Blog Archives - Page 7 of 10 - Hybrid Business Advisors

How Wacky Holidays Can Inspire Your Marketing

Posted on by Joan Nowak

Do you use monthly promotions to stay connected with current customers or reach new ones? Do you struggle coming up with ideas each and every month? If you hit a roadblock, let the hundreds of unique or wacky holidays inspire your marketing efforts.

If you investigate, you’ll find there are holidays that celebrate life events, better living, success and people of all ages and professions. You name it, there is likely a holiday out there!

Here’s a few examples. March is National Nutrition Month – so trainers, nutritionists, gym owners, and other businesses who promote nutrition or lifestyle changes have a great reason to connect with customers and even link some offers to celebrate.

Want to market to doctors, dentists or vets? There’s a holiday for them. How about technology companies? World Backup Day may just work. Are families or senior citizens your ideal customers? There’s a day for them as well.

Using holidays and events effectively in your marketing requires planning. There are two ways you can approach this.

First, go to Holiday Insights or Days of the Year to check out the many holidays each month. When you find something interesting that links to your industry, target customers or benefits you deliver, write them down with the month and date. While you may not find something inspiring every month, you should find at least three or four that you can use throughout the year. Now put them into your marketing plan or calendar – and get creative.

Another option is to make a list of your key targets, industries and emotional benefits. Using your list, do a Google search to identify any appreciation days or month-long celebrations. Days of the Year, noted above, also allows for searching. Using the above example, if you search on dentist appreciation day you will find sites that show you that it occurs in March. If you are looking for something specific, this approach may be easier.

With a little creativity, you have what you need to connect with others in a fun, effective way. Give it a try.

How Curiosity Can Revitalize Your Business

Posted on by Joan Nowak

According to Walt Disney, curiosity leads us down new paths. It can also help revitalize your business. So how curious are you?

Did you ever notice how curious young children are? For them, the world is full of new things to explore and pursue. And to the frustration of many parents, “why” is their favorite question. But from a child’s curiosity comes discovery and knowledge.

So how would an eager desire to learn help you and your business achieve more? When you consider that curiosity compels us to ask more or better questions, dig deeper, seek understanding, and explore better ways – it provides benefits in all areas.

In sales, curiosity helps us build rapport with prospects. It drives us to ask questions to understand the person and what motivates them, what they need and why it’s important. When sincere, our inquiries demonstrate interest and help us find common ground, a basis for starting a relationship. Isn’t that what you want?

In operations, curiosity propels us to find new and better ways to serve our customers and streamline our procedures. We seek feedback from customers to understand what we do well and how we can improve. We ask for input from our employees to increase efficiency so we can do more with less effort. Our curiosity leads to knowledge – something we can build on.

On a personal level, our curiosity inspires us to act on a variety of topics — from new skills to hobbies. Think about the last time something piqued your curiosity. What did you do? Search the web or invest in a book to learn more? Talk to friends or colleagues? Take a class or join a group?

The curiosity we had as a child helped us discover and learn. It did lead us down new paths. It still can. So tap into your curiosity to help revitalize your business.

New Monthly Article & Business Tools

Looking for additional ideas to improve your small business? Then subscribe to my monthly eNewsletter for business improvement articles, exclusive tools and great insights on entrepreneurship. Click here to subscribe.

Is Your Pricing Eroding Profits?

Posted on by Joan Nowak

When businesses hit bumps in the road, they often look to discounting as a way to generate sales. While some customers may ask or even expect them, they come at a cost – ERODING PROFIT.

When it comes to pricing, ask yourself these two questions:

Is the discount part of a strategy to acquire new business or is it an easy way to close the sale?
Do you find it easier to cut prices versus adding value and maintaining your price?

Discounts have been around forever – and they have their place. For example, if you wish to attract a new customer, offering a discount on the first sale – with the expectation that future sales are at your normal price – can be an effective way to remove barriers and earn the business today, and more profitable sales in the future.

However, if discounts are part of your selling strategy – they go to everyone, every time as a way to get the sale – you have now created a recipe for profit erosion. And it’s time to re-think your strategy.

