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5 Important Qualities to Look for When Hiring Remote Workers

Posted: 24 Jul 2020 08:26 AM PDT

By Megan Grant

If you're a solopreneur looking to scale your business up, there's one surefire way to get there: hire. And you don't have to worry about paying rent for an office or bringing people in-house. Remote workers will be more than enough.

Building a virtual team has been integral in growing my business to five figures a month. Along the way, I learned a thing or two about what to look for.

Keep reading for five qualities you want in your remote workers.

5 qualities to look for in remote workers

1. They're proactive, not reactive

You need people who are going to take action and take the initiative to come to you when it's appropriate. This may include when:

  • They're running into a technical issue.
  • They need guidance or clarification.
  • They have a suggestion for how the processes could be improved.

Here's an example of what you want to avoid. One day, I was checking the social media posts that someone on my team had scheduled out. As I was doing so, I discovered that our social media management tool was experiencing a bug, which was affecting the appearance of our posts.

I reached out to my remote worker and asked if she had noticed this issue. Her response? "Oh yeah, I did!"

… And?

Ideally, she should have come to me to report the problem so that I could address it and she could complete her work as expected. Instead, I had to redo her work on the spot so the posts could be finalized.

When you're interviewing and hiring remote workers, look for people who come across as slightly more aggressive and outspoken. In my experience, these are the people who tend to be more proactive.

2. They're receptive to feedback

You hire people to make your life easier and to boost your business. When you offer them feedback and constructive criticism, they should respond in a positive, open-minded manner. Furthermore, they should use these comments to improve their skills in the future.

So, if you offer a virtual worker constructive criticism and then see they don't apply it in new assignments, something's off. No one should be making the same mistakes over and over again.

Additionally, keep in mind the added cost of team members who won't get on board with feedback. When you pay someone to complete an assignment, and then you have to spend extra time fixing their work, it sucks up not just your hours but your budget as well.

None of this is to say that you should expect perfection, because you shouldn't. However, if a remote worker ignores feedback, gets defensive, or doesn't use criticism to better their skills, they might not be the right fit for your team.

3. They're trainable and open to learning

This is somewhat of an extension of the previous point, but it deserves its own shout-out.

You and your business are going to grow and evolve over time. This means you need to be willing to adapt and change—as do your remote workers. If they're not, then they're not going to be able to keep up with you for very long.

As an example, if you're got a writer who creates high-quality blogs but refuses to keep their finger on the pulse of ever-changing SEO practices, then how will they be able to continue producing high-quality content?

They probably won't.

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4. They communicate in a timely manner

When you're not all in an office together, communication can get tricky—and slow. Instead of simply walking to the room or cubicle a few feet away, you send emails, shoot over Slack messages, or maybe make a quick call.

But there's no guarantee of when you'll get a response.

I quickly learned that the willingness and ability to communicate in a timely manner was an important quality to have in my remote workers. Should you expect an immediate response? No. But emails that go unanswered for days and Slack messages that are never returned—that's unacceptable.

And depending on the line of business you're in or the specific role a worker is filling, quick communication could be absolutely vital to the survival and success of your company.

For example, a customer service or social media person needs to be responding to posts, comments, and inquiries quickly. They also need to be responding to you quickly, as the work they do is so time-sensitive. There's very little (or no) time to sit around and wait to hear back from them, plain and simple.

5. You like them

I feel like I might get some flak for this one, but allow me a moment to defend my position.

You might be thinking if someone is good enough at what they do, it doesn't matter how much or how little you like them as a human being. I used to think the same … until I hired someone I couldn't stand.

She was great at what she did, I'll happily admit, which presented somewhat of a dilemma for me. Do I hang on to her because she's skilled, regardless of my other opinions of her?

I could have, but she was negative, complained excessively, and was passive-aggressive toward me. I didn't enjoy communicating with her or working with her in any capacity, and I eventually let her go. It ended up being a huge load off my shoulders.

You can absolutely find people out there who are incredible at what they do and a joy to work with—I promise you.

But you know what? It's also okay to hire someone who's maybe just decent at what they do but has an unforgettable attitude. If they're trainable and open to learning (see point number three), then you can help them grow into their role.

Teaching someone to be more pleasant to work with, on the other hand, isn't nearly as easy.

Just like anything else, hiring and training remote workers comes with a learning curve. Look for candidates who are proactive, receptive to feedback, open to learning, quick to communicate with you, and pleasant to work with. If you can do that, you're bound to build a team that will help you take your business to the next level.

RELATED: 9 Ways to Manage Your Remote Workers Easily and Effectively

About the Author

Post by: Megan Grant

Megan Grant is the owner of Revenue Spark Digital Marketing. She also teaches freelancers how to build their own businesses.

Company: Revenue Spark Digital Marketing
Website: www.megangrant.net
Connect with me on Facebook, Twitter, and LinkedIn.

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Using This Effective Psychological Trigger in Your Marketing Can Boost Sales Like Crazy

Posted: 24 Jul 2020 08:17 AM PDT

By Syed Balkhi

Are you wondering how to use FOMO in your marketing? Or maybe you're just wondering what FOMO actually is?

FOMO stands for the "fear of missing out." It's the feeling that other people are enjoying experiences—and you're not. And in the case of a business selling a product or service, FOMO can make shoppers feel like they're missing out on an experience that other shoppers are having if they haven't bought it.

FOMO is a powerful feeling and it drives action. In fact, according to statistics, 60% of people make purchases because of FOMO, mostly within 24 hours. So, if you're able to use FOMO as a psychological trigger in your marketing, it can help boost your sales.

Now that you know why FOMO is a powerful strategy for increasing revenue, here's how to use FOMO in your marketing.

Create urgency

Because FOMO is all about being afraid of missing out on something, you need to create urgency. When you use urgency in your marketing, users will be more likely to take action quickly. This means shoppers will be more likely to make a purchase in order to avoid missing out on an awesome opportunity. For instance, think about an event company promoting an upcoming concert. They may say things like, "Tickets are selling out fast!" so people rush to buy a ticket before it's too late. Your business can use urgency in a similar way to boost sales.

For example, you can create a limited-time sale. Then to promote the sale, in your email marketing campaigns, social media posts, and on your website, you can use phrases like "Don't miss out!" "While supplies last!" and "One day only!" to create a sense of urgency. You can even add a countdown timer to your website or emails to show shoppers they only have a few hours left until the sale ends.

Another way to create urgency is by offering free shipping or a free gift with purchase for a limited time. When you create a sense of urgency, you'll have shoppers rushing to the checkout.

Show that people are buying

If you want to boost sales, show off that other people are buying from you. When consumers see others buying your product, it will make them to want to get their hands on the product, too.

You can do this by displaying how many customers have bought your product or used your service. McDonald's famously does this with its restaurant signs that say "Over 99 Billion Served" or "Billions and Billions Served."

You can also show how many items you have left in stock, which creates FOMO and scarcity. When a shopper sees there is only a small number of an item left in stock, they'll add it to their cart quickly to ensure they can nab it.

Even better—show real-time stats on your website. While users are browsing your site, a recent sales pop-up app can show that other people are buying items from your online store. Not only will a sales pop-up help boost sales, but it will allow you to display social proof and increase trust with your audience, which will help you generate more revenue in the long run.

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Display user-generated content

Sharing user-generated content, such as images or videos, is one of the easiest ways to show off the awesome experiences of your happy customers, build social proof, and create a feeling of FOMO. Post the content on your company's social media accounts or website.

For instance, when someone posts a selfie featuring their morning cup of coffee from Starbucks, that's user-generated content for Starbucks. Starbucks can share that user-generated content on its own platform to show followers that other people are enjoying their goods. And when their followers see other people enjoying their products, it makes them want to head to their nearest Starbucks, too.

Wondering how to get user-generated content? It's actually not that difficult. Most of your loyal customers will be happy to take a quick photo if you just ask them. Simply create a social media post or conduct an email marketing campaign where you ask your customers for user-generated content. Don't forget to encourage your audience to share their content online with a branded hashtag. This will make it easier for your business and your audience to discover user-generated content on social media.

Another great way to get more user-generated content is by running a contest. For instance, you could run a photo contest to get people to create and submit user-generated content. If your contest has an awesome prize, people will be more likely to take the time to create user-generated content for your business.

Use exclusivity

Consumers love feeling like they're getting something special or like they're part of an exclusive club. To avoid experiencing FOMO, tons of shoppers will act on exclusive invitations and offers. It's the reason why people are willing to spend more money on VIP tickets to a concert or other event. So how can your business create a feeling of exclusivity?

There are a number of ways you can use exclusivity. For instance, you could create a loyalty rewards program similar to Sephora's. Sephora's Beauty Insider Program rewards VIP shoppers with points, free gifts, early access to products, and other benefits. You can create a similar VIP program where the more shoppers spend at your business, the more exclusive rewards (like discounts) they can unlock.

You can also create a members-only Facebook group. In this private Facebook group, members can get access to upcoming deals and events first. Using exclusivity in your FOMO marketing will not only help you boost your sales, but it will also help you develop customer loyalty.

FOMO isn't about making your audience feel sad or jealous; it's about encouraging them to take action before they miss out. Follow these tips and boost your sales like crazy.

RELATED: 5 Small Business Marketing Mistakes You Can't Afford to Make

About the Author

Post by: Syed Balkhi

Syed Balkhi is the founder of WPBeginner, the largest free WordPress resource site. With over 10 years of experience, he's the leading WordPress expert in the industry. You can learn more about Syed and his portfolio of companies by following him on his social media networks.

Company: WPBeginner
Website: www.wpbeginner.com
Connect with me on Facebook, Twitter, and LinkedIn.

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Is Now a Good Time to Apply for a Business Line of Credit?

Posted: 24 Jul 2020 08:04 AM PDT

For many small business owners, business is tighter than usual right now. The coronavirus has left many businesses without their normal influx of customers, which threatens cash flow.

At times like these, wouldn't it be nice if you had a stash of cash to fall back on? Some lucky business owners do—those who have a business line of credit. But too many small business owners are so determined to avoid debt, they don't even consider applying for a line of credit.

That kind of thinking can actually hurt your business, because when you need some extra money, it's not there, or it will take too much time to get funds.

So, what exactly is a line of credit? It's a revolving line of credit, much like a credit card. You can borrow (draw) money up to your limit. When you repay the funds, you replenish the line, making it available for you to draw upon again.

Let's say you have a business credit line of $25,000 and draw $25,000. You can't borrow any more money, until you pay some back. If you repay $5,000, you can borrow that amount again. And you don't have to reapply to credit.

If you repay the whole amount, you can draw upon that. And if you don't have an immediate need, most lines of credit can just sit there, waiting to be tapped. If you don't borrow from it, there are no charges or fees.

I'm not telling you to go borrow money you don't need. But given that we don't know how long the economy is going to be impacted by COVID-19, now may be the perfect time to get a line of credit.

Before you apply for a business line of credit, here are some things you should know.

What are the terms?

Make sure you fully understand the terms of the line of credit. How often will you need to make payments? How long is the term of the line? Are there prepayment penalties? Unlike business loans, which usually require monthly payments, some business lines of credit offer the flexibility to choose monthly or weekly payments.

What is the total cost?

Make sure you add up the fees and any other costs associated with getting a line of credit. Find out if there are any potential penalties. Ask:

  • Is the interest rate fixed or variable? If the latter, can you handle it if interest rates go up?
  • What happens if your payment is late? Does that increase your interest rate? Will you get charged a penalty?
  • Does the lender charge a fee for drawing down money or just having the line of credit even if you don't actually use it?

How quickly can you access funds?

If you anticipate needing money in a hurry, to meet payroll or pay for an expedited shipment of merchandise, you'll want a business line of credit that allows you to get immediate access to your money. Some lines make you wait longer.

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What's the difference between a secured and unsecured business line of credit?

Secured lines of credit are typically offered by banks and require you to put up some type of collateral, such as business equipment, machinery, or inventory. (This is similar to a home equity line of credit, in which your house serves as collateral.)

Unsecured lines of credit don't require collateral, making them easier to get. Be careful, though, these often charge higher interest rates.

Are there stringent requirements to get a line of credit?

Typically, banks have more stringent requirements for approving a business line of credit than alternative lenders. Banks may not approve startups or relatively young businesses for a line of credit. Or they may want these types of businesses to get a secured line, requiring collateral.

Today, there are numerous fintech companies (alternative lenders) offering business lines of credit with fewer requirements. Other conditions may hinge upon being in business for a certain number of years or earning a minimum amount in annual revenues.

These are important considerations, so check the lender's requirements before you apply.

Does having a business line of credit hurt or help my credit rating?

In this regard, having a line of credit is similar to using a credit card. Borrowing small amounts of money on your line of credit and making timely payments will (gradually) boost your business's credit score since it shows you can responsibly manage credit. Over time, this will make it easier to qualify for other types of financing or a larger business line of  credit in the future.

Are there certain businesses that should always have a line of credit available?

  • Seasonal businesses often encounter cash flow problems during the slow season. Having a line to tap to pay bills or order merchandise can make the difference between survival and having to close up shop.
  • Do you have a lot of slow-paying clients? Tapping a line of credit while you wait for the money to show up can be a business saver.
  • If you're choosing between getting a line of credit or applying for a business loan, lines of credit are easier to get approved for. And if you don't want to put up any collateral, getting an unsecured line of credit could be the perfect solution.

If you're still uncomfortable with the idea of borrowing money, think of a business line of credit as an emergency fund that you tap only when you need it. If you never use your line of credit, it costs you nothing. If you need it, it's there. There's really nothing to lose.

It's smart to apply for a business line of credit when you aren't in desperate need of the money. So even if you don't need one right now, consider applying. It's always easier to get approved when you're in a strong financial position, than when you're in a cash crunch.

RELATED: 6 Tips for Using a 0% APR Credit Card for Your Small Business

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EIDL Alert: Why You Must Read the Fine Print of Any Loan Agreement

Posted: 24 Jul 2020 07:59 AM PDT

Millions of small business owners who received a loan through the Economic Injury Disaster Loan (EIDL) program were relieved to get approved for one of these low-rate loans through the Small Business Administration (SBA). But some savvy borrowers who carefully reviewed their loan agreements have balked at what appear to be onerous provisions imposed on borrowers, including confusing and contradictory language about personal guarantees. 

The EIDL loan agreement (which you can read in full here) currently states: 

"By signing or otherwise authenticating below, each individual and each organization becomes jointly and severally obligated as a Borrower under this Agreement."

"The terms are very straightforward and clear: This is a personal guarantee," observes small business attorney Garrett Sutton, and my co-author of Finance Your Own Business: Get on the Financing Fast Track. He adds, "As well, the note defines a 'Guarantor' as meaning 'Each person or entity that signs a guarantee of payment for this note.'"

This despite the fact that The CARES Act waived the personal guarantee for smaller loans with the following language: 

"With respect to a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID-19 during the covered period, the Administrator shall waive—

"(1) any rules related the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants; …"

Sutton says that the waiver of the personal guarantee for loans below $200,000 should be reflected in the contract. "If the government were on top of it they would change the document," says Sutton. He recommends borrowers add their own addendum which notes that because the loan is below $200,000, this does not include a personal guarantee. (Caveat: That doesn't appear to be possible to do with the platform the SBA is using.)

"The government may not enforce it, but the way it's written they could," he warns. 

The borrower who contacted me about this language also raised this question with the SBA and received the following email from an SBA employee: 

"I received your inquiry requesting clarification on certain terms in the Loan Authorization and Agreement. It's important to note when reading the agreement, that the terms apply only to the Borrower, identified in this specific Agreement as the [Company Name] and not the Officer Name. The note, Security Agreement, Loan Authorization Agreement terms all must be read with respect to the business or organization acknowledging and accepting the terms, and not any individuals for loans under $200,000. 

"The person designated to sign on behalf of the business signs the documents only as 'Owner / Officer' of the organization, and not 'Individually.' There must be someone to sign on behalf of the entity …

"For all loans above $200,000, there is a separate Guarantee document prepared where the principal of the organization signs in their Individual Capacity and there is an additional Guarantee Paragraph in the Loan Authorization and Agreement. Those are not present in the loans under $200,000.

"While the Agreement does not state that no individuals are personally liable on the loan, The Loan Authorization and Agreement specifically states each individual or entity acknowledges and accepts personal obligation and full liability under the Note as borrower. Again, the last two words of that sentence are important, as it is only The Borrower (company) on loans under $200,000 who are liable under the loan and agreeing to the terms in the Agreement.

"The Security Agreement only grants a security interest in the property owned by Borrower (Company), and the UCC financing statement to be filed will only identify the Company as the debtor, with no reference to the officer signing on behalf of the company."

But what about the fact that EIDL loans are available to independent contractors and the self-employed who may have no formal legal structure separating their personal finances from their businesses? (In fact, according to the SBA, in 2012 just under 20% of small businesses operated as corporations.) This response seems to imply there is always a legal separation between the business and the individual, which we know simply is not the case. 

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More contract details

This issue over the personal guarantee language in the EIDL contract may seem like splitting hairs, but it illustrates how important it is to read small business loan contracts before you sign them. It's not always easy or enjoyable, but it is vital. Not a legal expert? Most of us aren't. So when you're committing your business or yourself to repay thousands of dollars, it's a good idea to have a small business attorney who can help you review the agreement. 

Continuing our example of why that's so critical, here are a few additional considerations you can learn from reviewing an EIDL contract: 

Collateral

Lenders often require collateral for small business loans. And SBA loans typically require collateral, though that requirement has been waived for smaller EIDL loans related to COVID-19. The EIDL agreement requires any borrower accepting a loan of more than $25,000 to pledge an extensive list of collateral: 

"For loan amounts of greater than $25,000, Borrower hereby grants to SBA, the secured party hereunder, a continuing security interest in and to any and all 'Collateral' as described herein to secure payment and performance of all debts, liabilities and obligations of Borrower to SBA hereunder without limitation, including but not limited to all interest, other fees and expenses (all hereinafter called 'Obligations'). The Collateral includes the following property that Borrower now owns or shall acquire or create immediately upon the acquisition or creation thereof: all tangible and intangible personal property, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper, including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including payment intangibles and software and (k) as-extracted collateral as such terms may from time to time be defined in the Uniform Commercial Code. The security interest Borrower grants includes all accessions, attachments, accessories, parts, supplies and replacements for the Collateral, all products, proceeds and collections thereof and all records and data relating thereto."

It also goes on to state:

"Borrower will not sell or transfer any collateral (except normal inventory turnover in the ordinary course of business) described in the 'Collateral' paragraph hereof without the prior written consent of SBA."

Insurance

Some lenders require borrowers to carry key person life insurance or other forms of insurance to protect the lender. In the case of EIDL, the SBA requires the borrower maintain hazard insurance to protect collateral: 

"Within 12 months from the date of this Loan Authorization and Agreement the Borrower will provide proof of an active and in effect hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Borrower will not cancel such coverage and will maintain such coverage throughout the entire term of this Loan."

Presumably this requirement won't apply in all cases, such as smaller loans or loans where there is no physical collateral pledged. Nevertheless, it's an important requirement that business owners should be aware of. 

Distribution of assets

By signing the EIDL loan agreement the borrower requires the borrower to agree not to distribute assets: 

"Borrower will not, without the prior written consent of SBA, make any distribution of Borrower's assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise, to any owner or partner or any of its employees, or to any company directly or indirectly controlling or affiliated with or controlled by Borrower, or any other company."

What if you can't pay it back?

Given the uncertainty of today's business environment, it's no surprise borrowers are concerned about what happens if they cannot repay their SBA EIDL loans. The EIDL loan agreement states: 

"SBA'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, SBA may: A) Require immediate payment of all amounts owing under this Note; B) Have recourse to collect all amounts owing from any Borrower or Guarantor (if any); C) File suit and obtain judgment; D) Take possession of any Collateral; or E) Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement."

Defaulting on a federal loan is always a serious matter as the government has additional collection powers private creditors don't. Even if the personal guarantee protects borrowers, defaulting may prevent a borrower from qualifying for other federal loans such as federal student loans. 

Before you sign a loan agreement

None of this is meant to suggest borrowers should avoid these loans. In the current lending environment where low-cost unsecured loans can be hard to get, these loans will no doubt save some businesses. But remember that the SBA is doing what it can to protect the lender—which in this case is the U.S. government.

Your job is to protect your business. And that means reviewing and understanding loan agreements before you sign so you can make an informed decision. 

RELATED: SBA EIDL Program: Advances No Longer Available But Favorable Loans Still Being Granted

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