Business Education

Here’s the Big Lesson from the Mark Zuckerberg Apology Tour

Mark Zuckerberg is generating a lot of headlines. It’s too early yet to know if the old cliché “there’s no such thing as bad publicity” will eventually apply. But, what we definitely know is this is a company with too much going on at one time. Now, the merits of the scandal are in hot debate. On one hand, it’s a new practice but some marketers have come forward to explain this is just business-as-usual. Regardless, it’s started a conversation about privacy, advertising practices, and personal information security. However, this only touches the surface of the real problem — Facebook is too big.

The Facebook-Google Duopoly Example

Over the past few years, there’s been a lot of talk about the Google-Facebook duopoly. Now, it’s more apparent than ever these two companies are the center of the internet. Even more important is what this teaches us. Both companies are currently under heavy scrutiny — a result of their massive scales. Each company is far more than their core missions. Google is part of Alphabet, a huge conglomerate. As for Facebook, it owns Instagram, WhatsApp, Oculus, and more.

Getting bigger means that you need to get more organized. Working fast and loose may have been fine for your small team of superstars, but it won’t work as well with a bigger group. As your ranks grow and positions that were filled by individuals transform into teams of people, the need to stay organized becomes amplified. —Inc.com

The point here is Google is not just a search engine. Nor is Facebook only a social media network. Both are a lot more. Now, let’s distill this down to the world of small business. It’s only natural to grow and expand into new territory. The question is, when does that compromise the company’s core? In other words, growth isn’t always a good thing.

How to Get Back to Business Basics

One critical lesson here is the fact that when a business grows, does it grow to meet the needs of its customers? Or, does it expand to other areas for the sake of chasing profit. Of course, there’s nothing wrong with adding new revenue streams. But, there is something very wrong about letting it harm core competency. Here’s a few suggestions for how to get back to business basics:

Listen to your customers. More customers are one sign that your business is growing. As your customer base increases, it becomes more and more difficult to stay in-touch. So, start listening in earnest again. There are several ways to do this beyond personal interaction, if necessary. Surveys, email, and more are valuable resources.
Give your team a real voice. Just because your business is larger doesn’t mean that you need to only rely on a few key people. Chances are excellent, there are team members under management who have valuable input. Solicit from them periodically and take their insight to heart.
Purge all the extra stuff. When a company grows beyond its initial offerings, it breaks its old parameters. Which means often journeying out to untested waters. Problems inevitably ensue. So, stop trying to force what’s not working and let it go.
Get an outside perspective. Companies can easily lose sight of their identity. If a random person can’t immediately identify what your company does, or names off a bunch of things confusingly, that’s a bad sign. Bring in an experienced business coach to give you that much-needed outside perspective.

Have you experienced a time when you needed to get back to basics? What other advice would you offer? Please share your thoughts and experiences by joining the conversation!

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

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Considering Setting Up an Employee Profit-Sharing Plan? Here’s What You Need to Know

