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Category: Build a Better Business

Niche Market

5 Ways to Attract Your Niche Market

Find your Niche Market

If you’re running a small business or are looking to jump in and start your own venture, understanding how and why you need to attract your niche market will help make your business a success. Sure there are lots of moving parts to a successful small business, but without a clear picture of your potential client and how your product or service will help them, you’ll find it hard to make many sales. Today we’re covering the 5 top ways to attract your niche market and why it’s so important to do so.

First, lets talk about what a niche market actually is. A niche market is a subset or smaller group of a market with it’s own particular needs or preferences. You can define your niche in many ways but doing so makes the marketing process far easier and much more effective because you’re tactics should should speak to the needs and wants of your market and help them solve a problem. Here’s an example:

Lets say that you’ve got a great idea for a window cleaning business. Because your business is fairly new and you’re working on building your clientele, you’re willing to clean anybody’s windows, but that’s a huge market. So lets break it down based on the types of windows you might be willing to clean – residential, office buildings (this can be broken down into 2 categories or more – skyscrapers downtown, smaller office complexes, or even strip malls, etc.), restaurants, interior windows like in a mall or larger office complex, and so on. To break it down further, you might also want to define a geographical area – your small business is based in your hometown, so picking up a client that wants their windows cleaned in the neighboring state or even 3 states over isn’t your ideal audience, at least at first. Once you’ve narrowed down your niche, you’ll be able to figure out their needs, wants, and problems to be solved and can then market and cater your services and products to them, here’s how:

Pick a Unique Group

There are plenty of niche markets out there for everyone, but you’ll want to make sure you’re selecting one that doesn’t already have too many players offering your product or service. For example, you may have a dream to open up your own snow cone shack. It’s a great idea and could be rather profitable, but take a look around first. If you reside in a hotter climate or a beach town you may already have quite a few snow cone shacks in the market. That’s not really a problem, just look to see how else you can define your niche – maybe it’s by looking at the geography of it all  and finding the one spot in town that needs a snow cones but doesn’t have them, or maybe your product quality is something that differs – you offer umbrellas, fancy straws, color changing spoons, and a variety of creams toppings with your snow cones.

Whatever you do, make sure you’re not just jumping into the “me too” niche because if there are too many players already the odds of being successful aren’t as high.

Address a Problem

It seems like defining a niche should be enough when it comes to marketing, but streamlining your message is going to help in growing your sales as well. Once you’ve defined the group you’re hoping to sell to, it’s time to look at how your product or service can help solve a problem that group has. You may not have a huge budget (or any budget at all!) for market research to start. Don’t worry, figuring out the needs, wants or problems to be solved for niche groups isn’t as bad as it sounds. If you can find a couple of people that fit your niche to talk to you’re off to a  great start. But even sitting down and brainstorming for a few minutes on possible needs will do the trick. You can start by asking yourself questions like these:

  • what type of problems do people in my niche market have? (We’ll use the window cleaning example – they may have limited budget, need their windows cleaned after business hours, have hard to reach windows, or have a security system that previous window cleaners have set off)
  • how will/can my product or service help? ( You offer a 3 month package or monthly deal for a lower price, your hours are extended and you work on weekends, you have equipment that allows you to reach high places, your window cleaners are trained on how to clean without setting off alarms, etc.)
  • which of the problems to be solved seem to be the most common? (you’ll want to choose these because they’ll speak to the largest group within your niche and attract the most clients)

Communicate Through Established Channels

This one seems to go without saying, but we’ve found that often times small businesses are so excited about marketing their products they don’t stop to think about finding out which channels or mediums for communication are best. Before you start getting your product or service out there, you’ll want to find out how those within your niche communicate or consume information. There’s no reason to pay for a TV spot if your niche market isn’t watching much TV. For the window cleaning business – a TV spot might be the right choice if you’re looking to really drill down and attract home owners, but dropping off a flyer at the local chamber of commerce, attending the next meeting of local business owners, or even stopping by local businesses might be the better choice if you’re looking to clean windows for local businesses and office complexes.

If you’re not sure what channels your niche market is using, do a little market research. It might be as simple as searching the internet or it may require that you find a few people that fit your niche and ask them for ideas.

Ask Questions, Listen & Generate New Ideas

Once you’ve got your business up and running and attracting clients from your niche market it’s time to start asking questions. You’ve done quite a bit of work already to understand your niche market, but asking questions and listening to the answers will help you generate new ideas for products and services or even come up with a way to better your existing offerings and attract more clients within your niche. Not sure how to start? Here are a few ideas on how to start asking questions of your clients:

  • offer a bonus for existing clients or a coupon for discounted services if they’re willing to answer a few questions
  • make giving feedback easy – follow up calls after a job, an email with a link to a survey, a website link at the bottom of your invoice where they can go and make comments and suggestions
  • periodically poll a handful of clients – tell them you’re looking to improve your service, offer new products, or expand and then tell them you value their advice and their business – you might be surprised at all the good info you get

Once you’ve gotten your feedback, make sure you sort through it and start brainstorming. You may even want to give those that provided you feedback a chance to try out the service first or a special discount for helping you.

