ReportWire

Tag: Small Business Growth

  • Why New Startup Founders Are More Optimistic Than Established Entrepreneurs

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    Despite continued uncertainties about the bottom-line impact of tariffs, and lingering doubts about the economy’s health, polls have shown small business owners’ optimism has risen since the the beginning of the year. Now, new data indicates the confidence of more recent founders is even higher than the generally improving outlook of more established entrepreneurs.

    The upbeat expectations of relatively newer small business owners were captured in a recent survey by email, social media, and digital marketing platform Constant Contact. Its polling of nearly 1,600 entrepreneurs showed founders who launched their companies within the last two years expressed higher levels of optimism about growing their businesses over the next three months than the average of all survey respondents. Leaders of those younger firms were also markedly more confident about the near-term future than respondents whose businesses have operated for a decade or more.

    For example, while 29 percent of all participating founders said they expected to increase headcount in the next quarter, 41 percent of those who launched their companies less than 24 months ago said they planned on hiring within that period. By contrast, just 21 percent of business owners with 10 years’ experience or more thought they’d be able to hire new employees over the next three months.

    Moreover, 76 percent of business owners who launched less than two years ago and now have 100 employees or more said they plan to make new hires in the next three months. According to Constant Contact CEO Frank Vella, more recent entrepreneurs’ higher confidence partly reflects the vigor and positivity of leaders whose companies are still benefitting from early-stage growth.

    “For many this optimism isn’t just a feeling; it’s a reflection of their current growth trajectory,” Vella told Inc. in emailed comments. “Younger businesses are more likely to be hiring, and this rapid scaling imbues a greater confidence in their current position and trajectory. Many of these business owners are highly ambitious as well. They are actively scaling and investing in their future, which naturally fuels a more positive outlook.”

    Those upbeat views were also evident in respondents’ optimism about how they think their companies will perform over the next three months.

    While an average of 31 percent of all participants said they were “extremely confident” about how their business will fare over the next quarter, that figure rose to 41 percent among owners who’ve been in operation less than two years. It was even higher — 60 percent — for members of that more recent cohort with 100 employees or more. It then dropped to less than a quarter of entrepreneurs who launched more than a decade ago.

    Those differences in outlook, Vella says, may come down more recent founders still having the greater flexibility of younger companies to react the various business and economic challenges all small companies are confronting.

    “They were likely founded in the midst of the current economic landscape, which is defined by supply chain issues, rising prices, and general uncertainty,” Vella explained. “Because of this, their business models, supply chains, and marketing strategies were built from the ground up to withstand this volatility…They are accustomed to doing more with less and can adapt their plans without the inertia that can slow down a more established company. In this way they aren’t reacting to a ‘new normal’; this environment is their normal. That makes them structurally better positioned to navigate it.”

    That pliability of smaller businesses may also explain why their owners’ optimism of starkly contrasts the more somber views of corporate leaders. For example, the reading of the most recent Conference Board’s Measure of CEO Confidence survey came in at just 49 points — still in negative territory, despite a 15-point boost over the previous poll.

    By contrast, the National Federation of Independent Business’s recent monthly surveys have shown the confidence of member entrepreneurs steadily rising this summer. Constant Contact’s survey confirms that optimism among entrepreneurs, even as tariff and economic uncertainties weigh more heavily on corporate CEOs.

    Indeed, it found nearly a third of respondents saying now is “an extremely good time” to launch a new product. Meanwhile, nearly a quarter said they considered current market conditions beneficial for growing their companies by opening new physical locations.

    Asked if the higher optimism of more recently launched business founders might reflect an insouciance or naivete that more established business owners may have lost through the experience of tough times, Vella said he instead views their confidence rooted in their success in meeting today’s challenges.

    “These business owners haven’t experienced a more stable economic climate to compare today against, so they are less focused on what’s been lost and more focused on the opportunity directly in front of them,” Vella said. “So, rather than being naive, I’d say they are inherently adapted. They’ve built their businesses for the world as it is today, and that’s a powerful advantage that fuels their confidence and their capacity to grow.”

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    Bruce Crumley

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  • 3 Non-Financial Factors That Could Impact Your Business’ Value | Entrepreneur

    3 Non-Financial Factors That Could Impact Your Business’ Value | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Determining a business’ value is not all about adding up revenue and subtracting expenses. While an important piece, these hard numbers are only half the equation for computing what a company is worth. To come up with the true value, we also look at factors like the level of owner involvement, company goals and growth opportunities. When we use the complete equation, we get a comprehensive picture of a business and can better understand the story of its past, present and future.

    Calculations may vary depending on the company, but in a healthy one, there is about a 50/50 split between the quantitative (financial) and qualitative (non-financial) sides of performance. If the business isn’t profitable, it’s more important to focus on the quantitative side and fix the numbers first. Many owners don’t want to hear that, but if they’re not hitting their numbers, it may mean the business is not working. They must fix the quantitative issues before moving to the qualitative side.

    Related: What Is a Balance Sheet and Why Does Your Business Need One?

    For healthy companies that want to maximize their value, the qualitative indicators can be bundled into three main categories.

    Evaluating quality

    1. The owner’s goals

    We’ve found significant research showing that if an owner has defined goals and plans for the future that are in line with market expectations for their company’s value, they’re going to have a much stronger exit. What is the owner’s defined goal for exiting the business — to get the most money, to take care of their employees and to ensure a legacy? You must then get to the “why” behind the goals and devise a plan of action. It almost doesn’t matter what the answers to the questions are; having achievable goals and a strategy for reaching them can increase the company’s value because it keeps the owner focused on improving the other areas of the business.

    2. The owner’s role

    The extent of the owner’s involvement is a critical indicator, but perhaps not for the reason you think. The more involved the owner is in day-to-day operations, the more central they are to the business, the less the business will be worth down the road. If the owner is the linchpin that holds everything together, what will happen to the company when they leave? Evaluating operations is more about the system and the structure of the team. Look at the organizational chart and who’s on it – are they good employees or bad employees? Examine the company’s processes and procedures and how new team members are trained and onboarded. The owner sets the vision, but it’s the team that increases company value by carrying out the vision.

    3. Growth opportunities

    Nobody wants to buy a business and keep it exactly as it is. They want to see potential for growth in the future, especially the potential for return on their investment as a buyer. Whether it’s a simple price increase or new locations, whoever buys the business is going to ask about growth opportunities. Indicators like product or service diversification in both the company and the industry it’s in give a good sense of whether the company is moving forward or standing still (and at risk of going backward). The more potential you can show, the more upside there will be for the next owner — adding up to greater value.

    Related: 8 Factors That Determine the Financial Health of a Business

    Cycle of success

    When the qualitative side of the equation is working, it all ties together. The owner knows the goals, which are aligned with where the company is going, and is leading the organization but working themselves out of the day-to-day operations; the business grows and creates more growth opportunities for the next owner. Paired with profitable numbers, it’s a cycle that builds a high-quality business.

    For the best owners, it takes a minimum of three to five years to get that cycle working for you and have reliable indicators of your value. Making it part of a 10-year strategy is even better.

    At Exit Factor, we have 62 different qualitative indicators that we use for determining company worth. We don’t use them all, or even close to that, for every business; it’s usually a matter of tweaking three to five of the 62 indicators. Figure out which of those 62 are essential for your company, and you’ll have a truly forward-looking strategy for profitable growth.

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    Jessica Fialkovich

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  • 5 Ways Solopreneurs Can Scale Their Business Through Collaboration | Entrepreneur

    5 Ways Solopreneurs Can Scale Their Business Through Collaboration | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    There’s no shortage of examples of successful solopreneurs who have forged their own path to grow ground-breaking businesses. They’re often held up as people who value autonomy and control and who approach business building like it’s a hero’s journey.

