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“Upload Photo Here” B2B Gets Personal

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Creating B2B marketing content that brings in leads and builds your brand is a real challenge! Bound by (real or imagined) expectations to appear “business-like,” B2B content creators are known to merely deliver the info that decision-makers need—the what, why, when, by whom and how a product or service is used, topped off with a serviceable call-to-action. The particulars will be in there but the end result is usually content that’s dry and impersonal. It doesn’t reach out and touch, it checks off the boxes.

If developing B2B marketing content is your responsibility, keep in mind that the decision-makers you aspire to influence are actually human. They laugh, they get bored, get frustrated, curious and (sometimes) inspired. They are busy, if not overwhelmed, and it takes something special to get their attention and win their trust. Your target audience responds best to content that is fresh, unexpected and shows that you understand what’s important to them.

Maybe you’re ahead of me and already have a guerilla marketing campaign in the works, as was discussed in last week’s post? But once the guerilla sizzle has grabbed audience attention, back it up and bring the steak. Your next move is to convert the buzz into confidence and trust that leads to loyal relationships. You achieve that by knowing your clients and using that knowledge to develop content and other means of communication that demonstrates you have their priorities and needs on your front burner. Below are factors to keep in mind and actions you may decide to take as you re-examine your B2B marketing strategy and prepare your organization for the start of a new year.

Personalized customer profiles

To figure out how to sell your products and/or services, you must know the goals and priorities of your prospects and have an idea of what might worry them, too. Accurate and updated client information is among your most valuable resources; data can be collected in quick-and-easy, nonthreatening ways, on your website or social media platforms. In exchange for a prospect’s name, contact info, business name and category, you may offer free 15 minute video consultations, free copies of your case study, or a free link to the webinar on which you made a guest appearance info. Inbound marketing tactics, spotlighted by a tempting call-to-action, not only moves prospects through the sales funnel, it also functions as a portal for client info.

Beyond basic contact info, a review of previous client or prospect interactions with your company will reveal more detailed info, including the purchasing history of current and lapsed clients, their buying preferences, concerns and the amount they spend. Get to know your target audience by understanding their unique preferences and help yourself to retain clients, make more sales and reduce churn rate. Clients and prospects are what a mailing list is all about; it’s members represent potential sales revenue for your company. Consider the following questions as you build customer profiles.

  • Who is a window shopper and who is researching with a goal of buying? Have you designed a “try before you buy” option available to undecideds, or is it effective to initiate a face2face or video meeting to show undecideds how your solution will solve problems and achieve objectives that matter to them?
  • Who are they buying for? Is the prospect an end-user and stakeholder, who influences the purchasing decision, or is the decision-maker, who may not directly use the product or service, doing the shopping?
  • After they complete a purchase, what kind of follow-up support, including info on the optimal use of the product or implementation of a service, would the new client appreciate?

Purpose-driven content

Companies are re-evaluating how they deliver their marketing messages and many now feel that creating purpose-driven marketing content is integral to being seen as relevant to potential buyers. The more you know about the goals and buying behaviors of your prospects, the more successful you’ll become in selling to them. You want information that guides you to describe, price, deliver and provide after-sale support for your product or service in words and actions that are quickly understood and strike the right chords with the target audience and in so doing, earn their trust and confidence. Consider the three phases of the buyer’s journey:

  • Discovery phase: What do prospects see when they conduct a Google search of your entity? What links appear in the results and what story is told about your products/ services and brand?
  • Consideration phase: How is your company represented when a prospect or client engages with your social media and other content? What platform links, articles, images and websites appear?
  • Conversion phase: How does your brand show up when a client transacts business on your website? What action do you want your client to take beyond making a one-time purchase?

Thanks for reading,

Kim

Image: © The Richard Avedon Foundation. Supermodel China Machado (born Noelie da Souza,1929-2016), photographed by Richard Avedon in New York, NY for the November 6, 1958 cover of Time Magazine’s 100 Women of the Year issue.

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Guerilla Marketing Playbook

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Have your marketing strategies and tactics become stale and predictable? Do you tell yourself not to rock the boat because what you’re doing seems to be OK, even though you get a nagging “been there, done that” feeling when you click and post marketing content? Listen to your inner voice! It’s telling you that outdated marketing tactics will not deliver the results your organization needs. While there’s no shame if the menu at your restaurant features a couple of grandma’s recipes from World War II because customers love them, the ways you communicate with those nostalgic customers must be in step with the here and now. You may have gotten comfortable with the marketing tactics you’ve been using for the past few years and your customers may be comfortable, too—and that’s exactly why it’s time to stir the pot and shake things up!

Even before the pandemic shutdown pulled the rug out from under us, companies large and small, local and global, B2B and B2C, have experienced intense competition, mixed with political, economic and social instability. Forbes Magazine recently introduced the acronym VUCA—Volatile, Uncertain, Complex, Ambiguous—to describe the current economic landscape. Freelancers and small business owners are especially vulnerable to unstable circumstances. Well-chosen marketing strategies, executed proactively, are integral to your company’s survival.

Guerilla marketing playbook

Like grandma’s century old recipes that are still beloved by many, another 20th century throwback that can be adapted to the 21st is Guerilla Marketing, a term coined by the business writer and advertising executive Jay Conrad Levinson in 1984. Guerilla Marketing borrows the mindset of guerrilla warfare, the Spanish term for a band of soldiers who wage war not as part of the regular troops but as an independent unit that makes surprise raids behind enemy lines and attacks larger, better-funded forces.

Guerilla marketing campaigns use innovative, unconventional promotional marketing tactics whose goal is to shock, surprise and ultimately delight the audience. When at their best, guerilla marketing campaigns are memorable and known to drive (good) publicity and brand awareness. Guerilla-style campaigns are often relatively low-cost and have been used successfully by Freelancers and neighborhood businesses, as well as multinational conglomerates. Below are suggestions for guerilla marketing tactics you may want to consider:

  • Grassroots Marketing A marketing approach that relies on modest resources. Companies that utilize grassroots marketing strategies typically rely on frugal tactics that depend on people’s time. Recruiting friends and family to hand out flyers that announce the opening of a new business in the neighborhood is a classic example of this type of guerilla marketing. The technique is marketing at its most simplistic.
  • Viral or Buzz Marketing A strategy based partly or entirely on word-of-mouth publicity. The word spreads by way of social media, as this guerilla tactic relies on one user sharing a company’s content with those in his/her social network. Instead of trying to generate excitement by itself, viral/ buzz guerrilla marketing relies on enthusiastic fans or customers to organically raise awareness of a product or service, entertainer or business.
  • Projection advertising This guerilla tactic refers to the big-screen projection of large, captivating advertising images onto the sides of buildings or other walls. This style of guerrilla marketing allows companies to personalize promotions, especially for events. Instead of presenting a more permanent form of advertising that requires capital investments or long-term agreements, projection advertising is highly visible, unconventional and unexpected and may be less costly than marketing techniques that would otherwise be used.
  • Ambush Marketing Large sporting events and concerts are favorite locations for unauthorized guerilla marketing “ambush” campaigns. Companies that use this strategy, also known as coat-tail marketing, and are sometimes assumed to be official event sponsors although they are not. Popular within event sponsorships, ambush marketing may be employed as a guerrilla marketing strategy by companies looking to save money as they capitalize on a well-attended event that is occurring.

Solutions that matter 

Regardless of how you shape your company’s marketing campaigns, it’s essential that you understand what customers are looking to achieve or resolve when they do business with you (or others like you). With the knowledge of what customers prioritize and value, you’ll know what creates demand—and that means half of your marketing job is done. You can then create a theme with talking points and images that communicate the solution your audience wants. If you can also place your marketing text and images in an unexpected location (maybe outdoors) that your audience frequents, and keep the costs down as you do, you will have realized the essence of guerilla marketing.

