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Finance 101 for Small Biz: Debt vs Equity

Small business owners trying to grow their businesses need sufficient capital (i.e., money) to pay for inventory, marketing, equipment, and other vendor-related items. But owners must also have enough capital to pay for operational expenses like rent, utilities, and labor. And let’s not forget about the owner’s salary or draw. After all, most owners rely on the income from their businesses to live on.

So, the question is how to pay for company growth. Basically, you have two funding choices: debt and equity. Here’s how to decide between the two.

Equity

Equity is the money you and investors would have leftover if you liquidated your company and paid off all debts. In other words, it’s the business’ assets minus its liabilities.

Many small businesses have a single owner, meaning that 100% of the equity belongs to the owner. In this case, the owner’s equity is equal to the business’ retained earnings, which is the accumulated profits of your company after you pay all your bills and draw your own income.

Some small businesses have investors. You issue shares of stock to investors and pay them dividends in return for their equity investment. Then, the total equity of the company is money contributed by investors (including yourself) plus retained earnings.

Unlike debt, equity does not have to be repaid. Equity investors are willing to risk their money in return for a return on their investment. You can use equity capital to pay for the growth of your company, but you need to know the cost of doing so.

The cost of equity is equal to the return demanded by investors (including yourself) for investing in your company. Because small businesses are risky, equity investors usually require a higher rate of return than lenders do. The reason is that lenders have the first claim on the business’ assets if it goes bankrupt. For instance, you might be able to get a commercial loan at, say 10%, but have investors requiring a 15% return to justify their investments.

Dividends and owner’s draw are not tax-deductible to your business.

If you want to grow your company without debt, then the amount available for you to pay yourself and perhaps pay dividends to investors is decreased by the money you spend on growth.

Debt

Debt is the capital you borrow. The cost of debt is the interest rate, but since business interest is deductible, you must adjust the interest rate by your tax bracket.

For instance, suppose you take a 10% commercial loan and you are in the 20% tax bracket. Then, your after-tax cost of debt is 0.10 x (1 -0.20), or 8%.

Unlike equity, you have to repay debt. If you are taking a loan to finance growth, then you expect that the increased revenues from growth will allow you to pay the loan interest and repay the loan principal.

Owners looking for financing often prefer debt to equity because they don’t want partners. Lenders have no say about how you run your business, whereas equity investors may want to have input on your decisions. If you don’t want investors questioning or disputing your decisions, you will prefer debt financing.

Weighted Average Cost of Capital (WACC)

If you use both debt and equity to finance your company, then WACC is the percentage of each times the cost of each. For example, if your capital structure consists of 50% equity with a cost of 14% and 50% debt costing 8%, then WACC is 11%.

Preferred Shares

Sometimes, a business will issue preferred shares to equity investors. Preferred stock is a hybrid of equity and debt because it pays a relatively high dividend that must be paid before common stock dividends. The cost of preferred shares is, therefore, a complex calculation.

Conclusion

For many reasons, business owners turn to debt rather than using their own money or that of investors to fund their business’ growth. We at IOU Financial provide small businesses affordable loans of up to $500,000 with instant pre-approval and funding within a day or two. We invite you to contact us today to arrange financing that will help you grow your company and increase your revenues.

Make the Most of Your Emails: What to Include

More than ever, when it comes to your marketing emails, content is king. That is, you can (and should) make your emails look attractive, but if they’re lacking compelling content, you can bet recipients will shuffle them off to the spam folder. Now, that doesn’t mean you need to be a Hemingway to create effective emails, but you can observe the following tips to make get the maximum value from your email campaigns.

Start with the Subject Line

Pity the poor subject line — it has the weight of the world on its shoulders. A good one will greatly increase the chances that the recipient will actually open and read the email. A bad one is a one-way ticket to oblivion. Do the following to nail the subject line:

  • Use a verb: Your subject line should be actionable, calling on the reader to do something. Examples might be “Get the funding to grow your company” or “Order flowers for your mom this Mother’s Day.”
  • Customize the subject line to the segment: You should be segmenting your mail lists to make them more targeted. For example, if you own an insurance office, you will want to segment customers and potential customers by the appropriate type of insurance, such as life, automobile, or rental. It would be malpractice to offer homeowners insurance to a tenant when you should offer rental insurance instead. Your subject line should reflect the different needs of different segments.
  • Make the topic clear: It’s all well and good to make your subject line catchy, but your top priority is to make it clear. If recipients don’t immediately understand the purpose of the email, they are less likely to open it. If you can state your topic clearly and cleverly, so much the better. For example, “Think plant burgers taste like grass? Think again!”, which is clear, catchy, and commanding.
  • Ensure subject line and email copy align: Recipients don’t appreciate emails in which the subject line doesn’t match the email content. The email should deliver on whatever the subject line promises. Failure to do so crushes the chances that the recipient will click-through any link in the email. And it might exile your subsequent emails to spam jail.

