How to Revive a Failing Small Business

Do you ever feel like you want to close the doors of your small business for good? Well, you are not alone, and giving up shouldn’t necessarily be your first option.

Many successful businesses we look up to today have been there too. Sales hitting rock bottom, the business itself sinking deeper and deeper into debt, auctioneers at your doorstep, impending bankruptcy, you name it. But you know how they all weathered the storm? It’s simple. They never called it quits; they acted.

Understandably, watching helplessly as your small business falls apart can be really frustrating and, out of desperation, many of us end up making unwise choices. To revive a failing small business, you’ll need to do more than the obvious tricks like re branding. So, keep reading to learn how you can breathe new life into your small business.

Innovate

Markets, people, and technology all change. What’s relevant or trendy today isn’t guaranteed to stay the same. Your business, too, should change in order to adapt to the ever-changing world. Choosing to focus on today’s marketplace without anticipating the future is what made known companies such as Eastman Kodak, Motorola, Sony, and Yahoo lose their edge. Experts call it the strategic trap.

There’s also the psychological trap, where leaders or business owners focus exclusively on what made the business successful and fail to adapt to new changes. Also, not investing in your equipment or other systems that run your company is another way many businesses end up losing on new and relevant investments.

Put simply, if a business doesn’t innovate or resists innovation, chances of it failing become high. At one point, all the companies on the list dominated the market in their respective fields; the great lesson any small business owner can learn here is to never make the same mistakes they made.

Adapt to new changes, innovate your products and services, and also, rather than trying to deal with everything on your own, listen to your friends, family, employees, and business partners. Invite them to share any ideas that could help revive a failing small business.

Develop a new marketing plan

Marketing is one of the few elements that can either make or break your small business. Did your previous marketing strategy deliver good results? If no, then it needs to be refreshed.

Small business expert Melinda Emerson lists the essentials of a good marketing plan as follows:

• Market research
• Target market
• Positioning
• Competitive analysis
• Market strategy
• Budget
• Metrics
• 
  

Each one of these items matter in turning around a failing company, but I think knowing your target audience is one of the biggest factors. Try to understand them by obtaining all the essential information that you can about them. You can speak to them directly through email or social platforms, and request them to share feedback on your services or products, plus any other suggestion(s) they may have. Also use creative and productive ways such as personalized video marketing to convert them.

Look for a business partner

It’s true that two heads are really better than one, and this can manifest itself if you can find a partner who will bring in fresh ideas or can invest capital in the business. A partnership can expand your network, business offering, and customer reach. When looking for a business partner, always narrow it down to people or businesses whose values, mission, and style complement yours.

Take new risks

Facebook founder Mark Zuckerberg was once quoted saying that the only strategy guaranteed to fail is failure to take risks. If you hope to experience solid growth in your small business, forget about waiting for success to happen on its own. Go for it.

What that means is you should not just confront but embrace risks and leverage them. It can be daunting at first, but then again, you will never access the good opportunities out there if you never try. This also doesn’t mean you should just take any risk that comes your way. It’s best to evaluate the potential gains and setbacks before making any decision.

You can start by taking smaller risks. If there are gains, this will improve your confidence, and if things don’t go as you expect, the setback won’t necessarily be huge. Also whenever you take a risk, implement your plan fully and pursue it until you reach the final stage.

To sum up, one uncomfortable thing every business owner or leader has to live with is that no business can be healthy all the time. There will always be wins and losses. There will also be turbulent times threatening to strip all your hopes away, but if you choose to innovate, refresh your marketing plan, scout for a business partner, and take on more risks, you will rise again, you will achieve growth, and also reach profitability.

5 Hot Employee Recruitment Trends That Will Change How You Hire

In the last year we’ve seen new advancements and applications in technology that have made the recruitment process easier. We’ve also seen work forces becoming more diverse, and remote work growing in popularity, changing the way recruiters fill open positions.

But the recruitment process isn’t done advancing yet. In the future we can expect to see continued changes to the way we hire new talent. To help you gear up for these changes, let’s take a look five recruitment trends we believe will be major game-changers this year.

1. Further expansion of AI in hiring

It seems that artificial intelligence is making its way into just about every area of the business world, making it one of our top recruitment trends. While the use of AI in hiring was prevalent throughout 2017, it was still a fresh concept. This year we expect more and more companies to implement AI into their hiring process.

AI in recruiting can solve major problems for companies in all industries. From cutting down the amount of time HR professionals spend sifting through stacks of applications to removing biases during the hiring process, AI can help companies find the right talent and diversify their workforce. For these reasons and more, we expect to see sizable growth in the number of companies using AI in recruiting.