What’s in it for the customer?

Unexpected turns of phrase or doubles-entendres may stroke your sense of creativity, but remember that the purpose of marketing messages, whether you go guerilla or conventional, is to inform (and reassure and reinforce) your audience that your product or service will solve a problem and achieve the objective, whether you’re selling gardening gloves or cashmere sweaters. Your text must succinctly, clearly and perhaps also cleverly, answer the question that customers and prospects silently ask—“What’s in it for me if I buy this”?

Make sure they get the message.

It’s been said that one picture is worth 1,000 words and there’s no doubt that the image(s) used in your campaign can get attention—but don’t let images overwhelm the message you intend to communicate. All marketing thrives on creativity, but don’t allow the artwork to over-shadow the product. The marketer’s goal is to persuade the audience to feel that the product or service being showcased so interesting that s/he desires to buy it.

 Thanks for reading,

Kim

Image: The Richard Oscar Burgess House in Providence, RI is best known for its head-turning design created in 1984 by The Armory Revival Company. By leaving a section of the house only partially painted and attaching large simulations of Crayola crayons on the wall, the house is both a marvelous spoof of the obsession about paint color that not infrequently preoccupies new owners of Victorian-era homes and a celebration of mid-1980s urban revitalization.

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10 Under $35: Great Client Gifts 2023

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You can run, but you can’t hide! The December holidays are at your doorstep and asking you to respond accordingly. Yes, it is a chore, and you’ll spend some money, but look at the bright side—-the holidays are much more than a gift-giving obligation. Recognize that the December holidays are your best client outreach and relationship-building opportunity of the year. So if you neglected to include current or lapsed clients on the mailing list for your blog or website, or you hesitated because you worried about looking crass, and decided against including clients when you announced that you’d appear on a podcast or would teach a social media marketing class, your opportunity to rectify that oversight has arrived. December is your gateway to redemption, your big chance to show clients that you remember and value them.

The holiday gifts you send, and to a lesser extent the holiday cards you send, give you entree to reach out in January and diplomatically float the idea of receiving an assignment in the New Year. Reach out with a conversation-starting topic that might persuade your client to schedule a voice, video, or face2face meeting so that you can assess and suggest how your products or services can provide solutions that achieve the client’s objectives. After all, the reason that your client gifts and cards qualify as business expenses is because you’re spending money to support the goal of making more.

Below is my 2023 list of business-appropriate, cost-conscious holiday gifts and I hope you like what you see. Every vendor is different, but you can expect your gifts to arrive on time if you ship before December 10 (that date also applies to the cards you’ll send, whether or not a gift will also be sent). Shop on Black Friday (November 24) and Small Business Saturday (November 25) to catch the sales and get more for your money. Be advised that Christmas falls on the fourth Monday and some offices may be closed on Friday December 22, maybe until Tuesday January 2.

1. Dossier Fragrances

Dossier, the luxury fragrance maker, recently launched its third line of scents: the Wellness Collection. The new line includes sage and black tea, rose and basil, ginger and grapefruit scents that serve as a “sensory gateway, inviting you to embark on a fragrant journey toward balance, serenity, and rejuvenation,” says CEO Sergio Tache.

The Wellness Collection will refresh, re-energize, and rejuvenate, giving you aromatic therapy through fragrance for a heightened scent-sory experience. The Speakeasy Collection is crafted with celebration in mind and captures all the bubbly, warm, or even smoky sensations that come with every sip– or in this case, spritz!

Dossier Originals
$29 each

2. The Weekender Dopp Kit

A rugged, classic pouch to keep all your toiletries in order. Outside, it’s built from heavyweight cotton canvas that will take anything your trip can dish out. Inside the sturdy metal zipper, there’s an additional internal zipper pocket and elastic loops to secure your stuff.

https://www.bespokepost.com/store/line-of-trade-weekender-dopp-kit?clickId=0oizTcy5fxyPUBdy6FSGNz3uUkFVy91Px0Jk2U0&a=m_10078&utm_medium=Affiliate&utm_source=IR&utm_campaign=0oizTcy5fxyPUBdy6FSGNz3uUkFVy91Px0Jk2U0&utm_content=Skimbit%20Ltd.&nb_adid=70438&nb_cid=1804&nb_pid=10078&nb_aname=Online%20Tracking%20Link&nb_atype=ONLINE_TRACKING_LINK&nb_asize=&nb_product_sku=&nb_partner_name=Skimbit%20Ltd.&nb_mtype=mediapartner&nb_partner_shared_id=thespruce.com&nb_platform=impact
$35 each

3. Jiminy’s Doggie Dental Chews

Dog owners adore gifts that have their furry friend in mind! Here is a multi-purpose, cinnamon-flavored chew designed to clean teeth, freshen dog breath and reduce oral inflammation while the chew’s flexible, nubby texture cleans teeth and gums. Cruelty-free superfood ingredients make Jiminy’s Dental Chews the sustainable choice for the health of your dog and our planet. The chews come in four sizes. Jiminy’s dog treats and dog food are also available.

https://www.chewy.com/jiminys-grain-free-cricket-cookie/dp/205078

$9.95 each 5 oz. bag

4. The Pasta Queen Cookbook


TikTok star and social media sensation Nadia Caterina Munno, a.k.a. The Pasta Queen, is opening the recipe box from her online trattoria to share the dishes that have made her pasta royalty. In this delectable antipasto platter of over 100 recipes, cooking techniques, and the tales behind Italy’s most famous dishes (some true, some not-so-true), Nadia guides you through the process of creating the perfect pasta, from Pasta Al Limone to Fettucine Carbonara. The book was a New York Times bestseller. See reader reviews here https://www.goodreads.com/book/show/60321510-the-pasta-queen

https://www.barnesandnoble.com/w/the-pasta-queen-nadia-caterina-munno/1140976219?ean=9781982195151

$23.99 hard cover

5. Lapgear Tablet Pillow

An unique, triangular-shaped bolster pillow that has a reinforced front pocket that holds your tablet or phone at optimal screen viewing angles, allowing for comfortable and efficient tablet use. The microbead filled cushion allows this tablet pillow to conform comfortably to your lap or any surface while using your tablet. Tuck your phone, device charger, ear buds, or other accessories into the convenient side pocket to keep them handy. Use the snap-on handle to attach the lightweight tablet pillow to your suitcase or backpack when you are on the go. This item is the perfect stand to prop your tablet up and go hands free while streaming your favorite show, shopping online, FaceTime conversations, or playing a game.

https://www.walmart.com/ip/LapGear-Microbead-Tablet-Pillow-with-Phone-Pocket-Gray-Herringbone/268528336

$19.69 each

6. Born to Bloom

Collaborate with Mother Nature to give this combination birthday and December holiday gift that grows and changes every day. Seeds, a glass bottle to grow them in, soil-less growing medium, instructions, and info about what your flower symbolizes are all included. Once the garden has finished blooming, wash the grow bottle and use as a vase. Cork lid doubles as a coaster for the bottle. A lovely gift for gardeners, sentimental types and those who don’t want any “stuff.” (Sorry that I’m over budget here!)

https://www.uncommongoods.com/product/birth-month-flower-grow-kit?clickid=3tTwSAy5JxyPUBdy6FSGNz3uUkFVy6xex0Jk2U0&irgwc=1&utm_source=Skimbit%20Ltd.&utm_medium=affiliates&utm_campaign=8444&utm_term=Online%20Tracking%20Link&trafficSource=Impact&sharedid=thespruce.com