Need some convincing? Start by understanding the relationship between discounts and profit. How much profit do you lose with the discount – and what percentage of the profit does this represent? For example, if your product or service has a 30% profit margin and you give a 10% discount – you lose about 33% of your available profit. Ouch!

Second, don’t assume you will make it up in volume – in most cases you won’t. Know how much additional sales you must generate to ‘replace’ the profit you lost through discounting. Here’s an example to demonstrate these two points:

Your company sells a widget for $100 each and your profit on each widget is $30.

If your company sold 50 widgets at regular price, you would generate $5,000 in sales and $1,500 in profit.
If you chose to sell those widgets at a 10% discount, you would generate $4,500 in sales and $1,000 in profit. Note your sales price went to $90 and your profit dropped to $20 each.
To maintain the same $1,500 profit with a 10% discount, you would need to sell 75 widgets — a 50% increase in sales.

Try doing this same exercise for your own products or services. It may just change the way you think about discounting!

Now you may be thinking ‘But if I don’t give discounts, I’ll lose sales. In this industry, everyone does. If I don’t, they will go to competitors.’ And you may be right. You may lose a few deals or customers – but you can afford to and still make the same or more profit!

Here’s a few suggestions to help you get off the discount track:

Develop a strong selling proposition around your strengths – and educate customers on value! If the only thing your customers value is low price, it’s time to rethink your target customers.
Educate your team (or self) on your margins and the financial implications of discounting – do they know how much more they need to sell to replace lost profit?
Teach your sales team to sell value – perceived or real. Too often discounts become automatic simply to close the sale
Increase prices for select services – to offset periodic and strategic discount decisions
Offer sales team incentives based on profit not revenue. You’ll be amazed at how quickly stop discounting when it impacts their commissions.

Your pricing strategy should support your overall revenue and profit goals. If it does not, you may wish to give your product and pricing strategy a much needed facelift – and avoid these common profit killers.

Ready to Put Your Business on the Path to Success?

Would working with a business coach help you take your business to a whole new level? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Systems: 3 Small Business Myths

Posted on by Joan Nowak

When we think about the glitzy and fun aspects of running a business, building business systems rarely comes to mind. But if you want to deliver consistently on your promise to customers and get more profit with less effort, you need to learn to love systems!

So why do so many small businesses ignore this area? The two most common reasons I hear are:

We’re small, we talk to each other and know what needs to be done.
I know I need them, but don’t have the time

Myth #1 – Only Big Businesses or Franchises Need Systems

Most franchises started as a small business. Documented procedures simply allowed the owner to replicate and grow. They help others provide customers with the same level of quality, service, and care – without you! There’s a valuable lesson there, even if you have no desire to franchise your business.

Myth #2 – Talking Replaces the Need For Written Procedures

If your business has only a few employees working at the same physical location, communication is a lot easier. You can talk to each other, discuss what needs to be done and even how to do it. It’s not efficient, but it can work.

But what happens when you grow and suddenly you are serving more people or bringing in new staff? What happens when people leave and take the knowledge with them? What happens when you want to outsource work you currently do? What happens when you, as the owner, want to go away for a week with your family?

Documented procedures make it easy for others to step in and do it right – for your customers and your business! It helps with training new hires and cross-training current staff. Plus, the process of documenting is often the catalyst to improvement. It forces us to look at what we do AND why we do it that way.

Myth #3 – Documenting Systems Takes Too Long

Creating a How-To manual takes time. But writing down how you do a critical task, like scheduling a job or closing a sale, does not. In fact, some take less than 15 minutes.

But with each step you take, you begin to build efficiency, consistency, and profit. So take it one system at a time. Focus on the most critical. What are some of the recurring problems that impact your sales, profit, customer satisfaction or time? Set a goal to complete one or two a week – and you will get there!

Remember, the best person to document a system is the person who is currently doing that task. So feel free to delegate and collaborate!

The Ultimate Systems Guide

If you want consistent quality and performance, whether you are there or not, make systems and procedures a priority in your business.