Help Them Grow or Provide Them With Education

This seems like a stretch but we know that it’s a great way to attract your niche because we’ve used it ourselves. In our own business, we write a blog where we offer accounting advice and even explain quite a bit about what we do so that others can DIY their small business taxes and bookkeeping. That might seem like we’re giving it away for free, but we’ve found that it usually builds a relationship with potential customers before they even buy, which makes working with them even easier. We’ve also found that providing information and education our niche markets establishes us as an expert – those that give it a try and DIY it on their own have learned some new skills and they come back for more and might even buy later on. More often than not, we find that many of our niche market clients consume our blog posts and then decide to buy even if it does seem to stretch their budget a little. But lets say that a blog doesn’t work for your business or service, who’s ever heard or read of a window washing blog (we’ll use our own example), right? You could:

  • leave a flier or send an email about how to extend what you’ve just provided them with – for the window washer, we’d suggest a flier that gives a few ways they can keep their windows cleaner for longer, etc.)
  • teach a class – this can be online or even on a special day
  • sell your products – it might seem like you’re giving up a job but if you offered special microfiber clothes and your cleaner that helps repel dust for clients to use between visits you’d be making more cash with selling your products and still be keeping the job to do the deep cleaning
  • ask your clients what they’d like to learn or how you can help
  • create a social media account that offers helpful tips and let your clients know

What other ways are you attracting clients? We’d love to hear about it in the comments below.

Help Them Grow or Provide Them With Education

Frequently Asked Questions

1. What is a niche market, and why is it important for my small business?

A niche market is a specific, smaller segment of a larger market that has distinct needs, preferences, or interests. Identifying and targeting a niche market is crucial because it allows you to tailor your marketing efforts to address the unique needs of that group, making your campaigns more effective and efficient. By focusing on a niche, you can better understand your potential clients, improve your product or service offerings, and reduce competition by catering to a specific audience.

2. How can I determine if a niche market is too competitive for my business?

To assess the competitiveness of a niche market, start by researching existing businesses that offer similar products or services. Look for the number and size of competitors, and evaluate their market presence and offerings. If the market is saturated with many established players, consider finding a unique angle or differentiator for your business, such as a specific geographical area, unique product features, or exceptional customer service. This can help you stand out and increase your chances of success.

3. What are some effective ways to identify the problems or needs of my niche market?

Identifying problems or needs within your niche market involves several strategies:

  • Conduct Direct Research: Talk to potential clients within your niche to understand their challenges and requirements.
  • Survey Existing Data: Look at industry reports, online forums, and reviews to gather insights into common issues faced by your target audience.
  • Brainstorm Solutions: Think about how your product or service can address these problems and prioritize the most common or pressing needs to appeal to a broader segment within your niche.

4. How do I find the best communication channels to reach my niche market?

To find the most effective communication channels for your niche market:

  • Conduct Market Research: Determine where your target audience spends their time, whether online or offline. This might include social media platforms, industry-specific websites, local community boards, or trade shows.
  • Engage with Your Audience: Directly ask current or potential clients about their preferred communication methods.
  • Monitor Competitors: Observe how other businesses in your niche market are successfully reaching their audience and consider using similar channels.

5. What are some ways to gather feedback from clients and use it to improve my business?

Gathering and utilizing client feedback involves:

  • Offering Incentives: Provide discounts or bonuses to clients who complete surveys or give detailed feedback.
  • Simplifying Feedback Mechanisms: Use follow-up emails, online surveys, or feedback forms to make it easy for clients to share their opinions.
  • Regular Polls: Periodically ask for feedback on services or products to stay updated on client needs and preferences.
  • Implementing Changes: Analyze the feedback to identify common themes and make improvements based on client suggestions. Consider acknowledging and rewarding clients who contribute valuable insights to foster loyalty and engagement.
Boost Your Client Load

3 Ways to Boost Your Client Load

Business Owners have good times and bad times.  It’s important to test your idea out, have a good support team, and work really hard–consistently.  If you are doing that and feel like you need a little boost or are experiencing a slight down time, consider thinking of your down time as an opportunity to prepare for future business.  One of my clients runs a successful restaurant in a college town. Their lag time used to get them down. It’s hard to be okay with less money when everything is stretched thin already! They learned that the summer was a great time to focus efforts on their catering business which they hadn’t had time for during the school year.  After one summer of doing that and being “patiently consistent” (my term), their next year was record income!

Here are some ideas for your business:

Organization

Focus on: All the projects you haven’t spent time on.  🙂 Some ideas: CRM, email segmentations, automations, software, clean up timecards, processes, taxes, hold the quarterly meeting you’ve never held (you can call it a bi-annual meeting 😉 ), work on negotiating lower rates as your purchases have risen to deserve a discount for bulk rate.

This may seem daunting but re-visit a project here with fresh eyes.  Do a little new research to bring it back up to speed, and get working on it as quick as you can before you talk yourself out of it.  Twenty minute increments can get an amazing amount of work done! If it’s a project like a CRM, you may be able to do a simple version of it right away and then have an assistant trained to do the tedious steps after you’ve figured out how you’d like it to work best.

