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5 Habits of Successful Online Entrepreneurs

Posted: 04 Sep 2019 12:15 PM PDT

Habits are the defining quality of every person. Whether they are a result of by genetic instincts, cognitive learning or environmental conditioning, habits not only make an essential part of life, but also determine the success and failure of it. While bad habits can yield unfavorable outcomes, good ones can reward your health, reputation and fortune. 

How does a good entrepreneur sway the balance of success? Being an online entrepreneur, every aspect of your thinking, dealing and implementation demands effectiveness to produce results. Effectiveness is not only a key determinant to your decision-making process, but also holds a central role in the core of your business operations, allowing you to streamline your tasks, monitor your progress and improve the efficiency of your business. Most importantly, a smart entrepreneur learns from other successful businesses who have already walked down the path and made notes on their experiences.

1. Improving ecommerce experience

Successful web entrepreneurs are always passionate about delivering the best possible user experience to the customer. Since ecommerce site owners cannot directly interact with their customers like in traditional brick-and-mortar shops, the website does the job of guiding the customers and assisting them throughout the shopping process. A successful web entrepreneur understands the imperative of utilizing resources for improving the key aspects of the website that control customer touchpoints. This includes major features such as web design, visual content, navigation, text, checkout process, mobile responsiveness and return policies, etc. This gives customers a great value proposition when they land and interact with the store. 

The best way to find what customer's like about your store is by talking to them and getting feedback. This does not mean you have to call them individually one after the other, you can also use emails, pop-up notifications, chatbots and social media pages to link up and build a connection with them. While there are many questions you can ask, here are some ideas top e-commerce websites use to get customer feedback.

  • How can we make your experience better?
  • Are you satisfied with your purchase? We are always looking for more improvements.
  • Mention how you found us?
  • Is there anything you thought could be better, we are always open to suggestions.
  • What influenced you to buy from us?
  • Is there anything less in our products than what others are offering?
  • If you could eliminate one thing that we were doing what would it be?

2. Being aware of your business

Being an online entrepreneur you must remain attentive and aware of what goes on your website. No matter how fast your ecommerce business builds, matures and grows, you must never let complacency get the best of you, particularly when it comes to operational processes.

Successful web entrepreneurs do not allow ease or disorganization to be entertained in their business and remain proactive, organized and fully informed about their online operations. They monitor their website's operational effectiveness, how well does it function, can customers easily search for products, are there any tickets being generated, is the checkout process working smoothly, or do customers face any trouble receiving their orders.

Through consistent evaluations, you can identify, improve and maintain a smooth flow of operations, ensuring your customers benefit from the best quality service a website can give.

3. Knowing your metrics

Most successful webmasters know this and practice it in every area of their ecommerce business model. To grow your business, you must know the metrics that show the health of your business. KPIs or key performance indicators help you track your business's progress, build effective strategies and enhance your ROI. This includes Cost Per Acquisition (CPA), average/monthly sales, conversion rate, average order value, cart abandonment rate, repeat purchase rate, customer lifetime value and revenue per visit. Though most KPIs are factored around business cost and revenue generation, many other KPIs are frequently used to determine buying potential and success rate of different forms of digital marketing campaigns.

By knowing your numbers, you are able to make better decisions and avoid many major pitfalls that inexperienced web entrepreneurs often stumble to.

4. Choosing the right partners

Many ecommerce businesses that achieved early success accredit their accomplishments to the partners they chose during their infancy. From hosting, web development, and marketing, to logistics, security and support, each of these entities play a critical role in helping the website achieve its business goals effectively. Without a good hosting provider, you may not get the speed and reliability you need to retain your customers. 

A bad development and design partner will not give your store user-friendly features and the aesthetic appeal to attract customers. Similarly, you need a good digital marketing agency to brings exposure to your products and services, raise your rankings and generate leads. According to recent survey, 84% of customers will not make a purchase from a site if it is unsecured. Effective web entrepreneurs never gamble with their website and make informed decisions when picking their partners. This involves reading reviews, customer testimonials, word of mouth or even a trial run to know if the partner is up to mark or not.

Researching before hiring a partner can make a huge difference in your e-commerce store's day-to-day operations.

