Business Education

3 Biggest Signs of Early Startup Success

It’s not always easy to know where you stand. Sure, you’ve made it this far and there doesn’t appear to be any big trouble on the horizon. In fact, things are going quite well. Yet, you wonder if it’s just a matter of perception. Or, is your startup really going to make it? Well, there is no guarantee. But, that certainly doesn’t mean you can’t size the situation up at all. There are a few ways to tell if your startup is on its way to success.

Why Most Startups Fail

Of course, you should first know what causes most startups to fail. Perhaps the largest reason is they run out of cash. Investors only give so much, both in money and time. If you’re burning through cash and there’s little or no profit, you’re obviously running a really big risk of going out of business. Another reason startups fail is due to a lack of clear strategy. Put another way, they don’t know the way and don’t have a concrete idea of how to go from one goal to another.

Most startups fail. But there is a common thread among some of the most successful startups: Consumers, not investors or tech blogs, find them first. A few examples: Facebook, Instagram, Pinterest, Most recently: Snapchat.
—Business Insider.com

Then, there’s tons of bad advice. It’s out there and if you take the wrong advice, you’ll probably see the consequences quickly. That’s your chance to act and change course to make it a lesson learned. Another reason why startups fail is the market moves in an unexpected way. They just aren’t prepared for contingencies. Or, fail to make necessary adjustments when needed.

3 Biggest Signs of Early Startup Success

But, how do you know when you’re on the right track? What tells you that things are not only going well, but likely to continue in a good direction? Here are the three biggest signs of early startup success to lookout for:

Positive cash flow. It’s no mistake the first factor in failure is due to lack of cash. If your company is bringing in cash and making a profit (that is, your intake minus your expenses), then you’re definitely off to a good start.
Customers find you. Take a quick look at the quote above and let that thought sink in for a moment. If customers are finding you without you having to identify and chase them down, you’re fulfilling a crucial need and that’s a really good thing.
Rhythmic, rock solid team. Another sign a startup is on the right path is when it’s crew recognizes they work well together and work toward goals as a team for the good of all. It means the right people are in the right positions and that’s a huge factor in success.

What other signs signal a startup will succeed? Or, what might happen which means there’s trouble ahead? Please share you thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Now is the Time to Get a Sweet Deal on Office Space

September 9, 2020 No Comments

In the midst of the COVID-19 shutdown, and the simultaneous rise of WFH or work-from-home dynamic, commercial real estate is steadily on the decline. With many businesses closing and others surviving on minimal staff, office space, retail locations, and other commercial real estate is and will continue to experience a huge vacancy rate. While that’s not good news for them, for savvy business owners, it presents a prime opportunity. Meaning, it’s very possible to lease (or buy) commercial property for a really good deal. The Buy Low, Sell High Strategy Everyone’s heard of the old “buy low, sell high” investment strategy. But, only those who actually act on it are the ones who benefit. When the market is down, investment advisors often tell their clients to buy why everything is on sale. However, too many people are just too risk-averse and don’t follow the advice. Asking rent prices have yet to fall, which is typical in a down cycle as landlords try to hold out as long as possible, says CBRE chief economist Richard Barkham. At the same time, Barkham says, landlords are eager to fill space, so they’re willing to offer a bevy of concessions to the right tenants, including rent-free periods, build-out expenses, and flexible lease terms. —Inc.com In fact, more people tend to cash-out when the market goes through a downturn. They “realize” an otherwise “paper loss.” The point obviously being that the adage of “buy low, sell high” really works. And, it works so well, it’s repeated over and over. The real trick is to just do it. How to Negotiate the Best Office Space Deal With all that said, now is the time to take advantage of the circumstances and land a sweet deal on commercial space. Here are some helpful tips for how to lease commercial space at a substantial discount: How long has the space been vacant? Learn how long the space has been vacant because it will give you a sense of how eager the landlord or owner is to fill it. Of course, the longer it’s been empty, the more motivated the landlord will be to sign a new lease. Are there other interested parties? If there aren’t any other companies interested in the space, that will definitely work in your favor. Simply put, the less interest, the better for you. After all, that means there’s no competition. Does the property have other vacancies? A property landlord or owner with multiple vacancies will be far more willing to negotiate in order to fill as much space as possible. Learn about subletting policies. If it’s allowable, subletting can help to offset the cost of leasing commercial space and make it even more affordable. Do your homework on similar properties. Another thing you can do is learn about similar spaces. Use this knowledge to negotiate a better deal. For instance, if another landlord/owner offers a better lease rate, you can use that as leverage to bargain on a property for less. What other suggestions do you have? Please share your thoughts and experiences by commenting and giving others some valuable advice! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Managers should Avoid these Phrases to Avoid Killing Employees’ Trust in Their Leadership

