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Tag: Return on Investment

  • Why Rest Is a Smart Return on Investment

    Picture a CEO bragging about not taking a day off in seven years, as if he’d earned a medal in the war on downtime. Then came the “mystery illness,” the endless fatigue that no amount of caffeine can fix, and a board of directors suggesting he step away for a while. When he finally took a week off—no laptop, no calls—he came back with two breakthroughs: one for his business and one for his life. He realized both were running him instead of the other way around. 

    The return on investment of rest 

    Modern business culture glorifies doing, doing, and more doing. Sleep less, crush more goals, and check off more boxes. Rest becomes the thing to do after success—if there’s time left.  

    Yet, research reveals the need to prioritize rest. Downtime fuels creativity, clarity, and emotional regulation. A Harvard study found that strategic rest increases long-term productivity. Meanwhile, chronic overwork can cut cognitive performance. And leaders who model rest? Their teams are more engaged and less likely to burn out, according to Gallup. Translation: Rest isn’t a luxury. It’s a smart leadership strategy. 

    The power of pausing  

    Taking to pause isn’t just about sleep or vacation. It’s a mindset—balancing being and doing. Arianna Huffington built an entire company, Thrive Global, on the idea that rest restores humanity to business. Even Einstein is often quoted as crediting his breakthroughs to long walks and moments of “idleness.” Rest doesn’t stop the work. It makes the work better. 

    Self-reflective questions 

    Ask yourself the following questions to assess your relationship with rest: 

    • When was the last time you truly unplugged—no email, no mental to-do list? 
    • How does your leadership change when you operate from a place of rest instead of rushing? 
    • What message does your rest or lack thereof send to your team? 

    5 techniques for productive rest 

    • Schedule sacred pauses.
      Block “white space” on your calendar. Treat it like a meeting with your best self. 
    • Rebrand rest as ROI.
      Track the insights, solutions, and better decisions that come after taking time off. Share these stories with your team. 
    • Lead by example.
      Tell your team when you’re unplugging and that they should, too. Better yet, build rest into company rhythms. For example, does your team truly need to come back for a day or two between Christmas and New Year’s? 
    • Practice micro-rest moments.
      Do one-minute meditations, a mindful breath before meetings, or stepping outside between Zoom calls to reset your nervous system and improve focus.  

    Own your meetings. Book 45-minute meetings instead of 60-minute meetings, and use those extra minutes to review, recharge, and reset. 

    Team talk  

    In a team meeting, reflect on organizational norms or habits in your culture that discourage rest. Discuss together how you might integrate rest and renewal into your daily workflow. Then, agree on one experiment: outside walking meetings, a creative quiet hour where people can think without interruption, or a 10-minute midday recharge break. Notice what changes. 

    Rest and rise 

    Great leaders know that rest refuels purpose, perspective, and presence. After all, people are human beings, not human doings. Leadership isn’t an endurance contest. When you unplug, you return to your work with sharper thinking, a steadier heart, and a truer sense of what matters. The best leaders don’t just keep going. They know when to pause and recharge. They have the wisdom and courage to stop long enough to see clearly again and that makes space for real power to show up. 

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

    Moshe Engelberg

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  • 5 Pervasive Myths About Email Marketing That (If Believed) Could Derail Your Business | Entrepreneur

    5 Pervasive Myths About Email Marketing That (If Believed) Could Derail Your Business | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    With new social platforms emerging every year, many entrepreneurs wonder if they should leave email behind and look ahead to new avenues. Did you know that email is still the second biggest marketing channel for startups, right behind social media? That’s right! It’s all thanks to its low cost and incredible return on investment (ROI). According to the study by Litmus, it remains one of the best ROIs out there; companies can expect to make a whopping $38 in return for every dollar they spend on email marketing.

    As the CEO of Builderall, an all-in-one digital marketing platform that has supported over 2,000,000 small businesses, I often get asked if email marketing is still an effective strategy in this new phase of our digital age. Is it dead in 2024?

    I’m here to debunk the biggest myths and set the record straight. Today, I’ll share my insider knowledge to help you see the light.

    Defining email marketing

    Before we debunk these myths, let’s make sure we’re all on the same page about what email marketing actually is. Many people have misconceptions about this form of digital marketing, which can turn them off — and that leads to missed opportunities.

    Email marketing is a direct marketing strategy that sends promotional or informational messages to a targeted audience via email. It goes far beyond blasting promotions or cold outreach. Done right, it builds meaningful relationships between your brand and subscribers. It’s a way to keep them engaged, and ultimately, it’s another way to drive sales.

    Some examples include

    • Newsletters
    • Promotional offers
    • Product updates
    • Even personalized content based on a subscriber’s interests.

    Related: 8 Simple Email Marketing Tips to Improve Your Open and Click-Through Rates

    Myth #1: Email marketing is dead

    Let’s tackle the elephant in the room first. No — email is not dead! In fact, it’s far from it and still going strong.

    According to data provided by Oberlo, 80% of businesses rely on email as their primary customer retention channel. That means they’re using email to keep their existing customers engaged and coming back for more.