5. Test the website

Another golden habit in successful web entrepreneurs is the urge to experiment on their website. A web entrepreneur who appreciates the importance of ingenuity and customer psychology in e-commerce always experiments on different parts of the website. This allows webmasters to explore their store's marketing potential, improve their conversion funnel, fix sales leakages and ultimately generate more revenue.  

Getting into the habit of testing ideas and assumptions is a lifelong process in your e-commerce business that keep evolving. While there are many things you can start off with, here are some essential areas where successful web entrepreneurs target first.

1.    Product Page Template: Often the most neglected part of the website, product pages hold great conversion potential if they are right presented. Trying neater and feature-focused themes can help highlight your product's unique selling proposition more effectively to the customer.

2. Checkout Page: Checkout page hold a deciding role in the purchase process. Successful e-commerce stores use one-page checkout forms and reduce unnecessary fields to make the experience swift and unsophisticated for the customer.

3. Testimonials: Featuring your testimonials where they matter the most, such as the homepage can help engage your customers and encourage them to purchase your products. Customers value feedback, especially that comes from other customers who have used the same products they are interested in.

4. Price: Testing different price ranges on your popular products can benefit your online business immensely, especially when you have different regional stores to look after. Learning about your customer demographics and preferences can help in variegating pricing and offering discounts and bundles

We also recommend using different tools that can help your testing get more accurate findings when you are planning to make changes. Tools such as Google Analytics Experiments, ahrefs and Visual Website Optimizer, etc. can help you get a more detailed overview of your website.

By incorporating these five habits into your online business you will not only come closer to achieving your ultimate business goals but grow your business exponentially.

 

How to Successfully Market an App In 2019 (and 2020)

Posted: 04 Sep 2019 10:00 AM PDT

We love our apps. There are more than 2 million on the iTunes App Store alone. Business of Apps reports that the average American smartphone owner spends 2 hours and 57 minutes using their apps each day, with approximately 20.1 apps being used on a monthly basis.

Needless to say, apps have become a fully integrated part of our daily lives. There are apps for practically every niche imaginable, whether you need help managing your finances or you want to spend time gaming.

All of this presents a significant opportunity for app developers. But it also poses a legitimate challenge. After all, with so many apps on the market, how can you get yours to stand out?

Successfully marketing an app can be challenging, but it's far from impossible. Here are some of the tactics that I've seen generate real results, that will help you grow your app's audience in 2019 and in the years to come:

Find your unique selling point

It doesn't matter whether you're developing a standalone app or launching an app that serves as an extension to your website — you need to find the unique value proposition that you can offer to your target audience. All the marketing in the world won't do you any good if people don't feel like they have a legitimate reason to adopt your app.

Think critically. What is the problem you are trying to solve? I've found that doing extensive research on your perceived target market and analyzing the strengths and weaknesses of potential competitors can go a long way in helping you identify areas where you can fulfill an unmet market need.

Regardless of what your idea might be, chances are, there are already other apps attempting to address a similar need. Doing your research early on will ensure that you don't become just another imitator that gets lost in the clutter.

However, you should also take this opportunity to identify ways to more seamlessly meet user expectations regarding design and interface. As developer Hicham Moutahir warns, "As a user, you would want to open an app and feel like you already intuitively know everything — where to click next, what actions to perform, how to jump to a particular place, etc. The second you get stuck, you give up and go try another app." Don't try to become so unique that you alienate your audience.

Optimize your app listing

Online app stores are one of the primary means of discovery for smartphone apps. Unfortunately, far too many developers overlook the marketing basics needed to ensure that people can actually find their recently launched app. Just like websites need SEO to stand out, you will need to use app store optimization techniques to increase exposure and engagement.

Even if you have your app listed on your own website, you need to optimize your app store listings. Research from Forrester indicates that a full 63% of app downloads come directly through app stores.

As in SEO, keywords matter. Your app's headline, description and even screenshots should be optimized for your target keywords. This will help you show up in relevant searches. App stores also look at reviews and ratings to determine an app's overall engagement levels. Encourage your early adopters to leave reviews for an additional rankings boost.

As engagement and impressions continue to grow, so will your download numbers. This will continue to feed into the ranking algorithm so you can keep climbing.

