Business.com |
- Are You a Serial Lead Qualifier? It Might Be Time to Reassess Your Business Interactions
- 3 Ways to Gain Audience Trust in Blockchain
- SMBs To Benefit From FCC's Rural Broadband Expansion
- How To Raise Your Kids While Leading A Corporation
- 25 Action Words to Include on Your Resume
- Is Not Accepting Credit Cards Hurting Your Bottom Line?
- 15 Things to Remember When Preparing to Negotiate with a Larger Company
| Are You a Serial Lead Qualifier? It Might Be Time to Reassess Your Business Interactions Posted: 13 Aug 2019 02:00 PM PDT  Almost without even noticing, most of us tend to turn every professional interaction into a lead qualification process. Every day is an ongoing parade of meetings and conversations with prospects, customers, partners, business development leads, prospective employees. But with business objectives to be reached and time in short supply, being mission oriented is of the essence. And so we analyze, assess, qualify and then we move on as swiftly as possible if a person isn't deemed to be worth talking to. We don't even notice we're doing it – it simply becomes second nature. With every new connection, we try as quickly as possible to count the odds of establishing a good fit. Each party shows off its prowess, while intensely eyeing the other party for every clue as to its true intents and merits. Since the human business professional is more verbal than his avian counterpart, most maneuvers take the form of questions: is the other party of the right vertical? The right business size? The relevant role? Will he be the right cultural fit? Good on his word? Cash flow positive? Is she experiencing a relevant pain? Can she relate to the solution you're offering? This is all done, of course, in the friendliest, most caring sort of way. We are, purportedly, showing interest in the other person's circumstances and needs. Never mind that we're actually assessing him every step of the way, ready to jump at every vulnerability to either disqualify him or insert it strategically into our pitch to use it against him the first chance we have. The problem is that while we're engaging in this extremely polite interrogation, our counterpart is pulling the exact same move on us. He, too, is trying to get the most information he can, pointing his flashlight at what we're trying to hold back, while keenly trying to protect the information that may weaken his stance. Both parties, of course, can clearly see through what the other side is trying to achieve, which only makes them plant their heels more firmly in their ground. What starts off as a polite back and forth turns quickly into a heavy-weight standoff. Changing the process aroundEvery business graduate is well-versed in traditional lead qualification. But the time has come to innovate the process, which is unnecessarily burdening the business environment with roundaboutness and negativity – and, perhaps more importantly for the goal-oriented among us, often undermines desired business results. Successful long-term business relationships, whether with clients, partners or employees, are the ones based on mutual interests, transparency and respect. These are pillars that are hard to fake, so even if an interested party manages to get qualified despite the lack of an authentic fit, it's only a matter of time before the ensuing relationship falls apart. That's why transparency and honest cooperation should be the values guiding business interactions too. It's a win-win proposition: a more direct and less manipulative dialogue is not only more positive and pleasant, but the openness it fosters will usually afford everyone concerned with more accurate and relevant answers to their most pressing questions. A deeper and more valuable dialogue ensues. To enact the "flip lead qualification" process, follow these steps:
A note on rejectionThe flip side of "lead qualification" is rejection. Even when your business interactions are played out according to a more authentic and empathic scenario, rejections will be part of them. And you may find yourself, interchangeably, on the giving or receiving end. Rejections are never nice, but let's face it: serving them is not as bad as getting them. If you are the party doing the turning down, consider pulling over the values outlined above to that last phase of the interaction, too. Whether you're saying no to a prospective employee, partner or vendor, it will make both of you feel better about the experience – and perhaps even learn something new. Rejections come in three forms: The cold rejection is based on evasion. Instead of confronting the uneasy task of turning someone down you simply cut the cord and do not return calls, do not reply to emails. It's the business equivalent of ghosting in the online dating scene. The warm rejection happens when you have a concrete reason for saying no, but rather than using it you rely on generic corporate excuses ("we don't have the bandwidth right now," "you are not in the right vertical," "your salary expectations are outside our scope.") The honest rejection is just that: honest. It involves divulging the real reasons for your no, even if these reasons are unsavoury and relate to the other party's qualifications, product, cultural fit or experience. As the rejecting party, we often feel that by falling back on the cold