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Category: Business Tips

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!!

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.

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.

 
 
 

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

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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Business Plan

Whether you are braving the pitch world to find a financer on Shark Tank, or you are striving to get your team organized, you need a KILLER business plan.  What exactly does that mean? Is it just an outline? Is it a letter to a bank? Is it a report? I’m sure it has trendy business graphs!!…What else do you need? What EXACTLY are the “powers that be” looking for in a confident and solvent business?

There are 5 main parts business professionals (financial tycoons) are looking for and they really aren’t that hard!

  1. What does the playing field look like in comparison with your business/product? There are 2 high-level ways to do this: SWOT and Porter’s 5 Analysis of your business.  This basically is the business world’s way of asking: What is your business good at?, bad at?, what is the rest of the industry good at?, and how can your business create opportunities in the industry?
  2. What is your company’s Mission, Vision, and Strategy?  This seems simple, but the business world is looking for how your company messaging, purpose, organization, and plan of action are intertwined with the plan that you have to move forward.  This shows your business will be able to follow through with the plan, make changes along the way, and work hard to achieve the plan you are proposing. They feel that if you are committed to something, it will show through the lifeblood and purpose of the company.
  3. What does it mean to them?  The mentality of a 5 year old definitely applies here, in a good way!  When preparing to fund a business venture you need to think selflessly about your dream business.  It’s hard. This is a time that is easy to become offended, brings up emotional memories, and takes strides of courage.  Just remember, they need to know why it’s important to them and why people should care about your best invention ever.
  4. What’s the Plan?  You’ve buttered them up, explained the business, explained why they should care, now you need to bring the organizing PIZZAZZ!  (Not JOKING) When investing in a company/idea, people need to see that your business has thought through contingencies and clearly and concisely can get from point 1 to point 10 and all you need is a little boost from them.  This should have general steps that show you know your weaknesses and how to overcome them, test groups, adjusting and re-adjusting the plan, specific dates and milestones, prep prior to and post product launch.
  5. Where’s the After Party?  Why would they want more?  They didn’t ask for more…but you need to show them you are prepared.  Give them pre-launch survey results, a chart outlining the key milestones with dates assigned, and another simple chart that shows and how long it will take until the business is profitable and then what the profit will look like after breakeven and on into the next quarter/year. Sample flyers and mock ups of what they can expect and that show what success looks like are never overboard but just help to build the vision you are hoping they’ll catch.

That’s pretty easy!  Make sure to go through your data and get it right, practice what you’ll say, their names and titles, etc.  If you are just doing this for your company, it is a GREAT place to build team vision for the future. Rally your group around you, share the plan, hand it out to everyone that needs one, and say a few inspirational words, a GO TEAM, and then get to work with the follow through!  I know your business will be successful as you are prepared. Don’t be afraid to make a bold move. You have amazing ideas and the world needs more amazing ideas these days!

Killer Business Plan

In conclusion, if you’re facing challenges managing your business accountancy and tax, don’t hesitate to reach out. With Vyde Your Own Accounting Department, you get all the services you need in one place. Remember, preparation is key! Gather your data, practice your message, and inspire your team with a shared vision for the future. Bold moves lead to great successes, so embrace your innovative ideas. The world is ready for them! Let’s work together to make your business thrive—contact us today!

1. What are the essential components of a killer business plan?

A killer business plan typically includes five key parts: a competitive analysis (using tools like SWOT and Porter’s Five Forces), a clear mission, vision, and strategy, an explanation of why your business matters to potential investors, a detailed plan of action with milestones, and projections for profitability and growth.

2. How can I conduct a competitive analysis for my business?

You can conduct a competitive analysis using methods like SWOT (Strengths, Weaknesses, Opportunities, Threats) and Porter’s Five Forces. These frameworks help you assess your business’s strengths and weaknesses compared to industry competitors, identify market opportunities, and understand external threats.

3. Why is it important to explain the mission and vision of my company?

Clearly defining your company’s mission and vision helps convey your purpose and long-term goals. Investors want to see how your messaging aligns with your strategy and how committed you are to achieving those goals. A strong mission and vision demonstrate that your business is driven and focused.

4. What should I include in my action plan for potential investors?

Your action plan should outline clear, organized steps from the initial concept to execution. Include specific milestones, contingencies for potential challenges, timelines, and methods for testing and adjusting your approach. This shows investors that you have thoroughly considered the path to success

5. How can I demonstrate future profitability to investors?

To demonstrate future profitability, provide detailed projections, including breakeven analysis and profit forecasts over the next few quarters or years. Use charts and visuals to illustrate key milestones and expected growth, and consider sharing survey results or mockups that visualize your success.

 

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….

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.

Email. Written communications that fly through the internet and appear in our inboxes. Whether it’s for a job, personal communication, or merely to collect junk mail, almost every person has at least 1 email address. And whether we like it or not, a lot of our daily communication happens through this tool. If you’re using emails in the business world, you’ve probably seen plenty of grammatical errors, poor communication, and downright tacky habits displayed through email. Yet, if we’re supposed to be influencing others, building our resume, and earning the mighty dollar, how we communicate through email, could make or break us.