Craft the Email Content

OK, you’ve created a killer subject line. Follow through with well-crafted content by observing these tips:

  • Establish relevancy early: You’ve used your segmentation strategy to create a targeted subject line. Apply that same strategy again in the opening paragraph in order to establish the email’s relevance to the reader. For instance, use the first paragraph to remind recipients that something is about to expire, or that they’ve just earned enough loyalty points to graduate to a higher reward tier. These examples make the relevancy to the reader clear and personal.
  • Address recipient as “you”: That is, write in the second person. “You”, “your”, and “yours” are second-person pronouns that should predominate over third-person words (“we”, “our”, “us”, etc.). This focuses the content on the recipient rather than the sender. Subtle but effective.
  • Emphasize benefits, not features: The recipient wants to know the value of whatever it is you’re hawking. If you just talk about the latest whiz-bang features of your offering, you can leave them wondering about the value of the email. For example, don’t just plaster “25% off all domain names” without explaining how having multiple domains can increase web traffic and return on marketing investment.
  • Say it succinctly and lovably: You can probably go on and on regarding the email’s message, but don’t. Assume your recipients are busy people, so get to the point quickly and don’t belabor the topic. Instead, offer a click-through link for readers who want more information. While you’re at it, make your copy delightful to read. Let your business’ personality sing out and show your recipient a little love.

Conclusion

We’ve discussed ways to improve your emails. End them with a call-to-action (CTA) that is, well, actionable. Make CTAs easy to recognize, perhaps incorporating a button that links recipients to a dedicated landing page you’ve created just for this email. The CTA can offer many things, such as more information or access to a special deal. The bottom line is that your emails should be the complete package, with optimized subject lines, contents, and CTAs. Now, go get ‘em!

Want more business tips? Check out our FREE resource: 7 Secrets to Small Business Success!

How Small Businesses Can Book Clients Through Social Media

Social media has become one of the go-to ways for businesses to connect with people, be they current or prospective clients. There are a number of reasons for this – advertising on social media can cost less than traditional advertising, and the biggest social media platforms have millions or billions of users. In order to fully appreciate the value of booking clientele through social media, it’s worth taking a deep dive into some statistics about the users of the major platforms.

The Statistics

Instagram has over a billion monthly active users and over half visit the site daily. 80% of those users follow at least one business page and 72% of users have purchased something they’ve seen on the platform. For those doing the math, that’s 720 million people who have purchased something they’ve seen on Instagram –  an enticing number for any business. Facebook (which owns Instagram) has over 2.3 billion monthly active users, 74% of whom visit the platform daily. That means a hefty percentage of the world’s population uses the platform every day, so if you have products you’re looking to ship to a global audience, Facebook is the place to be.

Twitter’s statistics are a little different. They look not only at daily active users but monetizable daily active users – in other words, the users who actually see ads (many people use ad-blocking software). There are 145 million such users every day. The company also reports that ad engagement is up and the cost for advertising is down.

Which of these platforms should you set up for online booking? Preferably, all of them, but that may require more resources than you’re willing to commit. Should that be the case, it’s important to understand where your customers are hanging out. You want to focus your efforts on the platforms that host the most users of your target demographic and you want to post during the hours those users are active – but we digress.

In order to book clients, you’ll need a business page on all of the platforms you want to use. Setting up these pages is fairly straightforward. For those who don’t have a business page, you can check out this handy guide that explains how to create a business page on Instagram, Facebook, LinkedIn, and Twitter.

How to Implement

With your business page set up, it’s time to start booking clients. The simplest way of doing this is to incorporate a link to a booking page on the business page of your main website. Each platform has a slightly different way of going about this. 

When using Twitter, you’ll log into your account, go to “Profile”, click “Edit my profile” then add the link to your booking page in the Web section. Simple!

Want to book clients on Facebook? You have a number of options: The most commonly used is going to your business page, clicking “Add a Button”, selecting “Book with you”, then “Book now”, then clicking “next”, then selecting “Link to Website” and adding your link. Recently, however, Facebook has added its own appointment booking software which you can use for free by clicking “Appointments on Facebook” and following the prompts.

