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Is Asset-based Lending Right for Your Business?

Posted: 31 Oct 2019 03:00 PM PDT

Are you thinking of obtaining an asset-based loan for your business? Are you in the middle of working with your bank to move to their Asset-based lending group? Have you been wondering what asset-based lending is and how it can help your business? There's plenty to unpack and understand about asset-based lending and this article is meant to provide valuable insight.

What is asset-based lending?

Let's start with the basic logic behind asset-based lending. This is a practice that has been around for as long as lending has been an industry. It started with a simple advance of money based on a company's assets. The straightforward thinking for a lender is that if it thinks your company's assets are worth $100, they will feel comfortable advancing you up to that $100 secured by the company's assets. The key emphasis being on "up to" a certain amount of a company's assets.

So, what determines how much of an advance a company receives for its assets? Using the example of a company with $100 worth of assets, how will a lender decide if they should lend a company $50, $75 or $95? The short and unsatisfying answer is that there are a multitude of factors that will determine a lender's advance rate and the actual cash they provide to their borrowers. To simplify even further, the more liquid a company's assets, the higher the likelihood that an asset-based lender will provide more cash.

You've probably heard the term, it takes money to make money, and while we don't necessarily believe 100% in this statement there are some fundamental truths to it. Going back to our $100 in assets example. Let's say the company's main asset was all in the form of inventory. Your expected advance would be less than a company with $100 in accounts receivable on its balance sheet. The reason being that accounts receivables are closer and (crucial from a lender's perspective) more likely to turn into cash.

What are the pros and cons of asset-based lending?

Pros

There are many added benefits of pursuing and ultimately using an asset-based loan as a means to working capital. One of the main benefits of an asset-based loan is that the credit requirements and overall flexibility from a lender is much higher because a company pledges assets as a way to secure a loan. Usually lenders will look past credit history, underperforming, unprofitable businesses and other credit issues as long as a company has a strong asset pool. Companies that are going through a hiccup or "bump on the road" can use asset-based lending as a great way to obtain liquidity when they are in dire need of it.

Another benefit of an asset-based loan is that in some cases a company will have the ability to get maximum proceeds than with other types of loans. Further in this article we will cover in which scenarios and industries do companies benefit further from this type of loan.

One less direct benefit of being in an asset-based relationship is that generally most lenders will require consistent and frequent reporting in the form of weekly borrowing bases, or monthly reports that some companies may or may not have discipline with. Companies in an asset-based lending relationship tend to develop better practices with cash management and overall financial reporting. 

Cons

Although asset-based lending is a great tool for companies seeking additional liquidity, there are cons associated with going down this path. While lenders are constantly working to improve the customer experience, there is still a rather burdensome and time-consuming aspect of an asset-based lending relationship. This time consumption means that a company's finance department needs to be strong and capable of handling the reporting needs of an asset-based lending relationship. 

In addition, another less attractive feature of most asset-based loans is the supplementary monitoring needed from the lender to make sure that the collateral values assigned are maintained through the life of the loan. Lenders tend to require more field exams, audits and in certain cases appraisal updates as a way to manage their loan.

What types of assets are used to secure an asset-based loan?

Most asset-based lenders structure their loans with an advance on accounts receivable, which is a very liquid and desirable asset to lenders. This, however, doesn't mean that lenders don't make aggressive advances on other collateral types. Common asset-based loans include advances on inventory as well. There are a select group of asset-based lenders that also focus on lending on machinery and equipment, as well as real estate.

Over the years, there has been a rise in specialized asset-based lenders that focus on one particular type of collateral. These lenders are experts in their field and have an added appetite for specific collateral after years of lending to one particular type of asset. One additional collateral type that is less common is intellectual property. This particular asset is generally ignored by most lenders. There are just few instances where an asset-based lender would find comfort lending on intellectual property. One such instance is when there's a company with an established brand that an asset-based lender can find a specific value for the intellectual property through market research. 

What terms are offered with asset-based lending?