    But I believe our culture has blown the “solo” part of solopreneurship out of proportion, leading many would-be entrepreneurs and creators to feel like they have to go it alone. And while solopreneurs are solely responsible for making decisions about their businesses, it doesn’t mean they have toil away independently on every aspect of it. Doing so can actually be detrimental.

    Many successful entrepreneurs find ways to involve others for support and guidance and to create a shared journey. Through my work with creators, many of whom are solopreneurs, I’ve seen how this approach can be transformational. For example, for many years, my company has hosted an event in which women of color within the creator economy have shared their experiences. We found that creating space for these solopreneurs led to record-breaking attendance. It’s all part of a larger movement that has seen solopreneurs come together in real life and on virtual platforms to leverage the power of community and collaboration.

    Related: 5 Ways for Solopreneurs to Sustain Momentum and Thrive

    As a solopreneur, you are part of something bigger

    The growing number of solopreneurs has effectively changed the face of our economy. Today more than 80% of American small business owners operate without any staff. For some, this works well.

    But I’ve noticed that many creators, for example, go into their journey with the mistaken belief that if they can’t figure it out on their own, they’re not cut out for entrepreneurship. The reality is that stoically resisting help or not seeking out support or community can lead to loneliness, burnout and even depression.

    Working with others is powerful, and many brands are tapping into this movement and finding ways to facilitate inspiration and connection by bringing their communities together – whether it’s around e-commerce, crowdfunding, fitness or other aspects of life and business. The cliche really is true: we may go faster alone, but we often go farther together. Embracing a community-based approach can lead to tangible benefits.

    The power of finding your people (and places)

    Broadening your definition of solopreneurship isn’t just about finding people to work with though. It can also be about uncovering solutions you didn’t know existed, getting access to information or guidance from people who have been there, or even just having a place to go when you need a break from your home office. Here are a few of the ways I’ve seen individuals take a collaborative approach to solopreneurship – and reap the benefits:

    Choosing tech platforms that offer community

    We’ve all experienced the rise of online communities – public and private – but consider the unifying force of tech tools that support people in achieving specific goals. Whether it’s launching a course or implementing a payment system, you’ll find people rallied around platforms offering concrete solutions. Choose your platforms wisely, and you’ll end up with more than just tools; you may find new colleagues, collaborators and a wealth of shared expertise.

    Working from a coworking space

    Anyone who’s ever worked from home – or launched a business from their basement – understands the value of a good coworking space. Beyond situating you among peers, they offer rich gathering spaces for solopreneurs who want to network, learn, and enjoy the creative energy of others. Research has shown that people thrive in coworking spaces thanks to the collective boost in productivity and creativity – and that they can also be a great antidote to burnout.

    Attending in-person conferences and events

    Ever since Covid put a pause on live events, it’s been tough for many of us to get back into the swing of it. But there are benefits to immersing yourself in a room full of strangers – particularly the opportunity to forge deeper connections. Sharing new experiences with other people in person can lead to the kinds of bonds you just don’t get over Zoom (and making that in-person investment can open up other ways to maximize your returns there, too.)

    Teaming up with a partner

    Collabs are still having their moment, but they can be more than just a trendy way to build an audience. I get genuinely excited when I see solopreneurs I follow come together because I’ve seen how great collaborations can effectively fill business gaps. Plus, good partnerships can also uncover new opportunities, boost revenue and even fuel innovation. Sure, there can be risks to collaborations too, but as long as you stay true to your goals and your brand, you stand to benefit.

    Related: Solopreneurs are Changing the Face of the Economy

    Finding a mentor

    Much like peers, mentors offer business advice based on their lived experience, but they also bring the wisdom of seniority. But if the intimidation factor of approaching a mentor is holding you back, you can always start more informally. Many solopreneurs give back to their communities by sharing their learnings through courses or live events. Start by following people you admire and see what it can lead to.

    However you choose to expand your definition of solopreneurship, keep in mind that inviting others into your journey doesn’t negate your success; at the end of the day, the buck still stops with you. By piecing together a new narrative about the realities of solopreneurship, we can start to normalize the idea that creators and entrepreneurs don’t need to walk this road alone. And sometimes, just knowing that help – and a shoulder to lean on – is out there can go a long way toward boosting resilience, capacity, and the determination to keep going.

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    Christie Horsman

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  • How to Build a Durable Business in a Down Economy | Entrepreneur

    How to Build a Durable Business in a Down Economy | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    How do I build a business that withstands the test of time? One that endures economic downturns, surges in innovation and workplace trends like the Great Resignation and September Surge? As leaders and founders, it’s a question that we spend hours strategizing and brainstorming around.

    I view it much like playing a video game, but not the kind where you drop a quarter in the arcade and win a quick prize. It’s more like the video games that have you glued to your chair, fist-pumping, with a combination of stress and satisfaction when you finally unlock the next level — and then another and another. Unlocking these levels — which are essentially the building blocks of a durable business – is a marathon, not a sprint. We need to plan appropriately, invest in the right areas, leverage market data to inform our decisions and learn from those who have already succeeded. What worked and what didn’t? Through my own journey of building a durable business, I’ve identified several patterns that can help other businesses withstand not only the test of time but also uncertain times.

    Related: Economic Downturns Don’t Last Forever — Here Are 5 Ways to Maintain Resilience During a Recession

    Building for durability isn’t for the faint of heart

    In reality, building for durability requires a commitment to decades of work. I call these the hard yards — and it always gets more difficult as you scale. At each stage, as you multiply your business in terms of revenue, people, and reach to market, there are new challenges to unlock, much like gaming levels. The experience will test your skills and not only demand an up-leveling of your commitment but will also require you to recommit with the passage of each year because it will be that challenging.

    Be disciplined and data-driven with growth decisions

    The types of challenges you will encounter will differ from business to business. For founders leading through the current economic downturn, many are facing the daunting question, “Can I still invest in the business?” The answer is yes. We just have to be very specific about how and where to invest. Take, for example, one study that followed 4,700 companies over the course of three recessionary periods and found that those that performed the strongest invested in tactics such as R&D, marketing and necessary business assets.

    Instead of taking their foot off the pedal, they buckled down and invested in areas that made sense for them. Today, leaders need to apply an added level of discipline around where to focus inside the business and how to approach their growth decisions. Rather than take on additional risk by investing in large long-term bets that may not work out, it’s better to double down on or reinvest in things that have proven successful based on experience. It sounds counterintuitive, but boosting spending can result in long-term success. A report from Analytic Partners noted that 60% of companies that increased their media spend during the last recession saw greater ROI compared with those that didn’t.

    To guide decision-making in uncertain times, my advice is to lean in. Study market and economic updates as a critical data set. One-third of my reading material these days is economic reports from advisors, geopolitical sources, economists, bankers and investor groups. The great news is that many of these materials are available to you for free, and when you and your executive team make it a shared responsibility to dig into the macroeconomics, you’ll have valuable data inputs to guide decision-making around what moves to make or what to change.

    A word of caution here, though: It’s critical that you don’t rely solely on data, or you may risk losing sight of the human element of leadership and decision-making. By merely focusing on the performance metrics and ignoring this vital human feedback, you could risk losing customer trust and satisfaction, which could ultimately impact your bottom line. Therefore, it’s essential to balance data-driven insights with an empathetic, human-centered approach.

    Don’t copy, but learn from predecessors

    Economic highs and lows are cyclical. When you take the time to build a durable model with intention and long-lead planning, there’s likely someone who’s a decade ahead of you who has seen and ridden similar waves. The goal is to study their moves. You may not build a replicate of Microsoft, Google or Atlassian because you don’t have their specific viewpoints or ability to repeat their success verbatim, but their experience provides an incredible opportunity to learn from their successes and failures, patterns and anti-patterns while discovering the things you’d like to emulate. As a tip, I recommend getting in touch with your peer groups at these companies to speak with them directly, ask questions and study their journey with firsthand information.