Ready to start building systems to leverage your small business, but need a little help? Check out my Ultimate Guide to Systems and Procedures. The step-by-step instructions, templates, and samples make it easy for small businesses to get started. Click here to learn more

5 Marketing Mistakes To Avoid

Posted on by Joan Nowak

In my earlier post, 4 Steps to Create Ads That Sell, we discussed how the AIDA system can help you create better advertising campaigns – the kind that get attention, build interest and encourage action. While compelling messages are important, they work best if you avoid some of these common marketing mistakes.

Lack of Consistency. If your marketing efforts look more like a roller coaster, with lots of peaks and valleys, so will your results. Having a lot of strategies that you implement periodically (or when sales drop) is a waste of time and money. Choose fewer strategies, make them efficient and do them consistently. Over the long-run, they will pay bigger dividends.

No Synergy. Getting your message out there and making it stick often requires multiple touches or contacts. The same message, communicated effectively through a variety of ways creates synergy and often produces better results. If you depend on digital marketing, like email and social media, complement it with offline strategies such as direct mail, print, networking, press releases, etc.

Here’s a bonus. You can actually save time and money using this approach. With a little tweaking or re-purposing, your email campaign can easily be turned into a direct mail piece or press release. Don’t depend on one method; build synergy in your campaigns.

Guess What Works. Why spend money on advertising that doesn’t generate sales or revenue. Advertising is an investment and should produce a positive return. If you track where leads (and sales) come from and know your cost, you can easily determine what’s working and what’s not. Do more of what works and eliminate the ones that rob your time and money. Learn to test and measure – because what you measure, you can improve.

Try to Serve Everyone. Recognize what you do well – and go after prospects who want and need what you offer. Sounds simple, but if your advertising is not targeted it is likely not very effective. Why? Because it’s difficult to create a compelling message for the ‘universe’. The requirements of a small business are very different from a large one. The needs of parents with young children are unlike parents in empty-nest households. Some of your customers want convenience, others prefer quality or savings. If you want to get more from your advertising, target smaller groups or niches – and focus on what solutions you can bring to them.

Free is Not Free. Your time has a cost that you must recognize when you consider marketing. Some strategies like networking and social media, have a minimal money outlay but require time. Others like direct mail and print have higher dollar outlays but little of your time. New businesses often have more time than money, so low-cost methods are attractive. Find a balance as you grow – time is money so use it wisely.

Marketing is an investment in your business. Make yours payoff by avoiding these common mistakes.

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Bartering Services: Pros and Cons

Posted on by Joan Nowak

Bartering, a system of exchanging goods and services, has been around since ancient times. But is it a good method of exchange for a small business today? Here are some of the pros and cons to consider before saying yes to bartering services.

One benefit of bartering services is obvious. There’s no money changing hands. This is often appealing to start-up businesses and non-profits. It can work if BOTH parties receive something they actually want or need. There is a cost to bartering services, whether it be time or materials. So don’t barter for products or services you wouldn’t buy with cash or credit.

Like any sales transaction, barter arrangements are negotiable. If the product or service offered does not fill a current need – but something else would – ask for what you want as part of the arrangement or walk away.

Barter arrangements can also foster a business relationship. In working together, each party gains confidence in the other’s products or services, integrity and business conduct. This can be helpful when it comes to forging alliances that create referrals or other opportunities. If this is your purpose, make sure you set this expectation upfront. If the other party is well-connected, it can be a win-win.

So What’s the Downside of Bartering?

Double Coincidence of Wants. Since both parties must want or need what the other is offering at about the same time, finding someone to barter with can be difficult. While you can overcome the ‘same-time’ issue by agreeing to a future exchange, be cautious. A lot can change in six months or a year.

Exchange of Value. Products and services are not created equal. So how do you ensure the exchange of value is fair to both parties? A definite challenge when exchanging services. Quality, service, convenience and performance all factor in. If either party feels that what they give is more valuable than what they receive in return, there is no goodwill, repeat business or referrals.