A typical asset-based loan is structured over a two or three year period. A grand majority of asset-based lenders seek to be more of a transitional credit provider. In most scenarios, asset-based lenders are coming into situations where the company they are lending money to is in the middle of a transition period. Because of this dynamic, terms and relationships with asset-based lenders tend to be on the shorter end. However, capital intensive businesses are great examples of a certain type of company that benefits from having an asset-based loan over the long term.

What type of businesses should use an asset-based loan?

Most types of businesses can benefit from using asset-based loans as a means to help with growth capital or general working capital. Small to medium sized businesses that are in a growth, turn around or acquisition mode can find great value with an asset-based loan. All companies with assets in their balance sheets that include accounts receivables, inventory or fixed assets should consider an asset-based loan as a viable financing option. There are exceptions for businesses that are not generally built for an asset-based loan. Such exceptions include businesses that use a recurring revenue model, companies that carry no assets on their balance because of the nature of their business and companies that are doing mostly cash related transactions.

What are the best industries for this program?

Industries with a capital-intensive nature tend to be a great fit for asset-based lending. If you're a distributor or a manufacturer, you're a "down the fairway" prospect for an asset-based lender. The stronger your collateral pool, the more attractive a lender will find a company's situation. A majority of industrial businesses thrive in asset-based loans. Businesses in industries with expected seasonality also benefit from the fluid aspect of an asset-based loan. Long-standing industries that paticipate in asset-based lending also include retail, apparel, staffing and business service companies that extend credit to their customers.  

What does the asset-based loan approval process look like?

The process of getting approved for an asset-based loan can take 30 to 90 days depending on the complexity of each business. On average, most underwriting processes for an asset-based loan last 30 to 45 days. During those 30 to 45 days an asset-based lender will conduct appraisals on any collateral they deem needs an examination in order to determine its value. This is usually followed or, in some cases, simultaneously run with an audit or field exam. A field exam typically takes place in the company's headquarters or where the company keeps their books and records. The goal of the underwriting and due diligence period is to give an asset-based lender as much insight into the company, its assets and their financial reporting. After field exams and appraisals are completed, the lender and the potential borrower enter the legal drafting of the loan document. A loan closing is accomplished when all parties come to an agreement on all terms on the loan and all parties execute a loan agreement.

In some cases, where there's a complex legal situation or out of the ordinary business structure, the underwriting process can extend beyond the usual time frame. SMB Compass has compiled the most common situations that tend to slow down the underwriting process:

  • When borrowers are not transparent with their potential lender on specific numbers, data or other information shared prior to due diligence.

  • The ability of a borrower to provide all necessary information and reporting needed by a lender in order to complete their due diligence.

  • Legal representation from the borrower's side that does not have experience with an asset-based lending relationship and loan documents.

  • Volatile and unpredictable changes to the business that cause the fundamental aspects of the initial deal structure to change. Some examples include loss of major customers, lawsuits and change in ownership. 

Overall, asset-based lending programs can be used for a variety of different situations and for all types of industries. Understanding the options and how they will impact your business is a crucial component in your search for financing. The best thing you can do before applying for an asset-based loan is to know who you are working with, if you have the assets to secure a loan and if it's the right solution for your business.

5 Tips to Reduce Friction on Your E-Commerce Website

Posted: 31 Oct 2019 08:00 AM PDT

If you want to increase conversions on your e-commerce site, you need to consider the user experience it provides to your visitors. It can be difficult enough to drive customers to the checkout page, and once they're there, there are a whole other set of complications to consider that could prevent them from purchasing your products. 

Without a smooth UX, customers will encounter points of friction that prevent them from finalizing their purchases. On average, there's a 68% shopping cart abandonment rate for e-commerce stores. Therefore, it's essential to reduce friction to ensure your customers make it through the checkout process so they keep coming back to your online store. 

Reducing friction makes it easier for visitors on your website to get from point A to point B. Anything that slows down browsing your website or makes it difficult to navigate causes friction. Eliminating these issues on your site is essential to reduce shopping cart abandonment, generate sales, grow your email list and improve conversions.

