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Tag: Operations & Logistics

  • Why You Should Be Hiring When Everyone Else Is Firing | Entrepreneur

    Why You Should Be Hiring When Everyone Else Is Firing | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Now, I know this might sound like a crazy idea. After all, why would anyone want to hire when the entire world is downsizing and laying off employees left and right? But hear me out.

    The truth is, layoffs are happening because these large companies have become bloated and inefficient.

    They have so many employees that they can’t even keep track of who’s doing what. And when times get tough, they start slashing jobs left and right without any regard for the talent that they’re losing.

    Related: A Downturn Can Actually Be a Good Time to Cultivate Talent. Here’s Why.

    Why is everyone firing?

    The economic impact of the multiple crises we’ve experienced over the past few years alone has led to companies experiencing a decline in revenue and profits, causing them to restructure their businesses to survive. This restructuring often results in layoffs and downsizing to cut costs and stay afloat.

    Some companies also had to shift to remote work arrangements, and the need to implement safety protocols has also contributed to the layoffs. Companies that were unable to adapt to the new normal had to make tough decisions, including downsizing and restructuring, to remain competitive.

    With the rise of automation and artificial intelligence, companies are looking to streamline their operations, which means reducing the number of employees. As a result, employees who have skills that can be easily automated are often the first to be let go.

    Some companies are also undergoing mergers and acquisitions, which can lead to redundancies and layoffs. When two companies merge, there is often an overlap in roles and responsibilities, which can result in the elimination of positions.

    But as an entrepreneur, you have the opportunity to do things differently. By building your business efficiently, you can pick up talent at a fraction of the cost and build your dream team in a way that these large companies could only dream of.

    What are the benefits of hiring during an economic downturn?

    First and foremost, hiring while others are firing allows you to access top talent that may not have been available in a more competitive job market.

    Many highly skilled workers who have been laid off may be looking for new opportunities and may be more willing to work for a smaller, growing company that can offer them more flexibility and growth potential.

    In addition, hiring during a period of widespread layoffs can give your business a competitive advantage. As larger companies downsize their operations and scale back on services, smaller businesses that are still growing can step in to fill the gaps in the market. This can help your business gain market share and increase your customer base.

    Another benefit of hiring during a period of layoffs is that you may be able to negotiate better terms with potential employees.

    To clarify, when discussing negotiating better terms with potential employees, it is not necessarily about undervaluing their talent. Rather, it is simply acknowledging the reality of the current economy and job market.

    With more people looking for work, you may be able to offer lower salaries or fewer benefits and still attract top talent. This can help you keep your labor costs under control and invest more in other areas of your business.

    Related: Companies Need To Be Better at Hiring, Not Firing. 7 Tips To Pick And Retain The Best Talent During Uncertain Economic Times.

    Building your dream team on a budget

    When hiring during tough times, it’s also still very important to be strategic.

    Instead of simply filling gaps in your existing staff, take the time to think about what positions you need to add to take your business to the next level. This is the perfect opportunity to build out your dream team, with a focus on hiring people who can help you grow and thrive.

    While it’s true that hiring during tough times can be an opportunity to pick up top talent at a fraction of the cost, it’s still important to be mindful of your budget. If it goes down to it, you can consider hiring on a commission-only basis or offering equity in your company as a way to attract top talent while keeping costs low.

    Building a great team is one of the most important things you can do for your business. And since this great team is built during hard times when work dedication is slowly fading, they will help you achieve your goals in ways you couldn’t have done alone.

    And when the economy bounces back, you’ll be in a position to reap the rewards of having a highly skilled and motivated team in place.

    Related: How to Be An Accountable Leader During an Age of Layoffs

    While it may seem counterintuitive to hire when everyone else is firing, doing so can be a smart move for entrepreneurs who want to make duplicates of themselves in the company.

    With the right strategy, you can pick up top talent at a fraction of the cost and build your business in a more efficient and effective way.

    So, don’t let the current economic climate scare you away from hiring — use it as an opportunity to build your dream team and take your business to new heights!

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    Roy Dekel

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  • 5 Ways Startups Can Leverage Tech Layoffs to Attract Top Talent | Entrepreneur

    5 Ways Startups Can Leverage Tech Layoffs to Attract Top Talent | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The initial wave of tech layoffs captured global headlines with a sense of shock and awe, and according to Nerdwallet, in 2022, more technology workers were laid off than in 2020 and 2021 combined. While big tech itself has laid off unprecedented numbers in a very short span and continues to navigate various economic headwinds, the broader tech industry continues its focus on innovation and strategic growth.

    These signals do not mean that the overall employment economy is bad nor are reflective of the broader talent market. According to Zip Recruiter, 37% of those laid off in the tech industry found a new job within one month, and 79% found a new job within three months, which underscores the many opportunities available. Additionally, quit rates remain the highest in over 20 years and unemployment stands at a steady 3.4%-3.7%, an incredibly low range. These tech employees are also looking into other industries – CNBC notes that many other sectors such as health care, education and government are experiencing a never-before-seen level of interest from top tech talent. Small and mid-cap tech companies are similarly experiencing newfound popularity.

    Related: Why Companies Must Leverage Outsourced Development Teams to Weather Economic Downturns and Layoffs

    Top employees who found themselves suddenly unemployed can still remain in the driver’s seat. The talent wars may be less drastic than a year ago, but they do still exist. This creates a tremendous opportunity for early-stage growth companies to reflect on recent events and look inwards at their culture to ensure they are best positioned to attract some of this talent. The ability of startups to hire and retain these resources could be a key determinant of future success. Yet, it’s not a done deal.

    Early-stage companies are unlike most other businesses in the market in that they have the flexibility to quickly pivot and innovate their culture. To attract and retain this newly available (and incredibly smart) talent looking for opportunities, startups must implement a set of key practices and procedures that will enable them to stand out from the pack.

    Here are five strategies they can consider to position themselves for lasting human capital success:

    1. Embrace hybrid and remote work environments

    Offer hybrid and remote work flexibility options. Not only will this provide a broader geographical base to hire from, but it will actually encourage diversity in the workplace. As Aki Cho points out in her article “The Reason Bosses are Freaked out by Remote Work,” hybrid and remote work environments will cater to a workforce that is more ethnically and gender diverse.

    2. Create a collaborative and flexible co-working space

    Early-stage companies need to break down the walls that siloed offices were once surrounded by. The office needs to become a place that employees want to visit versus have to visit. Startups can rethink the purpose of the office, designing with collaborative structures and making the décor inspirational and welcoming. In addition, there is an opportunity to extend open hours, allowing for early birds and night owls alike to have a place to operate during the time frame that they are naturally wired to perform best.

    Related: Your Tech Employees Are Your Most Potent Reputational Tool as Your Firm Recruits

    3. Offer liberal equity packages and clearly define vesting schedules

    Most employees at big tech companies own a very small piece of a very large pie. By joining a startup, they now have the opportunity to own a meaningful part of their company’s success. Offer generous equity packages, encouraging employees not only to join feeling like co-founders but also to find a longer-term commitment to success. Clearly articulate your company’s vesting schedule and communicate the value through frequent valuation exercises. Extend top-ups when goals are met and the company meets clearly defined and well-communicated metrics.

    4. Create and communicate vision, mission and values that stand for something different

    Early-stage companies have an opportunity to stand out from the big tech pack. Create a vision, mission and values set that represents clarity, aspiration and inclusivity. Develop a clear communications plan and incorporate it into employee hiring, onboarding and retention materials. Stories of laid-off employees attest to their feeling anonymous, overlooked and undervalued. A clear communications plan will serve as the first step to proving it will be different this time around.

    5. Be purposeful in hiring

    Many tech companies experienced massive growth during the pandemic. According to CNN Business, some grew by as much as 100%, just in the 2019 – 2022 time frame alone. As these same companies are now reducing their workforces in record numbers, those terminated are concluding that their hires were based on reactive growth, not properly thought through. Many feel as though they didn’t matter. Early-stage companies can tell a different story by clearly defining the roles they are hiring for, implementing a reasonable company-wide hiring plan and holding themselves accountable for longer-term retention of those they bring on board.

    As the tech layoff trend continues, next-generation leaders are realizing that this time around it’s more than transactional. Affected employees are reflecting on their experiences and reframing their definitions of a meaningful career. It can be argued that startups are best positioned to address this newfound north star; they are nimble, collaborative and able to present the most ownership-oriented reward structure. With intentional planning, focus and ongoing championship, early-stage leaders can leverage this unique hiring opportunity to build best-in-class teams that set the foundation for lasting success.

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    Kalon Gutierrez

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  • 6 Questions to Ask Yourself Before Selling Your Business | Entrepreneur

    6 Questions to Ask Yourself Before Selling Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Owning a business is a big decision and choosing to sell it can be just as significant.

    Selling your business comes with many considerations, including the value of it and any financial prospects, what a potential buyer is looking for, if you’re actually done with your business and what you’ll do after it’s sold. If you’re considering selling your business, ask yourself these six questions to assess your options and identify the next best step.

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

    1. Am I ready to sell?

    Start by outlining your reasons for selling. What’s driving your decision to sell? Maybe you’re burned out post-pandemic and you need to get a fresh perspective. Maybe you feel stuck, like a hamster on a wheel who can’t find its way out. In these cases, selling may not be the answer. Consider your goals for the sale and what a positive outcome would look like. It can be helpful to write down your thoughts or list the pros and cons.

    Once you answer these questions, seek an opinion from someone you trust. Selling your business is not just a financial consideration, but it’s also an emotional one. Take time to get to the bottom of what’s fueling your feelings and then get into how it’s done (if you still want to sell).

    2. What is the value of my company?

    As a business owner, you should have an excellent (and realistic) understanding of what your business can get in the open market. My experience with many business owners has been that they value their business at least 50% higher than the actual value. It’s essential to get a third party to evaluate your business.

    You can look into programs that provide a back-of-the-envelope calculation or you can go to a professional business valuator. A back-of-the-envelope estimate typically focuses on the return on investment (ROI), a quick, practical way of reaching a selling price. Although it is universally utilized, an ROI calculation overlooks factors such as time, capital appreciation, risk, potential and inflation, among other factors.

    Utilizing a professional business valuator will provide a more accurate number, which can result from different approaches and considerations (including assets, market comparison, income, etc.). The challenge with this route is finding the right valuator for your business and industry who will charge a fair appraisal price.

    Related: 6 Proven Ways to Sell Your Business for 10x or More

    3. Is knowing the value enough?

    Understanding the value of your business includes more than just how much you should sell it for. To prepare for business transfer ownership, you should organize your finances, including your tax filings, licenses, deeds and profit and loss statements.

    It would be best if you also took inventory of your tangible and intangible assets and any liabilities. Taking the time to outline your business plan and model will benefit you and potential buyers, so they understand the full context of the company and how it generates revenue.

    4. Who will I sell to?

    It’s likely that you will have many alternatives to choose from. For example, you can sell your company to your employees through an Employee Stock Ownership Plan (ESOP), which has many advantages but some hoops to jump through; or maybe you have family members that are capable and want to take on the responsibility of running the company. If you are looking outside your circle, consider an individual investor, private equity firm or strategic buyers.

    5. What professionals will I need?

    It takes a village to sell a company. There are many components and complexities to each deal. The team of professionals you’ll need will depend on the specifics of your business, such as the industry, size and nature. Here are some professional’s business owners will want to have on their exit planning team:

    • A Certified Public Accountant. Look for one experienced in dealmaking to help ensure the sale and transfer are done correctly. There are several tax-related aspects to selling a business and you want to help ensure you’re up on the latest regulations and opportunities for saving money.
    • A Certified Exit Planning Advisor (CEPA). They can help ensure you’re getting the maximum benefits when you sell, and they’ll consider your personal and financial objectives.
    • A Certified Financial Planner (CFP). They can help with the financial aspects of the deal, including what your financial future looks like.
    • A business attorney. They will create legal plans to carry out the sale and look to keep you out of trouble.
    • An estate attorney. There are very big advantages that you can take advantage of in your pre-liquidity planning.
    • A business valuation expert. They can give a more accurate idea of what your company is valued at. That’s if you don’t want a back of the envelope number.
    • M&A advisors. They will look for strategic or financial buyers of your business. They will generally help mid-market and above companies.
    • A business broker. They will contact potential buyers and can screen interested parties for financial ability or other qualifications. They generally help the lower middle market.
    • An insurance professional. They can review your insurance and make alignments based on your needs.