    5 patterns of successful long-standing businesses

    While your long game is unique to you and your business, there are five common patterns that successful multi-generational businesses follow:

    1. Building community

    Successful businesses that have been around for a long time, that have reinvented themselves and grown along the way, have built a community economy around themselves. These are philanthropic giving communities, user group communities and company communities. Microsoft, Atlassian, Salesforce -— these are all companies that have successfully built a community economy, and it has paid off for them in the long term. What they all have in common is that they are using the community to win the hearts and minds of people to wrap their business model around.

    2. Giving back

    The new DNA of a durable business is one that does good and in doing good, drives profit. In fact, a study from Harvard Business Review found that nearly 60% of businesses that had a strong and clear purpose that laddered back to supporting the broader community experienced 10% or more growth during a three-year period. But keep in mind this isn’t just about having a Corporate Social Responsibility (CSR) program and charter. Successful businesses go out and act with impact. They build this into their business model and start giving back from day one; donating their profits, product, equity and employee time. They do it for a long period of time, not seasonally or to make a statement. Companies can and should orient around giving back as a key factor in positioning for long-term success.

    3. Establishing a partnership economy

    Durable businesses look to find as many companies — small, medium and large — that will consider their business as a long-term viable partner. These partners can grow around, within and from you. Partners can take you deep into other verticals, help expand your Total Addressable Market (TAM), and even translate your documentation into local languages, making your offerings more accessible. This may mean reselling your goods and services, integrating their offerings with yours and/or building practice areas around you with education, installation and configuration, workshops and more.

    Leaders should always ask, “How well does this partner fit our culture?” and “What value does this partner bring to the organization?” Listen for answers that address how the partnership will support your long-term vision. You want to be sure that you can see yourself working and growing with them for the next 5-10 years. Misalignment, if overlooked, can be an expensive misstep in your journey towards growth.

    Related: 4 Ways To Sustain A Recession-Proof Business

    4. Building a jobs economy

    Successful long-standing businesses, like Microsoft, Atlassian, Oracle and Salesforce, have built a jobs economy around their products by offering product certifications to end users. For users, being certified in Atlassian means that your odds increase of getting another job that uses the Atlassian product stack. The skill becomes an advantage for career paths, and the likelihood increases that a new job for a past user will translate to a repeat sale of your products.

    5. Growing a marketplace economy

    Today, app marketplaces are a thriving ecosystem of software solutions. More than half of the top 100 SaaS platforms have them. Marketplaces have become the cornerstone of success for both SaaS platforms and their marketplace vendors. The marketplace enables SaaS platforms to extend their R&D capabilities through marketplace vendors who offer innovative extensions that help customers do more with the platform. App providers are able to compete with each other to deliver solutions to enhance the platform’s capabilities for the wide variety of knowledge workers using the platform.

    It’s important to acknowledge these patterns of success at a time when not a single business today can say that they are completely insulated from current macro and micro economic conditions. Getting back to the gameplay theme, durability is the power-up that helps long-standing businesses advance to the next level. Microsoft, for example, has seen three down economic cycles over three decades in its history. Atlassian has seen two. They all leverage extra capacity and output through the economies mentioned above to help them pull through, innovate and reinvent.

    At a minimum, leaders must study economic data (and history), hone their sights and suppress selfish decision-making that trades short-term results for long-term business longevity. Yes, time and vision are your allies, but stay nimble. Just like your gameplay character, sometimes your next move will surprise you.

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    Randall Ward

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  • Free Webinar | October 24: Grow Your Local Business With These Low-Cost Marketing Tricks | Entrepreneur

    Free Webinar | October 24: Grow Your Local Business With These Low-Cost Marketing Tricks | Entrepreneur

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    Small businesses often have small marketing budgets — but that shouldn’t hold back your marketing efforts!! Join us for an exclusive webinar led by Yelp’s small business expert, Emily Washcovick.

    In this session, you’ll learn how to reach your audience on a shoestring — by harnessing the power of local culture, trends, and events.

    During this webinar, Emily will share:

    • The art of localized marketing and how to tap into culture, trends, and local events for maximum impact.

    • Strategies to leverage even the smallest local events, to connect with your audience and boost your business.

    • How to seize opportunities during nationwide events that also have a local component, effectively crowd-sourcing customers for your business.

    • Real-world examples of successful localized marketing.

    • Insights from Yelp’s recent coverage of the impact of the “Beyonce bump,” and how local businesses can thrive off of large events.

    Don’t miss this chance to learn from Yelp and gain the knowledge and strategies you need to master localized marketing. Whether you’re a small business owner, marketer, or entrepreneur, this webinar will equip you with the tools to connect with your community, boost engagement, and drive revenue. Join us on October 24th at 3:00 PM ET and elevate your business’s local marketing game to the next level!

    Register now to secure your spot!

    About the Speaker:

    As Yelp’s Small Business Expert, Emily Washcovick is meticulously focused on helping local business owners succeed and grow. Her expertise lies in customer engagement, reputation management, and all things digital marketing. Through speaking engagements and thought leadership, Emily shares industry insights that entrepreneurs in any business category can leverage for the growth and well-being of their businesses. She is also the host of Behind the Review, a podcast from Yelp and Entrepreneur Media, where each episode features conversations with a business owner and a reviewer about the story and lessons behind their interactions.

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    Entrepreneur Staff

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  • 3 Investments That Will Transform Your Small Business | Entrepreneur

    3 Investments That Will Transform Your Small Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    I’ve been fortunate to spend more than a decade of my career serving the small business industry. One thing that I’ve seen consistently over the years — whether it’s a brick-and-mortar restaurant in Missouri, an ecommerce business based in Virginia or a hair salon in Texas — is that in order for a small business to grow and thrive, owners must invest strategically in tools and technologies to help them succeed.

    This extends beyond simply going online to order a laptop for all your business dealings or setting up a company website — although those are good places to start! The right tools can help power a business, taking it to the next level of growth while making the owner’s life easier and more manageable.

    Here are three areas business owners should consider investing in that can help transform their operations and catapult their growth.

    Related: A Small Business Owner’s Guide to Managing Funds and Investments

    1. Unlocking the power of AI and automation

    Artificial intelligence is the hot, new buzzword — the technology trend that’s generating the most excitement around its potential use cases, particularly as more and more people experiment with generative AI like ChatGPT.

    For business owners who are strapped for time, the opportunity to automate tedious and time-consuming tasks is extremely appealing. In fact, according to a recent survey we did, almost all small business owners are eager to automate operational tasks with the help of AI: from expense management (69%), to invoicing (68%) and completing payroll (51%). They look forward to offloading some of these monotonous but important tasks to technology solutions.

    I recommend evaluating key areas of your business operations that are critical to your cash flow, for example, monthly invoicing. Finding ways to improve efficiency by automating repetitive tasks will help save time and money every month, compounding the overall benefit.

    The impact of the potential time savings from AI is huge, with 43% of business owners saying they’d use the time to develop customer relationships and 36% would develop more products and services with the extra time. The true power of AI is it creates the capacity to focus on building relationships, creating new offerings and innovating — areas where the human touch is still essential to success.

    2. Managing the employee experience

    Another area where technology can make a huge difference is the complicated process of onboarding, managing and paying employees. Personal relationships between a business owner and employees are of course crucial, but by investing in a human capital management (HCM) software solution upfront, business owners can greatly simplify some routine tasks.

    Calculating payroll for hourly workers, managing schedules and deducting appropriate taxes are all things HCM solutions can effectively take off a business owner’s plate. This results in significant time savings (similar to the monthly invoicing example above, these are tasks that repeat consistently, compounding the overall benefit). It also ensures greater peace of mind as tax compliance is an area that many business owners struggle to navigate with confidence. Finally, it helps employees, as it provides greater transparency and accessibility to paystubs and other important financial documents.