How about booking clients on Instagram? The process is fairly straightforward: go to your business page, then edit profile, change your URL to your booking page, then change your Bio to something like “Click here to book!” (or a more exciting, emoji-filled call-to-action).

It’s worth noting here that there are many types of booking software available and they can save you a lot of time. Researching this software and finding the one that best suits your needs can drastically improve the efficiency of your business, especially if you find yourself suddenly flooded by a swell of social media requests. This software can automatically sync with your Google calendar, they can send you text message alerts, and they can even accept payments on behalf of your business. While their utility depends heavily on how much of your clientele books online, they can be incredibly useful.

Getting Clients to Book

Now that we’ve gone over the mechanisms of how to set up booking through social media, it’s worth taking a look into how to get clients to actually book. We could write whole manuscripts on the topic, but we’ll take a brief look now.

Consistency is key on Instagram and on other platforms. You’ll want to post at the same time of day, every day, at least once a day, in order to grow your following. Remember, every person who sees your profile sees your booking call-to-action, so each view is a prospective client. You’ll want to be careful not to oversaturate followers with posts, however, or they might unfollow you. Quality, not quantity, is key. This is especially true on visual platforms like Instagram; a couple of tweets in a single day doesn’t hurt as much as a barrage of image posts.

You’ll also need to learn how to use hashtags properly. In brief, you want to use hashtags that are common enough to be searched for, but uncommon enough that you’re not drowned out in a bunch of noise. You might also find value in following trends being set by the platforms’ power users. In essence, you’re looking to carve out a niche on the platform. There is a lot of room on most platforms to use multiple hashtags, so don’t be shy about using multivariate testing to see which ones have the most pull. 

Finally, you’ll want to make sure your call-to-action is eye-catching. Depending on what business you’re in, that could be something as simple as “Book Now” (seniors, for example, are often not looking for wacky call-to-actions). An amusement park, however, might have firework emojis and “Start your adventure here!” as a call-to-action. Know your industry and tailor all of your social media marketing appropriately. 

Guest Post: About the Author

Kiara is a natural organizer and she understands how important time and resource management are for small businesses. That’s why she is the perfect Content Manager for BookedIN – because BookedIN software is the perfect way to organize your business life. She enjoys spending her time reading and learning new things.”

You Have A New Lead — What’s Next?

Leads are great, but only to the extent that you convert them to customers. It’s not rocket science, but you do need some smarts about motivating leads to purchase your goods or services. In this article, we’ll give you some tips on how to qualify and convert leads, thereby increasing your sales and growing your business.

There are plenty of useful tools for nurturing and converting leads. You can use a customer relationship management (CRM) app to keep track of leads, customers, and interactions. You can use a tool to automate your email campaign, or perhaps use an entire platform such as HubSpot, which offers a suite of tools for inbound marketing.

To simplify the discussion, let’s say your small business acquires leads by collecting the email addresses of website visitors. Perhaps you have a free offering that requires a visitor to enter an email address to qualify. Now, some leads are more promising than others. Here’s how to identify good leads and engage them:

  1. Optimize product pages:

    Your website should clearly describe what your company does and what it offers. Visitors should be able to easily navigate to product pages for the particular goods and services that interest them.

  2. Always include calls to action (CTAs):

    You use CTAs to collect email addresses and other basic information when visitors request a free download, demonstration, or some other goody. This is the most common way to collect leads. You can also buy sales lead lists from list brokers who deal in your industry.

  3. Nurture leads via email streams:

    You can create streams of automated emails to nurture leads. You start with emails that offer generally useful information and then slowly introduce your sales pitch in later emails. Using email management software like Mailchimp can help you track the progress and effectiveness of your email campaigns. Software can vary the mail stream depending on the lead’s responses. You want recipients to open their emails, so include compelling information, special deals, and other enticements.

  4. Schedule a meeting:

    The email campaign should help you identify the most promising leads. These are the ones that would benefit from a personal contact, such as a phone call, meeting, or an invitation to a seminar. You should try to schedule the follow-up interaction as soon as possible before the lead loses interest or is otherwise distracted. You can automate a Google Calendar entry that leads can post.

  5. Institute a reminder strategy:

    The reminder strategy involves contacting a lead via an email, phone call, text message, etc., about a scheduled interaction. A gentle reminder can reduce the number of no-shows. You will want to confirm their preferred method of communication, including their best phone number and email address.

  6. Offer a deal:

    You should understand your competitors’ offerings and prices so that you can offer an enticing deal at a defendable price. That means ongoing market research so that you can always present a competitive price.