    Some professionals may assist in overlapping areas, but it’s best to use a team approach to help ensure you’ve got the necessary support. Working with the right people will help achieve a successful outcome and a seamless transition.

    Related: Know When and How to Sell Your Business

    6. What will I do after I sell?

    Preparing and understanding what you want to do post-sale is essential for your mental well-being, primarily since most small business owners I know (myself included) are defined by their business.

    They are only looking at their business, growing it and looking to sell the company for the best offer. I ask them what they will do with all the extra time they will have. I get surprising answers such as “I haven’t thought about that,” and “I guess I’ll spend time with my grandkids.” While it’s great to spend time with family, they have their lives and soon you will be looking for other things to do.

    Asking yourself these six questions will likely raise additional questions. Taking time to consider your answer to each question is an excellent opportunity to explore the next steps — whether that’s selling your business or not. Answering these questions honestly and engaging the right professionals at the right time will help ensure that you get the most value for your life’s work.

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    Mark Kravietz

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  • 6 Ways Spreadsheets Can Hinder or Ruin Your Business | Entrepreneur

    6 Ways Spreadsheets Can Hinder or Ruin Your Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Spreadsheets are one of the most versatile and widely used tools in the business world. They offer an easy way to organize and manipulate data, make calculations and create visual representations of information. However, when used for inappropriate tasks, spreadsheets quickly become a crutch that hinders progress and accuracy. While they undoubtedly have their place in basic budgeting, they are unwieldy and dangerous when used to define process or for complex decision-making. To put it simply, spreadsheets are a great tool for individual tasks, not for tackling jobs that require a large-scale systematic approach.

    Have you ever tinkered with the formulas in a company spreadsheet? We’re all guilty of it. Without a centralized guarded process to keep everything in order, data management turns into a waking nightmare. Not only does it waste time and fatigue your staff, but the absence of proper data management is also actively dangerous for businesses. Why? If your data is incorrect, partially missing or out of date, you’ll quickly fall out of touch with the marketplace and won’t be able to conduct effective decision-making for your brand.

    What would happen if your organization shut down its ERP or CRM and did everything on spreadsheets? The answer is obvious: It would be the equivalent of a zombie apocalypse.

    Related: Become a Data Management Pro by Becoming Proficient in Microsoft Excel

    Marketing departments are particularly susceptible to spreadsheet overload as their business is not controlled within the organization’s ERP or CRM. These teams handle massive amounts of data from multiple sources like endless GTM (Go-To-Market) cycles, operations, dealers, distribution and more. When spreadsheets fail, the marketing team becomes crippled by the immense task of sorting multiple years’ worth of messy and inaccurate data. The consequences of this failure are utterly disastrous and blatantly obvious when conducting reports.

    What are some of the harmful consequences of spreadsheet failures? Let’s discuss six of them below:

    1. Hinders decision-making

    In the GTM cycle, data plays a crucial role in enabling brands to make informed decisions and improve their processes. This data encompasses a wide range of information, such as sales, feedback, product insights, channels and more. Successful brands recognize the importance of using data to tighten and enhance their GTM cycle each time.

    A spreadsheet is not designed to define process or naturally capture data on this scale as it struggles to remain current and consistent due to human “tinkering.” Additionally, it only collects basic surface-level information, foregoing the detailed operational data needed to improve the next GTM process. Without a centralized system, brands risk falling behind their competitors due to sub-optimal decision-making that relies on guesswork rather than data-driven insights from past work.

    2. Blocks scalability

    Spreadsheets are not designed to handle the complexity of marketing data, such as customer interactions across multiple channels, demographic information, and campaign placement and performance. Forcing staff to haphazardly cross-reference thousands of numbers in multiple sheets in order to glean basic insights is simply unsustainable and uneconomical. Sounds obvious, right? But you’d be surprised by the number of companies that still attempt to operate this way.

    3. Threatens security

    Spreadsheets lack the necessary security features required to protect sensitive data, leaving businesses vulnerable to data breaches. To avoid this, businesses need to adopt a more sophisticated data management system that can handle large amounts of data, provide robust security features and allow for encryption with easy data analysis and reporting. Can the bulk of your marketing numbers be passed around on a thumb drive? If so, you have a huge issue.

    Related: Data Security: How To Protect Your Most Sensitive Asset

    4. Lacks efficiency

    Using spreadsheets to record marketing data is a colossal waste of time. Creating and updating spreadsheets is time-consuming, unstable and costly (as it must be done manually by humans who are flawed by nature). A more efficient approach to managing marketing data is to use a dedicated marketing automation platform that can handle the entire marketing process. This approach streamlines data collection and provides powerful analytical tools to help businesses optimize their marketing strategies. What would have taken a staff member days to complete can be done in a matter of seconds.

    5. Prone to errors

    The chance that human error will occur at some point is inevitable. Mistakes are easy to make, and even a bona fide spreadsheet wizard is bound to slip up sooner or later. A single typo or minor miscalculation can lead to recurring inaccuracies in your data. Trying to keep track of information in multiple spreadsheets can also lead to duplication and inconsistencies, making it difficult to get a clear picture of the business’s performance. Using an automated platform will eliminate these errors.

    6. Siloed system fatigue

    Employees often have to maintain multiple spreadsheets, each with its own set of data, formulas and formatting. This creates silos of information, where data is not shared effectively, leading to inefficient processes and duplication of effort. Moreover, employees may struggle to keep up with changes to the spreadsheets, leading to confusion and errors. Over time, this leads to system fatigue, where employees become frustrated with the complexity of managing data in spreadsheets and may resist using them altogether.

    By adopting a more integrated approach with a system that allows for easy collaboration across departments, businesses can streamline their processes, improve data accuracy and reduce the burden on employees.

    Related: Why Un-Silo-ing Your Data Will Boost Your Company’s Efficiency and Productivity

    So, what’s the alternative?

    Today, there is a wealth of technology available to organizations. If you’re still using spreadsheets for anything other than simple data entry for small tasks, you are consciously making the decision to slow the process and put your company’s operational fluidity at risk.

    Spreadsheets certainly have their place in the business world but should NEVER be used to drive process, collect substantial masses of data or for complex decision-making. Fortunately, platforms like Regulator automatically gather and amalgamate data from multiple sources and present it in an easy-to-use format. Adopting a system like this takes the burden off staff and allows them to focus on making data-driven decisions, rather than struggling with data management.

    It’s time to move beyond spreadsheets and embrace the future of data management.

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    Jamie Calon

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  • These 20 Elements Define the Future of Startups | Entrepreneur

    These 20 Elements Define the Future of Startups | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Greg Isenburg is the co-founder and CEO of Late Checkout, a product studio and agency that designs, creates and acquires community-first tech businesses. In a tweet, he laid out a list of 20 elements that will define the future of building startups. Here, we delve into each of these points to explore the new era of entrepreneurship taking shape.

    Looking for help getting your startup going? Book a 1-on-1 video call with Greg Isenburg now.

    20 Elements That Define the Future of Startups

    1. MVP Speed (1x per month): The speed at which minimum viable products (MVPs) are created will decrease dramatically. Startups will aim to launch a new MVP every month, fostering a culture of rapid experimentation and iteration.
    2. AI-Accelerated: Artificial intelligence will play a key role in startups, both in product development and decision-making processes. This will lead to more efficient and optimized businesses.
    3. Superniche is the new niche: Targeting ultra-specific market segments will become more prevalent as companies seek to differentiate themselves and build deep connections with their customers.
    4. Community 1st, software 2nd: Building a community will take precedence over developing software. This approach will create strong brand loyalty and foster organic growth.
    5. No-code first, some code second: No-code platforms will become the primary tool for building startups, with traditional coding taking a back seat. This will democratize the creation process and enable entrepreneurs to focus on innovation.
    6. 10x more automated: Automation will become a significant driver of efficiency in startups, allowing for leaner teams and smoother operations.
    7. Global teams, localized products: Startups will increasingly be built by global teams, yet their products will be tailored to local markets to better serve customer needs.
    8. 95% dominated by solopreneurs and microentrepreneurs (teams less than 12): The startup landscape will be dominated by solopreneurs and microentrepreneurs, leading to more diverse and agile businesses.
    9. Pop-up digital experiences: Apps and platforms that only work during specific times or events will become more common, creating a sense of urgency and exclusivity.
    10. The marketing holy trinity: Successful startups will need to achieve product/market fit, content/market fit, and community/market fit to truly gain traction.
    11. Half robot/half human teams: A mix of AI and human talent will form the backbone of startup teams, combining the best of both worlds for optimal results.
    12. Accelerated by “boring marketing”: Effective marketing strategies that may seem mundane or unexciting will play a crucial role in driving startup success.
    13. Multiple revenue streams: Diversifying revenue streams will become the norm, as startups look for various ways to generate income.
    14. Design matters: The importance of design will continue to grow, with high-quality aesthetics and user experiences being non-negotiable.
    15. Partnered with creators: Creators will play a significant role in distributing and promoting startups, leveraging their established audiences for greater reach.
    16. Feels like a game: Gamification elements will be integrated into startups, making them more engaging and fun for users.
    17. Purpose-driven moonshots: Startups will increasingly focus on making a positive societal impact, attracting both customers and investors who share the same values.
    18. Productized agencies for cash flow: Agencies will pivot to offering standardized products to generate consistent cash flow, like design agency Dispatch Design.
    19. Product studios become the norm: Product studios, which develop multiple products simultaneously, will become a popular business model in the startup world.
    20. 99% of MVPs won’t need VC: Venture capital will become less critical for the majority of MVPs, as alternative funding sources and bootstrapping gain traction.

    The future of building startups is set to be an exciting journey marked by rapid experimentation. As the landscape evolves, entrepreneurs will need to adapt to new trends and strategies to stay ahead of the curve. By embracing AI, no-code platforms, and purpose-driven missions, startups can position themselves for success in this new era of entrepreneurship.

    Related: 18 Inspiring Lessons From the GOATS of Entrepreneurship and Leadership

    For those interested in learning more about the future of startups and gaining valuable insights from Greg Isenberg himself, you can book a 1-on-1 video call with him through Intro. This is a unique opportunity to have a personalized conversation with a thought leader and founder to gather practical advice.

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    Brad Klune

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  • Top 5 Ways the AI Revolution Can Help your Ecommerce Business | Entrepreneur

    Top 5 Ways the AI Revolution Can Help your Ecommerce Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Open AI’s ChatGPT has created a buzz about the current “AI Revolution,” but it isn’t a revolution for everyone. This is a time of innovators slowly handing off AI applications to early adopters. The early majority is still waiting on the sidelines, waiting for that AI Revolution to reach their industry or market.

    It’s only begun to permeate ecommerce, where we see businesses using artificial intelligence and machine learning to streamline operations, personalize marketing and enhance the shopping experience.

    As those early adopters start integrating them into their systems, here is how you can apply them to your ecommerce business:

    1. ChatGPT and AI-Generated Content

    The most obvious application of AI is using tools like ChatGPT to generate strategic copy and content. ChatGPT is particularly astounding to us all because it responds in a way that we all understand, with no code or programming knowledge required. As a language model, its skill is navigating human language, pulling from vast libraries of information, giving you exactly what you asked.

    That means you don’t need to rely on human writers to dig through research to create search engine-optimized product descriptions. Businesses are already using ChatGPT to identify those keywords and use them to optimize their copywriting. Shopify even now offers AI generated descriptions based on keywords merchants input.

    Though these AI models are impressive, they aren’t infallible. They still make errors: hallucinations — or information gaps that have been creatively filled in by the AI to give a complete answer. These confabulations can manifest in lies or wrong information, citing sources that don’t exist.

    The data sources that AI pulls from are limited in scope and variety… and slightly controversial. Copyright claims are a concern when AI generates from other sources, and more companies, such as Reddit, want to make more money from the data they provide.

    But text is only half the battle. On Amazon, the title and image are priority number one. The first image of a product on a white background is essential. Then you need lifestyle shots, bullet point overlays and an example of product scale. You always miss a few images that you need during a photo shoot. Photoshoots are expensive, and AI could bridge that gap. Sort of.