    Related: Three Reasons Why It’s Never Too Early to Invest in HR

    3. Reach new and existing customers with breakthrough marketing

    According to our recent survey, half of small business owners agree that customer retention is among the most important business metrics for judging the success of a business. Businesses need customers to buy their products and services, but 20% of businesses said acquiring customers is the biggest obstacle inhibiting their growth, second only to the rising cost of inflation.

    Automation tools can help with both of these challenges by making it faster and more efficient to manage your company email and social media marketing. Whether it’s leveraging an email marketing solution to reach new and existing customers or experimenting with paid ads on social media platforms, more and more companies are taking the guesswork out of marketing for business owners so they can better target, reach and communicate with their intended audiences. Now businesses can leverage the templates, insights and best practices that are available to them via these platforms rather than reinventing the wheel with every ad or email blast. Additionally, the metrics and insights provided on the backend can help businesses to test and learn, seeing what resonates with their audiences and truly moves the needle.

    Our survey found that four in five small business owners plan to invest in digital tools this year. That’s great news for all of us who love and support small businesses, as it will undoubtedly help many companies continue to grow and reach new goals. For any entrepreneurs ready to invest in their brand’s future but unsure where to start, I recommend exploring the capabilities of AI and automation and how tools can help streamline the employee management experience, customer communication and marketing. With the help of technology and tools, the sky is truly the limit for small businesses everywhere.

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    Rich Rao

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  • Why the Most Successful Entrepreneurs Don’t Do It Alone | Entrepreneur

    Why the Most Successful Entrepreneurs Don’t Do It Alone | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Over the last several months, I have been deeply immersed in the Goldman Sachs 10k Small Businesses (10KSB) accelerator program. In partnership with Babson College, Goldman Sachs developed an in-depth curriculum that requires small business owners, or “scholars,” as we are called during the program, to take a deep look at each aspect of our businesses and our leadership styles.

    Goldman Sachs developed this program with the belief that small businesses are the economic engine of the American economy and that the stronger those businesses are, the stronger and more resilient the American economy will be. This is particularly important today as we face tremendous economic uncertainty.

    The program curriculum was demanding and required a significant time commitment. The result was a 70-page, comprehensive business plan. The business plan was tangible evidence that my fellow scholars and I completed the program and dug into the guts of our business. We each identified a “Growth Opportunity” and created a detailed plan to capture that opportunity.

    Related: Going Alone in Business? 5 Reasons That’s a Really Bad Idea.

    But to be clear, the plan was not strictly the result of the program curriculum. It was also the result of the invaluable network of hundreds of small businesses from every state in the union in my Goldman Sachs cohort and the alumni of over 13,000 small business owners that now make up my community.

    As I sit at my computer today and pour through my company’s daily, weekly, and monthly financial reports, it is increasingly evident that I cannot do this alone. Like business leaders everywhere, I am concerned about the realities of the economy, the supply chain, access to capital and all the myriad factors that affect my business, which I have no control over. The one fact that is crystal clear to me is that, as small business owners, we need to join forces.

    There is power in numbers. Small businesses are successful when we work together and take advantage of each other’s strengths. Diverting focus from our core business to spend time on our own every internal business process is costly and wastes time. This point was stressed time and time again over the nine months I was in the program.

    If marketing isn’t your core business, find and hire a small business specializing in the marketing type you need to get the message out to your customers. Hire those services you need from another small business so that you can focus. If distribution isn’t your core business, find and hire a business that specializes in logistics. And the list goes on and on. If we are intentional about looking for other small businesses to provide the services we need so we can focus, we can find virtually anything.

    Related: Follow Your Entrepreneurship Path But Don’t Do It Alone

    Spending money is one of the most terrifying things for a small business owner. Like many of you, I look at the bank account and think I can’t afford to hire an outside service to do this. I will do it myself and save money. Here is the rub, how much time and effort am I wasting learning something new? What is my time worth? What if I could spend my time focused on what I do best, on my core business competency? Would that pay for the additional cost of a service?

    I have been forced to take a tough look at my business in a new way. It is not that I suddenly realized that I had better cash flow and could outsource things. I didn’t, and I can’t. But it costs money and lost opportunity when my key employees or I spend time on things that don’t fall within our immediate business and enhance our offerings.

    I will give you a perfect example. I have years of experience in marketing, but marketing is not my core business today. I lead an ecommerce platform for women-owned businesses. The last thing I thought I needed to spend money on was marketing. I have done it for years and know how to identify my target audience and what channels to use to reach them. I have actively resisted my team’s push to hire marketing services. What I didn’t factor in is how much time my co-founder and I spent on marketing execution rather than focusing on building our sales platform.

    Related: Entrepreneurs, You Can’t Handle Everything at Your Startup

    My core business is NOT marketing execution, so why do we have one of the most valuable members of the team spending hours a week focused on it? We need to find a small business whose specific business is marketing execution for direct-to-consumer companies like mine and hire them. I am confident that freeing my co-founder up to focus on building our core offering will enable us to pay for the cost of the outsourced marketing execution.

    The bottom line is that, as small business owners, we can’t do it alone. As the uncertainty in the economy continues, capital is harder to access, and consumers reduce spending, the best thing I can do is surround my business with experts focused on how to grow and invest back into our communities.

    Small businesses have long been the American economy’s growth engine; for this to continue, we need to fuel economic stability and growth by investing and supporting one another. I am fortunate to have been able to participate in an accelerator program that jump-started my network. But there are many places where small businesses can and should connect. Your local Chamber of Commerce is a great resource, as is the Small Business Administration and industry affinity groups with chapters nationwide.

    We can’t do it on our own! And the good news is we don’t have to. Find a hire a small business expert so you can focus on your core business and grow!

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    Kate Isler

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  • The Growing Trend of Personal Injury Impacts on Small Business | Entrepreneur

    The Growing Trend of Personal Injury Impacts on Small Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The personal injury industry is worth roughly $53.1 billion as of 2022. The majority of these claims fall under motor vehicle accident claims or medical malpractice.

    With more than 64,000 personal injury law firms in the United States, it’s an increasing reality that small business owners will face a claim against them or their insurance provider over the years.

    Although a car accident claim may not be directly relevant to all small business owners, other types of personal injury claims are. More relevant claims would likely involve product liability or a workplace accident lawsuit.

    For small businesses to grow, businesses to incorporate more services and offer their expertise to more people. But as business owners increase their reach, many will eventually encounter a situation involving a personal injury claim.

    Personal injury claims are among the most common types of lawsuits filed. For example, in 2020, personal injury/product liability increased by 97% over the previous year.

    Related: 7 Workplace Injuries That Can Put You Out of Business

    Suppose someone is injured while on your property or by one of your products; you and or your insurance provider may be in a position to be held liable for the injury. But how could this have been avoided in the first place? Various factors play into establishing fault.

    Accidents and the unforeseen occur constantly. It’s critical, though, to think as critically as possible and prepare yourself and your staff for the possibility of this situation. Savvy small business owners will know to not only be ready for this possibility but assume it will happen eventually.

    Protect your team through adequate insurance coverage

    At a minimum, small business owners are recommended to carry commercial general liability insurance. This will help support your staff in case of an injury on your property. It goes in tandem with creating a safe work environment, which is also critical. Keep floors clean, walkways available, and doors are clearly marked. If you work with specialized equipment, ensure all staff members are trained and certified to use said equipment.

    Be up to date on the law and keep an evolving record

    The rules that govern local small businesses include employment, environmental and product liability laws. Knowing the latest changes and amendments to these and related laws are essential, as they will impact your business operations. Keeping digital and printed records of all rules is recommended for quick accessibility and reference. Document everything if something occurs on your property leading to an accident, injury, or complaint. If you are sued or face a legal challenge, showing all your steps with written documentation can be hugely beneficial.

    Related: What Happens When Self-Driving Cars Crash? The Legal Ramifications of Automation

    Keep a written policy on customer service and be responsive to customer complaints

    To minimize confusion and help your staff interact with customers, display your customer service policy for any patrons visiting your establishment or office. This policy should include clear guidelines for an emergency involving an injured guest or staff member. If anyone is injured on your premises, request medical assistance immediately. Taking any injuries seriously in this situation is paramount.