In this post, we're going to look at five ways you can reduce friction on your e-commerce website so you attract visitors and keep them there, including:

  • Increasing site speed
  • Offering several payment methods
  • Improving website design
  • Simplifying the sales process
  • Optimizing for mobile

Let's get started.

1. Increase site speed

Visitors can't browse your products, learn about your brand, or finalize a purchase if your website lags. Everyone has had the unfortunate experience of feeling eager to check out a website only to exit out because it takes too long to load. This is one of the most common occurrences of friction, which does nothing to help your business thrive.

Did you know that users will abandon a webpage that takes longer than three seconds to load? Positive first impressions impact how users interact with your site and determine whether they will spend time with your content. If your website lags, few will stick around to wait for it.

Regularly test your site speed so you're the first to know when lagging occurs. You may have to update specific webpages, optimize images or get rid of content that takes up too much space. Product pages, landing pages and sales pages may have high-resolution content that you need to compress to get faster loading results.

Editor's note: Looking for the right e-commerce website design service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

 

2. Offer multiple payment options

If you only offer a few payment options for your visitors, you automatically reduce sales and lose customers. People aren't going to go out of their way to buy from you if you don't first consider what they need. You create an extra pain point for consumers when you make it difficult for them to purchase your products. For this reason, your website should provide multiple payment options.

Consumers feel more comfortable when they see the payment option they're most used to. If they choose their items and head to checkout only to see they can't use their preferred payment method, they won't feel comfortable completing their purchase. It's crucial to lead customers where you want them to go and to make the process as simple as possible.

Consider the payment options you currently have for your customers. Could you add more to the mix? Have people complained in the past about your e-commerce store not accepting their preferred payment method? If so, it might be time to add more options to the checkout process and win those customers back. 

3. Improve website design

Your website's design should be so seamless that it feels natural for users to browse your website, find the content they're looking for and complete their purchases. If visitors have a difficult time finding answers to their questions or don't know how to navigate your webpages, you'll see an increase in your bounce rate and a decrease in your conversions.

For e-commerce websites especially, it's imperative to provide a smooth UX for visitors so they turn into paying customers who keep coming back. Your website should be clean, simple and minimalistic. Avoid squishing text together and implement whitespace so it's easy on the eyes. Use visual content to break up the monotony of text and prolong user engagement.

If you don't know where to start with your website's design, remember that simplicity is key. The easier it is for users to navigate your content, the higher your conversions will be.

Get rid of content that doesn't serve a greater purpose on your website. Are there links in your navigation bar that don't need to be there? Is your content so cluttered and distracting that users don't notice your CTAs? Are there too many images that distract from the purpose of the webpage? Imagine that you're browsing your website for the first time to identify what doesn't work for the average user.

4. Simplify the sales process

When consumers shop around on your website, they face several different decision-making opportunities. The more decisions they have to make, the closer they are to experiencing decision fatigue. If they feel overwhelmed, it's more challenging for them to complete their purchase and they may leave your site without taking action because they don't know what they want. This causes a higher abandoned cart rate.

Eliminate decision fatigue by reducing the options provided on your website. If you sell similar products on your website, do you need every single one? If one product fulfills the requirement of another, consider getting rid of one.

Group similar product items together so they're easier for customers to find. It also helps them browse other items they might want to add to their cart. Update your product descriptions and images so they're crystal clear, informative, and bring consumers closer to a buying decision.  

Review your contact forms to make sure they're user-friendly. A staggering 67% of visitors will abandon your form if they encounter any complications, so it's crucial to improve contact form conversions where you can. Avoid asking for unnecessary information during checkout. If you don't need it, don't ask for it, as this only prolongs the checkout process. 

5. Optimize for mobile

As more consumers use their smartphones to shop and make purchases, it becomes increasingly important to cater to mobile users. More than half of all online traffic comes from mobile devices, yet only 12% of consumers find shopping on mobile convenient. Improving the UX for mobile users is crucial to grow your brand and attract more customers.

