5 Reasons Why You Should Be Networking

Many business professionals, educational institutions and other agents of commerce continually stress the importance of networking. This is quite possibly because they foresee, witness, and experience the tremendous benefits that derive from opportunities of connection. Networking is like a good pair of shoes that never goes out of style. Whether you’re just stepping into the field of entrepreneurship or you have been running your business for a long while, it is still the perfect fit that will get you to that next step.  No matter where you are on the spectrum of entrepreneurship and business ownership, you have something to gain from connecting with likeminded individuals. Below are our five reasons why you should be networking. Take advantage of them.

Information

           

Networking is an outlet for information. People attend to both talk and listen. We suggest that while it is imperative that you speak and promote your business in these kind of forums, it is fundamental that you use networking opportunities to soak up as much information as you possibly can. Listen for what’s working in your industry and what pitches and approaches have been unsuccessful. What are the current trends? Which individuals should you be speaking with? What more can you learn? Who is your competition? How can you stand out? There is no limit to the information you can gather at a networking event. At the very least, it is a soundboard to reassure you of your progress, setbacks or need for a little positive and negative information is useful to a growing business.

Increase business/referrals

As a business owner, it is your job to promote your company and increase your clientele. Networking events facilitate this in a way that is less formal and stuffy.  There’s no Powerpoint presentation, no folders, and no necessary major pitch. You simply speak about your business and hand out your business cards. It is your key opportunity to be as real as possible without feeling the pressure of having to book a client. You go at your own pace, choose the people you want to talk to, and keep the conversations lighthearted.  Entrepreneurs tend to excel at networking due to the natural flow of the conversations. Additionally, you can be more creative in your approach to draw people to you. For example, wear a statement piece (jewelry, shoes, etc.) that is guaranteed to strike up a conversation. Although most networking events are less pressure-filled, it is crucial however, to maintain an objective standard of professionalism as you are still representing your company.

 Making connections

Let’s face it; every business needs resources to contribute to the growth and acceleration of business. Networking provides such opportunities. You are exposed to different individuals who are experts in subjects that you are less familiar with. They may also have capital that your business may benefit from or perhaps you’ve heard they invest in certain kinds of businesses. Your attendance significantly increases your connection potential. Use that opportunity to build and grow.  Once you have exposed your business to likeminded individuals who believe in your company and your vision, it can secure a connection that may transform your business for the better.

Tackle unanswered questions

Networking is your “Q and A” forum. If you’re feeling uncertain about your business or perhaps your next step, use networking to share ideas, receive feedback, and alleviate your uncertainty. Additionally, speak specifically with individuals who know more that you and pick their brain.

           

Building your profile and confidence

Finally, networking is your runway. It is where you strut your stuff so that your colleagues can put a face to your name and you can build your profile. It is always where you go to gain your confidence. Most of the people you are intimidated by are just like you.  Find comfort in that. Believe in your ability, believe in your business and be confident.  

The “Money Problem”

There aren’t many scenarios in which people are repulsed by money…except of course, in the world of business. As a new business owner, conversations about money can be intimidating, uncomfortable and condescending. In a discourse where the exchange of service for currency is inevitable, it’s hard to conceptualize such a fear, but most business owners are able to recount instances where having to pick up the phone and discuss payment was a nerve-wracking as pulling teeth.  

There are three primary factors that are attributable to the money problem:

·         Value - Entrepreneurs struggle to accurately assert a price that is complimentary to the value of the service they offer. In some instances business owners quote clients/customers fees that are much lower than the product value because they fear that the consumer will not recognize the worth; the opposite is also true.  Pricing comes with a warranted level of sensitivity because quite often it dictates how well a business will perform in the respective market.  Consequently, talking about it can result in gaining clients or losing clients and some entrepreneurs are not willing to take that risk.

·         Cultural taboo - Cultures discourage discussions about money. Unfortunately, some entrepreneurs allow that inter-generational value to seep into the discourse of business. Where it is unacceptable to talk about money in the familiar institution, it is equally disrespectful in a financial one.  The symptoms of this cultural taboo are evident in scenarios where business owners are complacent in obtaining late fees, outstanding balances, and unpaid debts. Instead, they carry on quietly and accept the loss, notwithstanding instances where the obtainable amount is not of “significant” value.

·         Social Psychology, “A need to be right, and a need to be liked” - This explanation is quite simple: business owners and people in general, want to be liked and want to be right. When a conversation of money begins to occur, the rigidity of these two qualities is threatened. Consequently, a client may refuse business on such premise.

Talking about money can be uncomfortable, but it is necessary. The following strategies have been effective in relieving conversational tension on this hot topic.