or warm rejection we're actually doing the other party a favor, saving face by not exposing their weaknesses or shortcomings. But in most cases, the opposite is true. The generous thing to do is to give an honest account of your reasons, so that the other person understands the why behind your no. This way, you are actually offering him a chance to improve on what needs improving, and perhaps do better with the next client, on the next job interview, with the following VC. Rather than leaving him hanging, or letting him move on just to make the same mistake over and over again, by giving a fair account of the reasons behind your rejection, you're giving your fellow professional a chance to learn and grow. Paying it forwardSo whether your business interaction proves to be a non-starter or the beginning of a beautiful friendship, turning it from a showdown to the mutual, authentic sharing of information will quickly reveal its significant upsides. While an open and honest dialogue might take your partner by surprise, he will soon follow your cue and match his steps to yours. He too will see that a dialogue of that nature is less emotionally and mentally demanding, leads to faster discovery of mutual grounds, and in the long term fosters relationships that are truly beneficial for everyone involved. And if we keep at it long enough, doing business may turn from a game of egos into a dialogue of professionals looking for the best possible ways to work together. |
| 3 Ways to Gain Audience Trust in Blockchain Posted: 13 Aug 2019 12:00 PM PDT  • Trust is a strong selling point for consumers. Blockchain can help nurture that trust.• As cybercrimes become more common, blockchain can ensure insights coming into and out of a company benefit them.• Blockchain adoption requires employee buy-in. Once your team is on board, they can explain to customers the value it provides.Trust comes in many different forms. We trust our friends because we believe they're well-intentioned and will act in our best interests. We even put our faith in strangers once we feel comfortable about their motivations and intentions. When it comes to blockchain, a solution that's supposed to inspire trust, business leaders struggle to buy in. That hesitancy stems from an uneasiness about what happens when leaders hand over troves of valuable business data to a technological solution they know relatively little about. If executives and CEOs can't trust blockchain, how can they expect clients and customers to do the same? Many blockchain enthusiasts like to narrowly encapsulate trust with catchy phrases like "in code we trust" or "in crypto we trust." The problem with those mottos is that they incorrectly equate trust with verification. Trust involves something far more substantial. It's a sense of integrity to go along with a feeling of security. When businesses embrace blockchain, they must feel confident in the solution's benefits and verbalize them to the user base to ensure they feel secure about blockchain. A clear need for transparencyCybercrime is a threat to all industries. A 2019 report from Cybersecurity Ventures predicts that cyberattacks will be responsible for more than $6 trillion in annual costs by 2021 – up quite a bit from $3 trillion in 2015. Unattended security compromises can destroy a company's credibility and profit; building trust and transparency in tech like blockchain can save plenty of money down the line. Trust in the current tech landscape is both a "high-value currency" and good business practice. Known names like Equifax, Target and Uber struggled to regain trust after their respective breaches, but it could be a death knell for smaller companies. So why aren't leaders of businesses of all sizes breaking down doors to embrace blockchain? Companies certainly fear what will happen to their in-house data, but distrust of their peers and wariness regarding regulatory disruption also feeds into that apprehension. That's an odd sentiment considering that blockchain arrived on the scene through Bitcoin, a currency that allows transactions without any need for trust or government oversight. Many C-suite members want to project honesty as a core corporate tenet to show value to customers. Leaders see the value of transparency, but find it hard to trust their technology teams or vendors to use keywords to drive revenue without building a project surrounding emerging technologies. By being transparent about solutions such as blockchain, businesses can build trust and bring value to their consumers and clients with a well-thought-out process on how the data flows. It's just a matter of finding the right approach. Building trustBlockchain technology can be trusted, and it can build trust. Each transaction (block) has a unique ID number that corresponds to the previous block, and each block in the smart contract has a public key identifying the transaction. Public blockchains are completely transparent, with all the information available for anyone to see. Blockchain isn't designed to hold every last bit of data, but its small footprint makes it ideal for delivering the right data to the right people. Taking advantage of these benefits, of course, requires comfort with blockchain. Here are five great ways for business leaders to educate their clients and consumers: 1. Teach the language. Provide resources that will familiarize your customers and users with the technology. This will not only make the transition easier, but it can also clear up any misconceptions people might have about blockchain. For example, we routinely have calls with members of the C-suite who don't understand the difference between Bitcoin/Etherium and Hyperledger. Make sure everyone understands that blockchain is a decentralized ledger for creating, verifying, and enforcing contracts. They should know that blockchain and cryptocurrency are not analogous, though. Blockchain is the platform for cryptocurrency that facilitates and enforces the transfer and record-keeping of currencies. Continuing to educate your customers and clients about blockchain puts them more at ease about using it as a solution. 