Use a mobile site speed tool to test your website's performance on mobile devices regularly. That way, you can work to improve it before it loses your business conversions and revenue.

Avoid popups and sidebar navigation on mobile. They're both difficult to deal with on a smaller, condensed screen and hinder users from exploring every section of your site. Keep the most important components above the fold, or in the top quadrant of the webpage. Your CTA should be easy to locate and send a direct message that users can't ignore. 

Make it easier for mobile shoppers to purchase your products by keeping their shopping carts visible at all times. Provide one-step checkout buttons so they don't have to enter their information repeatedly. You can also offer a guest checkout option so new customers don't have to create an account if they don't want to.

Over to you

To achieve your e-commerce business goals, it's crucial to cater to your customers and improve their experience on your site. Without an optimized website, it's frustrating for consumers to browse, learn and purchase. You can increase sales and generate leads by reducing friction and creating a pleasant experience for online shoppers.

How to Improve the Cybersecurity of Your Business

Posted: 31 Oct 2019 06:00 AM PDT

If you take a look at the surveys and reports from the last decade, you'll certainly see a growing trend. Almost all companies, regardless of industry, are very worried about their digital security. That's no surprise once you learn that U.S. companies experienced 1,244 data breaches that exposed 446.5 million records in 2018 alone. The danger of being attacked is always there: it's estimated that a hacker tries to break into a computer every 39 seconds on average.

That's why businesses have security at the top of their concerns, and why you should too. Considering the issue seriously is the first step towards implementing a strong security strategy that keeps you protected.

Installing firewalls and antivirus software and hiring QA services to identify bugs in your systems isn't enough anymore. When it comes to cybersecurity, you need to bring your A-game. Here are five ways you can improve your business's cybersecurity.

1. Update and patch everything in your systems

One of the most basic things you can do to limit the risks of an attack is to always use the latest versions of the software you have installed on your systems. That includes every application you use on desktop computers, laptops and mobile devices, as well as the operating system each one of them is running.

This seems like a simple task, yet things can get tricky if you have tailor-made software and/or the size of your digital environment is considerable. On one hand, customized software needs a specific development team to take care of it. That team needs to include QA development services in what it offers, as you'll need not just to add new features but also to patch up any bugs that might have been ignored or the ones that might appear when you develop an update.

On the other hand, the size of your digital environment matters because it might take considerable time to deploy updates for a large number of devices. Imagine that you have hundreds of devices with several applications each waiting to be updated. Your IT department needs to find the right time to apply the updates while staying on top of their other responsibilities.

2. Encrypt the data you handle

All digital systems manage some sort of sensitive data. It might be information about your customers, your employees or your own business plans. That's why you need to take every measure you can to ensure that information is protected against malicious agents. That means that, aside from QA development, you'll also need help from cybersecurity experts to make sure all data is encrypted.

Why should you get specialized help if you can simply use one of the full-encryption tools already available in many operating systems? While it can't hurt for you to activate it, these solutions are broader and depend on a third-party provider to be updated. Thus, your data won't be as protected as if you decide to develop your own solution to fit the specific needs that arise from your workflow.

You can even consider using blockchain for your internal network since the digital ledger uses hash codes to encrypt every transaction that happens within its blocks.  

3. Mount zero trust networks

Since we're talking about secure networks, there's an already-proven model that can help you increase the security of yours. We're talking about zero trust networks. These identify every network user and verify each device before granting any kind of access. The great thing about this kind of network is that it applies its security protocols regardless of the location the user is trying to access the system from.

Zero trust networks only allow authorized users to access the specific areas of the system that system administrators have granted them permission to use. This reduces the number of potential attacks while also giving you control to track and trace all attempts from unauthorized users, as well as all unusual activities and patterns that can help you identify malicious actions.

4. Keep tight control over your information transfer

Bring Your Own Devices (BYOD) is a common practice that allows employees to use their personal devices for work. The goal behind this is to allow workers to do their daily tasks with devices they feel comfortable with. However, BYOD can end up being disastrous for companies, as those devices can contain login information, business documents and other sensitive data that could fall into the wrong hands if the device is lost, misplaced or stolen.

