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JUNE 26, 2014 Compare the website of a giant, well-known brand against your own, and as a small-business owner, you might feel like a minnow in the company of a whale. Considering the size and resources differential, a small-business owner can’t help but wonder if competing is even feasible.

OPEN Forum community member David Trounce, co-founder of Mallee Blue Media, asks:

“Is it still possible for a small website to compete with larger sites in the same niche? Can you give examples of the kinds of strategies a small site can use to be seen in the SERPS ahead of larger brands or companies? What other strategies do you use as a small website owner to compete online?”

Size really doesn’t matter in the world of websites, says Terry M. Isner, managing director of Jaffe, a PR and marketing agency for the legal industry. “If they follow a few best practices, small sites can be just as successful, if not even more successful, than large sites. One primary advantage is the fact that small sites get to the point, and in most cases you can experience the company at-a-glance, whereas on a large site, overly complex navigation and menus that make you drill down further and further to find a nugget of information is a time-consuming turnoff.”

The Key to SEO Strategy

Done right, SEO evens things out between big and small sites, and all sites can find success in online search results. “Every website must have basic SEO elements in place and a solid content marketing strategy to succeed in today’s digital revolution, and this applies to all digital marketing and communications, including blogs and social media,” Isner says.

SEO best practices are important no matter what the size of the website. Isner adds, “Large sites can easily rank poorly. More content doesn’t improve rankings if it doesn’t follow a keyword and SEO strategy. If a large site has a bunch of duplicate content, for instance, search bots have a hard time crawling the site and finding all the [relevant] pages among the duplication—so size becomes a negative.”

A keyword strategy involves understanding the market and that means understanding keyword competition. “Knowing how difficult it will be to rank certain keywords is important to ranking success. The easiest way to test keyword competition is to push some content out and test it,” Isner says. “Try something simple and quick to get an understanding of how difficult it might be to rank certain keywords and phrases. If you have good success, then carry on. If not, then try a longer-tail variation of the keywords, or do more research and find less used (competitive) keywords.”

In terms of “showing up” in search engine results for terms that large brands and companies are also competing for, it is possible for small companies to compete, says OPEN Forum community member Catherine Juon, chief entrepreneur of Beyond Startup.  “For uber-competitive terms, it takes some savvy strategy to figure out what phrases you can most easily gain traction with that will still generate business, while building the infrastructure (and budget) to compete on the most competitive terms.”

Juon suggests optimizing for “universal search” results, including images, maps, videos, news articles, books and anything else that is available. Big brands often don’t bother optimizing these, which offers you multiple opportunities to compete for page one positioning.

Isner agrees. “Maps, images, videos all tell your story, so use them to broaden your entry points and search options.”

Be Open to New Technology

Small businesses have the advantage of being nimble enough to try out brand new marketing strategies or technologies on their websites, whereas large corporations move much more slowly and, because of that, tend to stick with mainstream technology, says OPEN Forum community member Emil Consuelo, director of e-commerce and digital marketing at Altatac. He suggests taking the time to experiment and see what works best for your company.

Focus on Excellent Customer Service

Smaller companies are able to move quickly, and react faster online, says OPEN Forum community member Elizabeth Tan, digital marketing consultant with Affluential. “This means they tend to be more relational and personal when interacting with their clients. Even in the same industry, and the same niche, every business should have their own unique selling point. So you have to outplay that and communicate that to your clients.”

Larger companies may offer better pricing than your company, but you have better customer relationships as a small-business owner, says Consuelo. “Compete by working on the customer’s experience on your website,” he says. “Build good relationships with your customers, and they will visit your site.”

The same approach is needed for a website as any other aspect of your business, says OPEN Forum community member Michael Trow, owner of Trow Enterprises.  “In the early stages of business growth, it is difficult to try and be everything to everyone or even something to everyone,” he says. “It typically makes more sense to be focused on the target market and provide a solution to their needs. Depending on your business and model, there are most likely different priorities to focus on for driving traffic to your site.”

Be Consistent and Persistent

Nothing is built in a day, including a website that drives traffic, so it’s important to be willing to patiently wait for results, says OPEN Forum community member Lauren Simon, president of Lauren Simon Consulting: “Make your brand different, consistent and better, and you will see your website stand out.”

Read more articles on marketing.

Photo: Getty Images

JUNE 11, 2014Savvy small-business owners know that real change and the benefits that come with it seldom occurs without challenging the status quo. Thriving on constructive conflict, entrepreneurs looking to improve their company encourage debate between themselves and their employees, a process that often leads to new ideas and positive change.

“Whereas conflict is a power struggle or disagreement between ideas, constructive conflict occurs when there’s a disagreement between individuals or groups that is handled in a professional manner, creating a win-win resolution,” says consultant and speaker Eldonna Lewis Fernandez, author of Think Like A Negotiator: 50 Ways to Create Win-Win Results by Understanding the Pitfalls to Avoid. “Negotiation typically includes constructive conflict, and it’s necessary in order to spark new ideas or iron out and promote healthy exchange and connection between employees and business owners.”

Constructive conflict can best be described as intelligent, well-thought-out differences in opinions and ideas between co-workers and employers, adds Shawn Prez, president and CEO of Power Moves Inc., a grassroots and alternative marketing agency that serves small businesses and music industry personalities.

“Successful small-business owners invite and welcome constructive conflict amongst staff,” Prez says. “They realize that though they’re tasked with providing leadership and vision to their employees, no one knows everything. Rather than being content surrounded by robot ‘yes’ men, they encourage opinions and solutions that challenge common thought processes.”

Conflict’s Discomfort

Despite the benefits of constructive conflict, many small-business owners are wary, Fernandez says. “People are uncomfortable with the discomfort of conflict, which is why many don’t ask for what they want,” she explains. “New ways of doing things often make people anxious, even when the change would improve the current situation.”

While she agrees that encouraging debate can lead to positive change, Linda D. Henman, Ph.D., owner of the Henman Performance Group, finds that many successful small-business owners tend to hold a dangerously myopic view, relying solely on their own ideas and seeking only those views that support their ideas.

“Some small-business owners don’t encourage debate and conflict, because they don’t want it,” says Henman, author of Challenge the Ordinary: Why Revolutionary Companies Abandon Conventional Mindsets, Question Long-Held Assumptions, and Kill Their Sacred Cows. “If the business owner happens to be very smart and informed about the industry, the company can enjoy success while he or she is at the helm, but when that person isn’t available, the company usually experiences decline.”

The Upside of Conflict

Given the many advantages constructive conflict can generate, it pays to jump in and reap its benefits. Try these six steps for encouraging constructive conflict at your company:

1. Create a culture of acceptance. Before constructive conflict can be used for the greater good, it’s necessary to develop a company culture where attempts, not just successes, are rewarded, Henman says. “When problems occur, leaders [should] strive to understand cause, not assign blame. Such small-business leaders also deconstruct success in order to replicate it. This type of analysis pours a strong foundation for both learning and change.”

2. Call for conflict. Business owners won’t hear any kind of conflict unless they demand it, but instead of looking for differing opinions that can propel them forward, they encourage group-think instead. The result? “A room full of people eagerly wanting to know what the boss thinks so they can provide echoes,” Henman says. “Business leaders who challenge the ordinary do better. They frame issues and questions, withhold their own opinions and require every person to express an opinion. If they think they’re hearing too many of their own ideas in the room, they can even assign someone the role of devil’s advocate.”

3. Organize brainstorming sessions. Prez holds regular meetings with his entire staff in attendance and encourages employees to voice their ideas. “Our motto is: ‘No idea is a bad idea,’ ” he says. “The team typically builds on the ideas of other staff members, creating an avalanche effect. Some of our most creative campaigns were inspired by one person offering a nontraditional thought or idea.”

4. Trust your employees. “You hire people based on given skill sets that will bring value to your company,” Prez says. “If you thought enough of them to hire them, trust their potentially constructive ideas.”

5. Stick to the issues. “When the group attacks each other instead of the issue, destruction of both relationships and the decision-making process occurs,” Henman says. If things get off track, keep steering people back to the primary topic.

6. Practice makes perfect. “People are often uncomfortable with conflict due to a lack of confidence within themselves, but conflict arises each and every day of our lives.” Fernandez says. “Confidence comes through experience, and experience comes from asking for exactly what you want and not taking rejection personally.”

If constructive conflict isn’t something you’re encouraging now, it may feel strange at first. But once it’s embedded in your company’s culture, the benefits you’ll get from it will be well worth the effort.

Read more articles on productivity.