May 5, 2022 No Comments

When it comes to the workplace, trust is key. Employees need to trust their managers in order to feel comfortable taking risks and be productive. Managers, in turn, need to trust their employees in order to delegate tasks and give them the freedom to make decisions. Unfortunately, many managers say things that damage this trust relationship. So, let’s discuss five of the most common phrases that managers use that kill employees’ trust. Words can Speak Louder than Actions Managers should avoid the following phrases in order to maintain a trusting relationship with their employees. Trust is essential for a healthy workplace and these phrases can damage that trust relationship. Employees need to feel comfortable coming to their managers with questions and concerns, and they need to know that their manager will be open and transparent with them. The employee-manager relationship is one of the primary components to a strong organizational structure. Employees rely on their managers for career development and guidance on how to improve their skills. One of the elements of a successful employee-manager relationship is trust. When the sense of trust is strong between an employee and manager, it adds efficiency to other elements of workplace productivity. —Houston Chronicle Small Business When managers use these phrases, it sends the opposite message. It makes employees feel unimportant and disregarded. It creates uncertainty and frustration, which leads to a lack of trust on the part of the employees. And that, of course, results in a negative impact on morale, productivity, and overall company culture — three poison pills that can cause actual, long-lasting damage. Five Phrases Managers should Avoid to Avoid Destroying Employee Trust We’ve all heard the age-old wisdom about sticks and stones breaking bones but words never inflicting harm. Of course, this philosophy is entirely contextual because we all vividly remember instances when words cut deep. While these phrases aren’t intended to insult or hurt, they nevertheless undermine your authority, respect, and relatability. So, avoid using the following phrases because they will slowly kill employee’s trust: “I’m the boss, I don’t have to explain my decisions.” This phrase is incredibly damaging to trust. Employees need to feel like they can come to their managers with questions and that their manager will be open and transparent with them. When a manager uses this phrase, it sends the message that the employee is not valued and that their opinion does not matter. It also makes the manager seem like they are hiding something. This can lead to employees feeling uncomfortable coming to their managers with questions or suggestions, which can hurt productivity and morale. “I’m too busy to deal with this right now.” This phrase often comes across as dismissive and unprofessional. It sends the message that the employee’s concerns are not a priority and that their manager is too busy to deal with them. This can make employees feel unimportant and disregarded. It can also lead to them feeling like they are not able to come to their manager with problems or concerns, which can hurt morale and productivity. “I’ll get back to you.” This phrase often comes across as ambiguous and frustrating for employees. Employees want to know what is going on and they want answers from their managers. When a manager says this phrase, it sends the message that the employee is being ignored and that their question is not important. It also creates uncertainty, which can lead to employees feeling anxious and stressed. “I’m not sure, let me check on that.” This phrase is often used as a way to avoid making a decision or taking responsibility. It sends the message that the manager is not capable of making decisions and that they are not in charge. This can make employees feel like they are not being taken seriously and that their concerns are not important. It can also lead to frustration and a lack of trust on the part of the employees. “That’s not my job.” This phrase communicates that the manager does not care about their employees or their job responsibilities. It sends the message that the employee is unimportant and that their job is irrelevant. This can lead to employees feeling unvalued and unmotivated. It can also cause them to feel like they are not able to come to their manager with questions or concerns, which can hurt morale and productivity. Which other phrases would you include in this list? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Groupon Teaches Us These Lessons About Discounts

December 1, 2017 No Comments

Groupon is up in its latest earnings report. About 18 percent and that’s welcome news for the e-commerce discount platform. Headquartered in Chicago, Groupon launched in November 2008. It rose by leaps-and-bounds. That is, until recent years, when it experienced big time losses. In fact, its 2011 Q4 figures revealed a whopping $9.8 million loss. Ironically, that comes about a year after the Wall Street Journal forecasted it to reach $1 billion in sales faster than any other company in history. Today, it’s a different story. And, this business model teaches us all important business lessons about discounts. The Downside of Discounts Big companies aren’t immune to blunders. Right now, McDonald’s is trying a bold new experiment. There’s no guarantee it will work. But, the company won’t know unless it tries. Groupon’s saga tells us much about discounts. For participating businesses, Groupon vouchers do get more customers through the door. But the question to ask is if those same individuals would have patronized the business without a Groupon? Your marketing message plays a huge role in conveying the true value of your products. Even if your prices aren’t the lowest around, emphasizing the added value that customers get from your store, such as any guarantees you offer, personalized service or better-quality merchandise than the competition, can convince shoppers your prices are worth it. —Small Business Trends Additionally, there’s another phenomenon at play. A large majority who use a Groupon do not repatronize a partner business. After all, why pay full fare? Moreover, it does cause customers to seriously think about the value of non-discounted purchases. That starts a cycle. A business partners with Groupon. That business serves more customers during the discount period. Then, visits go back to the previous levels. If it comes at a net cost per ticket, there’s obviously no benefit. So, they do not participate in Groupon discounts again. Product and Service Discount Advantages But, this isn’t always the scenario. Some businesses gain a net plus from working with Groupon. Which means there are some distinct advantages to offering discounts on products and services. Here are the benefits to offering discounts to your customers: Attract more customers. It’s no secret people like deals. So, play to this by offering discounts on key items or services. You’ll attract new customers and this will increase repeat business at the same time. It’s a great way to advertise and to be seen as providing real value. Increase sales. With more new customers and repeat business, you’ll have more sales. If you choose the right discount strategy, you’ll come out ahead and that’s money you can use in different ways. For instance, you can purchase more inventory or put that extra sales money to other uses. Free up space. Discounts can help to free up precious shelf and/or cabinet space. This is a great move for small, independent retailers because it allows them to offload certain things to bring in new products. Bolster reputation. Offer discounts to certain people, like military and first-responders. This shows your business cares and that’s a positive for its reputation. You can do the same with elderly customers or families with small children. Do you offer discounts? If so, what kind and how much? Have you found discounts help or hurt your business? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Biggest Signs of Early Startup Success

Why Most Startups Fail

3 Biggest Signs of Early Startup Success

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Now is the Time to Get a Sweet Deal on Office Space

Managers should Avoid these Phrases to Avoid Killing Employees’ Trust in Their Leadership

Groupon Teaches Us These Lessons About Discounts