If you have a BYOD policy, it's up to you to keep an eye on that practice and ensure that any employee using it does so responsibly. You can increase your cybersecurity by moving your services to the cloud, so all the information is stored online and not kept in those devices. That way, you'd only have to worry about securing the login information rather than the whole ecosystem.

5. Teach your employees about secure practices

All of the above steps aren't enough to secure your system. You can't expect cybersecurity software to take care of everything, especially because up to 90% of breaches are caused by human error. To ensure that your business is as protected as possible, you must train your employees in everything security-related. 

Your training program has to be as comprehensive as possible. Don't assume that basic security tips and topics are common sense. Start with the essentials and build up from there. Also, be sure that all the people that use your company systems participate in the training, regardless of the positions they hold within your organization. It takes just one wrong habit to open a door that lets hackers into your system.

Finally, remember that this sort of training can't ever be considered finished. As new security features, tools and threats appear, you'll have to teach them to your staff. Of course, the first stages of the training will be the most thorough while the following stages will be more about updating your staff on specific topics and tasks. 

Final words

You can't take the cybersecurity of your business lightly. One mistake can cost you dearly, both in terms of money and reputation. Fortunately, there are things you can do right now to improve the way you protect your systems. From working with a QA development firm to patch up your custom-made applications to adhering to new security practices for all your staff, you can improve your defenses.

All of the suggestions above might feel basic for security experts but that's the whole point. These are the starting blocks for building better cybersecurity measures for your company. Once you've got these points covered, you should meet with an IT team to devise more sophisticated ways to increase your protection.

How Leaders Can Foster Human Connection to Drive Inclusivity

Posted: 31 Oct 2019 06:00 AM PDT

In my more than three decades working in the software industry, I've had the privilege of watching an industry transform. From the dot-com boom to the rise of cloud computing, major evolutions in technology have had a meaningful impact on our lives, both at work and at home.

What's equally important, though less visible day to day, is how the tech industry is changing behind the scenes, and that includes in the area of diversity and inclusion. As a woman in tech, I can say we've made great strides the last few decades as it relates to D&I, but we still have a long way to go.

In what was formerly a male-dominated industry, women now make up 53% of initial hires. Despite this progress, according to a recent study from the National Center for Women & Information Technology, women in tech are abandoning their careers at a steep rate. Today, more than half of women (56%) leave tech at the "midlevel" point – twice the exit rate for men. And many of them aren't leaving for other interests or to build a family. In fact, the vast majority of women who leave tech careers (80%) report staying in the workforce, and half continue to use their technical skills elsewhere, suggesting culture and opportunity are driving departure.

In fact, women ages 25 to 34, a group reporting "greater dissatisfaction" with tech career prospects, specifically point to unsupportive work environments and a lack of inspiring role models as barriers to their workplace satisfaction. This is a huge obstacle not only for individual companies, but also for the larger tech industry and its desire for holistic innovation that appeals to all kinds of people.

While diversity in tech goes far beyond gender, these stats reveal areas for improvement as we look to the future, and inclusivity is just as important as workforce diversity in tech. When people feel supported and included, they thrive. As the managing director of Sage North America, it's my responsibility to ensure that colleagues – regardless of age, gender, race, religion, ethnicity or sexual orientation – feel supported and free to bring their authentic selves to work every day.

Over the course of my career in tech, I have found that the keys to success boil down to one basic principle: human connection. Following are three tips for company leaders in tech or any other industry who are looking to build supportive, inclusive work environments for the benefit of underrepresented groups.

1. Commit to diversity and inclusion.

D&I isn't just the percentage of a company that's rooted in a minority – it's a mindset and, more importantly, a value set that needs to be woven into the DNA of a brand. As a first step to fostering a positive work environment, make D&I a pillar of your organization: Publicly commit to ensuring that all members of your organization feel valued, heard and celebrated.