  7. Track your sales reps:

    If your business is big enough to have sales reps, you must track their performance over time. Underperformers may need training and additional support.

  8. Collect statistics:

    Your marketing return on investment (ROI) can only be measured if you collect meaningful statistics on your marketing and sales efforts. There are many stats to track, but of course the most important one is leads who make a purchase — your conversion rate.

Conclusion

Leads are valuable, don’t let them go to waste. Review your marketing and sales strategies over time by way of conversion ratio and other metrics. And if you don’t feel like you’ve got a handle on this aspect of marketing, there are many resources available to you, including books, websites, videos, courses, seminars, toolkits, and so forth.

5 Tips on How to Boost Your Business With Webinars

If you’re looking for new effective ways to promote your business, webinars are certainly worth giving a try. Webinars have proven to be an effective tool that generates high-quality leads quickly. One of the great advantages of webinars is that even small businesses and startups can afford them.

If you own a small business, the chances are that you like to learn something new and you already know what webinars are. And if you don’t, here are some great webinars for small business owners. However, webinars are not only a good educational tool but also a very effective solution for businesses that want to promote their products or services, gaining visibility and attracting a fresh audience.

What Webinar Marketing Is

Webinar marketing is based on the use of online seminars in order to reach out to a wider audience and to promote products or services. Usually, webinars provide valuable information for free, giving the participants an opportunity to purchase services and products offered by the company that created the webinar.

Just like downloadable ebooks or checklists, webinars act as lead magnets. However, they offer more value and they can also bring you better leads. Usually, webinars include a presentation and a Q&A session. The video format allows you to establish effective communication and to demonstrate your services and products in real-time.

Webinar marketing is an approach that benefits you while also educating your audience, which adds value to your marketing efforts. Besides, video content is extremely popular. Experts predict videos to make up 82% of all internet traffic by 2022. Besides, 72% of consumers like to learn about new products from videos. Compared to other types of video content, webinars are relatively cheap to produce. That’s why we mentioned webinars in our list of the best types of video content for small businesses.

Although webinars are often aimed to get the audience interested in purchasing something, it’s important to understand that they shouldn’t look like a sales pitch. A successful webinar provides value. Relevance and quality of the information that you provide determine the effectiveness of your marketing efforts. Here are some tips that will help you make your webinars interesting and effective.

How to Boost Your Business With Webinars

Choose the right topic

The main thing that determines whether or not people will want to attend your webinar is the topic. First, you should choose the right words for your title so that it will appeal to a wide audience. Secondly, you should determine what topic is most likely to generate interest.

When choosing a topic for your webinar, you can research keywords related to your niche and determine what people are searching for. The chosen keywords must be not only popular but also unique. Offering something unique is especially important for new businesses that face strong competition.

You may also check your existing ebooks and posts on social media or blogs to find content that has performed well. This way, you may find an engaging topic that will be interesting for your target audience. The main thing so to research your niche and not to choose a topic simply based on your instincts.

Plan your webinar properly

Successful marketers know that they shouldn’t rely on luck. You cannot improvise when your goal is to create an effective marketing product, especially if you’re creating educational content. You need a well-designed strategy and a clear plan.

First, you should understand why you need this webinar. You can use webinars for various purposes, and your purpose determines what strategy you should use. For example, you may want to launch a new product, to attract new leads, or to establish your brand as an expert in the niche.

When planning a webinar, think of your audience and determine what types of content might be most valuable and engaging for them. Focus on a single topic and plan the structure of your seminar. Usually, seminars are one-hour long. You may dedicate 45 minutes to the presentation so that you can spend the remaining 15 minutes answering your audience’s questions.

Do your best to create high-quality content

First, we recommend that you approach this step as a continuous process. Even if your marketing strategy has already demonstrated some success and some people showed up, you won’t be able to make them come back if you don’t produce more great content. Your content must be exciting and fresh.

We recommend that you offer useful information and a solution to the problem you’re helping your customers with. Always try to provide the ultimate solution but make sure to focus on helping your attendees, without being too self-promotional.

You should also make sure that your webinars will reach the widest audience possible. If you’re selling your products internationally, you may want to make your content understandable for people who speak different languages. Although it’s difficult to translate webinars in real-time, you can record them and add subtitles. Just make sure to use the right translation service, such as The Word Point.

Keep your audience engaged

Your presentation shouldn’t be boring. Thanks to modern technology, you have plenty of opportunities to grab your audience’s attention and to keep them engaged. Make sure that you’re broadcasting high-quality audio and video. Look at the camera so that your viewers can maintain visual contact with you.