2. Push the user benefits. Ensure that any technology you embrace benefits end users. A McKinsey study suggests that blockchain doesn't have to eliminate transaction intermediaries to generate value. Its short-term dividends will come from reducing costs, a process which could take up to five years to reasonably materialize. It is possible for companies to start extracting value in the short term with the proper strategy, though. Highlight the value proposition that blockchain provides to end users. Present case studies, testimonials, and other examples to highlight that value. Demonstrate how the basic functions of certain industries are more suited to blockchain solutions. For example, the core functions of financial management – transferring financial information and assets – align with blockchain's greatest strengths. Illustrate blockchain's applicability to end users to garner credibility for it as a solution. 3. Leverage a soft rollout. Create pilot programs for select end users, using those results to help market your strategy to customers. For instance, Storj is an open-source storage provider that blends blockchain technology with big data. During its pilot program, Storj discovered that its decentralized approach could reduce data storage costs by 90%. Use these kinds of pilot programs to unearth similar findings. Once you have the results, analyze and apply them to your current strategy and explain what they mean for customers and clients. The more you can prove that their convenience is central to your blockchain strategy, the more likely they are to have faith in it (and your company). 4. Let customer feedback build better products. Most large companies today use multiple vendors to create a single product. This is true of car companies, furniture companies, and even organizations that provide the foods we eat. For example, think about that leather couch you might have purchased from a leading manufacturer. The leather came from four companies in China before it was manufactured and shipped to your local store. The call center receives support for any wear, tear and fading that leather might encur. Through service agreements, the company dispatches its team to alleviate any problems and lead back to business as usual. With blockchain, leaders can pull up unique information from call center support tickets to track the leather back to its source. Incorporate these insights into your development, using it to tweak specific portions of your service. This allows companies to re-evaluate their relationships with specific vendors to gain additional context on what might lead to problems and solutions. 5. Account for customer experience. My father purchased two faucets from a national retailer for DIY home supplies and services. One of the faucets had an issue with a bad washer, so my dad went back to the retailer and explained the problem. The support center explained that four different companies provide components of the faucet. The support specialist took a picture of the faucet, emailed it to the four providers, and my father received the washer a week later. Blockchain can significantly cut down a process like this. Coupled with the enterprise resource planning software necessary to pull asset data on transactions, the source provider would have the necessary real-time info to solve problems in a timely manner. As CEOs and consumers become more familiar with blockchain's workings and potential, they'll learn to trust the technology. It's all a matter of cutting through the confusion of what blockchain is – and what it isn't. Once leaders are able to help customers and clients get past that initial confusion, blockchain will seem as transparent and trustworthy as an old friend. |
| SMBs To Benefit From FCC's Rural Broadband Expansion Posted: 13 Aug 2019 11:41 AM PDT 