    But that’s not all. HubSpot found that 60% of consumers made a purchase thanks to a marketing email they received. That’s a huge testament to the power of email marketing in driving revenue for businesses.

    Myth #2: People don’t read emails

    I can’t tell you how often I hear this myth. Sure, our inboxes have gotten pretty crowded over the years, and many of us receive dozens or even hundreds of emails daily. It’s also true that a good chunk of those emails might get sent straight to the trash or spam folder.

    However, according to HubSpot, 46% of smartphone users still prefer to hear from brands via email over other channels.

    If you establish trust and send relevant content, subscribers will welcome your emails with open arms.

    This stat also highlights the importance of putting care in your campaigns by using compelling subject lines and other email elements to stand out in a crowded inbox.

    Myth #3: Younger audiences don’t use email

    Gen Z and millennials are the next generation that will have some serious purchasing power. It’s only logical for businesses to look for new and innovative ways to approach them, as they’re often portrayed as being glued to their screens and obsessed with social media platforms.

    These stereotypes lead many people to assume Gen Z and millennials are too obsessed with TikTok and Instagram for old-school strategies like email. Let me prove them wrong again. According to the Attest U.S. Consumer Trend Report, 53% of Gen-Z enjoy weekly emails from their favorite brands. For millennials, it’s 66%.

    Of course, you’ll want to cater your approach to each audience (throw in some slang or a meme here and there,) but don’t count email out. These generation segments still use and prefer it.

    Myth #4: Email has low open rates

    The next myth I wanted to touch on is more tangible. Some say email performs poorly compared to social media platforms like Facebook or Instagram. For that, we’ll have to look at the open rate.

    Open rate is an essential key performance indicator (KPI) in digital marketing because it tells you how many people are actually opening and reading your emails. MailChimp benchmarks tell us the average email open rate across all industries is 34.23%. While that might not sound amazing, it’s definitely not bad either.

    With optimization, that number can grow much higher and bring benefits. As reported earlier, that’s why so many businesses still rely on email as their primary customer retention channel.

    Related: This One Thing Is the Secret to Higher Email Open Rates

    Myth #5: Email marketing equals spam

    Finally, allow me to go full circle and return to the definition of email marketing. Too many people confuse general email marketing with a somewhat shady practice: cold outreach.

    Cold emails are unsolicited messages sent to people who have not expressed interest in your brand or products. You essentially buy or scrape a list of email addresses (unbeknownst to the recipients) and blast bulk emails, hoping to catch a few leads. They’re often used for prospecting and can come across as intrusive if not done right. That’s because nobody gave you permission to contact them.

    On the other hand, email marketing is about building relationships with people who have already shown interest in what you offer. They might have signed up for your newsletter through a lead magnet or opted in to receive your updates. That’s a big difference!

    It is this latter form of communication that 81% of businesses use email as their primary customer acquisition channel. It drives results without spam tactics.

    Final thoughts

    While many entrepreneurs may feel attracted to the latest shiny object or technology, these myths cause many entrepreneurs to overlook email in 2024.

    When executed correctly, email marketing remains an indispensable growth lever for startups and established businesses alike. Now that you know the truth, utilize email marketing to boost conversions and retention. With a strategic approach, you may see even higher open rates and ROI than the studies show.

    Pedro Sostre

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  • What’s the Actual Cost of Unproductive Employees? It’s More Than You Think. | Entrepreneur

    What’s the Actual Cost of Unproductive Employees? It’s More Than You Think. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Picture this: You’re running a marathon, and you’ve trained for months, but one of your shoes is suddenly filled with pebbles. Your performance suffers, and your personal best time slips away like sand through your fingers. In the business world, unproductive employees can be those pebbles in your shoe. They may not be immediately noticeable, but the impact on your organization’s performance can be serious: the difference between a mediocre quarter and an outstanding one.

    That’s happening to many companies across the board: The United States is currently experiencing an unprecedented occurrence, with five straight quarters of year-on-year drops in productivity, as per a study conducted by EY-Parthenon using information from the Federal Bureau of Labor Statistics. This phenomenon has never been recorded in the available data, which dates back to 1948. The shoes of all companies are filled with pebbles now, but so many companies underestimate the costs of these pebbles.

    Gleb Tsipursky

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  • How to Craft a Values-Aligned Investment Offering | Entrepreneur

    How to Craft a Values-Aligned Investment Offering | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Mainstream business investment advice usually tells us this: A business owner seeking investment capital should go out and look for investors, then once they’ve decided they’d like to invest, those investors set the terms of the offering.

    What does this mean for the business owner over the next five to 10 years? Often, it means the owner has little to no control over what their own business looks like and that they are beholden to the terms set out by the people holding the purse strings.

    If you are a business owner and this sounds unappealing to you, I have good news: Business owners can 100% set their own investment terms — defining how the investment is structured and what the relationship looks like — then go out and find the values-aligned investors who believe in their business and want to help it grow.

    What’s the catch? Well, for Option B to work for you, you need to put in the work to create your own outside-the-box investment offering. That means building the knowledge, team and expertise to structure the right investment offering for your unique goals, values, plans and projections.

    Fortunately, I specialize in just this kind of work, and in this article, I am going to share with you the basic information you need to know to get started on this process.