We also can expect to see the way HR managers use AI to expand. In addition to making the hiring process easier, automation tools can be used to improve communication with candidates, increase the quality of candidates, and reduce the time it takes to hire new talent.

2. Increased focus on candidate experience

Last year we started seeing a shortage of qualified talent in a number of industries. With about 40% of global employers reporting they weren’t getting the desired skills in their applicants, it means we’re operating in a candidate-driven job market.

For those in recruitment, there needs to be an increase focus on a candidate’s experience—maintaining a strong customer experience can encourage a stronger bond between a company and job candidates. If the pool of qualified candidates continues to shrink, companies will be fighting for the same talent. When your company is not considering your candidate’s experience during each stage of the application process, you may lose them to another opening.

Candidate experience is especially crucial if you’re using an automated application process; HR technology can actually improve your candidate experience. Using automation software can make it easier to stay in contact with your candidates, ensuring they get the information they need to stay satisfied.

3. More and more applicants turning to mobile devices

The marketing world has been preparing for a shift to mobile users for a few years now. As more and more individuals choose to let go of their desktop and laptop computers for tablets and smartphones, the way they’re browsing the web is changing. This means the way they’re searching for and applying for jobs is changing, as well.

Unsurprisingly, millennials make up the most active group of mobile applicants. However, Gen Xers and Baby Boomers are still incredibly active participants. With 73% of Gen Xers and almost 60% of Baby Boomers using mobile devices to search for jobs, a mobile application process needs to be easily accessible, regardless of industry or job level. Additionally, Google and other search engines give preference to mobile-friendly websites, meaning your page will rank higher if you’re using responsive design.

As we continue to see the trend towards mobile use grow, companies need to be considerate of what this means for applicants who are applying on these smaller screens and devices. Company websites—as well as applications—should be fully responsive and easy to view, no matter the device the visitor is using.

4. Continuing shift towards remote work

Over the past few years, we’ve seen a relatively steady increase in the number of individuals choosing to work remotely. Remote work gives companies the ability to hire the best candidates, regardless of their location.

With more and more companies and industries embracing remote work, the way talent is acquired to fill job positions is also changing. Recruiters are no longer confined to candidates within a particular area, expanding the pool of applicants and making it easier to find individuals who fit their job descriptions.

However, as the shift towards remote work continues to grow, recruiters will need to change the way they screen and evaluate candidates. Remote workers require different skills than in-house employees, meaning recruiters may need to be retrained to know what to look for in a remote applicant.

5. Use of social media (beyond LinkedIn) as a recruitment tool

When we think about recruiting talent on social media, most recruiters immediately think of LinkedIn. While LinkedIn has introduced the idea of professional networking on a social media platform, we can expect to see other social media platforms join the recruitment world.

Social media platforms like Facebook, Twitter, and even Instagram encourage more engagement with candidates and attract higher-quality talent. When companies use their social media platforms to engage with prospective employees, they’re able to reach an even bigger pool of passive candidates.

We expect to see recruiters stretch beyond just connecting with talent on LinkedIn. We also anticipate more “behind the scenes” social media accounts, allowing companies to show off their company culture by showcasing their team’s employees and inner workings.

Preparing for recruitment

The recruitment trends we can expect to see all center back to one thing: technology. As the way we use technology continues to change, we can expect to see shifts in the way recruiters find, engage, and hire new talent.

These technology-driven recruitment trends will only continue to grow and change in the years to come. Properly preparing to implement new technology, ideas, and practices into the recruitment process can help HR professionals stay on top of the ever-changing needs of the recruitment industry.

The One Word You Need to Say to Move Your Business Forward This Year

Think back with me for a moment. In your business, how often did you say no in the past year? I’m willing to bet it was more than the amount of times you said yes.

As work forces lean out, but the economy continues to prosper, I’ve found, through my experience coaching, an increased trend in businesses saying no—whether it be to additional business opportunities, additional product offerings, investing in the workforce, or simply because saying no is usually easier than saying yes (and identifying and achieving the follow-up tasks that a yes requires).

In the past year, I’ve noticed many leaders have stopped moving forward because things seem to be going well. I hear things like, “Everything seems okay, right? So why push?” In just the past few months alone, I have seen several business situations where companies appear to be understaffing their businesses in an effort to increase bottom line profits, or even neglecting the phones—both of which shut down new opportunities and shift gear into “idle” mode.

Times of hardship are of course a time for saying yes to new opportunities, but I would argue that the most positive times in business are also moments for leaders to give a yes, push the hardest, and gain additional steps over and above the competition. After all, it’s infinitely more difficult to break ceilings or set new goals from your lowest moments.