·         Market Comparisons - Compare your prices to your competitors’ prices. Although this may require a little bit of research, the effort is worth the outcome. Pinpoint noticeable financial trends and assess your business on a similar spectrum. If there are businesses that price their services above average fees, evaluate their company to see why. Some businesses may offer additional services, have more qualified professionals, or may have simply capitalized on effective branding.  When you refer to your prices, quoting some of the prices of your competitors will reassure your client that they are not being lowballed. If your business is above average, make the same comparisons, but emphasize what you are offering that warrants a departure from the status quo.

·         Managing Your Motive - Why are you talking about money? How important is the conversation you’re about to engage in? These two questions are fundamental in shaping your thinking about money in business. If both responses yield a matter of urgency and your business will suffer if the matter is not addressed, it is imperative to have the conversation. On the other hand, if your sole motive is to get more money without providing a service that matches same, you’re better off not mentioning it.

·         Formal Non-verbal Communication - Talking on the phone or over a meal in a meeting may work for some business professionals, but it is not ideal for everyone.  Send an email outlining the details of pricing and be clear and direct. Not only does this alleviate some of the burden, but it also functions as binding documentation of exchange between you and the client. Further, emails accommodate, what are otherwise, high-intensity negotiations.

      

      In closing, the infamous expression, “money talks” is misleading, because money cannot talk until someone else does. And the reality is: if you cannot get rid of the money problem, it may result in a “non-existing business” problem. 

When Is The Price Right?

Much of conventional economic theory revolves around the assumption that an economy comprises rational actors seeking to maximize utility. One implication of this hypothesis is that, all else being equal, people will tend to favour a lower-priced product over a higher-priced alternative.

However, research by behavioural economists and psychologists—among them Daniel Kahneman of Princeton University—has cast significant doubt upon the thesis of Homo economicus. Contrary to the assertion that human beings tend to make rational decisions, scholars have consistently found that decision-making is influenced by cognitive biases, the perception of risk and reward, social pressures, oversimplified snap judgements or prejudices, and various other subjective factors that have very little to do with rationality.

This partly explains why many individuals choose higher-priced products, even when all else is apparently equal—the authentic Prada handbag versus a more affordable alternative; the glamorous Porsche, BMW, or Ferrari versus a high-quality, reliable vehicle for half the price; a painting by a famous artist for no reason other than its uniqueness and the renown of its creator.

In conclusion, trying to compete on price is not always an advisable strategy. But when can you reasonably expect that raising the price of an item will deliver higher revenue? When is it best to stay put or even go lower?

Subjective perceptions of price

I often pass by a restaurant that attracts long line-ups on the weekends, starting just before noon and continuing well into the evening. This establishment offers tasty Mediterranean-style comfort food, at a price that enables it to undercut its nearest competitors. Understandably, it is tremendously popular.

Yet even in this case, we can see less-than-rational economic behaviour at work. On rainy and chilly days, lengthy queues still form outside this restaurant—which suggests that in the name of a modest saving, customers gathered outside are willing to forgo both their physical comfort and their precious time. (Is it really worth it?) Adding to the complexity of the dilemma is the perception of sunk cost—the queuers may think to themselves “I’ve been standing here for half an hour already; I might as well stick it out to the end.”

On the other hand, in my neighbourhood there is a restaurant offering somewhat higher-quality Mediterranean fare for a higher price. This business has also enjoyed commercial success and recently expanded—but I have yet to encounter a line-up stretching out the door and halfway around the block.

Some customers may perceive products with higher prices to be superior, even if this is not necessarily the case. Do you want your enterprise to be perceived as a low-cost provider, a high-quality outfit that people will be willing to pay a little extra for, or somewhere in the middle? What value do you offer that others don’t? Answering those questions will help you not only formulate a pricing strategy, but more clearly define your brand identity too.

Merits of cost-plus and value-based pricing

As the name suggests, cost-plus pricing is based on tallying the fixed and variable costs that you incur to provide a good or service to your customers, and then adding a mark-up that enables you to turn a profit. On the other hand, value-based pricing is a reflection of what you believe customers are willing to pay for the product or service you offer.

Generally, cost-plus pricing is more apt for industries in which the items on offer are generic or easily substitutable, and there are many competitors. If your business is a convenience store, or sells items that are readily available elsewhere, you will probably need to maintain a cost-plus strategy and keep a watchful eye on local competitors’ prices.

Value-based pricing is better suited to industries in which the items on offer have some subjective quality—such as association with a particular brand or celebrity, atmosphere and ambience (as in a restaurant), or an inimitable experience or flavour. Businesses that deal in goods and services of this kind enjoy more pricing flexibility, and can often get away with raising prices gradually as their profile and reputation grow. On the negative side, this strategy can invite more competition, and complicates the task of establishing an appropriate price in the first place.

Determining the right price for your products is a challenge that doesn’t necessarily lend itself to a straigthtforward answer. Particularly in the early stages of a business, some trial and error may be necessary. Nonetheless, a coherent pricing strategy begins with defining the type of brand identity you want your business to embody.