    It may not be easy but keep a positive outlook

    It’s understandable to feel stressed when faced with injuries and a potential personal injury suit against you or your insurance policy. You should consult with an experienced legal counsel in these scenarios. Many personal injury lawyers often also provide defense litigation services. Talking with a legal expert who knows both sides of the personal injury coin can go a long way in helping to provide you relief in a stressful situation.

    Small business owners are expected to keep their products and property safe. This was what’s commonly referred to as the duty of care. Many personal injury claims will revolve around the legal claim that this duty was broken.

    Duty of care is typically defined as a base requirement that a person be attentive, exercise caution, and be mindful while in public. The small business owner and their patron/user are expected to follow this. A personal injury case could be possible if one party is found to have acted in a directly negligent fashion.

    Related: 5 Reasons Personal Injury Law Firms Are Thriving

    Defending yourself and your business from an accusation of negligence will be a significant deciding factor in the validity of the case. This is why thinking ahead is crucial to running a successful business. In addition, speaking to a trusted legal counsel on potential issues that could arise in connection with your business will help to minimize risk and protect all parties.

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    Hank Stout

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  • 5 Marketing Tactics Your Small Business Should Do This Year | Entrepreneur

    5 Marketing Tactics Your Small Business Should Do This Year | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    As your small business works through the first quarter, you may be looking at previous strategies and methods to see which were successful and which will be left in 2022.

    That’s how most businesses start the year off, right? However, this year, there are a few more unknowns. We’ve been warned that a recession is right around the corner. And while technically we may not be in one, a lot of businesses have felt the impact of sales slowing down and revenue taking a hit.

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    Jonathan Herrick

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  • 3 Key Trends that Can Signal Change | Entrepreneur

    3 Key Trends that Can Signal Change | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Entrepreneurs and small and medium-sized business (SMB) owners are typically lauded for their abilities to operate agile companies that flex and grow with changing market conditions, resulting in sustained business success. Whether during times of prosperity or adversity, they are often the trailblazers who forge a path into unknown territory and develop innovative products, services and solutions to swiftly address opportunities or issues, which help pave the way for longevity in the marketplace.

    Savvy leaders understand that operating based on the status quo is not an option but rather adhere to the mantra that change is vital to their existence and success. Due to their size, SMBs have a significant advantage with regard to embracing change because leaders often recognize positive/negative trends within their client base sooner, which typically become indicative of the global marketplace in general. This knowledge enables them to act quickly by making informed business decisions/adjustments to meet the current state of business.

    As entrepreneurs and SMB leaders continue to remain relevant, they should be aware of three key events that can signal a change to business operations — shifts in the economy, deviations in the competitive landscape and fluctuations in the labor market.

    Related: How Agility and Resiliency Help Small and Medium-Sized Businesses Succeed

    1. Economic conditions

    Tracking economic conditions is central to business operations because inflation, interest rates, tax rates, supply/demand, consumer confidence and more dictate numerous aspects of business operations – from product pricing and employee wages to advertising/marketing and company growth – impacting a company’s bottom line.

    When leaders keep economic conditions top of mind, they are better equipped to make informed decisions about increasing profits and reducing losses. For example, during good economic times, expanding product/service offerings, increasing pricing and bumping advertising/marketing budgets can help boost revenues. During a poor economy, a greater focus on controlling expenses, streamlining processes and seizing missed opportunities can help companies weather the storm.

    In both scenarios, people-focused business leaders realize that economic conditions significantly impact employees from a professional and personal perspective, so taking care of their people — a company’s most valuable asset — is paramount, including financial assistance/perks, clear communication, mental health/wellness programs and unwavering support. When employees are treated as valued members of a team, engagement and performance increase resulting in a positive effect on the bottom line.

    2. Competitive landscape

    While business leaders should always be aware of the competitive landscape and make decisions accordingly, there are certain situations that may justify changes to business operations that can be a differentiating factor in the marketplace. Companies can explore opportunities to invest in new programs, such as introducing a new product/service, developing brand ambassadors, forming strategic alliances, boosting industry-related technology and increasing customer service initiatives.

    If there are budget constraints, there are still ways for SMBs to make changes to help them stand out in the crowd, such as positioning themselves as thought leaders for editorial opportunities, speaking engagements at tradeshows and panel discussions facilitated by trade associations. Companies can also become more active on social media platforms to increase their influence in the marketplace. Volunteering in local communities is another way to not only give back, but also increase brand awareness and a company’s reputation.

    Significant changes in the competitive landscape can impact employees who may want to jump ship for perceived better opportunities. SMBS must create and nurture a company culture that encourages employee retention through training and development programs, mentoring programs and defined career paths. They should point out ways that SMBs not only feel like family, but also how they offer greater access to executive leadership and faster advancement opportunities with more responsibilities.

    Related: The Tech Landscape Has Changed and It’s Time Tech Leadership Change With It.

    3. Labor market

    Even before the ramifications created by the Great Resignation and/or the Great Reshuffle, SMBs were no strangers to the challenges of the labor market. Historically, they have competed with larger companies for top talent, but the still-tight labor market continues to add another degree of difficulty to attracting and retaining employees. According to the most recent report by the U.S. Bureau of Labor Statistics, the number of quits was just under 4 million in March.

    Although SMB leaders are conditioned to the challenges, it should inspire many companies to change their recruitment strategies to attract top talent. For example, implementing employee referral programs; using social media to reach qualified candidates; improving the process to treat applicants with respect; and offering internships that lead to permanent employees are ways to fill open positions.

    Of course, one of the best ways to address the labor market is to have a great culture that employees want to be a part of, resulting in increased employee retention and a pipeline of job seekers. When employees are taken care of from an individual and professional standpoint with programs that address health/wellness; financial perks; reskilling/upskilling; career paths within the company; and flexible/hybrid scheduling, it brings out the best in them and leads to a loyal, long-term workforce.

    As entrepreneurs and SMB leaders position their companies for the second half of 2023, they should evaluate their business operations to identify areas where change can be leveraged to address fluctuating market conditions for optimal results, further demonstrating their agility and resilience in the economy.

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    Steve Arizpe

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  • Free Webinar | May 16: How to Grow with Purpose | Entrepreneur

    Free Webinar | May 16: How to Grow with Purpose | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    How does a business grow successfully without losing its ideal mission, vision and values? In the next episode of our Leadership Lessons series, host Jason Nazar sits down with the CEO of a multinational supermarket chain synonymous with the words healthy, local and organic. As one of the youngest CEOs to ever lead a successful retailer, Jason Buechel oversees more than 100,000 Whole Foods Market employees across 546 stores in the U.S., Canada, and the U.K. He joined the Austin, Tex.-based chain in 2013 as Global VP and CIO where he was responsible for all aspects of IT and digital innovation, ushering in large-scale initiatives that played a critical role in the growth of the business. He later served as COO, providing operational leadership over the grocery chain’s 500-plus locations.

    In addition to sharing the biggest leadership lessons he’s learned from his impressive 15-year career, Buechel will dive into other topics including:

    Don’t miss out—register now!

    About The Speakers

    Jason Buechel serves as CEO of Whole Foods Market. He previously served as COO, providing operational leadership for over 546 locations across the U.S., Canada and the U.K., overseeing the company’s technology, supply chain and distribution, store real estate and design, and Team Member Services (HR) functions. He joined the company in 2013 as Global VP and CIO where he was responsible for all aspects of IT and digital innovation, as well as ushering in large-scale IT initiatives that played a critical role in the growth of the business. Prior to WFM, Jason served as Managing Director/Partner within Accenture’s Retail Operations Practice, where he worked with leading retailers on strategic business and technology transformation. Jason holds a B.A. from the University of Wisconsin-Milwaukee.