Photo: iStockphoto

JUNE 09, 2014As a small-business owner, your days are packed with an endless number of tasks that keep your business on track. When you do finally flop down exhausted on the couch after work, it’s probably not to pour over your financial statements. But that’s a big mistake.

While it might not be your favorite post-work activity, it’s important to keep a close eye on the critical numbers that can help you predict the success of your business.

“Without tracking a few key financial figures, you don’t know how much is being spent and what can be trimmed, and as a result, you can’t lower overhead costs or expenses,” says Jessie Seaman, a licensed tax professional and a senior associate staff attorney at Tax Defense Network. “There’s always time to increase net profit, so every month, you should input your transactions and use the resulting figures to make smart business decisions moving forward.”

To help ensure that your business stays in the black, take the time to familiarize yourself with these seven key financial numbers.

1. Cash Flow

Operating cash flow offers a bird’s-eye view of the economic state of your business. This figure is computed by subtracting your operating expenses from the money your company generates during normal business activities. It includes depreciation to your net income and adjusts for working capital like receivables and inventory. When your operating cash inflow exceeds your cash outflow, this is a sign that you’re operating in the black. If the reverse is true, it’s time to take a closer look at your income and expenses.

“Sufficient cash flow in your business checking accounts, especially payroll accounts, is critical,” says tax lawyer Daniel Petri, a tax analyst with the Tax Defense Network. “Small-business owners should always make sure they have the necessary cash flow to meet all monthly business expenses.”

2. Net Income

Closely related to cash flow is your net income, which is also known as your net earnings and net profit. This figure constitutes the result of subtracting all your expenses, including taxes, from your income. It’s not adjusted for items like depreciation. Like cash flow, your net profit is a good indicator of whether you’re earning or losing money.

3. Profit and Loss

This figure is found on what’s commonly known as your P&L statement, which is a snapshot of your company’s income (sales and revenue) minus expenses during a specific period of time, which is generally quarterly, every six months or yearly. Knowing your company’s profit and loss over time allows you to project earnings and make realistic plans for the future, both short term and long term.

4. Sales

Given that generating sales is the reason most entrepreneurs operate small businesses, this figure is a given on the critical number’s list. Keeping a close eye on sales is important, as a dip could be a warning sign of trouble. In the same respect, it’s important to pay attention when sales are up. Determining why business is good at the time your company’s on an upward trajectory is easier than trying to figure it out later. Reacting quickly to an increase in sales also allows you to determine what you need to keep doing to sustain that growth.

5. Price Point

“Small-business owners should know exactly how much it will cost them to purchase their goods and then what they’ll need to sell those goods or services in order to make a profit,” says Petri, who notes that this is an especially critical number for restaurants and other retailers. “When you determine price point,” he adds, “make sure to take into account all overhead expenses, such as utilities, payroll and sales tax.”

6. Gross Margin

Also known as your gross profit—and related to price point—this figure reflects how much money remains after the actual cost of your merchandise is subtracted from the selling price. If this figure is low and not sufficient to cover your operating costs, such as salaries, rent, marketing and utilities, then you’re likely not charging enough for your products and services.

7. Total Inventory

Monitor your inventory numbers on a weekly basis to ensure that the amount of inventory isn’t gradually increasing, as this could be a sign of sales trouble. By tracking inventory on a regular basis, you can spot problems early enough to avoid the negative effects of excess inventory, which include storage costs, reduced profits and potential waste.

Understanding your critical financial numbers may not be as exciting as making a big sale, but keeping an eye on these must-know figures will give you precious peace of mind—and a glimpse of what the future holds for your business.

Read more articles and see exclusive videos in OPEN Forum’s special section on Managing Your Money.

Photo: Getty Images

JUNE 05, 2014Not too long ago, when potential customers wanted to know about the quality of your product or service, they relied on the opinions of friends and family. Word-of-mouth is still alive in today’s connected world—it’s just become exponentially amplified with the use of online reviews. One good (or bad) review of your business can echo through cyberspace indefinitely.

Online reviews drive sales in a big way, says Lisa Gordon, founder and CEO of Pollen-8,  a company that brings together small businesses, marketers and online reviewers to promote products and services. “According to Yahoo Small Business Advisor, 70 percent of consumers consult reviews before making a purchase.

“For large brands, using devoted online product bloggers and social media has become part of the marketing mix, and it’s something small-business owners can also do,” adds Gordon, who created Pollen-8 after working as a mobile app creator and discovering the value of having bloggers review the apps. “Today’s customers seek opinions from a wide variety of reviewers—from those with a large following to niche reviewers with a small but passionate following.”

Until the recent surge of online reviews, the brand itself created its own testimonial through marketing—but not always convincingly. “Every coffee shop on every corner in New York City claims it has the world’s best coffee,” Gordon says, “so which one are we to believe? Now that consumers have a tool and a voice, they can weigh in and advocate for products and brands on the world’s stage, and through blogs and social media, the reach is nearly endless.”

Driving Sales

Online reviews have such a strong impact on potential customers because they come straight from the consumer, says Christine Oyama, assistant designer of Gratitude-Heart-Garden Florist  and a florist on BloomNation. “In today’s fast-paced, technology-driven culture, everything’s available in the palm of your hand, and the fact that a consumer can find a review in minutes—that translates into a powerful thing for small businesses.”

Oyama has found that online reviews drive sales in a big way. “We have great reviews online, and that’s given our customers and potential customers the confidence that they’ll receive a great service and product. We’ve found, for instance, that positive reviews from brides have helped with booking weddings.”

Consumers increasingly look to reviewers when trying a new product, and reviews play a big role in the sales and overall awareness of a product, agrees Joanna Davis, publicity coordinator at ZinePak, which creates custom, interactive content for targeted super fans of music, movies, sports, events and brands. “Everything we do at ZinePak is designed to elevate the experience of super fans. What better way to do this than to partner with bloggers and reviewers who have an audience of the most dedicated fans? For one of our latest ZinePak releases, we partnered with some amazing bloggers who reached a ton of fans and even got the ZinePak in the hands of some of the cast members of Orange Is the New Black.”

Online reviews are especially critical to building an e-commerce business, says Thomas Kelly, founder of the Chili Lab. “More than anything else, reviews have helped build our social media presence,” he says, “and stirred up a lot of conversation about our brand and products.”

Getting a Hand From Bloggers

If you’d like to start working with bloggers to obtain reviews of your products, Davis and Gordon suggest the following tips:

1. Do your homework to locate influential bloggers and reviewers in your product category. “While it’s ideal for the review to reach the greatest amount of people possible,” Davis says, “it’s more important for the review to reach the right people who’ll be genuinely engaged in the conversation about the product with people who’ve used it firsthand.”

2. Decide on your goals for the review, and be specific when you express them in your pitch.

3. Provide all necessary information, such as links to social media accounts and websites where the product can be bought, as well as any additional information that may be helpful to the reviewers and their audiences.

4. Be cooperative and accommodating, and try to build lasting relationships with the reviewers. They’ll likely be more valuable than you initially realize.

5. Be generous with product samples. Send only full-sized samples and products that best represent your business. Never ask reviewers to return products once they’ve been reviewed. And offer a second sample to be used as a promotional giveaway to the blogger’s readers.

6. Ensure that the product is a good match with the blog. Do your homework to make sure the blogger’s audience is the target audience you’re trying to reach.

7. Know that bloggers occasionally request payment in exchange for reviews. Decide in advance what you’re willing to do.

8. Remember to thank reviewers for their reviews. You want them to understand how much you appreciate the time they took to use and discuss your product.

9. If you get a bad review, don’t defend yourself and your product. If you feel the review may have some validity, try to understand what changes your product might need and make adjustments.

Read more articles on marketing.

Photo: iStockphoto

MAY 29, 2014With the world continuing to change at an ever-increasing pace, small-business owners must be fast on their feet and able to respond to constant uncertainty. That often means being comfortable navigating an ambiguous course, which, for many business owners, is an extremely uncomfortable notion.

“All small-business owners today must exhibit the ability to be comfortable with ambiguity,” says leadership coach Robert C. McMillan, author of The Next Gen Leader: Cutting Edge Strategies to Make You the Leader You Were Born to Be. “Embracing ambiguity is especially critical for your company’s chief security officer (CSO), whose role tends to evolve rapidly and requires an extraordinary ability to embrace an uncertain future.”

Areas of Ambiguity

What’s the most ambiguous area of business for many small-business owners? It’s technology, by far, says Patrick Stroh, a principal at Mercury Business Advisors and the author of Business Strategy: Plan, Execute, Win! “The changes in the area of technology continue to be exponential, and this is especially true when it comes to social media,” Stroh says. “Think how we’ve gone from annual client satisfaction surveys to daily customer input via social media.”

