ReportWire

Tag: small businesses

  • Revolutionize Small Business with Generative AI | Entrepreneur

    Revolutionize Small Business with Generative AI | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    This story originally appeared on Under30CEO.com.

    Generative AI can significantly assist small businesses in managing their social media presence more effectively. Utilizing AI, businesses can examine trends, predict engagement patterns, and suggest relevant content ideas. This ultimately saves time and resources while maintaining a consistent brand image.

    Embracing social media management with Generative AI

    By using AI to target audiences better and tailor content according to customer preferences, small enterprises can foster meaningful online communities and drive business growth with more efficient social media strategies.

    Personalizing customer service with AI-powered chatbots

    Small businesses can harness AI-powered chatbot technologies to understand customer preferences and inquiries, offering tailored and effective customer service experiences. Chatbots can handle multiple customers simultaneously, reducing response time, increasing efficiency, and boosting satisfaction levels. Consistent analysis of customer interactions allows AI chatbots to improve and refine their responses, ensuring that clients receive personalized solutions catered to their needs.

    Related: ‘Mindless Scrolling Has Become an Epidemic:’ Here Are 11 Ways to Cut Back Your Screentime That Actually Work.

    Streamlining content creation with AI-driven tools

    Generative AI tools like ChatGPT can be utilized by small businesses to create blog posts, email newsletters, and product descriptions, accelerating the content creation process. With greater customization and personalization, businesses can target specific audiences effectively. By leveraging advanced AI capabilities, the overall quality and consistency of content can be improved while minimizing workload for content creators.

    Identifying growth opportunities through AI analytics

    AI-enabled tools can analyze business data and identify growth opportunities, allowing small enterprises to adapt strategies and make data-driven decisions. Advanced analytics tools uncover patterns and trends, giving valuable insights for potential business expansion or diversification. By leveraging AI, small businesses remain agile and competitive, capitalizing on emerging market trends and evolving with consumer demands.

    Optimizing scheduling and operations with AI algorithms

    AI algorithms can be employed to improve scheduling and operations, taking factors like employee availability, customer demand, and resource allocation into account. Utilizing advanced algorithms, businesses can enhance productivity, streamline tasks, and reduce costs. Additionally, AI-driven scheduling systems can adapt to changes and unforeseen events, resulting in greater efficiency and effectiveness in organizational processes.

    Related: What Is the ‘Coffee Cup Test’? Watch Out For This Tricky Interview Trend.

    Enhancing decision-making with AI-powered analytics

    Businesses can benefit from AI-powered analytics, offering invaluable insights to inform their decision-making processes. Analyzing vast data sets, AI-driven technologies assist companies in making data-driven decisions more effectively. Improved strategies and increased profitability result from leveraging insights to address weaknesses and seize opportunities.

    Revolutionizing inventory management with Generative AI

    Generative AI can support small enterprises in inventory management by optimizing stock levels, forecasting demand, and identifying sales data patterns. By incorporating AI into daily processes, businesses can make informed decisions when replenishing stocks, preventing overstocking and avoiding stockouts. AI-driven analysis of customer behavior and preferences enables businesses to tailor product offerings, ultimately leading to increased sales and improved overall performance.

    Transforming supply chain management through AI-powered tools

    AI-powered tools can benefit procurement, logistics, and inventory control, streamlining supply chain management for small businesses. Automating repetitive tasks and providing predictive analytics, these tools improve operations, reduce human error, and inform better decisions. As a result, small businesses enhance efficiency, reduce costs, and improve customer satisfaction in competitive markets.

    Refining employee recruitment with AI-driven software

    Small enterprises can leverage AI-driven recruitment software to locate top candidates through keyword analysis and language understanding. The software quickly sifts through numerous applications, significantly reducing recruitment time and effort. AI-powered recruitment programs assess candidate skills, qualifications, and fit for organizational culture, leading to more efficient hiring decisions.

    Accelerating design processes with AI-powered software

    AI-powered design software allows small businesses to rapidly generate and modify designs, from product prototypes to branding components. This process dramatically reduces the time and resources required in traditional design methods, enabling entrepreneurs to bring their ideas to life faster. Harnessing AI power enables businesses to iterate and refine designs quickly, resulting in more innovative and competitive products.

    Strengthening data security through Generative AI

    Generative AI technology bolsters data security by monitoring systems for potential risks and detecting them before significant damage occurs. Constant analysis of system patterns and behaviors provides an early warning system for effective response to breaches. Generative AI also assists in the development of unique encryption algorithms, further enhancing data security.

    Introducing predictive maintenance systems with AI

    Small businesses can benefit from AI-enabled predictive maintenance systems, which detect the need for repairs and maintenance before major issues arise. Machine learning algorithms and sensor data are utilized to analyze patterns and detect anomalies in equipment performance. Proactively scheduling maintenance by identifying potential problems reduces downtime and extends asset lifespans.

    In conclusion, generative AI presents a wealth of opportunities for small enterprises across diverse industries. Adoption of these tools enables businesses to streamline processes, automate tasks, and make well-informed decisions, resulting in increased productivity, cost savings, and overall growth. Embracing generative AI keeps businesses competitive in fast-paced technological landscapes, encouraging experimentation and innovation. This not only leads to enhanced customer satisfaction but also fosters an environment prepared to face future challenges and capitalize on emerging possibilities.

    [ad_2]

    Kimberly Zhang

    Source link

  • Square Outage Causes Payment Problem for Small Businesses | Entrepreneur

    Square Outage Causes Payment Problem for Small Businesses | Entrepreneur

    [ad_1]

    Square and CashApp, two payment platforms used by many small businesses, have been experiencing outages since Thursday. Users are reporting they have been unable to access their accounts or perform transactions on both payment platforms.

    Both companies are owned by Block Inc. (formerly Square Inc.), a San Francisco-based technology company, co-founded by Jack Dorsey in 2009, which launched CashApp in 2013.

    The outages continued into Friday morning before being resolved, the company said. CashApp and Square shared updates on their websites about the outages that affected thousands of customers, wherein accessing accounts, making payments, and viewing one’s dashboard was unavailable. As of Friday afternoon, CashApp said the issue is mostly fixed, but it will continue to investigate the situation.

    “We’ve resolved a majority of the issues, but you may experience some delays,” CashApp wrote on Friday. “Our team continues to monitor the situation.”

    As for Square, it gave a status update that all systems were functioning back to normal on Friday.

    However, during the outages, some small businesses struggled to carry on amid the glitches.

    Aaron Bergh, owner of Calwise Spirits Co. in Paso Robles, CA, told The San Francisco Chronicle that he was unable to process credit card payments, and had resorted to jotting down credit card details for later processing or accepting cash, limiting customer spending.

    He also added that, unlike previous Square outages where he could at least record credit card information, this time he wasn’t even able to access his account.

    “We’re taking a huge risk by letting product walk out the door with the possibility that their card may be declined when we try to process them,” he told the outlet.

    [ad_2]

    Madeline Garfinkle

    Source link

  • Accelerate The Growth of Your Company With This Strategic Lever | Entrepreneur

    Accelerate The Growth of Your Company With This Strategic Lever | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    As the world wades through the evolving tides of the post-pandemic era, one thing has become crystal clear: the future of work is flexible, as I tell my clients, who I have helped figure out their hybrid work models. In a recent Flex Report from July 2023, compelling evidence supports a direct correlation between a company’s flexibility in its work model and its rate of growth.

    The flexible advantage

    The Flex Report from July 2023 brought to light some game-changing insights on the role of flexibility in shaping a company’s growth trajectory. According to the data, flexible companies — those categorized as either fully flexible or structured hybrid — are accelerating their pace of growth at an impressive rate. Specifically, these companies are adding headcount at over twice the pace of their full-time in-office counterparts.

    Flexibility in the report’s context refers to companies that either have no physical office space, denoted as fully remote, or those that provide their employees the freedom to decide when or if they want to work from an office. These are marked as Employee’s Choice. This model of flexibility embraces the notion of giving employees control over their work environment, which, as the report suggests, maybe the secret ingredient in the recipe for growth.

    Among the Fully Flexible companies, the Fully Remote category reigned supreme. These boundaryless enterprises, unhindered by geographic constraints, saw a 6.9% increase in their headcount. Compared to a 5% increase for companies categorized as employee’s choice, it’s evident that fully remote companies are setting the pace in this race.

    However, let’s not forget about structured hybrid companies. While these organizations have specific expectations on when employees work from an office, they still offer a degree of flexibility. Their growth was not far behind, with a 4.1% headcount increase, outpacing full-time in-office companies, which only managed a 2.6% increase.

    In a world where talent is the ultimate currency, these numbers tell a compelling story. The more flexible the company, the greater its ability to attract and retain talent. This trend underscores the fact that flexibility is no longer a mere perk or a buzzword. It’s a powerful competitive advantage, a magnet that pulls in talent and fuels the engine of growth. In this new world of work, flexibility isn’t just a nice-to-have — it’s a must-have.

    Related: 68% of Companies Are Making This Critical Mistake in Their Approach to Hybrid Work — Are You?