$36.00 each

7. Apple Air Tag

The Apple Air Tag is the game-changing remedy for those who habitually misplace keys or wallet and maybe also could use a better way to keep track of a pet. Or maybe they just want to know exactly where their bags are while traveling? The one-tap setup makes it a breeze to connect with an iPhone or iPad all in the Find My app. Selected iPhone models have Precision Finding that will lead users right to your nearby AirTag. If it’s further away, hundreds of millions of Apple devices in the Find My network can help track it down. AirTag is compatible with any iPhone, iPad, or iPod Touch device running iOS/iPad OS 14.5 or later. All activity will be anonymous and encrypted for privacy.

https://www.apple.com/shop/buy-airtag/airtag?afid=p239%7C1442537&cid=aos-us-aff-ir-1442537

$29 each

8. Queen Bean Coffee Sampler

The coffee sampler is a great way to explore these fabulous coffees, available in six (6) contain quarter-pound packs. While you cannot chose specific coffees, Queen Bean invites you to provide a basic guideline, e.g., a random sample, sustainable single origins, dark roasts, flavors, decafs, etc. If you aren’t sure what you like, we suggest you order the random pick or send an email to help you figure out your coffee type. When ordering, please use the comment box to indicate if you would like ground or whole bean coffee.

https://www.etsy.com/listing/489146056/coffee-sampler?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=coffee+samplers+gift&ref=sc_gallery-1-1&sts=1&plkey=da64bda243454aefb4e84ebf5bb733cb02c8266e%3A489146056
$29.90 for six (6) + $8.50 shipping

9. Cantaloupe & Prawns

Celebrate the colors and ambience of the Mediterranean this holiday when you choose this lovely (unframed) art print created by Maggie Cowles, a freelance artist and illustrator whose has been shown in galleries in Tokyo, London, Paris and Los Angeles.

https://society6.com/product/cantaloupe-prawns_print?cjdata=MXxOfDB8WXww&sku=s6-21353150p4a1v45&utm_source=cj&utm_medium=affiliate&utm_campaign=2114&utm_content=100017238&utm_id=5370367&utm_term=14068151&cjevent=70c9033a84b911ee829514e90a82b821
$27.20 (regularly $34.00)

10. Charity Choice Holiday Gift Certificate

In this holiday season, allow your client gift to demonstrate your company’s values. Charity Choice, an official donation site of the American Red Cross, will enable your clients to support a cause that resonates with them. As your client gives back, you present a positive image of social responsibility for you and your company. You choose the giving level and your recipient chooses the cause to support. You decide the format that your client receives—digital card via email or physical gift card that is mailed either to you or to your client on your behalf.

https://www.charitygiftcertificates.org/#GiveGiftCards

$25.00 each (also $10, $50 & $100)

Happy Thanksgiving and thanks for reading,

Kim

Image: ©Library of Congress / Science Source. Anna Eleanor Roosevelt (1884 – 1962) served as First Lady of the U.S. March 1933 to April 1945. She was the wife of Franklin Delano Roosevelt (1882-1945), who served as PTOS March 4, 1933 – April 12, 1945.

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Saving for Retirement Gets Easier

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Many Americans are unable to adequately save for retirement–or for any other reasons, including emergencies and post-high school education, unfortunately. Rising prices and decades of stagnant wage growth have contributed to both the inability to cover more than basic living expenses and increasing debt. It’s a recipe that undermines saving for the future.

This is not to say that Americans don’t understand the need to save for retirement. Just about everyone knows that once you’ve retired, Social Security cannot replace your entire annual income for the rest of your life. This sometimes results in a cash-flow gap for retirees that until the early 1980s was usually remedied by an employer sponsored defined annual pension benefit but thereafter, most employers chose to address the shortfall with a 401(k) plan. The difference is huge.

A defined pension pays recipients a specified monthly benefit at retirement. The employer funds the plan by contributing a regular amount, usually a percentage of the employee’s pay, into a tax-deferred account. Depending on the plan, employees may also make contributions. Typically, pensions are calculated through a formula that considers the employee’s salary and length of service.

The 401(k) plan, and also the 403(b) plan, by contrast, are defined contribution plans, as are employee stock ownership and profit-sharing plans. A defined contribution plan does not promise a specific amount of benefits at retirement. In this scenario the employee, the employer, or both contribute to the employee’s retirement account, often at a set rate, such as 5 % of annual salary each year. The employer usually works with a major financial services company that invests the retirement funds on behalf of company employees. Upon retirement, the employee receives the balance in the account, which is based on contributions plus or minus investment gains or losses. The value of the account will fluctuate due to changes in the value of the investments made.

The defined pension plan has nearly disappeared from the American landscape. For the most part, only city, state and federal government agencies offer a traditional pension plan to employees. Although we’ve had about 40 years to adjust to the next wave of retirement funding, the update has been a challenge. According to a survey published last October by the financial services company Bankrate, 56% of working Americans reported that they’re behind on their retirement savings goal. Furthermore, the general savings rate for Americans has fallen to an all-time low, according to the Bureau of Economic Analysis. The average American had saved 2.3 % of disposable income as of October 2022, down from a 7.3 % savings rate reported in 2021—but that figure was impacted by the pandemic, when people couldn’t get out and spend. Those are very disquieting statistics but in December 2022, Congress approved legislation that should provide a ray of sunshine to brighten the day.

The Setting Every Community Up for Retirement Enhancement (Secure) Act 2.0 Act is intended to change at least two depressing and embarrassing statistics: first, that nearly 75 % of small businesses do not offer retirement plans to their employees and second, to grow the percentage of Americans who not only contribute to a retirement plan but also encourage and enable them to start saving for retirement earlier in life. The idea is to allow retirement savings to grow over a longer period of time and result in a more financially secure retirement for you.

401(k) automatic enrollments

The enhanced rewards that come from saving for retirement will take time to kick in. Beginning in 2025, small businesses will be required to automatically enroll employees in 401(k) or 403(b) retirement plans, with a contribution rate between 3 % and 10 %. The employee contribution limit for 401(k) plans will be raised from $19,500/year to $26,000/year to encourage and reward more robust retirement savings, per Secure 2.0. Also, employers must offer retirement plan benefits to part-time employees who’ve worked for them for at least two years. Businesses that are less than three years old, or those that employ 10 or fewer employees, are exempt. Moreover, employers must explain to employees that they may opt-out of the auto-enrollment feature (maybe the spouse has a better retirement plan).

Another new feature of Secure 2.0 is the Starter 401(k), designed for small companies that currently do not offer a retirement plan to employees. The Starter 401(k) is not subject to year-end nondiscrimination testing (an additional compliance measure that examines if a business is fairly distributing its plan) and caps annual contributions at the same amount as the Individual Retirement Account (IRA) limit. The maximum contribution for an IRA account was $6,000 in 2022 and $7,000 for those older than 50.

Tax credits sweetener

Many options in the retirement benefits market haven’t been accessible to small businesses because private sector plans were designed to serve companies with 100 + employees but finally, SMBs will receive additional relief from costs associated with offering retirement plans through Secure 2.0. Previously, employers with fewer than 100 employees were eligible for a three-year, start-up tax credit that covered up to 50% of administrative costs, with an annual limit of $5,000. The new law has increased this credit to 100% of qualified start-up costs for new plans sponsored by employers with up to 50 employees. While costs to start retirement plans vary on the basis of a business’s size and the type of plan, the enhanced tax credits should cover a majority of an employer’s out-of-pocket costs for the first three years.