    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 Reasons Black Small Businesses Should Embrace Digital Transformation. | Entrepreneur

    3 Reasons Black Small Businesses Should Embrace Digital Transformation. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Small businesses are the backbone of our communities. They supply and care for our families, support economic growth and stability, and foster meaningful relationships with the people they serve. Nobody understands the value of small businesses more than those who live in communities that are most likely to experience disinvestment and neglect from corporate investors — which are disproportionately communities of color.

    These small businesses are also most often owned and operated by Black entrepreneurs and other entrepreneurs of color. Despite their value to their communities, racial inequities persist, and many Black-owned small businesses lack the financial resources necessary to grow and survive an economic crisis.

    Luckily, in today’s tech-driven economy, Black small business owners have new digital tools to help their businesses survive, thrive and stand out among corporate competitors. Here are three reasons Black small business leaders should meet this moment and embrace digital transformation.

    Related: 12 Steps That Could Help Your Small Business Start a Digital Transformation

    1. Improving agility

    Businesses that rely on foot traffic to reach clientele were hit hardest by pandemic-related shutdowns. The needs and interests of business leaders and their clients drastically changed, and those without the infrastructure to adapt to our new normal were at the greatest risk. As experts continue to signal that we’re nearing an economic recession, agility becomes increasingly necessary for the survival of small businesses.

    When small business leaders adopt digital tools and infrastructure, it allows them to shift quickly to ensure they can continue providing services to their customers. Whether through eCommerce websites or social media campaigns, digital adoption can help small businesses stay afloat amid global economic disruption. If business leaders start planning and implementing digital strategies now, they will be better prepared to meet whatever challenges they face next.

    Related: Digital Transformation Means Adopting a New Culture: Here’s How To Do It

    2. Expanding customer base

    One of the many reasons Black-owned businesses struggled to survive amid the pandemic was due to the direct economic impact it had on the people they serve. Many Black-owned businesses operate in predominantly Black communities, which are disproportionately affected by job loss and illness spurred by COVID-19 because of economic and healthcare disparities.

    Business leaders have to seek new ways to expand their customer base. Digitizing operations can open new markets for small businesses to explore, which generates more significant growth opportunities. Through online advertising, cloud computing and mobile commerce, small business leaders can extend their reach beyond local communities and into national or global markets. This will not only advance the success of small businesses but also ensure they are still around to serve their communities well after an economic crisis hits.

    Related: The Ultimate Guide to Competitive Research for Small Businesses

    3. Leveling the playing field

    Corporate competitors routinely receive more investment than small businesses, which means they have the resources to position themselves as better service providers. Small business leaders can stand out among corporate competition when investing in digital tools. These tools offer a more efficient means for handling inventory management, data analysis and marketing automation — resulting in faster turnaround times and better decision-making processes.

    Small businesses, especially Black-owned ones, often lack the financial capital and investments needed to innovate and keep up with their larger competitors. The good news is there is support for small business leaders, especially those who are shut out of financial opportunities due to pre-existing racial inequities.

    One of the groups I work with, the Small Business Digital Alliance (SBDA), connects small business owners with digital tools, training, and other opportunities to reach new customers by expanding their digital networks. Services and resources provided by the SBDA can help small businesses adopt digital strategies to grow and sustain their businesses – and they are free of charge to those within the network. This can help small businesses better understand the needs of their customers and quickly fulfill their expectations. By investing in digital solutions, small businesses can level the playing field and put themselves on equal footing with larger corporations.

    There is no way to predict an economic crisis’s impact on our businesses, but we can take steps to prepare and mitigate risks. Beyond business survival, going digital offers many advantages for Black small business leaders who want to stay competitive in an increasingly tech-driven landscape.

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    Jimmy Newson

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  • How Small Businesses Can Beat the Big Companies to Top Talent

    How Small Businesses Can Beat the Big Companies to Top Talent

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    Opinions expressed by Entrepreneur contributors are their own.

    Finding the perfect job candidate can take a lot of work for a small business or startup. With the current competitive market, small businesses find it harder to attract top talent than larger, more established companies. In a survey of small business owners by NFIB Research Foundation, 44% of respondents said that they had few or no qualified applicants for open jobs.

    Small businesses might struggle to find top talent for plenty of reasons, such as increased competition, social media inactivity or failure to connect with recruits on a personal level. If you want to attract top employees, your company must have a clear and unique identity and be able to demonstrate its differentiators and core values.

    Here’s how savvy small business owners can start being strategic about attracting qualified employees.

    Related: How Small-Business Leaders Can Recruit Like the World’s Top Companies

    1. Focus on flexibility

    People care deeply about flexibility at work. The ADP Research Institute conducted a survey that found 67% of employees feel more empowered to work in flexible arrangements since the start of the pandemic. Successful companies, including American Express, the largest credit card company in the U.S., have followed this advice by offering flexible hours, working arrangements and contracts.

    Consider being flexible with policies and practices that affect work-life balance. This approach demonstrates that you care about your employees’ overall well-being and helps attract talent who might not have predictable schedules or work arrangements.

    2. Foster a community

    Creating a sense of connection is crucial for small businesses that want to attract competitive talent. An ideal workplace is built on a shared purpose, mutual trust and care for the community around it. It’s not just about the money for employees; it’s about finding fulfillment in their work and enriching their lives.

    One way to set yourself apart when building your community is to look to the local, larger community at hand. Small businesses are known for fortifying communities all over the country, connecting people through shared experiences and helping regional economies thrive. By creating a sense of community within your business that’s connected to the one outside of it, you capitalize on local talent while providing a fulfilling work environment that retains employees.

    Related: 4 Ways to Level the Playing Field of Small Business Recruitment

    3. Make a good first impression

    Small business teams might find it hard to set aside the time necessary to write detailed job descriptions because of the pressure to complete other tasks. However, the first step in attracting skilled workers that fit your precise needs is writing an accurate job description. A job posting, description included, is often the first impression a new job seeker has of your business. So, make it a good one.

    Not only does an effective job description include a list of required skills and expectations for the role, but it also gives the reader an insight into your company culture. Do you care about work-life balance? Is your compensation competitive, and does it include the preferred benefits? Do you understand the nuances of employees’ lives? A good job description will communicate those answers when crafted with the seeker in mind.

    4. Nurture company culture

    A company’s culture establishes expectations for how employees interact and collaborate. Whether you build your culture through concrete practices or relaxed camaraderie, a strong company ethos can serve as a way to break down the barriers between teams that are siloed and provide guidance for decision-makers.

    Warby Parker is a great example of building a solid company culture that retains employees. The whole team is involved in a new employee’s onboarding and training, fostering stronger relationships and increasing a new hire’s sense of belonging and support.

    For a small business, even little things such as flex time, a casual dress code or pet-friendly offices can impact staff morale and loyalty. Creating the right company culture will help spread the word about your business and why top talent should want to work for you.

    Related: How Small-Business Owners Can Build a Strong Corporate Culture

    5. Offer real benefits

    Although there is no federal law mandating that small businesses (i.e. those with 50 or fewer employees) offer health insurance or paid leave, regulations on employee benefits can vary from state to state. Plus, creating a more comprehensive benefits package is a great way to attract the best workers. Employee benefits improve your worker’s productivity, health, well-being and job satisfaction.

    Almost half of the employees surveyed by SHRM said that health insurance was either the top deciding factor or a positive influence when choosing their current job. What’s more, 29% of employees said that their overall benefits package was a significant factor when deciding to look for work elsewhere. Benefits matter to your employees, so they should matter to you.

    6. Consider hiring remote workers and freelancers

    A small business can employ forward-thinking strategies faster and more responsively than most established enterprises. Keep an open mind when looking for a “specific” kind of employee: independent contractors and remote workers are becoming more common these days.