Grow revenue through retargeting campaigns

It's a common mantra in marketing that it is cheaper to retain an existing customer than it is to acquire a new one. I've learned through my own startup experiences that this is true, and it has equal application in the apps marketplace as well.

A recent study from app user acquisition analytics provider AppsFlyer found that retargeting yields a 50% greater revenue uplift than acquisition campaigns that don't involve retargeting. This was especially true of shopping apps, where app retargeting resulted in an impressive 62% conversion rate. Across all industries, apps that utilized retargeting campaigns saw their year-over-year revenue increase by 63% from 2018 to 2019.

The most effective retargeting campaigns use dynamic ads, which offer greater relevance and personalization in comparison to a standard ad. By leveraging data from a user's previous interactions with your app, you can customize your retargeting campaign on an individual basis to identify the content that will have the greatest impact.

Leverage industry influencers.

Though the term "influencer" has largely become associated with celebrities on Instagram, this is far from the only platform where you can find individuals with large followings who can help get the word out about your new app.

Look for bloggers, podcasters or social media influencers who work within a similar niche to your app, then send a pitch to encourage them to try out and review your app. Obviously, you want your UI to be ready to go at this stage so you can get a great review. Even a short mention in a Tweet will have a greater influence on much of your target audience than all the paid marketing you would do on your own.

You can also increase your coverage potential by sending out press releases or getting appearances in podcasts or other interviews to discuss your new app. Bloggers and news outlets are always looking for new content, and the launch of your app can easily be viewed as a newsworthy event.

Regardless of whether you are reaching out to an influencer or setting up an interview opportunity, you must clearly communicate your unique value proposition in your pitch. Publishers and influencers want to provide value to their audience, too. Try to focus the story on how the app helps their target audience, rather than the app itself.

Engage your audience through social media

Social media has had its ups and downs, but it continues to be a powerful driver for app downloads. In fact, research from Google has found that social media ads influence 49% of all app downloads.

With organic reach continuing to decline, app developers must invest in paid social media content if they want to take advantage of these highly targeted ad platforms. However, savvy marketers know that newsfeed ads aren't the only way to promote their app.

As reported by Digiday, many brands have recently found success by using Instagram Stories to promote their apps: "App installs for Hopper on Instagram Stories grew by 67% on versus those ads the travel advertiser bought in the Facebook news feed … Conversions were also three times more likely on the app install ads bought in Stories versus those in the feed."

This doesn't mean that you should neglect organic content entirely. Your app's social media profiles are an ideal platform for running contests or providing special offers that encourage new users to download your app. Social media also allows you to use your current audience to find new app users, particularly when you run contests that require tagging friends or sharing a branded hashtag.

Continually update and maintain your app

It's nice to imagine that the actual development work is complete once you launch your app. But this simply isn't the case. As with any other business venture, you must continue to fine-tune and improve your app after the initial launch.

Whether you discover new bugs or receive feedback from your customers about something that needs to change, continued app maintenance plays an essential role in retaining your current users. It indicates that you are fully invested in your app and its contents and that you care about the experience of those who have downloaded your app.

Quite often, you will need to update your app to address changes in the marketplace as a whole. Whether you need to ensure compatibility with a new set of devices or want to add a new feature to address a new competitor app, new updates will ensure that you remain relevant.

A/B testing can also prove to be a valuable resource once you have a large enough user base, especially when planning to implement new ideas. Getting customer feedback before enacting a full-scale change will help you avoid the backlash faced by apps such as Snapchat.

Continued updates won't just make your app more user-friendly. It can also improve your rankings in app stores. Regular app updates are actually part of the ranking algorithm for both Apple and Google. Online app stores will reward you for keeping your app up to date, even if you are only making a minor change.

Is marketing your app a lot of work? Absolutely. You must consider the marketing needs of your app from the time you enter development through the months and years after your launch.

Marketing an app is never a once-and-done item on your checklist. It is an essential part of your ongoing branding efforts. As you use these tactics to ensure your app reaches your target audience, you will achieve the growth you need.

Is Your SBA Loan in Default? Forgiveness Is Possible

Posted: 04 Sep 2019 08:30 AM PDT

When you first decided you wanted to become an entreprenuer, where did you see yourself five years down the road? If you are anything like me, it was almost exclusively positive. I've spent lots of time thinking about how great things are going to work out, and almost none contemplating the potential downside.