    Image generation isn’t quite there yet. Levi’s, the denim company, recently had a campaign using AI from Lalaland.ai wearing their clothes. The models have a slightly “off” look to them, as most AI-generated images do, but it shows off the clothes without having to hire an actual model to put them on. This technology works well with clothes, but we have yet to see a tool that uses models interacting with more complicated 3-D objects.

    Related: The Dark Side of ChatGPT: Employees & Businesses Need to Prepare Now

    2. Chatbots and customer interactions

    More and more customers are interacting with chatbots and are enjoying the process. They’re available 24/7 and generally converse naturally, personalizing the experience. They also can upsell in the moment of interaction.

    Chatbots also speed up the customer support process. A survey of executives with companies using chatbots found that 90% had “measurable improvements in the speed of complaint resolution.” The less time people wait on the phone for a customer service agent, the happier they are.

    They do have limits, though. Chatbot company, Tidio, found that people prefer a human assistant when it comes to returning a product, troubleshooting and complaining about a service or product. Other companies offer chatbot integration for online businesses as it becomes more common to interact with these chatbots during an online customer journey. It’s possible to have one custom-built for your company, but also more expensive.

    3. Advertising targeting and personalization

    Catching potential customers in the consideration phase is getting easier, as AI-targeted ads intercept them during their shopping process. Online buyers will research for the product that best fits their needs, and as they hone in on their searches, an ad might pop up, giving them exactly what they need.

    Online furniture retailer Wayfair is an example of a company that uses AI to determine which customers are most likely to be influenced by the ads and, using their browsing histories, choose products they might actually buy.

    AI algorithms analyze vast amounts of data about customer behavior, demographics, purchase history and interests. More businesses are specifically using AI to distill this info for audience targeting and segmentation, avoiding bombarding consumers with irrelevant content. Higher engagement rates turn into more conversions.

    Another important aspect of creating targeted ads is through keyword harvesting — finding the best keyword match for your product. Automatic campaigns can be set to mine keywords, transfer keywords between campaigns and boost bids depending on peak and off-peak hours. It’s an optimized ongoing process that either you or an employee would otherwise have to do constantly.

    Marketing personalization gets even more advanced with AI-generated customer personas. Companies like Delve.ai use millions of data points from internal and external sources to create ideal customer personas, competitor personas, and social personas. Some AI tools use collected psychographic data and qualitative psychological factors to create more accurate personas than ones made with just demographic and behavior metrics.

    Related: 5 AI Marketing Tools Every Startup Should Know About

    4. Sentiment farming and fraud prevention

    Sentiment analysis is a newer tool to mine opinion data from reviews, surveys, web articles and social media. Language models are used to sift through the noise online to pull out what customers say about your products.

    You’re left with actionable insight into how consumers feel about your brand, your products and their customer journey. Opinions are measured by the adjectives used in conjunction with the product or service being reviewed. These adjectives are rated, and a score is revealed to rank the opinions. These opinions are sometimes skewed by paid reviewers making fake positive or negative reviews, which mislead customers. Sentiment analysis has been found to help prevent fraud by using language models to find spam reviews.

    Related: How AI and Machine Learning Are Improving Fraud Detection in Fintech

    5. Supply chain planning

    By analyzing customer behavior and demand data, AI-powered tools can help businesses optimize their inventory levels, reduce waste, and improve the efficiency of their supply chain.

    Forecasting customer demand and capacity constraints is necessary for supply chain management. AI tools can ensure that warehouse facilities have the correct flow of inventory in and out to protect against under- or overstocking. Amazon offers AI-powered inventory management through Intellify, building demand forecasts that allow your teams to act on inventory purchase recommendations.

    These AI supply chain solutions will not make the decisions or purchases for you, though. AI isn’t advanced enough yet to be trusted to make independent solutions. Complicated loop systems are being developed to reduce human interactions, giving AI like ChatGPT the ability to make iterative decisions based on the task given to them.

    The AI Revolution is upon us, but don’t expect an imminent Terminator apocalypse. The ecommerce tools offered by many AI services can help you streamline your business but won’t take you out of the equation yet.

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    Tyler Metcalf

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  • Meet #6 on Yelp’s Top 100 Places to Eat: Sunbliss Cafe | Entrepreneur

    Meet #6 on Yelp’s Top 100 Places to Eat: Sunbliss Cafe | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Around 15 miles from Disneyland, Sunbliss Café in Anaheim, California echoes the cheery spirit of the theme park. After garnering social media buzz with its bright blue lattes and Instagrammable interior, Sunbliss has become a popular destination for coffee, tea, and healthy eats like smoothie bowls and avocado toast. Recently, Sunbliss was awarded the #6 spot on Yelp’s Top 100 Places to Eat, a list of the best restaurants across the U.S., with the help of votes from Yelp users.

    Owner Tani Ahmed did not always see herself running her own restaurant, much less an award-winning one. While working on the corporate side of a large beverage company, she met various restaurateurs and franchise owners who inspired her to start her own café. Since Tani had no restaurant experience, the main way she learned to open a restaurant was doing research on YouTube.

    “I had contemplated it for a few years, and I feel like I have entrepreneurial blood. It’s in me, and it’s something special that you have to have,” Tani said. “It’s like jumping off a cliff and building a parachute on the way down.”

    When creating a menu for Sunbliss, Tani wanted to bring a unique spin to all of the drinks. Instead of a classic mocha or latte, customers can find untraditional flavors like the “Cloudy Coconut” cold brew topped with sweet blue foam. This variety is appreciated by customers like Yelp reviewer Alyssa Mae L.

    “I’m a hundred percent into trying new things,” Alyssa Mae said. “I really love when coffee shops don’t just have the generic latte, cappuccino, macchiato, so I find myself gravitating towards places that have unique flavors.”

    Sunbliss prides itself on offering the freshest products possible, such as sauces and syrups made in-house from locally sourced ingredients. However, a challenge to using these high-quality items is having to charge a heftier price to compensate for their cost.

    Tani said it comes down to good marketing to sell the product to customers who are skeptical of Sunbliss’s prices, especially compared to a typical coffee shop or café. For Sunbliss, this means using social media marketing as an opportunity to educate customers on the health benefits of its menu items.

    “We do educational-based marketing. What’s funny is that people don’t really see how important it is [to] spend more on your health,” Tani said. “They’ll hesitate to buy a juice for $9.50, but they won’t hesitate to buy a $20 drink like a cocktail. For $9.50, you’re adding good nutrients and good bacteria to your body.”

    While Alyssa Mae loved the drink she ordered at Sunbliss, the welcoming customer service made her experience memorable and inspired her to leave a 5-star review. Initially, Alyssa Mae was overwhelmed by Sunbliss’s extensive menu, but the staff helped by giving her suggestions of what to order.

    “They really gave me patience when navigating [the menu],” Alyssa Mae said. “It was early in the morning, and I know they were getting into the groove of a morning shift, so it was nice to receive that sort of patience and get some guiding points on what’s good.”

    To ensure customers like Alyssa Mae have a memorable experience at the café, Tani emphasizes the importance of building a strong culture among her staff, which comes across to customers. This starts at the hiring process, where Tani ensures team members have not only the necessary skills but also the same values as Sunbliss.

    To keep customers coming back, Tani established customer service guidelines all staff members need to follow, such as asking every customer what their name is. After being open for only a couple of years, she’s proud of the strong relationships her staff has built with customers.

    “We see the same people every single day. Our employees are the reason we have that following,” Tani said. “We’re all human. We experience bad days. Anytime we come in with some sad news or just that bad day hovering over us, it feels like when you start your shift, everything turns around because there’s always someone that you recognize or know that comes in and has that self-lifting energy that rubs off on you.”

    Other businesses can learn from Sunbliss’s journey to Yelp’s Top 100 Places to Eat, including the following tips:

    • Bring creativity to your products. Don’t shy from bringing a personal, unique touch to your business’s offerings, as Tani did with Sunbliss’s colorful coffee drinks.
    • Use social media as a powerful marketing tool. Outside of customer interactions, social media is a great way to connect with customers and educate them on your product offerings.
    • Foster a collaborative team. A strong team spirit will come across in customer interactions. Consider creating customer service guidelines based on your core values for staff to follow.
    • Make the customer experience memorable. Get to know customers on a personal level by asking them how their days are going and what their names are. Remembering your repeat customers can help turn them into regulars.

    Listen to the episode below to hear directly from Tani and Alyssa Mae, and subscribe to Behind the Review for more from new business owners and reviewers every Thursday.

    Available on: Spotify, Apple Podcasts, Google Podcasts, Stitcher, and Soundcloud.

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    Emily Washcovick

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  • The Entrepreneur’s Comprehensive Guide to Navigating Legal Changes | Entrepreneur

    The Entrepreneur’s Comprehensive Guide to Navigating Legal Changes | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In an ever-changing landscape of regulations, staying ahead of legal and regulatory changes is critical to safeguarding your business’s success. It can be daunting to navigate the legal complexities, so read along for essential advice to help you stay on top of legal and regulatory changes, avoid potential pitfalls and ensure your business stays on the path to success.

    Why keep track of changing laws?

    Entrepreneurs benefit greatly from keeping track of changing laws as it is critical for the success and sustainability of their businesses. Regulations and laws affect every aspect of business operations, from hiring and firing employees to product development and marketing.

    Staying informed about these changes is vital for businesses to avoid potential legal pitfalls and penalties for non-compliance. Failure to comply with new regulations could result in costly fines, damage to reputation, legal disputes and even a loss of business. Being aware of new laws and regulations enables businesses to effectively adapt and adjust their operations accordingly, which can help them to gain a competitive advantage and grow their businesses.

    Here is how entrepreneurs can navigate legal and regulatory changes:

    1. Stay informed

    Keeping up to date with regulatory changes is crucial in ensuring that you are operating your business well within the guidelines. Regularly reviewing government websites, consulting with legal experts, subscribing to industry newsletters and attending conferences and seminars relevant to your industry are some of the tried-and-true ways to stay on top of changing regulations.

    You can also consider joining a professional association or networking group for your industry to stay informed on regulatory changes. Monitoring the websites and social media sites of government agencies is one of the best ways to stay informed about the most current changes that may occur. Going directly to the source of changing information is more reliable than solely relying on the media and news outlets.

    Related: What Business and Government Should Do When Innovation Outpaces Regulation

    2. Monitor your business practices

    Consistently monitor your business practices to ensure your business is compliant with regulatory changes. Regular internal audits can help businesses identify areas of non-compliance and take corrective actions. Entrepreneurs can develop an audit checklist to review their operations regularly and ensure that their business practices and processes are current with current regulations. Documenting compliance with the regulations can also help you avoid costly errors. Maintain accurate records to track compliance with regulatory requirements and ensure that all relevant employees understand and follow the new regulations.

    3. Embrace technology solutions

    Leveraging technology solutions can help streamline regulatory compliance. Software solutions can help automate and track compliance requirements by providing the necessary insight to manage your compliance obligations. Some technology solutions can automatically monitor legal and regulatory updates and even provide insights into changes that could potentially impact your business. Tools like Visualping.io, Social Mention, Evernote, RSS Feed Reader and Feedly are each excellent examples of technology solutions that can help entrepreneurs streamline the monitoring process.

    Related: Never Underestimate How Easy It Is to Screw Up When Deploying New Technology

    4. Seek professional advice

    In the case that you are uncertain about compliance updates and how they will impact your business, consult with legal and regulatory experts. They will provide insights into the implications of the changes for your business and advise you on how to comply with the new regulations. Seeking professional advice from lawyers, accountants and regulatory experts can provide peace of mind and reduce overhead costs. By partnering with an experienced legal team, businesses of any size can access the legal expertise they need to ensure they are in compliance with regulations.

    Related: Know When to Trust Your Gut and When to Seek Outside Advice

    5. Stay compliant!

    Navigating legal and regulatory changes can be challenging, but it’s fundamental for entrepreneurs to ensure that their businesses are compliant. Remember, compliance is not optional – it’s essential to the success of your business.

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    Ken Wisnefski

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  • Leverage Buyer Personas to Boost Your Customer Lifetime Value | Entrepreneur

    Leverage Buyer Personas to Boost Your Customer Lifetime Value | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that the customer experience is foundational for converting more shoppers to drive revenue and creating brand loyalty to convert guests into lifelong regular customers. Ecommerce retailers around the world are (or should be) obsessed with creating a simple, frictionless and personalized customer experience — the kind of customer experience people tell their friends about.