    The days in office dilemma

    The Flex Report also unveils a fascinating correlation between the number of days required in the office per week and the company’s growth in headcount. It appears that the number of days an employee is required to be physically present in an office has a direct impact on the company’s ability to attract and retain talent. That finding strongly supports the broader idea of the flexibility advantage.

    Companies that mandate employees to be in the office one day per week experienced a robust 4.8% increase in headcount over the last 12 months. However, as the number of mandatory days in the office increased, the headcount growth rate began to show a decline. Companies requiring four days in the office saw this figure drop to 3.8%, and for companies requiring a full five-day office week, the growth rate fell further to 2.6%.

    Consider this scenario. You’re a talented professional with several job offers on the table. One company demands your physical presence five days a week, while another only requires one day of office attendance, offering you the liberty to work from home or elsewhere for the rest of the week. In today’s increasingly connected world, where work is something you do, not a place you go to, which offer would you be more likely to accept?

    This data presents a compelling argument for companies to rethink their office requirements. The findings suggest that a mandate of more days in the office is a deterrent for job seekers. A more flexible approach, allowing employees to work remotely most of the week seems to be more appealing and will likely lead to higher growth rates.

    In essence, the more days a company demands its employees to be present in the office, the less attractive it becomes in the eyes of potential employees. And the drop-off is especially steep after three days. In the end, the data speaks for itself: Flexibility isn’t just an employee perk; it’s a strategic growth lever.

    Size doesn’t matter — flexibility does

    While it’s a common belief that the size of a company can impact its growth trajectory, the Flex Report unveils a different story. No matter the company’s size, flexible work models consistently outperform full-time in-office models in terms of headcount growth. This trend is a testament to the power of flexibility and its ability to fuel growth irrespective of a company’s size.

    The data reveals that this pattern is especially pronounced for companies with 500-5,000 employees. In this category, flexible companies have more than doubled the rate of headcount growth compared to their full-time in-office counterparts over the last 12 months. It’s like watching two runners in a race, with the flexible company swiftly outpacing the full-time in-office company, even though they both started at the same point.

    Even when we turn our attention to larger companies, those with over 5,000 employees, the trend holds true. Fully flexible companies outperformed their structured hybrid counterparts, boasting a 3.7% increase in headcount over the last 12 months, compared to a 2.9% increase for structured hybrid companies.

    Moreover, this trend remains consistent even when the tech industry — a sector known for its embrace of flexible work models — is removed from the analysis. Across all company sizes and time periods, full-time in-office companies lag behind their flexible counterparts in headcount growth.

    Imagine a racing event where cars of different sizes compete, and the smaller, more agile cars consistently outpace the larger, more powerful ones. Similarly, in the race for growth and talent, it’s not the size of the company that gives it an edge, but its agility and flexibility. The ability to adapt and offer flexible working options is what truly fuels the engine of growth. This trend underscores the fact that in the modern world of work, flexibility is not just a competitive advantage — it’s a necessity.

    Related: How Flexible Work Will Give Your Business the Biggest Advantage

    Flexibility: The secret sauce for growth

    It’s clear that companies offering work location flexibility are growing their headcount faster than those requiring full-time in office. Over the last three months, fully flexible or structured hybrid companies have been adding employees at twice the rate of their full-time in-office peers.

    The data suggests that the companies adding headcount are likely also the ones growing sales. The growth in the economy, at least for corporate employees, seems to favor companies offering flexibility. If this trend continues, it’s likely we’ll see a decrease in companies requiring full-time in office, shifting towards hybrid models that better cater to the needs of the workforce.

    So, for the corporations out there still grappling with the concept of flexible work, it might be time to loosen the reins and let flexibility gallop forward. The data suggests that in the race for growth, flexibility isn’t just a nice-to-have — it’s the winning steed.

    The future of work is here, and it’s flexible.

    [ad_2]

    Gleb Tsipursky

    Source link

  • The Pros and Cons of Hiring Family Members in a Small Business | Entrepreneur

    The Pros and Cons of Hiring Family Members in a Small Business | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Even though we already had four children, when my husband Phil and I started CorpNet, our goal was not to create a dynastic family firm. Yet here we are, 14 years later, with two kids on the payroll.

    That’s not unusual; there are over 5.5 million family-owned businesses in America. Like most small businesses, family-owned companies struggle to find skilled employees. To meet this challenge, small business owners should ignore conventional wisdom and explore all avenues of finding good workers. One way to find the employees you need is to do what we did — hire family members, whether your own or relatives of your current staff.

    While this may be perceived as nepotism, hiring family members has several strategic advantages.

    Related: 5 Tips to Successfully Manage ‘Friends and Family’ Hires

    The pros

    1. Shared vision and values

    Family members often share similar values, work ethics and long-term goals. In PwC’s 2023 U.S. Family Business Survey, 90% of respondents of all generations say, “Growth is important because it enables them to invest in their company’s future.”

    Your kids likely share your values and goals. But look beyond that. Let’s say you have a high-performing employee that fits your company’s culture — they may have a sibling or a spouse with the same traits. Hiring them (of course, you should vet them as you would any new hire) can save you the time and money of searching for a new employee and the concern that your new hire won’t fit your company culture.

    When employees (related or not) share values, it’s often easier to work toward achieving common goals since they’re invested in each other’s success.

    2. Trust

    For small businesses to succeed, your team must trust one another. Family members have a pre-existing foundation of trust, and that attitude can spread to other employees, creating a strong team bond.

    Trust among your staff enhances communication, collaboration, goal-setting and decision-making. And 91% of business executives surveyed in PwC’s 2023 Trust Survey say maintaining trust improves the bottom line.

    3. Loyalty

    Employees want to work for companies where they know their opinions are respected. When your hire a relative of a current employee, they feel valued that you trusted their recommendation, deepening their loyalty.

    Family members likely enjoy working together, which further cements their loyalty to your business.

    4. Efficient communication

    Family members typically communicate more easily and effectively due to their familiarity and shared experiences. This streamlined communication minimizes miscommunications and misunderstandings.

    5. Lower recruitment costs

    Recruitment can be costly and time-consuming — especially today when many businesses compete for the same employees. Small business owners can reduce recruitment expenses, such as paying for job listings, recruiters or employment agencies, by hiring their kids or employees’ relatives.

    Also, since your children and the relatives of current employees are already familiar with your business, the onboarding process is shorter, reducing training time and costs.

    Related: The No. 1 Reason You Should Hire a Family Member

    The cons

    Of course, hiring family members can have some potential drawbacks. Here’s what to look out for:

    1. Appearance of nepotism

    Whether you’re hiring members of employees’ families or yours, other employees may resent these new hires, assuming they’re not qualified for the job. Transparency is essential. Tell your staff about the familial relationship and why you think the new worker will make a great team member.

    2. Preferential treatment

    It is critical that the new hire does not get preferential treatment. Family members should avoid inside jokes, telling secrets and any other behavior that would cause resentment.

    Job responsibilities, wages and paid time off for similar positions should be the same. Even a hint of special treatment will increase resentment in the rest of the staff.

    3. Emotional baggage

    Family members may bring emotional baggage and existing conflicts into the workplace, creating tension and making it difficult to work together. Those tensions can permeate throughout your company, negatively impacting growth.

    Regular communication is key to resolving family conflicts. The 2023 North America Family Business Report from Brightstar Capital Partners and Campden Wealth reveals that 49% of respondents experienced family conflict on the job, which for 41% resulted in a communications breakdown, impacting the entire company.

    Before family members join your company, you or your HR manager should set boundaries between the related employees (including you and your family). Explain what behaviors are not acceptable in the office. Consider adding a section about this to your employee handbooks.

    Related: The Do’s and Don’ts of Involving Family in Your Business

    Tips for hiring family members

    When hiring relatives, you need to:

    • Be clear about your expectations. Set clear expectations for the new hires so they understand their roles and responsibilities. When hiring family, it’s key to temper your expectations. Don’t expect them to be perfect or to think exactly as you do, and be patient. Give them time to adjust to their new roles. Also, if applicable, explain your expectations to the employee who suggested you hire their relative. If things don’t work out, you don’t want to lose your other employee as well.
    • Be fair and impartial. All employees should be treated equally. Favoritism is never acceptable.
    • Hire the best person for the job. Never feel obligated to hire relatives (your own or an employee’s) simply because they’re family. Make sure they’re qualified for the job.

    Before making a final decision, weighing the benefits of hiring family members against the potential drawbacks is critical.

    At my company, we have hired relatives of our employees and found that they work hard, quickly fit into our company culture and help us focus on growth and success. And while my kids work at CorpNet now, I don’t have unrealistic expectations. We’re not grooming them to take over. My children have aspirations and want to start their own businesses.

    [ad_2]

    Nellie Akalp

    Source link

  • 3 Investments That Will Transform Your Small Business | Entrepreneur

    3 Investments That Will Transform Your Small Business | Entrepreneur

    [ad_1]

    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.

    [ad_2]

    Rich Rao

    Source link

  • Why Small Businesses Should Consider Self-Funded Health Insurance Plans | Entrepreneur

    Why Small Businesses Should Consider Self-Funded Health Insurance Plans | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Health insurance premiums are increasing annually, at a rate that far outpaces inflation. Both employers and employees are paying more. If this trend continues unchecked, the average family’s health insurance premium will surpass the average wage by 2055.