    Related: Funding Your Values-Based Business: How to Clarify Your Goals and Values in Preparation for Fundraising

    Defining “investment”

    “Investment” is a vague term that simply means someone is giving someone else money with the expectation that, by some means, they will get their money back, plus some extra on top. Investments can happen in several ways: An investor could lend business money, which is called a debt investment.

    They could buy a piece of the company, which is called an equity investment. Or they could buy some kind of a convertible instrument that starts as one thing and then later converts into something else. It’s important to define the terms of the investment people are making in your company.

    Who should define the terms of the investment?

    Given that there are so many ways to structure an investment (literally an infinite number of ways), who should decide what the investment terms will be? To be honest, I’m always surprised by how many entrepreneurs will talk to investors without having clarity about the terms they’re offering and are willing to accept.

    I think it’s because business owners are often told not to worry about the terms because the investor will decide how they will invest in your business. But that’s not a very good idea because the way someone invests in your business has a huge effect on the likelihood of success of your business, the likelihood that you’re going to have a good long-term relationship with your investors and whether the entire partnership goes smoothly or goes off the rails.

    I believe the investment terms should be determined by the company founders, not by an investor, because the founders know best what will be most aligned with their vision, mission and goals. This is why I work with my clients to create their own investment offerings, designed to fit exactly what is right for the company.

    Related: Stop Competing on Price — Compete on Value

    Debt vs. Equity

    One fundamental decision to make about the type of investment you’re going to offer is whether it will be a debt or equity investment. With a debt investment, someone is lending you money you agree to pay back with interest. Pros of a debt investment include that it can be easier to document and understand; investors may perceive it as less risky as debt repayment typically takes priority over payments to equity investors; and you don’t give up any ownership of your company. Cons of a debt investment include that it can look bad on your balance sheet and therefore prevent you from getting other loans; it must be paid back to prevent a default; and payments generally can’t be delayed for too long, or there is a risk that the IRS could recharacterize it as equity.

    An equity investment means an investor is purchasing an ownership interest in your company. Equity must be “priced,” meaning you and the investor agree upon a certain dollar amount per share of your company in what is known as a “priced round.” If you are not planning on a venture capital-type investment dependent on a future sale at a higher valuation than the investor bought in, the value you set is not that important.

    Pros of equity investments include that equity generally doesn’t have to be repaid, and it looks good on a balance sheet. Cons of equity investing include that you are giving away some rights of your company, and equity investing can be more complicated to document and understand.

    The standard venture capital investment model is a type of equity investing that, in my opinion, is not right for most businesses. Yet many lawyers and business financial consultants recommend it as a one-size-fits-all approach. With the venture capital model, an investor buys a piece of your company at a certain price with the expectation that within five to seven years, you will sell the company to a larger company for at least ten times the value. It is quite difficult for most companies to grow that fast in that short of a time, so pretty much every aspect of the company must be dedicated to rapid growth at all costs following this type of investment.

    However, there are many other ways to structure an appealing equity investment offer that does not require the sale of the company for the investors to get paid.

    Related: Investors Can Safeguard Their Money By Focusing on One Crucial Step

    Defining terms

    If you’ve ever raised money or looked into raising money, you’ve probably heard about “term sheets.” A term sheet defines the details of an investment, including the investor’s right to receive payments and the investor’s voting rights, if any. While a term sheet is not required to seek investments, it is a useful tool when raising money outside the VC model because it enables you to describe exactly what an investor will get when they invest in your business.

    Once you’ve decided between equity and debt, you can describe the details in the term sheet.

    You’ll want to decide whether to offer dividends for an equity investment. Dividends are a way investors can get paid without you selling your company. Dividends are paid to investors when a company becomes profitable. Once the company starts to become profitable, some of the profits are paid out to investors in the form of dividends.

    Another element to consider including in an equity term sheet is a “liquidation preference.” A liquidation preference outlines what happens if you sell the company or go out of business. There are many ways to structure a liquidation preference, and you can decide what you want that to look like: What would the investors get in the case of a sale? What would you get? For example, I have some clients who don’t want to be pressured to sell their company, so they set up the liquidation preference to say that if they were ever to sell the company, the investor could only get back what they originally put in and nothing more — discouraging the investor from pressuring the founder to sell.

    A third thing to consider putting into an equity term sheet is “redemption options.” This is another way someone can exit from their investment without you having to sell the company. Redemption happens when someone who has made an equity investment in your company exits from the investment by selling their stock, or equity, back to the company. Again, there are many ways to structure it so you can buy the investor out over time.

    If you decide to offer debt, there are also lots of options. For example, you can structure a revenue-based debt instrument that provides for a quarterly payment to your investors that varies based on your company’s revenues.

    If you decide to offer a convertible instrument, it is up to you what triggers the conversion, e.g., from debt to equity. For example, maybe the conversion happens when your business reaches a certain level of gross revenue.

    These are just a few of the terms you can consider including in your term sheet and which ones you choose, and the details of the provisions will be determined by your specific situation.