    Roadblocks to positive customer experience

    The road to a differentiated customer experience can be rocky; however, retailers must find new ways to meet customers’ increasing expectations and desire for personalized interactions while repairing the trust that has been damaged due to recent supply chain disruptions. Throw inflation, the threat of recession and labor shortages into the mix and cracking the code becomes trickier.

    As many work to rebuild relationships and transition guests into known customers, ecommerce vendors must manage various customer-related challenges, from “checkout ghosters” to disgruntled customers dissatisfied with their home delivery performance. For example, did you know 70% of customers abandon their carts before completing a purchase?)

    On the last-mile delivery front, a recent study found that 67% of consumers experienced a home delivery problem in the three months surveyed, with 68% of those consumers taking some form of action against the retailer or delivery company. What brand can withstand that level of retribution?

    Related: 5 Ways to Provide a Positive Customer Experience in Ecommerce

    Home delivery — missed opportunity

    Don’t make the common mistake of underestimating the power of a positive customer delivery experience to differentiate your brand, drive sales, create lifelong customers — and contain delivery costs. On the flip side, be aware that poor delivery performance can compromise the customer experience and irrevocably damage your brand.

    Indeed, a 2022 study found that customers who had experienced delivery issues hadn’t ordered from the retailer again (23%), while 16% told family and friends to avoid the retailer — a figure that has the potential to cripple a brand, given the speed with which these experiences can be shared across social media and messaging platforms.

    Related: Buyer Personas: What They Are, Why They Matter and How to Best Build One

    Moving beyond buyer personas

    While every retailer worth their salt recognizes the value of creating buyer personas to inform marketing strategies, many are in the dark about delivery personas. But delivery personas are equally powerful, with the ability to nurture brand loyalty, add incremental revenue and reduce operational costs to increase top- and bottom-line performance.

    In plain terms, customer delivery personas incorporate a mix of delivery speed, accuracy, extra services and insight regarding delivery choices (e.g. most eco-friendly) to help retailers create a range of delivery experiences tailored to their customers’ individual preferences.

    Here are five delivery personas that ecommerce businesses should consider when shaping delivery strategies and helping personalize the customer experience to turn guests into lifelong customers:

    1. Price-conscious: For these customers, the cost is the be-all and end-all. These individuals are highly price-sensitive and will prioritize delivery fees above all else. They will opt for the slowest shipping method available if it means they can save some money. The time of delivery is also of little importance to them — they’re willing to wait days for their package (as long as it arrives within a reasonable timeframe).
    2. Parcel-centric mindset: These customers’ prefer a speedy, hassle-free delivery of their smaller items, such as apparel and accessories, that are typically delivered quickly without needing to be present for a specific delivery time. For example, they’re content with their package being left on their doorstep at any point during the day and are typically not concerned with a time-definite delivery. This specific persona also appreciates the convenience of receiving their package quickly without having to wait for a specific delivery time and are satisfied with the fast delivery cycle offered by most ecommerce companies.
    3. Convenience is key: These customers value precision over speed. They have a specific time window in which they need their items delivered and prioritize convenience over quick delivery. This persona often includes customers purchasing larger items, like appliances or furniture, who need their delivery coordinated with the installation date and other tradesperson availability. For them, a seamless delivery experience is crucial and can significantly impact their overall satisfaction with their purchase.
    4. Time is money: This group of consumers prioritizes their time above all else and are willing to pay a premium to have their high-value purchases or replacement items delivered ASAP. They want their delivery to fit around their busy schedules and are willing to pay for the convenience of having purchases delivered in a timely and efficient manner — and it doesn’t take too many of these types of customers to offset a significant amount of your overall delivery costs.
    5. Eco-friendly focus: With a strong desire to reduce their carbon footprint, these consumers are on the lookout for companies that prioritize sustainability and environmentally-friendly delivery options. They aren’t just interested in the product but are also seeking a commitment to eco-friendly practices from the companies they shop with. These customers are willing to be flexible in terms of delivery time and speed, especially if it aligns with their environmental values. They may even be interested in grouping orders when you have deliveries in their area or may be keen for you to recommend the most sustainable delivery option.

    Given that 65% of consumers consider the environment when placing an order — and some customers, especially Gen Z and millennials, are willing to pay more for eco-friendly delivery — the sustainability delivery persona represents an excellent opportunity to lower delivery costs by reducing the number of deliveries, increasing delivery density and allowing for better planning with longer lead times.

    Related: How to Increase Customer Lifetime Value And Boost Profits

    Using delivery personas to give customers what they want

    Offering delivery options at checkout gives customers the choice to select which option best suits their needs for any given purchase— which can translate to a welcome revenue bump. Case in point: A 2021 study suggests that 71% of consumers expect companies to provide personalized interactions — and 75% get frustrated when this doesn’t happen.

    Personalizing delivery options using delivery personas opens up new opportunities to delight your customers. While low cost and speed are obvious choices, delivery preferences differ depending on what type of product is purchased (e.g. groceries vs. appliances). Offering value-added services like contact-free delivery and sustainable options, or the ability to book a specific date or delivery window, are extremely valuable delivery persona preferences that foster customer loyalty and sustained growth.

    Not every persona is relevant for every buyer and there isn’t one that takes first place — rather, a combination of them will create an extraordinary customer experience that takes into consideration how fast a delivery can be made, its accuracy and its cost. Don’t miss the opportunity to leverage customer delivery personas to protect margins, boost customer retention and increase customer lifetime value.

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    Johannes Panzer

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  • Khloé Kardashian and Emma Grede Drove $200 Million In Annual Sales With Size-Inclusive Fashion Brand, Good American, by Connecting Deeply With Their Clientele | Entrepreneur

    Khloé Kardashian and Emma Grede Drove $200 Million In Annual Sales With Size-Inclusive Fashion Brand, Good American, by Connecting Deeply With Their Clientele | Entrepreneur

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    Khloé Kardashian: Makeup, Ash K Holm; Hair, Irinel De León; Stylist, Dani Michelle: Seamstress, Mia Paranto; Manicurist, Zola Ganzorigt: Pedicurist, Millie Machado. Emma Grede: Makeup, Christina Cassell; Hair, Vernon François; Stylist, Simon Robins.

    Image Credit: Greg Swales


    The model wears a faded denim jumpsuit that hugs her curves like slalom skis. She’s tugging at the zipper that goes up the front. And the photo of her appears on the Instagram page for fashion brand Good American, where it garnered more than 3,000 likes and comments along the lines of “OMG,” “NEED,” and “OBSESSED.”

    But amidst the emoji flames and heart-eyed smiley faces, a user who goes by the handle @jazziolebabe writes: “Prices r too high.” That’s sure to have a familiar ring to anyone with a company that sells things. “Customer obsession” is hot lingo these days, especially in retail. Everyone is scrambling to know what their shoppers want and need — and comments on social media are an obvious destination, because even negative feedback can be incredibly valuable. But finding useful insights often means dredging through the sewer of knives-out viciousness and abusive one-upmanship. And what do you do with something like “Prices r too high”? OK, sure — but last time you checked, you were in business to make a profit.

    Related: How to Accelerate Your Success as a Female Founder

    Making use of social media comments and other customer feedback is always tricky, whether you’re an everyday entrepreneur or someone like Khloé Kardashian, who has more than 300 million followers on Instagram alone. She also happens to be the cofounder of Good American along with Emma Grede, a fashion-industry veteran who’s becoming increasingly famous herself for her Shark Tank “guest shark” appearances. “You have to get a good sense of when people are just talking to talk,” Kardashian says, “and when to go, ‘You know what? I’ve read this enough, and where there’s smoke, there’s fire. Let’s pay attention to this.’”

    More than anything else, learning to pay attention is what’s helped Grede and Kardashian build their size-inclusive brand Good American into a serious force in fashion, employing over 100 people and doing more than $200 million in sales last year.

    A few years ago, when they saw a number of comments piling up about prices, they took note. While they’d always meant for their clothes to be accessible, Good American is not a low-end brand; jeans go for around $99 to $199. That’s because the production costs to make well-fitting apparel from sizes 00 to 32 Plus are hefty. Lowering the price by decreasing quality was not an option. So they focused hard on their customers, both on social media and off, and tried to look at shopping through their eyes, asking: What are we spending so much money on?

    That’s when they saw the problem: A woman’s weight fluctuates. “It’s true regardless of where they are on the size scale,” says Grede. “I mean, I’ll be up or down six pounds depending on the time of the month — “

    “Depending on the day,” Kardashian quips.

    The point, says Grede, is that “these women have two or three different sets of jeans in that closet.”

    What if they could solve this? The question led to an idea: They’d innovate a fabric that stretches four sizes, as magically as the fictional jeans in the 2005 movie Sisterhood of the Traveling Pants. Instead of lowering their cost, they’d increase their product’s value — saving their customers from having to buy multiple sizes. It was frustratingly slow and expensive to pull off, but in the end, definitely worth it: Their “Always Fits” jeans, launched in 2020, have become one of Good American’s best-selling denim products.

    Related: Supermodel Karlie Kloss’s Lesson to Young Women: Never Be Afraid to Ask Questions!

    For Grede, it was proof of a process that now underlies the brand’s success: You listen, identify pain points, and then invest in creating features that aren’t being duplicated elsewhere. “It puts a moat around our company, right?” she says.

    It’s a moat built on voices.


    You probably know who Khloé Kardashian is — but just in case you missed all 20 seasons of Keeping Up With the Kardashians, the various spinoffs, and the current show, The Kardashians, then here’s the quick of it: Khloé is the youngest of the three original Kardashian sisters. She is “the funny one,” down-to-earth and good-natured, and always trying to make peace.

    Grede, on the other hand, did not come from celebrity royalty. She grew up in East London, a scrappy Black girl raised by a single mom, in a family of women who embraced their curves. She was barely 26 when, in 2008, she started a brand marketing company called ITB Worldwide that was eventually acquired by Rogers & Cowan (she won’t say for how much). By then, she’d already embarked on her next act.

    The idea for a size-inclusive apparel line came to her when she realized she was part of a problem. “I was working for the biggest fashion brands in the world, casting these seemingly diverse campaigns, and I thought, Wouldn’t it be amazing if they actually made clothes to fit some of these girls?” she says. “We talk about women having equal opportunity, and yet we let the fashion industry dictate that if we’re over a certain size, we aren’t important enough to service. It felt archaic to me. I just thought there was a huge opportunity.”

    Related: 8 Qualities to Drive Your Success as a Female Entrepreneur

    In 2015, she shared these thoughts with Kris Jenner, the Kardashian family matriarch, whom Grede had met through her fashion work. The following week, Grede was on a plane to Los Angeles to pitch the idea to Khloé. The meeting was in a conference room in Culver City, California, and all she had was a PowerPoint she’d worked up on the flight — essentially a manifesto of values, some images pulled off the web, and a bad placeholder name. Kardashian was wary.

    “When I was younger, I took every opportunity to hawk products or do this and that — I didn’t even know what I was doing half the time,” Kardashian says. By 2015, however, she was much better equipped to evaluate a good business deal, and she was only interested if she deeply cared about the project. She took the meeting with Grede, but wasn’t expecting much.

    In the room, though, Kardashian was impressed by Grede. She also immediately understood the presentation: The customer was her.

    Growing up, before all the fame and social media, Kardashian was a cheerful, confident, athletic kid. She liked being physically bigger than Kim and Kourtney — until she became an object of the gossipy press. “I never knew I was, I guess, chubby or fat until the weeklies and tabloids started telling me I was,” she says, her voice hovering for a split second, as if careful to sidestep that old cavity of insecurity. But even in her younger days, she hated shopping. In the ’90s and early 2000s, there was no e-commerce, and in stores, larger clothes were ghettoized. “My sisters loved to go to little boutiques or chichi department stores. I was always being ushered to some underground basement, always being thrown a mumu or just being told, ‘No, you can’t shop here.’ And it made me feel so much less than.” Nothing was worse than trying to buy jeans, especially trendy ones like Frankie B. “No disrespect to Frankie Bs — but I have a butt and it’s not getting in Frankie Bs!”

    Despite all that, Kardashian still felt sexy and attractive. “More power to me,” she jokes. But she knew other women did not feel the same. In Grede’s presentation, she saw a brand that could channel and spread that confidence around.

    “The only thing I didn’t enjoy,” says Kardashian, “was the placeholder name. I don’t even remember what it was.”