Expanding Beyond Your Core Business Model

History is laden with examples of businesses that have broadened their repertoire of products and services, yielding both remarkable successes and monumental failures. On the other hand, there is really no such thing as “playing it safe.” Just as many companies have foundered by deviating too far, too fast from their traditional business model, others have lost their edge by hewing too closely to convention, like old dogs that failed to learn new tricks. A famous example of the latter is Smith-Corona, which by the 1980s had firmly established itself as the world’s premier manufacturer of typewriters, only to watch its signal technology fade into obsolescence due to the advancement of the personal computer.

Of course, the prospect of expanding a business model is daunting, and the temptation of risk-aversion is strong. But the choice to “stick with the core” entails its own risks. There are no guarantees. But there are strategies companies can employ that will enhance the probability of a successful transition or expansion.

Assess your current capabilities. Where does your business excel? What can you do better?

If you’re running a profitable business already, it’s a sign that your clientele values what you have to offer. Take the time to realistically determine your strengths and weaknesses as an organization, and where they stack up against your major competitors. Equally important, stay abreast of any new techniques, technologies, and business opportunities that your competitors may be exploring.

In his influential book Understanding Media, cultural analyst Marshall McLuhan advanced the thesis that technology—including tools, vehicles, and furniture (which he broadly defines as “media”)—are effective extensions of the human body and mind, geared toward a particular purpose. Using this concept as a framework for analysis, we can infer that a successful transition from one medium to another requires organizations to first recognize a distinction between what they provide, and the means (media) by which they provide it.

For example, the best restaurants are not exclusively in the business of serving food; they afford customers a social, environmental, and gastronomic experience. The technology corporation IBM is not merely a manufacturer of computers and software; its primary purpose is to facilitate the storage and transfer of vast amounts of information. Computers are a medium which serves that end.

Think about the primary purpose of your business, and the experience you would like your customers to have. Are there easier, more efficient, or more cost-effective ways to achieve that goal? What are the tools, or media, at your disposal?

Seek out windows of opportunity.

Once you have a clear idea of the raison d’être of your business, you can think about broadening the range of products and services on offer. Amazon, which began as an online book retailer, now distributes DVDs, music, and even fashion accessories. Netflix, once a mail-order DVD rental service that came close to bankruptcy, is now a highly profitable video-on-demand website with an increasingly global customer base. Both companies recognized that they were in the business not only of moving product, but of catering to the lifestyles of busy professionals by providing easy, convenient gateways for shopping and entertainment.

Do your research first.

 

Occasionally, the opportunity to open up a niche or neglected market presents itself, if you are fortunate or imaginative enough to find prospective customers who are underserved, or to devise a technique that hasn’t been tried yet. But in most transitions or expansions to new markets, you’ll find an established group of firms with a strong foothold. Invariably, those competitors will tenaciously resist your attempts to siphon away their clientele, and will have the advantages of experience, skill, infrastructure, existing relationships, and inside knowledge on their side.

This is why advance research is so important. Before you embark upon a new endeavour, survey the terrain. Get to know your prospective customers and their needs and habits. Identify and examine the most prominent incumbents in the industry, and understand why they are successful.

If you’ve done your homework, feel confident that you can offer a better deal than what’s already on the table in your target market, have a viable business plan, and have secured the capital and cash flow you need, then you’re ready to make a move.

Dealing With Disruptive Innovation

 Harvard business professor Clayton Christensen is renowned for formulating the theory of disruptive innovation—which describes novel products or services with the potential to revolutionize an industry, and displace incumbents from their market position. In his 1996 book The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, Christensen reflects on corporate decisions that, though ostensibly rational, failed to anticipate and profitably respond to make-or-break technological advances. He draws a distinction between sustaining innovations, which enhance the quality or effectiveness of an existing product, and disruptive innovations: technological developments which can displace a popular product altogether, especially by offering a more affordable, more accessible, or more versatile alternative.

For example, when personal computers (a potentially disruptive technology) first appeared on the consumer market, it was not entirely clear that they would supplant typewriters as the principal word-processing tool in our society. Thus, typewriter manufacturers faced a pivotal choice: to stick to their area of expertise and strive to create better and more reliable typewriters, or to shift their business model dramatically. Some firms—notably the American conglomerate Smith Corona—opted for the former, and found themselves manufacturing machines of excellent quality, the demand for which rapidly dried up.

While there are no sure things in business (after all, the penchant for innovation and dynamism is one of the key selling points of a market capitalist economy), there are some pragmatic steps companies can take to avoid being “disrupted”:

Know—and expand—your market. Maintaining relationships with customers/clients while striving to attract new (and especially less affluent) ones is key. Engage with your clientele, welcome their feedback, keep tabs on their wants and values, and consider ways to serve them better. Customer loyalty—the result of a reputation for professionalism, ethical practices, and high-quality products—can help keep your enterprise afloat as you integrate new technologies into your business model.