In addition to addressing the larger national economic issue of retirement savings, Secure 2.0 confers yet another advantage to SMBs—an opportunity for to improve their benefits package, which can attract talent. Benefits can be a competitive advantage when it comes to hiring, whether you operate a neighborhood breakfast and lunch place or a medical equipment company.

Retirement Plans for Freelancers

You didn’t think I’d leave you out of the mix, did you? Here’s an overview of tax-deferred and after-tax retirement savings plans that work well for Freelance professionals. Most feature similar options to save for retirement as employees participating in company plans.

Simplified Employee Pension (SEP)

  • Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $66,000 for 2023 ($61,000 was the 2022 limit).
  • Open a SEP-IRA through a bank or other financial institution.
  • Set up the SEP plan for a year as late as the due date (including extensions) of your income tax return for that year.

401(k) plan

  • Make annual salary deferrals up to $22,500 in 2023 ($20,500 was the 2022 limit), plus an additional $7,500 in 2023 ($6,500 in 2022) if you’re 50 years or older either on a pre-tax basis or as designated Roth contributions.
  • Contribute up to an additional 25% of your net earnings from self-employment for total contributions of $66,000 for 2023 ($61,000 was the 2022 limit), including salary deferrals.
  • Customize your retirement plan to allow access to your account balance through loans and hardship distributions if you must.

A one-participant 401(k) plan is sometimes referred to as a solo-401(k) or individual 401(k). It is generally the same as other 401(k) plans, but because there are no employees other than your spouse (if s/he works for the business), the plan is exempt from discrimination testing.

If you are a Schedule C a sole proprietor and have a SIMPLE IRA plan, you are treated as both an employer and an employee when calculating and reporting your own retirement plan contributions and limits. Report both your salary reduction contributions and employer contributions (non-elective or matching) for yourself on Part II – line 15 of Form 1040 Schedule 1. Note that this is different from reporting employer contributions (non-elective or matching) for your employees, which you record as a business expense on Schedule C.

Maximum annual contribution SIMPLE IRA

Re: your salary reduction contributions, you may defer up to $15,500 in 2023 ($14,000 was the 2022 limit) however, you may not exceed your net earnings from self-employment from the business sponsoring the SIMPLE IRA plan. If you are age 50 years or older , you can make a catch-up contribution of up to $3,500 in 2023 ($3,000 was the 2022 limit).

When you are an employer

Employer contributions for yourself must be the same type and rate as the contributions you make for your employees. You must either:

  • match your salary reduction contributions dollar-for-dollar up to 3% of your net earnings from self-employment; or
  • make a non-elective contribution of 2% of your net earnings from self-employment that do not exceed $330,000 in 2023; ($305,000 was the 2022 limit).

Thanks for reading,

Kim

Image: Enjoying retirement at Seabrook Island, near Charleston, SC

 

Business Strategy Leave a comment

Persuade Investors to Show You the $$

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At some point during the life cycle of a business venture, most entrepreneurs will seek an infusion of investment capital. The venture may be at start-up stage or ready to scale and money is needed to carry out the plan. The prospect of obtaining additional funding for your venture is intimidating, but it’s part of an entrepreneur’s experience. Know there is way forward and with some planning, a happy outcome can be yours.

Once you’ve decided the growth or expansion strategy you intend to follow, contact your banker, your accountant and a business attorney and get their input on this very impactful decision. Your accountant is intimately familiar with the business finances and can weigh in on the expected revenue potential of the way you plan to grow or expand. Your banker has a good idea of how much credit you’re qualified to receive. Also, s/he has listened to dozens (an possibly hundreds) of ideas that business customers would like to fund and can recognize which appear to be promising and which seem like pie-in-the-sky. The business attorney can advise you on the legal ramifications of your proposed funding strategy, especially if you decide to fund by forming a partnership of some sort.

Whatever option emerges as your preferred course of action, before you make the appeal for money, work closely with your accountant and bookkeeper to confirm that all financial statements are in order and paint a good picture of you and the enterprise. Investors want to see you and your company as a good risk with sufficient money-making potential. Along with your Income and Cash-flow Statements and the Balance Sheet, include a Break-Even Analysis so that investors will know when the company will be positioned to achieve a desirable level of profitability.

Regarding the type of funding your plan and your financial history recommend—bank loan via the Small Business Association, soliciting investors, taking on a money business partner, or seeking venture capital for a start-up—entrepreneurs should do their research to find out what companies the partners, investors, or VC firms currently or previously have invested in. If business has been done with a competitor, that’s a red flag. Ideally, those who invest in your business will be able to create good relationships for you and can recommend good prospects who will become customers. Below are four factors that VC investors, accountants and business bankers feel are what investors want to see from those who need funding.

Include the right numbers

Investors are interested in the financial track record of ventures that are operating and they are especially interested in the financial projections of start-ups (where all the financials are projections) and currently operating businesses that seek funding. They closely scrutinize the Income Statement because it contains much relevant information: gross sales revenue, cost of goods sold and expenses fixed and variable are recorded there, as is net profit. Investors want Income Statements, actual and projected, to demonstrate that a currently operating venture has a history of consistently generating solid revenues and profits and that the plans of either start-ups or existing companies present a strong financial case for success.

Investors will next parse the Cash-flow Statement to get an overview of the flow of money in and out of the business—gross sales revenue, accounts receivable, accounts payable and the like—to see what the projected cash-flow will be once the growth or expansion strategy plan has been implemented. Because start-ups are not profitable at first, it’s important for investors to analyze their cash-flow forecast to understand whether there will be sufficient funding to continue operating until the cash-flow and net profit goals are achieved. Including quarterly, and if necessary, monthly projections for various scenarios, such as a slower pace of revenues or other marketplace difficulties, is advisable.

Investors want to be confident that their investment capital will result in a certain level of revenue and profit and when that can be expected to occur and for that reason, your financial documents must include a Break-even Analysis, a financial calculation used to determine a company’s break-even point and reveal when investment is returned dollar for dollar. One the venture reaches the break-even point, it is theoretically positioned to become profitable.

While business owners typically base their financials on what their research shows as the most plausible scenario for cash-flow, investors also want to know what you’ll do in a worst case scenario. For example, what would happen if your revenue gets delayed by six months or a year? When would you run out of cash? Investors want to see contingency plans, evidence of risk management.

Never inflate revenue projections

Different types of industries have unique profit margin ranges, so as you compile your financials, research the economic parameters of your industry sector so that you’ll create accurate and reasonable financial projections. For example, in-person yoga studios may generate profit margins of 15% – 25 %. Conversely, restaurants typically have net income profit margins between 2% and 8%.

If your start-up must fund research and development and other expenses, for example, significant gross sales revenue, supported by economies of scale that will control cost of goods sold, will be necessary to both generate cash-flow to allow the business to continue to operate as well as generate a net profit. If a founder is projecting profit that doesn’t mirror the reality of their industry, will indicate they haven’t done their homework or don’t understand their business, which can make an investor wonder whether they can trust any of the company’s projections. Either way, it will do your credibility no favors.