The pacing of your presentation is also important. We recommend that you switch slides quickly so your audience will pay attention. Otherwise, your webinar may become boring. Your slides must be to the point and not overloaded with text. Just write the key points and keep your presentation simple and straightforward.

Promote your webinars

Even if your webinar is very informative and engaging, you may still have to do a lot of work to get enough participants. First, don’t promote your webinar at the last moment. According to statistics, only 33% of your audience is likely to register on the day your webinar goes live. We recommend that you start promoting your webinar in advance.

If you want to get the biggest number of participants, we suggest that you start to promote your webinar at least one month before it goes live. We also recommend that you promote your webinars on Tuesdays, as it turns out that 25% of people who attend webinars register for them on this day of the week.

When promoting webinars, try to use as many channels as possible. Promote them on social media and run email campaigns. According to research, 70% of people sign up via email. Don’t forget to create a nice registration page and send reminders before your webinars start. You may also edit your thank you message to add a link to the registration page.

Wrapping Up

Webinars are a great marketing tool that allows you to not only promote your business but also sell your products. However, the success of your webinars depends on your ability to create valuable and engaging content. Follow our tips, and you will take your marketing strategy to the next level, creating winning webinars that help your audience and generate sales.

Guest Post: About the Author

Frank Hamilton is a blogger and translator from Manchester. He is a professional writing expert in such topics as blogging, digital marketing, and self-education. He also loves traveling and speaks Spanish, French, German and English.

4 Reasons Why You Should Hire a Tax Accountant for Small Business

Tax accountants do much more than only handle your tax return. They advise on legislation that could affect your business. They oversee and prepare your company’s tax compliance reports. And they give feedback about budgetary concerns. If you’re running a business without a tax accountant, you can probably already see why adding one to your firm is a good idea. Not convinced? Then check out these four reasons.

A Tax Accountant Can Be a Good Investment

You may be worried about the cost of hiring a tax accountant, but an accountant can actually save you money in the long run. Most tax accountants have a wide variety of accounting knowledge and skills, so your accountant could be the perfect fit for the other accountancy tasks of your company. By getting invaluable tax and general advice from an accountant, you are sure to see your profits grow more than they previously did. A tax accountant could be the best investment you make in your business. If you run a more significant company, it’s worth investing in hiring a certified public accountant. CPAs are qualified and highly experienced. So, they can assist in tax issues and a variety of other accounting elements like financial planning, mergers, acquisitions, and investments.

You Can Avoid the Nightmare of Doing Tax Returns

Tax accountants obviously deal with tax issues. So, if you’re unsure about your taxes, you should hire a professional. After all, doing your company’s tax returns can be an outright nightmare. You need to know what tax codes mean, which forms you need to fill out, how to fill out the complicated forms and a hundred other things. With so much time and stress focused on your tax return, you’ll probably also be worried about incurring hefty fines from getting your return in late. If you’re not an expert in tax, it’s best to hire a tax accountant. He or she will ensure you avoid any late-fines and put your paperwork in order.

A Tax Accountant Helps You Stay Legal

If you don’t fully understand your taxes, you could end up overlooking a critical detail which could result in a severe fine or even an illegal action. If you want to ensure you stay on the right side of the law, hire a tax accountant. He or she will be able to advise you on other legal matters too. There are a lot of rules and regulations for business owners, and understanding all of them can be tricky. For instance, you may not know that you legally need to take out employers’ liability insurance. Having an accountant as part of your team ensures your business meets all applicable rules and laws.

You’ll Have More Time to Focus on Other Things

However large or small your business is, you’ll know that it takes up a considerable amount of your time. On top of full-time working hours, you’ll probably be doing other tasks like maintaining your firm’s website, ordering stock, looking for new contracts, or looking over any other business fundamentals. Indeed, running a business can often mean you have little leisure time to spend with your family and friends. Taking time out is essential for any business owner, but with a seemingly never-ending list of tasks, how do you find that extra time? Of course, the answer is: get a tax accountant. Hiring an accountant to handle your taxes and organize your finances means there’s a huge chunk of your work-life that you suddenly don’t have to handle. Instead, you can focus more on other critical areas of your business and spend more time with your loved ones.

Guest Post: About the Author

Erika is an independent copywriter and content creator. She is an avid reader who appreciates unread books more than read ones. You can follow her on Twitter.