What are your competitors doing? Although spying on rivals is an obvious faux pas, you can derive plenty of information by building an amicable rapport with competitors in your industry. Is there a technique or technology they might introduce that would keep you up at night?

Apprise yourself of trends and innovations. The upside of innovation is that it helps us solve problems, spares us effort, and tends to build on itself. Stay abreast of the latest trends, both within your industry and in society at large. Are there any new ideas or technologies you can make use of? What aspects of your operation would you like to run more smoothly? (Don’t overlook the possibility that you could devise your own innovative solution!)

Harness the innovativeness of a start-up while running an established firm. In The Innovator’s Dilemma, Christenson refers to discovery-driven planning, which involves real-time strategic adjustments, learning-by-doing, and a bit of trial-and-error. Accordingly, firms and their managers should be willing to take calculated risks, adopting innovations that may not work out perfectly on the first attempt.

Bear in mind that there is no such thing as a monopoly on good ideas. Start-up firms tend to be nimble and creative not only because their founders may feel they have nothing to lose, but also because there is little hierarchy between workers and managers, or entrenched operational protocols, to obstruct the free flow of ideas. Don’t be afraid to ask employees what they think, and encourage equal-opportunity communication in the workplace.

Intimidating though it may seem, disruptive innovation needn’t be a threat to your business. With the right approach and attitude, you will be equipped to not only respond to potentially disruptive innovations, but to place yourself at the leading edge.

Emotional Intelligence: Another Kind of Smart

In addition to integrity and resoluteness in decision-making, great leaders often possess an intangible knack for mobilizing people of disparate backgrounds, personalities, and values toward common goals—maximizing the potential of the team.

How do they do it?

Over the past three decades, researchers have identified emotional intelligence as a crucial component of professional success, self-actualization, and exemplary leadership.

What is emotional intelligence?

Emotional intelligence, sometimes abbreviated as EI or EQ, is a term that first appeared in the 1980s, and came into popular usage after a 1990 essay by social psychologists Peter Salovey and John D. Mayer. EI encompasses motivation, emotional self-management, and the capacity to ascertain and appropriately respond to the feelings of others.

In business, EI has numerous practical applications: for example, knowing how and when to ask for a raise; expressing one’s own thoughts, feelings, and ambitions in a tactful and effective manner; soliciting and evaluating input from colleagues; managing stress, both personal and environmental; boosting morale; and avoiding procrastination.

People with higher EI scores tend to have a competitive edge

Studies indicate that, on average, individuals with higher EI scores enjoy higher salaries, and in some areas, can even outperform rivals with higher intelligence quotients (IQs) than themselves.

Israeli-American psychologist Daniel Kahneman has noted that people with higher EI are also perceived differently by those with whom they interact. Prospective clients and partners prefer to do business with professionals they like and trust, and subjective likability and trustworthiness both correlate to EI.

It’s possible to both measure and modify EI

A quick internet search will yield a series of EI tests, ranging in length and complexity. A simple one can be found here. Your results should give you a rough idea of where your own strengths and weaknesses lie.

Although EI is partly a function of innate features like personality and genetics, many experts agree that EI can be more readily modified than IQ.

How to improve your EI

One key component of EI is emotional self-awareness: the ability to identify one’s own feelings, the physical reaction that attends them, and the precise reason for that sentiment.

You may find that it helps to keep an emotional journal. Write down the thoughts that occur to you and the physical sensations you associate with particular emotions. Note that certain emotional states tend to trigger the same physical response consistently; for example, stress often leads to shallow breathing, tense muscles, and an elevated heart rate.

By recognizing and addressing these physical symptoms (through breathing exercises, for instance), you will increase your chances of managing intense emotions and their impact on you.

A few other tips:

•   Daily meditation can help immensely in dealing with anxiety, anger, and negative thoughts, and empower you with mental techniques for dealing with them.

•   Listen: Give others your undivided attention, allow them to finish what they’re saying, and leave time for them to think and respond to your statements. Pay particular attention to body language. Ask clarifying questions—your goal should be to attain as complete an understanding of your interlocutor’s ideas and point of view as possible.

•   Figure out exactly what you want, then decide how best to articulate it, and why it is important to you. Know how to ask for something: “I’d like...please.”

•   Empathize: How would you feel if you were in someone else’s position? Reflect on instances in which you felt you behaved empathically, and others in which you believe you could have done better.

•   However, don’t ruminate excessively over your past shortcomings—after all, the past is beyond your control. Acknowledge your errors, try to make amends to the people you feel you’ve wronged, and commit to avoiding similar mistakes in the future.

•   Respect and openness: Encourage others to share their thoughts and concerns. Emphasize that open, honest, respectful dialogue is an important component of the professional atmosphere you hope to cultivate.