The story of how your business plan will work

Tell potential investors, including your banker if you’ll apply for a loan, a credible and engaging story of how and why your business strategy has great potential, will generate a healthy return on investment and deserves funding. Consider structuring your pitch as a journey, a concept that will likely resonate with your audiences. Make the story of your journey clear and uncomplicated. Be a teacher with a relatable (and never a know-it-all) communication style and avoid coming across as a sales person, which is bound to be a turn-off. Be sure to include in your story:

  • That your plan has a clear destination, you’ve defined success
  • That your plan has the first steps of your growth strategy mapped out
  • You’ve considered the obstacles you might face and developed contingencies
  • You’ve built in milestones that will measure progress

Build flexibility into your strategy

Your business will operate in real life, in real time, and anything that can happen, will. The possibilities for unexpected adverse events are numerous, up to and including a spell of bad weather. It is therefore essential to discuss a contingency plan in your financial projections and also in the marketing plan. As noted above, if the unthinkable happens, what adaptations will you make in terms of say, product acquisition or staffing to cut costs? Alternatively, what will you do if other factors contribute to a slowdown in sales revenue? Might a pivot to a related product or service be possible and what might that look like? In sum, when making an appeal for investment capital in whatever form, potential investors will be reassured when you show that you’ve prepared for a rainy day as you work to satisfy customers and ensure the company’s survival.

Thanks for reading,

Kim

Image: © Photograph: Yoshikazu Tsuno/AFP/Getty Images 2011

Business Strategy, Survival Strategies , , , , , Leave a comment

Smart Choices and Good Decisions

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When you face a big decision whose outcome may significantly impact your business or life, what steps do you take, what routine do you follow, to help yourself do the right thing? Big decisions, especially, involve consequences and their after-effect can reverberate over the long-term. The decisions you make, delay, or avoid shape the path of your personal and/or professional life and for that reason, the ability to make effective decisions is a survival skill.

Business owners and leaders are called upon to make many decisions; most are routine, and some are high stakes, positioned to have significant impact on the direction and/or fate of the venture. It is therefore worthwhile to do whatever possible to develop skills and practices that support your decision-making proficiency. Below are practices that, unlike the whims of fortune, are within your control and can guide you along the path to decision-making success.

1. See the big picture

As you get ready to make the decision, be clear about what you expect the preferred outcome will mean for you and/or the business. Good decisions require awareness; the decision-making process fares best when you are attentive to the context in which it will be made, meaning key internal and external factors that can assist or impede your ability to choose the right path. Influencing factors are likely to include the competitive and economic climate in which your venture operates and in larger organizations, the level of support that stakeholders have for the initiative you are trying to advance.

2. Review desired outcomes

“Begin with the end in mind,” advises Stephen Covey, author of the phenomenal bestselling book The 7 Habits of Highly Effective People (1989). Your decision-making process has a better chance of seeing a happy ending when the decision is motivated by a realistic purpose that you can clearly articulate and defend. It is essential that you understand what you want to achieve and why. It is also useful to decide the criteria you’ll use to define success. Before you commit to a decision, create a mental picture of what your company (or life) will look like once that proposed choice is in place—in the near term and 12 months later.

3. Consider different perspectives

Escape the trap of your inherent biases and invite different opinions to the decision-making. Start with the obvious—stakeholders and end-users who will live with the outcomes, along with those who will implement the decision. If you have a team, include its members in the process, for they surely bring to the table expertise and experiences that will enrich your understanding of the big picture, as well as factors that could influence its outcome. The unique viewpoints and wisdom of your team could possibly show you that don’t know what you don’t know!

4. Leverage relevant data and technology

In today’s digital age, there is every reason to turn to technology-supplied data to provide trustworthy insights that are grounded in objective information to guide your business decisions. Data-driven decisions are usually the most successful. You may have a history of making good decisions based on what your gut tells you, but you’ll be better served to allow (relevant) numbers to validate the power of your intuition.

There are numerous analytic values readily available to provide snapshots of company performance that decision-makers need to see. Your decision may benefit from a review and analysis of the number of qualified leads per month, industry benchmarks, annual sales of your products and services and/or the average dollar amount of new contracts signed per quarter.

5. Avoid analysis paralysis

While good data is essential, as is objective thinking and keeping the purpose of the decision in mind, it’s also important to realize when you have sufficient facts and figures to commit to a choice. It often makes sense to set a reasonable time frame for gathering information, and once you have enough in hand to make an informed choice, move forward.

Trust your judgment and remember that in most cases, all the information you’d like to have will not be available; nearly every decision is haunted by unknown factors. Boost your confidence by creating conditions that will promote effective decision-making when you align your decision with the vision, mission, guiding principles (values) and brand of your organization.

6. Overcome fear of failure

Risk is a factor in every decision because results are not always predictable. Along with good information, luck, timing and intuition are often credited with a decision’s success or failure. All leaders understand that unfortunately, not every decision will lead to a favorable outcome.

Instead of fearing failure, embrace it as a valuable learning experience when it occurs. Do a postmortem and analyze what went wrong; identify the root causes and determine how you can avoid similar pitfalls in the future. When the experience is applied correctly, failure strengthens resourcefulness and resilience and over time will eventually enhance your decision-making skills. A decision gone wrong is embarrassing and disappointing but push yourself to make lemonade from the lemons. You might find a way to fail-up!

7. Practice decision-making consistency

Consistency in decision-making is key to building trust and credibility among your team. If your choices waver based on mood or circumstance, it can create confusion and erode confidence. But you may instead find it helpful to revisit the same, or similar, criteria that were used for a decision whose outcome was especially positive.

If the approach you took, factors you considered and certain friends and mentors you consulted led to a successful outcome previously, those factors, adjusted to fit the question at hand, might be successfully applied to future decisions. Why not experiment? When you’re next faced with a big decision, apply some or all of the criteria you used to approach the question, choose and study the data and seek input from friends or family who have a history of giving you wise advice?

You may discover that it’s useful to evaluate, say, three to five qualifying questions first, then another three to five questions that are customized for your decision? A decision-making protocol that considers the same factors each time will bring objectivity, standardization and reliability to your priorities and judgment and help you avoid getting swept up in the emotional reactions of either reckless enthusiasm or panic.

8. Hone intuition through experience

Decision-making is often considered both an art and a science. It’s a competency that goes beyond algorithms and spreadsheets — it’s about accepting risk and seeking wisdom from data, lived experience, good advice and intuition. Furthermore, learning to recognize when it might be the most advantageous time to make a certain decision is another plus—- when you have the luxury of choosing the time to act, that is.

By adopting a big-picture perspective, leveraging diverse viewpoints and integrating data-driven insights, you will improve your decision-making skills. As you gain experience, your subconscious mind will develop a sense of pattern recognition, meaning you’ll remember what works and so you’ll do it again. Use this intuitive sense to guide you when data is unavailable or inconclusive.

Thanks for reading,

Kim

Image: Chess Grandmaster Pontus Carlsson (Colombia born, represents Sweden)) vs. International Master Espen Lie of Norway (R) in Malaga Spain, 2008

Professional Development , , Leave a comment

Emotional Intelligence: The Foundation of Leadership Ability

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Emotional Intelligence is the capacity to recognize and respect not only how you feel, but also how those with whom you interact feel. Emotional Intelligence also helps you to manage your emotions effectively, both in your inner life and in your relationships. Alternately known as EQ and often portrayed as a qualitative, subjective yin (female) counterpart to the data-driven, measurable and objective yang (masculine) IQ, EI entails more than displaying empathy and being kind, or “sensitive.”

Ongoing research has presented credible evidence that supports EI as a different, but nevertheless valid and beneficial, form of human intelligence. Psychologists, organizational development specialists and leadership development coaches recognize EI as a core life skill that promotes one’s ability to deliver excellent performances, particularly in the domain of leadership. There is no absolutist blueprint, or model, that codifies EI, but there are variations on a standard theme that have been developed primarily by psychologists and organizational behavior specialists. I recently discovered the work of Emotional Intelligence researchers Daniel Goleman and Richard Boyatzis.