Seems just when you figure out how to navigate a social media site and how to best market your business there, along comes a a new platform to learn and a new way of doing things.

Product sourcing is another task that’s no longer cut and dried. Long gone are the days of automatically sourcing and procuring products and services from known entities across town. As Stroh says, “Anyone can go to China and get low-cost manufacturing done today. Likewise, just about anyone can put up a website and sell all over the world. Not too long ago, global options weren’t as accessible as they are now, and that shift in the landscape has created competitive ambiguity.”

When the entire world is your oyster, it’s hard to know where to procure your products and even where to sell. And when you do decide where to buy your products and which target markets you’d like to sell them to, any initial uncertainties you may have had can linger.

Gone also are the days of the traditional business model that consisted of a predictable status quo when it came to leadership, McMillan says. “Leadership is no longer hierarchical titles or control and command,” he explains. “Those are ‘old age,’ traditional definitions that, while once predictable and stable, are now virtually nonexistent. Instead, today’s small-business owners must evolve as swiftly as the business world and constantly changing market conditions, and that means as leaders, getting comfortable being uncomfortable.”

A Tool for Innovation

Not surprisingly, it’s the small-business owners who learn to navigate and even embrace ambiguity that are thriving in today’s constantly evolving business climate. “Every business owner needs to be comfortable with a fast-paced environment where they’ll have to make decisions with imperfect information to stay on top of, or even ahead of the game,” Stroh says. “If they wait for perfect information, they’ll be left behind. One of the main advantages of ambiguity is the fact that it pushes you to innovate and experiment.”

Savvy small-business owners recognize that uncertainty is a friend, not a foe, agrees McMillan. “As small-business owners change with the times, these next generation leaders thrive because of ambiguity, because they know that it harbors clues as to what the future holds.”

Small-business owners who can decipher the ambiguity code and transform it into a formula for success will excel in today’s business climate, McMillan asserts. And the good news is, he adds, “The higher the ambiguity, generally the greater the market opportunity.”

So how can you make the most of ambiguity? Here are five things to take to heart:

Accept that there’s only one certainty. Change is the only certainty in today’s business climate. When you take this fact to heart, you become more comfortable with the inevitable and are better able to confront each day’s changing landscape.

Avoid over-controlling. While keeping things in line is definitely necessary, try not to micromanage every aspect of your business. That way, when ambiguity appears—as it always does—you won’t find yourself stressed out but instead, you’ll be prepared for the uncertainty.

Know you’re in good company. The world’s best minds welcome ambiguity. Without uncertainty and the resulting questions, innovation and discovery would be impossible, and we wouldn’t have all the insightful inventions that we have now.

Challenge conventional wisdom. If you’re doing something a certain way “just because” and there’s no clear-cut reason why, this should be your cue that the practice is most likely outdated and ineffective. Explore all the possibilities, then decide for yourself which route to take, realizing that you may come to a completely different conclusion next time.

Manage your stress. No matter how open you are to ambiguity, uncertainty causes stress. It helps to strike a healthy work-life balance so you have the inner reserves to draw from when constant change throws you off balance.

Read more articles on leadership.

Photo: Getty Images

MAY 09, 2014To engage with customers and start conversations that can lead to business, there’s no doubt that social media is a key component. But connecting virtually can be a challenge, which is why Erin Cowley of Maceys Grocery Store, asked the OPEN Forum community for advice about her social media activity.

“I’m worried about my social media posts becoming repetitive and boring,” Cowley says. “How do I keep the content I share new and interesting? I’ve been working for a brand new, small company as their online marketing/social media help and would love any advice on gaining and keeping interest in the company through Facebook, Twitter, Google+ and/or Pinterest.”

Take Advantage of Available Resources

Just as there is a social media outlet for just about everything, there are corresponding tools to help keep your content fresh and current. “Try Google Trends and Most Emailed News,” suggests small-business strategist and entrepreneur coach Bennett Johnson, an OPEN Forum member, who owns Arete Business Methods.

Johnson advises browsing what is trending and selecting, sharing and commenting on a few hot topics in order to connect to your target audience. “Write blog posts using those stories as examples,” he says. “Place the keywords of the news stories within your social media tags.”

OPEN Forum member Timi Garai is a client marketing manager for Antavo Viral Contests. She recommends using Post Planner: “This resource has features that help you find the most engaging content on Facebook and offers creative ideas for posting, such as questions, text-based status updates, trending content from your niche and the most viral images and quotes,” Garai says.

Involve Your Customers

Starting conversations on social media with customers whenever possible is ideal. Collect materials from them, such as photos, videos and essays, that you can share later on your social media channels, Garai suggests. “Fans love to see their content again, so collect it and use it in posts.”

Observe the 80/20 Rule

In order to create enjoyable and engaging content, stay on the topic of your expert subject matter 80 percent of the time and let them know you are a real human the other 20 percent, says OPEN Forum member Wayne Cichanski, co-founder and managing partner of Digital Blitz SEO. “Some of the most viewed items we see are silly things that you would never guess people would view,” he says.

Remember to keep it social by adding some fun content along the way that may not be directly related but matters to your local and online communities, agrees OPEN Forum member Gina Storr, social media manager and online business consultant for Cyber GMS. “For example, one of my clients caters to families, so I share articles about young people in the community.”

For clients with content niches, Storr takes advantage of Google Alerts and the iPad app SkyGrid to get a stream of interesting content moving. She also uses Buffer to schedule posts, Facebook Insights to find the best times to post there, and tracks Twitter content on Tweetreach.

Educate

Those on social media will take the time to read and engage if they feel like you’re offering valuable information, says OPEN Forum member Russ Waddill, partner with Neos Marketing. “Subscribe to and regularly read items relevant to your customers that can educate them, even if it is not your original content,” he suggests. “There are a lot of really smart people you can learn from in the social media community. Use this information to help your customers learn something, and they will reward you.”

OPEN Forum member Doug Bintzler, laboratory director of DNA Analysis, agrees. “Since my company is in a scientific field, I look for articles and research relevant to our business and post a summary with a link on both Twitter and Facebook.” He suggests looking for current issues that revolve around your small business and sharing them.

Understand the Various Platforms

Keep in mind that Facebook is a paid media platform, says Matt Plavoukos, head cook of BeBrite Diner. “You need to promote posts with Facebook to reach and engage. Google+ is critical to support good SEO, but your consumers may not be active, so while publishing content there is important, set your expectations accordingly. Pinterest is a great driver for e-commerce and retail.”

Achieve even more impact and mix things up by sharing Instagram pictures with Twitter and Facebook, and do polls with Twitter, suggests OPEN Forum member Ryan Clark, founder of Luxury Branded, which helps luxury brands go viral.

The wide variety of suggestions on creating engaging social media from the OPEN Forum community makes it clear that there is no one-size-fits-all solution. Analyze your business and try these tactics, and you’re likely to see a marked increase in engaging social media posts and resulting business.

Read more articles on social media.

Photo: Getty Images

APRIL 25, 2014For many small-business owners, the idea of making the world a better place while earning a profit holds a definite appeal. And if you can ensure that your customers and employees are happy while also leaving the world a better place and turning a profit, than you have hit the trifecta so many of today’s entrepreneurs strive for.

We recently asked the OPEN Forum community about their views on conscious capitalism, and for those operating under this model to share their insights.

For OPEN Forum community member Jeff Motter, CEO and chief marketing officer of East Bay Marketing Group, using the conscious capitalism approach is the only way to conduct business.

“We operate under the conscious capitalism model every day,” Motter says. “Our employees all know why we exist and that our purpose is to serve others. We are aware that we can and do make differences in people’s lives and that people are important. Conscious capitalism is simply a matter of doing the right thing because it’s the right thing to do.”

A Growing Trend

Communication coach Roshini Rajkumar of the Roshini Performance Group has found that the primary motivation for business has moved beyond the profit-at-all-costs model.

“Nearly every small-business owner with whom I work has a passion for making the world a better place,” Rajkumar says. “People really want their lives to mean something today, and conscious capitalism provides the platform for business owners to create something authentic that not only generates money but contributes to the greater good.”

“People like Bill Gates and Warren Buffet have led the way in showing that doing things that are good for the community contribute to the bottom line as well. We started seeing a real move toward this type of business model in the ’90s with companies like Patagonia, and when CEOs talked about the social bottom line or the triple bottom line.”

Given the fact that this business model has been around for more than two decades, the younger generation of consumers and workers now coming of age generally demand that brands asking for their loyalty feature a philanthropic bent, Rajkumar says. “Millennials in particular want to see that a business contributes to the greater good and is grounded in a higher purpose.”