    Related: 6 Steps to Finding the Right Investors for Your Business

    What investors want

    While the technicalities of what you offer an investor are critical, values-aligned investors also typically have other considerations when determining whether to invest in your business. For example, your ideal investors will want to support the outcomes or impact your company is having, whether on your community, employees or the planet.

    Investors may also be looking at the risk involved with the investment — how likely they feel they are to get their money back. If an investor knows you and believes in your capabilities and dedication to the company, they may be more likely to invest (they may be tired of investing in faceless Wall Street companies whose managers often seem to care more about short-term profits than the long-term interests of their investors and other stakeholders).

    When speaking to potential investors, first make sure that they are values-aligned and passionate about your company’s mission. Once that is established, show them your customized term sheet and explain the thinking behind it. Your investors will likely be impressed that you took the time to design your investment terms based on your plans, goals and values rather than pulling a cookie-cutter document off the shelf. If you’ve taken the time to design your terms thoughtfully in a way that creates the greatest likelihood of the long-term sustainability of your company, a reasonable return for investors, and a positive impact on people and the planet, there will be investors who will enthusiastically say yes.

    In conclusion

    A lot more could be said about crafting an appealing values-aligned investment offering, but it all boils down to putting in the work to define what you want out of the investment and design terms that align your goals with those of your investors while being realistic about what is possible. Once you have your customized term sheet, you can begin to connect with values-aligned investors with confidence.

    Jenny Kassan

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  • 3 Common Myths About Real Estate Investing Debunked | Entrepreneur

    3 Common Myths About Real Estate Investing Debunked | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Successful people know the value of investments. There are several ways to become extremely wealthy in life, but few carry the same track record as investing in real estate. Real estate investing is one of the best wealth generators in the world. There are arguably more millionaires in the field of real estate, than any other category of business. So what is a “real estate investor” and how can you become one?

    The term “real estate investor” often refers to individuals and businesses that buy, sell and renovate houses. However, you don’t have to be a professional house flipper to hold the title of real estate investor. Anyone in any industry that actively chooses real estate as an investment option is a real estate investor. Some individuals choose real estate as an alternative to stocks, bonds and mutual funds and others choose to add real estate to their existing portfolio of investments. The question often asked: Is it obtainable to everyone?

    Here are three of the most common misconceptions about investing in real estate.

    Related: 10 Reasons Why Every Entrepreneur Should Invest in Real Estate

    You have to be wealthy in order to invest in real estate

    When most people think of real estate investing, they think of mega-rich celebrities and their massive real estate portfolios. Just because you don’t drive a Lamborghini or draw a salary from a multi-million dollar trust fund doesn’t mean that you can’t invest in real estate. There are numerous ways to start investing that require very little out-of-pocket expenses.

    Traditional wholesaling and joint ventures are just a few methods that require little to no capital. Hard work and dedication are really all that is required to become a very successful real estate investor. With the right methods, you can flip your first property with very little money and possibly without ever spending a dime.

    You need good credit in order to finance real estate deals

    If you’re applying for a traditional bank loan, then you’ll need an adequate credit score for the approval process. However, there are a variety of other ways to secure financing for your real estate investments. Let’s take a look at two of the most common financing options that require little to no credit approval.

    Transactional funding aka flash funding

    Transactional funding is a short-term loan that is borrowed and paid back within 24 hours in most cases. This type of financing is common during a double closing that occurs back-to-back. It allows an investor to secure the A to B side of a real estate transaction. Then, once the investment is secured, the investor can sell the property on the B to C side. After they collect the funds from that closing, they immediately pay back the initial flash fund loan. In most cases these loans are secured by the asset being purchased and not the investor.

    Hard money financing

    Hard money financing is another popular strategy that real estate investors use to acquire investments. This type of loan is known as a bridge loan. It’s a short-term loan that allows the investor to purchase a property without a lengthy application or approval process like the ones required from traditional banks. Hard money loans are asset-based, which means they are not contingent on the investor’s creditworthiness. They are normally used in rehabbing projects where the investor purchases a property at a discount, then remodels the home and resells it at a profit, at which point they repay the loan. These loans rarely exceed a 24-month period.

    Related: 3 Ways Entrepreneurs Can Save on Real-Estate Costs

    You need experience to invest in real estate

    The fact that you’ve never invested in real estate, should not stop you from investing. A little research can go a long way. Experience is gained by actions. After all, to become an experienced driver, you have to drive. That doesn’t mean you should get into a sports car and hit the race track. It means you begin with driving around your neighborhood, your town, city, highways and eventually interstates, etc. It’s no different with real estate investing. Your first attempt at investing shouldn’t be a 500-room condominium with a 60-page purchase agreement. It should be an affordable single-family home in areas that you’re familiar with.

    There’s no question that you can begin investing with little to no previous knowledge or experience. However, if you are looking to fast-track your learning curve, you may want to seek out the assistance of a seasoned professional as a mentor. A successful investor can not only teach you what to do but more importantly what not to do. Being able to bypass costly rookie mistakes is a huge benefit and will increase your chances of success. Many successful business professionals have mentors and real estate is no different. Just make sure you do your research to ensure that you’re seeking counsel from a qualified advisor with years of real estate investing experience.