Goleman has written extensively on the topic of EI. He is co-director of the Consortium for Research on Emotional Intelligence in Organizations at Rutgers University in Newark, NJ and he is the author of Building Blocks of Emotional Intelligence (2017) a 12-primer set on each of the EI competencies that he co-discovered. He also offers training on those competencies through an online learning platform. Boyatzis is a professor in the departments of Organizational Behavior, Psychology and Cognitive Science at the Weatherhead School of Management at Case Western Reserve University in Cleveland, OH and he’s been recognized as a Distinguished University Professor there. He is a co-founder of the Coaching Research Lab and co-author of Helping People Change (2019). According to Goleman and Boyatzis those who aspire to become exceptional leaders will need to develop a balance of strengths across the suite of EI competencies. When that is achieved, outstanding business results will follow.

Goleman and Boyatzis see as EI consisting of four domains—Self-Awareness, Self-Management, Social Awareness and Relationship Management—and connected to each domain are 12 EI competencies. When you’ve mastered the domains and the competencies associated with each category, you will possess capabilities that allow you to be an adept at team player or a practitioner of inspirational leadership, as the situation requires. Below is a capsule view of the domains and the related competencies.

Self-Awareness

This domain refers to the ability to read and understand your emotions as well as recognize their impact on others. In short, self-awareness is a basic understanding of how we feel and why we feel that way. The more we are aware of our feelings, the easier it becomes to manage our feelings and control how we might respond to others.

Those who have nurtured their EI capabilities achieve objectivity through the self-awareness that this form of intelligence develops. Leaders who have developed a high level of EI promote productive and motivated workplaces that give all workers equal opportunities to shine.

  • Emotional self-awareness: I know what I am doing and why
  • Accurate self-assessment: I am cognizant of my beliefs and mental models
  • Self-confidence: I am aware of my abilities, including strengths and weaknesses. I trust my judgment and have a sense of control in my life. I set realistic expectations and goals, communicate assertively and can handle criticism.

Self-management

Also known as self-regulation, this domain can be defined as the ability to manage one’s actions, thoughts and feelings in flexible way, in order to produce the desired results. Optimal self-management contributes to a sense of well-being, a sense of self-efficacy or confidence and a sense of connection to others. You are able to control impulsive feelings and behaviors, express your emotions in healthy ways, take initiative, follow through on commitments and adapt to changing circumstances.

  • Emotional Self-Control: You are able to keep potentially disruptive emotions and impulses in check and maintain your effectiveness under stressful or hostile conditions.
  • Achievement Orientation: You intend to meet or exceed a standard of excellence. You seek ways to do things better and improve outcome. You reasonably challenging goals and take calculated risks.
  • Positive Outlook: You are able to see the positive qualities and characteristics in people, situations, and events. You persist in pursuing goals, despite obstacles and setbacks.
  • Adaptability: You have the flexibility to handle change and juggle multiple demands, as you adapt your ideas or approaches to new and unexpected circumstances.

Social Awareness

Social Awareness is the ability to accurately notice the emotions of others and “read” situations appropriately. It is about sensing what other people are thinking and feeling, to be able to take their perspective using your capacity for empathy. Those adept in the qualities of this domain are able to read another person’s face, voice, body language and other verbal or nonverbal cues that communicate emotion and help direct us as to how we should speak and otherwise interact with that individual.

  • Empathy: The ability to sense others’ feelings and perspectives, take an active interest in their concerns and recognize cues about what others may feel and think. Goleman further describes empathy as the cognitive and emotional processes that bind people together in various kinds of relationships that permit sharing experiences as well as understanding of others.
  • Organizational Awareness: The ability to read a group’s emotional currents and power relationships, identifying influencers, networks, and organizational dynamics.

Relationship Management

This domain pulls together and integrates the other three domains and creates the final product, relationship management. Relationship management can be used to influence those around us and guide or encourage them to make good decisions. You can sense other’s reactions to situations and then fine-tune a response to move the interaction in a positive direction.

Relationship management proficiency also addresses teamwork and other collaborations.
You’ve learned to use the skills acquired in the other domains to steer the group toward
the goal. Furthermore, proficiency in relationship management promotes the ability to effectively manage conflict. Those who become particularly adept in this area can see that conflict is forming and take steps to move others away from this and toward more positive interactions. Effective Listening skills and empathy are essential to deal with these difficult conversations.

  • Influence: The ability to have a positive impact on others, to persuade and convince others in order to gain their support.
  • Coach and Mentor: The ability to foster the long-term learning or development of others by giving feedback, guidance, and support.
  • Conflict Management: The ability to help others through emotional or tense situations, tactfully bringing disagreements into the open and finding solutions all can endorse.
  • Inspirational Leadership: The ability to inspire and guide individuals and groups towards a meaningful vision of excellence, and to bring out the best in others.
  • Teamwork: The ability to work with others towards a shared goal; participating actively, sharing responsibility and rewards, and contributing to the capability of the team.

You can evaluate and improve your EI skills. Goleman and Boyatzkis recommend a 360-degree assessment, to receive systematic, objective observations of your behavior by people who work with you. Incidentally, EI has been found to not correlate well with IQ or personality traits, but the two values are the best predictors of a leader’s effectiveness, actual business performance, engagement, professional and personal satisfaction. A 360-degree assessment tool that uses ratings generated by you and those who know you well can reveal your EI current strengths and suggest where your EI needs improvement. To best improve your weak spots, find a leadership development expert to coach you.

Thanks for reading,

Kim

Image: Philadelphia Flyers coach John Tortorella

Administrative , , Leave a comment

Should You Outsource? Think It Through.

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I’ll wager that the biggest obstacle Freelancers and small business owners face is limited time. There are so many responsibilities you must manage in order to keep the show on the road. Now look at the bright side—if you’ve got lots to do, it means that your business is growing and has the potential to grow even more. Your stumbling block is, most likely, that you have a small team (maybe just yourself) and you struggle to get your arms around a list of important decisions to make and other responsibilities that demand your attention. You may also have deadlines looming`.

You always assumed, but the point has now been emphatically made, that productivity is a key ingredient in the recipe for success. It’s imperative that you have the focus and ingenuity to develop goals and objectives that will promote your mission and then create and execute strategies and action plans that bring your plans to life. If you’re overwhelmed and stressed by an unmanageable to-do list, you’ll be unable to perform at peak efficiency. Circumstances will force you to make a change because at some point, every business owner must address the challenge of how to get the work done— on time, on budget and in ways that deliver a rewarding customer experience.

Spoiler alert—all potential solutions, including the choice of keeping the status quo (and eroding both the success you’ve created and your health), require that you spend money. The good new is, if you’ve objectively assessed your situation and determined how to efficiently handle your responsibilities, you will be positioned to increase productivity and business revenue.

Weighing your options

The process begins by confirming the tasks that must get done, acknowledging if anyone other than yourself can be reasonably expected to successfully perform certain tasks and documenting the number of days in a typical week you face a backlog of work. If you frequently work more than 50 hours per week, that indicates you’d benefit from bringing in help. If you frequently work more than 60 hours per week, that indicates you’d benefit from a full-time or part-time employee (W-2 tax form). If your need of assistance is more intermittent, for example, during the last week of the month or one or two afternoons a week, outsourcing (1099NEC tax form) is your best solution.

Make an honest assessment of your time, abilities, preferences and money. Furthermore, once you’ve decided which tasks are unsuitable for you, own the tasks that can be most effectively done by you. For example, it will likely be for the best that anytime the face of your brand must be represented, you, business owner, should be present. However, a number of office-based functions can be effectively handled by a savvy outsourced professional. An outsourced marketing expert will be able to suggest goals, objectives and strategies to jump-start growth in ways that the business owner may not immediately envision. A bookkeeper who has experience working with small or mid-size companies will not only bring the entity’s accounts up to a high standard of detail and accuracy but can also advise on issues such as cash-flow problems.