Businesses in rural America will benefit from a push to bring broadband internet to 16 states over the coming years after the Federal Communications Commission's (FCC) decision to approve $121 million in funding for the project. The FCC's approval yesterday is the fourth wave of support for last year's Connect America Fund Phase II auction, which allotted nearly $1.5 billion to expand broadband internet connections to "more than 700,000 unserved rural homes and small businesses" over the next decade. This latest approval brings the total amount authorized to more than $924 million and brings connectivity to more than 342,000 homes and businesses. The three previous waves of funding were authorized in May, June and July of this year. FCC Chairman Ajit Pai called the decision "another step toward closing the digital divide." "As we continue to authorize funds to expand broadband in rural America, I am excited to see the benefits for rural residents who live all across the country, from tribal lands in Wyoming to mountain communities in Appalachia, from the Great Plains to the Pacific Northwest, and from the Texas Panhandle to northern Minnesota," Pai said. Expanding internet service across the U.S.Two dozen funding applications were approved by the FCC in yesterday's approval, with companies in Arkansas, Minnesota, Oklahoma and Tennessee getting millions to improve services. Among the applications approved was a $4.1 million project by Northern Arapaho Tribal Industries, which is owned by the Northern Arapaho Tribe in Wyoming, to bring gigabit broadband services to 849 homes and businesses on the Wind River Reservation. More than 7,000 houses in rural Pennsylvania will gain access to Tri-Co Connections' fiber gigabit network in the coming years, thanks to the $32.3 million approved by the FCC. On Aug. 1, the FCC also established the Rural Digital Opportunity Fund, which would bring up to $20.4 billion in funding to further expand broadband to unserved rural areas. Officials said providers were required to "build out to 40% of the assigned homes and businesses in the areas won in a state within three years," with the build-out set to increase by "20% in each subsequent year until complete build-out is reached at the end of the sixth year." Broadband extension's impact on small businessesAccording to U.S. Census data, 17% of businesses are located in the country's rural areas even though the government classifies 97% of the country as rural. For small business owners in rural America, the introduction of broadband internet could be a major boon. Most business applications require an internet connection for some features, so a speedier connection should help speed up productivity. John Gard, the president of Wisconsin Independent Business wrote in an editorial for the Green Bay Press Gazette this past May that broadband access was paramount for that state's small business community. "The importance of a safe, reliable internet connection for small business and economic development cannot be understated ... As opportunities in the tech industry continue to grow, someone with a knack for computers in Bayfield will have the same opportunities as anyone in the Bay Area so long as they have a reliable broadband connection," he wrote. |
| How To Raise Your Kids While Leading A Corporation Posted: 13 Aug 2019 11:00 AM PDT  Must children lack parental attention because their parents lead a global agency? This is the situation many CEOs have found themselves in. Some handle it with eyebrow-raising strategies. Elon Musk confesses to dividing his time between work and his five children. He does so in a way that even around them, he could be replying emails. That might be an odd way to parent children but for the CEO of many companies, that is his coping mechanism. Pepsi's CEO, Indra Nooyi copes with the dilemma by facing her truth: she can't always be there for her daughter. Sometimes, her daughter complains about her absence at parent meetings. Then, she fires back with a list of other parents who were absent too. But there must be a better way to raise children, even if you hold a top position in a Fortune 500 organization. There is no one-size-fits-all approach. The methods that work in my family may not be suitable for yours. Yet the fundamental principles remain the same. The good thing is, if you head a multinational agency, you probably already know how to be a good parent. In balancing my time between work and family, here are some lessons I've learned. I have gleaned from the parenting strategies of top executives, and I do my best to uphold them. Spend time with your kidsThis is something CEOs find hard to do. But, whichever way you put it, nothing is better than spending quality time with your children. For a CEO, there's not plenty of free time to go round, but if you want to be a great parent too, which you have an opportunity to be, you have to create time for family.
Dan Glaser, of Marsh & McLennan Cos., decided on a different parenting approach. That was after he had had his last daughter of three. He moved to New York City to be closer to her and began making himself available for her sporting events. He sacrificed some work time for this, but gained much more satisfaction. Communication is keyOften, many parents make parenting mistakes. They assume that spending "time" with their children is enough. But what is "time" with your kids if it is not valuable. Family time should not be a monotonous series of activities. It should be a time everyone in the family looks forward to.
Maintaining consistent communication with your children also makes them more likely to obey you. And that brings me to the next point, which is one of the hardest things for any parent, not just CEOs. Controlling your childrenChildren are often great emulators and they pick up habits of adults around them. Parents complain about children not taking instructions. I battle with that from time to time too, and it's not unexpected; they are kids. It may even be more difficult to control them if you are an absent parent.