    Conclusion

    There’s a reason so many people turn to real estate as a vehicle to generate wealth. Simply put, it works. Don’t get discouraged by false information and myths about what is required to get started. The only thing stopping you from becoming a real estate investor is you. One of the world’s most famous investors Warren Buffett once said, “Be certain of your success, even when no one else is“. Don’t procrastinate, do your research and begin your journey.

    Michael Ligon

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  • 3 Reasons Now is the Best Time to Start Investing

    3 Reasons Now is the Best Time to Start Investing

    Opinions expressed by Entrepreneur contributors are their own.

    Thanks to record-high inflation, geopolitical instability and the first interest rate increases in years, the current market is, simply put, incredibly volatile. Existing investors are making strategic changes to their portfolios, and new investors are unsure if they want in at all. But for those fortunate enough to have disposable funds, is now the right time to get started?

    Here are three reasons to wade in — slowly.

    1. Time in the market is better than timing the market

    Generally, when one starts investing isn’t as impactful as how long one invests. With a long enough time horizon, a well-diversified portfolio, and the power of compounding, portfolio volatility usually smooths out. This has been historically proven repeatedly as it pertains to the stock market.

    By contrast, “timing the market” or waiting for stocks to hit a new low or drop from recent highs so that an investor can snag a bargain is risky. Short-term market behavior tends to be unpredictable, with current trends reversing on a dime. Waiting for the “perfect” moment to invest may mean passing up potential gains.

    In other words, for many traders in waiting, now is as good a time as any to invest because markets are down. But exceptions may arise for those who need their money soon, as a short-term downturn can wipe out a portfolio overnight. If you are a new investor looking for a long-term “buy and hold” strategy, this is one of the best times to enter the markets and begin investing.

    Related: Create More Wealth by Playing the Stock Market

    2. Downturns leave more room for growth

    Many investors view short-term volatility as a risk that negatively impacts their portfolio. In the short term, this is true: volatility often drags down the total value of one’s investments.

    That said, one of the primary ways that the stock market generates returns is when investors buy low and sell high. And what better way to profit off large price differences than buying in when the market swings downward? Forget timing the market — a good strategy for long-term growth is to buy when the market is down.

    It may help to view market volatility as a form of bargain hunting. By buying high-quality investments when they go “on sale,” investors can increase their future profit margins when the market recovers. The trick is sorting the junk from the gems.

    Related: How To Start Investing

    3. The market will perform sooner or later

    There’s no guarantee that any individual security will turn a profit. But historically, given enough time and increased economic activity, the stock market always performs — eventually.

    That said, the time between a crash and recovery varies widely, and it certainly cannot be forecasted when that will happen. As such, pinpointing how long investors have to wait to realize gains is nearly impossible.

    For instance, most stocks took 12 years to recover following the Great Depression. But during the COVID-19 pandemic, many stocks recovered within just four months. This a sobering reminder that there is no way to time bull or bear market cycles and that a market recovery can even mount in some of the worst economic conditions.

    Related: Why You Should Invest in Mutual Funds vs. Individual Stocks

    Start slowly to establish good habits and “feel out” the market

    So, is now the right time to invest? For investors who aren’t on the cusp of retirement, the answer may be yes. Every investor should consider their risk tolerance and time horizon before deciding when and where to invest. Starting slowly can ease new investors into the market without introducing excessive risk.

    Novices may also start simply with a dollar-cost averaging method, which involves investing small sums at regular intervals to even out the market’s ups and downs. While it’s not as exciting as day trading, dollar-cost averaging reduces the temptation to time the market and can even lead to more significant gains for investors.

    As scary as the current market may seem, competent investing is less about day-to-day developments and more about the future. Be strategic, stay focused, and only risk what you can afford not to touch over the future.

    Kyle Leighton

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  • 12 Questions About Facebook That Every Entrepreneur Needs To Know

    12 Questions About Facebook That Every Entrepreneur Needs To Know

    Opinions expressed by Entrepreneur contributors are their own.

    Facebook Ads can be a great way to drive traffic to your website and increase sales conversions, but they can also be expensive and difficult to manage if you’re unfamiliar with the platform. By understanding how Facebook Ads work and what options are available to you, you can create a cost-effective ad campaign that meets your business’s needs.

    In this article, discover the top 12 questions and answers entrepreneurs and small business owners need to know about running Facebook ads for their companies.

    As an online entrepreneur and marketing coach who teaches business owners how to DIY their digital branding and marketing (while saving time, money and energy), Facebook advertising is one of my favorite subjects to consult on. It’s been one of the most cost-effective ways for my companies to reach a large audience of targeted customers while helping my businesses grow brand awareness faster and easier.

    That said, here are 12 common questions I hear from entrepreneurs.

    Related: The Complete Guide to Getting Started With Facebook Ads

    How do I promote my small business on Facebook?

    An effective way to promote your small business on Facebook is through targeted ad campaigns. With targeted campaigns, you can reach the right people with your message and increase the chances of garnering attention for your business. To start, take advantage of Facebook’s Audience Insights feature to gain insight into the demographics of your ideal customers.

    Related: The Complete Guide to Facebook Advertising

    Are Facebook Ads worth it in 2023?