    A common misconception among employers, particularly within small to medium-size businesses, is the notion that a fully insured health plan — where the employer pays premiums to an insurer to cover claims — is their only choice. This often leaves employers believing they have no option but to continuously accept increasing costs, shelling out more money each passing year. While this may have once been the case, the persistent rise in premiums has now tipped the balance, reshaping the landscape of available options.

    Historically, self-insurance — where employers take on the risk and handle claims directly — was largely viewed as a feasible strategy for companies employing 500 or more individuals. However, as these plans have evolved and become more adaptable, they now present a tangible opportunity for organizations with even as few as 25 employees. This approach allows employers of all sizes to not only mitigate healthcare expenses but also enhance the benefits they provide.

    Related: Healthcare Reform: Self-Funding Pros and Cons

    The benefits of self-funded health plans

    Self-funded health plans operate on a model where instead of paying premiums, the employer directly funds the healthcare claims for their people. In this structure, actual claims are paid directly to providers via a third-party administrator who manages the process.

    This is a contrast to the fully insured models where employers shell out annually for premiums, which include not just the cost of potential claims but also considerable profit margins and markups for the insurance companies. In essence, with self-funding, employers pay solely for the actual cost of claims, steering clear of inflated annual premiums and the hidden costs of insurer profits.

    Underwriting techniques have improved over the years, and risk management tools have evolved to the point that smaller businesses are now able to enjoy the freedom and savings that come with a self-funded plan. There are also tax advantages, as self-funding eliminates state premium taxes imposed by carriers.

    The concerns of self-funded health plans

    The No. 1 reason why small businesses are intimidated by self-insurance is the fear of large claims. Certain medical conditions can generate claims in the millions for a single individual, which obviously most small businesses couldn’t shoulder.

    Stop-loss insurance is the safety net that protects employers against any unexpected surge in claims. With these policies, employers can calculate a worst-case scenario for their self-funded plan. When they do, they often find that premiums have risen so sharply that even a worst-case scenario for a self-funded health plan can end up being cheaper than the price of the annual renewal of a fully insured health plan.

    When a company shifts from being fully insured to self-funded, employees are often anxious about the ability to keep seeing their providers and receiving their medications. Involving employees in the benefit design process can help reassure them and get them excited about the benefits of self-funding, which can include features such as $0 care/copays for virtual care or navigation lead benefits. Lower costs and better benefits have a way of getting people on the same page.

    Related: You Can Cut Employee Health Insurance Costs the Same Way Big Companies Do

    Own your own data and take control

    Another advantage of self-funded health plans — one that isn’t immediately evident in dollars and cents — is you gain access to your company’s claim data. Companies with fully insured plans have no idea what their actual claim costs were or what types of claims are driving costs up. Was the total cost more or less than the premiums? There’s no way to know.

    Oftentimes an employer will get a quote for the first year of a self-funded plan and see little to no difference compared to what they are paying in premiums to an insurance carrier. With the newfound access to claims data, the value becomes crystal clear in the second year, third year and beyond.

    Self-funded employers can analyze trends, forecast claim spending and better understand the healthcare needs of their group. It allows a company to optimize, customize and tailor its benefit plan. For instance, if telehealth and virtual care are going to be prominent within the group, tailoring coverage that way is an option.

    By tailoring benefits to align with historical usage, employers enhance the likelihood of ending the year with a surplus. While it’s important to prepare for the worst-case scenario, any more favorable outcome means the plan will undershoot the budget — a situation that is unheard of with fully insured plans.

    Offering healthcare navigation services can also help lower costs for the employer and members. Benefit navigators help employees find cost-effective care without sacrificing quality. The best way to deal with large claims is to avoid them in the first place.

    Level-funded health plans serve as a bridge

    While fully insured and self-insured health plans are the two main options on opposite ends of the spectrum, there is something in between. Level-funded plans are a sort of combination of the two that can serve as a bridge for employers to make the transition.

    A level-funded plan is set up so an employer makes predictable monthly payments, like with a fully insured plan, but gets a refund at the end of the year if there is a surplus, like with self-insurance.

    The regular payments, which cover anticipated claims, the stop-loss premium and administration expenses allow for more predictable expenditures for the company. When end-of-the-year costs are assessed, employers receive a refund if there’s a surplus. If claims exceed the predicted amount, the stop-loss premium will be adjusted upon renewal.

    Related: How Small-Business Owners Can Win the Health Insurance Game

    The future of self-funding is here

    As the benefits of self-funding become increasingly clear to a rising number of employers, there’s no doubt that this market will continue in its momentum forward. The advent of new technologies and member-centric programs are being born out of necessity, ushering in an era of unprecedented efficiency and user experience, while lowering costs.

    These advancements are setting a new bar in the industry, empowering employers to take an active role in their healthcare strategy. Employers are at a pivotal moment in history, where the potential to transform healthcare for their employees is within their reach. Working hand-in-hand with their benefit consultants to explore these innovations and stay abreast of the industry trends is no longer an option but a requisite.

    The future of self-funding is here, and it’s catalyzing a revolution that promises to redefine employer-sponsored healthcare benefits as we know it.

    [ad_2]

    Michael Waterbury

    Source link

  • There’s A New Trend In Healthcare That’s Saving Money For Small Businesses | Entrepreneur

    There’s A New Trend In Healthcare That’s Saving Money For Small Businesses | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    I am seeing a growing number of my smaller clients canceling their health insurance plans. Why? Because for them — and others — there’s a better option.

    It’s no secret that providing health insurance is a major — and oftentimes insurmountable cost — for many small business owners. I have a number of clients that contribute to their employees’ healthcare — sometimes as much as 100% for individuals — and this can run tens if not hundreds of thousands of dollars every year. And there’s no end in sight.

    A recent survey from employee benefits consultants Buck found that on top of prior year-after-year increases, healthcare costs will go up yet again between 6-7 % – and to many of my clients, that’s a good year! Each year, they’re faced with the same, volatile, uncontrollable and seemingly uncontainable challenge to control these costs and this year is no different. This is why more than half of small businesses find themselves unable to offer health benefits – and lose talent as a result.

    And it’s not just the cost of premiums. There’s also the cost of administrative and lost opportunity time. There’s the seemingly fruitless search for better prices in what is clearly an oligarchic market made up of just a very few large providers. It’s the awkwardness — and potential privacy concerns – of knowing your employees’ health histories which oftentimes figures into the premiums we pay. And it’s the time we spend trying to find alternative ways to make healthcare more affordable through add-on schemes like Health Savings and Flexible Spending Accounts.

    The good news is that there’s an alternative and a growing number of my clients are learning about it. It’s called Individual Health Reimbursement Accounts — or ICHRAs.

    Related: Healthcare is in Turmoil, But Technology Can Save Businesses Billions

    These types of plans are becoming enormously popular with small businesses. So popular that the Department of Health and Human Services forecasts that approximately 800,000 employers will offer these types of plans to almost 11 million employees over the next few years. A recent report from the HRA Council — a consortium of health benefit firms — found that these types of plans have grown 350% since 2020, and are “doubling on average among all states, with significant growth across all industries, employer types and employee groups” and that companies with 20 or fewer employers are accounting for 90% of their adoption.

    According to Jack Hooper, the chairman of the board for the HRA Council and CEO and founder of benefits administrator Take Command, the number of large employers switching to ICHRAs has grown exponentially but “small and medium-sized businesses are leading the charge to deliver much-needed innovation in the benefits space, consumer empowerment and choice for employees, and cost control and flexibility for employers.”

    Why so popular? ICHRAs not only cut healthcare costs, but they help employers get out of the healthcare business altogether.

    With an ICHRA, you’re likely going to pay the same premiums (it’s up to you), but this time by a contribution to an employee’s account that’s setup under the plan. But that’s it – the rest is up to the employee. Your employee gets reimbursed by you — pretax like any other health plan and you get a tax deduction for your contribution. But now it’s on them to get their own healthcare insurance either through their state or federal healthcare exchange or through an independent insurance broker (some of my clients provide their employees with recommended firms that do this).

    There’s no more deciphering the ins and outs of complicated health plans. There’s no more negotiation with healthcare providers. There are no more privacy issues. There’s no more internal administration (most of my clients outsource this work to firms that handle these plans). Basically, you just reimburse the employee and you’re done with healthcare. Amounts contributed stay with the employer if a worker leaves. And if you’re having a bad year and feel like contributing less, you can do that too without switching plans, although you may suffer the wrath of your workforce, so be careful!

    Related: Health Care Is Now the Top Concern for Small Businesses

    With ICHRAs, employees have more flexibility in their health plan choices and aren’t dependent on what an employer is providing. Remote workers may be able to get better deals on their health insurance depending on what’s offered in their state. They can choose how much they want to spend and their employers can choose to reimburse for additional costs like prescriptions or mental health coverage.

    Because they’re easier to understand and offer a less-expensive option for employees, younger workers are participating in these plans at a rate greater than their older counterparts. The HRA Council report found that 57% of employees accepting an HRA (which includes either ICHRAs or QSEHRAs — a similar, but less flexible plan that an employer can offer directly to workers) to fund their marketplace health insurance are between 18 and 44, with the largest age cohort being 26 through 34 for each year since 2020.