•   Stop procrastinating. If you find a task difficult, unpleasant, or time-consuming, break it up into smaller parts. Create a to-do list, and remove unnecessary distractions from your work space. Try the Pomodoro technique: 25 minutes of work, interspersed with short breaks of about five minutes. If you’re the type who thrives on time pressure, but would prefer to finish a project well in advance, impose (in writing) a deadline on yourself, and stick to it.

Nearly everyone would benefit from better EI, especially those with leadership aspirations. Put some effort into improving your EI, and the results may pleasantly surprise you.

Growing a Company from the Startup Phase

Congratulations! You've got your startup running and things appear to be going smoothly. It took a lot of planning and hard work but it finally all came together.

Now what?

There will come a time in the life of every business when you should take it to the next level of success. Is it time to declare you are no longer an official startup but a fully-fledged business? Are you ready to make that leap? Here are some insightful tips to help you manage the next phase of your business growth:

Expanding your staff with smarter people.

Just because it's your business doesn't mean you always have to be the smartest guy in the room. In fact, you would do your company a great service by seeking out future employees who you consider to actually be smarter than you. This is a sign of confidence and strength where you're putting the needs of the company ahead of your own ego. That's a good thing!

Don't rest on success.

Hopefully, you've had a good quarter or two in terms of profits. Take a moment to celebrate and then get back to work. Resting on your laurels won't help your business move forward. You should have the same sense of urgency now as you did in the first week of your operation when you were struggling to make it a success.

Look for the repeat business.

The most profitable businesses have customers coming back time and again. By creating a loyal customer base you are setting yourself up for long-term success. Yes, you need to add to that base but you need to spend just as much effort keeping previous customers satisfied. Don't hesitate to reach out to them by offering incentives for purchases or asking for feedback. Make them feel appreciated and they'll always come back for more business.

Be a hero.

Customers appreciate when you go the extra mile to help them. If you tell a customer an order will be ready in a week, try to have it ready in half that time. You'll come out looking like a hero and they'll be back for more business. And yes, it's okay to pad an estimated delivery time because in the long run that can help you if something goes wrong.

Keep an eye on your prices.

There is a sense with every start up that they are the "David" going after the "Goliath" of their competition. They can bring down that giant by offering deep discounts to attract customers but you have to be mindful of the long game. At some point, you'll want to get your profit margins up. That can only happen when you increase prices and cut operating costs. When that happens you've really entered the big leagues. 

How to Forecast Revenues for a Company Launch

One of the first things a MBA major learns is the importance of a well-crafted business plan. A key component of that plan is forecasting revenues. This is essential if you're going to be looking for investors in advance of a company launch. Those investors will want to know how and when their money will be coming back to them. Here are the steps to follow to forecast revenues for a company launch:

Step 1: Determine Your Operating Costs

What will it cost to keep your business open? Factor in everything from rent, insurance, salaries, office supplies, marketing, manufacturing (if applicable) and miscellaneous expenses. Those will be your operating costs. You'll then have a profit margin on every item you sell. That accumulated margin needs to be deducted from those operating costs.

Step 2: Create a Customer Profile

Who are you selling to? By creating a customer profile you'll be able to anticipate shifting trends in your business. You'll also know where to target your marketing campaigns. The majority of laundry detergent is sold to the moms who do the shopping and the advertising reflects that. There is a business adage that goes, "20% of your customers account for 80% of your sales." That's why you really have to understand who you're selling to in order to make an accurate forecast. You'll be depending on those profiles to be accurate.

Step 3: Determine the Reach of Your Campaign

If you're opening a neighborhood storefront then you should know what to expect in terms of foot traffic or customers traveling to your store. However, with an online business your reach could truly be global. How will you know how far that reach can go in order to make an accurate prediction? This might come down to a matter of marketing penetration. For instance, if you're going to advertise on Facebook then you'll be able to know what type of click through rate to expect. You can build a forecast utilizing that information.

Step 4: Size Up the Competitive Landscape

Chances are that whatever business you're starting up, somebody has already beaten you to the punch. That's a good thing because you can learn a lot by studying your competition. If you can find out what type of sales they achieved you should be able to make comparable forecasts.

Step 5: Add it Up

Now that you have all of those numbers you're ready to make a forecast. The best approach is to provide conservative and logical forecasts backed by data. Being conservative means erring on the side of caution and embracing the "worst case scenario" when it comes to sales.   

Pricing Mistakes that can Slow Down Sales

Pricing your product is just as important as your marketing plan. In fact, without the right price you could see all of your hard efforts of your marketing collapse around you. Not only can solid pricing turn your account books from red to black, but it can also help engender strong customer loyalty.

You should know what it costs to make what you're selling and get it to your customer. How you determine the price on top of those hard costs could be the make or break of your business.