    Many skilled and talented people are available for hire as freelancers or contract workers. Even among traditional employees, it is important to consider allowing people to work from home as more people expect this option from employers. Remote work can be one of the key benefits of working at a small company.

    Related: 3 Powerful Techniques to Effectively Manage Your Remote Team

    7. Drive home what makes a small company unique

    A great advantage for small businesses is the ability to respond to creativity with agility. Big companies can be hesitant to make significant changes, but small businesses can take bigger risks while affecting fewer people. This can make employees and job seekers more excited to work for your business. According to Gallup, when a worker perceives their company as agile, they’re likelier to believe that the organization is a good fit for customers, ahead of competitors, financially secure and prosperous.

    The ability to be agile encourages new ideas and helps businesses adapt to new innovative solutions quickly. A company’s ability to quickly and effectively adapt to its changing needs is key to its success, especially when adding new employees to the mix.

    It’s more critical than ever to find the right people with the right skills for the job. So, you need a solid small business recruitment strategy when seeking new talent. A group of skilled and enthusiastic employees will flock to a company that appreciates and nurtures their talents. In return, they’ll bring new skills and energy to your business and ensure you can compete in today’s market.

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    Sarah Mayer

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  • 3 Recession-Proof Strategies for Small Business Owners

    3 Recession-Proof Strategies for Small Business Owners

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    Opinions expressed by Entrepreneur contributors are their own.

    Unless you’ve been hiding under a rock, you’ve probably read the dreary forecasts from JPMorgan, Citi and Goldman Sachs, which all agree that 2023 will be a rough year for the economy, perhaps even kicking off a “mild recession.”

    But try as they might with their recession talk on the heels of a global pandemic, supply chain chaos and market upheaval, we resilient entrepreneurs aren’t ready to throw in the towel quite yet.

    Small business owners’ most significant advantage is our ability to stay nimble and pivot toward opportunity. I say this as someone who built and exited a company after the last recession — when many founders rode a wave of “creative destruction” where smaller competitors thrived as big firms faltered. The little people, not the corporate behemoths, were best positioned to pick up the pieces and innovate.

    To see how others feel about this moment, Hello Alice surveyed 2,635 small business owners to gauge their sentiment heading into the new year. The findings, published in partnership with Mastercard, show that while nearly two-thirds of entrepreneurs are worried about a potential recession, an astounding 73% predict their businesses will grow this year.

    If that sounds counterintuitive, I agree. But a closer look at the results illustrates how scrappy entrepreneurs can be in the face of adversity. Rather than wait and see what happens, owners are already crafting action plans and seeking solutions to prepare them for the challenges ahead.

    Based on our survey results, here are three strategies for small business owners hoping to beat the 2023 trendlines.

    Related: 7 Recession-Proof Industries to Protect Your Money

    1) Make sure you have access to working capital now

    In uncertain times, small business owners need additional funding, particularly those mainly relying on bootstrapping.

    Why? Here are a few findings to set the scene:

    • 66% of owners said their expenses increased in 2022
    • 70% said their revenue stalled or decreased in 2022
    • 70% plan to apply for funding in 2023

    So far, entrepreneurs have successfully combatted inflation with price increases and adjustments to product offerings. Nearly two-thirds of owners said their business ended 2022 in a financial position as good or better than the year before. But the convergence of expenses and revenue tells a story of shrinking margins squeezed by inflated costs. You can’t raise prices forever, and events like a recession are certain to upend sales forecasts.

    Consider the following options to ensure you have ample working capital to overcome any financial surprises:

    • Develop a relationship with your bank. Lay the groundwork now, and you’ll have a friendly face to help you navigate available resources and facilitate potential financing applications.
    • Seek out a business credit card. Credit cards help you cover unexpected expenses and pursue new opportunities, often while earning valuable rewards that you can reinvest in your business.
    • Visit the Small Business Funding Center. This free resource matches you with relevant grants, loans, and credit opportunities.

    Related: How to Know If You Need Funding (and How to Get It)

    2) Get scrappy with tech solutions

    In our outlook survey, businesses ranked marketing among their top concerns. Owners are worried that price increases will reduce their overall customers, and the end of budget-friendly digital marketing makes customer acquisition more difficult (and expensive) than ever.

    Thankfully, a growing range of tech solutions can help owners optimize their marketing efforts while fitting into any budget. Here are a few ideas to get started:

    • Adopt software tools. Platforms like Constant Contact, Hubspot Marketing Hub and Sprout Social help you target your audience and amplify your reach.
    • Explore freelance help. Resources like Fiverr, Upwork, and MarketerHire can match you with affordable digital marketing support to take the work off your plate.
    • Look for discounts. Take advantage of introductory offers and seasonal discounts to test-drive tools before making a long-term commitment. Not sure where to look? The Hello Alice Business Solutions Center is one free resource that curates deals on popular software solutions to help owners shop and save.

    3) Be ready to fail fast and fail often

    Finally, in a reassuring sign that owners feel confident, a majority of small businesses plan to hire this year. According to our survey, twice as many business owners plan to hire in 2023 (52%) as were actively hiring in 2022 (26%). Growing headcounts are a proxy for growing businesses, but there’s still an inherent danger to making big changes, especially during uncertain times.

    Instead, operate with a startup mentality that sets up low-stakes experiments to explore an idea’s potential. Rather than dump your marketing budget into TikTok, test the waters with different types of content. Before bringing someone on full-time, trial them on a part-time or project basis. Set goals, measure outcomes, and assess where to go from there.

    Some of your 2023 experiments are sure to fail, but this innovative mindset helps you conserve valuable resources to invest in long-term growth in the years to come. And remember, the economy may flounder for a bit, but as entrepreneurs, times of uncertainty are when we thrive.

    Related: By Failing to Prepare, You Are Indeed Preparing to Fail

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    Carolyn Rodz

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  • 4 Things All Small Business Owners Should Know in 2023

    4 Things All Small Business Owners Should Know in 2023

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    Opinions expressed by Entrepreneur contributors are their own.

    The beginning of a new year often comes with a laundry list of goals and to-dos, which can quickly become overwhelming if you try to tackle too much, too fast. I’ve always approached resolutions by setting short and long-term goals spanning the entirety of the year — after all, we have 12 months to accomplish our goals, and there’s a reason they’re not called January Resolutions.

    Now is an important time for business owners to reflect and set a course for the year ahead, but it’s easier than ever to get bogged down worrying about the challenges facing the economy.

    I would encourage all small business owners to tackle 2023 with a splash of empathy and realism. Don’t bury your head in the sand — be mindful of the economic headwinds we’re facing, but don’t let them monopolize your attention. Instead, devote your time and energy to the challenges and operations that do fall within your control.

    Here are four trends shaping the small business landscape to be aware of — and take advantage of — as you implement your plans throughout the year:

    Related: 4 Success Tips From Small Businesses That Are Doing It Right

    1. The big picture: Business owners are prioritizing marketing and hiring amid recession concerns

    We conducted a national survey of business owners late last year, which found 78% expect a recession would impact their business initiatives. Despite this, business owners are actively investing in their businesses, with a priority on marketing and promotion, hiring and increasing wages and investing in new equipment and technologies.

    The best defense against customers tightening their wallets is a proactive offense. If your marketing efforts could use a refresh, consider these best practices:

    1. Keep it simple: A streamlined strategy that ladders up to your overall business goals will help keep you on the path to success.

    2. Identify your target audience: Begin with your end goal in mind. With whom are you communicating and what are you trying to tell them?

    3. Choose the right platform: Once you know where to find your audience, you’re ready to pick your preferred marketing channel(s). When kicking off, I’d recommend focusing more heavily on one or two specific marketing channels, at least at first.

    4. Measure your success: In the age of social media, marketing is no longer a one-way street. A successful marketing campaign is now a multi-platform, multi-interactional way to engage with your customers. Set your goals and KPIs early, and examine and reevaluate them often to see if your message is resonating with your target audience.

    2. Don’t get left behind on the latest business technology

    Over the past few years, small businesses have widely adopted new technology to make their operations and customers’ lives easier. At this point, incorporating the latest tech is no longer a nice-to-have — it’s essential to the future of your business. Even in the face of a potential recession, 68% of business owners plan to upgrade or incorporate new technology this year.

    Implementing new tech and services has the potential to be confusing, if not downright intimidating, for many of us. If you’re looking to integrate new tech but don’t know where to start, here’s what you might consider prioritizing this year:

    1. Investing in an automated payroll or people management (HR) platform to reduce complexities and streamline operational costs.

    2. Accepting new forms of cashless or peer-to-peer (P2P) payments, such as Zelle, at your business’ point of sale.

    3. Modernizing your customer relationship management (CRM) system with enhanced omnichannel capabilities that can communicate with your customers, regardless of whatever platform they might be on.

    4. Enhance your cybersecurity measures to protect yourself against hackers and the latest cyber threats. Unfortunately, small businesses are becoming increasingly popular targets for hackers and scammers.

    Related: 3 Things to Consider Before Investing in New Technology for Your Small Business

    3. Business owners are taking advantage of free educational resources

    It’s never too late to learn. Free educational resources for business owners have greatly improved and proliferated over the past few years, and many entrepreneurs (at various stages of their business journey) are seeking them out. Last year, we learned that the majority of business owners wish they were more knowledgeable about business finances — including 75% of women business owners — so if you’re looking for tips, here are some resources you can consider:

    • Educational resources like SCORE and Bank of America’s Small Business Resources site provide answers to many common questions and are great to keep handy.

    • If you’re interested in pursuing more formal education, organizations like LinkedIn and the SBA have online learning platforms. Bank of America also offers a free online program for women to earn a certificate in business from Cornell.

    • Your local small business banker can also be a key asset to your success and make your life much easier.

    4. Business ownership can be lonely — don’t go it alone

    Starting the new year with the weight of running your business on your shoulders can be beyond stressful. If only one piece of advice from this article sticks with you, I hope it’s this: Find someone to talk to who has been there before.

    Explore organizations like the National Association of Women Business Owners (NAWBO), Luminary, your local Small Business Chamber of Commerce, Entrepreneurs’ Organization, Business Networking International or similar groups. The return of in-person networking events has also created opportunities to meet other local entrepreneurs and collaborate with mentors who can support you along your journey as an independent business owner. Less formal ways of networking such as LinkedIn groups or coffee/drinks with like-minded individuals can be equally beneficial.

    Prioritize building relationships with people and communities you trust, and you’ll reap the benefits for years to come.

    Setting out to accomplish all of the goals you’re dreaming of for the year can be daunting, but by adding the above tips to your game plan, you are actively positioning your business for continued success in 2023 and beyond.

    Related: 7 Networking Groups Every Small Business Owner Should Join

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    Sharon Miller

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  • Give Your Employees The 3-Point Strategy They Need To Drive Sales

    Give Your Employees The 3-Point Strategy They Need To Drive Sales

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s your employees’ job to motivate buyers, but employees similarly need the right tools to succeed. In today’s competitive environment, a well-written value proposition fills that need.

    What is your value proposition?

    A value proposition isn’t just useless information about your company, products or services. It’s a statement about what outcomes a person or group can expect when working with your company.

    A company’s value proposition is at the core of its business model. It’s a promise the organization makes to its customers regarding the value of its products and/or services. A value proposition should be simple, but powerful and clear. A compelling value proposition strategically examines the factors that influence customer focus, and overall business ambition and sets expectations. It serves both your customers and employees by setting up their expectations. Guiding employees by setting these expectations help ensure they understand your company’s standards and gives them something substantial to aspire to in regard to product quality, service, etc.

    Your value proposition guides your strategy

    A value proposition is a critical component of your strategy rather than just a feature of your marketing plan. It should provide three critical benefits:

    • Functional benefits: This is how your product performs. These benefits tie your offer to the outcome the customer wants.
    • Product attribute benefits: This is what makes your product stand out. These benefits provide a credible point for comparing your offer to competitors’ offers.
    • Personal benefits: These benefits account for emotional connections tied to the purchase decision.

    The most successful value propositions will offer the customer all three types of benefits at once. It is a promise that you plan to offer the buyer a positive experience with a great product or service. It convinces the buyer your product is the best choice for them and appropriately capitalizes on how the buyer feels. For employees, an effective value proposition gives them a better sense of what marketing strategies will be most effective.

    Related: How To Create A High-Performing Strategic Plan

    A strategy with real benefits

    Value propositions examine factors that influence a range of areas, such as customer focus or overall business ambition. So rather than seeing them as a feature of your marketing plan, develop the value proposition as a strategic core for all your operational models (e.g., decision-making, finances and resource prioritization).

    Once you have a clear operational strategy based on your value proposition, it will provide direction for all the interactions your employees have with your customers. It tells your sales representatives exactly who the target market is, what that audience wants to get or achieve and what’s most important for the audience to know about your product or service.

    With this clarity, the sales team can become more efficient and productive. They can reduce operating costs, all while improving customer engagement, segment reach, customer retention, market share, revenue, net profit and market share.

    Take my company, for example. I’m the chief marketing officer (CMO) of an investment management company that has made our value proposition a part of our deeper strategy. Our team recognized most organizations handling exchange-traded funds (ETFs) focus on beating a single financial index. However, we acknowledge that investors have specific, long-term goals and want investment solutions based on those unique objectives. We allow those goals to drive the development of all our products. The approach simultaneously meets investor needs and serves as a differentiator.

    Related: Want to Increase Sales? Think Deeper About What You’re Really Selling

    Determining the need to pivot

    Even when employees have a clear value proposition to offer customers, they’ll only be successful if that value proposition is still in line with current markets. Put your value proposition into context by looking at what’s happening outside your business. Is your industry — or an adjacent one — experiencing big changes? If so, you’ll likely have little choice but to pivot and transform.

    But what does transformation look like? You will either expand your value proposition or create a new one. Most companies will rationally expand their proposition until they have evidence that maintaining their core strategy is no longer safe. If you’re in an industry where digital disruption isn’t immediately emerging, you could probably get away with maintaining your tech infrastructure. If your industry is already adopting new digital options, simply optimizing your work might not be enough.

    Whether expanding your value proposition or starting from scratch, your employees need to understand your changes’ intent and practical application. The more they understand these elements, the easier it will be for them to commit to the shifts in an authentic way that improves customer trust.

    A must-have formula

    Whether you’re drawing up a new strategy or tweaking your current one, the key is to define your position based on the target segment you want to dominate and the value proposition you intend to dominate it with. The following formula can help you establish clarity:

    • Our product is for [target customers; functional] who want to [alternative to the norm or current options; functional].
    • Our product provides [key problem-solving capability; functional] that offers [product attributes; product], allowing you to [key product features; personal].

    A completed version of the formula might read: “Our product is for new parents who want to better understand their baby’s emotional wellbeing. Our product provides AI-based emotional tracking for infants that offers biofeedback analytics, calendar graphing and predictive alerts, allowing you to use a customized dashboard to respond and bond more deeply with your little one.”

    Then, you’ll need to differentiate their value proposition from others to stand out. Find ways to demonstrate that your brand offers something competitors do not. Or, explain how the service or product fulfills a need no other company can.

    Strong value propositions build strong business

    In today’s competitive environment, you have to give your employees the tools that can drive customers to take action. And a well-written value proposition can do that. It does more than just serve as a marketing hook. It directs the business and provides strategic guidance for your entire team. It gives workers insight into your values and goals, offering them direction. The resulting unity and efficiency set your brand apart and enable you not just to respond to customer preferences but to drive them. Keep the value proposition formula offered above in your back pocket so that you’ll adapt well and enjoy smooth sailing no matter where the market winds might blow.

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    David Partain

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