Well, that's what I want to discuss with you today – the downside. But I want to talk about a very specific downside: what happens if you default on a Small Business Administration loan.

The internet is chock-full of info about SBA loans, so I'll spare you the book report. Instead, I'm going to bullet-point the key features of SBA loans. If you want more details, the SBA's own website is a great place to start.  

Here are the key points:

  • The SBA is not a direct lender (in most situations). It simply guarantees repayment to the bank in the event that you fail to repay the loan.
  • The SBA charges a guarantee fee for you to obtain an SBA loan. This is how the SBA program is primarily funded.
  • The SBA guarantee does not get you off the hook if you default on the loan. The SBA reimburses the lender, but this does not impact how much the borrower owes. Borrowers often get confused by this, so I'm going to say it again: The SBA guarantee is for the lender, not the borrower.
  • SBA loans are great for borrowers who meet all the normal criteria for a traditional business loan except collateral. If you have good personal credit, 2-3 years of profitable operating history, strong experience in the field and cash to inject, but not enough collateral to cover the loan, an SBA loan might be a good option for you.
  • A startup with no operating history is unlikely to be approved unless it's part of a franchise with a good track record. A business plan and a good idea are not enough to get you funding.

What happens if you default on your SBA loan?

I'm not going to sugarcoat it: If you can't make your loan payments, some pretty bad things can happen. Bank levies, wage garnishment and foreclosures are common collection techniques. What exactly will happen to you depends on the details of your situation and your lender.  

If you default on your loan and have pledged your home that contains equity, you risk foreclosure (in most states). That's why you should think long and hard about pledging your home. Once it's pledged, it can be awfully hard to get it released – even if your loan officer makes verbal assurances that the bank will release it after a few years of prompt repayment.

Even if you didn't pledge your home, you still have that pesky personal guarantee. Since virtually every SBA loan I've ever seen requires a personal guarantee from the business owner, this particular point applies to almost everyone. 

 

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If you default on your SBA loan, the lender could sue you and attempt to levy your personal assets. Bank account levies and wage garnishment are most common, but I've had clients call me after the local sheriff's office knocked on their door to levy personal possessions (not that common, but jarring if it does happen).

Does the SBA forgive loans?

The answer, as with many nuanced things in life, is that is depends. The SBA does have a settlement program called SBA Offer in Compromise (OIC), but forgiveness is not automatic. It's a business decision the SBA makes: to take less or risk getting nothing at all.

The SBA generally doesn't offer 100% forgiveness on 7(a) and 504 loans, not matter how dire your finances are. It is under no obligation to consider a settlement but often does. It does have a set of basic parameters that you'll need to meet to have your OIC considered:

  • Your business needs to have ceased operations (selling as a going concern via arm's-length sale is OK), and all the business assets need to be liquidated. It's extremely rare for a business to remain open and operating to settle their SBA debt, and it typically happens through some sort of bankruptcy.
  • All obligors (i.e., borrowers and guarantors) who are seeking forgiveness must submit full financial disclosure. Here is a specific list of the required items. Some borrowers want to negotiate without that information, and it's typically a non-starter. The SBA isn't willing to negotiate for the sake of negotiating, which brings us to the next point ...
  • An OIC will be considered only if you can demonstrate your ability to repay the debt over a reasonable period. This is why full discloure is required. The SBA wants to understand what resources are at your disposal, and it will compare what it sees as available to what you are offering through "enforced collection" (i.e., what it could get if it sues you). When those amounts are similar, your OIC is likely to get some consideration.

Be cooperative – the SBA doesn't have to forgive your loan.

Being in default on your SBA loan is likely one of the more stressful things you'll have to deal with in life, so I get the temptation to avoid dealing with it. It's much easier to simply ignore those emails and phone calls. Just keep in mind that if you want to eventually settle, one requirement (per the SBA) is that the participating bank recommends the OIC for approval. So if you act like a jerk or annoy them, you run the risk of the lender not supporting your OIC. It's not hard to imagine a loan workout officer being on the fence about your settlement offer, then deciding to decline it because you were rude, aggressive or non-responsive.