    “I do,” Emma mutters.

    Related: 7 Practical Ways to Celebrate and Support Women Entrepreneurs

    At this point, we’re all lounging couchside in a nook of a cavernous photo studio in Calabasas, the Los Angeles suburb of gated communities where Kardashian lives. Having ditched her stilettos and tight jeans, Kardashian is now dressed as if for a kid sleepover, in a fuzzy onesie. She nestles into the cushions and floods the space with a warm “we got this, girlfriend” appeal. Next to her, Grede is clad in Good American jeans and a work shirt. She has an easy confidence around her famous cofounder, and bristles with barely contained enthusiasm. Come on, I prod. Tell us the placeholder name.

    Grede busts out laughing: “Absolutely not.”

    Even without a name, from that first meeting, the two women saw what their advantage was. “The people making the decisions in fashion,” says Grede, “were largely white men and not connected to the customer.” She and Kardashian knew the customer intimately. And they realized that if they could get inside her head even more, they could make a lot of clothes for her.

    So that became their game plan: Focus on the connection, consistently improve it, and learn to watch their followers as intensely as their followers have always scrutinized Kardashian.

    Image Credit: Greg Swales


    Good American launched on October 18, 2016. It was a nerve-wracking day. Kardashian may have many advantages over the average entrepreneur — in reach, in resources — but to her, this also meant the bar for success was extraordinarily high. Anything short of a smash hit could be portrayed as a humiliation. And this was the first time she wasn’t just endorsing a product or partnering with a sibling; it was a genuinely new business. Good American was producing jeans in sizes 00 to 24 — designed to look cute and sexy on women of all shapes, which was something of a groundbreaking proposition at the time.

    Right as they were about to launch, Grede told Kardashian that they should aim for $1 million in sales — that day.

    “The number just came from foolery,” Grede says now. “I never thought we’d do it.” But Kardashian took it seriously. “In my head, I was like, “Let’s do a million? Sure, Emma, that’d be amazing,” she recalls. “But it’s a lot of fucking money! And then to have it be filmed? I can’t go down like this.”

    Because, of course, it was being filmed: The tape was rolling for Keeping Up with the Kardashians. Kardashian leaned into a full-fledged freak-out. “I’ve always been known as the fattest sister,” she told the camera. “And now that I’m over it, I don’t want to be known as the failing sister.”

    Related: Jennifer Lopez Is Done With ‘Happy to Be Here.’ She Thinks Latina Entrepreneurs Are Undervalued, So She’s Working to Give Them $14 Billion in Loans.

    Before that day, she and Grede had given retailers an ultimatum: They’d work only with stores that agreed to carry their full size range and display it all in one place — no separate floors for “petites” or “plus-size” (a term they avoided because of its negative connotations). In 2016, this was still not how stores tended to organize their clothes, but Nordstrom agreed and became their launch partner. “It meant trusting their vision,” says Pete Nordstrom, the company’s president and chief brand officer, explaining, “The brand had widespread appeal, as it was the first denim line to offer expanded sizes at a great value.”

    Getting to launch was harder than they thought. Maybe Good American had product-market fit, but the actual fit of jeans on all these bodies was elusive. At the top of the size range, body shapes vary widely, so you can’t just enlarge smaller sizes. You’ve got to create different patterns, innovative fabric, and altered manufacturing processes. Factories just threw the specs back at Kardashian and Grede and said they didn’t make sense. Hiring was a pain, because there were so few fashion people who had worked with larger apparel. And then they needed models. “Back then, there was Ashley Graham…and Ashley Graham…and Ashley Graham,” says Grede of the trailblazing curvy supermodel. That left real women. So, how would they find them?

    “We posted for our first open casting call,” Kardashian says. She did it on Instagram.

    We posted?” Grede cuts in. “Khloé, you posted. I had, like, 27 followers.”

    Kardashian ignores her. “We didn’t even have the name yet. We were, like, hoping 10 girls come.”

    They nervously waited on the appointed day at Milk Studios. Some 5,000 women showed up — a lesson about what their customer connection could do. “I knew Khloé had an enormous fan base, but I didn’t get that it was a two-way street,” says Grede. “I was like, That’s gonna be super useful for us.”

    When they debuted online and at select Nordstrom stores, Good American did indeed hit $1 million in sales on day one. And immediately, the founders faced a major decision. “Another retailer, who should remain nameless because they are now our client,” says Grede, “put in an astronomical order for sizes 0 through 8.”

    In scale, this was the kind of put-you-on-the-map order any young brand would dream of — but again, their sizing went up to 24. If that retailer only sold sizes 0 to 8, it would chip away at what made Good American special. It would also kick their core customer back down to the basement. “And then what does that make us? Just like everyone else?” asks Kardashian. “We were like, ‘You either take the full size range or you don’t. We’re not gonna sell our souls any more than we already have.’”

    She smiles. Still, it was a hard decision. “Saying no to that level of sales from that type of retailer?” says Grede. “That was very difficult.”


    Once Good American was out there, it was time to refine the brand. Buoyed by the responsiveness to the open casting call — which Good American has made a regular part of its marketing strategy — Grede and Kardashian started holding targeted focus groups on social media, asking women how the clothes could be better, what else they wanted, what their needs were. “But even with focus groups,” says Kardashian, “it gets murky, because everyone has an opinion.”

    So they started looking closely at the returns. Early on, they noticed that a lot of size 14s and size 16s came back. “When you see that,” Kardashian says, “you do have to go, OK, why? Let’s look again at these comments.” What they learned is that customers were falling between the cracks of the even-numbered conventional sizes. So in 2018, they invented a size 15. “To this day, it’s our third or fourth best-selling size month-to-month,” Grede says.

    Then they discovered another problem with customer feedback: Sometimes what people say they want is different from what they’ll actually buy. And sometimes the thing they’re asking for just doesn’t make sense for the business. Grede and Kardashian haven’t always gotten it right. Like when everyone was going crazy for rigid jeans, “we made them — of course we did,” Grede says dryly. It didn’t take long for them to realize that rigid jeans are not the most natural fit for curvy ladies. “We were quick to be like, ‘OK, we fucked up, and we gotta figure this one out,’” says Kardashian, putting an optimistic spin on it. “But it was also a great learning experience, because you wanna be with the trends, but maybe it’s okay to do ‘rigid’ with a smidge of stretch. Like, our girl needs that.”

    Related: A Look Back at Women’s Entrepreneurship Over the Last 35 Years — and How We Can Change the Future for Women Business Owners

    Eventually, Grede and Kardashian built a data and analytics team to formalize the feedback process. But they continued observing their audience on their social channels, like detectives searching for clues. And about four years ago, they noticed something curious. By then, Good American had expanded into bodysuits, and customers were posting photos of themselves on social media swimming in them. Which was great, except…

    “We were like, ‘The bodysuits are not made to get wet!’” says Kardashian.

    “There’s an opening in the crotch,” explains Grede.

    “Right,” Kardashian seconds. “It could snap open.”

    Should they develop a swimwear category? they wondered. Their customers clearly wanted it. And selling swimsuits in the smaller sizes seemed like a no-brainer. But what about the higher sizes? Would really curvy women buy teeny bikinis and monokinis? The cofounders looked more carefully at the bodysuit category and noticed that in the sexier cuts, the larger sizes were actually selling better than the smaller ones. “So the wheels were turning, and we could get a little bit of a foreshadowing based on what other things were selling,” says Kardashian.

    They decided to risk it, and the first line was ready in June 2020, just as beaches had emptied for COVID and Good American’s retailers were shutting stores and sending back orders. It was a hard time, but they launched the suits anyway, and swimwear grew into their second biggest category.

    The next decision involved something their stylists picked up on: The models at the open-casted campaign shoots didn’t have attractive shoes or boots that fit around their calves. Grede saw an opportunity — they could get into footwear. But Kardashian worried that, unlike the swimsuits, this would be expensive, and the final product would be too high-priced.

    “I’m not gonna lie, we were both scared,” Grede says.

    “You were way more on board than I was,” Kardashian says.

    “Well,” Grede concedes, “I do have that kind of mindset that, you know, we’ve done a lot of difficult things at Good American. Like, come on, we do it.” Grede’s energy can be persuasive. Six months after the swimwear, they launched their shoes — now their third biggest category.

    In 2021, they stopped to take a breath. Grede had become a founding partner of Kim Kardashian’s shapewear label SKIMS (which has a reported valuation of $3.2 billion) and was launching the plant-powered cleaning brand Safely with Kris, while starting to appear on Shark Tank. Kardashian was busy with her show and, like Grede, now a mother. Until then, Good American had been focused on growth. But customers everywhere were increasingly concerned about climate change and social equality — as were Grede and Kardashian. So they decided to become a certified B Corporation, an arduous process verifying that Good American adheres to high standards of social and environmental responsibility. It also means being accountable for balancing profit with purpose.

    “Good American isn’t doing this just because we wanted to have a buzzworthy moment. This is something that we genuinely believe in,” says Kardashian. “I never want my daughter — or anybody — to go through that experience that I went through. I want them to feel seen and represented.”

    Image Credit: Greg Swales


    Even with the B Corp, from 2021 to 2022, Good American’s sales increased by 30%. Today the brand offers sizes up to 32 Plus and has wholesale partnerships with Saks Fifth Avenue, Revolve, Bloomingdale’s, and Net-a-Porter. Last year it pulled off a collaboration with the multinational fast-fashion chain Zara — a milestone for both. As for Pete Nordstrom, he says pioneering with Good American has not only been a win, but has also influenced the department store chain. “The positive customer response to Good American has inspired us to expand our approach to size inclusivity,” he says.

    But Good American’s success — and a broader body positivity movement — has also created competition. Nordstrom’s team has asked more of their brand partners to produce extended sizes, for example. And in the past seven years, the U.S. plus-size fashion market has grown from around $23.7 billion to an expected $30 billion in 2023, according to a recent analysis by Future Market Insights (FMI). Small size-inclusive brands like Big Bud Press, Henning, and Universal Standard are grabbing attention, while large companies from H&M to Nike have extended their lines to include clothes for larger bodies. “One of the fastest-growing markets in the apparel business is plus-size fashion,” says Sneha Varghese, lead analyst for consumer goods at FMI. “And there is still a lot of space for expansion.”

    Related: Lewis Howes Has Built An Eight-Figure Personal Brand. He Did It By Constantly Reinventing Himself.

    The fact that Good American sells casual clothes at a midrange price point puts it in the sweet spot, according to FMI’s analysis. It’s also got history on its side. “I believe any brand that is size-inclusive from the start has a huge advantage over straight-size brands — the grand majority of which have flat-out ignored extended sizes for years,” says Melissa Moylan, vice president of womenswear at Fashion Snoops, a global trend forecasting agency. “It’s not easy to simply extend straight-size patterns, and getting the fit wrong for a plus-size customer may mean they’re not coming back anytime soon.” She points to Bodequality, the inclusive effort that Old Navy rolled out with fanfare but ended up pulling back from stores last year. “That’s exactly when a brand like Good American holds its value; with not only a message of inclusivity and representation, but a proven track record.”

    Grede and Kardashian say they are excited by the competition. But rather than racing ahead in their stilettos (which, take it from a witness, they can) to scoop up new clothing categories, the cofounders are standing by their playbook — listening to where their customers are now, and perfecting the products they already have. It’s a good strategy, according to Moylan: “No brand is good at everything.” So it’s wise to double down on what makes yours special.

    As this magazine went to press, Kardashian and Grede were getting ready to open up a new channel for connecting with their customers — face to face. It will be Good American’s flagship store in Century City, California. “We’ve thought about this idea of inclusivity very much in a product-focused way,” says Grede, “and now we’re figuring out: What should the new shopping experience for our customers be? How do we make them feel good as soon as they come in?”

    They have their questions. Now, as always, they’re waiting for their customers’ answers.

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    Liz Brody

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  • How to Create and Implement an Effective Contingency Plan | Entrepreneur

    How to Create and Implement an Effective Contingency Plan | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In today’s ever-changing business environment, business owners, entrepreneurs and franchise owners need to be prepared for the unexpected. Contingency planning is a critical component of business growth, enabling organizations to minimize disruptions and recover quickly from unforeseen events.