March 10, 2022 No Comments

When it comes to small businesses, one of the biggest challenges is finding ways to keep employees happy and motivated. This, especially in challenging times such as these, when there’s a labor shortage and even qualified individuals aren’t seeking new opportunities or becoming statistics of the Great Resignation. What’s more, it can be tough to compete with larger businesses when it comes to salary and benefits. One way that small businesses can attract and retain top talent is by setting up an employee profit-sharing plan. In this blog post, we will discuss the pros and cons of employee profit-sharing plans and why they are so beneficial for small businesses. Biggest Concerns Small Business Usually Have about Employee Profit-Sharing Plans There are a few drawbacks to setting up an employee profit-sharing plan as well. Obviously, the biggest concern is the expense. There can be some costs associated with setting up and maintaining a profit-sharing plan. Doing so can be complex. Profit-sharing plans are generally nuanced, and it is important to make sure that they are set up correctly. Otherwise, it could create problems down the road. Moreover, these programs usually include tiers, making them even more difficult to establish in the beginning. A profit-sharing plan, also referred to as a deferred profit-sharing plan, gives employees a share in the profits of the company based on the company’s earnings. Employee profit-sharing plans have distinct advantages, which contribute to a small business’s overall morale and bottom line. —Houston Chronicle Small Business Employee trust is yet another common issue. Employees need to trust that the company is doing well and that their hard work is actually contributing to the company’s success. If there is a lack of trust, employees may be less likely to participate in the profit-sharing plan. In other words, at least some plans require employees to give up part of their immediate compensation (or future earnings). Pros of Employee Profit-Sharing Plans However, though downsides do exist, there are several benefits to setting up an employee profit-sharing plan. Some of the biggest benefits that create win-win situations for employees and businesses alike include: Increased morale and motivation. When employees see that they are benefiting from the company’s success, they will be more motivated to work harder and be a part of the company’s success. Increased productivity. When employees are motivated and feel appreciated, they will be more productive in their work. This boosts overall output and contributes to a healthier bottom line, which likewise contributes to the profit-sharing model. Attracts and retains top talent. Employees want to know that they are valued and that their hard work is being duly rewarded by making the company financially stronger. A profit-sharing plan shows employees that you care about them and want to reward them for their hard work. Overall, setting up an employee profit-sharing plan can be a great way to attract and retain top talent at your small business. While there are some drawbacks, the pros far outweigh the cons. If you are considering setting up a profit-sharing plan, be sure to consult with an accountant or financial advisor to make sure you are doing it correctly. My firm has helped many of our Clients set up profit-share plans that have been very effective in providing incentives for those employees who qualify and contribute to the success of the business profitability. What other advantages and disadvantages would you include? Please share your own thoughts and experiences so others can make a more informed decision. Interested in learning more about business? Then just visit Waters Business Consulting Group.

How to Get Business Referrals in Secretive Industries

May 16, 2017 No Comments

Referrals are one the most important parts of a successful business. When these come in and you deliver, more are likely on the way. In addition, these are a surefire sign that those you serve are more than satisfied and want to show support and appreciation. Unfortunately, there are industries which operate under a significant amount of discretion (read: secrecy). Examples are sports agents, investment bankers, ghostwriters, healthcare providers, and even business development professionals. Because of this, it’s a lot more difficult to get referrals. You can’t necessarily ask your clients to spread the word since they don’t want others to know what you’ve done for them. To the outside world each client is successful on his or her own and not because you provided advice, action plans, and of course work product. Although you feel a sense of accomplishment and pride, you can’t just use these experiences freely. How to Get Business Referrals in Secretive Industries Referrals are a cornerstone of doing business, and it’s what entire entities are based upon — examples include Angie’s List, Yelp, Healthgrades, and Home Advisor. These services provide consumers with real customer reviews and that relatable trust is what gets people to pickup the phone. In some industries, like those listed above, the provider might not be able to tap into the same resources. Your best source of new business is referrals from happy customers or clients. You cannot receive a better lead than one that has been sent your way with a strong referral. You cannot have a more motivated prospect arrive in your store or restaurant than someone sent there by a raving fan. —Forbes If you want to get referral business, but are in a business that’s subject to secrecy, you can still do so you just need to be a little more creative. This is especially true if it’s not just based on discretion but also guaranteed with non-disclosure agreements. Here are some ways to get business referrals in secretive industries: Use a “degrees of separation” approach. One way to get referrals when you’re subject to secrecy is through former industry insiders. Connect with individuals who use to be in the business and speak with each about being a brand advocate. The friend-of-a-friend approach is also worth giving a try to get more referrals. Ask a willing client to speak on your behalf. You might have a current or former client or two that are willing to speak with others about doing business with you and their experiences. Take advantage of this and show your appreciation with a gift, discount, or another way of saying, “Thank you.” Give potential customers more control. One thing that scares new prospects is the fear of making a big and/or long-term commitment. To overcome this objection give potential customers flexible and short terms. Openly demonstrate your plans. Possible customers might also be unsure of what you’ll be able to deliver — because of this, the secretiveness balloons into a larger problem. To combat issue openly demonstrate your plans and let him or her evaluate and ask questions. Another thing you can do is to give away a little to entice potential clients to doing business with you. By doing so you’re demonstrating your confidence in your abilities and willingness to do what it takes to earn his or her business. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