This is an increasingly important part of today's workforce. In fact, a Sage D&I study done across 50 senior executives from Microsoft, Google, UPS, VMware, Amazon and others found that nearly 54% of respondents believe it is necessary to have more internal and external resources to support D&I efforts, as well as increased employee participation and communication of progress. This requires including C-suite executives and employees of all levels in the process, and subsequently providing the opportunity to offer up a variety of initiatives they feel connected to.

To start, I recommend conducting an internal survey to gauge current sentiment. Use the findings as a jumping-off point from which you can benchmark your progress. In my experience, promoting intentional dialogue within your department or team to openly discusses challenges in the workplace becomes a lot easier when it's backed by intel. As a leader, you should do your best to understand your colleagues' unique and diverse perspectives while supporting these initiatives. This kind of initiative also kick-starts a more formalized process that allows employees to understand the overarching D&I direction of the company, setting the stage for upcoming changes.

You could also host casual roundtable lunches where small groups come to talk about their experiences, inviting participants from across the organization who can offer different perspectives – spanning different genders, races, ethnicities and even amounts of experience. This is another excellent way to drive honest, open conversation. It's important that all of these colleagues are aligned in creating workplace opportunity for everyone and in feeling they have a uniquely safe space (outside of the office) to discuss anything they feel can be improved upon.

When mapping out a strategy, don't hesitate to contact others in your network for guidance. There may be outside learnings you can apply as you bring your community together in your own program.

2. Facilitate meaningful employee connections.

Employees seeking support in the workplace can gain a great deal from participating in social activities – not only through face time with role models and mentors, but also by connecting with their peers. Peer connections offer the building blocks of a strong professional network – social capital that will prove invaluable throughout an employee's career growth – while also providing a foundation of support through day-to-day camaraderie. 

As a leader, you should advocate for opportunities for your team to meet as many colleagues as possible to broaden and diversify their personal connections. Create company-sponsored events, from structured mentorship programs and formal workshops to casual happy hours and events outside of the office. Team events that foster connections benefit workers through career-building while also promoting a sense of workplace belonging, no matter their gender, age or background. No professional success or milestone can replace that sense of personal happiness in the workplace – an aspect often highlighted and demanded by millennials and younger generations. [Read related article: The Secrets to Building a Winning Team Culture for Your Business]

3. Don't underestimate the importance of mentorship.

When done right, mentor programs benefit everyone involved. Organizations report benefiting from higher employee engagement and retention (50%) and supporting the growth of high-potential employees (46%). Meanwhile, mentees gain professional development (36%) and a better understanding of organizational culture (30%), and mentors benefit from developing new perspectives (59%) and leadership skills (49%).

For underrepresented groups, mentorship presents an important opportunity to promote internal visibility, especially if mentors become sponsors. Mentors start as confidants who provide guidance but can later evolve to act as a sponsor, actively advocating on a colleague's behalf from their seat at the table. Sponsorship has the potential to break the patterns of bias within an organization, helping a greater number of women and other underrepresented groups get to the top. [Read related article: 3 Mentoring Relationships That Matter the Most for Women]

By committing to diversity and inclusion, encouraging employee connection, and fostering mentorship and sponsorship, leaders can do their part to power inclusive workplaces that leave every member of their organization – no matter their age, gender, religion, economic background, skin color or ethnicity – feeling valued and capable of achieving success at work. As business leaders in tech and beyond, we must make great strides toward inclusivity or risk losing valuable talent – talent that has the potential to speak up, challenge the status quo and spearhead impactful changes within an organization. If organizations put D&I at the top of their agendas, I am confident that we will make great progress.

How to Engage in the business.com Community

Posted: 31 Oct 2019 05:25 AM PDT

During the last several years, the business.com community has evolved into an immersive virtual space connecting more than 198,000 small business (or SMB) professionals. Our community is all too familiar with the fact that business professionals must dig for answers to their specific questions. The helpful and unique information they need isn't available just anywhere.

The business.com community provides relevant and trustworthy information to small business owners. That's because we went directly to the source for that information: successful small business professionals. Requesting advice from seasoned SMB professionals, who have themselves been in the shoes of many of our members, is the most efficient way to get to the truth.

The business.com community is made up of real people with a wide variety of backgrounds, skills, interests and stories to share. We like to believe that we can help you find an answer to any question you may have. There are steps you can take to maximize your time within that community. Follow these 10 tips to get the most out of our community.

1. Familiarize yourself with features.

Explore. Clicking around the various portals within the business.com community will unveil things that interest you and possibly features you've never seen before. So, once you sign up, take a minute to check out a few things before you drop a question in the forums. 

  • Search the Expert Advice archives. Poke around our Expert Advice Q&A boards and you may find questions asked and answered by the business.com community that overlap with your own question.
  • Use the direct messaging tool. If you find a post that answers your question, you can reach out to the community member who provided the best advice by clicking on their profile and sending them a direct message.
  • Search our collection of articles. By browsing the collection of business.com exclusive content, you may find an entire article about your question. Our articles come from SMB expert community members or from our in-house editorial team.
  • Become an expert contributor. Our contributor program is free to community members and reserved for experts in the small and midsize business environment.

2. Complete your community profile.

Members who take the time to complete their community profile tend to receive higher engagement on their posts. The single most important thing you can do is upload a profile picture. Users are more likely to respond to a welcoming and friendly face. You should also include information about your professional background, your business or company, your geographic location and other key details so that others can take context clues to answer your question appropriately.

3. Learn by example.

Check out the most answered questions on our Q&A boards. This will give you a good idea of what types of posts see success and what you might want to avoid. After browsing various threads, you will notice that the most popular question posts have these things in common:

  • They are posted in the appropriate categories. Choosing the correct category and subcategory for your question will help ensure that the right people see and respond to it. It's important to think about what category your question should appear in, not just what industry your company belongs to. For example, you might be a technology-based company asking a question about invoicing software. To get the most informed answers, you'll want to post your question in the Finance and Money category rather than in the Technology and Multimedia category. Other categories you can post in are Management and Operations, Marketing, and General.
  • They are clear and concise yet informative. Provide enough detail to allow our experts to appropriately answer your question. Keep in mind that other members have no insight into your company's background or history. By providing key details about your situation, you increase your chances of receiving a helpful response. For example, if you are asking how to best market your company, you will want to include what your company does, information about your current client base, what you have already tried, who your target audience is, etc.
  • They use appropriate formatting and grammar. Posts that receive traction are easy to understand, include a description of at least 120 characters and use appropriate paragraph breaks every 2-5 sentences. The submission is split into two sections: question and description. The question portion should be phrased as a query and end with a question mark. It should be specific and succinct. The description lets you provide experts with enough detail to answer completely. Before you post, proofread your question and description for appropriate grammar and spelling. Grammatically correct questions also show the business.com team that you took the time to contribute thoughtful content, and we will be more likely to promote your question.
  • They use strategic wording. By using search-friendly keywords in your post, you increase its visibility. That's because other users will search the Q&As by keyword. For the same reason, leave out words or abbreviations that are specific to your company. Can't decide between two words or phrases? Check out Google Trends. There you can search a phrase like "quarterly report" and compare the search density on Google with "financial results." If it does well on Google, it's likely to also rank well on business.com.

4. Understand and follow the guidelines.

The business.com community is specifically designed for small business professionals and service providers. We are not the destination to talk about religion, politics or the latest fashion. If you post a question that falls outside the realm of business, it is likely to be left unanswered or even removed by community moderators.

The community guidelines are in place to keep our Q&A boards focused, clean and valuable to our users. Following the guidelines will help your question gain more engagement and solicit legitimate advice. A good question meets the following requirements:

  • Do ask a question with a significant detail.
  • Do ask a business-related question.
  • Do ask an open-ended question.
  • Don't post a hiring inquiry.
  • Don't ask the same question twice. 
  • Don't be overly self-promotional.

5. Know the best time to post.

There is no golden answer to "when is the best time to post this question?" But there are certain times of day and days of the week that result in more engagement from followers. These are some trends we've noticed:

  • Activity is at its highest at the very beginning and very end of every month.
  • Activity is at its highest during typical North American work hours (9 a.m. to 5 p.m.).
  • Most questions are posted on Tuesdays.
  • Most questions are answered on Thursdays.
  • Saturdays, Sundays and holidays have the lowest engagement.

A good way to ensure your post is receiving the highest possible visibility is to share it on your social feeds. To make that easier for you, we've included buttons on almost every community-based feature that allow you to share content to your connected LinkedIn, Facebook and Twitter feeds with just one click.

6. Engage with other posts besides your own.

To increase your overall visibility, it is important to actively participate in discussion threads other than your own. Each answer or comment that you leave on the discussion boards links back to and is tracked within your community profile. You might even earn a badge or two along the way. 

If another user explores your profile and clicks on your Activity tab, you'll want it to reflect your level or participation and loyalty to the community. The more your name and avatar appear on the Q&A boards, the more familiar you become to other members, which ultimately entices others to join in on your discussions.

Plus, if you are signed up with an Expert account, higher levels of engagement will boost your ranking in our Expert Search directory.

7. Respond to any and all advice you receive.

Respond to all feedback and advice that community members leave on your posts, even if it is not the exact answer you wanted. That little profile icon next to each answer is a real person who took time out of their day to share their expertise. By responding, you are showing your appreciation for their insight, increasing your chances of hearing from them again and making them feel heard. It will help you build a relationship with that member should you ever need to reach out for additional support.

By acknowledging members on your thread, you create a welcoming environment and encourage other members to join in on the discussion. The business.com community features upvoting (and downvoting) for any responses. When you click the thumbs-up, you've quickly and easily acknowledged someone's feedback. When you upvote an answer or a comment, it will move higher up on the thread, which is a great way to show your support for those who helped you.

8. Always be respectful.

If the internet has taught us anything, it's that people disagree. Differing opinions can lead to a flare of emotions. The great thing about the Q&A boards on business.com is that there are no right or wrong answers. Every user responds with their personal experiences and insights, which helps show a wide variety of perspectives. But that doesn't mean just anything goes.

As in all things, treat others as you wish to be treated. Be polite and respect others' opinions, even if you disagree. Community members post questions to seek advice from people all over the world, from various backgrounds and different experiences, because their issues are unique and deserve original thought to find the right answer.

Our community manager does moderate the discussions, but that doesn't mean they are in all threads at the same time. If you notice anything that is clearly inappropriate, please flag it for the community manager using the Report button, which is on the lower right side of any post.

It is very common for a member to seek the support of the community when they are experiencing a frustrating, troublesome or upsetting experience professionally. While the business.com community is a great resource for seeking advice, we ask that you leave out any bashing, negativity and trash talk regarding any third parties that might be involved.

9. Understand who to contact for help.

While we strive to be as user-friendly as humanly possible, sometimes technology breaks. Should you run into any technical issues or have any questions about our program, you can rely on our community manager. It's as easy as clicking on that person's profile and using the direct messaging tool to contact them. We also encourage you to message them if you're simply looking for tips and tricks on how to best use the community.

Alternatively, you can send an email to community@business.com. This is the appropriate route to take if you are experiencing a technical issue that might require sharing screenshots. The direct messaging tool does not support image sharing.

10. Think of the business.com community like your own online professional neighborhood.   

There's something for everyone, from mom-and-pop shops on Main Street to large corporations with headquarters in every major city, in our community. Take it from our CEO, Doug Llewellyn:

"Our mission is to help the owners of small and medium-sized businesses grow and thrive, but we think 'small' is a misnomer. Entrepreneurs today need to think big, and yet often they just don't have the big budgets or extensive personal networks to get it done. That's why so many people rely on our vibrant community of business owners, marketers, and sales specialists to connect them to the right experts, the right resources, and the right opportunities. By serving as a small business decision engine, we can empower these businesses to succeed and help rebuild Main Street."
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