Loan forgiveness is not a right. The SBA doesn't owe you anything. A settlement is based on financial hardship, which means you need to prove that you lack the assets and income to repay the debt in full. From time to time, I get calls from people who say, "Sure, I can afford to repay it, but with the business being gone, I really don't want to." It's an understandable way to feel about a business that you no longer own but still owe a ton of money on.

Sometimes people call me even when their loan isn't yet in default, wanting to know if there is a way to settle their SBA 7(a) loan without actually going into default. Lenders vary on this point. Some won't give you the time of day unless you have already missed payments. Others are more practical and will entertain an SBA OIC once the business closes, regardless of the payment status (current versus defaulted).

The bottom line is that if you expect to settle your SBA loan through the OIC process, expect to give the bank or SBA full disclosure. It wants to fully evaluate your situation to determine if you can repay the loan in full and, if not, what amount would be reasonable to accept as a settlement.

Organizational standards vary between SBA offices and bank branches.

While you may qualify by these criteria, that doesn't necessarily mean you'll get the same deal at every single branch or office. The standards and accepted practices vary by region (which is frustrating, considering they all are bound by the same standard operating procedures). While this may seem subjective and unfair, it's a reality – one that an inexperienced advisor won't know much about.

So yeah, I'm tooting my own horn here. I do enough of these with enough frequency that I know the little quirks of each SBA office. Does that mean I know with 100% accuracy how much they will accept? No. But I do have a good understanding of which office won't take anything less than half, which office is a stickler for paperwork, and which typically only approves or declines offers with nothing in the middle (i.e., no counteroffers).

Bypassing the lender rarely works.

When working directly with your SBA lender, sometimes you're not going to get the answer you're looking for. But when things don't break your way, going over your lender's head isn't going to work unless they've done something egregious. Why? If your lender is servicing the loan, the SBA will defer to the lender in the vast majority of situations. The SBA depends on (and compensates) its lending partners to service SBA loans, which includes making decisions on OICs. There are millions of SBA loans out there, so the SBA simply doesn't have the manpower to get involved in every single loan.

It's not an easy way out; it has costs.

I've said this a bunch of times over the years, but it bears repeating: The OIC is not a free pass. If you want to settle, you need to be prepared to give the SBA the pound of flesh it requires. Obviously, the biggest question every borrower has is how much the SBA will want. The exact amount depends on a lot of factors (I cover many of them here), so there is no blanket answer. These are some factors the SBA considers:

  • Is your home pledged, and is there equity?
  • Do you have cash savings? (This is an easy one.  If you have cash, the SBA will want at least a portion of it unless you have a valid reason why you can't give it.)
  • Do you own assets that could be sold to raise cash? Boats, RVs, extra cars (the SBA usually won't ask you to sell your only car), collectibles, etc are all possible sources of cash.
  • Do you have steady income (or a spouse with income, even if they didn't guarantee the SBA loans)?
  • What does your future earning potential look like? Age, profession, education and health are all factors here.

SBA loan forgiveness is a hard nut to crack, but it's possible. Because it's the government, the rules, protocols and general thought processes often defy logic. "But that makes no sense!" is the refrain I've heard a million times, to which I say, "True, but that doesn't mean it's not the reality of your situation."

Understanding what's negotiable and what's not is imperative to succeeding with the OIC process. It's their game, their rules. If you want to settle, you don't have the option to take your ball and go home, so make sure you understand all the nuances of the process – or find someone who does.

How Your Sales Team Can Help Drive Your Operational Strategy

Posted: 04 Sep 2019 06:00 AM PDT

 

  • In a fast-paced environment, business leaders have to carve out time to step back and look at the bigger picture.
  • Sales managers and salespeople are in unique positions to provide strategic insights and can be catalysts for these strategy conversations.
  • Not only will these strategy discussions present opportunities for growth, but they will also likely help sales teams close more and better deals.
  • Sales managers can use framing language and specific techniques to build buy-in from the C-suite.

Too often, businesses operate with tunnel vision and blinders: They sell according to what they think is best, not what the customer most relates to. It's vital for business leaders to take a step back, understand what connects with the customers, and make adjusts rooted in consumer behavior.

Here's an example of how a business leader's mindset clashed with consumers' viewpoints: Business leaders often speak about their businesses from the perspective of an industry or a vertical. But that's not how your customers interact with you. One of my clients who owned a co-working space realized her marketing messages came from an affiliate standpoint, framed by how she thought about her business. When she transitioned her messaging to the simple value of office space, which was how her customers related to her business, the return on her marketing investment exploded.