Here are some common pricing mistakes that can slow down your sales or even bring them to a screeching halt!

Pricing without a strategy.

Your pricing strategy should always support your company’s marketing and operational goals. If you’re holding a discount promotion on a product at below cost, make sure that you can upsell your customer so you make a profit down the road. Likewise, price raises can only work if the customer feels that they are getting a lot of value from your company. A good pricing strategy should allow your products to be sold, with long-term profitability goals in mind and also being competitive. 

De-valuing your service or product.

Underselling is just as bad as overselling when it comes to pricing. You might know down to the penny what an object costs to manufacture and deliver but what about all the other costs associated with selling that product? What does it cost for you to hire a staff, rent a space and market that product? Those line items should all be factored into your price point. Remember you're hoping for volume sales to amortize all of those overhead costs.

Chasing your competitors.

If you're constantly matching your prices to your closest competitors you could be doing a disservice to your business. Unless you're aware of the same overhead and manufacture costs your competitor is applying to their products, their pricing is meaningless. Yes, you should keep an eye on the competition and make appropriate adjustments but don't let that be the total basis for your pricing structure. This issue also comes into play if your slash a price to beat a competitor. In the short run you might get a decent sales bump but those figures could be misleading if those customers won't be coming back for repeat business because they're out looking for the next cheap bargain. Always think of the long game.

Drastic price drops.

Yes, everyone wants to pay a fair price for a product or service. However, if you find yourself dramatically dropping your price for a particular customer they might think they were paying too much for that product to begin with. You don't want to alienate your customers with your drastic pricing policy.

Obstacles for Female Business Owners

Despite the many advances that women have made in the business world there are still many obstacles standing in their way. This is especially true for the entrepreneur who is starting up her own business. None of these obstacles are insurmountable, but they should be taken into consideration when approaching the idea of starting a business.

1.      Discrimination

You wouldn’t think discrimination against women would still be an issue this far into the 21^st century. The fact remains that there are some investors and clients who still might give pause to a woman CEO. In some cases this discrimination can come from other women! This doesn’t mean that deals won’t get done with a woman in charge; it’s just that this entrenched perception is hard to shake. The good news is that the new generation of business professionals aren’t stuck in the past.  

2.      The Boy’s Club

Not every business deal goes down between the hours of 9 to 5. Relationships are fostered in all kinds of social situations like the golf country club or gym. In these cases, men gravitate towards men. It’s easy to imagine that a lot of business can be conducted over the course of 18 holes. Yes, women can play golf too but it’s an area that is dominated by men and unless you can play with the boys you won’t have that kind of direct access to potential new business relationships.

3.      The Family Issue

This is another of those entrenched perception issues. If a woman is a mother of younger children she is expected to make those children a priority. Forget the fact that she has a husband or a nanny; she’s still a “mom.” This is even more difficult to overcome with younger entrepreneurs who might start a family and require maternity leave. The truth is that ever since women have entered the workforce they have been fighting to strike a balance between work and family just as their husbands do. Hopefully, the woman business owner will have that support system in place to insure her success.

4.      Competition and Self-promotion

This is an area that could be more of a stumbling block on the part of women as opposed to an outside perception of them. Often, women have it ingrained in their psyche not to be competitive or to self-promote. However, both of those are important qualities for any successful entrepreneur. It’s important for women to move beyond “that’s how I was raised” and to recognize that the best approach to business is a level playing field. If the guys are going to be competitive, then you should as well. As for self-promotion there is nothing wrong with marketing yourself. Be proud of your accomplishments and share them with the world!

Accepting a Position as a Director in a Company

 

Being invited to join a promising young startup is certainly a boost to the ego. Clearly, your qualifications and experience have impressed someone enough to offer you a position as director. However, you have to think like a business professional. Put aside the compliments and ask “Do I know what I’m getting myself into?”

 

Because you might be taking a radical change in your career path it’s vital that you do research before accepting a position as a director. The following are some key areas you should thoroughly understand about the start up.

1)      Their Finances

Start with asking, “How much money do they have in the bank?” and build from there. What you should be looking for are actual funds and not the promise of investors coming on board. A line of credit is a good thing for the company to have but without working capital, that credit can quickly exhaust itself and add to the red ink in a ledger. Beyond the working capital, you also want to examine the company’s valuation. This will include income projections versus expenses. Bottom line: You need to get the complete financial picture.

2)      Their Competitors

Every startup begins with the notion that they are better than their competitors. It’s your responsibility to take off the “rose colored glasses” and garner a true look at the marketplace. Their competitors wouldn’t be in business if they weren’t doing something right. What exactly are they doing that your startup can’t do? The opposite question applies as well when asked about the strengths of your potential company’s abilities. Not only are competitor’s sales important to review but also their approach to marketing strategies. How will your startup do things differently?