SEO in 2020 — How to Rank as #1

SEO is in a dynamic phase right now, thanks in part to the evolution of Google’s ranking algorithms and in part to the move to optimize visual, voice, and Facebook Search channels. If you are a webmaster or a business owner (or both), now would be a good time to re-evaluate your SEO practices with an eye toward bringing them up to date. Here are a few areas to consider:

  1. Beneficial Purpose:

    Google now places a heavy emphasis on the beneficial purpose of a website during the ranking process. Pages should be user-centered to achieve their intended purposes. This includes sharing topical, personal, or social information, sharing various forms of media, expressing opinions, entertaining visitors, selling services and products, running a forum, and facilitating user interactions. Pages that seek to make money without helping users are now considered to be of low quality.

  2. YMYL Content:

    YMYL stands for “your money or your life.” Broadly, this is critical information that your website must get right. Specifically, inaccurate or deceptive YMYL content might affect a reader’s financial stability, safety, health, or happiness. Google now places greater scrutiny on the truthfulness of YMYL pages, including ones that cover news, legal issues, governmental developments, financial and medical advice, shopping information, and information on groups of people.

  3. EAT Factors

    EAT, or “expertise, authoritativeness, and trustworthiness,” was once the entire basis of page quality, but now is one of several factors. YMYL content must meet a higher EAT standard, demonstrating the credentials of experts and generally recognized authorities that are considered honest and accurate. EAT factors are of the highest importance on pages containing medical, scientific, financial, legal, and other information that supports decisions.

  4. Scaled Content:

    Important, high-quality information should be shared in a coordinated way, including long-form articles, press releases, videos, podcasts, multiple platforms, chatbots, and Google Actions. The trend is to develop original, expert content and then distributing it through multiple channels and media.

  5. Avoiding Staleness:

    You can help your ranking by updating old content, something that Google notices. For many websites, that means updating or archiving pages that are six months to two years old. Google will downgrade a page that loses relevance because the information is dated. You should update your content to include the latest links, statistics, and external resources. Also, you should regularly audit your pages for duplicate, conflicting, or sketchy content. There are audit tools (e.g., DeepCrawl, SreamingFrog, SEMRush, etc.) available to help you identify problem areas.

  6. Facebook Search:

    Paid social and paid search are increasingly intertwined. Is your Facebook search-ad strategy up to date? All brands can now place Facebook ads that automatically receive Automatic Placement support. That means your ads will appear in the Facebook Marketplace as well as primary search results. Your strategy should include using niche keywords targeting less saturated audiences.

  7. Sharpening Backlinks:

    Backlinking continues to be an important tactic to boost the credibility of websites. Your backlinks should target competitive keywords, especially in highly-competitive markets. These should be quality backlinks that promote specific marketing outlets, such as digital marketing platforms that serve similar audiences with high domain authority. By the way, these same considerations also apply to guest postings, encouraging long-term recurring contributions.

  8. Schema Use:

    The joint facility Schema.org provides websites with a structured data markups that major search engines interpret page information. You need Schema to provide snippets that serve as zero-click results on the search results page, a good strategy to keep searchers from traveling to another site to answer a question. Also, Schema supports voice-based queries such as those available through Google Assistant.

Conclusion

We’ve given you eight tips to help you improve your SEO practices in the new decade. Space limitations prevent us from exploring additional tips that you should check out on your own, including Accelerated Mobile Pages, page speed, Google Search Console, different language hreflang tags, and more. So saddle up, cowpokes, and git that SEO done – don’t let your competitors get the jump on you.

Relocating a Business: 5 Factors You Need To Know

Relocating a business can be a very complex issue, whether you’re moving to another state or just down the street. To make everything run as smooth as possible, you need to plan the move carefully. The stakes are very high and there are a lot of things that could go amiss if you don’t organize everything down to the last detail. There are some factors you should make your priority in order to avoid future trouble.

Proximity to Transportation and Accessibility

When picking a new location for your business, one of the most important things to take into consideration is transportation options. In metropolitan areas, a large number of people rely on public transport, so if you have access to metro or bus stations it is good for both your customers and your employees. It provides the staff with a convenient and easy way to travel to work. Plenty of them might even be happy that they don’t have to get behind the wheel every day! Some people, however, find public transport intimidating and foreign so you should inform your employees about their options ahead of time. Organize a meeting with the staff before relocating and let them know about the nearby public transit options.

As for customers, you need to make sure they know how to find you and that they have easy access to your facility. Measure the doorways to make sure they aren’t too narrow and look for any step-ups that make it difficult for people to enter. If some concerns are raised, discuss them with your landlord before you sign a lease or your company could be subject to a lawsuit.