Accept that it may be too expensive for you to perform certain tasks if it diminishes your pursuit of billable hours. In general, if a certain task takes you or your team too long to do, it probably makes sense to outsource the function, especially if it’s something that must be done on a regular basis. Furthermore, if a task is highly specialized, it may make sense to outsource it to someone who spends their time immersed in that particular function and has a real expertise.

Consider outsourcing functions when:

  • You don’t have the ability to adequately perform the task
  • You have the ability to do the work, but dislike doing it
  • You have the ability to do the task, but the time needed to get it done is unacceptable (maybe because it’s specialized and you and your team lack the expertise)
  • You’ve realized how much billable time you’re losing by performing tasks that you could pay someone else to do (for less than your own billable rate).

Enable outsourcing success

Establish goals and define expectations for this new role in your organization, so that you can create a good experience for yourself, your team and the specialist(s) you bring in to provide outsourced services. It will be very useful to include in your productivity improvement journey an outsourced Human Relations professional who specializes in job analysis. This individual will discuss and confirm your recommendations of tasks that might be successfully outsourced and responsibilities that will be best handled by you, or current staff. Your outsourced HR adviser can also develop job specs, review and discuss your performance objectives and suggest the compensation you should offer to whom you’d like to hire.

Benefits of outsourced talent:

  • Cost: When you outsource certain tasks or services, you don’t have to pay the same wages as you would if you hired an in-house employee. Hiring outsourced talent is a way to manage fixed operating expenses as you nurture business growth. Furthermore, outsourced talent does not come with costs associated with in-house employees, such as taxes, insurance, holiday and vacation pay and other workplace expenses.
  • Efficiency: By outsourcing, you can free-up yourself and your team to focus on more important aspects of your business. This allows you to be more productive and get more done in less time.
  • Talent: Outsourcing is an attractive option when you need specialized skills or expertise only on an intermittent or short-term basis. Outsourcing gives you on-demand access to talent that would be impractical to permanently hire.
  • Scalability: If you have access to a larger pool of talent and resources, your business can scale up quickly without incurring the expenses associated with hiring W-2 employees or configuring additional office space, or even additional equipment rental fees. Chances are, your outsourced experts work remotely.

How to choose the right provider

When looking for the right expert to handle those functions you’ve decided to outsource, consider the provider’s specific industry experience. Choose providers who have excellent references and communicate well. When outsourcing critical functions or handling sensitive information, data security and confidentiality are of paramount importance. Assess the outsourcing partner’s security protocols, compliance with industry standards and measures to protect intellectual property. Evaluate their data protection policies, employee training, and physical and digital security measures to ensure the safety and integrity of your confidential information. Cultural fit and values alignment between your organization and the outsourced specialist are often overlooked but can significantly impact the success of the working relationship. Consider factors such as work ethics, corporate culture and shared values to ensure a smooth integration and collaboration.

Frequently outsourced functions:

  • Accounting and bookkeeping: Outsourcing accounting and bookkeeping services can not only save time, but also ensure that business cash is well-managed. You will be grateful when, for example, cash-flow is efficiently managed and you can make better business decisions. Moreover, you’ll be relieved to know that the business complies with tax regulations.
  • Human resources: Outsourced HR services can provide cost-effective solutions should you need to hire additional employees and decide whether the new hires should be brought in as employees or outsourced specialists. Your HR specialist can also create the job specs and refine your organization’s new customer or new hire on-boarding process, to ensure that all paperwork is present and written correctly and see to it that you present a seamless experience that reflects well on your brand.
  • Payroll: Outsourcing payroll services will save time and money by eliminating the need to close books or run reports after every payroll cycle. Regarding new hires and contractors, your outsourced payroll expert will ensure that all tax forms are sent in the on-boarding materials and that information to guarantee timely payment is included and signed by both parties.
  • Information technology: Outsourcing IT services can be beneficial for small businesses that need access to technical expertise without the overhead costs associated with hiring in-house IT staff. You must have a network that consistently delivers peak efficiency. Seamless and reliable IT performance is a necessity.
  • Customer support: Outsourcing customer support services can help your organization provide better customer service without having to hire additional staff or invest in expensive technology solutions that may not deliver the relationship-building personal touch that your organization needs.
  • Legal services: Outsourcing legal services can be a cost-effective way for small businesses to gain access to legal expertise without the onerous expense of paying to add the salary of an in-house attorney or law firm to your payroll. Depending on your needs, it may be smart to negotiate a retainer fee, if legal advice is a regular requirement. Otherwise, contact a business, patent, employment, or other attorney on an as-needed basis.
  • Marketing: Outsourced marketing services can be beneficial when you need help creating and executing marketing strategies, running campaigns and tracking results. Your outsourced marketing expert will introduce marketing automation to your company, or will optimize the automation system you have in place. This specialist will also maintain your social media accounts and ensure timely responses to comments and questions.
  • Web design and development: Outsourcing website design and development services can bring a level of design and technical expertise to your website that you and your team do not possess, even if coding skills are available in-house. Your inbound marketing and marketing automation depend heavily on an attractively, intuitively designed site that downloads quickly and operates efficiently. Your website designer may also provide technical support services that keep your site up and running, as noted above.
  • Virtual assistance: Virtual assistants provide administrative support services for tasks that may include scheduling appointments, managing emails, making travel arrangements and more–allowing small business owners to focus on running their business instead of getting bogged down with mundane tasks. Many virtual assistants offer specialist digital and social media marketing services, helping you attract new customers and some offer specialized accounting and bookkeeping services.

Thanks for reading,

Kim

Image: Stephen Root as Milton Waddams in Office Space (1999), directed by Mike Judge

Sales , , , Leave a comment

Stir Up Your Sales Strategy

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Because you have set up shop as an independent business owner, consistently generating sales of your product or service is central to your existence. Whether your company’s revenue is derived mostly from the sales of long-standing customers or from new arrivals (some of whom are referred by long-standing customers, I hope) and whether your economic landscape is brimming with opportunity or undermined by difficulty, the presence of a sales strategy that consistently produces revenue for your enterprise is a matter of survival. The performance of your sales strategy is not a phenomenon that you can leave to serendipity. It’s a vital sign that deserves your constant attention. Should sales become sluggish, or on the other hand unexpectedly vigorous, you’d better know why it’s happening. If the significant movement in your sales trend is anything other than a seasonal variation, it will be incumbent upon you to diagnose the situation and fix it.

As we’ve explored in this column over the past several months, B2B selling encompasses several factors. It’s a lot to keep your eye on, but that’s the nature of the beast:

  • A robust inbound marketing funnel that invites prospects to explore and consider your products and services
  • Communicating the perceived value of your products or services
  • Asking smart questions that invite prospects to share information that confirms what s/he hopes to achieve when using your category of product or service.

Building a robust sales engine that helps your entity survive the inevitable economic downturns is required of every business owner. Understanding your ideal customer, recognizing which Key Performance Index metrics are relevant, meaning you follow the numbers that reflect an accurate picture of business operations and diversifying the sales channels you use, all with the goal of increasing sales volume, are the primary components of a resilient sales strategy.

Even the invincible iPhone has a sales strategy because there is no product that “sells itself.” Develop and implement a successful sales strategy and you enable your business to not only survive economic challenges but also be positioned for growth and long-term success.

Define your ideal customer

To successfully navigate through business adversity, a deep understanding of your ideal customer will be your guide. You need to know who they are and why they buy from you, instead of a competitor. Along with basic demographic info, you should also comprehend customer pain points, i.e., buying motivations, plus the usual challenges they face and what they hope to achieve once their preferred solution is enacted.