    ICHRAS are “causing a seismic shift in the employer-sponsored group market — addressing employers’ needs to significantly control costs and opening the doors for employees to be more informed healthcare consumers,” John Kelly, CEO and founder of healthcare benefits provider Nexben, a benefits tech firm, told HR Executive. “ICHRAs are the 401(k) of health benefits.”

    Why am I so bullish on these plans? Because they allow even the smallest of businesses to provide some type of healthcare coverage for their existing and prospective employees instead of just throwing up their hands and saying, “we can’t afford this.” In these times of tight labor, you can’t not have an answer when someone asks you about your healthcare benefits. With an ICHRA you’ve got an answer. A good answer. Which is why I’m seeing so many of my clients take advantage of this option over the past few years.

    [ad_2]

    Gene Marks

    Source link

  • The Best Mom & Pop Travel Experiences in the U.S. | Entrepreneur

    The Best Mom & Pop Travel Experiences in the U.S. | Entrepreneur

    [ad_1]

    Entrepreneur asked Yelp to dig into its data, to reveal which ones America loved the most. Together we created America’s Favorite Mom & Pop Shops, a list of 150 local, independently owned and operated businesses across 10 categories — including, yes, hotels, B&Bs, and travel.

    To see every category, as well as the methodology behind the list, click here. Below are the 15 companies included in the hotel, B&Bs, and travel category.

    Note: Some businesses may have multiple locations. Only one location is listed for each.

    1. The Vine House Bed & Breakfast

    Temecula, CA

    Company website | Yelp page

    Located in the middle of wine country, this family-operated bed and breakfast is a real hit among travelers. It is within one mile of seven different award-winning wineries, making for great accommodations for anyone looking to experience the best wineries in a relaxing space.

    The rooms are accommodated with king size beds, fireplaces and gourmet breakfasts. Vineyard view patios are also an option. The property backs up to a 10-acre vineyard.

    Cheryl R. writes on Yelp, “It is spectacularly gorgeous. The rooms are so spacious and the amenities are top notch. You do not get a bad room at this place!”

    2. The Chadwick Bed & Breakfast

    Portland, ME

    Company website | Yelp page

    This home was built in 1891 and converted into a bed and breakfast over 40 years ago. The Portland, Maine area has so much to do that travelers can use the property as a retreat at the end of a long day or use the property itself as a vacation getaway. The classic architecture, the food served, and the surroundings on the premises are a vacation in and of itself.

    Breakfast seems to be a resounding hit among reviewers of this property. Kim B. notes on Yelp that when it comes to the servings, “Not a detail was forgotten.” In fact, nearly every review on Yelp notes how fantastic the breakfast is.

    3. Horseshoe Bend Slot Canyon Tours

    Page, AZ

    Company website | Yelp page

    Taking you into the heart of the Navajo nation, this touring company will get you out to the legendary Secret Antelope Canyon and Horseshoe Bend Overlook. Plus, there’s an option for Horseshoe Bend rafting for those that are up to it.

    These are some of the most scenic overlooks in the entire United States, and group tours are kept below 15 people to make them more personal. Christopher Y. notes on Yelp, “If you want plenty of time to explore, learn about Navajo culture from a local and truly experience the sights you want to see, this is the tour to do!”

    4. Spoke and Vine Motel

    Palisade, CO

    Company website | Yelp page

    This motel is the creation of a husband-and-wife team with backgrounds in hospitality and property management. They have renovated an old roadside motel building to create an entirely new, hip experience for patrons. They’ve recently opened a motel bar as well, featuring great cocktails and local drinks.

    Travelers rate this spot in the Grand Valley very highly, noting that it is within walking distance of wine, beer, mead and everything else this area of Colorado has to offer. In particular, reviewers love the beds and the fact that coffee and breakfast are brought to each room every morning.

    5. The Motor Lodge

    Prescott, AZ

    Company website | Yelp page

    Located just blocks from Courthouse Square and Whiskey Row, this boutique hotel is earning rave reviews as a must-stay in the Prescott-area. With the feel of an old roadside motel, there are just 13 rooms at the establishment. Each room is unique.

    Rooms have shared and private patios, which earn high marks from travelers. Reviewers note that they like the establishment’s funky and retro vibes, as well as its proximity to historic downtown Prescott. Lyndsey E. writes on Yelp, “Staying at this motor court felt like a step back in time with modern amenities.”

    Related: How to Impress Guests in a Changing Hospitality Industry

    6. FivePine Lodge & Conference Center

    Sisters, OR

    Company website | Yelp page

    Earning AAA’s 4 Diamond rating, this classic-style lodge stands out above the rest in the area. Each cabin (there are also rooms in the main lodge) is accommodated with a king-sized bed, a waterfall soaking tub, fireplace, private balcony/patio and a complimentary hosted wine reception. The gourmet breakfast also earns high marks.

    Additionally, reviewers love the gourmet coffee and tea service, as well as the on-site athletic club, spa, moviehouse and fine dining. There’s access to bicycles for exploring the surrounding area, as well as access to hiking trails.

    7. Everglades River of Grass Adventures

    Miami, FL

    Company website | Yelp page

    Everglades River of Grass Adventures has been earning top-tier reviews since 2012. Visitors love the small, custom airboats they use to explore the Everglades and surrounding area — where alligator-spotting in pretty much guaranteed.

    These tours will take you deep into the Everglades, giving you glimpses of unique wildlife and plants in the process. Reviewers note the awe of enjoying this area of the country’s unique great outdoors, as well as the tour guides’ friendly lessons.

    Jilly B. on Yelp says that her family “had the best time learning about the native species and the unique ecosystem” and called it ” the best hands-on nature study we have ever done.”

    8. Ray’s Bucktown B&B

    Chicago, IL

    Company website | Yelp page

    Located just outside of downtown Chicago, Ray’s Bucktown B&B offers the chance to experience the Windy City’s legendary Wicker Park/Bucktown area. It’s also just a few blocks from Logan Square.

    The building offers 11 unique rooms, as well as a sauna. The location is modeled after small European hotels. You’ll be hard-pressed to find a review that doesn’t mention the establishment’s cooked-to-order breakfast that is served every morning. There is unique decor throughout, reflecting the owner’s global travels, as well as some nods to the local history of Chicago.

    9. The Roxbury

    Roxbury, NY

    Company website | Yelp page

    An extremely unique location near the Catskills, The Roxbury is an experience in and of itself. Called “one of the most amazing hotels in the entire country” by HGTV, and featuring themed rooms and suites, the establishment aims to wow their customers the minute they open the door to their room.

    The Roxbury’s website says that “if you do not at least smile (and hopefully sometimes gasp) when you open the door to your room, then we have not done our job.” Judging by the feedback from customers, they are succeeding. The terms “enchanted” and “magical” are commonplace in traveler reviews on Yelp and Trip Advisor.

    10. Blue Swallow Motel

    Tucumcari, NM

    Company website | Yelp page

    Located on historic Route 66, this establishment wants to give its guests an experience of what it was like to travel on the road back in the 1940s and 1950s. You experience history here in a building that was originally built in 1939. It features vintage furniture and decor in the restored rooms, as well as neon signs outside and garages attached to each room.

    The Blue Swallow earns high marks from travelers who have stayed during their Route 66 adventures. Erin C. on Yelp notes, “The rooms are adorable and retro furnished. The neon lights and evening vibe cannot be beat.

    Related: How This Husband-and-Wife Team Grew a B&B Empire

    11. Savannah Taste Experience

    Savannah, GA

    Company website | Yelp page

    Take a trip through historic Savannah via a three-hour walking and tasting tour. During this experience, customers will see the cultural landmarks, architecture and historic sites of the city while also indulging in some of the best food that is part of the local tradition.

    Reviewers like that the tour groups are kept to a manageable size — 12 people or less — which makes it easy to hear the tour guide and partake in all the activities. They also like how well-versed the tour guides are in the history of the city, and say they learn lots of information in an engaging and entertaining way.

    12. Desert Pearl Inn

    Springdale, UT

    Company website | Yelp page

    Near the Virgin River and Zion National Park, the Desert Pearl Inn is a great location for a retreat or romantic getaway. It’s built inside a deep canyon, meaning you can enjoy stargazing at night and great outdoor activities during the day.

    Guests view red rock formations along the river outside of their room. And what about the room itself? You will be surrounded by stone walkways and stucco, with framing done via Douglas fir and redwoods that were taken from a 100-year-old railroad trestle that used to cross the Great Salt Lake.

    Reviewers love the balconies, clean amenities and the ability to walk to your destinations.

    13. Rachael’s Dowry Bed & Breakfast

    Baltimore, MD

    Company website | Yelp page

    This highly rated bed and breakfast is in Baltimore’s Ridgely’s Delight neighborhood, and is walking distance from the inner harbor. It is surrounded by homes built in the 18th and 19th centuries, allowing visitors to experience history in an immersive way.

    The home was originally built by a brick baron, and George and Martha Washington were once hosted here in 1798. Reviewers love how quiet the neighborhood is, along with the home’s beautiful gardens, parlor room and library (with complimentary tea), and the two-course gourmet breakfast.