3)      Their Investors

In your new position as director for a startup you might be charged with the task to bring in new investors. Hopefully, that company will already have a few investors supplying capital and intelligence. You would be at an extreme disadvantage if there were no investors already on board. That might prove to be too daunting of a challenge.

4)      Their Board of Directors

Who will you be working with in this new venture? This is crucial to understand because engaging in a startup will have your mettle tested. You might be asked to work long hours with this group in addition to making other sacrifices in your personal life. Will it be worth it? It’s hard to judge that until you have some tangible sales figures but you certainly don’t want to invest your time and energy with a group of directors who aren’t up to the task. Don’t ever forget that the solid reputation which earned you the offer to join the startup is the same reputation that will be at risk.

Never Stop Marketing your Small Business!

When it comes to a weak economy we’re all in this together. Yes, it’s true that some businesses manage to stay afloat when times are tough but is that because they are selling something we can’t live without or is it just good marketing? Evidence would suggest it is the latter. The knee-jerk reaction for any small business in a tight economy is to cut costs. However, you don’t have the luxury to sit on the sidelines - You should always keep up your business presence through your marketing campaigns. Here’s why:

The benefits add up

Your bookkeeping records don’t lie: You know when you had a spike in business. Can you trace that uptick to a particular event? If you sell umbrellas and a storm rages through the community then you can thank Mother Nature. Most other upticks in business can be attributed to some piece of effective marketing you engaged in whether that was a coupon, a contest or even a powerful tweet. Build on what worked in the past and embrace the idea that those benefits can be achieved again.

Your competition isn’t stopping

As mentioned, we all share in the economic burdens but that doesn’t mean you should surrender your business to the competition. Do you think they are slowing down their marketing campaigns? Even if they stop marketing, you could take advantage of the downturn to out-market them.  Beat their prices. Offer what they can’t. That’s the way to stay competitive.

Be on the lookout for growth

The best case scenario for any business is to corner-the-market. That means they’re the market leader in their industry. Even the market leader can still experience stagnation if they don’t continue to grow and innovate. Keeping up your marketing provides you with the opportunity to expand your customer base. That’s really the only way to climb out of the economic doldrums.

Think about the long game

A successful marketing campaign isn’t just about a quick infusion of cash. Although that’s going to help, you really want to think about the long game of your business success through aggressive marketing strategy. With those campaigns you’ll be building up a strong brand identity and increasing your customer base. Suppose you ran a contest and succeeded in signing up a thousand entrants? That’s a thousand names you can send email coupons three months from now. When the holidays roll around you’ll be able to send out another blast to remind those folks of what you’re offering. Now you’ve got a consistent business. That can only be achieved if you keep your marketing going. 

Easy Ways to Monitor Your Competition

Researching your competitors is important as it becomes an integral part of your company’s business strategy. By being able to track the top players in your industry, you can use that information to help improve your own services, gain new customers and increase your market share.  When doing competitive research, companies need to:

·         Understand what their competition is doing and how successful they are.

·         Identify the strategies your main competitors are using to increase sales.

In these times, it’s not that hard to keep abreast on what’s going on in the industry and especially your competitors.  If you don’t know what they are up to, then you can’t position your brand differently and won’t be able to convince potential customers as to why they should do business with you. Here are a few simple ways to keep tabs on your closest competitors:

·         Analyze your competitors’ websites. Your competitors’ websites will tell you a lot in regards to their sales and marketing strategy. Using online tools, you can review what keywords or phrases they are getting found for and targeting, analyze their backlink strategy and take a look at their editorial content. Sign up for their newsletters, and create a news alert to get their press releases. Your competitors’ website is the best place to learn about any new products or services that are launched. 

·         Follow their social media accounts. By signing for their Facebook, Linkedin, and Twitter accounts, you will be able to be follow any updates about your competitors in real-time. Don’t only sign up for the main company accounts, but also identify key employees and sign up to follow their personal accounts. For example: you can keep track of who is leaving or getting hired using LinkedIn.  Social media platforms have created some transparency, allowing you to be updated on all your competitors quickly.

·         Use Google Alerts. Google Alerts is a great tool for the entrepreneur. It allows you to scan the internet for you and emails you any updates related to keywords or phrases that you choose.  You can even enter common keywords for both your companies and see which website has the most reach. This is a great way to see what prospects and customers are saying about you or your competitors.   

The benefits of tracking and analyzing your competition can range from maintaining high search engine rankings, stealing market share or identifying weaknesses in your competitors’ services. This information helps your prepare strategically as to what your competitors are up to and how your industry is evolving. Remember, information is power, and doing competitive research can only help your company move ahead.

Are Trade Shows Necessary for Your Small Business?

A successful business can’t form in a vacuum.

In other words, for a business to thrive and survive it has to get out into the world and “strut its stuff.” Nowhere is this more important than with startups and small businesses.