As you discuss the needs of your prospects and the particulars of the project you’ve been hired to do, as well as other conversations you may have with the customer, you’ll be able to conduct in-depth research, gather feedback and eventually get a picture of your ideal customer and what matters most when your category of product or service is used. You research will enable you to create a buyer persona, a sophisticated reference document that identifies and describes your ideal customer, his/her motivations and behaviors.

By understanding your customers well, you can tailor your sales approach to address their specific needs. This not only enhances your value proposition but also establishes trust and credibility. When customers feel heard and understood, they are more likely to choose your products or services, even during challenging economic conditions.

Define and recognize success

A robust sales process relies on clear and measurable metrics. Key Performance Indicators (KPIs) are the metrics that become your compass, a roadmap of the numeric indicators of company performance. If business softens, following a data-driven approach to bring about a recovery is the best defense.

Identify and define KPIs that align with your sales objectives. These may include the sales conversion rate, number of new customers, number of returning customers, average invoice amount and sales cycle length. Regularly monitor and analyze these metrics to identify trends and areas for improvement. By having a data-driven sales process, you can quickly adjust strategies and tactics to respond to changing market conditions.

Identify new sales channels

Relying too heavily on a single sales channel can leave your business vulnerable during economic downturns. To build resilience, diversify your sales efforts by locating additional channels. Investigate both online and offline avenues that align with your target audience and industry.

So if you primarily sell products at pop-up venues, consider expanding into e-commerce and/or strategic partnerships with local stores. Diversification not only expands your reach but also spreads the risk. When one channel faces challenges, others can continue to generate revenue, helping your business weather downturns more effectively.

Utilize technology and automation

In an unpredictable business environment, leveraging digital tools becomes essential for sales resilience. Integrate customer relationship management (CRM) systems to gain insights into customer behaviors and preferences. These platforms enable your sales team to fine-tune your customer outreach activities, prioritize leads and enhance customer interactions. Additionally, consider automating routine tasks such as email follow-ups. Marketing automation not only ensures that every customer request receives a response in a timely and appropriate fashion, but also allows you to concentrate on building relationships that lead to generating revenue.

Finally, because your B2B prospects are not always available for either video or telephone meetings, it’s also wise to invest in virtual communication tools. Platforms for videoconferencing and virtual demos ensure continuous engagement with clients, bridging any physical gaps. By embracing digital transformation, your business is better positioned to navigate economic uncertainties efficiently.

Thanks for reading,

Kim

Image: © Wang Huazhong / China Daily. Shoppers browse for bowls at the Barkhor Shopping Mall in the Kham region of Lhasa in eastern Tibet.

Business Strategy , , , , , , Leave a comment

What Creating Value Means Now

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https://neilpatel.com/blog/create-value-in-b2b-markets/

When providing B2B products and services is the focus of your business, it has always been necessary to create, demonstrate value as a means to attract and retain customers. Perceived value, often delivered as convenience, simplicity or cost saving, is a time-honored motivating factor in this sector. Of course you understand this basic calculus but like everything else, as business conditions, technological advancements, shifts in population, or the cost of living are impacted by various factors, then how value is perceived will also evolve. To complicate matters, you can also throw in the question of how value can be not only created, but also maintained and expanded. To dive into this subject, I turned to marketing savant Neil Patel.

As I knew he would, Neil Patel provides a practical explanation of how the potentially confusing matter of B2B value might best be approached and delivered when instability is the order of the day. To start, he segments customer buying behavior into five areas and labels them as “particularly important for B2B markets since these customers are keenly aware of and interested in anything that gives them an edge or adds to their success”.

  • Response – The knowledge that someone understands your problem and is ready to solve it
  • Service – The ability to clearly spell out the details while eliminating all of the risk (or perceived risk). Can also affect the credibility and trustworthiness of the company depending on how well they handle service-related needs.
  • Quality – A consistent formula that results in well-made products or services that help the customer achieve their goal(s)
  • Price – An assigned value that’s clear, practical and competitive
  • Time – The product or service is dependable, has a sensible learning curve, demonstrates clear return on investment in a shorter period

Having identified factors that were identified as decisive in both his corporate practice, which includes global players such as Amazon, Intuit and Microsoft, as well as the work he does with much smaller B2B entities, he discovered an uncomfortable truth—B2B customers aren’t going to tell you what they want. In fact, they may not immediately recognize, or are unable to describe, the value that will activate their Buy Now button. Your prospects cannot paint a picture of what they’re really looking for and that makes it very difficult for you to offer reasonable solutions that might be evaluated. But the good news is that Patel recognizes that the five decisive factors that govern perceived B2B value can be measured and they can be impacted and improved.

You Are More than Your Product or Service

All of these things add to the core value of the product and/or service, making it so much more. Companies that fail to demonstrate the benefits of these things in ways that customers can understand and appreciate will find themselves hard-pressed to justify the value of their product – particularly where price is concerned.

Notice that there’s one (very important) factor I’ve left out of the value puzzle – trust. Trust supersedes all of the other motivations in this list – however, it’s not something that can be outwardly measured. If you don’t have the customer’s attention, you can build up all of the other facets as much as you like, and you’ll get absolutely nowhere with them. But building trust centers on ensuring that you have the rest of the factors presented in a way that’s relatable, understandable and most importantly, actionable.

All that will happen only when the five critical factors are in place and leading you to create value thar customers will recognize, when they see it.

All of these things add to the core value of the product, making it so much more. Companies that fail to demonstrate the benefits of these things in ways that customers can understand and appreciate will find themselves hard-pressed to justify the value of their product – particularly where price is concerned.

So Why Is So Much of “Creating Value” Focused on the Price?

A lot of discussions about creating value center on price – but this perspective is misleading at best. The truth is, all of the other four facets of value-building: response, time, quality and service, make it possible to justify the price. If the customer isn’t on board with any one of them, you’ll have a hard time closing the sale.

Competing on price alone is a race to the bottom for B2B companies

So how to you make sure that the customer doesn’t simply hinge on price? Follow these steps:

Discover What the Customer is Willing to Pay For

Notice I didn’t say “discover what the customer is willing to pay”. You can uncover a great deal about what a customer values by simply talking to them. They’ll make it abundantly clear if you ask the right questions, especially where previous vendors are concerned. Everything from technical support and training to white-label options is on the table here, and when you find a collection of things that’s high on their priority list, you can:

Hit All the Right Buttons

B2B buying decisions are rarely made by one person. You’ll need to have the whole C-suite, marketing, sales and other executive members of the team on board – and all of them value different things. Don’t hesitate to demonstrate how your product or service can affect a priority of the marketing department, save hours of time for sales and otherwise provide demonstrable ROI to the C-suite. With this in mind, perhaps most importantly, you should:

Sell the Results, Not the Features

Don’t just tell them about the benefits, let them envision the outcomes for themselves. Always remember that the first use of your product or service is in your customer’s mind. When you can communicate the ROI they get in real, measurable ways – whether that return is in profits, time saved or anything else the customer values, you’ll have their attention and most likely their name on the client roster.

Never Stop Improving

Finally, even if you’ve created a fine-tuned money-printing Value Machine, your work is still not done. Even though you’re not competing purely on price, if a competitor can demonstrate that they provide similar (or superior) benefits at a lower price, you’ll find yourself on the defense. In order to continually outperform the competition, it pays to have a finger on the pulse of not only trends within your industry, but trends within your customers’ industries as well.

Thanks for reading,

Kim

Image: Work crew drilling through solid rock to create the Panama Canal, Panama, 1906 (Everett Historical)