    14. Bobby’s Bike Hike – Chicago

    Chicago, IL

    Company website | Yelp page

    Bobby’s Bike Hike was created out of a love of travel — and family. It was founded by Jeremy Lewno, who grew up in Arkansas and spent his twenties traveling Europe. Then he moved to Chicago in 2002 and created Bobby’s, which he named after his late father, who operated a tour bus and taught his son a love of travel.

    Today, Bobby’s remains a great way to see the city up close and enjoy the 18 mile lakefront while being environmentally and culturally conscious. In addition to bicycle tours, the company also offers walking and food tours. Or you can just rent a bike from them and be on your way to take in everything on your own.

    15. SevenOaks

    Lake Geneva, WI

    Company website | Yelp page

    Want to get away from the kids, and enjoy a quiet retreat with your partner? That’s very specifically what SevenOaks is for. It’s a couples-only bed and breakfast, where couples can recharge just minutes from the shore of Lake Geneva in southeastern Wisconsin.

    Guests who stay here are presented with their own private cottage. Reviewers love the relaxation and privacy that this ensures, as well as the personalized touches upon arrival such as the chalkboard outside with the guest’s name on it. Reviewers also note how much they appreciate the clean amenities, complimentary wine, crackers, and daily breakfast that is brought to each cottage.

    Related: 10 Ways Small Businesses Can Give Back Without Breaking the Bank

    [ad_2]

    Entrepreneur Staff

    Source link

  • How to Evaluate (and Lower) the Interest Rate on Your Small Business Loan | Entrepreneur

    How to Evaluate (and Lower) the Interest Rate on Your Small Business Loan | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Small business financing can help your business get to the next level, and there are multiple factors you should consider when evaluating loan offers. While the interest rate doesn’t tell the whole story, it is a significant factor that can’t be overlooked.

    Your interest rate determines how much you’ll pay over the life of the loan, and a low rate leads to lower monthly payments and increased savings. Alternatively, an interest rate that’s too high can lead to financial instability.

    Whether you’re looking to take out a loan in the near future or later on in the year, it’s a good idea to understand how to evaluate potential interest rates and the steps you can take to lower your rate.

    Related: 8 Things Entrepreneurs Should Look for When Getting a Business Loan

    How to evaluate the interest rate on a small business loan

    Here are some factors you can use to evaluate interest rates:

    • The lender: Your interest rate will vary depending on the type of lender you work with. For example, banks and credit unions tend to offer the lowest interest rates on business loans. Nonbank lenders may offer slightly higher rates, but the application process is more streamlined, and you’ll receive the funds faster.

    • Fixed vs. variable rates: When you take out a business loan, you’ll receive either fixed or variable interest rates. A fixed-rate loan will stay the same over the life of the loan, while variable interest rates will change depending on current market conditions. In the beginning, a variable rate may be lower than a fixed interest rate, but this can quickly change if certain indexes — like the prime rate — go up or down.

    • The loan terms: It’s also important to consider the loan terms you’re offered. For example, let’s say you’re comparing a loan with three-year terms vs. 10-year terms. The 10-year loan terms may come with a slightly higher interest rate but lower monthly payments. In comparison, you’ll pay less interest overall on a three-year loan, but your monthly payments will be higher.

    • The financial health of your business: Finally, you need to consider the overall financial health of your business. Would the interest rate negatively impact your overall cash flow and ability to repay the loan? If the payments put a significant strain on your business finances, the loan may not be worth it.

    The interest isn’t the only factor that affects how much you’ll pay for the loan. Some lenders charge additional fees, like origination fees, application fees or closing costs. The fees will drive up the total cost of the loan, so you should talk to your lender and ask them to outline what fees you’ll have to pay.

    Related: 5 Ways to Avoid Paying Too Much on a Business Loan

    3 ways to lower your interest rate

    The rate you receive on a business loan depends on a variety of factors, including your business finances, credit score and the industry you’re operating within. If the rate you’re offered is higher than you’d like, here are some steps you can take to lower it.

    1. Improve your credit score:

    In addition to checking your business credit score, your lender may look at your personal credit score. If you have poor personal credit, this can affect the rates you receive on a business loan or make it hard for you to get approved.

    To improve your credit score, focus on lowering your credit utilization rate by paying down as much debt as possible. You should also pay your bills on time since late payments can stay on your credit report for up to seven years.

    2. Put down collateral:

    Your lender may be willing to give you a lower interest rate if you put down some type of collateral on the loan. Collateral lowers the risk to your lender since they can seize the collateral if you default on the loan.

    You can use cash or a tangible asset, like equipment or inventory, for collateral on a loan. However, you should make sure you’re confident about your ability to repay the loan before putting down collateral.

    3. Shop around:

    The rates offered by different lenders can vary widely, so the best way to save money on interest is by shopping around. Choose several different lenders, and get prequalified with each one, comparing the rates and terms offered by each.

    Of course, filling out multiple business loan applications can be a little tedious. Another option is to use a lending marketplace — you’ll apply once and receive offers from multiple lenders in one location.

    Related: How to Choose the Best Small Business Loan for Your Needs

    Next steps

    When it comes to small business loans, what’s considered a “good” interest rate will vary. An interest rate that is acceptable for one business owner may be way too high for someone else.

    It’s important to make a decision based on the financial needs of your business. Consider all your options, and work with a lender you trust so you can find the best financing options for your business.

    [ad_2]

    Joseph Camberato

    Source link

  • Leadership Qualities the Most Successful Small Business Owners Share | Entrepreneur

    Leadership Qualities the Most Successful Small Business Owners Share | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Small business owners are the backbone of the global economy, driving innovation, creating jobs and contributing to the overall growth of communities. In fact, more than 90% of the business population in the United States represents small and medium-sized businesses.

    While every entrepreneur has a unique journey, there are certain qualities that the most successful small business owners share. These qualities play a crucial role in their ability to overcome challenges, adapt to market changes and, ultimately, thrive in their ventures. Let’s explore a few key qualities that differentiate the most successful small business owners from the rest.

    Related: The 5 Qualities of Superior Entrepreneurs

    1. Vision and strategic thinking

    Successful small business owners possess a clear vision of what they want to achieve. They have a long-term perspective and can see beyond immediate challenges. They understand their industry, the market and their target customers, enabling them to make strategic decisions that align with their goals. These entrepreneurs are adept at identifying trends, recognizing opportunities and capitalizing on them. They have a keen sense of innovation and are not afraid to think outside the box. They constantly seek ways to differentiate themselves from competitors and create unique value propositions that resonate with their customers. Furthermore, successful small business owners understand the importance of setting achievable goals and creating a roadmap to reach them. They break down their vision into actionable steps, set milestones, and regularly evaluate their progress. This strategic thinking allows them to stay focused, make informed decisions and adapt their plans as needed.

    When strategizing your long-term goals, bring in outside perspectives to inspire new ideas. Whether you have a board or other leaders in your network, informal brainstorming or quarterly meetings can ensure you’re on the right track with your vision. Guidance from a business coach or mentor may also be helpful. The bottom line is to lay a clear foundation for your projected growth.

    2. Resilience and perseverance

    Resilience and perseverance are two fundamental qualities that are essential for small business owners to have in order to navigate the ups and downs of entrepreneurship. Building a business from scratch is rarely a smooth path. It involves overcoming numerous obstacles, setbacks and failures along the way. The most successful small business owners possess a relentless determination to persevere through these challenges. They understand that setbacks are learning opportunities, and failure is not the end, but a stepping stone to success. They embrace adversity, learn from it, and adjust their strategies accordingly. These entrepreneurs possess a strong belief in their vision and are willing to put in the hard work and dedication required to turn it into a reality. Their resilience allows them to bounce back from failures, adapt to changing circumstances, and ultimately thrive in the face of adversity.

    A startling 50% of small businesses will fail in the first five years, but that doesn’t necessarily mean it’s smooth sailing after that. The pandemic shuttered more than 200,000 businesses permanently, so it’s imperative that you’re able to quickly pivot, regardless of what’s thrown your way.

    3. Strong leadership and communication

    Effective leadership is a crucial quality for small business owners. They must inspire and motivate their teams to work towards a common goal. Successful small business owners lead by example, demonstrating integrity, dedication and a strong work ethic. These entrepreneurs understand the importance of effective communication. They are skilled at conveying their vision, values and expectations to their employees, customers and stakeholders. They foster a culture of open communication where ideas are encouraged, feedback is valued and collaboration is promoted. Furthermore, successful small business owners understand the significance of building and maintaining relationships. They know how to connect with customers, build trust and deliver exceptional customer service. They also recognize the value of networking and establishing partnerships with other businesses in their industry. Their ability to build strong relationships contributes to their overall success.

    To continue to deepen your leadership skills, regularly educate yourself and seek outside leadership experts. Read books like Dare to Lead, listen to podcasts like Coaching For Leaders and sign up for development training and tool programs like T.H.R.I.V.E.