Staffing

There are a few main factors you need to consider concerning your staff.  First, you need to figure out the number of employees you need at your new location. If the new facility is bigger than the previous one, there might be a need for increased staff numbers. Is it feasible to hire more people with the current profit?

Second, can you attract a new workforce? Chances are you will have to let go of some of your trusted old employees as you move to a new location and you might need to hire new staff. If the living conditions in the area aren’t so good, you might find it difficult to find new people to hire. Looking for and training a new group of qualified and skilled workers can take some time at first. Do not forget that new people in the workplace might need some help fitting in. Team building exercises will bring your workers closer together and they will have fun in the process!

Hidden Costs

Looking at the rental price of your new building can be deceiving. Make sure not to take every expense at face value when relocating, as it can be easy to overlook many of the less obvious costs. When comparing two locations price-wise, don’t forget to also include expenses such as utilities, parking lots, flooding possibilities and snow removal costs. The new location might seem more expensive when you first look at the rent, but it could be the more economical choice overall if the price includes heating, cooling, wifi, parking and so on.

This requires a lot of research, especially if you’re moving to another country. Some things to look into are good infrastructure (you don’t want to deal with common power outages!), legal and regulatory structure and the culture. Ensure that the people have adequate education and if local universities provide courses that fit your company’s needs.

The move itself can also be costly and sometimes won’t go the way you planned. To avoid any hassle, you could hire a reliable logistics management services provider. They will do all the heavy lifting so you don’t have to.

Keeping Both Locations Running

This is a thing that can seem obvious at first, but keeping both locations running during the move is extremely difficult and requires a lot of cautious planning. If you don’t think this through properly, you might end up with a lot of unhappy customers! Either figure out a plan to keep the business running during the move, or make sure your customers are notified ahead of time that you’ll be taking a break for some time. Explain the issue to them and let them know when you will be open again. You will probably still end up with some complaints because not everyone will see the announcement in time, so beware!

Apart from the customers, it is also crucial to update your corporate address if you want to avoid orders and mail going to your old facility. Check if all suppliers and delivery services have your new location in mind.

Proximity to Amenities

While access to transportation options may be the most important thing to consider when looking at the facility’s surroundings, it is also a good idea to check if there are local amenities available in the area.

Having lunch options within walking distance is a sure way to keep your staff happy. Inform them about any shops, convenience stores, cafes or gyms you find nearby. Having the ability to run some errands or do some quick grocery shopping after work will be much appreciated by your workers. Keeping employees satisfied isn’t only a responsibility, but a pleasure as well.

Conclusion

Moving can cause a lot of headaches for both you and your staff. This list doesn’t cover all the issues you might face when dealing with such a complicated task, but it will surely help keep you on the right track. It is a risky business, but if you plan ahead carefully and strategically, success is nearly guaranteed.

Guest Post: About the Author

Nick is a blogger and a marketing expert currently engaged in projects for Media Gurus, an Australian business and marketing resource. He is an aspiring street artist and does Audio/Video editing as a hobby.

8 Proven Methods for Small Businesses to Save Money

Small businesses frequently go through cycles of strong and weak profits. When profits are low, you probably will want to find time-tested ways to save money. You do this by cutting costs and reducing your overhead without sacrificing sales. Here are 8 proven ways for your business to save money:

  1. Outsourcing:

    You can save money by outsourcing tasks that are not central to your business mission. This keeps your full-time staff as small as possible while outsourcing work not performed by staff. You can hire contractors and consultants as needed for specific tasks, often at a lower all-in rate than needed for an employee with the same skills.

  2. Advertising:

    You can continue to reach customers without traditional advertising. Rather, low-cost alternatives are available that will save you money. One alternative is to spend your marketing money on public relations rather than advertising. For example, a good PR strategy can get your company mentioned as authoritative sources in media outlets and publications. Inbound marketing using SEO and social media can be just as effective as conventional advertising in increasing traffic to your website.

  3. Vendors:

    Review your relationships with your vendors to see whether you can negotiate lower costs. Vendors want to keep their goods and services flowing to their customers and might be willing to charge less if that allows them to maintain their business volume. You can negotiate on a huge range of costs, from phone service to office supplies. The nice thing is that there is no penalty for trying to lower vendor prices, whereas forgone potential savings are the penalty for failing to negotiate.

  4. Cloud:

    If you don’t already live in the cloud, now is a great time to move in. Cloud-based solutions can save you big money compared to the cost of acquiring and operating your own expensive hardware. Cloud-based systems host your databases and software. SaaS (software as a service) costs an annual fee that can be much cheaper than developing or running your software in-house, such as payroll and ER systems.