Bottom lineThere is no hiding the fact that parenting and heading a company is as difficult as it can get. For people like Kate Torgensen, the Founder of Milk Stork, they are able to find a 'balance'. She admits that motherhood alongside work left her physically and emotionally strained. Yet, she determined that "there is no 'off' switch for either.'" Also, she claims that motherhood helped her find her career purpose. In all, everyone is free to do what works for them, whether finding a balance or quitting. But I ensure that my family holds a prime position in whatever decision I make. |
| 25 Action Words to Include on Your Resume Posted: 13 Aug 2019 10:30 AM PDT 
When it comes to a resume, having great work experience and a wide swath of skills isn't enough to get you the job. Poor wording that does not adequately reflect your qualifications can be the difference between landing an interview and landing at the bottom of the resume pile. According to Bob MacReynolds, vice president of Cutwater Dynamics, action words are the verbs on your resume that allow hiring managers to quickly understand where you spent most of your time in each job and what impact you had on the organization as a whole. "Resumes should not only be a summary of someone's experience – they should be a call to action to all those who read it that this person must receive an interview because of their positive impact on the business," MacReynolds said. Before your resume reaches a set of human eyes, it will likely have to pass through an applicant tracking system (ATS). These systems filter resumes based on keywords, which often include action words. Jobscan cites recent studies that showed more than 98% of Fortune 500 companies use an ATS, while 66% of large companies and 35% of small organizations rely on some type of recruitment software. With the use of technology on the rise in the hiring process, it is essential for job seekers to fill in the blanks correctly. After your resume passes through an ATS, action words help hiring managers scan your information and make a quick decision about you and your experience. Jamie Cohen, career coach and HR manager for EndThrive, said the average recruiter looks at a resume for six seconds before making a decision, placing high importance on powerful descriptions that catch their attention. Cohen said action words serve two main purposes: highlighting your skills and experience, and making your resume easier to read. "Firstly, action words are used to paint a vivid picture of your experience, skills and achievements," he said. "Your potential employer needs to be able to visualize you doing the job and doing it well. Secondly, if you start every bullet point with an action word, you set an easy-to-follow rhythm for the recruiter." Gerrit Hall, CEO and founder of RezScore, added that action words can frame your accomplishments in the form of a story, which guides the reader to form a mental picture and increases memorability. "Action words contain the power to make your resume more memorable than resumes with passive voice," he said. "Our regression analysis proves action verbs can improve reviewer rankings of resumes by 20% to 30%, depending on the competitiveness of your industry." How to use resume action wordsWhile keyword-stuffing action words may be the easy route, it is not a successful one. To stand out to a hiring manager, employ the proper usage of action words. For example, use action words to quantify the results you achieved for the company you worked for. If you can use supporting statistics too, that's even better. Showing how your efforts directly impacted an organization's bottom line demonstrates your abilities better than simply stating what you did. MacReynolds said that businesses are thinking about return on investment when they make a hire, so it helps to spell out exactly what ROI you have previously provided. "For job seekers, I always recommend they talk about ways their accomplishments increased profits for the company, decreased costs or improved efficiency," said MacReynolds. "Those are measurable results that all companies look for at quarterly earnings time and at year-end." Another way to use action words is to look for keywords in job postings and tailor your resume to use those specific action words. Cohen provided the following job description as an example: Sales manager responsibilities: Achieving growth and hitting sales targets by successfully managing the sales team Designing and implementing a strategic sales plan that expands the company's customer base and ensures its strong presence If you were to apply for this sales manager position, Cohen would recommend using the specific action words "managed," "designed" and "implemented" and explaining how you accomplished these tasks. The best resume action wordsIn addition to highlighting job skills, the University of Michigan Career Center advises job seekers to use a variety of action verbs to make their resume pop. The university listed more than 135 action verbs to consider using in your resume. Cohen has his own list of 25 of the action verbs he thinks are best for resumes. He divided up the following examples by scenario. If you improved or increased something:
If you facilitated or managed something:
If you started a project:
For day-to-day activities:
If you achieved something:
Words to omit from your resumeClever, meaningful words have a positive impact on your application, while the wrong words leave a negative impression. Avoid passive words and phrases on your resume. These include any verbiage that signifies something was done to you or assigned to you, rather than signifying that you actively took initiative and did something. You should also take care not to try too hard in phrasing something on your resume – it is not a requirement to describe your experience in a unique way. If you created a new method for a project, sometimes it's best just to say "created." Avoid overused or meaningless words that add fluff to your resume. These include the terms "responsible for," "transformational," "synergy" and "dynamic." Also avoid buzzwords like "self-starter," "detail-oriented" and "team player." These are some other words and phrases to avoid on your resume:
