15Oct
The Power of Surveys: Harnessing Customer Feedback for Business Success 

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Today’s dynamic and ever-evolving business environment demands constant interaction with customers. In the age of the customer, where expectations and preferences shift at the speed of a click, understanding your consumers’ needs and adapting to meet them is no longer a luxury—it’s a necessity. One of the most effective tools businesses have at their disposal to gain these invaluable insights is the customer feedback survey. Customer feedback surveys are a crucial ingredient to business success, and their importance cannot be overstated. Here are some reasons why. 

A Direct Line to Your Customer’s Mind 

At its core, a business revolves around its customers. The ability to get inside the mind of the customer is a superpower that every business should aim to possess. Customer feedback surveys provide just that – a direct line to understanding what the customer thinks, feels, needs, and wants. Surveys offer an opportunity for customers to voice their opinions and feelings in a structured, systematic way. This enables businesses to quantify and analyze data, identify patterns, and formulate actionable strategies. The feedback received can be about a product, a service, a process, or the overall customer experience. No other tool is as direct and efficient in capturing the voice of the customer. 

Customer Retention and Loyalty 

Businesses often focus on customer acquisition, but retaining existing customers is equally, if not more, important. It is estimated that acquiring a new customer costs five times more than retaining an existing one. Customer feedback surveys play a crucial role in identifying potential issues that could cause a customer to leave, thus helping companies retain their customer base. 

Surveys also show customers that their opinion matters, making them feel valued and heard. This increases customer loyalty and advocacy, turning customers into powerful brand ambassadors. 

Refining and Innovating Products or Services 

Feedback received from customers can act as an essential resource for product development and innovation. Surveys can reveal what features or aspects of a product or service customers love, and more importantly, what they don’t. Businesses can then refine their offerings accordingly to improve customer satisfaction and market fit. Furthermore, surveys often uncover innovative ideas or trends that a company may have overlooked, driving future growth and setting the company apart from its competition. 

Improving Customer Experience 

Customer experience is the sum total of a customer’s interactions and perceptions about a company. A positive customer experience fosters loyalty, enhances reputation, and increases sales. Regularly conducting customer feedback surveys allows a business to assess and enhance each touchpoint in the customer’s journey, ensuring a stellar customer experience. 

Informed Decision-making 

Business decisions, be they strategic or tactical, benefit significantly from reliable data. Customer feedback surveys provide a wealth of quantifiable data, translating subjective experiences into objective insights. This information empowers businesses to make data-driven decisions that align with customer preferences and expectations. 

Benchmarking Performance 

Finally, regular surveys help businesses benchmark their performance over time and against competitors. It is a way to measure if efforts to improve customer experience, product quality, or service delivery are working. 

In conclusion, customer feedback surveys are a powerful tool in the business arsenal. They provide deep insights into customer perceptions, preferences, and pain points. However, conducting surveys is only half the battle. The key lies in analyzing the data, acting on the feedback, and communicating changes back to the customer. This creates a feedback loop that fosters continuous improvement, customer satisfaction, and ultimately, business success.  

No business can afford to ignore the voice of its customers. In a world where every customer’s opinion can reach a global audience in seconds, the power and importance of customer feedback surveys have never been greater. 

27Sep
Invoicing Mistakes Costing You Money

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As a business owner, you have a lot on your plate. It is very easy to overlook simple tasks like invoicing when you already have many other priorities. However, beware of these invoicing mistakes that are costing you money. It is something that should require your full attention since small mistakes could become costly to your business. These mistakes can easily be avoided and you will encounter fewer problems in the long term.

  1. Not sending invoices in a timely manner

It is important that you do not procrastinate sending out the invoice. The invoice needs to be prepared as soon as possible and sent to the client immediately. Delays in dispatching the invoice to the client will only affect your business by not getting payment in time. This is something that can easily be avoided to assure you are not wasting any time and assure the proper cash flow of your company.

  1. Not having payment terms

By not specifying the payment terms to the client, they will not know when to pay. This leaves the deadline open to interpretation and most likely causes the client to pay much later or forget entirely. You need to include the terms for example it’s often written as Net 7, 10, or 30 days. This means that the client has 7, 10, or 30 days to make a payment depending on when you choose.

  1. Not specifying payment methods

You need to make it as easy as possible for the client to make a payment and if they do not know how they can pay, then it will result in further delays. Clearly indicating what payment methods they can use, will avoid delays caused either by the client contacting you to ask or by the client pushing it off and forgetting entirely.