Why Too Much Business is Bad for Business

May 24, 2017 No Comments

We all know that a business without much business, that is sales, usually sails slowly into the abyss. In some scenarios, a lack of sales starts a fantastic slide into oblivion quickly, causing the organization to grind to an abrupt halt. Regardless if it’s a slow bleed to death or a rapid demise, the end results are the same. This is what most first-time entrepreneurs know and fear, which is why they put all their resources into an astonishing effort in a race to success. While this scenario is certainly common and there are countless examples of companies wanting to dissolution, there’s another situation which can manifest and cause the same outcome — too much business. Why Too Much Business is Bad for Business Sure, it’s paradoxical, but nonetheless true: too much business, too many sales, is bad for business. It’s a strange phenomenon, but, it can’t be allowed to become a reality. When a business grows too fast, it runs the risk of outpacing its own abilities and that can cause customers to be shortchanged and to outpace the businesses capital resources. That’s nothing short of a disaster waiting to unleash itself, sabotaging a company from the inside. Incremental change rather than big splashy launches? Caution rather than risk? That may not sound like the profile we’ve come to associate with entrepreneurs, but it’s exactly this somewhat paradoxical mix of creativity and innovation combined with restraint, regulation and caution that is driving the next phase of [the country’s] business growth. The culture of prudence that has sometimes led [the country] to be seen as an economic lightweight has, in these tough economic times, proven to be our greatest asset. –Ivey Buiness Journal A company can’t overreach or it will be overwhelmed. We’ve all seen the real world effects when Fortune 500 companies rush a product to market. The Sony Betamax, New Coke, the Apple Newton PDA, and Facebook Home are some of the most high profile product failures. These demonstrate that not every new product will work, and, show that even large companies can make huge marketing mistakes. These major brands, though, can push through such bad experiences because they have the capital, brand recognition, and diversification. For a small to medium-sized business, this usually isn’t the case and there are real dangers in growing a company’s sales too large, too quickly because: Your team members can’t keep-up with the demand. While it’s great to see a steep increase in sales, that means having to meet the demand. If your team isn’t large enough, you’ll probably opt to squeeze more out from each employee. Quality will suffer as a result and when you sacrifice quantity for quality, you’re doing your customers and company a disservice. You rush through the hiring process. Another option you might exercise is to bring on new team members. The problem with this is, in an environment where there’s not enough hands-on-deck, you’ll have to expedite your hiring process. This can easily lead to bringing people on-board without the proper skill-set, attitude, or work ethic. So, you’ll have to suffer the pain of replacing employees and incur the expense of additional training. You need additional tools to sustain output. The tools of the trade are hugely important to providing quality work. When there’s a hurry to get things done, you might not have enough at your disposal. The remedy will probably be impulse purchases and that means heavily risking buyer’s remorse. You can’t effectively manage the company. Every successful business owner knows that it takes time to find and mentor good organizational leaders. This will become unavoidably apparent when there’s too much going on for your personal attention to all the moving parts. Your steep growth strains your cash flow and drains your capital reserves. Most successful business owners recognize the need for capital to start a business, but sometimes fail to realize that more sales requires more capital. Sometimes a business owner believes that more sales brings more revenue and that revenue will capitalize the business growth. Although a business owner can strategically manage the business cash flow and growth with sales to capitalize it, this must be balanced carefully and strategically. Think of the strategy like flying a plane. When a pilot takes off, the plane is on a steep but controlled ascend and then the pilot steadies the climb. If a pilot were to pull back for a steep climb and try to push the throttles and the jet to climb faster than the aircraft was capable, the pilot would burn too much fuel, create too much force and the potential risk of having the plane stall. This is similar with a business owner who pushes too many sales too fast, business runs out of cash and it stalls leaving the business to nose dive. Yet another unpleasant consequence of increasing sales beyond capacity is that you’ll have trouble responding to customer needs. If anyone is going to recognize this shortfall immediately, it will be your customers. This is why incremental growth is a sound policy. It allows you to identify gaps, learn from your small mistakes, and, to adapt at a realistic rate. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]