Cash is King. You need a steady flow of cash to keep your business healthy and growing. Since employees, vendors and the government (taxes) expect monetary payments, too much bartering can impact your cash flow.

Service Expectations. Business owners understand that customers are not created equal. And service levels provided to them will often vary based on size, lifetime value, payment history and more. It may not be intentional, but most businesses will make a paying customer a higher priority than a barter relationship. Something to keep in mind as your set your expectations.

Bartering can work in some situations. Just make sure you consider both the advantages and disadvantages before saying yes. Think win-win.

More Profit-Building Ideas

Common Payroll Mistakes to Avoid

Posted on by Joan Nowak

Your business is growing and you need help! But hiring that first employee can be a little scary. What if you make a mistake? And of course, there’s that whole payroll issue. Forms need to be filed. Taxes need to be collected and paid. It’s an unpleasant task that often holds owners back and hinders growth.

Fortunately business owners today have a lot of options to make it easy and affordable. Payroll involves more than just writing checks to employees. It’s why most accountants and business coaches recommend small business owners use a payroll service. Here’s why.

Why Use a Payroll Company?

Payroll companies stay on top of federal, state and local tax changes and other labor-related issues. They will keep you advised of them so you remain in compliance. They also free you up to focus on tasks that are more important – like developing your staff, serving your customers and acquiring new business.

While outsourcing saves time and money, you still have some responsibilities when it comes to payroll. First, you must put aside taxes (employee and company contributions) so they are available when due to the various tax agencies – regardless of who sends the actual payments! Second, you must submit employee payroll information, such as the number of hours and rate of pay, accurately and on-time to meet your scheduled pay periods.

7 Payroll Mistakes To Avoid

Missed tax deposits and filing deadlines. This can result in large penalties for late payment or reporting.

No cross-training on the payroll. Even if you outsource payroll, some tasks must be done in-house. Document the process, including gathering time sheets, calculating hours, approvals, and submitting payroll (or entering it into the system if you do it in-house). Train more than one employee – so an absence or illness will not cause a major disruption or delay.

If you do payroll in-house using software programs like Quick Books, don’t assume tax changes are automatically done for you. Some taxes are automatically updated, others, especially local and some state taxes, are not. Be aware and update them as needed. If you are unsure, check with your accountant or payroll specialist.

Mishandling or not reacting to garnishment notices in a timely fashion.

Incorrectly classifying workers. Employees (W2) versus independent contractors (1099’s). This is governed by state regulations, not by the company or worker. This impacts tax reporting for both.

Unclear responsibilities. Payroll companies offer a menu of services so businesses can customize who does what. Be clear on what tasks the payroll company will handle – and which ones are your responsibility.

Choosing a Payroll Company

Selecting a trustworthy payroll company is important because they will have access to financial information (yours and your employees) and your staff’s social security numbers. Reputation, price, services offered, responsiveness and responsibility are all factors to consider.

Special thanks to Andrew DePascale of Paychex, my go-to payroll guy for small businesses in New Jersey. I appreciate your knowledge and support. For payroll solutions or questions, feel free to reach out to him at (609) 410-6528.

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my FREE eBook, 7 Steps to Build a Better Business.

Does the Big Picture Matter in Business?

Posted on by Joan Nowak

Your business is like a puzzle. It works best when all the pieces come together.

With free agency underway and the draft approaching, there is certainly a lot of football talk about all the moves. None more than with our Philadelphia Eagles. A lot of folks like to analyse each trade and it certainly makes for interesting sports talk radio. But I prefer to reserve judgment until I see the finished product – the team that takes the field in September.

No matter how impactful a move may appear, evaluating one piece without the big picture simply feels wrong. But it got me thinking…

How many business owners focus on one thing and ignore the big picture? Taking actions without the end-goal in mind. Or operating the business without goals and a good sense of where the strengths, weaknesses and opportunities really are? Or focusing on what’s fun or popular instead of what’s profitable? Or looking at results in a vacuum disregarding the synergy that comes from getting all the pieces to work together?