There is, of course, a flip side to this coin, and that is saying yes far too often. If given too readily or in haste, saying yes can lead to loss of focus, wasted time, or even exhaustion.

Leaders, if you’re not sure how to start saying yes in your business, commit now to making the effort and staying mindful of new opportunities by taking the following steps:

1. Have a plan, and focus on the high payoff activities that move the business forward

Just because I’m encouraging you to say yes more often in business, it doesn’t mean I’m encouraging you to do it blindly. An important first step is to have a plan in place that identifies many potential opportunities or activities that have a high return on investment. Once secured, sit down with your entire team to evaluate these opportunities,  encourage everyone to keep their minds open and be willing to say yes, even if some ideas seem out of the box or a little risky.

2. Manage your time better so that you free up time to say yes

As a leader, you probably realize that poor time management can cause you to stress out and feel overwhelmed. What you may not realize is that moments of stress or disorganization can cause you to unnecessarily shut down when hearing about new opportunities. To free up your brain to new opportunities, first free up your time.

3. Learn to say no to things that waste time or don’t add value

Just as it’s important to be open to a yes, it’s important to know when saying no is really powerful and crucial. You should be able to identify things that waste time or lack value for your business. Once identified, don’t be afraid to shut those things down.

4. Have a peer network for bouncing ideas

Keep this in mind: Many of the biggest breakthroughs in business come as a result of going for something to which others have said no. Sometimes these opportunities or challenges will present themselves to you, and it won’t be clear how to answer. Maybe an opportunity has a bit of a bad reputation or it’s outside your scope of work or area of expertise—either way, these opportunities shouldn’t be shut down just because you’re not as up to speed as you could be. Go to your peer network for advice on whether you should or should not say yes. (If you don’t have a peer network, get out there and start building one.)

These four steps help illustrate the idea of a proper “yes strategy” in your business, which can reflect a positive mindset and move you and your business forward. The act may feel a bit uncomfortable and leave you feeling overcommitted at first, but in the long run you will expand your capabilities to grow yourself and your business to take on more, which can lead to additional success.

What Worries Small Business Owners the Most?

As we start the second month of 2018, how are small business owners feeling about their prospects for the coming year?

First, the good news: Overall, small business owners are feeling positive about their finances. Nearly half (47%) say their businesses’ sales increased in the past six months. That’s the highest percentage recorded by the survey since the second quarter of 2013. In addition, 37% say their financial position is better than it was one year ago.

Now, the bad: Although small business owners are feeling good about their finances, they’re not getting overly confident. There are still several concerns affecting small business owners, and two of the top three worries have to do with money.

Here’s a closer look at what’s keeping small business owners up at night—and what you can do about it if you’re tossing and turning, too.

Taxes

The biggest concern for small business owners is taxes. Almost half (45%) of small business owners in the survey say taxes are a major worry for 2018, and 30% say tax laws had a negative effect on their business last year. Of course, taxes typically rank high on the list of small business owners’ least favorite things, so these results aren’t exactly surprising. However, with the effects of tax reform still to be determined, small business owners have more reason than usual to feel uncertain about how taxes will affect them in the coming year.

If you’re worried about taxes: Put a good accountant or tax preparer on your side. If you normally prepare your own taxes, this may be the year you want to enlist professional help. A tax professional who specializes in helping small businesses in your industry can be invaluable to ensuring you get the tax breaks you deserve. It’s a good idea to talk to your tax preparer early, so you can get advice as to any changes you may want to make in 2018 to reduce your tax burden.

Cash flow

The second biggest concern of small business owners in the survey is managing their cash flow. More than four in 10 (42%) say this is a challenge for them—up 11% from last year’s survey. In other words, although small business owners are currently managing their cash well, they’re not sure they can continue to do so.

If you’re worried about cash flow, there are several steps you can take. Start by keeping a close eye on your cash flow. Too many business owners don’t pay attention to their cash situation until it’s too late. If you are in an industry with thin margins or slow-paying customers, or run a seasonal business, it’s especially important to stay on top of your cash flow weekly or even daily. Take steps to accelerate payments from customers while delaying your own payables to keep more cash on hand.

Technology

Finally, almost one-third (32%) of entrepreneurs in the survey named “keeping up with technology” as a major challenge, up 7 percentage points from the same time in 2017. With new technologies such as artificial intelligence, voice-activated assistants, and chat bots entering the small business realm, it’s no wonder small business owners feel a bit overwhelmed by the rapid pace of change. Since businesses of all sizes and in all industries are increasingly advertising, marketing and selling online, however, it’s more important than ever to be up-to-date on what technology can do for your business.