    Facebook Ads can be a great way to promote your business over the next year. While there are all types of online advertising tools (such as Google ads, YouTube ads and more), the bottom line is that Facebook advertising is still one of the most cost-effective advertising methods on the internet.

    Unlike other platforms or systems, Facebook advertising allows you to create specific audiences that help narrow down who you are trying to reach. This information will help you create a targeted ad campaign that is more likely to be successful.

    How much does a Facebook ad cost?

    The cost of the ads varies, depending on how many people you want to see the ad, the period you plan to run it for and even other factors like the location and audience type you want to reach. In addition, since it’s a social network where your ads generate organic engagement (such as shares, likes and comments), it enables your content to go viral faster, expanding your ad’s reach without spending more budget toward impressions. You can get started running ads for a small amount, like just $5 per day, which is a great way to test creative content.

    How do I start a Facebook ad?

    A small business owner can start a Facebook ad campaign on the platform by first creating a business page and ad account. Start by defining the campaign objectives (such as brand awareness, traffic, etc.) and select an audience most likely to convert. After that, create an engaging ad with high-quality visuals and compelling copy. Make sure to include a call to action that encourages viewers to take the desired action.

    Related: Your 7-Step Guide to Getting Started With Facebook Ads

    How do Facebook Ads work?

    Facebook Ads target users based on their behaviors, interests and other demographic information. When a user clicks on an ad or interacts with it in any way (such as liking, commenting or sharing), they are adding to the ad’s reach — and driving more conversions. Once an ad is created, it will be displayed in various sections on Facebook, Instagram and affiliated platforms.

    How do Google Ads compare to Facebook Ads?

    Google and Facebook ads are two different ways to advertise your business online.

    With Google ads, you can target people actively searching on Google for keywords related to your business. By contrast, Facebook ads let you target people based on their interests and other demographic information, so visual ads are served to them while they’re spending time on social media.

    The benefit of Facebook (in comparison to Google) is that it enables you to be more selective about the type of person you are trying to reach with your ad. Whereas, with Google ads, it’s all based on the keywords people are searching for, so you might end up paying for clicks from people who aren’t your ideal customer.

    Do Facebook Ads work for small businesses?

    As an entrepreneur starting a business, you must be mindful of how you spend your financial resources. That’s why testing ads online can be a cost-effective way to see how people engage with your content while driving brand awareness for your startup.

    Tap into the power of targeted Facebook Ads to reach your ideal customers faster and easier. You can tailor your ads with precise segmentation to get the right people with relevant messages, helping them make more impactful connections and increase engagement rates! By paying attention to detail when setting up an ad campaign on Facebook, small businesses can maximize their efforts for maximum success.

    How long should I run a Facebook ad?

    You should run a Facebook ad for as long as it is effective. That means you should track how many people click on it, like it or share it. If it is ineffective, you should stop running the ad and try something else.

    In the social media marketing course I created for Inspiring Brands Academy, within a few short hours, I teach my students (who are small business owners and entrepreneurs) step-by-step strategies to create successful ads that drive results. Analyzing the data on which type of creative content is performing best helps you decide how long to run each ad.

    How do I find my target audience through Facebook ads?

    Using the platform’s powerful targeting capabilities, you can find your target audience through Facebook Ads. With the ability to target users based on their behaviors, interests, demographics, location, and more, small business owners can create highly tailored campaigns that reach the right people (which means you’ll spend less advertising budget to reach the customers who’d naturally be interested in your product or service). This allows for more effective engagement and conversion rates since the audience your ad is being delivered to is already interested in what you are offering.

    For example, if you run a beauty ecommerce business that sells anti-aging skincare, then most likely you’d want to target people over age 40, whose interests include beauty and skincare, and who follow pages like Allure and NewBeauty magazine, retailers (such as Sephora and Ulta) and popular skincare brands.

    How do I measure the success of my Facebook Ads?

    The success of your Facebook Ads depends on a variety of factors, including the quality of the creative content and how well they target your desired audience. However, the best way to measure the success of an ad campaign is by tracking its performance with analytics. Through Facebook’s Ads Manager, you can measure metrics such as impressions, clicks, conversions and more to determine which ads perform best and generate the most ROI.

    What is a good budget for running Facebook Ads?

    There is no one-size-fits-all answer to this question since it largely depends on the size of your business and the goals you want to achieve with your ad campaigns.

    Generally speaking, I recommend that entrepreneurs set aside a budget for testing their ads before allocating more money to successful campaigns generating results. But the good news is that you can start by testing ad content for just $5 per day over seven days to see results. I recommend trying various ad types (video, photos, different copy and CTAs) to see which performs best.

    Related: How to Increase Your Marketing Return On Investment Through Customization and Multiple Personas

    What is the average return on ad spend for a Facebook campaign?

    The average return on ad spend (ROAS) for a Facebook campaign can vary depending on your target audience and how well your ads perform. Generally, you should aim to get a ROAS of at least 1-5x — meaning that you’re earning back the amount you spent to run the campaigns.

    To calculate your ROAS, divide your total profit by the amount you spent on running the ad. For example, if your total profit is $100 and you spent $50 to run the ad, divide 100/50 = 2x ROAS. The higher the ROAS, the better it is for your business.