Fundamentals of Conscious Capitalism

If you want to make the world a better place, it helps to understand what consciousness means. “Being conscious is not an esoteric excuse for not earning profits,” Motter says. “Business leaders have a responsibility to stakeholders to earn a good profit, because profits are the lifeblood of a successful company. Without profits, a company is unable to serve.”

Profits alone are not the end result with the conscious capitalism model, though. “It’s what profits enable businesses to do that really matters,” Motter adds. “Successful companies can have greater impact on people’s lives and conscious companies are able to make meaningful differences every day. This is accomplished by realizing that everyone is important and should benefit—from customers to employees to vendors.”

Conscious business means ensuring that workers are well paid and, as a result, motivated, providing customers with valuable and superior goods and services, and treating vendors with respect. “Companies that treat their vendors as long-term partners develop relationships that are based on trust and an understanding that both sides must receive value from the relationship,” Motter explains. “With this approach, everyone wins.”

Benefits of This Business Model

When you embrace the conscious capitalism model, the benefits of doing so are exponential.

Organizations that have a strong, authentic purpose thrive, says Rajkumar. “People can get behind the company, from the employees to the stakeholders to the consumers,” she says. “The conscious capitalism movement really puts those ideas of social responsibility that have always been around into a framework that even the smallest business can adopt. But it’s not enough to just do it. You have to communicate it as well.”

Doing good socially is really good for business, because at the end of the day there will be more profits, Motter adds. “Conscious companies earn profits and are better able to attract capital when needed, and oftentimes at better rates. Investors trust them and are willing to fund their growth. Conscious capitalism actually reduces challenges by creating clarity and purpose for everyone. There’s no confusion about whether we should earn a better profit or serve our clients, vendors, employees and our communities better. The answer is always yes to both.”

Read more articles on company culture.

Photo: Thinkstock

APRIL 17, 2014Small-business owners aren’t immune to life’s ups and downs. A sudden health diagnosis, a divorce or an unforeseen financial stress can make an entrepreneur feel isolated and desperate. When a small-business owner comes to such a critical crossroads, the decisions made can have profound and lasting effects on the company.

“There is almost always hope for business owners—even when they think there is nothing left to do,” says David Wimer, co-author of INSIGHT: Business Advice in an Age of Complexity, which addresses this topic. “Owners need to know there are many options for obtaining advice and assistance and how to prevent crisis situations from occurring when at all possible.”

Inevitable Crises

There is no doubt that problems will arise, and given the fact that the small-business owner is in charge of so many critical pieces of the company, it can be a stressful time.

“A lot can go wrong,” says Wimer, who is also founder and managing principal of David Wimer Advisors. He works with privately held, family businesses to navigate business transitions and prevent financial crisis.“Many owners casually accept the risks of business ownership while discounting the potential impacts of those risks, such as loss of intellectual property, loss of customer relationships, loss of legacy information, loss of entrepreneurial spirit, loss of business value, loss of cash flow, and even more,” he says. “Whether any of these problems become crises is usually within the control of the business owner.”

Be Prepared

The surest way to weather a setback is to anticipate potential disaster before it has a chance to strike. “When key executives and managers know exactly what to do if you’re not there, they can respond accordingly, and knowing there is a plan in place is comforting,” Wimer says. “Planning helps to keep everyone oriented, especially when they are emotionally stressed. Otherwise, the situation becomes highly reactive and hyper-stressful.”

Not having a preparedness plan in place could even mean losing your business, says Wimer, who tells the story of a business owner who appeared to be in perfect health and elected not to take out a key man life insurance policy suggested by his financial advisors.

“A year later, he was diagnosed with stage four pancreatic cancer, ” he says. “His wife and son were active in his thriving five-year-old home health-care business, but because he didn’t have a plan in place, they lost their option to run it, so the company had to be sold while he was undergoing aggressive chemotherapy. Had the owner elected to secure the insurance, there would have been the funds to hire in a key executive to run the business while the owner recovered.”

Share the Burden

Seek help from trusted advisors during a crisis. While this may take some humility and courage, discussing the problem and getting it out in the open is critical. “Avoid denying there is an issue, and don’t convince yourself you can solve your problems better than others who can be objective,” Wimer warns. “Relay your troubles to those who have been in a scrape or two themselves and can provide you with viable options. And whatever you do, don’t go it alone or wallow in pity.”

Respond Positively

By their very nature, crises are negative, says Karen Zeigler, a life strategist for women in leadership, who provides business coaching and is author of Freedom from Worry: Prayer of Peace for an Anxious Mind. “Avoid letting your mind go totally negative, because the negativity will permeate every area of your life, including your health,” she says. “Respond in positive and empowering ways by celebrating the good in your life, as well as the lessons learned and opportunities that inevitably result from a crisis.”

Reconnect Spiritually

Life gets busy, and when things are going well, we tend to run past those activities that fill our spirit and bring us peace, Zeigler says. “Often it isn’t until the shock of a crisis hits that we realize we have lost sight of those things. It is often the anxiety of the crisis that drives people to their knees. Reconnecting spiritually helps get you back on your feet. You can do this by spending time alone in nature, in prayer, journaling and meditation.”

Reinvent if Necessary

If circumstances occur that slow down or stop business, such as a financial downturn, consider reinventing your business and yourself, Zeigler suggests. “If the money is no longer coming in, look to see where it’s going, and then consider changing gears so that you are in the right market.”

“Crises tend to shake things up, and almost always there is some portion of your business that needs a shaking,” she adds. “Take this opportunity to make sure your business comes out not only having survived the crisis but better because of it.”

Read more articles on leadership.

Photo: Getty Images

APRIL 15, 2014Running a website means you’ve got to keep your eye on a variety of elements, including attracting as many visitors as possible. But having a lot of hits doesn’t mean much if your bounce rate—the percentage of visitors who only visited your home page before leaving your site—is high.

Enticing visitors to stay around can be challenging, but it’s key to website success, notes OPEN Forum community member Jackson Powell, a graphic designer and website applications developer and designer with Little Red Truck Idea Co.

 

 

“We all spend hours agonizing about how our website does at converting sales, attracting customers and other aspects, but oftentimes, we lose sight of one key element—how long are people staying on our website?” Powell says. “As you keep guests on the site longer and have key features they are attracted to, you’re more likely to gain repeat visits and referrals, as well as sales.”

Powell recently asked the OPEN Forum community: “In your experience, what is the stickiest feature of your website? What are the key elements on your site that draw people in and that people would refer others to use or look at?”

Simple Navigation

Not surprisingly, users want an easy ride when it comes to navigating websites, says OPEN Forum community member Jonathan Devine, a user interface designer with KeepVault Online Backup. “In our testing, users simply follow the path of least resistance. So as long as it’s above the fold, it doesn’t matter where it is. If it’s big, loud and easy, people will click on it. Hence why our current site has a one-step trial sign-up right on top of our hero image.”

Surprisingly, Devine feels that too much time spent on a site can indicate a website’s ineffectiveness. “Many of our users who spend a lot of time on the site are doing so because they’re having difficulty finding what they’re looking for,” he says. “We try to figure out what they want and streamline their experience.”

Clear Calls to Action

If potential customers arrive at your home page and are confused about what you do, this uncomfortable feeling will result in their bouncing right off your site. While it might seem like you’re hitting them over the head too hard by explaining what you do, you want to make it crystal clear exactly what products and/or services your company provides. A website’s home page is no place to use clever phrases and images that don’t clearly relate your purpose.

Your aim is to ensure your visitors that they’ve landed in just the right place, which means immediately and clearly spelling out what you do and how your products and services can help them.

Free Useful Resources

Free stuff keeps visitors engaged and coming back for more, especially if the information you’re offering helps them improve their businesses or lives. OPEN Forum community member Meredith Wood is director of community relations for Funding Gates. She says that her company’s free tools and templates make for an especially sticky website experience.

“We are a collection software, so we provide financial calculators, letter templates, etc.,” Wood says . “Doing this gets people coming back to our site all the time [and] allows us to capture leads and helps prove our thought leadership.”

Offering visitors trial versions and sample products builds trust and bolsters your brand name. A willingness to show visitors what you have to offer proves your credibility and the quality of your products, which often leads to sales.

Engaging Blog

Well-written blog posts that cover topics of interest to your visitors provide one of the best ways to increase the stickiness of your website, says OPEN Forum community member Torrey Gage, co-owner and executive vice president of Think Big Go Local. “Our company blog receives a majority of our traffic and has the lowest bounce rate of any of our pages,” he says. “The average visit length on the blog is four times the rest of our pages.”