  5. Telecommuting:

    Everyone can win when you embrace telecommuting if that’s possible for your business. You can save on office costs and ongoing operating expenses. Your employees save commuting costs and enjoy a better work experience. The result is to produce work products with minimal overhead. You can start with some of your office staff and work towards expanding telecommuting as convenient.

  6. Green:

    Happily, the moral imperative to go green coincides with cost-cutting. You’d be surprised how little things can add up to big savings. For instance, turn off machines when not in use, and use a printer that prints on both sides of the paper. Better yet, reduce your use of paper by adopting a paperless office concept. Where feasible, buy recycled supplies and equipment, utilize efficient lighting, and recycle your own waste for money.

  7. Debt:

    It might save you money to consolidate your various debts into one, convenient loan that charges a reasonable interest rate. If you have to make several debt payments per month, consolidation can cut it down to a single lender. If you choose a lender like IOU Financial, you can have your payments deducted daily from your bank account, keeping your payments affordable and automatic.

  8. Maintenance:

    Are you paying for daily cleaning services at your office? Perhaps you can cut back on this expense by training staff to keep things clean and neat. With proper staff training, you may be able to cut back to weekly cleaning without noticing the difference.

Conclusion

We’ve touched upon several ways for you to cut your business costs with little or no sacrifice to your operations. There are many more methods to save money, and we will no doubt return with additional suggestions in a later blog. Remember, it takes just a little extra effort to implement money-saving protocols that will continue to save money for your business over the long run.

Prioritizing Your Business Goals in 2020

The new year is here, and with it comes a fresh opportunity to re-evaluate your business goals. This is a useful annual exercise because goals and priorities can change. You need to ensure everyone is on the same page in the new year. Take the time to look at your objectives and to apply lessons learned from 2019.

Here are some important things to consider as you review your 2020 goals:

  1. Assess 2019:

    Start by figuring out what you did right and what you did wrong in 2019. The right stuff should serve as the basis for the growth of the company. But the bad stuff is possibly more important because it tells you where you must take action to improve performance. The actions you take depend on the nature of the problems you encounter. Typically, you will have to redirect and/or increase resources allocated to the problem areas, whether it be management, sales, marketing, finance, or operations. Your assessment should be accompanied by specific plans to exploit strengths and remediate weaknesses.

  2. Emphasize training:

    Growth in 2020 will require an investment in professional growth within your company. Sure, you need to train onboarding employees, but you must also make sure that management, including yourself, receives the latest information regarding changes in the business landscape, including technical, tax-related, best-practice, marketing, and regulatory developments. Group training options may be the most cost-effective. You should also utilize your in-house and consultant experts to deliver training courses where needed. Naturally, you can save money by training on-premises rather than paying for travel.

  3. Set SMART Goals for 2020:

    SMART goals are Specific, Measurable, Achievable, Realistic and Time-Bound. To make your goals SMART, you must state them in detailed language that leaves no doubt as to what constitutes success. You must specify what is to be done, using which methods, by what deadline. You should also specify how you will prove that the goal is achieved. For example, you can use financial ratios to prove you’ve improved margins, reduced inventory turnaround time, or attained dozens of other possible goals.

  4. Use high-quality data:

    The adage is “garbage in, garbage out.” Now more than ever, you need to be operating using accurate and timely data. Bad data can result in bad expenditures that hurt your business. It might be a good idea to bring in a data consultant to assess your current databases to see that they are internally consistent and clean. Prioritize which data is the most important for your business and verify it is of high quality. You should have key performance indicators that help you assess data quality.

  5. Evaluate your leverage:

    Many companies short-change their growth prospects by failing to employ enough leverage (i.e., debt). Often, owners are too conservative and miss opportunities that would enhance growth. They are afraid to take on debt even though their businesses throw off more than enough cash to easily repay the debt. By taking prudent loans, companies can make new investments, pay off old liabilities, and recruit needed talent. You may want to spruce up your financials in anticipation of merger and acquisition activity. Perhaps you want to relocate a store, or open new stores, or upgrade your inventory mix. If you have carefully designed plans, don’t let them wither just because you can’t finance them internally.

Conclusion

We’ve outlined a few important priorities to address for the new year. To the extent they require expenditures, our last point is critical: Use debt to grow your company. We can help. Please contact us at IOU Financial for quick, affordable business loans that are easy to repay. We have the experience and expertise to get you the money you need on terms that will please. We look forward to hearing from you soon.