  1. Not following up on your invoices

It is important to follow up on your invoices this will make sure that the client has in fact received them. Sometimes, clients will forget to make a payment and by following up with them it will remind them to pay right away. Other times, some clients need to be badgered in order to get the payment from them. In either case, following up will solve the problem is receiving anything late and to assure they received it at all.

  1. Incorrect information

Make sure that the invoice is addressed to the correct person. It is possible that the invoice will not be billed to the same person that you had contact with when you are dealing with a bigger business. Also pay attention that all other information on the invoice is correct such as an address, pricing, and even spelling. Incorrect spelling will make your business look unprofessional which is not an impression you want to give. Before sending out the invoice, double-check that it is the correct information.

  1. Itemizing

It is a good idea to include a list of charges that you are charging the client. This way it will be easier for the client to understand their charges. There will be less confusion and therefore less reason for the client to contact you with any questions that will further delay the payment.

Invoicing and receiving payment is a key part of a business that you need to have under control. When sending out an invoice, your goal is to make it as clear as possible for the client. Set up payment terms, be clear with how you accept payment, and follow up on all invoices to make sure you are paid. The less confusion there is the easier it will be for the client to pay right away.

17Sep
Marketing to Millennials

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Social media has emerged as a critical component of marketing to millennials. According to one study, millennials now make up the majority of the population in the United States. As a result, millennials have the world’s largest consumer base. So, in order for your company to grow, Millennials can play a significant role. Here are some general characteristics of Millennials that set them apart from the general population. 

Millennials are more likely than older generations to conduct online product research prior to making a purchase. 

Authenticity & Transparency: Millennials, the discerning consumers of today, hold authenticity and transparency in marketing to the highest regard. 

Influencing friends and family: This group is more likely to discuss their brand experiences and purchasing decisions on social media, making word-of-mouth marketing particularly effective. 

Experiential marketing is a strategy that can be successful with millennials. It involves creating memorable events or experiences that engage the consumer. 

In spite of their propensity to shop online, millennials still value in-person interactions and are more likely to make impulsive purchases in physical stores. For many millennials, sustainable and socially conscious business practices are crucial, so emphasizing those features of a product or company can be a successful marketing tactic. Remember that these are generalizations and that not all millennials will fit these descriptions. 

There are key things that you need to understand about millennials in order to sell to this market. Doing this will allow you to capitalize on this digitally inclined demographic while increasing profits for your business. Here are a couple things you need to know when marketing to millennials. 

  • Outbound Marketing is Out 

Millennials want to feel connected and involved when it comes to their purchases. Traditional marketing does not encourage this. Outbound marketing methods like magazine ads, direct mail campaigns, and radio spots, do not work well with Millennials and should as much as possible, not be used. 

Millennials know what they want and, since they are so digitally savvy, they know how to find it online. That is why these young consumers do a lot of their research via blogs, forums, and YouTube videos. 

  • Word-to-mouth culture 

Millennials are glued to their devices because they constantly need to be connected. Product reviews and social tools are readily accessible to them. This allows them to research and share opinions before they commit to a product. They purchase from brands and products they can trust and that are endorsed by Instagram influencers or real people. 

Instagram influencer marketing is the result of this word-to-mouth culture that values trusted endorsements. It’s not just about having celebrities to make the consumer buy things, it’s about advertising real people. People that the consumer can relate to and trust. A survey shows that 61% of people will trust a friend’s endorsement of a brand and are more willing to buy from that brand. Social media is a way of creating this brand loyalty, it provides an unofficial endorsement in the form of user-generated content that can be reposted by the brand. 

Respond to customer service requests, create campaigns that engage customers, and don’t just promote products but add informative posts and info on social channels. By incorporating these strategies into your marketing efforts you can generate/ drive traffic to your website and broadcast your brand’s core values. 

  • You have an 8-second window 

Millennials have a very short attention span. Their focus is constantly shifting from one thing to the next. If your content does not capture their attention in the first 8 seconds, then it becomes irrelevant. This is why there is such a high demand for content creators because it’s not easy coming up with something that will grab people’s attention in such a short time frame. You need to be able to help them understand what your product is about and why they should care within those few first seconds. 

We have become very fast that if visually something is not appealing then we are not interested and we move on to the next best thing out there. There are so many products available on the market that you need to be able to prove why yours is the best for your consumer and why it matters. The world is constantly changing and improving and if you are not the first or the best to do something then you will completely become irrelevant in a matter of seconds. 

  • You need to visually look the part 

Millennials judge with their eyes first. Your website, brand, or ad content needs to be up to par. Visually it needs to be appealing, in style, and professional. If your content looks old or outdated then your brand or product will lose credibility, regardless of what you are selling. Not to mention you will not even have their attention for more than a second. 