Don’t  believe it?

Recent studies show that in 2015, the number of emails sent and received per day total over 205 billion with this figure  expected to grow, reaching over 246 billion by the end of 2019. The estimated number of emails sent and received by business users in 2019 is 126 per day. Our messages may be short, but it’s more than obvious that a lot of our communication is happening through this medium

Whether you’re a business owner, newly-hired employee, or recent college grad looking for a job, we’ve gathered 5 tips for email etiquette and know that even just a brief read can help you to improve your communications through email with co-workers, potential employers, and  your targeted demographic:

Pick the Right Communication Form

We just told you that email is a widely used form of communication. However, it’s important to remember that it might not always be the best means of communication. Using email correctly means that first and foremost you’re using it when it fits your communication needs. Nothing can bug co-workers more than when things are communicated poorly and in a form that doesn’t catch their attention. Consider if email is right for your message by thinking through the following:

  • is your message time-sensitive?
  • could your tone be misconstrued on the topic and will that be a key factor in determining the outcome?
  • is your information highly detailed and need to go to a lot of people? (consider setting a meeting to overview your content if the answer to this question is yes)
  • is your subject matter time-sensitive?

Just because email is easy, don’t hesitate to pick up the phone, send a quick text, or walk over to their desk. It’s true that leaving a paper trail can be a good thing, but if that paper trail leads to hindering the communication process, it’s time to think of alternative ways to communicate.

Don’t use Text Speak

When it comes right down to it, there are two sides to this debate – those who love text speak and those that don’t. Either way, when it comes to email, the use of text speak has become the new “don’t use all caps” rule (and yes, that one still applies as well). Shortened words, common acronyms, popular phrases and the use of emojis are probably better left to texts and personal emails rather than those used for business. Don’t let the fact that most emails are written on smart phones and tablets fool you. Just because these devices use predictive text technology and it suggests that text speak and alternate spellings are good options doesn’t mean it’s ok. In fact, we’d advise that relying on the spell checker features provided by your device of choice isn’t ok either – a “real human” read through is always appropriate before you hit send.

Put the Most Important Information First

Lengthy emails are sometimes necessary and although we’d recommend trying to trim your text as much as possible we get that’s not always going to be an option. If that’s the case, we recommend chunking your text into appropriate length paragraphs, adding subtitles, and using the option to bold the typeface if necessary. If you’re listing off action items in your text, why not put a short bullet  list of those right up front with assignments to those who might be included in the email. You can also add a note that there are additional details in the text so that they’ll check there before getting back to you with questions.

Use the Address & Subject Lines to Your Advantage

With email, you have the ability to contact a lot of people at once. Mass emails are nice when you’re trying to disperse your information quickly, but you need to make sure you’ve got the right players involved and in the right places. Here’s what we’ve found to work well with the address line options of your email:

  • TO – the recipients included here should be key players on the project, have action items, be the decision makers, or be in the “need to know” group
  • CC – these recipients may be managers who oversee a task’s completion, need to know the information but might not be one of the key players, or be in a support role where they will implement whatever is included in the email as part of their daily job or process
  • BCC – is most commonly used to create a paper trail for important projects or decisions. Use it to keep managers informed, keep HR apprised of what’s happening, or keep a higher level manager involved without having them be a known player (useful if you want to keep things comfortable for your employees but keeps the boss/owner involved without any added stress)

The subject line is probably the most important line of the email. This is where you tell people what it’s about, what you need, or how they’re involved. If you can do all of those without having it be extremely lengthy, you’re a maverick when it comes to proper subject line usage. Here are a few ideas on how to up your game with subject lines:

  • use a call to action and put it in all caps – MEETING, FOR REVIEW, FINAL CALL, REQUEST FOR, FINAL FILE, FORECAST SUMMARY, QUESTION, etc. are all great ways to draw attention and say a lot with only a few words.
  • put in a deadline – use numerical listings for dates or even better – FRIDAY, 4/13. Short and sweet keeps people on point and arms them with the most important info right from the start

Fonts, Backgrounds, Color, and Gifs Aren’t Welcome

It might be great for a school newsletter or appropriate for marketing materials, but business emails aren’t the place to get fancy when it comes to color, fonts, backgrounds, large logos, or your favorite gifs. A general rule of thumb is to leave out color and backgrounds entirely, despite the fact that color is often used in emails where you’re doing the Q&A interaction. Where those Q&A emails might seem like a good fit, the odds are that those communications are better for a face to face meeting (see Pick the Right Communication Form above). You’d also might be surprised that answering several questions in one email is completely doable and doesn’t require any additional color – just straightforward communication.

We do recommend the use of your title, company name, and contact information in your email signature, but we discourage the use of large logo files attached to your signature. It bogs down the load time on the email and provides everyone with one additional attachment that really isn’t needed. If you really want a logo or icon in your email signature, consider having a small screen-ready file for this specific purpose and imbedding it directly into your signature, rather than attaching it.