    Related: 22 Successful Entrepreneurs Share What Inspires Them to Keep Going

    4. Continuous learning and adaptability

    The business landscape is constantly evolving, and successful small business owners recognize the need for continuous learning and adaptability. They stay informed about industry trends, emerging technologies and changes in consumer behavior. They invest in their own personal and professional development, seeking out knowledge and skills that will benefit their business. Moreover, these entrepreneurs are not afraid to adapt their strategies when necessary. They are open to change, embrace innovation and are quick to recognize when something is not working. They are constantly looking for ways to improve their products, services and operations to stay competitive in the market.

    The National Federation of Independent Business Research shared a study that shows small business owners’ biggest issues of 2023 to be inflation, supply chain issues and difficulty filling jobs. The challenges small business owners face are multifaced and dynamic; successful leaders must be ready to tackle these challenges head-on. Regardless of what the year is, the journey of a small business owner is filled with challenges, but the most successful owners possess certain qualities that set them apart — and the ones I outlined here are the foundation upon which successful businesses are built. By embodying these qualities, aspiring small business owners can increase their chances of success and navigate any challenge that comes their way.

    [ad_2]

    Mark Kravietz

    Source link

  • How to Conduct a Comprehensive Cybersecurity Risk Assessment | Entrepreneur

    How to Conduct a Comprehensive Cybersecurity Risk Assessment | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    In today’s digital landscape, cybersecurity has become a critical concern for businesses of all sizes. However, for small and medium-sized businesses (SMBs), the stakes are even higher. Startups often face numerous challenges, with limited budgets being one of the most significant hurdles.

    Nevertheless, ignoring cybersecurity risks can have devastating consequences. In this article, we will delve into the importance of cybersecurity for startups, the challenges they face and the significance of conducting a comprehensive risk assessment.

    Related: A Business Leader’s Beginner Guide to Cybersecurity

    Importance of cybersecurity for startups

    1. Protecting sensitive data: Startups often possess valuable intellectual property, customer data and other sensitive information. A breach could result in significant financial loss, tarnished reputation and potential legal liabilities.

    2. The evolving threat landscape: Cyber threats are continuously evolving, and attackers are increasingly targeting small businesses due to their potential vulnerabilities. Startups cannot afford to be complacent and must stay ahead of emerging threats.

    3. Regulatory compliance: Many startups operate in industries that have strict regulations regarding data protection and privacy. Compliance with these regulations is not only essential for avoiding penalties but also for building trust with customers and investors.

    Challenges faced by startups with limited budgets

    Startups often operate on shoestring budgets, allocating resources primarily to core business operations. This financial constraint poses unique challenges when it comes to implementing robust cybersecurity measures. Here are some challenges commonly faced by startups:

    1. Lack of expertise and resources: Startups may not have dedicated IT or cybersecurity personnel, making it difficult to address the complexities of cybersecurity effectively.

    2. Budget constraints: Allocating funds for cybersecurity tools, technologies and training can be a significant challenge for startups, especially when competing with other essential business expenses.

    3. Lack of awareness and prioritization: Startups may underestimate the importance of cybersecurity or fail to prioritize it amidst the various demands of growing their business.

    Related: 10 Cyber Security Best Practices for Your SMBs

    Understanding risk assessment

    Risk assessment is a systematic process of identifying, analyzing and evaluating potential risks that could impact an organization’s information assets and systems. It provides a framework for understanding the likelihood and potential impact of threats, allowing businesses to prioritize and implement appropriate security measures.

    To conduct an effective risk assessment, startups should focus on the following key components:

    1. Identifying assets and vulnerabilities: Startups must identify and understand their critical assets, including intellectual property, customer data, financial information and operational systems. Concurrently, vulnerabilities within the infrastructure, software and processes should be assessed to determine potential weak points.

    2. Assessing threats and likelihood: Threat assessment involves identifying potential threats and attack vectors that could target the startup’s assets. Researching current cybersecurity threats relevant to startups is crucial to stay informed about the latest attack techniques. Likelihood assessment evaluates the probability of each threat occurrence, considering both internal and external factors that may influence the likelihood.

    3. Determining potential impact: Assessing the potential impact of successful attacks is vital to understand the consequences a startup may face. The impact can be financial, operational or reputational. By considering the severity of each impact, startups can prioritize their risk mitigation efforts accordingly.

    4. Prioritizing risks based on severity: Once risks have been identified, assessed, and their potential impact determined, startups should prioritize them based on severity. This prioritization enables them to allocate their limited resources effectively and address the most critical risks first.

    Conducting a comprehensive risk assessment

    To ensure effective cybersecurity measures, startups need to conduct a comprehensive risk assessment that encompasses asset identification, vulnerability assessment, threat assessment, likelihood assessment and impact assessment. Let’s explore each of these components in more detail:

    1. Asset identification: Startups need to identify their critical data and systems, ensuring a clear understanding of what requires protection. This includes intellectual property, financial data, customer information and operational systems. By evaluating the value of each asset to the startup, appropriate security measures can be implemented.

    2. Vulnerability assessment: To assess vulnerabilities, startups must identify weaknesses in their infrastructure, software and processes. This can involve conducting vulnerability scans, penetration testing and code reviews. By proactively identifying and addressing vulnerabilities, startups can reduce the likelihood of successful attacks.

    3. Threat assessment: Startups should identify potential threats and attack vectors that could exploit their vulnerabilities. Staying informed about the latest cybersecurity threats and attack techniques is essential. By monitoring industry-specific threat intelligence sources and collaborating with cybersecurity experts, startups can enhance their threat assessment capabilities.

    4. Likelihood assessment: Evaluating the probability of each identified threat occurrence is crucial. Startups should consider internal factors such as existing security measures, employee awareness and incident response capabilities. Additionally, external factors like industry-specific trends, geopolitical risks and emerging cyber threats should be taken into account.

    5. Impact assessment: Assessing the potential consequences of successful attacks is vital for startups to understand the potential impact on their business. Financial losses, operational disruptions, damage to reputation and legal liabilities are some of the key considerations. By understanding the potential impact, startups can implement appropriate safeguards and response plans.

    Related: The Key to Securing Your Small Business in Today’s Cyber Landscape

    In an increasingly digital world, small and medium-sized businesses must prioritize cybersecurity to protect their valuable assets, maintain regulatory compliance and build trust with customers and investors. While startups face unique challenges due to limited budgets, a comprehensive risk assessment approach allows them to identify and prioritize their cybersecurity risks effectively. By conducting asset identification, vulnerability and threat assessments, and evaluating likelihood and impact, startups can make informed decisions and implement the necessary measures to safeguard their operations and future growth.

    [ad_2]

    Jim Koohyar Biniyaz

    Source link

  • Why Software Developers Are Choosing Small Businesses Over Big Tech | Entrepreneur

    Why Software Developers Are Choosing Small Businesses Over Big Tech | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Over the past few years, there has been a growing recognition of the vital role that small and medium-sized businesses (SMBs) and startups play in driving both innovation and economic growth. In the midst of the pandemic downturn, many new businesses were started, and the majority of them are online or digital in nature. So, as more and more businesses shifted to or started their operations online, the demand for skilled developers has only increased, making software developers ever more critical to the success of SMBs and startups around the world.

    Despite the shortage of talent in the industry, there has been a growing trend toward software developers joining SMBs and startups rather than the big tech logos that have traditionally been the most coveted. According to recent reports, the global demand for developers is outstripping supply, with the technology sector being particularly hard-hit. More and more companies are looking to build out their digital infrastructure and stay competitive in an increasingly online world, resulting in fierce competition among companies to attract top talent.

    Related: Being a Small Business Can Be a Big Recruiting Advantage

    Ditching the logos

    While logo recognition may appeal to some, more and more software developers are choosing to join SMBs and startups over behemoths. One of the main drivers is the chance for developers to work on a wider range of projects and with a wider range of technologies, providing a more diverse and engaging experience than the narrow focus they may be tasked with at big tech companies. As small businesses increasingly invest in their digital infrastructure and operations, they have created a wealth of opportunities for developers looking to work with cutting-edge technologies and be a part of an exciting world of innovation and emerging applications and solutions.

    Smaller businesses and startups also tend to offer greater flexibility and work-life balance, with many companies embracing remote work and flexible schedules to draw and retain talent. This flexibility can be a significant factor in attracting developers who prioritize a healthy work-life balance and greater autonomy in their work. Last year, DigitalOcean research showed that finding remote work was a top consideration for leaving existing jobs or taking new ones among developers.

    Another key factor driving the trend towards SMBs is the chance for individual developers to have a greater impact on the business. In a smaller, leaner organization, developers often have a more direct line of communication with key stakeholders, allowing them to understand the business context of their work and make a tangible impact on the success and future of the business.

    Related: Recruiting on a Budget? Here Are 7 Ways You Can Beat the Big Companies to Top Talent

    The future needs of and for developers

    Looking to the future, the demand for software developers in SMBs and startups is expected to increase. In DigitalOcean’s latest Currents report, which analyzes trends among digital small businesses, 51% of businesses who say they plan on hiring in the next year say they will be hiring for software development roles.

    To stay competitive in attracting and retaining top talent, SMBs must take proactive steps. This includes offering competitive salaries and comprehensive benefits packages to attract skilled developers. Additionally, embracing flexible work arrangements and fostering an engaging and rewarding work environment can make a significant difference.