This generation is obsessed with creating and sharing video content. It is on every social media platform where people can upload short clips and stories on either Facebook, Instagram, or Snapchat.  YouTube has become very popular over the past decade and anyone is free to share almost whatever they want.  Just about anyone can become famous. YouTube stars are becoming just as popular as celebrities. 

Creating video content is the best way to create a connection with millennials. It is a way of grabbing their small attention span. They will be more interested in watching something than reading an ad or looking at a picture since they are so quick to scroll through images. However, your video needs to be professional and visually appealing. You need to create a connection with them, inspire them, and give them a reason to keep watching. 

  • You need to be in more places than one 

Millennials have developed a culture of multitasking by constantly switching between devices and platforms. Our generation is plugged into their devices and our attention is split between different platforms. We’re constantly scrolling, switching, and looking at different things.  Our attention is not on one social networking app but on multiple platforms all at once. If you plan on running ads through YouTube only then this may not be very effective, as the majority of people will switch devices as soon as an ad campaign comes on.  However, this division of attention is used to benefit strategic ad campaigns. By dividing your brand’s ad investment into different platforms, you can extend your reach across different channels. 

  • Brand storytelling 

In order to reach millennials, you need to create content that means something to them or that they can relate to. They are receptive to brand storytelling. This generation values being acknowledged, being presented with options, and feeling connected. Your message needs to be intelligent, thoughtful, and inclusive. It is about including everyone together. Millennials are interested in products that are sustainable and make a difference. Slowly products are trying to incorporate these values, which have been attracting millennials to purchase their products.  This makes a huge difference when advertising to your demographic, as this generation is more inclined in making a difference. When your product means something and makes a difference, then they will be attracted to your brand or product. 

Marketing tactics that might have worked in the past recently changed due to this digitally inclined generation. By directly addressing this generation, brands will be able to create a connection between them and the consumer. Engaging millennials sustain these connections and transform ads. 

19Aug
Founder of Naked and Famous Denim: Brandon Svarc

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Brandon Svarc; is a founder who decided to do the exact opposite of what his competitors were offering in order to succeed. Naked and Famous Denim is a high-quality denim brand that is not like any other pair of jeans out there. Made out of only the best fabrics and priced at a point where you get your money’s worth. Today’s fashion industry is focused on glamour and celebrities rather than quality. Naked and Famous Denim’s primary focus is quality.

We are proud to have funded this business and once it became successful, founder Brandon Svarc joined the PME committee in order to help other entrepreneurs like himself. We had a chance to speak with Brandon and he shared with us his success story but also gives us insight into what he has noticed while being part of the PME committee. He shares with us some tips and advice he has learned along the way.

  1. What made you start naked and famous denim?

I started Naked and Famous Denim because I wanted to start a brand that was the opposite of all the other denim brands on the market. I realized all high-end denim was based on corrupted values and was highly overpriced for the quality of them. My main motivation was to create the best possible jeans on the market.

  1. How does your denim brand differentiate from other brands?

Our denim differentiates from other brands through our product values. When I started this business in 2008, my competitors were all Hollywood or celebrity-endorsed brands. What they sell are glamour and million-dollar ads, what I sell is quality. It is simple: no ads, no stresses/rips, no product giveaways, and no celebrity endorsement. We are focused very much on the product and quality, that’s it. We stick to a concept my grandfather taught me, making better quality products than your competitors for a better price.

  1. How did you come up with this idea? Why Japan?

My family has been in this industry for 70 years. So, this has always been a part of me. When I was born, my father even made a line of jeans in my name. However, I was still tackling something I didn’t have much experience in. My concept was simple, to make the best product I can sell at the most expensive stores but sell them at the opening price points of those stores. I set a goal and went from there. The first goal I set was to sell at Barneys and we accomplished that in our first season of selling. After that, we continued selling there for 16 more seasons in a row.

In order to make the best possible product on the market I did a lot of research. I knew I wanted to make them locally in Canada because I wanted to support the local market. Next, I needed to find where the best denim fabric is. After countless research, I found it in Japan. When I found the Japanese denim and saw how much they obsess over it I knew this is what I needed. With the amount of detail and innovation that went into the material, stitching, and washing, I knew this was it. My goal was to find the best fabric, and make it in Canada, for the lowest price, with no ads, no celebrities just keep it simple.

  1. What were some of the most challenging obstacles that you had when building your business and how did you overcome them?