    As you can see, small business owners and entrepreneurs can benefit from running Facebook ad campaigns because they allow for highly targeted advertising that reaches people who are already interested in what you have to offer. Additionally, through analytics, businesses can measure the success of their ad campaigns and make necessary adjustments to ensure they are getting the most out of their investment. With a good budget and an understanding of targeting your audience, you can see a high return on investment from Facebook ad campaigns.

    Christina-Lauren Pollack

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  • 6 Tempting Investments To Avoid

    6 Tempting Investments To Avoid

    Opinions expressed by Entrepreneur contributors are their own.

    As investors, we’re often told to be active and diversified. But are some investments not worth your time or money? Indeed, certain types of investments should be avoided at all costs. Here’s a list of common financial products and how they might affect your portfolio.

    1. Whole life insurance

    Whole life insurance costs substantially more than term insurance. Whole life premiums are typically much higher than term premiums, and the cost of whole life policies can be even higher for older individuals. It’s also important to note that since whole life policies cannot be cashed out, you can’t use them as collateral if you decide you need money from your investments in the future. Additionally, if someone dies before their policy expires (which often happens with whole life policies), their beneficiaries only receive a fraction of what they were expecting because of how much this type of insurance costs.

    In addition to these issues with cost-effectiveness and liquidity, whole life insurance also offers fewer death benefits than other types of investments due to its nature as an annuity contract instead of a mutual fund or stock portfolio; this means that there won’t be any growth potential after purchasing your plan which would otherwise come from investing in other funds or stocks over time.

    2. Low-interest saving accounts

    A low-interest savings account is an investment you can make with money that you don’t need to use immediately. Savings accounts are generally insured by the government and offer a slight interest, which is often lower than inflation. These accounts are not liquid, meaning you cannot withdraw your savings without penalty if you need them for something else. They also have high fees attached to them and may even charge high minimum balances if you aren’t putting enough money in there every month. Furthermore, since these types of investments don’t earn much interest on the cash inside them, they may lose value over time due to inflation.

    Related: How Generation Z Can Jump-start Savings (Advice Anyone Can Use)

    3. Penny stocks

    Penny stocks are low-priced shares of small companies that trade over the counter rather than through an exchange. They can be risky investments because they aren’t regulated by the Securities and Exchange Commission (SEC). This means that penny stocks are not required to follow the same strict rules as other investments, which makes them more likely to be scams.

    Penny stock investors don’t have many options for selling their shares — penny stocks typically don’t trade on any of the major exchanges where investors can sell them for cash. If you want to sell your shares, you’ll usually need to find someone who wants them badly enough that they’ll accept less than market value. And since most people have no idea what these “spare” shares are worth, it’s easy for folks posing as brokers who say they’ll buy your shares at an inflated price (or even just a flat rate) without even checking if there’s any demand for those particular shares on an actual exchange somewhere else in the world.

    Related: 5 Things Millionaires Do That Most People Don’t

    4. Gold coins

    Gold coins are not a good investment. They’re essentially just a store of value, like other precious metals. While some people may see this as an advantage in that it can be bought and sold easily (which is true), it does not generate income as stocks or bonds do — and it can also lose value if gold prices go down. If you want to buy something tangible, buy silver instead: It’s cheaper than gold on an ounce-by-ounce basis, has more industrial uses (such as being used to manufacture electronics), and has been less volatile over time than gold has been.

    Related: Why It’s Never a Bad Time to Invest in Precious Metals

    5. Hyper-aggressive growth mutual funds

    A hyper-aggressive growth fund invests in companies with high growth potential. These funds tend to invest in risky stocks, meaning they could quickly lose value if the company’s stock price falls or the economy goes into recession. The risks of these types of funds are twofold: first, there are times when the market will crash, and your investment will be lost entirely; second, even under normal conditions, you may see an overall loss over time because these types of investments tend to fluctuate in value more than other investments (like bonds). If you’re looking for an aggressive option with a chance of making some serious money, consider an aggressive growth fund instead.

    6. Complex private limited partnerships

    There are some types of investments you should avoid at all costs. One such type is a complex private limited partnership. These investments are dangerous because they often have hidden risks that can lead to significant financial losses. A good example is the Madoff Ponzi scheme, which ended with many investors losing their savings.

    Another reason you should avoid these types of investments is that they involve high tax implications, which can be challenging to understand and may require professional assistance from an accountant or other expert to comprehensively comprehend the tax laws governing them. Some companies may also try to sell you investment opportunities with very little information about what exactly it is that they’re offering. These products are often sold by unscrupulous individuals who will take advantage of people’s lack of knowledge about financial products to make quick cash off their victims’ backs without ever completing any work on their behalf (which means no profits).

    Christopher Massimine

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  • Why You Should Treat Every Day Like Thanksgiving

    Why You Should Treat Every Day Like Thanksgiving

    Opinions expressed by Entrepreneur contributors are their own.

    This column originally published on Nov. 26, 2014.


    Shutterstock

    Thanksgiving comes around once a year, but what if we adopted the mindset that every day was Thanksgiving and were intentional about the people and things in our lives that we’re thankful for?