Most modern professionals acknowledge the value of analysis and data gathering, but it can be near impossible for C-suite executives and business leaders to slow down long enough to gather those insights. According to a study conducted by Harvard, CEOs use only 21% of their work time focusing on business strategy. But now is the time to consider strategy, especially as 35% of CEOs expect the economy to worsen in the next year. 

The sales team has a powerful role to play in driving more time devoted to strategy. Sales managers and salespeople can be the catalyst that causes the C-suite to pause and reflect. Knowing the strategic landscape gives you the ability to position yourself as an expert and displace your competition. It also allows you to align your offering to the right customer, saving selling time and frustration. But how can you persuade your C-suite to slow down and step back? The key is using the right language and strategies.

Because salespeople speak with customers every day and understand the company's competitive positioning, they are an incredibly important voice when it comes to making operational changes. 

As a sales leader, you have a line of sight into both the client-facing and operational sides of your business. Others might not have that big-picture perspective. This makes it all the more imperative that you leverage your insights and encourage your leadership to take time to pause so that you can ensure your company is heading in the right direction.

Find a way to engage systematically to gather the most sound and current feedback about your customers. This could be a Net Promoter Score type of questionnaire, or even just a basic survey. The questions you ask are not as important as the actions you take from the feedback.

In a 24/7, transparent world, you will always receive irrational requests from customers. By identifying trends, you'll have better insight into what aspects of your processes require the most immediate attention and resources. 

The cliché is "feedback is a gift," but when it involves your paying customers, negative feedback patterns merit a time-out. You need to have the judgment to determine whether a request can add value or whether it's just coming from a one-off situation or a disgruntled customer. 

In B2C marketing, paint points commonly relate to improving customers' finances or productivity. In the B2B space, they're more likely to involve streamlining internal processes or giving operational support.

As a seller, it's worth it to solicit that feedback. Regardless of what questions you ask to get there, the goal of any feedback exercise should be to understand the biggest challenges your customers face.

Just as it did for the co-working space owner, language matters for you. Here's how to "sell" your executives on the benefits of taking a short strategic planning break so you can achieve higher sales:

1. Tie your idea back to revenue

The most effective way to get a CEO or sales executive to listen is to start with, "I have an idea about how we can drive more revenue and/or get more clients."

By beginning with the revenue goals and then backing out into how your idea accomplishes them, you're speaking your leaders' language and will gain a stronger hold on their attention. You are in a unique position to break down requests and feedback into actionable steps and to outline the ways those steps will impact the overall revenue number. If you don't link the idea to increased revenue, then don't expect your leaders to take action.

2. Make it tangible

People often speak in generic, high-level concepts. Leaders want tangible ideas that they can visualize and implement, so it behooves you to explain your approach in actions or behaviors.

Think about it from a day in your life: What has to change to free you up to close more and better sales? It could be as simple as creating an email-free zone at certain times during the day so you have more time to respond to clients. The point is to make it tangible so that others can visualize your idea for themselves. 

3. Ask for one thing at a time

We can't possibly keep up with the inundation of data in today's business world. Data is wonderful when it is synthesized and applied properly, but in aggregate, it can foster a sense of overwhelm or analysis paralysis. Make it easy on your leaders by asking them for just one thing to be different. Not only will it be an easier ask of them, but it will also show them proof of how your idea is effective and scalable.

For example, one of my clients wanted to ensure that everyone on a new project was aligned, but she was having trouble gaining buy-in. So she asked her president for a pre-meeting before it even launched. Those 30 minutes were invaluable for everyone involved and ensured that everyone was clear on the end goal before the project even began. 

4. Apply the pre-Gutenberg test

Another client, who runs a $12 million professional staffing business, told me he was tired of the latest tools and technologies. As an early adopter, he found too often that he was bound to a new dashboard or app.

This client gained a moment of clarity when he learned of a "pre-Gutenberg" approach. Instead of relying on the latest fancy software, he's returned to his tried-and-true methods. If it was a good enough idea to work before the printing press, it has clearly stood the test of time. The same simplicity test can be applied to both your feedback loops (surveys) and your conversations with leaders. 