Sales were one of the biggest challenges I had when I started out. I had no sales experience. Even though my family was in the clothing industry they still never really targeted what I was going for. This was a big challenge when I wanted to sell in every high-end store with no experience or pre-existing contacts. However, this didn’t stop me from going door to door to every store asking them to sell my brand. By going door to door to different stores, this helped me learn and practice and eventually I became really good at it.  I had a lot of people turn me down and even throw me out of their stores but I didn’t give up. Eventually, I had those same people who kicked me out of their stores call me back to ask to sell my brand.

  1. What kind of risks did you need to take as a founder in order to be where you are today?

There are a lot of different risks that every entrepreneur needs to take in order to be successful. Not using ads or following the conventional path that most people in the fashion industry take was a risk but I wasn’t too worried. There are a lot of competitors on the market I was going after, however, I knew if I made the best quality product then the rest would follow.

Most people who work with corporations don’t have the constant anxiety of will my company go out of business. Usually, there is a level of security in those employed positions. As a founder, you don’t have this sort of safety net that is offered when you work for a company. That’s a risk you need to be willing to take.  I constantly had this anxiety about if my business will actually make it and if people will buy my product or if this was all for nothing. That’s a risk I was willing to take because I believed in my product and was passionate about what I was selling.

6.   If you can give one piece of advice or a golden rule for an entrepreneur starting out what would it be?

 One piece of advice I like to share with young founders is something that was told to me. When the time came to sell to high-end stores in Ontario, I set out to find someone with pre-existing knowledge and contacts about the Ontario market. I did not have much experience and I knew I needed to find someone to sell my denim for me. I finally found the perfect person, whom I contacted and arranged a meeting with. After pitching my denim brand to him, he was amazed by my product. However, he declined to sell my denim for me. He declined because he said the best person who can sell my product was me.

No one else has the passion and product knowledge for your own product other than you. You need to sell your product yourself. That’s what I like to tell young entrepreneurs. Even if you have no sales experience or contacts you need to take a chance on yourself because nobody knows the product better than you.

  1. As a board member, you’ve seen many entrepreneurs pitch their ideas. What are some of the biggest mistakes people make when pitching?

The biggest mistake I’ve seen founders make when pitching is over-selling it. Some overestimate their financials and that doesn’t go well with the board. Obviously, these numbers are based on assumption and it’s good to dream big. However,  if you’re going to over-exaggerate your numbers you need to be ready to defend those numbers with facts. Be realistic. 

  1. Naked and Famous denim is a PME-funded business and you are a board member, what kind of advantages has PME provided to your company along with others you see come in?

Of course, the loan itself can help with the pre-seed funding to get things running. By being a board member, I’ve seen how willing everyone is to make connections for the founder. Even if they don’t get the funding, we will still try to help them in every way possible by connecting them with the right people. Everyone will look through their network in the Jewish community and put them together. We really want everyone to succeed and it’s not just about giving them the money to help them to do that.

Every founder should take note of the passion and dedication that Brandon Svarc exemplifies. He believed in what he was selling and had faith in his product. He had a straightforward, simple concept and executed that successfully. Passion is key when you’re a founder because if you really believe in what you’re doing then everything else will come. His jeans are now sold across numerous stores across the globe.

PME’s goal is to help every entrepreneur that comes in to succeed. It’s not just about giving them the financial tools but also mentoring them and putting them on the right path to succeed.

16Jul
Should You Take Out That Loan or Not?

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Should you take out that loan or not?

There are numerous factors you must consider while expanding a startup. How you plan to finance your business is one of the most crucial factors. Small business loans are frequently used by startups to fund operations, but without sound financial management, taking on more debt could be harmful to the company.

How can you tell if taking on more debt is necessary to run your startup? What inquiries must you make of yourself before submitting a loan application?

5 inquiries to make before incurring debt

Your business may be able to get the funding it needs through a loan in order to expand and grow. You can use it to manage your cash flow and get out of difficult financial situations. However, borrowing money is a big decision that shouldn’t be made hastily. Before taking out a loan, you should ask yourself the following questions:

1. How will I use the funds?

The first thing to think about is what you will need the money for. Small businesses borrow money for many different reasons. Maybe you need to raise money for a renovation or new equipment or perhaps you need to cover unforeseen expenses or changes in your cash flow due to the seasons. Whatever the reason, it is important to understand the rationale behind your loan decisions and how it will help your company.

2. What amount do I need?

After knowing why you need to raise more money, you need to make an educated guess as to how much you’ll need.

The following information will help you decide how much money to borrow from lenders.

You must first estimate how much money you will need based on the anticipated revenue and operating expenses for your business. The loan’s interest rate is the next thing you should think about. As the interest rate rises, so does the cost of the loan. You should also consider your ability to make the loan’s monthly payments. A loan’s associated costs must also be considered. These fees can add up quickly, so you must be careful to include them in your overall borrowing costs.

3. Do I make enough money to take on extra debt?

One of the most important things to think about is whether you will be able to repay the loan you are taking out. If you are unable to pay the loan installments out of your revenue, your business can suffer. You run the risk of losing investors for your startup. Your personal and corporate credit profiles can both suffer as a result.

4. Which finance option will best meet my needs?

It might be difficult to choose the loan type that is best for your business when there are so many different types of loans available. It all comes down to knowing the loan’s purpose. By knowing what you’ll do with the money, you’ll be able to choose the type of loan that best suits your requirements.

You can give us a call if you’re unsure of the kind of loan that would be best for your small business. The PME fund is one option for some to consider.

5. What does my credit profile look like?

A summary of your credit history is included in your credit profile. It contains details about your credit accounts, including loans, credit cards, and mortgages. It also contains details about your credit usage and payment history.

Your company credit score, which ranges from 0 to 100, serves as a representation of your credit profile. Borrowers with a business credit score of at least 75 are frequently approved for loans. If your score is lower than that, you may want to raise it before applying for credit. As a result, your chances of obtaining financing will increase.

It is essential for startups to think carefully about whether taking on debt is the best course of action for their company. In some circumstances, slower growth without borrowing money could be preferable. In other situations, borrowing money could be necessary to achieve the level of growth that the startup needs to be successful.

11Jun
How to Build Trust With Word-of-Mouth Content

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How to build trust with word-of-mouth content. Every consumer has the power to change opinions about your company for the better or worse. Their ability to spread the word about your brand may be a potent asset for your content marketing team if handled correctly. Below you will find, key information on how to build trust with word-of-mouth content.

Word-of-mouth advertising is not only significantly less expensive than paid techniques, but it also has a bigger potential for both immediate and long-term influence.

Businesses that leverage user-generated content from their customers and authentic reviews in their content marketing strategies enhance their own reputation while growing their client base.

Here are four strategies for including word-of-mouth advertising in your content:

1. Highlight pertinent user-generated content

User-generated content, when done right, can have an impact. Share social media mentions about your company. This is a simple technique to highlight the positive public perception of your company. However, don’t end there:

  • Find content that highlights the products or services you offer. Find information that demonstrates how the customer may use or profit from your service or product. This content can be incredibly useful.
  • Highlight customer success tales that feature your entire brand or your products/services. Customers who have publicly expressed their opinions should be contacted again to see if they would like to elaborate on their experiences. Make them the focus of the narrative; let them take the reins so your brand won’t have to.

TIP: Word-of-mouth advertising does not need to rely solely on in-depth reviews. Even a picture with a brief, encouraging text can be effective.

2. Have dialogues in the present.

Even when a customer’s social media post is about customer service rather than marketing, your content marketing team should still pay attention to it. By participating in the here and now, you may increase the impact of client feedback. Not to mention that when you can resolve or clarify an issue, responsiveness can rapidly transform a negative into a positive.

Consider the following tactics to engage clients in conversation:

  • Keep an eye on mentions in real time so you can jump into the conversation as it’s happening. This will allow you to intervene if you want to put an end to it or continue the topic.
  • Incorporate yourself into the conversation with consideration. Engage the customer authentically rather than trying to control the discussion, whether they are asking for assistance, asking a question, showcasing your product, or sharing a positive experience. Answer the query, offer advice, express gratitude, and mention why you also adore the product. You might be able to provide information about a brand-new good or service if the possibility is genuine.
  • Speak in personable, not corporate, tones. Brands that appear more human in real-time interactions with customers perform better than corporate ones. It is not appropriate to promote your brand during these chats. These are the chances to display your character, brand values, and dedication to your customers.

3. Create narratives based on consumer feedback

Because of exceptional (or subpar) customer service, people are motivated to submit reviews, and many consumers won’t make a purchase without first reading reviews. Hence, use those excellent client testimonials you currently have. With the customer’s consent, utilize them in your content.

  • Track down the testimonials that most truly reflect your company’s image and its offerings, then create tales around them. Promote on your blog, in your newsletter, and on social media.
  • Look for a client who had a particular issue or requirement that your business was able to address. Share any behind-the-scenes effort that was done to resolve the difficulty to provide context for the review.
  • Create graphic postings for social media using notable customer quotes.
  • Combine reviews that are alike and create a single narrative that exemplifies your business’s reliability.

4. Produce and distribute video reviews

You should consider including customer videos in your content marketing plan. They can act as a due diligence source for prospective customers, just like other types of word-of-mouth content. When done correctly, personal narratives convey how potential clients can envision themselves or their issues being resolved. These videos can be utilized in a variety of ways:

  • Display comprehensive video testimonials on your business’s website. They can be used independently or as a supplement to a longer case study.
  • Post soundbites from the video that have been expertly edited and demonstrate how your brand lives up to expectations on social media.
  • Grow your YouTube following. This material may then be used to improve your search engine optimization and Google My Business profile.
  • Develop a series of thematic blog posts based on the information in these films.

Word-of-mouth marketing is one of the most effective content marketing methods. Your customer base is likely to increase when your consumers do the talking, publishing, and sharing. The trick on how to build trust with word-of-mouth content is to successfully organize, combine, and repackage user-generated content in order to get greater outcomes for your company.

3May
Tips and Tools for Social Media

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Tips and tools for social media. While building up your content will require time and money, you can produce high-quality material with a smartphone and a few simple tools and tips. The main advantage of using social media is that it’s an inexpensive method of raising brand exposure.

Additionally, you might be able to reach your target audience on social media for a lot less money than you would with targeted advertisements.

Social media can be used to achieve a variety of goals, including brand development, credibility building, word-of-mouth marketing, and tightening ties with current clients. Alternatively, you may merely want to use social media to direct visitors to your website, where they may end up becoming paying clients. Remember to communicate with your followers on social media in addition to posting. If someone shows interest in your brand, be there, engage, and interact. Below are some tips and tools for social media success.

Be consistent.

Being consistent is the best thing you can do as a small business when you first start using social media. Too frequently, brands lose faith if they don’t start seeing results right away. Social media growth might be gradual, but like with other things, if you are persistent, you will see benefits. This entails regularly publishing content of a high caliber (at least once a week). There are several reasons why you do this.

The first is that you want users to have a clear understanding of your brand when they do land on your profile. Users will quickly lose interest and leave if your website contains little to no content. For scattered posts, the same is true.

You can share a story on social media. Users will understand what to expect from your page, what your voice is like, and what you have to offer when consistency and coherence are given priority. And in doing so, you’ll draw in your target segment.

Add variety to your content.

There is so much possibility for experimentation and creativity on social media. All too often, businesses adopt a single successful strategy.

Social media is continuously changing and evolving. Due to the addition of new features and shifting user habits on various platforms, what worked yesterday might not work today.

Keeping this in mind, experiment as much as you can with content types. For instance, you can only post videos on TikTok. On Facebook, though, you have the choice to go live, post pictures, run polls, and more.

For small businesses, the simplest approach for them to build their audience and grow their following is to create educational and/or compelling material.

We are not saying that small businesses should limit themselves to these two forms of content. They ought to experiment with all their content in order to determine what their audience prefers. However, this can be a good place to start.

Here are some suggestions to get you going:

  • Customer spotlights
  • How-to’s
  • Behind the scenes
  • Trends (viral sounds and dances)
  • Product features
  • Q&As
  • Facts about your industry

Quality over quantity.

This is true for both the platforms you use and the content you post. While posting frequently on social media is welcomed from a content standpoint, there is a catch. Your posts must all add value. If it doesn’t fit that description, think about a different tactic, such as sharing user-generated content or reposting brand-related content from a non-competitor.

Platforms.

A small business may not have the time or money to maintain an account on every social media network. Concentrate on one to three platforms that have the demographics of your target audience, and then move forward from there.

10Apr
How to Create & Maintain a Balance Sheet

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Have you ever wondered how to create & maintain a balance sheet?

The balance sheet provides a summary of your company’s financial situation as of a particular date. The balance sheet explains in non-accounting words what your company possesses (assets), what it owes (liabilities), and what the owner’s interest in the company is (equity).

Essentially, if the financial statements are the story of your company, the balance sheet is the CliffsNotes. Your balance sheet gives you a clear image of what you own and what you owe, as well as a summary of your company’s financial status at a particular point in time. Below you will find information on how to create & maintain a balance sheet.

What are the main parts of a balance sheet?

1. Assets

Assets are the items that your company owns. They are often divided into two sections on balance sheets.

Current assets

Firstly, current assets include cash and other assets that you anticipate selling in the upcoming year. As such, inventory and accounts receivable are examples of current assets.

Fixed assets

Secondly, fixed assets are owned assets or equipment that the business uses to generate revenue from its operations. Fixed assets are things that will not likely be sold and that are bought for a lengthy period of time (longer than one year). As a result of wear and tear, their value depreciates over time. On the income statement, this modification is noted as depreciation.

2. Liabilities

Liabilities are the sums that your company owes to third parties in the next 12 months. More specifically, balance sheets divide liabilities into two divisions. Current liabilities and long-term liabilities.

Examples of current liabilities include accounts payable, credit card bills, sales taxes collected, payroll liabilities, and loan payments. Whereas, examples of long-term liabilities are term loans and mortgages.

3. Shareholders’ Equity

Shareholders’ equity is the value of the company’s obligation to shareholders. It is what the company owes you.

Equity includes:

  • The amount of money put into the business by its shareholders (startup cash you invested, etc.)
  • The amount of money generated by a business (amounts you have left in the business over time.)
  • Any donated capital.
  • Calculated equity using this formula: Equity = Total Assets – Total Liabilities

A Balance Sheet Preparation Guide

To produce an accurate balance sheet, you can use your accounting software. In every program designed for double-entry bookkeeping, the balance sheet is a standard report.

Firstly, go to the reports section of your accounting program and search for financial reports. The balance sheet should be near the top of the list, frequently right after the profit and loss (or income) statement because it is a common financial statement.

For the balance sheet report, some accounting software asks you to specify a time range. This can sometimes cause confusion. The balance sheet displays information as of a certain date. However, the profit and loss statement only displays information for a specific time period.

Furthermore, along with a financial overview of your company from the beginning to the balance sheet’s “as of” date, this data also provides a financial summary of your company.

The balance sheet’s objective

Primarily, balance sheets are utilized as a method for determining whether or not the accounting procedure produced accurate results. It is easy to spot an error on the balance sheet if assets do not match liabilities plus equity.

Contemporary accounting software does not allow for the recording of transactions that are not balanced, uneven balance sheets are an extremely rare occurrence. An uneven balance sheet typically denotes a software-related issue. Nowadays, balance sheets aren’t needed anymore. However, the balance sheet helps you measure your company’s health and make informed business decisions.

In short, a balance sheet is a critical tool for assessing your company’s health and making prudent business decisions.

How to make business decisions using your balance sheet

With a quick glance at the balance sheet, you can assess the financial health of your company. If equity is negative, which means liabilities exceed assets, that may be a sign that your company is having financial problems. Schedule a meeting with your accountant to discuss this.

Further, you can identify three key parameters from your company’s balance statement.

Current ratio

The current ratio gauges the capacity of your company to meet its short-term obligations. The equation is: Current ratio is equal to Current Assets / Current Liabilities.

The current ratio reveals how many times your company’s available cash can cover its current liabilities. Anything below 1 means your company won’t have enough cash or cash equivalents to cover its obligations over the course of the next 12 months.

Quick ratio

This is the quick ratio formula: Quick ratio: Current liabilities / (Cash & cash equivalents + Short-term investments + Accounts receivable)

The quick ratio, which measures liquidity, is frequently identical to the current ratio.

The ratio of debt to equity

The debt-to-equity ratio reveals how much of your company is financed by debt, or how leveraged it is.

The equation is: Debt-to-equity ratio = Total Liabilities / Total Equity

Keep in mind that we are now examining all liabilities, including long-term debt. Between 1 and 1.5 is a healthy debt-to-equity ratio. Anything above that may be a sign that your company is heavily leveraged. This can make it more difficult to find financing at a good rate.

Things to consider

The ratios are useful for making fast assessments of how well your company is performing in a few key areas. Evaluate the balance sheet, the profit and loss, and the cash flow statement in order to make good business decisions.

27Mar
3 Considerations When Planning to Sell Your Business

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3 important considerations when planning to sell your business. It’s common knowledge when business owners reach retirement age that they lack a workable exit strategy. This is a step-by-step guide to help you get your company ready for sale while steering clear of any possible pitfalls. When getting ready to sell your company, bear these three points in mind.

Depending on the owner, this may entail selling to a third party or passing the business on to the next generation of the family.

The good news is that you can manage the financial aspects of exiting. Especially, if you want to sell and must find a buyer for your business. Many owners wait to deal with this issue until they are ready to move forward. Often, this causes one to feel stuck. It is not uncommon for the search for the ideal buyer to take three to five years. It’s important to keep in mind that, regardless of a company’s worth, the selling process can take a while. Here are three strategies to start planning your exit in order to do so on your terms:

1. Establish a timeline in advance.

The best time to decide how and when to sell your business is when you’re at the top of your game and not when you’re starting to slow down. Most business owners are most likely in their early 50s. They are not yet ready to retire but have plenty of experience to get the job done.

Having a timeframe will help you make decisions in the interim and give the sale a clear structure.

2. Specify who the buyer is.

A crucial part of preparing your business for sale involves finding a possible buyer. As was previously mentioned, this is a lengthy process that should involve thoroughly vetting prospective purchasers to see if their values, objectives, and ideas for the performance and culture of the company coincide with yours. This is a drawn-out process that needs to be carefully considered. In this manner, you may guarantee that the business is run in your style even after your departure. (This still applies if you’re giving the reins to a close friend or family member.)

3. Consider the how carefully.

Once you have found your buyer, it is critical to think about how the deal will be financed. One possibility is that your buyer has enough cash on hand or bank financing to buy your company entirely, which is fantastic! However, another possibility is that the buyer lacks enough capital (either owned or borrowed) to finance the deal in a single transaction. Instead, you will complete an installment sale in which you agree to the buyer’s repeated payments to you.

These three steps can help you proceed in a way that assures you obtain the best financial result. This result can be good for yourself and for future generations of your family. Preparation is key to success, regardless of the path you choose, the value of your company, or the timing of your exit.

Furthermore, allowing yourself more time to get ready can lessen the emotional toll of departing. When the time comes, it will therefore feel less unexpected and more like a seamless transition into a joyful and carefree life after becoming a business owner.

7Mar
The Link Between Poverty and Entrepreneurship

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Often overlooked in discussions about economic development, entrepreneurship and business activity play a vital role in promoting growth. Entrepreneurship and startups have the potential to play a significant role in poverty reduction. Startups can help to lift people out of poverty and promote long-term development by creating jobs and stimulating economic growth. According to the worldwide Entrepreneurship Monitor, small and medium-sized businesses (SMEs) make up more than 90% of all businesses and more than half of worldwide employment.  Startups can help relieve poverty through providing underprivileged individuals access to financial services

China’s remarkable story of lifting approximately 600 million people out of poverty since the late 1970s, following Deng Xiaoping’s market reforms, underscores the transformative potential of entrepreneurial ventures. Today, the idea of entrepreneurship resonates more than ever among the young generation, many of whom now aspire to start their own businesses.

In regions like Quebec, learning about entrepreneurship often occurs outside the formal school curriculum. However, a shift is noticeable in many economies that have recognized entrepreneurship as an effective strategy for poverty alleviation. Despite the challenges of financial scarcity, entrepreneurial initiatives can often achieve remarkable results with limited resources.

Developing Economies

Entrepreneurship not only uplifts individuals but also significantly contributes to economic development. It is a potent tool for poverty alleviation. Traditional jobs hinge on a country’s overall economic stability and access to higher education. But in many developing countries, quality education may not be accessible, and a fragile economy might not support traditional job growth. Entrepreneurship transcends these obstacles, offering opportunities for personal growth without the prerequisite of formal degrees.

Industrialized and Emerging Economies

Industrialized and emerging economies are increasingly acknowledging the value of entrepreneurship. With unemployment on the rise since 2001, European Union governments have launched various initiatives, providing entrepreneurs with education, advice, infrastructure, and funding. These efforts aim to foster a conducive environment for entrepreneurship. According to the European Commission, these measures have already shown signs of success, helping young people transition out of unemployment while creating economic value.

International Organizations

Major international organizations endorse entrepreneurship as a powerful tool to alleviate poverty and reduce unemployment. The World Economic Forum has long emphasized entrepreneurship’s importance, implementing programs to foster entrepreneurial spirit worldwide. According to the World Economic Forum, small and medium-sized enterprises in countries like France and the United States have significantly contributed to growth and employment generation.

Role of Charities

While charities provide essential short-term support to impoverished regions, they can inadvertently hinder long-term development by creating dependency. An entrepreneurial approach, on the other hand, promotes self-sufficiency. For instance, sending used clothes to needy countries is a well-intentioned act, but it may inadvertently discourage local entrepreneurship in the textile industry.

However, supporting entrepreneurship in developing economies requires more than just individual initiative. There are fundamental gaps in skills, capital, infrastructure, and regulation that often stymie entrepreneurial success. Reliable infrastructure is critical – an entrepreneur can hardly operate a factory without dependable electricity. Here lies a potential new focus for charitable organizations: investing in infrastructure, capital, and skills development, they can foster an entrepreneurial environment that promotes long-term growth and self-reliance.

Traditional charity models, while generous, can inadvertently encourage dependency. A shift towards supporting entrepreneurship can stimulate social change and help eradicate poverty. Thus, charities should transition from providing immediate relief to building an entrepreneurial climate that encourages self-sufficiency, resilience, and prosperity.