    In this article, we will discuss the importance of contingency planning, the key elements of a comprehensive plan and how to implement a contingency plan effectively. By taking proactive steps to prepare for potential challenges, businesses can build resilience and ensure continued growth and success.

    Related: 4 Ways to Prepare Now so Your Business Survives the Unexpected Later

    Why contingency planning matters

    Disruptions can come in many forms, from natural disasters to cybersecurity breaches, equipment failures or even changes in the competitive landscape. Without proper planning, these events can have a devastating impact on a business’s operations, finances and reputation. Contingency planning helps businesses minimize the impact of disruptions, maintain operational continuity and recover more quickly from setbacks. This resilience is crucial for business growth, as it enables organizations to adapt to changing conditions and capitalize on new opportunities.

    Elements of a comprehensive contingency plan

    Developing an effective contingency plan involves several key steps:

    Step 1: Identify potential risks and vulnerabilities

    The first step in creating a contingency plan is to identify potential risks and vulnerabilities that could impact your business. This includes both internal and external factors, such as natural disasters, equipment or network failures, supply chain disruptions, cybersecurity breaches, changes in the landscape or the loss of key personnel. By identifying potential threats, businesses can better understand their exposure and develop targeted strategies to address these risks.

    Step 2: Develop response strategies

    Once potential risks have been identified, businesses should develop response strategies to mitigate the impact of these events. This may involve developing alternative suppliers, establishing backup systems or processes or implementing new security measures. Response strategies should be tailored to the specific risks faced by the business and should take into account factors such as the likelihood of the event occurring, the potential impact on operations and the resources required to implement the strategy.

    Step 3: Establish a communication plan

    In the event of a disruption, clear communication is essential to ensure that all stakeholders, including employees, customers and suppliers, are aware of the situation and know what steps are being taken to address the issue. A comprehensive communication plan should outline how the information will be shared, who will be responsible for providing updates and what channels will be used to communicate with different stakeholders.

    Step 4: Train employees and build awareness

    For a contingency plan to be effective, employees need to be aware of the potential risks facing the business and understand their roles and responsibilities in the event of a disruption. This may involve training employees in new processes or procedures, providing guidance on emergency response protocols or conducting regular drills to ensure that all team members are prepared to act quickly and effectively in the event of a crisis.

    Step 5: Review and update the plan regularly

    As the business environment continues to evolve, it is essential that contingency plans are regularly reviewed and updated to reflect changes in the company’s operations, industry dynamics or the broader economic landscape. This may involve conducting periodic risk assessments, updating response strategies or refining communication protocols to ensure that the plan remains relevant and effective.

    Related: 5 Reasons Why You Should Create an Emergency Response Program for Your Business

    Implementing a contingency plan

    With a comprehensive contingency plan in place, businesses can take steps to minimize the impact of disruptions and maintain operational continuity. Key steps in the implementation process include:

    Developing an action plan

    An action plan should outline the specific steps that will be taken to address each identified risk, including timelines, resources and responsibilities. This plan should be clear, concise and easily accessible to all team members, ensuring that everyone understands their role in the event of a disruption.

    Allocating resources

    Contingency planning may require the allocation of resources, such as budget, personnel or equipment, to implement response strategies effectively. Businesses should prioritize resources based on the likelihood and potential impact of each identified risk, ensuring that the most critical vulnerabilities are addressed first.

    Testing and refining the plan

    Once the plan has been developed, it is essential to test its effectiveness through simulation exercises, drills or other means. This will help identify any weaknesses or gaps in the plan and enable the business to refine its strategies accordingly. Regular testing also helps ensure that employees are familiar with the plan and prepared to act in the event of a disruption.

    Monitoring the environment and adapting

    Contingency planning is an ongoing process that requires businesses to monitor changes in their operating environment and adapt their strategies accordingly. This may involve updating the plan to address new risks, adjusting response strategies in light of changing circumstances, or reallocating resources as needed. By staying attuned to the evolving business landscape, organizations can remain agile and resilient in the face of uncertainty.

    Contingency planning is a critical component of business growth, enabling organizations to navigate the unexpected and maintain operational continuity in the face of disruptions. By identifying potential risks, developing targeted response strategies and implementing a comprehensive plan, businesses can build resilience and drive continued success. As the business environment continues to evolve, contingency planning will remain a vital tool for business owners, entrepreneurs and franchise owners seeking to capitalize on new opportunities and protect their organizations from unforeseen challenges.

    Related: How to Create a Disaster Plan for Your Business

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    Greg Davis

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  • Free On-Demand Webinar: How to Lead a Company Through Multiple Times of Uncertainty

    Free On-Demand Webinar: How to Lead a Company Through Multiple Times of Uncertainty

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    Previously a trader and an investment banker, Glenn Fogel joined Booking (then known as Priceline.com) in Feb. 2000 as a young manager. Two weeks later, the stock market peaked and the dot-com bubble burst. Soon after, the Sept. 11 attacks happened, hampering people’s desire to travel. And the industry was shattered again when the 2020 pandemic hit. How did the world’s leading provider of online travel lead through these uncertain times?

    Find out in the next episode of our Leadership Lessons series with the CEO & President of Booking Holdings (NASDAQ: BKNG) – parent company of Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable – chats with series host Jason Nazar about how he leads more than 20,000 employees across 300+ offices in 220 countries around the world and the greatest lessons learned in his 30+ year career. Topics include:

    Complete the registration form to watch now!

    About The Speakers

    Glenn Fogel is CEO & President of Booking Holdings (Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, OpenTable), a position he has held since January 2017, and CEO of Booking.com since June 2019. He previously served as Head of Worldwide Strategy and Planning for six years. He was also EVP, Corporate Development for over seven years, responsible for worldwide mergers, acquisitions, and strategic alliances. Prior to Glenn joining Booking Holdings in Feb. 2000, he was a trader at a global asset management firm and an investment banker specializing in the air transportation industry. He is a member of the New York State Bar (retired). Glenn is a graduate of Harvard Law School and earned a B.S. in Economics from the University of Pennsylvania’s Wharton School.

    Jason Nazar is a serial tech entrepreneur, advisor, and investor with two successful exits. He was most recently co-founder/CEO of workplace culture review platform Comparably (acquired by ZoomInfo), and previously co-founder/CEO of Docstoc (acquired by Intuit). Jason was named LA Times’ Top 5 CEOs of Midsize Companies (2020), LA Business Journal’s Most Admired CEOs (2016), and appointed inaugural Entrepreneur in Residence for the city of Los Angeles (2016-2018). He holds a B.A. from the University of California Santa Barbara and his JD and MBA from Pepperdine University. He currently teaches Entrepreneurship as an adjunct professor at UCLA.

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    Jason Nazar

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  • 3 Platforms To Elevate Your Virtual Tour Strategy | Entrepreneur

    3 Platforms To Elevate Your Virtual Tour Strategy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As the founder of one of the country’s fastest-growing 3D Virtual Tour companies, I’ve dedicated a lot of time to testing all of the leading virtual tour platforms available. There are hundreds of these 3D software on the market, though only a few can produce the quality content needed for my clients.

    There are many factors to consider when choosing a virtual tour software for your business, including the price, usability and quality. Sometimes, certain kinds of locations need special features only available on one platform. This is why, as one of the largest virtual tour companies in the US, we need to utilize all of these platforms.

    Today, I will go over my top 3 virtual tour platforms. The software I will list today is not only the best of the best but is the software we use for 99% of our tours.

    Matterport

    Odds are, if you are into virtual tours, you have seen a Matterport before. You have probably seen hundreds of Matterports already. This is because Matterport is the most popular Virtual Tour platform of all time and for good reasons.

    Matterports are instantly recognizable by the fully 3 Dimensional “Dollhouse” shown when you first load the tour. This feature is often absent from many other platforms; when it isn’t, Matterport still creates these the best. The way Matterport works is a full 3D scan is made in various locations of a property, which are then automatically stitched together by the software to create one large to-scale render with 99% accurate measurements.

    Matterports are useful for creating floor plans easily, which is useful in the real estate market. Real Estate agents use Matterports most often due to all of these features, the dollhouse, the floor plans and the realistic rendering. This saves them time and attracts more buyers because essentially anyone can tour the property for free as if they were there in person. This is efficient for agents and often leads to more calls, property tours and eventually a sale because the potential buyers already know exactly what the interior looks like before they ever contact the agent.

    If you are not a real estate agent, some of these premium features might not be necessary for the tour you need, especially with the high cost of these Matterport scans. The Matterport Pro 2 costs a couple thousand dollars alone, and this does not include the software or the web hosting.

    If you have a large virtual tour company, you can expect to pay as much as $1,400 a month to host only up to 500 tours at once. For this reason, we like to use other tours for other scenarios, which can be cheaper and benefit the client.

    Related: How Virtual Reality is Impacting Real Estate?

    Kuula

    One of the most groundbreaking virtual tour platforms you probably haven’t heard about is Kuula. Released in 2016, Kuula has worked its way up to be among the top platforms fairly quickly. The standout feature of Kuula is that virtual tours can be made of properties and locations that do not exist yet. This is especially useful for contractors or building planners to create a fully explorable environment for a building still under construction. These 3D models look very realistic and are commonly confused with real images.

    Along with this feature, Kuula can do everything a standard virtual tour platform can do. Kuula is known for its fast-loading and mobile-friendly tours. These tours are helpful for real estate and local businesses because they are optimized to run quickly on smartphones. They might not be as detailed as Matterports, but the price of Kuula makes up for this.

    For one, Kuula’s software works flawlessly with any 360 camera on the market, so there are no high-priced cameras to cause any roadblocks for a new virtual tour business. The software and hosting are also extremely affordable. Kuula offers its software for free, with very few features locked behind a paywall, as well as some of the most inexpensive hosting out of all platforms.

    Related: How Virtual Tours Can Elevate Your Marketing Strategy

    Cloud Pano

    My company works with all kinds of properties. Matterports are great for real estate listings and small businesses, and Kuula is essential for new construction projects; but when creating a tour for large areas, these platforms suffer. This is why, when we create a virtual tour for college campuses, resorts, or state parks, we use cloud pano.

    Cloud Pano works best with large buildings, facilities or outdoor areas. Technically, a Matterport is possible for large buildings, but to traverse the virtual environments, you will have to click through every pano area taken by the camera. Imagine a very long hallway. With Matterport, you will have to basically “click” your way down the hall, which can take a long time. If the building is a resort or a factory, it could be impossible to see everything the location offers in a reasonable amount of time.

    One drawback to CloudPano is that the tours need to be stitched together by hand, which, compared to Matterport, can take a lot of time. But the benefit to stitching yourself is you get to create the best tour path for the property and include or cut out specific areas. This allows my company to charge a bit more for our work because there is a lot more of a creative aspect to these tours, where expert experience provides a better result. CloudPanos are also significantly cheaper to host than Matterports, which is why it is my favorite tour platform for my business.

    Related: This Real Estate Hack Will Make Selling A Property Easier in 2023

    The future

    Virtual tours have only just started to take traction within the last few years. I believe most people still do not know about their existence unless they are business owners or in real estate. For this reason, I think the virtual tour industry will see massive growth over the next few years in terms of user engagement and tech innovations. For now, these three platforms are the best on the market for my company. However, I see this changing very soon as 3D software and 360 cameras continue to advance and the popularity of consumer VR headsets grows. I am excited to see where these platforms go in the next five years.

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    Sean Boyle

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  • How to Shift Your Company’s Culture to be More Human-Focused | Entrepreneur

    How to Shift Your Company’s Culture to be More Human-Focused | Entrepreneur

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    Through his personal and professional experiences, John Sergides understands what drives clients, and the direction they are moving in. He says he knows that surrounding himself with the right team is absolutely imperative and that it is essential to have connectivity to the client base.

    As the CEO of MUFG Investor Services, an industry leader in fund administration, asset servicing, banking and fund financing, he works closely with the firm’s parent company, Mitsubishi UFJ Financial Group, one the world’s largest banks with assets topping $3.3 trillion.

    As someone who has had major surgery a number of times, he has seen firsthand how a firm culture responds to a person’s personal challenges. He believes that running a company means dealing with people as human beings, and that how a firm deals with people through difficult times is what will define it.

    He sat down with Jessica Abo to discuss the challenges facing his industry, how his company is navigating them, and how organic growth, valuing your staff and taking risks will help you make quantum leaps in business.