Taking the time to understand the behaviors along your value chain is key to creating greater efficiencies with time or money. Small businesses can get distracted more easily than bigger businesses because they are "changing the tires" as they drive. They don't have large functional departments to whom they can delegate tasks. They have to be and do at the same time, which can create the appearance of being scattered. Understanding what the revenue-generating activities are is key.

In the sales world, it might seem like everything is about closing the deal. But by taking the time to ask questions, gather information and think strategically about critical issues, you will save time and vital resources down the road. As a salesperson, you're in a key position to encourage your C-suite to slow down and consider strategy. With carefully framed language, you can set your entire company on a more efficient path to growth.

 

Why Every Company Should Have a Business Savings Account

Posted: 04 Sep 2019 05:00 AM PDT

Business success causes business owners and leaders to think differently about money and resources. Unfortunately, many business owners never break through in using profits wisely. 

Leaders who desire to develop a strong and robust company will make decisions wisely about all of their business's resources. 

One aim that leaders should strive for is building and maintaining a robust business savings account. Many businesses never consider opening a savings account as part of the business holdings. It is smart to put back to push forward.

To manage resources well, a business leader should consider what has been given to them and what can be managed well so it can be applied for future conditions.  

Here are four reasons why saving will benefit your company.

Robust savings insulate your company from unexpected emergencies. 

Every business has dry seasons where sales become difficult and cash is drained. Business savings accounts are liquid assets. Liquid assets can be tapped to pay expenses that are more than current receivables.  

The wise business owner prepares today for the unexpected tomorrow.  

Organizations that withstand the test of time understand there will be times when they will be tested. These tests come in a few different forms, with changes in the market being the most common.

Consumer tastes change, and new entrants come into the marketplace. Robust savings grant companies time to understand the market changes and respond in a way to retain and attract new customers.  

New technology is another test that happens. Artificial intelligence is changing how business is done. Those companies that have the means to pursue new solutions are in a better position to expand and grow, whereas companies that have no means to enhance their technology solutions will be left behind.

Another test involves new and unexpected opportunities that come along a business least expects it. A company that focuses on growth will prepare its resources and finances so that they are can make bold moves that will propel the organization forward when opportunities present themselves.   

Robust savings give your business the ability to grow.

Good business leaders think about pivots and changes that need to happen in the business so it can continue to compete in any market situation. Companies need to know where to invest their resources to help the business function well.  Some purchases and investments can only be made in the business through years of savings. It is never wise to run out of resources before the task is complete.

Big companies work on big projects that only big companies can accomplish. For example, Elon Musk is leading his company to develop flying cars. The Disney company is developing its own streaming platform. 

Big companies stay big because they work on big projects. Companies that wish to be big should focus on bigger and longer projects. Most companies have no grander plan than to stay open that week. Even a small company can save money today for future growth.  

Robust savings give your company an advantage.  

Even in difficult economies, there are growing companies. Many companies grow significantly during difficult financial times because they have set aside the resources to not only survive but to expand as others falter. To purchase or acquire a company that is going through money issues can provide an excellent platform for growth. 

Companies that have a strong cash position can acquire a poorly performing competitor. Further, robust savings allow companies to acquire the best talent by matching or superseding what other companies are offering for that position. When companies put money toward the recruitment of the best talent, a message is sent that people matter.  The Container Store is an example of using profits for its people. They believe that one great employee is equal to three in terms of productivity, and they pay their employees well.

A third competitive advantage is that companies with robust savings can acquire product knowledge and intellectual property.  When companies focus on gathering the right products or the right intellectual knowledge, it can push the company to stay a leader in its field.   

Robust savings allow companies to give back to their communities.  

Many businesses have missed out on opportunities to give and bless others because they have to use all of their resources to stay afloat. Good companies work diligently to develop their brand generosity. By saving, companies give themselves a wonderful gift in the form of a significant impact on the communities where they operate. Remember, you can't give if you don't have. 

In his book Start Something That Matters, Blake Mycoskie, the founder and owner of TOMS Shoes, advises readers that the goal isn't how much money you make, but how much you help people. 

Companies that develop the habit of saving money will find many beneficial reasons for giving back a portion of their profits with a focus on the future.
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