    But it’s not just perks and benefits that SMBs should be paying attention to. Developers want to be on the cutting edge of technology as well. Therefore, smaller digital businesses should also pay close attention to broader changes on the horizon that are likely going to impact them in the future.

    For example, the rise of artificial intelligence and machine learning is set to revolutionize many industries, creating new opportunities for innovative businesses and developers alike. Small businesses should be aware of these opportunities, as well as potential threats they may cause, so as not to be caught off guard in the future.

    And on top of future tech, SMBs should be paying attention to their everyday infrastructure. Developers particularly crave simplicity, documentation and ease — that’s why SMBs should pay close attention to their cloud and tech providers early on in the process to ensure an easy, scalable process in the future.

    In this rapidly changing and difficult economic landscape, it is clear that software developers will continue to play a critical role in the success of digital SMBs and startups. But by embracing new technologies and creating engaging and rewarding work environments, SMBs can and are already competitively positioning themselves to draw the talent they need to scale and grow.

    Related: 4 Strategies for Businesses to Attract and Retain Software Developers

    [ad_2]

    Yancey Spruill

    Source link

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

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

    [ad_1]

    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!

    [ad_2]

    Kate Isler

    Source link

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

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

    [ad_1]

    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.

    [ad_2]

    Hank Stout

    Source link

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

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

    [ad_1]

    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.

    [ad_2]

    Jonathan Herrick

    Source link

  • 5 Ways to Support Women-Owned Businesses | Entrepreneur

    5 Ways to Support Women-Owned Businesses | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Women entrepreneurs face unique challenges in starting and growing their businesses. Some of these challenges are very familiar: limited access to funding, lack of mentorship and bias that many experience in the marketplace.

    Supporting women-owned, small businesses is not only a matter of closing the gender gap but also a way to boost the economy and foster innovation. Shifting habits and cultural norms can seem impossible, but making these significant changes in behavior can be done in small, straightforward ways. These small habits add up to monumental change. Here is a list of the best ways to support women-owned businesses and empower women entrepreneurs:

    1. Shop at women-owned businesses

    One of the most direct ways to support women-owned businesses is simply to spend your money with them. Women entrepreneurs are represented in virtually every industry, from retail to technology to professional services. You can find women-owned businesses in your local area or online. There are dedicated directories on a local, national or regional basis to assist in locating these businesses.

    When you shop at a woman-owned business, you support not only the owner but also the employees, suppliers and the community surrounding that business. Women-owned businesses positively impact the local economy by creating jobs and increasing the tax base. In choosing to spend your money at women-owned businesses, you are making a statement about the importance of gender diversity in the marketplace.

    Related: Why Investing in Women-Led Startups Is the Smart Move

    2. Spread the word

    Spreading the word about women-owned businesses is an excellent way to support them. When you use your social media channels or personal networks to share information about the women-owned businesses you buy from, you are helping to build knowledge and increase awareness of these businesses and that there are choices in the marketplace.

    Word of mouth is “old school,” but still one of the most powerful ways for any business to gain traction. Using your personal and professional networks to promote women-owned businesses and sharing that information with your friends and family members can help drive immediate revenue. It can also help expose that business to its next big opportunity.

    3. Attend events

    Attending events organized by women-owned businesses is a great way to show your support and learn more about their products and services. Many women-owned businesses host pop-up shops, networking events or workshops. These events can be an excellent opportunity to meet the owner, connect with other supporters, and learn more about the business.

    Attending events also shows the owner that their business is valued and appreciated. When you attend an event, you support the owner and the other attendees and vendors. This can create a sense of community and support that can help the business thrive.

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

    4. Write reviews

    Leaving positive reviews after shopping online, leveraging review platforms like Yelp, Google, or Trust Pilot or writing a review and sharing it on social media is another way to support women-owned businesses. Reviews can influence potential customers’ purchasing decisions, help increase the business’s visibility online, and encourage others to support those businesses. When you leave a positive review, you support the owner, the employees and other stakeholders.

    It’s also important to note that negative reviews can significantly impact a small business, so it’s essential to be thoughtful and constructive in your feedback. If you have a negative experience with a women-owned business, consider reaching out to the owner directly to share your concerns and allow them to address the issue before taking it public.

    Related: Studies Suggest It’s Good Business to Hire Women Over Men. Here’s Why.

    5. Partner with women-owned businesses

    If you own a business or work in a related field, consider partnering with a woman-owned business to offer joint promotions, events, or services. Partnering with a woman-owned business can help you reach new customers and grow your business while supporting another entrepreneur.

    When you partner with a women-owned business, you can share resources and expertise to help each other succeed. This type of collaboration sends a strong message and can create a sense of community and support that can benefit both businesses.

    These are simple things you can do every day that will directly impact your community and the large economy. What are you waiting for?

    [ad_2]

    Kate Isler

    Source link

  • 3 Key Trends that Can Signal Change | Entrepreneur

    3 Key Trends that Can Signal Change | Entrepreneur

    [ad_1]

    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.

    [ad_2]

    Steve Arizpe

    Source link

  • Innovation Refunds Launches ERC Affiliate Program to Help American Business Owners

    Innovation Refunds Launches ERC Affiliate Program to Help American Business Owners

    [ad_1]

    Press Release
    •

    May 10, 2023


    DES MOINES, Iowa, May 10, 2023 (Newswire.com)
    –
    Innovation Refunds, a company dedicated to helping American small and medium-sized businesses access funding, has created the all-new Employee Retention Credit (ERC) Affiliates Program. The program is available to qualifying professionals who have a strong network of small and medium-sized business clients. This partnership is designed to educate businesses in America about the employee retention credit and other government-funded programs and to help eligible companies claim refunds to support their business operations.  

    “The goal of our new affiliate program is to create more access for business owners,” said Howard Makler, Co-Founder and CEO of Innovation Refunds. “Studies show that the number of small and medium-sized businesses applying for ERC is well below those who are eligible. By strengthening our network with like-minded professionals, we are raising awareness around the ERC program so that eligible businesses can get the support they deserve to help them focus on their growth and innovation.” 

    Prospective partners interested in the program are able to apply online through the Innovation Refunds website. Each partner who is accepted into the program will receive marketing materials and support documents to leverage when speaking with their clients regarding the access capital available to them. Each partner who joins the program will earn commissions for their qualified referrals.  

    The ERC Affiliate Program joins the Strategic Partner Program, and Refer and Earn offering as part of a holistic strategy designed by Innovation Refunds to identify and align with key stakeholders to better serve American business owners.  

    About Innovation Refunds 

    Innovation Refunds connects small and medium-sized businesses to a network of tax attorneys and licensed tax professionals who provide services and solutions related to government stimulus. By combining people with technology, we have created a secure environment and frictionless customer experience, empowering business owners to focus on the growth and management of their businesses. Innovation Refunds has helped U.S. small businesses access more than $4 billion in tax credits. Learn more about Innovation Refunds by visiting www.innovationrefunds.com, and stay connected on LinkedIn. 

    Source: Innovation Refunds

    [ad_2]

    Source link

  • 3 Ways to Shore Up Your Business Finances in a Tight Economy | Entrepreneur

    3 Ways to Shore Up Your Business Finances in a Tight Economy | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    Around the country, many small businesses are feeling the burden of inflation. Increased costs on everything from raw supplies and shipping to labor and utilities are cutting into the already razor-thin margins that many of them operate with. Add to this the threat of a looming recession and other macroeconomic headwinds, and it’s easy to see why entrepreneurs are looking for ways to shore up their finances and save money.

    Recently, I joined Intuit QuickBooks, specifically because I wanted to help small businesses better manage their finances amid these challenges. Based on what I’ve seen, the good news is that despite these challenges, there are many ways that businesses can improve holistic cash flow — often with some easy operational changes and simple-to-use tools and platforms.

    Here are three strategies for shoring up finances that I recommend to entrepreneurs to best position themselves for success.

    Related: How Great Entrepreneurs Find Ways to Win During Economic Downturns

    1. Assess your inventory

    One of the first things I recommend for product-based businesses looking to improve their finances is to critically analyze your sales and inventory to better understand your customer base as well as what’s driving expenses and profits.

    For example, soon after joining QuickBooks, I heard the story of our customer, Jessica Spaulding, the founder of Harlem Chocolate Factory. While many of us may not realize it, chocolate is both a capital- and time-intensive business, with high overhead in the form of quality, fair trade ingredients and talented chocolatiers who develop recipes and even individual treats by hand. Soaring prices of raw ingredients as well as supply chain issues threatened to disrupt the business Spaulding worked so hard to build — a message many small business owners can relate to.

    To combat this and move forward strategically, Spaulding took a step back and looked at what her books were telling her. What products were selling the most? What wasn’t selling? Using these insights, she redirected her team to be laser-focused on the products and flavors that were driving the most business and profit. She was also able to decrease her overhead in the short term, as she cut back on the ingredients needed to create less popular flavors.

    As I mentioned, closely examining your inventory and sales history is something that all product-based businesses can do. Use your bookkeeping solution to analyze the sales of individual SKUs and look for any trends in your sales — whether it be seasonal, channel-based, location-based or influenced by another factor. You can also work with your accountant or bookkeeper to better understand where you may be able to trim costs or double down to boost profits. Finally, once you’re armed with these insights, put them into action like Spaulding did — honing in on the products that are resonating most with customers.