"Instead of saying you're hardworking because you're self-motivated, try to prove it with results," said Cohen. "Mention how you've organized a team or increased sales by 23%." While experts we spoke to had mixed opinions on using first-person language like "I" and "me" in a resume, they agreed that you should limit or even omit the use of "we." "On a resume, the word 'we,' when used repeatedly, describes someone who cannot get something accomplished on their own," said MacReynolds. "I always wonder who else had to be involved for that person to handle those duties or achieve that type of success." You should also consider removing your GPA if you have a higher degree. "For the most part, employers won't even notice if it is not included on a resume," said Tim Davis, resource manager at staffing agency Kavaliro. "Only include GPA if a company specifically requests it on the application." When writing a resume, always focus on what you did and the results you achieved for your organization. Using action words to clearly convey those messages brings you one step closer to your dream job. Additional reporting by Skye Schooley. Some source interviews were conducted for a previous version of this article. |
| Is Not Accepting Credit Cards Hurting Your Bottom Line? Posted: 13 Aug 2019 05:10 AM PDT  To avoid credit card processing fees and sidestep the need for additional swipe and chip hardware, a surprising number of small businesses still don't accept credit cards. Unfortunately, not accepting credit cards could be hurting your bottom line. Here's a breakdown of why some businesses don't accept cards, what you might be losing out on by refusing credit card transactions, and how you can get affordable credit card processing for your small business. Why some businesses still don't accept credit cardsCash-only businesses are extremely common in certain places in the United States, like New York City, where locals know to keep cash on hand or else risk being unable to pay for things. Generally, very high-traffic areas (like dense urban centers with ample wealth, or a large percentage of unbanked people) and remote areas (like ultra-rural areas with limited internet service) are more likely to be cash-only than suburbs, towns or midsize cities. In urban areas with a plethora of customers in the vicinity, small business owners may be able to operate at full capacity without accepting credit cards, simply because customers are willing to pay in cash. Businesses in such areas can turn away non-cash customers without the risk of alienating their local community, because they have so many other potential customers nearby. By contrast, if a grocery store in a small city didn't accept credit cards, it might quickly gain a negative reputation and go out of business. But in a dense metropolis, a cash-only deli is just one of many delis in a multi-block radius, so customers who want to pay in credit will simply go elsewhere, while customers who don't mind paying cash will patronize the cash-only establishments without thinking twice. In rural areas, internet connectivity is sometimes the reason businesses do not accept credit cards. They may also choose to only accept cash due to a lower volume of customers or a larger percentage of unbanked customers. Since it does cost a business money to accept credit cards, the interchange fees may simply not be worth it for business owners in remote areas. Plus, like urban dwellers, customers in rural areas are likely to know that some businesses don't accept cards and carry cash on them for purchases, understanding that internet connectivity can be a problem. Thus, they will also be less put off by cash-only establishments than residents in most towns, midsize cities and suburbs. It should be noted that some small business owners also prefer operating on a cash-only basis for a more nefarious reason: because there's less of a paper trail when tax season rolls around. When business owners report their profits to the IRS at the end of the year, it is up to them to track and honestly report cash purchases. Credit card purchases can be easily cross-checked with credit card companies, but cash is easier to conceal. Of course, not all cash-only businesses are engaging in illegal activity, but it does happen. Finally, some businesses don't offer credit card processing simply out of habit. Small mom and pop shops, especially those that have been in business for a long time, are often highly resistant to change and may have put off credit card adoption so long they no longer even consider it. Editor's note: Looking for a credit card processor for your business? If you're looking for information to help you choose the one that's right for you, use the questionnaire below to have our vendor partners provide you with free information: Why not accepting credit might be costing youLike it or not, the world is becoming less and less dependent on cash. Young people and tech-savvy consumers of all ages are flocking not just to credit, but to cashless and card-free transactions via such apps as Apple Pay and Google Pay, and major retailers like Starbucks and McDonald's are increasingly offering alternative payment methods. As this trend continues, businesses that don't even accept standard credit cards will be viewed as even more outdated, and some research suggests that cash-only businesses are already losing billions of dollars a year. A recent study published by the Pew Research Center shows that the trend toward cashless payment transactions is steadily climbing, especially among high earners under 50. The report said, "Roughly 3 in 10 U.S. adults (29%) say they make no purchases using cash during a typical week, up slightly from 24% in 2015." It also noted the