A successful football team is a combination of people and schemes (aka systems). It’s up to the coaches to bring the two together to create a great team. Those that do it the best, win. The same is true in a business.

As the owner and leader of your company, it’s up to you to set the direction, bring in the right people and set up the best systems. Look at the whole business, not just sales. Keep the end-game in mind. Focus on the stuff that matters. In small businesses revenue, cost, customer satisfaction and operational performance are typically good starts. Have a plan – and go out and execute it well. Victory will be yours.

How An Audience Statement Can Help Your Marketing

Posted on by Joan Nowak

Whether your marketing includes networking, referrals, strategic alliances, direct mail or social media, the best results start with a clear audience statement. Not to be confused with a commercial or elevator speech, an audience statement is a short paragraph that outlines vital information about your ideal customers.

In marketing, it serves two purposes. First, it helps you create more meaningful messages for potential customers so they respond to your efforts. Second, it helps you get quality referrals from others. The clearer you are about what you want, the easier it is for others to find them for you!

How To Create An Audience Statement

So how do you create an audience statement? Start by making a list of everything you know about your customers. Go beyond basic demographics. What do they like, enjoy or want? What are their concerns, fears or challenges? Using the list, craft a short paragraph. Here’s an example for my business.

“My audience is primarily made up of small business owners who value results and relationships, are open to new ideas, committed to learning and passionate about their business and personal success. They have a lot of ideas but struggle with the how-to execute or where to start. In some cases, they can’t find the time to juggle all the responsibilities of running a business. These business owners need someone they trust to help them plan, prioritize, stay focused, make it easy and get it done.”

Once crafted, share it with others involved in marketing your company and memorize it so you can easily and passionately tell others who ask. Refer to it when preparing any marketing – from direct mail to social media.

Now that you have your audience statement, make a list of how your products or services can help them. How can it solve their problems, ease their fears or make their life better, simpler or more profitable?

Ready to Put Your Business on the Path to Success?

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

Make It Easy For Customers To Decide

Posted on by Joan Nowak

There are a lot of factors that go into the buying process, whether you sell to consumers or other businesses. The obvious is your prospect must perceive a need for your product or service. But if everyone who needed your products or services bought them, you’d be on easy street, right?

While often overlooked, people tend to buy based on want, not need. Need simply allows buyers to justify the purchase –it will save me time or money, it will keep my kids safe, it will get a lot of use, it’s a real bargain, etc. Wants, on the other hand, are more emotional such as fear, greed, image, or guilt.

So here is the challenge for a business – you must address both. Whether you are making a presentation, having a discussion or creating marketing campaigns, your message should have emotional triggers and justification. In other words, make it easy for them to decide.

The Buying Process

Here’s an example to demonstrate this point. Think of this as the mental steps you, like your prospects, go through during the buying process. Sometimes the process is short. Other times, like when buying a car, it’s longer.

First, you determine you need a new car. Maybe yours is old and needs major repairs. Maybe you are starting a family and safety matters. Maybe you saw a new model you loved. All are reasons used to justify the purchase.

Next, you think about what you want. This is the daydream stage. When looking for a car, do you start with the smallest or cheapest? Probably not. People are drawn to what makes them feel good – and later decide if they can afford it. Using an emotion (like fear, image or greed) and linking it to a need is a great way to ensure potential customers come back when the process is complete.

Finally, you come back to needs – or reality. In this stage, consumers start to justify why or why not. The sports car doesn’t have enough trunk space. The SUV uses a lot of gas. They often make a mental list of requirements – maybe something spacious or something functional or something that won’t double insurance payments, etc. This is where the struggle begins. The consumer now faces the need versus want ordeal. And you can use this to your advantage.

Remember, if the customer can justify making the purchase, he or she WILL! Look beyond the need and focus on the why because that is often where the want dwells. Emotional triggers help a customer decide that his or her ‘need’ and ‘want’ are the same thing – ultimately a must-have! And that’s great for business.

More Ideas to Improve Your Business

For additional ideas to improve your small business, visit my article library. For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter.