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How Women-Owned Businesses Can Use Social Media Marketing

Posted: 31 Jan 2020 07:00 AM PST

Women have not always had the easiest path to enter the realm of entrepreneurship and gain economic independence. Fortunately, as innovations such as the internet increasingly become part of the fabric of society, these determined women have found success in business using social media. Women across every ethnic group and industry can learn from their phenomenal example and grow their own businesses with online tools.

If you want to grow your business, social media could be a key factor in your success. Here's what you need to know about how social media marketing can help women-owned businesses reach their key markets.

Women's entrepreneurship around the world

Women who have historically been discouraged from working outside the home or building independent businesses are beginning to find success by building microbusinesses that rely on online tools like social media. Indonesian women, in particular, rely on social media for attracting the attention of new customers – 63% of these enterprises used sites like Instagram and Facebook for promotion.

Women all over the world are beginning to realize their true potential, for a number of reasons. Social media allows female entrepreneurs to connect not only with other women who are building businesses, but with their ideal customers, who are often also women. [Read related article: 5 Feminine Traits That Make Leaders Great]

Because the internet has made entrepreneurship newly accessible for millions of women around the world, we're seeing a welcome surge in women-owned businesses globally. Last year, 163 million women became entrepreneurs and started businesses, causing the rate of entrepreneurship among women to go up 10%. While not all of these businesses will succeed over the long term, many women are creating sustainable enterprises that are continuing to grow.

Looking closer to home at the rates of women's entrepreneurship in the United States, it's easy to see that women are gradually stepping into their power as the culture shifts to be more inclusive. In 2018, women owned 12.2 million businesses. That's huge, especially when you consider that in 1972, only 402,000 U.S. businesses were owned by women.

How women use social media to grow their businesses

Social media is a key tool for many female entrepreneurs for a number of reasons. First of all, it's affordable. On some social media platforms, women can organically reach their target audience and find new clients or customers without paying for expensive ad campaigns.

Women are also using social media as a branding tool. By posting consistently and sharing everything from product photos to testimonials, female entrepreneurs know how to build trust and customer loyalty using social networking sites, often bypassing the need for expensive marketing campaigns. Brands like Flat Tummy Co, Thinx and Glossier have largely built their success with targeted marketing campaigns that feature real women and the struggles they face.

Savvy businesswomen know that social media can serve many purposes simultaneously – marketing, branding and even customer service. Here are just some of the ways you can use popular networking platforms to build your customer base and pilot your business to success:

  • Connection and engagement: Use social media to connect with your ideal customers. You can engage with them directly, solicit their feedback and get to know them.
  • Customer service: Social media gives you the opportunity to respond quickly to customers' complaints, questions and feedback. Good customer service over social media can sometimes even turn a bad situation into a good one.
  • Advertising: Many social media platforms offer inexpensive advertising options that can be very effective.
  • Branding: You can use social media to develop a voice and aesthetic for your brand through content like photos, videos and posts.
  • Research and data collection: In today's data-driven world, you can gain a competitive edge by using social media to gather customer data and research your competition.
  • Trend tracking: In marketing, it's important to keep up with trends. Hashtags, keywords and other trends are easy to monitor on social media.
  • Networking: You can use social media to find support and mentoring from other women.

Why you should create and stick to a plan

Nicole Antoinette Smith, assistant professor for Ohio University's online MBA program, said it's critical to lay out a plan for your social media marketing before you start. She named five main reasons a plan is important:

  1. You'll avoid making up strategies as you go along. With a plan in place at the beginning, you already know what to do first, next and last.
  2. You'll resist the urge to react drastically to every little thing. Inevitably, while marketing your business, you will have new ideas, exciting input from business partners and colleagues, or the desire to change or eliminate tactics that do not seem to be working. With a plan, you have a clear direction of what you wish to accomplish and how to get there so you do not have to entertain every idea presented to you. Of course, you should remain open to strategies that make obvious sense, but this does not mean you should interrupt your plan to immediately explore each new option.
  3. You'll develop the foundational reason to keep going when you want to quit. Your plan is the motivation you will need when times get tough and when it seems things are not working well. Refer to your plan often to remind yourself of your goals, strategies, measurements and anticipated results.
  4. You'll know your expected results. One of the most important aspects of your business marketing plan is the results you wish to accomplish. Make sure they are realistic and measurable.

Women who are most successful in using social media are those who use their platforms of choice consistently and have a clear strategy for each platform's role in their larger marketing strategy. Clearly outlining your actions and goals for social media marketing helps you measure your success and make changes as needed.

Tools of the trade

Women who use social media marketing in their businesses know that they have to be consistent with posting and engagement. Whether their audience uses Instagram, Facebook, Twitter or other platforms, most businesses eventually need to invest in a social media management tool.

Many, many scheduling and social media marketing management tools are available these days. They make it easier to keep track of all your business's accounts and offer features like content scheduling, analytics, and monitoring. The right tool for your business depends on which platforms you use, your customers' expectations and your specific needs.

These are some of the most popular social media management tools:

  • Hootsuite
  • Buffer
  • Sprout Social
  • MeetEdgar
  • Viraltag
  • SocialPilot

Although social media management tools often have a monthly cost, they're much cheaper than hiring someone to post for you on a regular basis and monitor your accounts. If you want to use social media to grow your business, you will need to look at the features of different management tools and choose the one that best suits your company's needs.

Networking with like-minded women for success

Women flourish when they support one another. That's one of the most powerful aspects of social media. Not only do these platforms allow female entrepreneurs to connect with female customers, but the sites can also allow them to connect with like-minded women they can learn from.

Building strong networks is key for women's professional success, as a network can provide valuable advice, word-of-mouth advertising and new opportunities. If you're looking to grow your network, particularly in women's leadership and marketing/advertising, the following organizations might be good places to start:

  • She Runs It: As an organization that has been promoting women's success and leadership for over 100 years, She Runs It offers networking events, workshops, mentoring and more.
  • The Advertising Club: This nonprofit is dedicated to educating and connecting advertising, marketing, and media professionals.
  • American Advertising Federation: This organization is dedicated to growth for advertising professionals at all levels.
  • Geena Davis Institute on Gender in Media: Founded by actress Geena Davis, this organization focuses on creating equal representation for women in media.

Leveraging social media to grow your business and become a leader

Even if you're starting your business from scratch as a one-woman operation, it's important to think of yourself as a leader from day one. There are so many wonderful online tools for women who want to grow their businesses and build an empire, but you need to think like a leader before you can be one.

Social media is a great way to promote your business and grow your network. It can also help you grow your personal brand and feel more confident in your professional accomplishments. If you leverage social media well, you could make a much bigger splash than you anticipated when you first started your business.

Step into the role of leader. Own it. For too long, women have had to fight against a glass ceiling for business success. That's finally starting to change, and it's time to celebrate by growing the business of your dreams.

What Is a Hard Money Loan?

Posted: 31 Jan 2020 05:40 AM PST

  • Hard money loans are a form of private lending that relies on a borrower's asset, typically real estate, as collateral.
  • It is easier and quicker to be approved for a hard money loan because private lenders are more flexible than conventional lenders, such as banks.
  • Hard money loans are generally expensive short-term loans with an interest rate of 8% to 15% and a maturity date of about 12 to 24 months from signing.
  • Failure to repay a hard money loan could result in foreclosure on the collateral asset or property.

Every business needs money to survive. Maintaining substantial cash flow is essential to continuing operations, while new acquisitions and improvements necessary to grow a business demand liquid capital. Businesses often turn to lenders for assistance, but what happens when conventional lenders reject your loan application or take too long for your needs? In those cases, hard money loans might be an option.

Hard money loans are a common type of financing in the world of private lenders. Private lenders are generally considered more flexible than conventional lenders and often willing to work with lower credit scores or more modest cash reserves. Private lenders also have the latitude to approve loans more quickly, helping your business get the money it needs faster. However, there are substantial risks associated with hard money loans as well, so understanding the pros and cons is essential before accepting any money from a private lender. 

 

Editor's note: Looking for a small business loan? Fill out the questionnaire below to have our vendor partners contact you about your needs.

 

What is a hard money loan?

A hard money loan is a type of financing based on the value of some collateral, generally real estate, offered up by the borrower. A private lender will offer a loan as a percentage of the asset's appraised value.

"What [a hard money loan] does is allows a company or individual to turn a real estate asset to cash, which they could use for any legal business purpose they desire," said Jon Hornik, chairman of the Private Lender Group. "It's a way to convert a hard asset into cash."

A major benefit of hard money loans is that they don't require the same underwriting criteria conventional lenders use. Conventional lenders, like banks, look at borrower credit score, debt-to-income ratio, revenue and more when reviewing a loan application. Although private lenders look at these elements as well, the value of the collateral is the overriding factor for hard money loans.

"The focus is mainly on the value of the asset," said Matt Cole, executive managing director at Silver Arch Capital Partners.

How do hard money loans work?

Hard money loans are short-term loans backed by a collateral asset, typically some form of real estate. They are funded by private investors rather than depositors at a banking institution. The fact that the money is privately funded gives lenders more leeway when determining which loans to approve and which to deny.

When you apply for a hard money loan, it's important to recognize that each private lender might have their own unique underwriting requirements. Two private lenders might handle a loan application in very different ways; however, a hard money loan generally always comes back to the value of the collateral asset. The borrower requests a percentage of the value of the collateral asset as a loan, which is known as the loan-to-value ratio.

Generally, lenders charge points (or 1% of the loan value each) that are due at the closing of the loan, as well as the principal and its interest. Depending on the terms of the loan, this can become quite expensive. Here's a breakdown to simplify it.

  • Points: If a lender offers you $100, they might also charge points that are due at the closing of the loan. In this case, one point is equal to $1. Points essentially act as a fee for the lender above and beyond the interest they will make on the loan. Generally, the more points due at closing, the lower the interest rate, though your private lender may be different.

  • Interest: Interest is the cost of money borrowed. You are required to pay interest throughout the life of your loan. When the loan reaches maturity, you will have paid back the principal value plus interest, as well as any points charged by the lender. So, if the lender offered you $100 at a rate of 10%, you would ultimately pay back $110 when the loan reached maturity. On top of that, if the lender charged you five points due at closing, you would pay back the $110 plus $5.

  • Principal: The principal is the amount initially owed. In this example, it is the $100. When the loan reaches maturity, borrowers must have paid back the principal amount borrowed along with the interest, as well as any points the lender charged.

So, what do the terms of a typical hard money loan look like?

"Hard money lenders typically charge between 8% and 15% interest, which may depend on the credit history and experience of the borrower," said Melanie Hartmann, owner of Creo Home Buyers. "The borrower's relationship with the lender may also have an impact on the interest rate. Additionally, hard money lenders typically charge points that can either be paid upfront or added to the principal balance of the loan."

Most hard money loans carry a 12-month term, but it's not unheard of to find a two- to five-year one.

Do hard money loans require a down payment?

Some private lenders do require a deposit upon signing. The amount is generally based on the risk profile of the deal, which includes the additional elements of a borrower's history, such as their credit score. The deposit could be 5% to 25% of the total value of the loan, Hornik said.

What are the pros and cons of hard money loans?

A hard money loan can provide a business with much-needed capital quickly and without the strict underwriting criteria required by conventional lenders. This means businesses, even those with mediocre credit scores, can generally get the cash they need more easily and quickly than if they applied through a conventional lender.

"Cash flow is like oxygen to businesses," Hornik said. "Without cash flow, you go down pretty quickly. The liquidity provided by private lenders is key in some cases to businesses' survival."

However, hard money loans mature quickly and bear high interest rates, making them very expensive if not paid back promptly.

"The terms and conditions associated with hard money loans usually entail high interest rates above 10%, high closing costs with many points, a draw schedule for completion of various phases of the construction, and oftentimes a prepayment penalty if the loan were to be paid off early," said David Reischer, a real estate attorney and CEO of LegalAdvice.com.

These terms make hard money loans particularly expensive and possibly restrictive. Since hard money loans are often used for short-term construction or rehabilitation projects, the lender has a vested interest in the "as-improved" value of the property. That means they might push you to meet strict deadlines for any projects.

Moreover, if you default on a hard money loan, the lender has the right to foreclose on your collateral property and sell it to cover your debt, even if you've already completed considerable work on the property. It is critical that you have a strategy to pay back a hard money loan and then execute that strategy flawlessly, Hornik said.

"One caution is … hard money loans have short maturity dates of one year or two years," Cole added. "A lot of times, borrowers look for a loan, close a loan and don't realize that the day after they close is when they should be working on how to pay off that loan. There's no time to waste. The expense of a hard money loan over a three- to four-year period will eat you up."

When should a business consider a hard money loan?

Since a hard money loan could end up costing you so much if you can't repay it within the short maturity window, why would you take one? There are good reasons businesses take hard money loans every day, and many are able to successfully pay them back without incident. Hard money loans and private lenders typically serve businesses that fall into at least one of these categories:

Can't get a conventional loan

Conventional lenders must abide by strict underwriting requirements. A mediocre credit score or poor debt-to-income ratio can preclude businesses from obtaining a loan. Banks also typically cap the number of loans they will give to one individual or business entity. Hard money loans could be a way to secure more funding when you already have multiple conventional loans.

"If you have less-than-stellar credit, then hard money loans are great because the underwriting is based on the asset, not your credit history," said Shawn Breyer, owner of Breyer Home Buyers. "Banks [also] limit the number of conventional loans that an individual can have at one time. Since hard money loans are not based on the individual, the number of loans is not restricted."

Private lenders offering hard money loans have more approval flexibility because the money comes from private investors. Businesses that can't get a conventional loan often seek out private lenders instead.

Need funding quickly

Plenty of businesses that are capable of landing a conventional loan still go to private lenders, because their application processes are much quicker.

"Most of the time with a hard money lender, you talk to a guy who, if he's not writing the check himself, is a decision-maker for a group of people who are," Cole said. "It cuts right to the chase." The typical conventional lender's approval process can take several months. Private lenders often approve funding within a few days.

Want a short-term loan

Hard money loans are useful for construction and rehabilitation projects as well as real estate acquisition. A short-term hard money loan for these purposes lets you use the property as collateral and clear the debt from your books quickly. For businesses that want a short-term or small-dollar loan, hard money loans are more effective than conventional lenders.

Advice for businesses accepting a hard money loan

Never accept any loan, especially a hard money loan, without doing your due diligence first. Failure to repay has steep consequences, particularly when your property is on the line. Defaulting on a hard money loan opens you up to foreclosure, so develop a plan and stick to it. Here's some advice from the experts on accepting a hard money loan:

1. Avoid prepayment penalties.

Steep prepayment penalties basically run counter to the idea of a short-term loan. Make sure to review the loan agreement for any clauses regarding prepayment penalties. If these penalties are excessive, stay away. Better yet, find a hard money loan that doesn't carry a prepayment penalty at all.

"The most critical thing to look for in a hard money loan is whether there is a severe and egregious prepayment penalty," Reischer said. "The goal of a hard money loan is to act as short-term financing. As such, if there is a severe prepayment penalty were the loan to be paid off early, then it is usually an attempt by a hard money lender to lock a borrower into a high interest rate for a long period of time or otherwise suffer a punitive penalty."

2. Understand the terms of the loan.

You should be clear on the key elements of the loan, including the interest rate, points (a fee of 1% of the loan value per point) the lender charges on the loan, and when you can make those payments (upfront or on top of the principal). Always be especially clear on the repayment schedule of the loan to avoid defaulting.

3. Plan ahead.

The best way to make a hard money loan work for you is to first plan how and when you will repay it. Ground that plan in the terms and conditions of the loan agreement. Make sure you have multiple ways to manage the loan in case unforeseen circumstances impact one of your strategies.

"Have multiple exit strategies planned before starting the project," said Cassie Villela, property manager for Silverbridge Realty. "For example, if a flipped home isn't selling by a certain date, it can be rented out and then refinanced into a conventional loan."

Hard money loans offer flexible financing at a steep cost

The benefits of a hard money loan are numerous for businesses that can't get a conventional loan, need capital quickly and want a short-term loan. However, their high cost and short maturity windows could prove problematic for businesses that are unprepared to repay quickly. Moreover, failure to repay the loan could result in foreclosure, even if you've performed significant work on the property. Hard money loans make sense for businesses that need fast capital or can't access other types of financing, but preparation is key to avoid the major pitfalls associated with this type of lending.

Always consult with an attorney and an accountant before accepting a loan. Maintaining relationships with knowledgeable professionals can help you protect your business from costly mistakes that could even result in closure. Never sign a loan agreement without the advice of these professionals and a clear-cut plan to pay back any borrowed money.

How CMS Is the Backbone of Content Marketing

Posted: 31 Jan 2020 05:00 AM PST

Content marketing forms the core of any business's digital marketing strategy. It's what makes your business visible online. It also drives traffic to your site and can create conversions.

The effectiveness of your SEO campaigns relies heavily on the content you create. Without great content in place, you're unlikely to see your business take off.

Content marketing is especially important if your business operates in part or fully online. Your content marketing strategy consists of a lot more than just creating and publishing blog posts. 

It can be complex and challenging, because you need to create and distribute content frequently. When you manage several content creation steps, as well as publish and distribute, it becomes essential to have a reliable content management system (CMS) in place.

A CMS does more than give you an easy way to publish content. It offers many ways to support your marketing activities and help you grow. Let's look at some powerful ways a CMS system can make your content marketing easier.

Anyone can contribute, edit and manage content

When creating a site, it's essential to build it on a platform that anyone can work on. Your content writers, editors and other employees may not know how to code. It can be time-consuming and frustrating to work on a platform where you need a developer's help every time you need to add content.  Choosing a CMS system makes sense, because anyone can learn to use it with a little effort.

A CMS allows multiple users to access the back-end where they can add content, edit it and manage any other changes. It can make your content team self-sufficient and productive. They'll be able to publish content quickly and easily.

Another key reason to set up a CMS is to enable guest posting. You can set up your business site to allow people from outside your organization to add guest posts to your site. A CMS platform allows guest bloggers to only contribute content without making other changes in the admin areas.

A CMS platform enables you and your team to create and manage your content with ease. It removes the need for technical knowledge and saves time.  

WYSIWYG editor

Your content needs to look good to keep readers on your site. Content that's unattractive and badly formatted won't be read. It's important to create content that's easy to read because more than 5.11 billion people today use mobile phones.

People read content and do research on their phones. Smaller screens are hard to navigate and can strain the eye. Also, people don't read but rather scan content for information. CMS platforms make it possible for you to create attractive content with WYSIWYG editors. You won't need to know HTML and CSS to create tables, make headlines or create bullet points. An editor lets you make content easy-to-to read by using smaller paragraphs, adding headlines and using formatting.

You'll know what your content looks like as you're typing it and will be able to make changes as needed.

CMS platforms also enable you to have a consistent look and feel for your content. WordPress has over 4,000 themes that you can choose from to create a well-designed site. You can ensure that your website looks good, no matter who adds content to it. 

Content engagement

Great content doesn't mean anything if people aren't interacting with it. It's important for your blog or site to have features that allow readers to leave comments. Comments enable you to get feedback and helpful information from your audience. They also show visitors on your site that you're engaging with people and listening to them.

You also boost engagement by enabling users to share your content. A CMS platform will have tools that let readers share content via email or social media with the click of a button.

Such features will make it possible for your content to have as much reach as possible. You'll also make people a part of your site experience by enabling engagement in different forms.

Easily build an online community

One of the earliest activities that any business needs to carry out is building an online community. It's where people have a specific place to interact with your business and with each other. Creating an online community has several benefits.

  • It creates brand loyalty
  • You get repeat purchases and more frequent buying from members
  • Members have a place to ask and answer each other's questions
  • You get more social media interactions from members who feel connected to your brand

Building an online community on a CMS platform is easy to do with membership site software. You can add a membership plugin to WordPress and set up an online forum, learning site or some other community-based platform.

An online community or membership site supports your content marketing by making people appreciate your content more. Exclusive content, such as videos, posts and downloadable material that's not available to the public, can appear more valuable. This encourages people to visit your site more often to engage with your brand. 

You'll be able to leverage your content to drive greater engagements, boost subscriptions and win more customers with a membership platform.

User management

Content marketing frequently involves multiple people or parties in carrying out its strategies. You have to allow content writers and guest bloggers to access your site's back-end to upload content. It can also be necessary for some other people to edit and flag posts.

You may want to place restrictions on the kind of content users can upload. Some blogs and websites prefer to place restrictions on aspects like word counts, images and backlinks.

You also need to protect your site so that unauthorized people don't make changes to your website that can affect its performance. It's good to be prepared for the chance that a well-meaning user or employee can make a significant mistake and bring your site down.

 A CMS platform will help you manage users' access to different parts of your site and enforce content requirements. It can support your content-creation activities without affecting the operation of your site. 

SEO readiness

Many CMS platforms either come with SEO features in their core software or allow you to integrate with SEO tools. SEO can be challenging to implement. Using a CMS to support your efforts can save time and money.

It's important to optimize your content to make it visible online and to appear as results for specific search terms.

A CMS platform with SEO configurations or integrations can prompt you to optimize your content and your site. For example, an SEO plugin for WordPress will prompt you to repeat a focus keyword in headings, alt-texts and in the body of your content. A CMS platform can make it easy to carry out SEO strategies even without having any expertise in the subject.

Analytics integration

A CMS platform can help you measure and improve your content marketing with the help of analytics and data. You need to understand how visitors are behaving on your site and how they found your content. 

Adding a tool like a Google Analytics plugin will give you valuable insight into how your content is performing. You'll identify the posts and pages that have high engagement and create the greatest number of backlinks. With such data, you can continue creating and leveraging content to boost traffic and grow your site.  

CMS: The backbone of your content marketing efforts

CMS is important for content marketing: It enables the content organization and streamlining. Your content marketing success depends on creating content regularly.

It can be hard to manage a vast quantity of posts, videos, images and other material. A CMS gives you a single platform for carrying out several activities.

You can compare and learn about CMS platforms to choose the best one for your business needs. The right platform will help you further your marketing efforts and support your business's growth.

The Key to Aligned Communication

Posted: 31 Jan 2020 04:00 AM PST

"The single biggest problem in communication is the illusion it has taken place." So wrote George Bernard Shaw, one of history's greatest communicators. It is estimated, for example, that during his long life the Irish writer penned no fewer than a quarter of a million letters, in addition to a staggeringly prolific literary and critical output.

Now, no one is asking you to be Shaw. Send that many emails and your team workers will most likely rise in revolt. But what is demanded is a meticulous, humane approach to communication, one that combines alignment and a very healthy give-and-take.

What is aligned communication?

What I call alignment comes from rigorous self-examination. Thus, the first person you have to lead is yourself. As a leader, you must ask yourself who you really are - in the present day, not who you were at the outset of your career. What is your dream? From there flow several other questions: What drives you? What are your values? Your strengths? Your weaknesses? Does your inner purpose dovetail with the purpose of your company? Incorporate the truthful answers to these questions into your outlook and you are well on your way to alignment.

Once confident of your personal and professional alignment, you can communicate to others your vision, inspiring them to follow your lead. The first task is to take care to express yourself clearly. This may seem self-evident, but there are examples of executives who do not do this, as if challenging team members to figure out what the boss is thinking. No one is able to divine your motives and ideas if you do not give voice to them.

Not that your ideas are the only ones out there. Far from it. Communication is not a raging torrent of strategies and opinions thundering down from the mountaintop. Again, no one is asking you to be George Bernard Shaw. Neither is communication the regular push-me-pull-you of the tides, where reaction immediately follows action. Rather it is more like a river, with multiple tributaries coming in and out at all times. And that river can be viewed as your company, where the input of your team members is solicited and valued, where you well and truly listen to what others have to offer, where you are all flowing to a collectively agreed-upon goal.

In my experience, some successful executives take care to be the last to speak, to hold their tongue until the conclusion of a meeting, to ensure that their opinion does not overshadow or influence the opinions of others. As one put it succinctly, "I have two ears and one mouth, so I spend much more time listening than speaking." These same aligned executives also take care to accentuate the positive, for the role of the leader is to spark positive energy and creativity. They banish from their body-language repertoire, for example, the elaborate eye-roll when someone suggests something outlandish. They know that today's outlandish might well turn into tomorrow's strategy. Marshall Goldsmith, the famous executive leadership coach, makes a similar point in a book entitled What Got You Here Won't Get You There.

In a word, times have changed. The old model of executives issuing top-down directives to be carried out by middle management no longer holds. The business world has changed: it is far more rapidly moving and volatile than in the past. Moreover, team members, especially millennials, do not like to be told what to do without sufficient explanation. They prize autonomy and meaning: they like to know why they are doing things and to feel valued.

Examples of aligned communication in business

A CEO brought in to turn around a failing retail chain seized on that insight. He initiated the company's redefinition by inviting every member of the executive team to share their "why" over dinner. Some time later, store managers and other field leaders were invited to do the same during an "all in - what drives you?" retreat. In most firms, executives and managers can and should take their place beside the front-liners, those on the shop floor, retail space, etc. A good first question? The same as for yourself. "What is your dream?" Their answer to this serves as a means to determine their own sense of purpose and, in the end, align that purpose with that of the company.

A breakthrough in communication within a company does not happen overnight. Trust must be built, candor rewarded. If, as a leader, all you get is sunny feedback, it is time to get skeptical and unearth what people might not be saying out loud. A classic example is a client of mine - no one understood what he was doing or why, but he decided he would share more, encourage collaboration and input, and listen. He called a meeting, communicated his strategy, and asked for collective feedback. "What do you think of the plan? Can we improve anything?" he asked. No one peeped, except to make vague acquiescing noises. "Everything is perfect!" he concluded. Without knowing it, he had come across what Shaw identified as the biggest problem in communication - the illusion that it has taken place.

He eventually realized that something was not right. So what did he do? He regrouped. He met with his top collaborators, one by one, and carefully took more time to explain his vision and purpose, and why he thought them beneficial to the company and its people. And he asked them a different question this time: "Where do we have problems?" He worked to convince his team that he was genuinely interested in their opinion and he made space to listen. The dam eventually broke. He got many suggestions and contributions, some of which pointed to problems he hadn't seen before. The discussions generated fresh approaches that improved his initial plan.

How this makes you a better leader

Besides sharing your vision and values to fire up those who can identify with them, effective communication means making it clear how everyone contributes to the collective sense of purpose. Getting your team to this point requires effort. Above all else, your company culture should cultivate what social scientists call "psychological safety" - a secure space and process devoid of the fear of ridicule or reprimand. Your team members should be able to speak their minds openly. They must know that their opinions and criticisms are valued. Google wholeheartedly agrees with this approach. For two years the company conducted a rigorous internal survey into what makes their teams most effective. The number one element? Feeling safe to take risks and be vulnerable in front of one another - in other words, psychological safety. The qualifications of those on the team turn out to be far less important than how the team interacts and communicate.

So the effective aligned leader should orchestrate this chorus of communication. It must be understood by all at the outset that the company does not function as a zero-sum game. No, when team members win, the leader wins. In your role of facilitator, you as a leader must encourage the success of others, and a good starting point for that is effective communication.

As with any other skill, becoming an effective communicator requires practice, commitment, patience, and trust. How well do you communicate? Is everyone around you clear on the "why," the "what," and the "how" of their role? When was the last time someone understood something different than what you intended in your communication?
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