Business Education

How to (Re)Establish Business Relationships Post Shutdown

As you reopen your company, people you previously did business with might or might not return with you. Or, it could be the same people, but in different positions, not necessarily having the same latitude and/or resources at their disposal. These individuals, vendors or customers, will most likely continue their relationships, but it will probably be one that’s changed. So, you’ll need to re-establish said relationships and do so in a thoughtful and careful manner.

Why Business Relations are Now more Important and Fragile than Ever

Of course, whether or not you’re dealing with the same individuals and/or roles Will depend on a number of factors. It’s important to understand and accept the fact that you have no control over these situations. That means you’ll have to make adjustments on your end, in order to make the relationships work. Hopefully, the people you deal with will have some say of their own, but it’s best to hope for the best and plan for the worst.

In the early months of 2020, the COVID-19 pandemic prompted wide-sweeping shutdowns and shelter-in-place orders across the United States. Now, as parts of the country look to start relaxing these strict measures, small business owners need to think about what’s next and how they will adapt and move forward safely and sustainably. —U.S. Chamber of Commerce

As you reopen, some of the individual vendors and customers you previously worked with might not come back. Also, there’s the inevitability of personnel change among vendors you worked with prior to the shutdown. This means they’ll be some level of give and take, and you’ll need to temper your expectations from time to time until the new relationship takes form.

How to (Re)Establish Business Relationships Post Shutdown

Going forward, This new and strange dynamic will present its own set of challenges. But, with a bit of patience, tact, and along the way analysis, you can either establish new business relationships or re-establish old ones. Here’s how:

Reach out. Obviously, this is where you’ll start. Reach out to those you had the strongest relationships before. Then, to others and go down the list to eventually get to those you only occasionally worked with prior to the shut down.
Listen carefully. When you do speak to vendors and customers, make a conscious decision to actively listen. Don’t give into the urge to carry on about your business. Instead, take the time to listen carefully to them and learn about their circumstances.
Communicate clearly. By the same token, be honest about your situation, exactly where you stand, and where you expect to be in the near future. In short, under promise and over deliver.
Offer Meeting options. Not all clients, customers or partners will feel comfortable meeting in person so offer them options. We have asked our clients; would you prefer to do a video or ZOOM conference or have us meet you in person. Just asking shows you are sensitive to their concerns.
Pay on time, every time. Also, be sure not to get too far ahead of yourself so you’re always in a position to pay on time, every time you receive an invoice. Otherwise, you’re opening yourself for trouble.
Refer good vendors to others. Another thing you can do is to refer your favorite vendors (and customers) to others to show your appreciation.

What other suggestions do you have? Please share your thoughts and experiences by commenting!

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

Like this article?

Here’s What Small Business should Really Know about Retained Earnings

March 24, 2022 No Comments

The world has gone crazy. Well, it certainly seems that’s the case. Inflation continues to push up prices on just about everything. There’s a hot war in Europe that’s seriously impacting the free flow (and cost) of energy. All of this, not to mention an ongoing labor shortage, materials shortages, and plenty of other madness, wreaking havoc on day-to-day life. Of course, businesses aren’t immune to this madness — particularly small businesses. What this chaos does teach any entrepreneur or current business owner is the importance of retained earnings. But, what are retained earnings and how can small businesses build them up for difficult times that will inevitably unfold in the future? What are Retained Earnings Anyway? Retained earnings are an important part of any business. They are the funds that a company sets aside to cover expenses during tough times or to reinvest in the business. (Like now, when the entire world is topsy turvy and the economic circumstances are unstable and unpredictable, to say the least.) Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created. —Investopedia.com During normal circumstances, retained earnings are generally used to expand. Examples include hiring additional employees, purchasing new equipment, bringing in new or more inventory to sell, or even acquiring new commercial property. But, when sales slow and the business isn’t earning enough, retained earnings can be used as savings to bridge the gap. How to Build Up a Business’ Retained Earnings One of the most important aspects of any business is its retained earnings. Retained earnings are funds that a company sets aside to cover expenses during tough times or to reinvest in the business. This money can be critical for businesses when they need to maintain cash flow during difficult periods or invest in new opportunities. There are two main ways to build up retained earnings. The first is to generate profits and reinvest them back into the business. This can be done by reinvesting profits into new products, expanding the business, or hiring new staff. The second way to build up retained earnings is to reduce expenses. This can be accomplished by cutting costs in areas such as marketing and/or overhead expenses. If you want your business to be prepared for anything, it is important to have a healthy retained earnings account. By reinvesting profits and reducing expenses, you can ensure that your company has the funds it needs to weather any storm. With a strong foundation of retained earnings, your business can thrive for years to come. Entrepreneurs should also Carefully Consider Retained Earnings if Buying an Existing Business When evaluating a company’s financial statement, it is important to look at the retained earnings line item. This number will tell you how much money a company has set aside to cover expenses during tough times or to reinvest in the business. If you are interested in investing in a company, it is important to make sure that its retained earnings account is healthy and growing. What else do you think new and existing business owners should know about retained earnings? Please share your own thoughts and experiences so others can better understand this important topic. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Have You Tried the Discarded Napkin Test?