difference in high-income and low-income consumers, pointing out that "adults with an annual household income of $75,000 or more are more than twice as likely as those earning less than $30,000 a year to say they do not make any purchases using cash in a typical week (41% vs. 18%)." As the expectation for customers to pay for goods and services through cashless transactions grows, the odds that you're losing money by refusing to accept credit increase as well. This is especially true if you're trying to appeal to high-income people and people under 50. Additionally, customers are even less willing to pay cash when the purchase cost is more than $25, so if you're not a low-cost retailer, you should seriously consider offering credit card transactions. Multiple studies from banking institutions and independent research associations show that fewer Americans are carrying cash, and the trend appears to be continuing. Affordable credit card processingMost small business owners have three major concerns about accepting credit cards: interchange fees, chargebacks and adopting new technology (such as swipe or chip systems). However, there are many affordable options available to small business owners, and some of the fees might be lower than you'd think. [Looking for a credit card processing provider? Check out our best picks and reviews.] Interchange feesThere are transaction fees associated with credit card processing, but they are lower than you might think. The fees vary by type of credit card and are significantly lower for debit card payments than for credit card payments. The most widely accepted debit card and credit cards have fees of 0.05% to 2% of the purchase price, which is why many retailers only accept certain cards and institute the legally allowed $10 minimum on card purchases. ChargebacksA chargeback is what happens when a customer who has paid for a transaction with a credit card gets their money back. The most common type of chargeback occurs when a customer returns a purchase and is issued a refund, but a customer can also request (not necessarily receive) a chargeback if they feel they were unfairly charged for a good or service. This might occur if an employee accidentally charges a customer twice for the same good or service or otherwise overcharges them, but customers may also attempt to receive fraudulent chargebacks. Chargebacks come with a processing fee, which is paid by the business owner and is part of why some businesses post policies such as "no refunds" or "store credit only." Offering store credit allows a retailer to give the customer their money back without also paying a chargeback fee to the credit processing company. If your business has a high percentage of returns or refund requests, you may want to institute a policy to offset chargeback processing costs. Credit card processing software and hardwareIf it's been a few years since you last considered implementing credit card processing, you might want to revisit it, because the days of bulky POS systems that require thousands in upfront costs are in the rearview mirror. While those systems are still around, they're no longer the only option; in fact, it's much cheaper to set up a credit card system than it ever has been. There are lots of lightweight POS-style solutions that are ideal for small spaces (and even mobile businesses), like Square, which makes it easy to swipe on the go. There are online-only credit processing solutions too, like PayPal, which works very well for both low-volume and high-volume online businesses and even side hustles. Money-saving credit card processing policiesA cash-free society might not be right around the corner, but refusing to implement the systems necessary to accept credit cards may be seriously hurting your bottom line. Here are some ways to accept cards while keeping your processing costs as low as possible. 1. Ask if the card is debit or credit.Ever wonder why some retailers ask if you want to pay with debit or credit? It's because the interchange fees for debit cards are much lower than for credit cards. Asking a customer this reminds them they can pay with debit, which can help you cut down on monthly fees. 2. Set a credit limit.It's legal for businesses to set a $10 minimum for credit card purchases, which can offset the costs associated with credit card purchases and eliminate interchange fees on small sales. 3. Consider a surcharge policy – carefully.Credit card processing services always charge fees for accepting payments, but some businesses choose to use surcharge policies to pass the fee on to the customer. Before you start a surcharge policy, however, you should be aware of all the laws and regulations surrounding surcharging and how it may affect your business. |
| 15 Things to Remember When Preparing to Negotiate with a Larger Company Posted: 13 Aug 2019 05:00 AM PDT  When a large company wants to reach an accord with your smaller company, it can be an exciting time, but it can also raise many questions, particularly if this is the first time you've dealt with this kind of deal. What kinds of research should you do ahead of negotiations? What kinds of attitudes should you have, going in? How long will the process take? To help you prepare, 15 members of the YEC, below, discuss some of the things small businesses should remember when negotiating a contract with a larger company, as well as discuss why. Here's what they said: These answers are provided by Young Entrepreneur Council (YEC), an invite-only organization comprised of the world's most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year and have created tens of thousands of jobs. Learn more at yec.co. 1. Communicate effectively"We often seek to be understood before being willing to understand which often results in ineffective communication. Having a clear understanding of the other party's propositions and goals is an important prerequisite for any successful negotiation to take place. Knowing exactly what value they add