However, tough economic times have many businesses reviewing how their marketing dollars are being spent. As business owners seek more ways to increase ROI, activities that generate a higher return are kept whereas ones that don’t provide any traction are on the chopping block.

A trade show is considered to be an expensive necessity for many industries, but for a small business like yours, is it worth it?

Regardless of the industry you’re in, it’s a pretty safe bet there will be some kind of trade show occurring within the next several months. Whether you’re going as an observer or as an active participant with a booth, your trade show experience can become a major boost for your business.

Here are some of the focused benefits you’ll get from participating in a trade show.

Finding leads

You’ve got a product to sell. You know who your end customer should be. However, there are some very important middle men you’ll need to find before your product ends up with all those valuable customers. These would be the distributors and other partners that could benefit from having your product as part of their catalog.

Suppose you’ve come up with the greatest flavour of popcorn. Wouldn’t you want to go to the trade show where all the movie theatre executives will be hanging out?

A trade show is the most efficient method where you’ll find your leads all in one place.

The freebies

It’s one thing to describe your product or service on your website and quite another to be able to provide an actual demonstration or sample. Participating in a trade show lets you put your product into the hands of decision makers who can be placing orders the next day.

Yes, it’s a major investment to give away samples but it’s an investment that can pay back in very positive ways.

Build your brand

A business is built on its brand.

Just like the adage – if a tree falls in the forest, but, if no one is there to hear it, does it make a sound?

If no one is aware of your company then it can’t gain a foothold. A trade show will be plastered with banners, bags, T-shirts and other give-aways that have all kinds of company brands imprinted on them. Get into that game and you’ll be able to spread your name in front of the people that matter.  

Scope out your competitors

You’ve got competition. Yes, you like to think that your product is truly unique and the only one needed by the consumer.

The harsh truth is you will always have competitors. Guess where they’ll be?

At a trade show.

This is a perfect opportunity for you to check out the competition. You’re not spying as much as seeing what they’re offering and how your product is different. Who knows? Seeing what the competition is up to might inspire you to make some beneficial changes to your business.

The press

Trade shows are covered by the media. Depending on the show and industry, that media could truly be global. This is a wonderful chance for you to get some very positive exposure. Seek out the media reps and offer them a demonstration/sample.

Don’t wait for them to come to you!

How to Make Yourself Invaluable to the Customers

Let's face the facts. If you ever believed that attracting new customers was your biggest business challenge, you were sorely mistaken. Winning customers is less than half the battle. The bigger challenge, most business owners would agree, is how to keep them. After all, if you devoted most of your energy in trying to attract a customer to you, logic dictates that someone else is also trying. Therefore, you have to work extra hard to retain that customer, rather than their moving to the competition.

But, how do you put that theory into actual practice? If you have developed a successful service or product, chances are very good that your competitor is working on an improved version. And, the improved version just may sway the customer from you to the competition.

The human aspect is a vital component of success. You have to create an environment that a customer will regret leaving. Certainly, business is about sales and strategies, finance and finesse. It's also all about people. Becoming more than a supplier of goods and services is the secret link. Learn to appreciate that your customer has needs outside of normal office hours. Be ready to go the distance for your customers and they will remember. Make their concerns your concerns, even at the risk of having a major headache. Also, think outside the box. How can you help your client's business, above and beyond what you already supply? Work hard to make yourself an extension of your client's enterprise. The customer should know and feel that you can always be counted on, no matter what or when, even if they only need advice. True, talk is cheap but it can be an investment with a fantastic return.

From the first time a new customer comes through your door, approach the moment as the start of a long term relationship. If you proceed along those lines, you will have laid the foundation for a bright future.

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Is the Competitor Your Enemy?

Running your own business comes complete with its own set of headaches and worries. Virtually every business owner has had a few sleepless nights. However, the question must be asked if perhaps we sometimes imagine problems that aren't really there. Perhaps our minds and imaginations create threats that do not materialize.
 

     A popular misconception in the world of business is that the competition is our chief enemy. While it is true that both of us are targeting the same market, it may also be true that there is enough business for both if us. Moreover, it may also be true that, perhaps, neither of us can effectively service the entire market. Furthermore, each of us may have a slightly different approach for promoting our business and both approaches are effective.
 

     The bottom line is that sometimes we expend a tremendous amount of energy in attempting to thwart the competition. But, if we were to view the competition as an ally in the business world, we could invest that energy in promoting our business.
 

     The truth is that some business leaders have learned that developing a relationship with their chief competitors can be most beneficial. After all, if the competitor wants information about your business, he will obtain it. Why not sit together and share ideas? We all can learn from others. Who is better to learn from than someone who has the same problems that you do? The old saying that "two heads are better than one" does not necessarily only mean you and your assistant. By working together with the competition – sharing ideas, establishing territories, setting standards – you can help each other conquer the world.
 
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