    Related: 6 Key Tips for Leading Transparently in Economic Uncertainty

    2. Secure working capital

    It’s often been said that it “takes money to make money.” The more I talk to entrepreneurs, the more I think that’s true. The importance of working capital for businesses that are growing or getting off the ground cannot be understated. Unfortunately, the traditional lending system — with long, drawn-out processes and an emphasis on past business credit — is not designed to support many fledgling businesses.

    The good news is that now more than ever there are alternatives for business owners to explore when it comes to securing funding. One option is crowdfunding through websites like GoFundMe and Kickstarter, which allow businesses to launch digital fundraisers. Peer-to-peer or marketplace lending via platforms like Lending Club or Prosper that connect borrowers and lenders online are another avenue to explore. There’s also a multitude of small business grants out there — from federal and regional-based programs, those sponsored by corporations, or some specifically designed for members of certain communities like veterans or women. Be sure to store your applications in a Word or Google document to reference later, rather than just submitting via the online form. This will save you some leg work when filling out future applications.

    Another path I learned about recently was that of QuickBooks customer, Grace+Love Candle Co., who secured funding through us when they were originally denied by traditional banks. Unlike a bank loan, QuickBooks Capital doesn’t require an extensive application process. Rather, it determines creditworthiness by analyzing the company’s history as shown by the data in their books.

    The most important thing to remember when working to secure capital is not to get discouraged. While you may hear many “nos,” during your journey, it only takes one “yes,” — and as I’ve outlined, there are a myriad of different options available to explore.

    Related: 3 Steps to Effectively Lead Through Uncertain Financial Times or Company Restructuring

    3. Speed up and diversify payments

    Now more than ever, consumers (and even businesses) expect to be able to pay seamlessly in a variety of ways — from credit cards to PayPal, Venmo, ACH and more. This means businesses need to embrace and diversify integrated payment systems, allowing customers to pay across multiple channels (i.e. mobile, online, etc.) and accept multiple forms of payment. In addition to meeting customer expectations and helping to increase sales conversion, digital payments also mean money hits a business’s bank account faster.

    While it may not seem significant, the impact of real-time payments can be tremendous. For example, instant payments — rather than a delay of a few days — may help a small business owner who needs to make payroll, pay rent or place an order for supplies. Take a look at how quickly your payments are currently processed. If it’s longer than a day, there are likely options you can look into that are faster.

    Entrepreneurs have shown their resiliency in spades the past several years. While we may be entering a difficult economic climate, I have no doubt they will continue to overcome these challenges. The more small businesses can do now to shore up their finances — from strategically evaluating their inventory and analyzing sales to understanding the funding sources available and embracing integrated payments, the better positioned they’ll be in to succeed despite looming challenges.

    [ad_2]

    Rich Rao

    Source link

  • How Small Business Owners Should Set Goals | Entrepreneur

    How Small Business Owners Should Set Goals | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    When I owned my businesses, I found that setting goals in a particular manner made things much easier, and I found myself reaching higher levels of success faster than I thought possible. I’d like to share these simple steps with you so that you, too, can achieve your most important business (and even life) goals faster than you expect.

    Here are the four simple ways that small business owners should consider setting their goals:

    Related: 3 Rules to Setting Goals for Your Business

    1. M.E. Goals

    M.E. Goals are perhaps the most crucial aspect of creating any goal you’ll ever set. Why? Because they’re about YOU! M.E. goals are about what’s most important to you. M.E. goals are about what excites you, what creates passion for you and what makes you get up and go to work each day (outside of paying the bills, of course).

    This is crucial for a business owner because often we can get caught up in the minutia of the day-to-day activities and what the employees are NOT doing! M.E. Goals get you refocused on why you started the business in the first place. You were excited, weren’t you? M.E. Goals can help you get excited once more in case you’ve lost some drive along the way.

    The M stands for Motivating, which means you need to ask the question, “Does this excite me?” It is hard to work to achieve a goal when there is no momentum or energy behind you. Motivation is a key point in reaching your dreams and aspirations because you’ll need that excitement on the days when nothing seems to be going your way — or when accomplishing the goal seems too far away or too difficult to attain.

    The E stands for Engaging, which means you need to ask the question, “Does this goal speak to me on a deeper level?” Not only should a goal motivate you, but it needs to create passion, meaning and purpose. Otherwise, you may be excited to accomplish the goal, but you’ll be left asking “Why the heck did I even begin in the first place?” Be sure that you’re not just motivated, but that you are finding a deeper meaning in what you are working towards in your life because when you’re at the end of the road, I guarantee that you’ll look back and ask, “Why did I?” or “Why didn’t I?”

    Here are a few questions to ask to create M.E. Goals:

    • Does this goal excite me?

    • Does this goal create momentum for me?

    • Can this goal get me motivated on the days I want to quit?

    • Does this goal speak to me on a deep level?

    • Does this goal help offer meaning to my life?

    • Does this goal provide purpose and direction for me?

    • How will I feel at the end of the road if I do not attempt to reach this goal?

    2. Q Goals

    Another good idea to have in regard to making your goals easier to achieve for your business is to make them “Quantifiable.” Q Goals are perfect for small business owners as they allow you to either build up the number or break it down into smaller chunks.

    Let’s say your goal is to onboard 1000 new customers this year. Q Goals allow you to easily break that number down (discounting weekends and holidays): That would be about 83 new customers per month (1000 ÷ 12). Or you can see it as about 19 new customers per week (1000 ÷ 52). Or you can say it could be about 3 new customers per day (1000 ÷ 365). By breaking it down, it can make larger goals much more manageable, easier to plan for and not so overwhelming.

    Now let’s use the Q Goals to figure out how to plan an outbound calling strategy for the 1000 new customers. Let’s say you have a 10% closing ratio for each sale that you make. So, 3 is 10% of 30, so it looks like you’ll have to make at least 30 outbound calls per day. And according to the numbers above, it would be 190 calls per week and 830 outbound calls per month.

    However, Q Goals allow you to do so much more. A simple example is to increase your outbound activities, maybe 60 calls per day, which could very well lead you to gaining far more than 1000 new customers! Now, just block off about 2 hours a day for this activity. Get quantified by using your Q Goal method!

    • Is there a number attached to the goal?

    • If so, it can then be measured, tracked and quantified!

    Related: 6 Tips for Goal-Setting That, Trust Me, They Don’t Teach You in College

    3. S.M.A.R.T. Goals

    You know this one, right? They even teach this to kids in school now. But the big question here is: Are you doing it? Since we all know this type of goal really well, just take each goal you are creating for your business and apply it to the S.M.A.R.T. method. Understand that not 100% of your goals will fall into this, but 80% or so should. Or just get them as close as you can to being a S.M.A.R.T. goal. If you can do that, you’re well on your way to hitting your numbers this year!

    4. “I Will” Goals

    Far too often, goals that small business owners create are either too general to focus on or too weak to get motivated from. Here are some examples: I want to get more customers, I want to make more money, I want to increase my territory, etc. These goals have a serious lack of commitment, which is why another great idea you’ll want to implement into your goal-setting for your business is to add the “I Will” statement.

    By starting your goal with the statement “I will,” you place yourself in a position of obligation of reaching that goal no matter what. By having that “I Will” statement written down, you literally convince yourself that you will achieve it, and you’ll then begin to believe that the goal is something that you will do. Having the “I Will” statement written down reminds you of what needs to be done — it keeps you responsible and accountable for the results and ensures that you cannot blame the lack of effort or resolve on anyone else but yourself.

    The “I Will” statement makes you deeply committed to your goal, which is of high value because your business will have many, many challenging things come to pass and may even make you question your tenacity as you attempt to accomplish what you want. Some of these challenges will be big, and others will be small, but I promise you that you will be tested — and knowing what you will do can many times make all of the difference between failing and succeeding.

    Here are a few examples of “I Will” goals that also provide meaning and excitement (M.E.), and meet most of the S.M.A.R.T. and “Q” criteria (note that there is a date or number attached):

    • I will make 60 outbound calls each day.

    • I will onboard 1000 new customers by December 31 of 20XX.

    • I will spend two hours each day training new employees.

    • I will create one new marketing campaign each quarter.

    • I will use new technology to collect customers’ funds by end of July 20XX.

    • I will become the number one supplier of XX in my city/state by December 31 of 20XX.

    Related: The 10 Things You Must Do to Achieve Your Goals

    PRO TIP: Be sure to write your goals down in a visible area. Look, your business goals are not to be hidden from others, and should not be something that only you should know about. These goals should be posted up somewhere for all to see.

    Why? Because it’s far too easy to allow yourself to fall behind in your daily or weekly activities because “you don’t feel like doing it today.” Post your S.M.A.R.T. goals, your Q Goals, your M.E. Goals and your “I Will” Goals in plain sight! This way, in case you’re having “a day,” someone can help hold you accountable to a higher standard!

    And one more thing: You’ll be surprised at how many people will want to help you achieve your goals once they can see them up on the whiteboard in your office.

    [ad_2]

    John Kyle

    Source link