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    Jessica Abo

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  • 5 Reasons Your Team Keeps Making Mistakes & What to Do | Entrepreneur

    5 Reasons Your Team Keeps Making Mistakes & What to Do | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Muhammad Ali, Tom Brady, Babe Ruth and Michael Jordan are some of the greatest professional athletes the world has ever known, but even these legends occasionally dropped the ball (as it were). It’s only natural, then, that your team members will occasionally do the same.

    Even the best employees will occasionally miss out on an opportunity to deliver, but, of course, it’s especially concerning for management when they keep dropping the ball and impact organizational growth in the process.

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    John Boitnott

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  • Boost Revenue Per Employee With This Effective Strategy | Entrepreneur

    Boost Revenue Per Employee With This Effective Strategy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In the contemporary business landscape, we can say in the last 20 years, the revenue per employee (RPE) has emerged as a salient financial metric, commanding the attention of Big Tech companies as a critical determinant of organizational success. RPE, which quantifies the average revenue generated by each employee, serves as a barometer for workforce efficiency and productivity. The impetus for Big Tech’s emphasis on RPE is multifaceted, encompassing operational efficiency, competitive advantage, cost optimization, talent attraction, retention, scalability, innovation and agility.

    In this article, I’m sharing the significance of RPE in Big Tech and delineating the potential of nearshore IT staff augmentation as a strategic lever for bolstering RPE and catalyzing growth.

    Related: What is Staff Augmentation? 3 Reasons It is Vital For Your Business

    RPE in Big Tech

    Operational efficiency: The quest for operational optimization is a perennial concern for Big Tech companies, and RPE provides a valuable lens through which to evaluate workforce utilization. By scrutinizing RPE, organizations can pinpoint opportunities for productivity enhancement and judiciously allocate resources to maximize returns.

    Competitive advantage: The Big Tech arena is characterized by intense rivalry, necessitating relentless innovation and differentiation. RPE is a comparative benchmark, enabling companies to gauge their performance vis-à-vis competitors and industry norms. A superior RPE ratio indicates an efficient and productive workforce, conferring a competitive edge.

    Cost optimization: Labor expenditures constitute a substantial outlay for Big Tech companies. Organizations can mitigate labor costs by amplifying RPE by generating higher revenue with the extant workforce, optimizing cost structure and bolstering profitability.

    Talent attraction and retention: A commitment to RPE can enhance Big Tech companies’ ability to attract and retain high-caliber talent. By manifesting a dedication to productivity and efficiency, organizations convey that they prize high-performing employees and cultivate a work environment conducive to innovation and growth — especially crucial when it comes to navigating the post-pandemic global market.

    Scalability: The rapid growth trajectories of Big Tech firms necessitates a workforce that can scale commensurately with burgeoning demands. By prioritizing RPE, organizations can monitor the ramifications of growth strategies on workforce productivity and implement adjustments to preserve or augment efficiency.

    Innovation and agility: The technology industry’s rapid pace of change demands innovation and agility. A robust RPE ratio signals a company’s capacity to innovate and swiftly adapt to evolving market conditions. By concentrating on RPE, Big Tech firms can ensure their workforce remains nimble and poised to capitalize on emergent opportunities and surmount challenges.

    In the past 20 years, I have seen organizations go through on-and-off cycles of RPE. It is a critical metric for Big Tech companies, underscoring the centrality of workforce efficiency, productivity and innovation in propelling growth and securing a competitive advantage.

    Related: Learn The Simple Equation That Tells You If Your Business Will Grow and Scale

    How nearshore IT staff augmentation can boost RPE

    Organizations can optimize operations, entice top-tier talent and achieve scalability and agility in a dynamic and competitive market by assiduous monitoring and enhancing RPE. Nearshore IT staff augmentation, as a strategic initiative, offers a viable pathway for augmenting RPE, facilitating sustained growth and fortifying Big Tech companies’ market position, especially in the post-pandemic era.

    In Latin America (LATAM), several countries have emerged as attractive destinations for nearshore IT staff augmentation, particularly for businesses based in North America. These countries offer unique advantages that can contribute to improved revenue per employee (RPE) and overall operational efficiency. Below are some of the LATAM countries that are well-suited for nearshore IT staff augmentation, along with the factors that make them unique:

    1. Mexico: Mexico’s proximity to the United States and its participation in trade agreements such as the United States-Mexico-Canada Agreement (USMCA) make it a prime location for nearshore IT staff augmentation. The country boasts a large pool of skilled IT professionals, competitive labor costs and a growing technology ecosystem. Mexico’s time zones are also closely aligned with the United States, facilitating real-time collaboration.
    2. Brazil: Brazil is the largest economy across LATAM and has a vibrant technology sector. The country produces almost as many STEM graduates yearly as the United States, providing a rich talent pool for IT staff augmentation. Brazil’s technology hubs, such as São Paulo and Florianópolis, are known for their innovation and entrepreneurial spirit.

    3. Colombia: Colombia has made significant strides in developing its technology and innovation sectors. The country’s capital, Bogotá, and cities like Medellín are emerging as technology hubs with many startups and tech companies. Colombia’s government has also implemented initiatives to promote digital transformation and attract foreign investment in the technology sector.

    4. Argentina: Argentina is known for its highly educated workforce and a strong emphasis on research and development. The country has a well-established software development industry and a reputation for producing high-quality IT professionals. Argentina’s technology sector benefits from a culture of innovation and a focus on advanced technical skills.

    5. Chile is recognized for its stable economy and business-friendly environment. The country has invested in technology infrastructure and education, resulting in a skilled IT workforce. Santiago, the capital, is a regional technology hub with a dynamic startup ecosystem. The government has also implemented policies to support entrepreneurship and technology development.

    6. Costa Rica: Costa Rica has a growing reputation as a nearshore IT destination, partly thanks to its political stability and high literacy rate. The country strongly emphasizes education, particularly in STEM fields, and offers a multilingual workforce. Additional advantages include Costa Rica’s strategic location and time zone compatibility with North America.

    Related: Why Entrepreneurs Are Looking Towards Latin America for Nearshoring Opportunities

    It is important to note that the suitability of a particular country for nearshore IT staff augmentation depends on various factors, including the specific needs and objectives of the company seeking to augment its workforce. Companies should conduct thorough due diligence and consider factors such as language proficiency, time zone alignment, intellectual property protection and cultural compatibility when selecting a nearshore IT staff augmentation partner. Please make sure they are transparent!

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    Lonnie McRorey

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  • 8 Ways to Keep Your Business Afloat in a Tough Economy | Entrepreneur

    8 Ways to Keep Your Business Afloat in a Tough Economy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As the economy continues to fluctuate, it’s important for entrepreneurs to have a plan in place for any potential downturns. To remain competitive, you can take several steps, including reviewing your finances, cutting operating costs, diversifying your products and offerings and focusing on customer retention.

    Utilizing automation technology and revamping your marketing approach are both essential to adapt to the ever-changing economic climate. Don’t wait until it’s too late to start preparing — take control of your financial future and create an action plan today. Having this action plan will allow you to build what I refer to as a “war chest” for your business. The “war chest” is critical since it will allow your company to survive for a minimum of six months during a rough time.

    Related: 5 Ways to Protect Your Business From a Recession

    1. Create an action plan

    Planning for an economic slowdown is crucial for preparing your business, so it’s time to break out that budgeting spreadsheet. Be aware of potential changes to revenue, expenses and cash flow so you are not caught off guard. By preparing a budget in advance, you can make adjustments to ensure your business stays afloat. Start planning for a rainy day now — don’t wait until it’s too late.

    2. Review your finances

    Getting a handle on your finances is the first step in preparing for an unpredictable economic climate. Do a deep dive into your assets, liabilities and outstanding debts or loans. You can then determine where you stand financially and how a downturn may affect you.

    Keeping a close eye on your sales and costs and uncovering opportunities to reduce expenses is crucial to staying ahead of any potential economic shifts. Make informed decisions about your finances during difficult economic times by tracking your monthly income and expenses, such as salaries, rent and insurance. One of the best things you can do is a comprehensive review of your P&L monthly to ensure you are not being wasteful in your business.

    3. Cut operating costs

    Cutting operating costs is an obvious but effective way to prepare for a softening economy. Take a hard look at your budget and trim unnecessary expenses. It’s important to consider all costs, including travel and office supplies. You may get better terms or lower prices by renegotiating existing vendor contracts.

    Walmart, for example, switched to LED lighting in their stores. Walmart reduced its lighting energy consumption by 50% by replacing traditional light bulbs with LED bulbs. This resulted in an annual cost savings of approximately $200 million. Furthermore, LED bulbs have a longer lifespan than conventional bulbs, so Walmart also saved money on maintenance. Many people overlook this when reviewing operational expenses.

    Related: How to Help a Business Thrive During an Economic Recession

    4. Revamp your marketing approach

    Don’t let tough economic times take a toll on your brand’s success. Instead, reassess your marketing strategies to stay ahead of the competition. Are you working within a tight budget? No problem! Optimize your spending by shifting your focus to marketing tactics to enhance customer loyalty and drive sales. Use technology to your advantage with social media platforms and digital marketing solutions to increase your brand’s visibility without breaking the bank. Keep your finger on the pulse of the latest trends in marketing to tap into what’s currently catching consumers’ attention.

    Want to make a lasting impact? Ditch the typical advertising route in favor of snappy, visually-engaging short videos on YouTube and Instagram. The sky’s the limit when it comes to creatively adapting to the economic climate and taking your marketing game to the next level. They key is getting creative in your marketing messages to stand apart from everyone else. I always tell business owners I work with that use the excuse, “It’s just too noisy.” Then, make more noise.

    5. Revolutionize your business with automation and AI technology

    The future of business is here, and it’s all about automation technology. Say goodbye to human error and welcome efficiency and cost-effectiveness with open arms. Companies are relying on AI more than ever before to help them reduce costs and optimize processes. With robotic process automation, predictive analytics and natural language processing tools like ChatGPT, businesses are experiencing revolutionary benefits.

    ChatGPT is transforming customer service and support by utilizing cutting-edge language models. Automation can be the superhero businesses have in their corner. Be very mindful of how you use some of these technologies as they are new, so test the technology and split-test them before doing any full integrations into your ecosystem. Just because it’s new and shiny doesn’t mean it is everlasting!

    6. Diversify your products and offerings

    In an economic downturn, diversifying your product or service offerings is a powerful strategy for breaking into new markets. Expanding your range can entice budget-conscious buyers who might have overlooked your business previously. Using the right approach, you can both maintain and attract customers.

    Related: How to Recession-Proof Your Business

    7. Focus on customer retention

    Hold onto your customers tightly. Your relationship with your existing customers is crucial, especially during turbulent times. Keep them coming back with exciting loyalty programs or tempting discounts. You can fix any problems quickly and identify areas for improvement if you listen carefully to their feedback. Remember, keeping a happy customer is easier than finding a new one in tough times.

    8. Have a backup plan

    To weather tough times, businesses must master the art of preparation. The unexpected can strike at any time, so it’s vital to prepare backup plans to ensure your business runs smoothly. Keep emergency funds and insurance policies in tow in case of a crisis. Review finances, pivot marketing strategies and explore new product lines to keep your company on solid ground during an economic slump. Take control of potential roadblocks and steer your business toward success.

    Being prepared for a softening economy can mean the difference between taking control of your financial future and becoming another victim. A solid action plan, regular reviews or focus on improvement will give you the edge over those who wait too long to take preventative measures. Prevention goes a long way, so get out there and stay ahead of the game!

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    Jason Miller

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  • How Creators Can Thrive as Advertisers Are Cutting Back | Entrepreneur

    How Creators Can Thrive as Advertisers Are Cutting Back | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’re a creator, you’ve probably heard about the importance of diversifying your revenue streams. Chances are, you may have already done this successfully and if not, you might be curious about where to start.

    Like any industry, the creator economy isn’t immune to the pressures of inflation. As declining brand sponsorship offers and ad revenue payouts squeeze revenues, creators increasingly seek additional ways to extract value from their businesses. But for many, the question then becomes how and when?

    Not only do I believe diversification is one of the major trends that will define the creator economy in 2023, but a recent survey we conducted also revealed that 70% of respondents were considering additional income streams because of this economy. And with good reason: Diversifying can help complement and cross-sell existing offerings, leading to greater engagement, retention and customer lifetime value.