to your firm will also be helpful when considering alternatives, in case things don't work out." - Abeer Raza, TekRevol 2. Look at the terms closely"Sometimes small businesses that are new to negotiating contracts with big companies will pay close attention to the price and totally forget about looking closely at the terms. So, before agreeing to a contract, go over the terms carefully. You may find some that are unacceptable. You can also have an attorney look at the terms so they can point out any issues you may have missed." - Stephanie Wells, Formidable Forms 3. Don't give up your business if you aren't ready"A big-time deal with a large business usually means they are planning on trying to merge or buy you out. If you're thinking about retiring early, this could be a good deal for you. However, if you see more potential in your business, don't give it up until you're ready." - Syed Balkhi, WPBeginner 4. Look at the details"Rather than agreeing to the full project scope, trim items and services that add little value to the overall agreement. Instead, stay focused on only the highest-ROI portions and negotiate based on those deliverables to minimize your costs while improving your bottom line. Often, counterparts will include features that are low value to the buyer, but high-margin for them." - Firas Kittaneh, Amerisleep 5. Focus on collaboration"Ask how you can make this a win-win for everyone. Dealing with a larger company, it's easy to feel that they inherently have the upper hand or they plan to beat you up on pricing. But, they are negotiating with you for a reason, it's because you bring something of value to the table. Be strategic. Focus on being collaborative and voice that you want this to be a win-win all around." - Lisa Song Sutton, Sin City Cupcakes 6. Require fair terms"Large companies often try to stuff aggressive terms into their agreements with smaller companies. Point out that that you're trying to optimize for project success and in order to do so, you require fair terms. Explain why some terms might be overly aggressive by painting scenarios — even if a bit unrealistic — that show why a particular clause or point might concern you." - Ryan D Matzner, Fueled 7. Be prepared and willing to walk away"It's important to remember that you can always walk away, no matter how powerful or intimidating the other company is. In other words, even though they may be more powerful than you, they are not superior. If you are unwilling to walk away, desperation has a way of creeping into your communication, which automatically gives your interlocutor the upper hand." - Shu Saito, Fact Retriever 8. Do your research"If you're negotiating a contract with a large company, make sure you research the business and owners before you meet at the table. The more you know about the people you'll be talking to, how your brand can help theirs and what kind of deals they've made in the past, you'll be ready for a solid negotiation." - Blair Williams, MemberPress 9. Know what leverage you have"The key to protecting yourself and getting better terms out of a contract is being sure of what you offer, so that you can't be bullied. Before entering into an agreement with a larger company, carefully research what you can provide that they don't yet have access to. Consider the worth of your market position, penetration and any relevant IPs that your partner will depend on." - Matt Doyle, Excel Builders 10. Expect more back and forth"If you're coming from a startup background, keep in mind that negotiating with large companies is an entirely different ballgame. It'll take a lot more patience and back and forth than you're used to with smaller companies. Maintain your professionalism from start to finish, even though it may be a long road." - Frederik Bussler, bitgrit Inc. 11. Consider all possible outcomes"Oftentimes, we like to plan ahead so we know what to expect in the future. Before you go into a meeting to negotiate a contract with a large company, you have to consider the impact this interaction could have on your future goals. For example, if you wanted to open up a new business, could you profit enough off of this sale to get started? It helps to consider all possible outcomes for your future." - David Henzel, LTVPlus 12. Use third-party criteria if needed"If the larger company tries to bully you in the negotiation, use objective, third-party criteria to resolve your differences. If you can point to objective third-party sources as the basis for your position, the larger company is more likely to agree to your position." - Doug Bend, Bend Law Group, PC 13. Understand the decision makers"Larger companies have a much more complex decision-making process than your average client. Try to understand what parties are going to be on the other side of the table and what each of them are looking for. Even though your point of contact might be in marketing, is tech going to be involved? What are they going to want? Do your homework and make it easy for everyone to say 'yes.' " - Karl Kangur, Above House 14. Be confident"When you're negotiating a contract with a larger company, you might tend to put yourself down. You might have thoughts that they're more powerful than you, have more money, and so on. But, it's important to build yourself up before going into a negotiation. Remembering what you have to offer and why you're there will give you more confidence. More confidence can lead to better negotiating skills." - John Turner, SeedProd LLC 15. Stand your ground"It's easy for young companies to be trampled over when it comes to contract negotiations with a large company. Don't forget that this larger entity is hiring you because they need your product or service, and do everything possible to stand the ground of your typical contractual terms. Don't roll over too soon, yet be receptive to reasonable requests and feedback which can help you can improve." - Keith Shields, Designli |
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