Jason Reis, owner and lead programmer for Flehx Corp, agrees. “On our sister sites, we have a blog, and the blog [generates] the longest time spent on a page by our visitors,” he says. According to Reis, blogs allow customers to develop personal connections with your products and services.

“Customers get a better glimpse into your company culture and learn about any upcoming features or local events in which your business is involved,” Reis says. “Help them form such a relationship with your company via a blog, and you’ll find your site being visited frequently by both new and existing customers.”

High Conversion Rate

Most small-business owners would agree that when all is said and done, stickiness should result in sales. “Ease of purchase is key,” says Josh Sprague, CEO of Orange Mud LLC. “Time on your site is great, but noting your conversion rate from it is obviously critical.”

Keeping customers on your site longer will help them get to know you and what you do, and help turn looky-loos into shoppers. Try adding a few sticky features to your site to encourage people to “come in and stay awhile.”

Read more articles on design and development.

Photo: iStockphoto

APRIL 09, 2014When Frances Moreno noticed that her company seemed to be getting lost in the shuffle of the vast and competitive Southern California staffing industry, the founder and managing partner of Vaco Los Angeles decided to rebrand and make her company stand out.

“Since rebranding, our company now resonates with our customers and prospects, as well as our candidates and the consultants we place,” Moreno says. “We’ve experienced growth in our revenue and customer base, attracted attention and even won a wide range of awards.”

What Is a Brand?

Before you embark on a rebrand, it’s important to understand what constitutes branding, says Tara Stoutenborough, principal at Strategies, a marketing communications corporation with 30 years of experience in brand development, positioning, messaging and content creation.

“Branding is not a company name, logo, tagline or the newest marketing campaign,” Stoutenborough says. “A brand is a company’s or product’s identity, and to understand what that means you must go to the customers and prospective customers of the company or product and ask them what they think, feel and expect when they see the company or product, because those thoughts, feelings and expectations are the brand. A company does not own its brand—its customers and prospects do.”

Time to Rebrand?

Just because it’s been X number of years since you’ve rebranded doesn’t mean it’s time to rebrand, says Chris Wechner, director of marketing for The Ultimate Analyst, an online marketing company that generates leads for emergency-based businesses. “Before rebranding, analyze if you’re failing to reach your target market and why. Is your target market ignoring you or unaware of what you’re offering? In that case, you may have a perception problem, and rebranding can help.”

Don’t fix what’s not broken, adds Steve Blue, CEO of Miller Ingenuity, a 60-year-old company that successfully implemented a corporate rebranding effort. He points to Coca-Cola’s attempt to rebrand with “New Coke” in 1985. “The public was outraged and let Coca-Cola know they wanted their old Coke, so the company responded within a few months and brought back ‘Classic Coke.’“

Steps to Rebranding

1. Influence and shape the brand with a series of brand promises.

In order to arrive at those promises, Stoutenborough suggests gathering key employees who have contact with customers in any way and ask the following questions:

• What qualities and characteristics do you want people to think of when they hear your name or see your product?
• What feelings do you want them to have?
• What do you want them to expect?
• Can you support all those ideas in fact? If not, what do you have to do to make it true?
• What can you honestly say sets you apart? Look at everything.

“Discover what your company stands for first, before you decide on a brand,” Blue adds. “If you don’t like what you stand for, change that first.”

2. Obtain customer feedback.

“Use whatever means you have—phone calls, online surveys, an email survey, your blog—to ask your customers and prospects what they think, feel and expect when they see your name or products,” Stoutenborough says. “Doing this will help you get a feel for how uphill your job at instilling your brand promises will be.”

3. Find out what’s not working.

“Identify the part of your brand that’s failing to connect to your target market,” Wechner suggests. “You aren’t going to know what you really need to change until you figure out what is failing to connect the target market you covet so much with the brand you want them to notice emotionally.”

4. Develop your story.

“Your brand’s look, feel and message should tell one story, and that story should be heroic and memorable,” Blue says. “Consider what is at stake for customers in terms of their problems and how you solve those for them. The story should be one that your employees and your customers can get behind, believe in and admire.”

5. Permeate all your company communications with the new brand.

That includes website, social media, sales tools and signage. Make certain that every employee understands them and can communicate them effectively.

6. Never stop supporting and promoting your brand.

Successful brands are a living presence in the marketplace with a tangible, ongoing relationship with customers, Blue says. “It’s easy to support a brand in boom times, but much tougher in down times; however, study after study shows that brands consistently supported during a down cycle gain the greatest sales and market share when the economy turns up.”

7. Be consistent and persistent.

“Don’t decide you’re rebranding yourself today, but next week refer to things that point to your old brand,” Wechner says. “Commit to building your rebrand. If you’re rebranding for the right reasons, don’t second-guess yourself. Become that new brand, and eventually people will follow.”

Stoutenborough agrees. “Once you have established who and what you want to be, do not change it except for tweaks and slight adjustments. It takes 10 to 12 ‘touches’ for a customer to even notice you. Keep going long after you think everyone must have seen the new brand. Trust me—they haven’t.”

Read more articles on marketing.

Photo: Getty Images

APRIL 08, 2014If you look at the many new apps coming out and think to yourself, “We could do that,” it might be time to take the plunge. Apps are becoming a vital part of how businesses deliver goods and services to consumers, and that’s a trend that promises to continue.

“Apps are an increasingly essential part of smart business marketing. They provide small businesses with a way to engage customers beyond the corporate website or blog,” says mobile marketing expert Scott Hirsch, founder and CEO of Appsbar, a cost-free tool for developing professional and personalized apps.

By 2017, apps will earn more than $77 billion and be downloaded more than 268 billion times, according to Gartner, an information technology research and advisory company. Considering a sizable chunk of those downloads are likely to be driven by entrepreneurs, it makes sense to consider creating your own app.

But, where to start?

Is There Demand for Your App?

Whether you develop an app to sell or to drive traffic to your business, your first course of action is determining if there is a demand for your app.

“Speak with your customers and trusted associates and visit online marketplaces to determine if there is an existing app like what you have in mind,” Hirsch says. “If you find a similar app, note the following: how many downloads it has, how people use the app, and what they say about it in the comments. Are there any pitfalls or gaps in the existing apps that can be exploited? Take all these cues and more into consideration when determining whether you should pursue the development of your app.”

Considering the many excellent apps already available on the market, it’s important to come up with an idea that stands out from the rest, agrees Marjon Wemerman, PR and marketing manager for Anita Maternity. The company’s MUM2B Anita Maternity App, on iOS and Android, contains a diary where expectant moms can add text and pictures during their pregnancy and save and share them on social media. Women also receive weekly tips during the 40 weeks of gestation and for 10 weeks after the baby’s birth.

“There are many pregnancy apps that focus on the baby, so we developed an app that caters to pregnant women and helping them through pregnancy,” Wemerman says.

iOS or Android?

Choosing a mobile operating system will most likely be your first step in building an app. “What’s important to think about is who your audience is,” Hirsch says. “When you check your Web analytics, are there more visitors from Android or iOS devices? Talk to your customers. What are some of their favorite apps and why? Once you do some of your own market research, you’ll feel more comfortable making this important decision.”

You may also find that it makes sense to make your app available on both platforms.

Free or Paid?

Although it depends on your marketing budget, Hirsch suggests offering your app for free if at all possible. “There are plenty of avenues for monetizing your app, like in-app purchases and iAds/AdMob,” he says. “The most important element when launching your app will be engagement, and if you’re working with a limited marketing budget, it will be easier to engage users with a free app.”

How Should You Market Your App?

It’s not enough to simply create your app and make it available in the marketplace, says Balaji Sriraghavan, director of project development at RJT Compuquest. He has developed more than 80 apps for clients, as well as himself. “You must promote your app, or no one will know that it exists.”

Keep your finger on the pulse of how your app is being used and what your customers are saying about it. Respond to their comments and tweak the app as necessary.

“An app is just like any other marketing tool,” Wemerman says. “The creation of the app itself doesn’t increase product sales or exposure. You have to tell the audience that it’s there. Once they start to use it, it can be a great help to increase your brand name.”

Play by the Rules

Though it’s tempting, stacking the deck in your favor and making your app appear more popular than it truly is can have profoundly negative consequences.

“Never attempt to break Apple or Android’s rules and pay for downloads to inflate your numbers,” Hirsch warns. “This could lead to any number of damaging outcomes that do long-term harm to your brand’s reputation, including getting your app yanked from the marketplace.”

Follow the rules and respond to the needs of the market, and you’ll soon find yourself telling customers those six magic words: “We have an app for that.”

Read more articles on technology for small business.

