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How Can Businesses Protect Themselves During a Recession

January 28, 2013

Many U.S. businesses are still climbing out of the 2008 recession and there’s still the possibility that we could fall right back into one within the next couple of years. There’s significant uncertainty ahead of us as global economic growth remains subdued and the U.S. has yet to resolve key tax and financial matters related to the fiscal cliff. No matter what happens in the next couple of years, all entrepreneurs need to be prepared.

Review your financial model

You may not be a financial professional, but you still need to understand how changes to company sales and expenses will impact the bottom line. Work with your accountant or hire a financial consultant to help you understand what the impact will be from varying degrees of recession. Obviously, businesses with high fixed costs are at greatest risk during a recession, but each business model needs to be monitored for a five, 10, 15 and 20 percent decrease in sales.

By performing the analysis now, you’ll have a game plan for what needs to be done to maintain profitability and to sustain the business during a recession. It may be that a 10 percent loss of sales means that you need to lay off or demote X number of employees and close X number of locations. These decisions will need to be made swiftly and ahead of the storm, which is why you should create a plan now. (more…)

5 Strategies for a Successful Acquisition Deal

January 25, 2013

It’s a well known statistic that approximately two-thirds of acquired businesses fail. While these stats are based on publicly traded companies with failure measured by loss of equity value, there is no reason to believe that the failure experience is any different for private companies.

The statistics are daunting; however, companies continue to be acquired for a variety of good reasons and not all acquisitions fail. While the success or failure of an acquisition is often based on post-purchase issues (such as the melding of company cultures), there are five strategies that can help you beat the odds.

1. Strategic Acquisition Plan

First and foremost, understanding the motivation for acquiring a company is the first step to a successful acquisition. If the reasons for purchasing a company are clearly stated and supported, that laser-like focus will help: guide your purchase decisions; communicate your objectives to employees, service providers, and potential companies; and provide a benchmark to measure your success. To clearly define your motivation, ask yourself: (more…)

Getting Started With Pinterest: The Top Questions from Small Businesses

January 23, 2013

You may have heard of the hottest new social media tool, Pinterest.  Pinterest is like a virtual bulletin board that allows users to find and curate images and videos. Unlike other photo sharing sites, Pinterest is focused much more on the discovery and curation of other people’s content, not storing your own. That’s why it’s caught the attention of so many organizations—big and small. It’s helping them spread brand awareness and is driving lots of web traffic.

Here are the three of the top questions I’ve heard from small businesses looking to get started:

1.“What are the differences between Pinterest, Facebook, and Twitter?”

Pinterest is not an entirely different world of social media marketing- it uses a language that most social media users already know. Often, people are intimidated when they hear terms like “pin” or “repin,” but put them in the context of “tweet” or “retweet,” and finally they make sense. And when it comes to liking, commenting, and sharing—these are things you’re probably doing every day on other sites. (more…)

Protect Your Business Against Final Pay Issues

January 18, 2013

The end of employment isn’t always the end of your involvement with an employee. If you make any of a number of common mistakes when an employee leaves, or is asked to leave, it could result in liability for your company and, in some instances, liability for you. Final pay, or paying out whatever the now-former employee is owed (while not paying more than is due) can be a minefield.

Below are some of the most common questions about ending employment and answers that will help you protect yourself and your business. Bear in mind that employment law exists at both state and federal levels. Each state has its own statutes and regulations governing at least some, if not all, of the issues in the questions below. It is critical that you understand your state’s requirements. Also note that while employment law is not contract law — not unless there’s an employment agreement — there is this similarity: you can’t arbitrarily change the rules on an employee.

For final pay purposes, does it matter if employment ended voluntarily or involuntarily?

Maybe. In some states, a company’s final pay obligations might differ depending on whether you are reluctantly bidding adieu to a good employee, or gleefully showing a bad one the door. For example, in Connecticut an employer is required to pay a fired employee his or her final paycheck no later than the next business day. (more…)

6 Quick Tips to Improve Your Survey Response Rate

January 16, 2013

Let’s face it: people don’t usually get too excited about the idea of taking an online survey. They may not have the time, they’re distracted by their to-do list, or they simply don’t see it in their inbox. But for a small business, there is no better way to improve your products, services, customer satisfaction—and your business as a whole—than by getting feedback directly from the source.

Here are 6 easy-to-implement tips to entice your customers and members to improve your survey response rate.

1. Make your survey as short as possible

Think through your survey carefully. Only include the questions you absolutely must have the answers to—5-10 questions is the sweet spot. One way to do this is to choose a specific survey topic, like a particular event or promotion, and focus on that.

2. Tell recipients upfront how many questions are on your survey

If you tell the recipients how many questions there are, they know what to expect. Adding questions causes the completion rate to drop. By being upfront, you’re reassuring recipients your survey won’t take up too much of their time. (more…)