Follow up

Focus on: Email subscribers, prospective clients, past clients, clients who have slowed down in purchases, comment in different social media groups, admin work that’s been put off, etc.

We all know there are those prospective clients/customers who have signed up for something but never reached out to us when we responded (or maybe we never responded).  Take some time to reach out to them personally and offer them a freebie for taking interest in your company. They may not remember signing up but a freebie will put them on the positive side and then they’ll remember the product they were interested in buying from your company.  **Extra mile: Personal touch for current clients-arrange to share an additional product with current clients at a special “current client discount.”  This could be a free treat or discount off of a product you know they can use. Think of something that’s not a big deal for you to give away and use it as a marketing tactic to remind customers that you are thinking about them.

New Ideas

Focus on: Marketing new products, test marketing, sponsoring events, attending events, signing up for events, advertising, collaborating with other companies, gaining more knowledge/research for your trade/industry, etc.

If there’s something you’ve been curious about creating, take time to market test it during the slow time.  Sign up for outdoor fairs to share your new idea, or your current ones, give small gifts/freebies for filling out a survey about it.  This is the right timing to test out adding onto your business too, not when it’s brand new but when it’s been established and you happen to have a lull.  Re-examine your marketing and targeting approach too. Are you sending the right message to the right people that will actually buy your product (sometimes this is a different group than the people you want to sell to).

All in all, don’t give up.  Whether times are slow or good, a boost will come if you take care of these 3 areas and keep consistent with your marketing and social presence.  Before you know it, prospective clients will be reaching out to you nationwide, and you’d be surprised at how many past clients are happy to hear from you and were just trying to get to their follow up list as well.

Best of Business to you!!

Do You Have What it Takes to Be an Entrepreneur

Do You Have What it Takes to Be an Entrepreneur?

We work with a lot of entrepreneurs. Online sellers, professional bloggers, traditional mom n’ pop shops, rapidly growing brick and mortar specialty stores, and a host of professionals that provide a variety of services (everything from window cleaning to marketing and graphic design) to their customers, just to name a few.

Despite the vast differences in their business types, strategies, and personalities, we’ve found that there are quite a few things they have in common – we’re calling them entrepreneur traits.

And they seem to be the cause of much of our client’s success.

If you’re looking to be an entrepreneur, and are wondering if you have what it takes… read on. if you’re excited about what you’re reading then entrepreneurship is probably for you.

You maybe an entrepreneur if…

You dream big.

You have no hesitation when it comes to coming up with an idea and creating it into a full-fledged corporation overnight. You’ve got ideas that are scalable and your dreams of achievement and success include growing a business that will not only help your bottom line but will help your customers, and the world, as well.

You’re a problem solver.

Some people shy away from problems, you seem to run towards them. In fact, there’s nothing more exciting to you than a problem that you can wrestle with and come out on top. You’re constantly looking for new ways to do things, are interested in efficiency and processes. Most importantly, you’re looking at the world around you and finding real life problems that you can create feasible solutions to.

You don’t mind failure.

Being ok with failure doesn’t mean that you wallow in defeat. Instead you’re quicker than most to jump up and try again. You take notes of your failures and you’re almost systematic in how you fail – making adjustments and trying again and again in order to improve your process.

You’re a mover.

As a kid you more than likely had a hard time sitting still. As an adult, you’re constantly looking to learn new things. Movers and shakers are often entrepreneurs because they’re comfortable with keeping busy and they thrive on trying new things and executing new ideas. They’ve got a running list of things to do and they’re energized by it.

You’re hungry.

Every day you’re waking up hungry to get to work on your most recent project or idea. Instead of losing energy thinking and working on your big ideas you seem to be energized by it.

You’re all about the little things.

You never seem to be short on consistency to do the little things. In fact, you’re 100% sure that it’s the little things that make up the big successes (and just for the record… you’re completely right!)

You’re confident.

You’ve never lacked confidence in your ability to accomplish something. You’ve got plenty of skills, but you know that you’ll figure out and foster whatever skills you may be lacking if they’re needed to accomplish your goal.

You’re insecure.

With every bit of confidence you have, you have equal parts insecurity. You know that you have to be constantly learning new things and using your skills or you’ll find yourself behind the power curve. There might even be a little voice that tells you if you don’t keep learning and moving, you’ll never reach success and it’s that thought that spurs you on.

What other traits do you think entrepreneurs should have? How do you work to build these skills? Tell us in the comments.

Angry Customer

How to Respond to An Angry Customer

It’s inevitable really. When you run a small business, or any business at all for that matter, you’re bound to find an unhappy customer. It could be your product, your offered services, your shipping and return policies, or just the fact that they’re having a bad day – but when it comes to angry customers, there are right ways, and wrong ways, to handle it. So what should you keep in mind while handling a unsatisfied customer? Here are our top tips:

Set Up an IRS Payment Plan

Know your Return and Refund Policies Well

Although you should strive for a 100% satisfaction rate, it’s just not always possible in the world we live in. Some unhappy customers will be displeased enough that they might aim for more than what’s fair when it comes to returns and refunds.