Photo: Thinkstock

MARCH 28, 2014With the myriad responsibilities that come with running a company, it’s not surprising that business taxes aren’t at the top of the list for many small-business owners. As a result, some tax requirements get overlooked—resulting in nasty, often costly surprises.

Avoid making common tax mistakes and suffering the consequences by keeping the following expert tax advice in mind.

Understand All the Tax Authorities You Owe

When you’re new to business, the sheer number of taxing authorities and the resulting time and expense can be overwhelming, but it’s important to educate yourself about what’s required, says Janet Lee Krochman, CPA,  whose firm works with small businesses on tax planning and compliance. “Besides the obvious IRS and related state agency, there are sales taxes, property taxes, payroll taxes, local taxes, excise taxes, self-employment taxes and other specialty taxes.”

It’s not uncommon to be stunned by the many different types of taxes that must be paid, especially if you have employees, agrees Jessie Seaman, a licensed tax professional and senior associate staff attorney at Tax Defense Network. “In addition to IRS taxing requirements like unemployment, each state, county, locality and district has its own filing and paying requirements,” Seaman says. “In just one year, a small business with three employees could end up with more than 10 to 30 tax returns that need to be filed with federal and state revenue agencies.”

The many tax returns also tend to be complicated, which often means that when small-business owners without a tax background go DIY to keep costs low, errors occur, which can cost hundreds or thousands in penalties and interest for errors, Seaman says.

Don’t Ignore Self-Employment Taxes

Self-employment taxes and the estimated tax payments that come with them are often overlooked, Krochman says. Generally, you must pay self-employment tax if you net more than $400 from your business, and most of that money earned is subject to self-employment tax.

“For a non-corporate business, the amount of self-employment taxes can double the overall impact of taxes on the income of the individual owner[s],” Krochman says. “You must also make quarterly estimated tax payments in order to avoid tax penalties and interest.”

Making estimated tax payments also prevents you from having a walloping tax bill come April, says Robert Skrob, a CPA who specializes in customer generation through associations. “It’s best to pay the government throughout the year, or to save the money,” he says.

Outsource Your Payroll

One area of small-business taxes that’s especially complicated and potentially costly when you make a mistake is payroll. “Having employees is a huge responsibility that comes with many filing and tax-payment requirements and hefty penalties even when you are just a day late or have paid the incorrect amount,” Seaman warns. “It doesn’t take long for a new business to go belly up because payroll taxes were not properly paid. Even if you choose a corporate structure or LLC for the personal liability protection, this is not a blanket safety net; the IRS can hold officers liable for nonpayment of payroll taxes. Hire a payroll company. The fee is nominal for the benefit, and they are experts.”

It’s also more secure for your company to get the payroll function out of the office and into the hands of a professional payroll company, Skrob notes. “Payroll checks and payroll tax returns are a common way for bookkeepers to defraud their employers,” he says.

Keep Your Records Up to Date

Tax time will go smoothly if you keep your annual accounting up-to-date, Krochman says. “No small-business owner wants to spend the time to recap an entire year’s worth of receipts, checks, credit card payments, etc.,” she says. “The project can become overwhelming and is usually done in a panic, which means items are missed and the stress level is higher than it needs to be.”

By taking a half hour a week to enter transactions, tax time runs more smoothly and estimated taxes can be quickly and easily calculated. If you require financials for a bank loan or insurance coverage, the numbers will also be at your fingertips.

Keeping your financial records up-to-date also helps you monitor the progress of your business, Seaman adds.

“Many small-business owners do an annual accounting to prepare their tax returns, but that doesn’t enable them to know how much money they’re making throughout the year. In order to maximize profits, you need to have a clear idea of how the revenue is being spent and what can be cut back,” Seaman says. “There’s always time to increase net profits—having your financial records up-to-date makes that possible.”

Read more articles on small business taxes.

Photo: Getty Images

MARCH 21, 2014In many ways, the moniker small business is a misnomer. When you consider that the average entrepreneur takes on the tasks that a big business parcels out to hundreds if not thousands of employees, a small business doesn’t feel so small.

As your own boss, you’re tasked with completing a wide assortment of duties required to keep your company thriving, from purchasing and finances to research and development and marketing. Considering the weighty responsibilities inherent in running your own business, we recently asked some small-business owners the following question:

What’s the biggest obstacle for small businesses in their communities? Is it support from local governments? Big-box competition? And how can small businesses work better with their local government and get more support?

The consensus is that big-box competition is a real threat to the small-business owner, but the good news is that what makes the small-business owner unique is what makes winning the big-box battle possible. Working with local government can also have a positive impact on the big-box threat.

Competing with the Big Guys

Behemoth retailers with their ability to monopolize distribution channels, spend more on marketing than you make in a year, offer loss leaders at will and enjoy volume discounts do make it hard for the small business to thrive, especially when the business is a startup, says Sam Androus, owner and CEO of Love+Grace,  a lounge-wear brand that launched its first collection last September.

 

“Big box competition can be a real problem when you’re first starting out, because as a new brand it takes some time to be recognized and accepted in the marketplace,” Androus says.

The good news is that a small business is the antithesis of a big-box company, says Mike Escobedo, owner and publisher of The Old Towne Orange Plaza Review, a regional publication he founded in 2001 that focuses on a historic district in Southern California that contains a high concentration of small businesses.

“Small businesses are everything that big businesses aren’t,” Escobedo says. “Generally, when you shop in a big-box store, you’re lucky to find help, and when you do and ask where something is, the employee often doesn’t even know if the store has the item or what shelf it’s on. Chances are the product may also be inferior. Go into a small retailer, however, and you can enjoy speedy, personalized service and most likely better products.”

Relationships Matter

Escobedo and other small-business owners feel that the key to keeping a small business thriving is relationships. “I’ve watched many businesses over the years, and those that survive are the ones where the owners and employees develop relationships with customers,” he says. “The business owners share their insights on products and perhaps most importantly, their passion, which is contagious and builds loyal customers.”

Relationships are paramount, agrees Karen Yankovich,  a business coach and social media marketing expert. “Developing a bond with customers is critical in this big-box age, especially when customers are using services like Groupon. Small-business owners must engage customers, or those customers will quickly jump on the big-box bandwagon to shop price without even a glance back.”

Making Local Government Work for You

Take the idea of relationships to the next level and use those skills to help make local government work for you as well.

“In my experience, the small businesses that get the most support from the local government are the ones that reach out and become a staple in the community,” Yankovich says. “Join the Chamber of Commerce. Be a fixture at community events. Local governments do try to support their businesses, but it’s not monetary support, it’s PR support. If small businesses want more support from local government, it needs to be a team effort.”

You can’t just take from local government, Escobedo agrees. “Make an investment in your local community, which is bound to positively affect your business,” he says. “Volunteer to work on events or serve on local boards, which will get you out in the community networking and building valuable customer relationships.”

Read more articles on leadership.

Photos: iStockphoto, Love+Grace

MARCH 14, 2014If you take a close look at the reason why your business isn’t growing as much as you’d like, you’ll likely find that sales is the missing ingredient. Since cloning yourself to increase sales is impossible, it’s necessary to hire a sales force if you want to spread the word about your business.

OPEN Forum community member Wayne Cichanski, cofounder and managing partner of Digital Blitz SEO, recently asked: “I am looking to grow our sales staff and haven’t had much luck building a sales team. Are there still people out there who take on commission-based sales?”

Viable Sales Option

If your product is superior and your marketing materials and sales pitch are solid, qualified salespeople will want to work with you on a commission basis, says OPEN Forum community member Bob Nelson, president of POWER Retailing  . “Hungry salespeople will work for a performance-based fee, but your company must have a proven track record to show them,” he says. “It’s all about your integrity, products and history of sales.”

When the stars align, commission-based sales are a win-win for you and the salesperson. You pay out your hard earned money only when a sale has been made, and the salesperson gets the opportunity to benefit financially from selling your high-quality, proven product.

Provide Training

In order to be successful, a commission-based sales strategy must provide thorough training to the salespeople, says OPEN Forum community member Marc R. Enriquez, founder of Resonant Advantage Marketing. Commission-based sales will work if “your company’s sales process is solid and you can train them to find and qualify leads and sell your services,” Enriquez says.

The training should include a thorough review of your product or service, as well as an explanation of your customers and what influences them. Also include an overview of how your customers have purchased in the past.

How to Find Qualified Salespeople

Enriquez suggests advertising for commission-based salespeople anywhere you would post jobs, including online venues like Craigslist. When posting the position, “make your application process itself a test as to whether a person can follow directions,” Enriquez suggests. “Don’t make it as simple as allowing the applicant to reply to your Craigslist post. Those who do will immediately disqualify themselves. This saves you a lot of time in dealing with better quality candidates.”