    John Brubaker

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  • Strategies to Optimize Returns in Franchise Digital Marketing

    Strategies to Optimize Returns in Franchise Digital Marketing

    Opinions expressed by Entrepreneur contributors are their own.

    Return on Investment (ROI). It’s what every brand wants from its franchise digital marketing dollar — money that’s often begrudgingly spent even though most brand leaders know they need to budget for it. Still, doing so isn’t like allocating money for research and development or human resources, where cost can be more easily measured against return. Now more than ever, digital marketing is a nuanced tool that can add tremendous value to a brand name.

    For the same reason, it can leave investors feeling like they aren’t getting their money’s worth. So, how do you measure its value? What criteria do you use, and how focused should you be in determining your franchise’s digital marketing ROI? Well, a lot depends on, well, a lot.

    The right partnership

    Getting a good read on your franchise marketing ROI should always start with establishing a clear and consistent baseline against which it can be measured. It should account for external factors that may impact a campaign’s success, like weather, seasonal trends, economic pressures (think pandemic) and more. Perhaps most importantly, it should consider the skill and experience of the person or the team doing its monitoring and measuring.

    These days, most consumers take their time before purchasing, partly because there are many ways that decisions can be influenced. The digital landscape is increasingly fragmented, and the buyer’s journey doesn’t always start at A and end at Z. A buyer’s digital experience is virtually limitless, which is why it’s essential that your team measures ROI holistically, not just channel — or platform-specifically — and that means it’s essential to partner with marketers who can see the big picture and help you see it, too.

    Related: The Importance of Seeing the Big Picture

    Think about it: we all rely on the advice of experts — accountants, plumbers, lawyers — and you should seek out a digital marketer with the same intention as a doctor or mechanic, as someone who can help you understand a complex scenario and guide you through choices. Good franchise digital marketing integrates many efforts — content, paid advertising, social media, SEO, and more — and experienced franchise digital marketers know that ROI should be measured using a predetermined set of key performance indicators (KPIs), metrics that reflect your objectives. Common franchise development KPIs include cost per lead, click-through rate, organic traffic and more. An experienced franchise digital marketer can help you determine which KPIs are best to focus on, given your brand’s history and goals.

    Emerging vs. established brands

    Identifying what KPIs to focus on as a franchisor will very much depend on whether your brand is an emerging one — new to the industry with a lot to prove — or an established one with a reputation, one that’s either served you well or hasn’t (and here’s where reputation management is critical. An experienced digital marketing agency can help you with that, too!). All franchisors measure success by the number of franchises they sell each year. Still, an emerging brand may have other criteria they’ll use in addition to sales, like whether or not they’ve articulated their story and purpose effectively, whether they’ve reached the best and broadest audience possible, and how clearly they’ve outlined their value against that of the competition. This will mean adopting a long-view marketing strategy that may take more time to measure.

    Related: Can’t Rush a Good Thing: Effective Franchise Digital Marketing Takes Time

    Conversely, an established brand with a good reputation will likely have very different goals that are a subset of the ultimate goal, which is to sell franchises. They may want to reach new personas, like multi-unit owners or veterans, the market for a specific territory or region, or focus on a particular competitive advantage. These goals are more precise and, therefore, may be more easily measured; they might also be more quickly realized because marketing strategies can be highly tailored to meet them. For brands suffering from poor reputation management or a history of dissatisfied customers, marketing efforts will take on a completely different tone and objective, one that looks to reestablish trust and reiterate worth, neither of which can happen overnight.

    The lifetime value of your brand

    As someone who’s been in the franchise marketing sphere for a decade, it’s my experience that whether you’re a franchisor or a franchisee, ultimately, the real return on investment depends on how you view your marketing dollar in the first place: is it an expense meant to deliver results quickly, or an investment, one made for long-term growth? You’d be wise to approach it from the latter perspective.

    All your marketing efforts should add to your brand’s equity or its lifetime value — the place it has in the hearts and minds of consumers and the public, people who include potential franchisees — and that almost always takes time to establish. Most investors want to align with brands they can believe in and trust, in other words, brands that have worth beyond what can be measured by KPIs and ROIs. A brand’s worth is built over time — often years — through creating awareness, articulating culture and values, delivering on promises, and encouraging loyalty; again, this means taking a long-view approach to your marketing strategies and determining ROI.

    Related: How to Vet Franchisors and Predict Your ROI on a Franchise Business

    Taking a long view is especially important in franchising because it’s set up to reward patience financially. Hefty one-time franchise fees paid by new investors and ongoing monthly royalties (typically 5-8% of gross sales and the real bread and butter of a franchise brand) can add up and contribute tremendously to brand value. Every franchise that is sold adds to a brand’s inherent worth, and that growth can only happen if you commit your marketing dollars to work over time. Franchisees, too, should view their local marketing efforts as an investment in their presumably long future, one that’s meant to slowly and steadily grow their presence and value.

    In the end, ROI should always be gauged against the cost of not creating a budget for regular and comprehensive digital marketing. Your brand doesn’t exist in a vacuum and can’t grow unless you do what others want: believe and invest in it.

    Stephen Galligan

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