But satisfying unmet (and often unrealistic) expectations isn’t worth going out of business or putting your bottom line at risk. Knowing your refund and return policies inside and out allows you to get creative when working to help unsatisfied customers. By doing so, you’ll know just how much you can give without losing money because no one ever stays in business by paying their customers.

Tip:  A good rule of thumb when managing poor reviews and complaints is to take it in perspective. If they’re complaining about something that you’ve heard quite a few times already, it might be something you really need to investigate. If it’s an issue you’ve never run into before, work to make amends, keep the issue at hand in mind, but don’t stress over a solitary complaint unless it’s something that warrants more attention (i.e. safety concerns on a product or service might be an exception)

Listen to Understand

No one likes to feel like their concerns are falling on deaf ears. If you have employees who might be the first person to make contact with an angry customer, make sure you let them know the approach that’s expected. A great phrase for an employee to follow up with after hearing a complaint is, “I can understand your frustration with fill in the blank. I’d love to introduce you to my manager so that we can make sure this issue gets resolved and we get you what you need.”

Always treat every customer as if their concerns are important to you. Listen to really understand, asking questions when needed. If an angry customer turns irate, simply address that you can see this is creating a large concern for them, and then ask that they lower their voice or suggest that you have the rest of the conversation in a quiet and more private location.

Communicate With Respect

With online review sites, social media rankings, and a myriad of other places for customers to log their complaints, it seems like you and your business might be under fire.  The anonymity that accompanies these methods often leads clients to believe they can say anything without hurting anyone. But it isnt’ true, individuals and businesses alike can suffer dire consequences from a lack of communicating with respect.  Here’s what we suggest:

  • Take a moment before you respond – how long you take depends on the situation, but it allows you to manage emotions and also think through what options you’re really to offer
  • Discourage inappropriate language or name calling – there are plenty of ways to communicate without these options and they should always be used when in a business or professional setting – by all parties
  • Keep venting to a minimum – talking through a situation with another employee or a manager is fine. Hashing out a bad customer experience with everyone is just fueling the fire.  If you’re having a hard time shaking it off, take a break, or ask your boss or business partner to handle the next few customer interactions. Then work to figure out a way that you can develop a thicker skin when handling customer complaints and put it into practice.

Impact of Retirement Accounts and Investments

Wow Them with Your Approach

So far, we’ve covered how to handle the basics of customer complaints. Now we want to cover how to turn a poor interaction into a good one so you leave your previously unhappy customer with a good taste in their mouth. Here’s a few ideas on how to make that happen:

  • Respond in like manner – we don’t mean match their tone or attitude, but rather communicate with them in like kind or one step above. If a customer leaves a bad review, promptly respond to the review online, but also consider calling or emailing them to follow up and see if their are additional concerns. If they come into your office or store to complain, discuss the concerns face to face – to step it up a notch, consider introducing your manager or the owner
  • Gratitude goes a long way – whether we like it or not, negative feedback is probably more effective for us as small business owners than any positive reviews we might receive. Why? Because with complaints we can start to explore ways to improve and grow our products and services. Saying a sincere thank you for helping you understand, improve, or make things right is going to make a major impact – and those customers often are the ones that become your biggest fans.
  • Make it known that you want to make it right – when conversations get heated or turn into a laundry list of complaints it’s easy to just jump to the quickest solution and hope that it stops the complaint dead in it’s tracks. But before you go to work on firing back excuses or solutions it helps to let the customer know that your top desire is to make it right. After you offer any retribution  or refund that you’re willing to provide, you can ask if there’s anything else that you can do. If they give you an answer you can’t say yes to, then simply apologize for the inconvenience and express again that you’re grateful that they were willing to communicate with you so you could do your best to make it right. There is no reason to make excuses or give details as to why you can’t fulfill their additional requests.

How else do you handle angry customers and negative reviews? We’d love to hear your ideas in the comments.

FAQs about Handling Angry Customers and Negative Reviews:

What’s the significance of knowing return and refund policies when dealing with unhappy customers?

Understanding policies helps balance customer satisfaction and business sustainability. It allows flexibility in resolving issues without compromising profitability.

How should businesses approach complaints that seem repetitive or unique?

Repetitive complaints signal systemic issues needing investigation. Unique complaints merit attention but shouldn’t cause undue stress unless safety or critical matters are involved.

How crucial is respectful communication when responding to negative feedback?

Respectful communication is paramount for reputation management. It entails thoughtful responses, discouraging inappropriate language, and avoiding public venting, fostering professionalism.

What strategies can turn negative interactions into positive experiences for customers?

Respond promptly and considerately to complaints, showing willingness to address concerns personally. Express gratitude for feedback, emphasizing the commitment to rectify issues and improve.

How can businesses navigate customer demands beyond their capacity to fulfill?

Prioritize customer satisfaction while acknowledging limitations. Offer sincere apologies, express gratitude for communication, and strive to resolve within feasible boundaries, maintaining goodwill.

Top Tech Tools for Your Small Business Tool Belt

Top Tech Tools for Your Small Business Tool Belt

Every small business needs a tool belt.  Initially many small businesses start out with an idea, a plan, and then grow to crazy and out of control without knowing how to organize/fix the problem.  Many successful small businesses have learned that it’s important to devote resources (ie: time and money) to a few top tools. Small business ownership requires a customizable tool belt with different tools to do different things…

  • Coaching/Consulting companies need: CRM,  Emails Automater, Project Management, Images, Social Media Scheduler….
  • Online Sales companies need: Really great online shop and really great website…and then the other things mentioned above
  • Preschools/Dance Studios/Companies that offer classes need: really good online scheduler, website, online payment, online registration form, and all the other things mentioned above.
  • Restaurant/Bakery companies need: Great following on social media, Email blasts, pics of food, really great website
  • Blogger/Vlogger companies need: Great internet connection, microphone, upload speed, editing software, etc.

 

With these types of companies in mind, there are other adjustments to be made of course, however here are a few of our favorite tech apps and solutions and why we love them.  Don’t take our word for it, what are your favorites? What have you thought about these options?

  • CRM: Customer relationship management tool Hubspot is online, cloud based, free, but with options to move up with a larger company size.  This is ideal for tracking sales goals, information about prospective clients, current clients, and what calls/emails need to be sent and when.
  • Graphic Design Tool  Canva, Lets you easily create many free beautiful graphic design pieces for free, and they have stock photos for cheap/free as well.  Whether you need to create a post for social media, a Facebook cover image, a flier, or poster, this makes graphic design something very easy to accomplish in no time.
  • Project Management: Everyone needs a tool that tells them what to do and when, all while assigning tasks out to other people and being able to communicate/attach the pieces that go with that task.  I have a few favorites (remember, I am in LOVE with Project Management) Asana-very professional, sleek design, Trello, very similar but with a more casual design, Airtable-easily becoming a more popular option, made of spreadsheets that can do everything you ever wished a spreadsheet could do! ,
  • Team Communication: Slack, This is great when you want to chat about different pieces of a team project, send documents that you aren’t sure are ready for a project management board, and question your boss or employees about how they do their job (we all have those days 😉 )
  • Emails Automated: MailChimp – This software is like an onion, it has many layers.  In it’s most basic form, your team can send emails to your clients/potential clients.  In a more complicated form, your team can set up sales funnel email chains to send automatically, create lead pages, track SEO from different links created, send out invites to events, attach video, images, and audio all without (or with if you choose) using code and looking great while doing that!
  • Social Media Scheduler:  Hootsuite -Schedule multiple posts to go out through multiple social media platforms at different times of the day/night and then track who says what about those posts, what the current #hashtags are, and how your posts stack up in their SEO competition.  My favorite function is getting a whole month of social media posts scheduled to be sent out in a couple of hours.

Coaching/Consulting companies need

Here are two videos I made on my Facebook page previously that talk about these options and more in-depth.  Getting my contacts organized and Funnels and Favorite Small Business and Life Hacks .   Let me know what you think and what has worked for you.  Thanks for all you do to build the small business community in a STRONG way!

Frequently Asked Questions:

What essential tools do coaching/consulting companies need?

Coaching/consulting firms benefit from CRM systems, email automation, project management, and social media scheduling tools to manage client interactions efficiently.

What are the key requirements for online sales companies?

Online sales businesses require robust e-commerce platforms, high-quality websites, and tools like CRM, email automation, and project management to support their online operations effectively.

What tech solutions are crucial for preschools, dance studios, and class-based businesses?

These businesses necessitate a reliable online scheduler, website, online payment system, registration forms, alongside CRM, email automation, and project management tools to streamline operations.

How can restaurants and bakeries leverage technology for success?

Restaurants and bakeries can benefit from a strong social media presence, email marketing campaigns, appealing food imagery, and a well-designed website to attract and retain customers.

What are the essential tools for bloggers and vloggers?

Bloggers and vloggers require a stable internet connection, quality microphone, fast upload speeds, and editing software. Additionally, they can utilize CRM, email automation, and social media scheduling tools for audience engagement and growth.

 
 
 
6 Month check-up on Small Business

How to Perform a 6 Month check-up on Small Business

Every business needs to perform a 6 month check up on their company.  If you are good, you perform those along the way as well, monthly, weekly, daily, but a 6-month check up should consist of 3 different areas:

  1. Value Chain Analysis

  2. SWOT analysis

  3. Revisit Quarterly & Yearly Goals

1.What’s a Value Chain Analysis?

This is where you look internally at the process piece of your company and see how you can improve in each area of running your business.  This is very tricky to do impartially, but you need to be honest for your business’ sake. What bottlenecks do you see right now (don’t allow yourself to say, “that doesn’t count because we’re waiting for a part to solve that bottleneck, so we already know about that”–no!  Be honest and write everything down. Remember, this is merely a survey and not a “To Do List.”

Areas of Analysis:

Support Activities:

  • Firm Infrastructure: Systems/Routines

  • HR: Recruitment; Formation

  • Technology Development: product design

  • Procurement of Resources: ensure resources availability

Primary Activities:

  1. Inbound Log: Reception, warehousing, distribution of tasks

  2. Operations: how administrative tasks get accomplished

  3. Outbound Log: Storage, transportation, product distribution

  4. Marketing & Sales: CRM, advertising, social media, email blasts, etc.

  5. Customer Service: warranty, maintenance, referral rewards, discounts, etc.

2. What are your company’s Strengths Weaknesses Opportunities and Threats?

These questions are also hard to be impartial about, but this is very important to be honest here as well!  Strengths and Weaknesses have to do with your company’s skills and abilities.  Opportunities and Threats have to do with what is going on in the industry and marketplace and how can your company be benefitted or deterred due to Social, Legal, Environmental, Political, and Technological changes that are here or upcoming.