    But while it can be tempting to dive right in, creators need to approach diversification strategically to ensure it yields increased revenue and career stability by complementing and strengthening existing content rather than becoming a distraction.

    I don’t just work with creators; I am one, which has given me a front-row view of diversification’s overlooked pitfalls and powerful potential. There are no easy answers to getting this right, but here are some rules of thumb for any creator hoping to diversify their offerings to remain competitive, meet evolving audience needs and survive in this economy.

    Related: Why Creators Can Weather a Recession Better Than Big Business

    Don’t diversify without a purpose

    Let’s get this out of the way. Yes, diversification can be a powerful strategy for business growth, but you don’t have to diversify just because everyone is talking about it. And you certainly don’t need to be on every platform, trying to tap into every possible revenue stream. Generally speaking, there are two main scenarios in which diversification might be a good option for your business: When things are working and when they’re not.

    Diversification can be an effective strategy for creators who are already successful and want to take their business to the next level. If you have a large audience, generate significant revenue, and have the bandwidth to take on more work, it’s a good time to consider expanding and reaching a wider customer base.

    By diversifying, you can tap into new revenue drivers and lead sources and engage with your audience innovatively. Twenty-five percent of full-time creators earn between $50,000 to $150,000 per year, according to a recent survey from ConvertKit. Most do this by combining several revenue sources, from online courses to paid newsletters, appearances, coaching, merchandise or other streams. Our research shows that full-time creators rely on an average of 2.7 income streams, and the number of creators relying on multiple streams has risen nearly 50% over the past five years.

    On the other hand, if your current strategy is losing steam and you’re finding it difficult to generate audience engagement and revenue, it may be time to look for content and revenue streams that click. Used this way, diversification is more of a slow pivot than a true expansion, but exploring new kinds of content, products and services may help you energize your community or find new audiences that are more receptive to your content, bringing long-term stability to your business. Simply put, if your content is not resonating with your audience or you find it difficult to generate revenue, it may be time to consider a new approach.

    Related: A Recession Creates Opportunity for Creatives

    When to wait

    Despite the great potential diversification offers, sometimes it’s better to wait and focus all your energies on what you’ve got. If you’re new to the creator economy, still seeing growth and achieving your milestones, it may be best to focus on your existing content and channels rather than adding extra distractions. Diversifying can easily become overwhelming, especially if you’re still on a learning curve.

    Even experienced creators should recognize that diversification will require additional focus and effort. I’ve seen plenty of cases where creators with Shiny Object Syndrome neglect successful and profitable business channels and lose at both. If your current approach works well, staying focused on growing existing channels and hiring a team to increase your capacity in those successful ventures may be better than splitting your attention.

    I’d always suggest you do a quick ROI check on if your efforts on this new opportunity are likely to create greater returns than just leaning into your existing business and doubling down on what’s working.

    It’s not a one-size-fits-all approach

    If diversification is your move, the next logical question for many creators will be: How? And the truth is, there is no golden ticket. The right moves for diversification depend heavily on your unique audience and business.

    One way to diversify is by expanding your topics using your existing channels. For example, if you have an online school for yoga instruction, your student community might also be interested in meditation and healthy eating. By expanding into related niches, you can diversify the topics within that niche to keep your audience engaged and attract new followers. This approach allows you to grow your brand while maintaining focus on the platforms that serve you best.

    Another approach is diversifying your revenue sources to complement and cross-sell successful content. A physical product can drive revenue, while a course and community can be an engagement engine that keeps people returning. The synergies create a virtuous cycle – hot topics of conversation in a community can be the basis for a new minicourse or ebook; courses can be gateways to paywalled communities where everyone has a common baseline of interests and skills.

    Creators can build robust and sustainable businesses by combining channels in unique ways. Take John Lee Dumas, host of the podcast Entrepreneur on Fire, who has combined his daily podcast, short courses, and even regular reports about his own entrepreneurial journey as part of his diversified offerings.

    Related: For Savvy Entrepreneurs, an Economic Downturn Creates Opportunity

    A well-executed diversification strategy can turn your community into an engagement engine that builds customer loyalty while yielding rich customer insights. The key is always to be strategic. When considering diversification, map out a workflow for your content production, syndicating it across channels and reassess the impact on your bandwidth before making additional changes.

    Diversification can be a gamechanger for creators looking to build thriving, sustainable businesses, but there’s no single way to go about it or one right answer that will meet every creator’s needs.

    Random expansion, or feeling the need to be everywhere all the time, is not a successful strategy — it’s a recipe for burnout. But by strategically identifying and tackling new content and revenue streams, creators can stay on top of the game.

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    Greg Smith

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  • How Mobile Apps Can Help You Establish and Maintain an Agile Workspace | Entrepreneur

    How Mobile Apps Can Help You Establish and Maintain an Agile Workspace | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Agile has been around for some time, and it’s proven its worth, which is why it’s here to stay. Agile adoption is no longer a luxurious approach that companies may consider; it has become an essential ingredient for success. With over 71% of companies adopting agile methodologies and an astounding success rate of 64%, it’s no longer a matter of trial and error.

    The method works once you’ve established it correctly, but the challenging part is always maintaining consistency and keeping up, and that’s what we’re going to talk about in this article — how having an internal communication mobile app can play an integral role in maintaining and flourishing your agile workspace. But before we delve into that, let’s define what “agile” means.

    Related: Why You Should Consider Creating an Internal Communication App for Your Employees

    What is meant by an agile workplace?

    An agile workplace is an environment that works according to agile methodologies. In an agile workspace, the main focus is on embracing flexibility, adaptability and being able to smoothly collaborate on certain tasks on a project. Embracing these concepts will give birth to a highly dynamic team that collaborates seamlessly, communicates effectively and works in a fast-paced work environment to achieve goals and complete projects efficiently. If we break down an agile workplace, we can summarize them in the following points:

    1. Communication: Jumpstarting your agile project

    Everything gets done correctly through proper communication. Agile is all about being able to talk about your progress openly and letting everyone know if you need help with something. If you have an internal communication mobile app with a messenger feature, you can easily create relevant groups where team members can talk about their progress and let everyone know if they need help.

    2. Collaboration: Piecing together the puzzle of project success

    A puzzle is not complete without all its pieces, and in a project, everyone is responsible for a piece. Collaboration means accurately and effectively putting these pieces of the puzzle together to create something that is meaningful and useful. It involves sharing knowledge and skills, and streamlining communication will result in an enhanced collaboration that will seamlessly complete the puzzle in a timely manner. Through an internal communication app, your employees will be able to share their progress through a channel feature, where each project can have a certain channel, and members of the project will be able to announce their progress periodically.

    3. Agile alertness: Enhancing adaptivity with mobile app notifications

    Adaptivity means being able to respond to change quickly and effectively, and we all know that 99% of the time, the answer to the question, “Didn’t you get the memo?” is “no.” On the other hand, the nagging but useful feature of an internal communication mobile app notification system does not disappoint. This will eliminate any lagging or delay in the project caused by awaiting an answer from a superior or a team member.

    4. Accelerating agile success via swift information flow

    An agile workplace is characterized by short iterative sprints of fast-paced exchanges and swift and effective passing around of information, and an internal communication mobile app relieves you from taking the scenic route by the simple act of sending and receiving a message via a direct chat feature, knowing what to do and doing it with no fuss and no delays.

    5. Empowering remote teams by bridging the gap

    Last but not least, the rise of remote work is a force to be reckoned with, and the need to take the necessary steps to accommodate such a change is no longer optional but an immediate necessity. Having an internal communication mobile app is the ideal solution for all your employees who are working remotely to ensure clear and concise communication so that teams can work together regardless of where they are.

    Related: Why Effective Internal Communication is Critical to an Organization’s Well-Being

    How can you create an internal communications app?

    Thanks to no-code technology, you can create a mobile app for your company in a very short amount of time — and it will not just be a web-based app; rather, it will be an actual native application that is compatible with Android and iOS devices.

    Developing an app from scratch will cost you massive amounts of money and take a considerable amount of time, as you would have to hire a team of developers or pay a company to build it for you, which is a huge hassle. By using app-building tools, you will be able to build an internal communication app for your company in a matter of minutes and utilize all the top features that will propel your company forward.

    Having an internal communication mobile app with features like messenger, channels and direct chat not only keeps employees engaged, it also acts as a cornerstone to successfully establish and maintain an agile workplace. Additionally, having an internal communication app helps streamline communications, enhances collaboration, promotes adaptivity, accelerates information flow and empowers remote teams, which will result in faster delivery of your business’s projects and higher customer engagement as well.

    Related: What Makes a Business Agile? And How Can You Achieve It?

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    Omar El Bahr

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  • How to Keep Pace and Grow Your Company During a Recession | Entrepreneur

    How to Keep Pace and Grow Your Company During a Recession | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Market cycles often present opportunities for leaders from all fields of work — whether it’s real estate, tech, finance, healthcare or a number of other industries — to scale and pivot their businesses, prioritize talent and retake market share. In times of a market downturn, entrepreneurs may need to adjust their approach to see their teams and clients to the other side. Surviving a recession is a challenge for businesses at any stage, but it is achievable.

    Throughout my career, I’ve navigated economic uncertainty while working in real estate and have weathered storms and come out more competitive than ever. Here are a few tips to help you keep pace and grow your business even during times of uncertainty:

    Related: 3 Ways to Adapt and Grow During a Recession

    Take calculated risks

    An important trend to consider as part of your business plan is understanding how your industry reacts during a down market and anticipating that. For example, with real estate starting to soften across the country, capitalization rates, or expected rate of return on an investment property, start to grow. Our current strategy is to gather as much real estate nationwide as possible — including in Georgia, Oklahoma, Texas and Utah — and take advantage of the softening market and recession, in which other investors are more hesitant and less into taking risks.

    But we believe we can safeguard our risks by being prudent and doing our research into these burgeoning markets. What areas of weakness can you take advantage of in your industry? Is decreased demand causing lower prices for parts? Does increased demand allow you to raise prices for your goods or services? Audit the landscape, and see where you can find those calculated risks.

    Pivot if needed

    I have been in the real estate business for more than two decades and witnessed the 2008 Great Recession. At the time, my previous firm was invested in industrial real estate, which quickly dropped in value as the market collapsed. Instead of closing up shop after selling at a loss, we decided we could stay in business by pivoting into senior housing, assisted living and memory-care facilities.

    We learned that these were more stable investments, so my team and I took a leap of faith and successfully changed course. Evolving as a business is critical to keep momentum; if you’re not growing, you’re dying. Thinking ahead, innovating and staying a step ahead of the game are important to keeping momentum during turbulent times.

    Related: 5 Ways to Sustain Company Growth During a Recession

    Lead with vision

    As a business owner, regardless of your industry, understanding how to lead during a time of chaos, such as a recession, is critical to the survival of your company. Although the path forward isn’t always crystal-clear, staying connected with your guiding principles can help you navigate any uncertainty you might face as a business owner.

    If you’re unsure of what those principles are, tune into your “inner voice,” and make sure that the decisions you make align with your values, as well as the values of your business. Make sure your team members are clear on your company’s mission statement and vision as well, to maximize alignment companywide.

    Grow your team

    Something to consider is continuing to grow and invest in your team so you’re ready for when the market cycle swings back up and business returns. Your people are the engine of your business. With continued layoffs across industries, there may be a growing pool of talent to choose from. During this cooldown period, as you’re innovating your business and expanding your company’s capabilities, make sure you have the right talent in place. I offer tips on how to attract the right team members in a previous Entrepreneur article.

    Keep in mind, fortifying your business from a talent standpoint doesn’t have to mean hiring. It can instead mean reminding current employees of your company’s values, as well as sharing with them your business model and vision for the future.

    Related: Don’t Let a Recession Ruin You. Here’s How Your Business Can Thrive During Hard Times

    Remember, market cycles are temporary

    A recession doesn’t necessarily have to be viewed as a bad thing; to me, it’s an opportunity for entrepreneurs to build and adjust, carrying themselves and their teams to the other side and to a better, future market cycle. All market cycles are temporary, so this, too, shall pass. Issues like softening real estate, higher interest rates, economic uncertainty and market volatility are cyclical.

    Regardless of which industry you’re in, you can learn and grow from something negative like a recession by growing your business, pivoting it as needed, investing in the right people and quite simply weathering the storm in hopes of a clearer, brighter future.

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    Edward Fernandez

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