let you know your new rate and when it will apply. This makes it very difficult to budget for your typical monthly expenses as your loan repayments could be higher from one month to the next.

5. Tips to lessen the impact of inflation on your enterprise

Fortunately, there are some things that you can do to lessen the impact of inflation on your new enterprise:

6. Reallocate your business capital

While having cash on hand is a good thing to address any issues that arise with your enterprise, when inflation rates are high, having lots of cash sitting around is not a good idea. The buying power of the dollar is reduced when inflation is high. Let’s say you had $10,000 last year that could buy X number of products. The following year, the same $10,000 would only cover the cost of fewer items.

This means you’ll need to think carefully about what to do with your business cash. If you don’t want to tie up your funds, as you may need access to them, consider a high-yield savings account or short-term bond. While this may not be as inflation-proof as the stock market or real estate, you won’t sacrifice liquidity.

7. Negotiate in the dollar

If you are outsourcing to freelancers or workers outside of the U.S., make sure that you negotiate rates in the dollar. Regardless of currency fluctuations, you will still be paying the same amount. This will eliminate some of the uncertainty, and it will allow you to budget for your costs.

8. Evaluate your expenses

Finally, evaluating your enterprise expenses is one of the most effective strategies to lessen the impact of higher inflation. Have a serious look at all your costs and operating expenses. There may be areas where you can make savings, so you can create a buffer to compensate for any increased costs.

It may be worth reassessing where and how you source raw materials. It may be able to find a better deal or set up a fixed-rate contract to protect against increased costs soon.

Related: 6 Ways to Protect Your Small Business From Inflation Pressure

While higher inflation is daunting, being prepared is the best possible defense against the potential rising costs. With a proactive approach, you can address the potential implications of higher inflation. This will allow you to continue your enterprise with minimal disruption and allow you to weather possible financial storms to succeed with your operation.

Baruch Mann (Silvermann)

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October 6, 2022
How a Clinical Advisory Board Can Grow Your Business

Opinions expressed by Entrepreneur contributors are their own.

Our marketing agency is anything but “average.” We don’t churn out content or try to sign anyone and everyone as clients. Instead, we value quality and only work with people who share our philosophy. I’m extremely proud of the relationships we build with our clients and the marketing we produce for their dental practices, but I’m constantly looking for ways to do more and be better. I’ve always believed that you should surround yourself with people who have different skills and abilities than you do, and fortunately, I’ve been able to do that through the team we’ve built and our clients. That is also the reason my agency has a Clinical Advisory Board.

Related: How To Create An Effective Advisory Board

Why we have a Clinical Advisory Board

Our Clinical Advisory Board, or “the CAB,” as I like to call it, is made up of some of the most successful dental professionals in the industry who have agreed to share their experiences and expertise with us as well as with other practices that are interested in taking their marketing to the next level. The CAB allows me and my team to dig a lot deeper than some other marketing agencies are able to and really address the issues that dental practices in particular are facing in the marketplace.

While I have over two decades of experience in marketing for the dental industry, neither my partner Shawn nor I am a dentist in today’s economy. When I was working in the corporate world, doing the marketing for a national dental laboratory, I noticed one lab was collaborating with a doctor as a resource. That partnership stuck with me, and when I started my own company, I wanted to recreate that same type of alliance, knowing that it could only be beneficial to me, my company and the dental practices I would be working with.

We started the Clinical Advisory Board at my agency because we wanted to relate to our clients, their experiences and their actual needs more fully, and we also wanted some oversight from real clinicians. We use the CAB as a sounding board and a resource to deepen our knowledge of the current state of the dental industry and what is happening in the various markets my company serves across the country.

Related: The Benefits of Bringing in an Advisory Board

How the Clinical Advisory Board benefits our business

To establish the CAB, we invited some of the most engaged and successful dentists we know to participate. It was important for me to have professionals in the field provide feedback on marketing. We wanted a group of dentists we could call on to answer clinical questions and to help us take our marketing beyond what is typically “expected.” I knew that having this group of clinical advisors to work with would distinguish our agency from other marketing agencies that rely solely on their general marketing experience and don’t delve deeper into industry specifics.

Having the CAB keeps us on the cutting edge of dental marketing. The dentists who participate give us information about what is happening right now and what trends they are seeing among their patients and within their individual markets. Not only is this valuable information from a business standpoint, as it allows us to be far more competitive than we would otherwise, but it is also valuable for the dental practices we work with. The information we get from CAB members helps us anticipate our clients’ needs and gives us more authority in our decision-making.

I’m not the kind of person who settles for what is acceptable. I always want to strive for more. When it comes to my company, my team, and the way we do marketing, I’m not afraid to ask for a clinical opinion. It’s the best way to perfect our craft and be more effective. Sharing the information I receive from our CAB members also keeps me accountable to my current and potential clients, because I cannot put something out there I don’t fully stand behind.

There is always something new to learn in marketing and in dentistry, which makes the CAB an extremely useful resource. Without it, we would definitely have less of a competitive edge. Establishing the Clinical Advisory Board for our agency is one of the best decisions my partner and I have made for our business.

Jackie Cullen

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October 6, 2022