Why revisit Quarterly and Yearly Goals

3.  Why revisit Quarterly and Yearly Goals?

Yearly goals have to do with benchmarks, financial forecasts that you’re company wants to meet. Quarterly goals are more the month to month operational/sales goals your company has created in conjunction with smaller financial goals in order to meet the Yearly goals.  If those goals are in a file that is never brought to light, what are the chances that your company will be able to meet them? Something important to remember is that those goals can change. When planning out a whole year many things change, Marketing, Technology, the best Processes for your product funnel, etc.  Don’t feel bogged down and embarrassed to look at those goals. Be honest about where your company is with those. If you have decided to do something different, put the old goals in your “backlog” for later. If the industry has changed and there’s a new way that works better to accomplish your goals, don’t continue to follow the old plan just because you worked hard on it.

Outline of Quarterly/Yearly Goal Meeting:

  • Review:

    • Vision: why your company does what it does

    • Mission: who your company provides services/products for

    • Strategy: how your company provides those services/products

    • Yearly Goals: financial/operational goals

    • Quarterly Goals: marketing/technology/process

  • Are you meeting those?

  • Do any changes need to be made?

  • What are the top priorities?

  • What can be pushed to the next year/6-months?

identify my company's Strengths, Weaknesses

After this assessment, don’t start searching for a paper bag.  This is not meant to be overwhelming but can even SAVE you TIME believe it or not!  You’ll need to take your assessment and decide which pieces of your business need to change right away, which are right on track, and which can wait until the next quarter or year.  Personally, I have a hard time with reevaluating because I feel like I’m throwing away hard work. Putting projects into a “backlog” where I can still call them back to attention when I need ideas is a great way to make sure your business is running at top efficiency and not wasting time spinning wheels when ideas are needed.  As you get used to taking these steps every 6 months, your processes will be streamlined and you will not have huge, hair pulling out bottleneck issues that have gotten worse over time. You CAN DO THIS!!!

Frequently Asked Questions:

What is a Value Chain Analysis and why is it important?

A Value Chain Analysis assesses internal processes to identify areas for improvement within your business. It’s crucial for enhancing efficiency and productivity.

How do I identify my company’s Strengths, Weaknesses, Opportunities, and Threats (SWOT)?

Evaluate your company’s skills and abilities for Strengths and Weaknesses, and consider external factors like industry changes for Opportunities and Threats. Honesty is key.

Why should I revisit Quarterly and Yearly Goals?

Quarterly goals drive month-to-month operations and sales, while Yearly goals set financial benchmarks. Regular review ensures alignment with company vision and adaptability to industry changes.

What should I consider during Quarterly/Yearly Goal Meetings?

Assess your company’s Vision, Mission, and Strategy alongside financial and operational goals. Determine if adjustments are needed, prioritize tasks, and update plans accordingly.

How can performing a 6-month check-up benefit my business?

Regular assessments prevent inefficiencies from escalating, saving time and resources. By evaluating and adjusting processes every six months, businesses can maintain optimal performance and adapt to changes effectively.

 
How to Find the Right Business Licenses

How to Find the Right Business Licenses and Permits for Your New Business

How to Find the Right Business Licenses

Starting a business takes a lot of work. No matter which direction you turn, there seems to be a hundred different things to do with a million little details to figure out. Getting your business set up correctly from the start means you’ll be off on the right foot and not have to back track to do things right after you’re business starts to grow. But what do you need to start a business? It might not seem so simple if this is your first time launching a new venture, so we’ll start by covering the basics of licenses and permits.

Finding the Right License or Permit for Your Business

It’s true that one of the main reasons for licenses and permits is so that the government can track your revenue for tax purposes. However, it’s not the only reason you’ll want to make sure you have the right business license or permit. Licenses and permits also help protect the public (and that includes you when you’re acting as a consumer of products and services from the businesses around you).

Every type of business has varied requirements for the type of business permits and licensing that it requires. A lot of it depends on the type of industry and the location you’re operating in. The best thing you can do is figure out the type of business you fall under and then work from there.

What Type of Business Do You Have?

There are a variety of business types, but we’ll go through the most common ones and you’re sure to find that you fall into at least one category. Grab a piece of paper and a pencil so you can jot down notes and make a to do list so you hit the ground running.

  • Home based businesses or sole proprietorships typically need a permit from their local government to operate legally. If you operate under your name, you may not need a DBA, but if you’re using a business name and still filing as a sole proprietor, you’ll need to find out the specifics of filing for a DBA.
  • If you’re selling goods or services, you’ll more than likely need to get a sales tax license or a permit.
  • Professional licenses, signify the expertise level that an employee or business owner has – veterinarians, doctors, hair dressers, etc. – they all have professional licenses that need to be kept up to date.
  • Federally regulated industries, such as aviation, alcohol, agriculture also require specific federal licenses or permits.

Once you know what type of business you fall under, you’ll need to check your local state government page to see the specifics of what’s required for your state. You can access license and permit info for your state here.

Making Sure You Keep Up With Licensing

Making Sure You Keep Up With Licensing and Permit Renewals

Once you’ve filed for and obtained the proper licensing and permits, you’ll need to be a responsible business owner and make sure to maintain them. These expenses can be counted as the cost of doing business and can be used as tax write-offs come tax time. Here’s what we recommend to manage the paperwork that comes with our business license and permits:

  • keep track fo renewal dates – set an appointment a week or two in advance in your phone so you make sure you don’t miss the deadline. It’s also smart to keep the links to the appropriate paperwork and web pages you might need so that you don’t have to waste a lot of time searching.
  • keep a copy of the paperwork you submitted for your current license/permit. That way you have it on record and if you have to reapply as part of the renewal process the majority of the information can be easily transferred over from your last application.
  • Make sure to display your licenses and permits in an easy to view location and that they’re properly protected. Some states actually require that you display them in a prominent location so customers can see them.
  • Pay attention to what’s needed if you expand your business. You may need to apply for additional permits or reapply or a different type of business license if you’re growing quickly.
  • Tax permits are different than the normal business license or permit, but you will need to also check out what types of things you’ll need to do to register for the appropriate tax permits and whether or not you need an EIN.

Operating a Home-Based Business – Make Sure You’re in Compliance

Out of all the business types, home-based businesses are often those that are found not in compliance when it comes to business licenses, permits, and keeping up on taxes. Our guess, is that often, the owners consider their business a hobby, aren’t looking to grow it to a substantial size or even think of what they’re doing as a business. We get that, but as accountants, we’d recommend filing for and maintaining the proper licenses so that your business can flourish.

Permit for Your Business

So what type of business do you have or are thinking about starting? Have you started working to obtain the proper licenses and permits? How can we help?

Frequently Asked Questions

1. What licenses and permits are needed to start a business?

To start a business, you’ll need various licenses and permits depending on your industry and location. Common ones include a local business license, sales tax permit, and professional licenses. Check with your local and state government for specific requirements.

2. How do I determine which type of business license I need?

Identify your business type (e.g., home-based, professional service, federally regulated) and check your local state government website for specific licensing requirements. This will help you determine the appropriate licenses for your business.

3. How can I ensure my business stays compliant with licensing requirements?

Maintain compliance by tracking renewal dates, setting reminders, keeping copies of submitted paperwork, and displaying licenses prominently. Ensure you update licenses if your business expands or changes its operations.

4. What happens if I don’t obtain the necessary business licenses and permits?

Operating without the required licenses and permits can result in fines, penalties, and potential closure of your business. It can also damage your business’s reputation and legal standing.

5. Do home-based businesses need licenses and permits?

Yes, home-based businesses typically require local government permits to operate legally. Even if it’s a small venture, obtaining the proper licenses ensures compliance and can benefit your business’s growth and legitimacy.

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Small Business Accounting School: Accounting Terms To Know

Summer is almost out and Pomp and Circumstance is queued up at schools across the country, but when it comes to Small Biz Accounting School, we’re just about to be in session. With tax season finally over for another year, we’re looking towards helping small business owners, entrepreneurs and solopreneurs alike by giving them a summer school version of accounting school. While it’s true that we won’t be handing out diplomas or prepping anyone to sit for their CPA exam, we’re more than ready to help anyone interested in handling the finances and bookkeeping of their small business.

Each week over the summer, we’ll be posting another session of Small Biz Accounting School  and covering topics that will help you manage your business, your books, and accomplish your entrepreneurial dreams. Knowledge is power, and it’s time to get financially set to grow your business and increase your green.

First things first. To understand any subject, you need to have a sound understanding of the basic principles and vocabulary that’s commonly used. When it comes to accounting, we often get blank stares, but it really isn’t as hard as it all seems to be. This week, we’ll be covering the Top 10 Accounting Terms Every Business Owner Should Know.

Test Your Knowledge with this Quiz

How to Spend Less & Still Run a Profitable Business

How to Spend Less & Still Run a Profitable Business

When it comes to finances, it always seem like the goal is to spend less and do more; and when it comes to running a profitable business, you want to spend less but still earn more. It sounds easy enough, but the trouble with business is, it takes money to make money and if you’re trying to increase your gross, it usually takes more effort, not less. That said, it’s still completely doable you just have to know how to slim down on your expenditures without sacrificing  the processes you have in place. The best place to start… your books.

As accountants, we always recommend keeping a close eye on costs and managing the books on a regular basis, but we often get questions on what business owners can do if they’re specifically looking to cut costs. If this is your goal, there’s no better time to figure out how to save a penny or two, than when you’re sitting down to go over your books. Take a look at the money going out, highlight recurring expenditures and any large sums. Then take a list of our top tips (they’re easy to implement) and see if you can’t work them into your overall business strategy.

These tips might not be new, but they’re perfect for any small business owner or entrepreneur. Apply one, or apply them all and you’re bound to see an increase in green while your overall expenditures decline.

Check out the top tips for spending less while still running a profitable business here….

The Most Common Inventory Tracking Mistakes for Small Business & How to Fix Them

The Most Common Inventory Tracking Mistakes for Small Business & How to Fix Them

Common Inventory Tracking Mistakes for Small Business & How to Fix Them

Running a business is no easy task. There’s marketing, production, managing your sale point (either online or brick n’ mortar), social media, sourcing raw materials, managing employees, and so on. One of the most important and overlooked, areas of your business is the product, or inventory,  that you sell. It’s what drives customers to your business and is the bread and butter of your business. Without your product, your business would sink. But who has time to keep track of inventory, let alone fix the problems that seem to crop up constantly when you do try to track your materials, stock, and sales.

Today we’re sharing some of the most common mistakes we see when it comes to small businesses managing their inventory, and providing you with some simple ideas on how to fix them and why they might be occurring in the first place. We believe that finding out the cause of the problem is almost as important as solving it (and it usually makes it a lot easier to solve, when you understand why). Now lets start talking inventory systems.

Common Mistakes on Managing Inventory

Problem: Too Much Inventory

Reason: Small business owners work to hard to just a let a potential sale pass them by. That said, it happens most when they don’t have the products in stock. To make sure that missed opportunities aren’t the usual, entrepreneurs and small business owners alike usually error on carrying more product rather than less. So why exactly is this a problem? Well, holding product actually costs a business money – rent for the storage space, the chance that a product on a shelf may become damaged, etc. It’s great to be prepared for a potential sell, but not if having the product on hand is going to end up costing you more than you’d make.

How to fix it: Start with some basic forecasting. Start, by just figuring out the average sales per month. Then, plan to hold at least that number in inventory (maybe adding a few to provide you with a buffer).  Next, look at your sales for the last year, taking note of when spikes occur. Trending like this is called seasonality (i.e. accountants always see a huge spike in demand around tax time, greenhouses and plant nurseries see a spike in sells during the spring, etc). You can also look for month end spikes or those that seem not to be seasonal and see if they occur during certain promotions you’ve run ( this is a great way to also figure out which marketing promotions work best for your company and product).

Problem: Inaccurate Tracking

Problem: Inaccurate Tracking

Reason: It happens to every business owner. You get busy, things fall behind, and in you efforts to make the sale, you find that your books aren’t up to date and your inventory tracking might not be as accurate as you thought. To be honest, the chance of miscounting can happen at almost any spot in the process – during receiving, order fulfillment, and if you’re in manufacturing, you’re bound to lose some during bad runs and scrap production.

How to fix it:  It used to be that bar codes and SKUs were only for big business. But now, even mom & pop shops and online storefronts such as Etsy, Shopify, and Ebay provide the functionality for some form of inventory tracking. Putting a system in place  if you don’t have one is the first step to fixing it. However, if you’re already using barcodes or SKUs it might be time to up your tracking game. Implement “cycle counting” – choose a few items each day or week (depending on how quickly you move inventory) to count. Then compare your number to your inventory record. Your shop’s best sellers should be counted more often. How does cycle counting help? After awhile you’ll have a pretty good idea the difference between the actual and recorded numbers, making it easy to estimate your actual product holdings so you’re sure not to oversell or overstock. You’ll also be able to have a better idea of what products are actually turning over quickly – which is a big help when you’re deciding on new product offerings.

Problem: Using Spreadsheets

Reason: Programs like Excel, Google Sheets, and other spreadsheet software programs are fairly well understood amongst the work force. Plus, they’re usually something most businesses already have access to. Just because it’s common and free doesn’t mean it’s a great tool to use for tracking inventory – here’s why. Spreadsheets are easily deleted and information can be inputed incorrectly. If you’re sharing a spreadsheet amongst several employees, the odds of incorrect information, input errors, or not saving information multiplies. Not to mention, the fact that a spreadsheet isn’t the best way to show information in real-time.

How to fix it: Invest in a software program that actually has features that can eliminate the problem – Quickbooks or Peachtree are just two that are fairly common and easy to use. These programs are definitely well known for their accounting packages, but they also include features that will make it easier to see your inventory numbers and the dollar values of your stock.  Not to mention that having a central database (both of these programs offer this feature) allows anyone that may need access to see things in real time because multiple people can be working in the files at once.

Problem: Using Spreadsheets

Problem: Lack of Priorities

Reason: It takes time to track inventory. There’s no easy way to get around it or technology that can completely eliminate the work that’s required to count and manage stock. If you’re a solopreneur or a small company that has dozens of product offerings, you’ve just multiplied your workload by well… a lot.

How to fix it: Pick a place to start and get moving. Our rule of thumb is to take a look at the products that seem to matter most. Most of the time, 80% of demand will be generated by 20% of your items. These are your A list items and should be your main focus. All of your products are important, but prioritizing your products by sales will help you make sure you’re tracking the most popular items (which makes you the most profit) first and then you’ll have more time to spend on the B and C list items that are still making you money, but that might not be driving the bulk of your sales.

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Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

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