Base Pay Versus Straight Commission

While straight commission is by far the least expensive option when it comes to hiring a salesperson, you may want to consider base pay plus commission or a bonus structure, says OPEN Forum community member Bennett Johnson, a small-business consultant, coach and founder of Arete Business Methods. “There is plenty of research that says a combination of base pay plus commission or a bonus structure is the most effective tool for motivating top sales team performance,” he says.

Because a base pay guarantees the salesperson a salary, it may be easier to find someone to sell your product or service. As an employer, you can also set quotas that must be met in order for the salesperson to keep the job. You can also pay salaried employees less commission than non-salaried ones, but this is offset by the fact that you have the expense of an employee without the guarantee of any sales.

Encourage Commitment

Unless you have a lot of sales to be made, commission-based salespeople tend to work for other companies or even hold full-time jobs, and that can be problematic, says OPEN Forum community member Avi Cyperstein, who oversees public relations for LUX-HAB Services.

“It is definitely very challenging to find the right candidate. I am currently looking for a few commission-based salespersons to promote our company that helps people who struggle with addiction to get placed into treatment facilities,” Cyperstein says. “Most of the staff we have right now on commission work part time, as they have other jobs. This means we become more of a ‘side thing,’ which isn’t that great for us.”

Cyperstein thinks the solution to the non-commitment issue is to find salespeople who believe in their ability to produce, and he also thinks that small-business owners should offer additional opportunities to salespeople once their hard work pays off.

Make signing on as your salesperson exponentially lucrative to potential commission-based salespeople. This is something that Cichanski plans on doing once he finds the right sales team.

“I will pay my salespeople recurring commissions,” he says. “As long as clients remain customers, we will pay out commissions to salespeople each and every month on those same accounts.”

Read more articles on sales.

Photo: Thinkstock

MARCH 12, 2014For years, Merilee Kern has used virtual assistants. The owner of the PR agency Kern Communications offloads a wide variety of tasks, freeing her up to concentrate on running and building her business.

“Virtual assistants can be an invaluable asset to ease and expedite your professional life, and the availability of high-quality virtual assistants has increased,” Kern says. “You would be amazed at the caliber of talent in today’s VA pool.”

Business-Grade Virtual Assistants

It used to be that most virtual assistants were limited to basic administrative tasks like email management, database entry or research, but the new breed of virtual assistant is highly skilled, educated and equipped for even the most specialized tasks.

“When I first looked into using virtual assistants, I expected to primarily find people with clerical skills, but I soon discovered college graduates able to do just about anything, including writing blog posts,” says Kelly Walsh, owner and president of the coaching and consulting companies One Smart Career and One Smart Life. “The range of skills you can find among virtual assistants is tremendous, and using them is something I now also suggest to my clients in order to accelerate business growth.”

Small-business owners can get VA help with just about anything, agrees Sandra Lewis, founder of the virtual support company Worldwide 101. “Globalization and the resulting virtual work paradigm and the shift since the 2008 financial crisis to freelance/fractional work has made it easy to get skilled, reliable help—providing you hire a business-grade virtual assistant from a company that recruits and vets highly skilled VA’s.”

Armed With Advanced Skills

Skills typically covered by business-grade VAs include:

• Any administrative tasks, including email management, scheduling, travel planning and bookkeeping
• Customer service via email, live-chat and phone
• E-commerce management, including online order processing, stock management and ordering, website product updates and refund processing
• Social media and marketing (email newsletters, sales pages, blog posts)
• Lead generation
• Design (business cards, flyers, email templates, Web graphics)
• Web development (anything from installing plugins to a complete site redesign and build)
• Paralegal support
• Research/data compiling, intelligence gathering, reports
• Presentations using PowerPoint

Finding the Ideal VA

Locating the right VA for your business can be tricky, says business coach Suzanne Evans, author of The Way You Do Anything Is the Way You Do Everything: The Why of Why Your Business Isn’t Making More Money. She experienced exponential growth when she started delegating tasks to virtual assistants but notes that the selection process can be somewhat challenging.

“The saturation of the VA market has made it more difficult to discern abilities and skill sets,” she says. “VAs are like many virtual services. They are unregulated, uncertified and vary vastly, which makes vetting and researching to match the right VA to your company the key to long-term success.”

Consider the following tips when searching for a virtual assistant.

Be realistic. “It is unlikely that you will find someone who can do everything, and if the person says he or she can, be cautious,” Lewis says. “Most VAs will have either an admin or a customer service specialty by default, and then some VAs have additional specialist skills like social media and marketing or design, or Web development. With a good quality VA company you can get a primary VA for your core tasks and then have additional team members available for occasional tasks like design or Web development, as well as backup members, in case a VA gets sick.”

Look for a satisfaction guarantee. This indicates that the company stands behind the quality of its team and is concerned about reputation.

Ask about the recruiting and vetting process. “Make sure you find a company that goes to great lengths to hire the best VAs,” Lewis says. “You need an assistant with a great attitude who cares about your business.”

Look for a good match. Choose a company that makes the effort to really match you with the right VA. You want someone who not only possesses the skills you need, but a VA you can trust and with whom you can communicate and effectively delegate.

Start small. “As a small-business owner, the bottom line is paramount, and your default is probably not to spend money,” Walsh says. “When budget is a concern, start with just three or four hours a week and see how it works. If it proves successful, add more hours.”

Read more great articles on productivity.

Photo: Thinkstock

MARCH 10, 2014Several years ago while driving in a snowstorm, Sean Castrina passed a rundown office building. On a hunch, he decided to turn his car around and take a closer look.

“Something told me that buying the building would prove a game changer for my business, even though it would mean paying considerably more for office space,” says Castrina, a serial entrepreneur, business coach and author of 8 Unbreakable Rules to Business Start-Up Success. Castrina’s hunch paid off. The building ended up providing such great visibility that business increased exponentially.

When it comes to making key decisions and implementing change, successful small-business owners know that analyzing the facts and figures can only take them so far. While face-value information does help, at the end of the day, they rely on their gut reactions to guide them.

A Leap of Faith

Talk to successful entrepreneurs, and you’ll hear many stories of inventions and discoveries and even whole companies born of intuitive leaps. Take for example small-business owner Tara Stoutenborough, who opened Strategies, A Marketing Communications Corporation in 1991 with her partner Linda White.

“Guided by our intuition, we walked out the door of our former agency, set up an office with a relatively small investment and agreed we could only afford to work for three months for free, even though the rule of thumb is to expect no salary for nine months to a year,” she says. “The business came in, and three months later we paid ourselves a salary and never looked back.”

Sixth Sense: On Target, Yet Often Ignored

Despite the sixth sense often being accurate, many small-business owners discount instincts in favor of more concrete facts and figures.

“We’ve been taught that if something can’t be supported by research, it must not be true,” Stoutenborough says. “Nonsense. Every day, I see programs and ideas ‘working’ before the statistics prove it or even when nothing can prove it. Good results often come from many nearly microscopic factors that measuring them accurately is virtually impossible.”

Although Marcy Hogan has always used intuition in her personal life, it wasn’t until recently when she opened up her latest business that she began listening to her inner voice. “I thought that logic was more businesslike, and I was afraid that people wouldn’t take me seriously if I relied on my hunches,” Hogan says. “Then my husband, Brian, and I listened to our intuition and opened Send Out Cards, soon discovering that our hunch paid off.”

Logical thought often trumps intuition in the business world, agrees David Wimer, a business advisor and author of INSIGHT: Business Advice in an Age of Complexity. “The western culture tends to stress the ability to explain why we do everything we do,” he says. “We learn that the best (i.e., safest) choices are those that can be explained. We call this being ‘rational,’ and it breeds a fear of making a mistake and feeling foolish.”

Analyzing and researching can take you a long way, but you ultimately must “go with your gut,” Stoutenborough says. “If the resume looks good, but the person you’re considering hiring doesn’t feel like a fit, or the partnership you’re considering entering bothers you on some indescribable level, stop or you’ll proceed at your own peril.”

Castrina always listens to intuition when choosing employees. “Instinct is critical in dealing with a person you barely know,” he says. “I can’t count the number of times I met a prospective employee and knew the person had potential; likewise, alarm bells go off when the fit isn’t right.”

Tapping Into Your Intuition

If you understand where intuition comes from, it makes it easier to trust and access it. “Intuition is the unconscious mind letting us know what is going on, but we don’t think it, we feel it, and we just know,” Wimer says. “That knowing is based on experience and practice, not some mystical capacity.”