Gifs, memes, and videos don’t have a place in business communication either. It’s great that you’re friends with your co-workers, but including a gif from The Office to display how you feel about a work project, probably isn’t something you’d want the boss to see or at the very least doesn’t convey your professionalism. Because work emails usually can be accessed by company IT, we suggest keeping all things professional in those communications. If you’ve given your work email to personal friends and family, it’s ok – just set the tone by acting in a professional manner and you’ll find that most people will follow suit without you having to make a specific mention of it.

What other things do you implement in your business emails? We’d love to hear your thoughts in the comments.

The statistics in this post are taken from an online published report, Email Statistics Report, 2015-2019, put together by The Radicati Group, Inc. 

It’s not surprise that entrepreneurs and small business owners often find themselves stretched thin. The dream of growing a business is an exciting one, but it requires long hours, big decisions and a lot of elbow grease. There’s little time to spend on getting organized or giving a luxury feel to the inner workings of your business  and making those big business decisions – well it’s hard without having everything you need in one place.

When you look at the inner working of a car, all the info appears in one place – the dashboard. Whether it’s a luxury car or a clunker, the system works to help get you where you need to go – giving you more time to focus on everything else. Just like a car, your business needs a dashboard, or somewhere you can go to see how all the parts of your business are working together.

Here are 4 reasons we think every business owner should have a business dashboard:

Monitoring Your Brand in Social Media

It’s easy to go cross-eyed when you think about managing your social media. Just making sure you’ve got a consistent presence on a multitude of platforms can be a full time job, but to make sure that presence is communicating effectively with your target audience, and that what you’re saying is converting to sales… well that’s a whole different story. Using a business dashboard to track social media is just plain smart (not to mention necessary). Dashboards all you  you all the insight because you pick the metrics you want to watch, and you can schedule multiple platforms (up to 30)  in one place – allowing you to have a presence without spending all the time in your daily schedule to appear on all platforms. Check out Hootsuite and Dasheroo.

Operate in Real-Time

Operate in Real-Time

Checking sales numbers, processing receivables, and serving customers has never been easier. There’s no longer a need to rely on bulky reports that are run weekly or monthly. Business dashboards allow all these things and more to be streamlined and viewed in real time (or as close to real time as possible). Here’s our short list on how business dashboards can help you operate in real-time more often:

  • update your receivables on a daily basis – making it easy to check on past due accounts and keeping them top of mind for you and the clients who are paying you
  • see how sales are trending right now and be able to implement actions that will help you meet your benchmarks
  • easily gather information from past months and years into one place so you can create better forecasts and look at year over year trends. The idea of being able to forecast is no longer just something done by big business
  • when orders come in information goes a lot of different directions. Connect all the moving parts through 1 dashboard so the process is streamlined, silos are depleted and everyone knows the status of every order at any given time

See More, Manage Smarter

A picture is worth a 1000 words – and understanding data through a chart or graph usually quickens understanding when compared to dredging through a spreadsheet to find the same information. Within spreadsheets or written reports, important insights drawn from data can be buried -most dashboards allow for chats and graphs, which are better forms for communicating important points quickly, because they’re visual.

Communicate with the Entire Team

Silos, lack of real-time information, and communication gaps between teams are excuses of the past. The internet, smart phones & iPads have made the ability to communicate and check information in real-time a reality. So why haven’t we started to communicate better? Expectations. It’s easy to not rise to the occasion when the bar hasn’t been raised and as the boss, you’re the one who gets to demand more from yourself, your employees, and your business.

If you haven’t already implemented a system that allows frequent communication between all the working parts of your business – now is the time, and using a business dashboard will make it that much easier. Invest the few hours to get yourself and your team setup and then expect great things.

Communicate with the Entire Team

How could business dashboards help your business? Take 10 minutes and explore how to improve your existing dashboards or get your small business started with a dashboard and headed for success.

FAQs about Business Dashboards:

Why should small business owners consider using a business dashboard?

Business dashboards offer a centralized platform to monitor various aspects of a business, allowing owners to gain insights, track performance, and make informed decisions efficiently.

How can a business dashboard help with social media management?

Business dashboards enable owners to monitor their brand across multiple social media platforms, track engagement metrics, and analyze the effectiveness of their social media efforts, thus enhancing their online presence and customer interaction.

What are the benefits of operating in real-time with a business dashboard?

Real-time data visibility provided by business dashboards allows owners to track receivables, monitor sales trends, analyze historical data for forecasting, and streamline order processing, leading to improved decision-making and operational efficiency.

How do visual representations in business dashboards enhance management?

Charts and graphs in business dashboards facilitate quick comprehension of data insights, making it easier for owners to identify trends, patterns, and performance metrics, thereby enabling smarter management and strategic decision-making.
How can business dashboards improve team communication and collaboration?

Business dashboards foster transparency and real-time information sharing among team members, eliminating communication silos and enhancing collaboration across departments. This ensures that everyone stays informed and aligned with business objectives, driving overall efficiency and productivity.