October 29, 2017 No Comments

Have you tried the discarded napkin test? Perhaps you’ve never heard of it because it isn’t an actual thing. But, this simple sociological experiment does reveal some fascinating insight into how we perceive others and gauge various environments. Don’t bother Googling it, you won’t find any on-point results. However, that doesn’t mean it’s not useful. Try the Discarded Napkin Test for Yourself The discarded napkin test is a simple one. And, it clearly demonstrates the importance of appearance. Here it is: go into a casual restaurant prior to the lunch hour rush. Crumple a clean napkin and place it on a clean but empty table. Sit nearby and watch how many people past the “tainted” table up for another. Eventually, if there’s no more tables available, someone will muster the courage to clean it off. Or, give into the frustration of the limited seating options and swipe it to the floor. Many workplaces have dress codes, particularly workplaces in industries in which image is highly valued and workplaces in which employees have regular face-to-face contact with customers. Whether you are considering setting a dress code for an existing workplace or trying to decide whether your new retail store will require employees to adhere to a dress code, consider the broad benefits and potential drawbacks — like backlash from casual-dressing employees — of such a move. —Houston Chronicle The point is, people will choose to sit elsewhere even when the only flaw with a table is a discarded napkin. That’s it. Its unpleasing appearance is enough to turn off person after person. Although a bit strange, it’s true. And, it begs the question — are employee dress codes good or bad? Employee Dress Codes Pros and Cons Okay, so there are a number of dumb office rules that drive employees crazy. But, some make sense to enforce. When it comes to employee dress codes, it’s not always cut and dry. This means, while an employee dress code can actually be a good policy, it can also be a bad idea. Here are some employee dress code pros and cons to consider: Pro — professional appearance. The single biggest benefit of an employee dress code is it provides a professional appearance. It’s especially useful in retail settings and offices. In the former, uniforms distinguish employees while the latter, business casual provides a professional yet laid back experience. Con — stifles personal style. Although a dress code does provide a more professional experience, it also can stifle personal style. That can mean rebellion, particularly in an office setting. Team members might feel an imposition and possibly a bit untrusted. Pro — provides “uniform” experience. Of course, you’d like your business to send a uniform message, which uniforms undeniably provide. However, in an office setting, this is a little more problematic. But, broad rules with clear prohibitions usually works well. Con — needs consistent policing. Now, the biggest downside of any dress code is the need to police it constantly and consistently. Otherwise, it’s just a suggestion and not enforced policy. At least, that’s the way employees will feel. What other pros and cons of employee dress codes have you experienced? Do you favor a strict dress code or a loose one? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Don’t Dare Make these Startup Customer Service Mistakes

May 5, 2017 No Comments

Your business is really your customers’ and when you stop to think about that, it puts things in perspective. You need paying customers to stay in business and when you pay them respect, you invest in your company’s future. We’ve all dealt with bad customer service and have shared horrific stories about our experiences. In fact, studies show that customers who are satisfied with a company will share their enthusiasm with two to three people. However, dissatisfied customers will share their negative experiences with eight to ten people, even as many as twenty. That shouldn’t come as a surprise, but too many business owners focus on the bottom line in ways other than customer service. They think about how to increase exposure, new opportunities, upping sales figures, and the like. It’s usually only when a problem arises, brought to attention by a particular person, that customer service is put front-and-center. By then, it could well be too late and that shouldn’t be allowed to happen. Costly Startup Customer Service Mistakes Whether you’re building your book of business or have several clients, you need to make customer service a top priority, and, one that is ingrained into everyday practice. Being proactive is essential to success in pleasing your customers, and, they will assuredly take notice. After all, we as consumers continue to patronize the same places where we are made to feel important, even if the product or service isn’t necessarily the best of the best. No matter how great your company’s product or service is, if your customer service skills are lacking, it won’t make much difference. This is especially true in today’s economy, as struggling business owners need every possible advantage over their competition. Unfortunately, far too many business owners make the same customer service mistakes over and over again, sending their customers into the arms of their competitors. —All Business.com That’s how important good customer service really is, it removes or displaces many objections, and, can be the single most powerful thing that beats out your competition. You ought to take advantage of anything and everything you can and this area is where your company can excel. What you shouldn’t do is to make one of these startup customer service mistakes: Not responding in a timely manner. Forgo those auto email replies because they deliver a message that you don’t want to send: you’re too busy to be bothered to personally respond. A simple reply shows there’s someone who cares and values the sender as a business partner. Taking on projects that aren’t within your core competency. When startups take on everything that’s asked of them, even things which aren’t part of their core competencies, they make a huge mistake. The results are highly likely to be disappointing and that can mean losing future business. Limiting your connections to your customers. Complicated phone trees and canned online forms only serve as a frustration point for your customers and send a message that you don’t want direct contact. Be willing and open to connect with your customers and they’ll feel important. You don’t follow-up with past and present customers. It’s absolutely imperative that you check-in and follow-up with past and present customers. It lets them know you value them and is a great way to build-up your networking skills. Not having a set customer service protocol. Everyone in your organization should be in-the-know about customer service protocol and follow it when needed. If you don’t establish a set of practices, you’re leaving too much to chance. Two other big no-nos are being too accommodating and being too defensive of constructive criticism. Taking on everything that’s requested to look bigger than you are is a one-way ticket to mediocrity, or even to failure. While not being able to accept and learn from constructive criticism will make you appear obtuse and/or egotistical. Be grateful for your customers and show it and that alone will do wonders. [shareaholic app=”follow_buttons” id=”26833294″]

How to (Re)Establish Business Relationships Post Shutdown

Why Business Relations are Now more Important and Fragile than Ever

How to (Re)Establish Business Relationships Post Shutdown

Like this article?

Related Posts

Here’s What Small Business should Really Know about Retained Earnings

Have You Tried the Discarded Napkin Test?

Don’t Dare Make these Startup Customer Service Mistakes