Creativity comes from a part of the mind that isn’t delineated by language, agrees Stoutenborough. “Ideas literally pop into your rational mind, and you can’t explain them. They come from that place backed by a healthy dose of experience and life wisdom. We know. We may not be able to explain how we know, but we do.”

To tap your intuition, Hogan suggests mind-expanding activities that encourage reflection and contemplation, like journaling, meditation, deep breathing exercises and engaging in creative activities. “When you take a break from your routine and create, your mind becomes more open and that helps cultivate intuitive thoughts and feelings,” she says.

To access those intuitive thoughts that are sure to increase business, you need to respect the process, Stoutenborough says. “Get over the idea that it’s airy-fairy. Intuition is as much a part of the brain as logic. You can inspire your intuition by cramming as much pertinent data into your brain as possible. Read the resume and do the background check, but then sit quietly and close your eyes for a couple of minutes. Your analytical brain will relax, allowing your intuitive mind to pop through. See what it has to say.”

Read more articles on productivity.

Photo: Getty Images

MARCH 07, 2014Today Phrantceena Halres heads a global security firm that protects infrastructure assets for private, municipal, corporate, nuclear and government installations and power plants, but when Halres started her company in 2002, the small-business owner soon found herself right smack up against the glass ceiling.

“Security has always been a vastly male-dominated sector, and my introduction into this old boys’ club industry was met with serious criticism and scoffs,” says the chairman and CEO of Total Protection Services Global (TPS).  “In fact, for a long while, it was difficult to land any big contracts for the sole reason that I am a woman and an African-American.”

Unfazed by the old boys’ club barriers, Halres persevered. Today, besides growing as a successful security company, she has managed to build TPS into a leader in nuclear security.

If you’re hitting the glass ceiling, there are actions you can take to break through.

Believe in Yourself and Your Business

Michelle McCloskey (below, left) is owner of Run Around Betties,  a company that provides small-business owners and consumers with personalized services, such as errand running, shopping and making travel arrangements. Last spring, she and her business partner enrolled in a 6-week workshop that promised mentorship and useful information on customer development, but they found themselves in the thick of the old boys’ club.

“Right now, the boys’ club seems to be enthralled by tech and all things digital, even though service businesses are the fastest growing sector of the economy,” she says. McCloskey and her partner were the only female team present at the event, and when they attended the only mentoring meeting they were given during the workshop, their assigned mentor told them that they might have “a nice little business” someday, but they shouldn’t expect it to generate big returns.

“We look at all of the hot, fast-growing, female-led service businesses like Drybar and believe that Run Around Betties has a lot more potential than those guys think,” McCloskey says.

“Attitude, preparation and endurance get you to where you want to be,” Halres adds. “There are definitely major issues concerning women in the workforce, but that doesn’t mean that with effort, women can’t be a dominant force in any business sector. I did it, and there will be many women to follow.”

Take Advantage of Today’s Resources

There are far more resources now than there were 35 years ago, so don’t be shy about using them, says Judith McQuown, author of the bestseller Inc. Yourself: How to Profit by Setting Up Your Own Corporation.  She experienced the glass ceiling in the 1970s while working as a Wall Street analyst and New York City senior investment analyst.

“My boss told me he wanted to promote a younger, less competent, less productive man instead of me, so I responded by forming my own company providing writing and editorial services to the financial and publishing industries,” says McQuown, who has always taken advantage of resources aimed at women-based businesses.

“The SBA offers a great minority program under Section 8(a) of the Small Business Act. In this program, small, minority-owned businesses can bid on contracts that provide services to the federal government, and in fiscal year 2012, these contracts amounted to $15.9 billion,” she says. “Most states and cities offer similar programs, as do many Fortune 500 companies.”

Change the Playing Field

Jockeying for a position of respect and authority sometimes means altering the landscape in which you’re operating. In this case, the best way to change how those on the playing field react to you is to change yourself.

“Show you’re serious about your business by establishing a credit record immediately and become better acquainted with your bank manager,” McQuown suggests. Showing you’re fiscally responsible conveys the message to yourself and those in the business community that you intend to stick around. Also network and join professional organizations and volunteer for leadership positions.

Be Purposeful

In order to succeed as a woman business owner, Halres lives purposefully every day. “My greatest lesson as a woman business owner was understanding the importance of knowing who I am as a woman and exactly what kind of business I wanted to create,” she says. “With my company, it would have been easy to copy other players in the security space and emphasize the same values, but I wanted to be different and lead with innovation, vision, openness and dedication to the community. Standing out is tied to your purpose.”

A freelancer since 1985, Julie Bawden-Davis has written for many publications, including MSN Money.com, Parade.com, Entrepreneur, Better Homes & Gardens and Family Circle.

Read more articles on women-owned businesses.

Photos: Thinkstock, Run Around Betties

FEBRUARY 24, 2014When it comes to building a company, small-business owners face a common conundrum. Getting the word out about services and products is vital, but advertising can strain the business bank account. For this reason, small-business owners, like OPEN Forum community member Laurie Dollner Mathews, are cautious about where they invest their advertising dollars.

The owner of LDM Executive Services, which offers executive assistance, graphic design and event coordination virtually and locally, asks: “What was the one place you paid to advertise that you feel was most successful with a limited budget? I’m just starting out, and if I can scrape together enough money for some advertising I want to spend it in the best place possible.”

Fortunately, today’s business climate offers the best of times for small-business owners who wish to promote their services and products with customers in an affordable way, says Ebong Eka, CPA, a tax and small-business expert with Levyti Consulting, LLC.

“In the past, advertising was akin to throwing spaghetti against a wall to see what sticks,” says Eka, who is also the author of Start Me Up! The No-Business-Plan Business Plan. “Now there is social media and the ability to inexpensively test advertising campaigns and target customers who will most likely buy your products and services.”

How can you market your business without draining your bank account?

1. Digital Ads

For a relatively inexpensive investment, well-placed digital ads can help you effectively target potential customers, says OPEN Forum community member Shawn Shutts, chief operating officer of Fuwak Connections. “For services such as executive assistance, Google Adwords and/or Facebook Ads are a great place to start,” Shutts says. “You only pay out based on clicks, and you can market to certain regions, people and so on.”

2. Facebook Advertising

OPEN Forum community member Kosio Angelov is a big fan of Facebook paid advertising. “You can get really targeted, and the cost is relatively low compared to Google Adwords,” he says. “If you know the demographics of who you are targeting, you can literally cherry pick only the best prospects and show your ads only to them. Or even better, if you have a competitor who already has a good Facebook presence, you can target that company’s audience directly.”

Sponsored posts on Facebook are particularly effective, says Eka of the posts that are built around user activity. With these posts, advertisers pay to highlight actions already taken on the network or within a connected app.

“You can learn what people are specifically interested in and tailor sponsored posts geared to your customers’ searches and interests,” Eka says. “For example, if you know that your customer is a 35-year-old woman who lives within a particular zip code, has a certain income and recently purchased an expensive blouse from Macy’s, you can create a sponsored post/update that says: ‘If you like blouses from Macy’s, you’ll love this belt and purse combination from XYZ Store. And if you click today, you’ll get a 30 percent discount!’”

3. Google Adwords

Although Adwords have become costly because businesses have bid up keywords, Eka says there is a way to make this advertising method less expensive. He suggests using the keywords at the bottom of the first page of a search. “For instance, the word ‘plumber’ will come up first and be expensive, but further down the page are plumbers supply and plumbers jobs. Those will be effective, yet less costly,” he says.

Target marketing is also important with Adwords, says Jared Kugel, director of business development at Full Scale Media. “Narrow down your market, rather than shooting in the dark,” he says. “For instance, if you do business signage, don’t try ‘Business Signage North America,’ which is way too broad. Narrow it down to a particular area of interest or geographic region.”

4. Social Media

While social media is technically free, many small-business owners are simply too busy running their companies to maintain effective social media campaigns, says Kugel, who suggests hiring a local college intern or high school student to inexpensively manage your various platforms.

“If you’re too busy, reap the benefits of an active social media campaign by paying someone a nominal wage for a couple hours a day to set up your various channels, come up with engaging campaigns and communicate with customers online,” he says.

5. Reviews

Considering that many people check out reviews before trying a product or service, it makes sense to set up free accounts on directory sites such as Yelp and Citysearch. To take full advantage of these cost-effective advertising platforms, Kugel suggests paying someone a reasonable fee to develop the best looking pages possible with tempting pictures and descriptions of your products and services.

Do you have another suggestion or channel you’ve tried with some success? Please share n the comments below.

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Photo: iStockphoto