If you’re worried about technology: First, find a reliable industry publication/website that covers technology as it relates to your industry. Reading it regularly will help you be aware of technology trends. Not all of them will turn out to have a major effect on your business, but you’ll at least get a heads-up about changes that could impact your company. Depending on your industry and how long it’s been since you’ve upgraded your technology, it could also be worth hiring an IT consultant to assess your current situation and make recommendations.

Speaking of recommendations, I was shocked to see that more than one-third (36%) of business owners in the survey don’t have a website. If you’re one of them, get with the program!

A little bit of worry about the future is an inevitable part of being a business owner. Fortunately, there are plenty of smart moves you can make to be prepared and help you sleep better at night.

Why Do Customers Leave? 3 Reasons Why You’re Losing Business

An air-tight customer retention strategy is the secret sauce you need to increase your profits. But trying to increase customer loyalty without first understanding the reasons behind why your customers are leaving is like trying to eat tomato soup with chopsticks—you may be getting a little taste, but chances are you’re not really catching any of the good stuff.

So why is customer retention so important? Well, for starters, there’s an old business rule that says it’s six times more expensive to acquire a new customer than it is to keep an existing one. In other words, it’s a heck of a lot
harder to convince a new potential buyer that you’re worth their money than returning customers who
already like your product or service. The key is making sure your current customers continue to like you. How do you do that? Well, let’s look at the top three reasons that customers leave businesses.

1. They had a bad experience

Statistics show that 68% of customers leave a business because of poor attitude or indifference on the part of the service provider. Maybe a salesman talked down to them, maybe a customer service rep seemed a little annoyed, or maybe the teenage cashier just got into a fight with their BFF and wants the whole world to know all about it. To your employees, this may be just one random customer that they’ll likely forget about by tomorrow, but you can bet your bottom dollar that your customer will remember that experience the next time they think of coming your way.

The obvious remedy is to train your employees that the customer always comes first and to not let them walk out of your door unless they’re happy. Despite your best training efforts, though, there may still be times where a customer has a bad experience. In this case, it’s best to immediately remedy the situation and promise the customer that it won’t happen again. Throwing in a discount on their next purchase goes a long way in these situations. The quicker you do this, the more likely the customer will be to give you another chance.

2. Their loyalty isn’t rewarded

It’s no secret that just about every business nowadays has a loyalty program of sorts that rewards customers for repeat visits. It’s worth noting that the average American household is involved in 29 of these programs, but did you know that they only actively use (earning or redeeming just one point per year) 12 of them? What does that tell you? That the loyalty program itself isn’t enough to keep your customers coming back for more.

For example, let’s say that there are two restaurants right down the block from your customer’s office. The food and service are fantastic at both, but one has a loyalty program that gives them a free side for every $100 spent, and the other has a loyalty program that gives them a free entrée for every $100 spent. Now, where do you think your hungry customer is headed for lunch every day?

Rewarding customer loyalty is paramount to keeping that loyalty. Occasional discounts, letting them try out new products before release, throwing in an extra service for free every now and then can all go a long way toward making a customer feel like they are truly valued and appreciated. But, what about adding a personal touch?

Customers want to be more than just another number. Developing a personal relationship with your customers will not only increase their loyalty, but give them a reason to brag to their friends about your business. Customer retention AND word free of mouth advertising? Now that’s a two-for-one deal that’s just too good to pass up.

3. They find a better deal elsewhere

Let’s face it, a customer can be completely satisfied with your product or service—but if it doesn’t save them dollars, it doesn’t make sense. If they find a considerably cheaper or more convenient deal for a comparable product or service elsewhere, they are likely to take it—and customers are always looking for the right deal.

This means that you need to ensure your deals are at the forefront of their mind. Business text messaging is a fantastic way to do this, as customers are always on their phones and getting updated on what’s new. Why not update them about what’s going on with your business? In 2012, the CFI Group found that texting is the highest rated contact method when it comes to customer engagement.

With that in mind, a quick “Hey Jen! Just wanted to let you know your favorite product went on sale today” text message should be enough to make a customer think twice about getting their goods from the new store just around the corner. They already know that they like what you offer, and now they know they can get a deal on it. (In the business world we call this a “no-brainer.”)

Customer loyalty is the gift that keeps on giving

At the end of the day, it’s much harder to acquire a new customer than it is to keep an old one. Sure, you may have to invest a few dollars in your customer engagement program, but it will still save you money you’d otherwise have to spend on new customer acquisition.

And one of the biggest benefits of having loyal customers is that they will spread the word about your business to friends, coworkers, and family members. This means you’ll start seeing new customers without having to spend a dime to attract them.