Business Education

Why a Recession Spells O-p-p-o-r-t-u-n-i-t-y for Successful Entrepreneurs

As every savvy business owner knows, their company is not only subject to seasonality in at least some industries, but it can also be positively or negatively impacted by the overall national economic landscape and more particularly, the macroeconomy of their local community. So, there are cycles, or ups and downs, which more or less can be predicted. However, these factors don’t necessarily dictate every aspect of how they operate their businesses during good or bad times. Entrepreneurs still have quite a bit of say and it’s essential to understand that business owners are not totally helpless in uncertain times. The smartest and boldest entrepreneurs know and understand this, which is why they use recessionary periods to their advantage. One of the biggest debates in the business world really centers around individual personalities. In other words, two business owners in the same industry competing for the same consumer dollars might react in two totally different ways. When inflation spikes, interest rates go up, and consumers pull back their spending, one entrepreneur might also decide to pull back and scale down.

This is not the time for inertia and despair or running around like the proverbial scaredy-cat. Instead of dwelling on the negatives as so many others do, realize that their preoccupation gives you a chance to one-up them. In fact, to be really contrarian about it, think of this catastrophe as a gift. The gift of challenges and opportunities. Challenges are what make business so exciting. Now’s the time to look for new, sustainable opportunities to grow your business and make it stronger. —Inc.com

Meanwhile, the other business owner looks at this as an opportunity. Although consumers may be pulling back a bit, it doesn’t mean they can totally go without the goods and services they need. And, seeing that one of his chief competitors has decided to play it safe means there is a serious opportunity to be had for the bold entrepreneur.

How Successful Entrepreneurs Turn a Recession into Opportunity

Unfortunately, as stated above, this really depends on personality or more particularly mindset. Entrepreneurs who play it safe and try to ride out economic downturns will probably survive and even grow when things turn around. But, those people who played it safe might see a competitor grab up more market share because that rival decided to do the opposite. Here are some of the ways savvy business owners can take advantage of a recession:

Increase advertising. The companies who continue to market their businesses aggressively will practically always reap the rewards and gain a return on investment. While others cut back on their advertising, entrepreneurs who are bolder and continue or increase their advertising put themselves in a stronger position in the marketplace.
Buy out competition. This is something that happens regularly in certain professions, for instance, financial advisors. When one individual retires or a firm is winding down its operations, buying a book of business is quite common. Think about doing the same in your industry and how that could benefit your company in the long term.
Streamline operations strategically. It’s not all just about going bigger, it’s also about being smart about how you’re running your business. Take some time to review your logistics and budget to see where you can streamline things to cut expenses while maximizing revenue.

What other suggestions do you have? Please take a moment to share your thoughts and experiences so others can learn from you! Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Network Event Do’s and Don’ts

May 16, 2017 No Comments

Some people have an innate ability to walk into a room full of strangers and start connecting and uncovering business contacts galore. They seem to glide through the room, smiling, freely introducing themselves, while holding conversation. These people know how to read a room and individuals naturally. Then, there are people who move through events quickly, collecting an astounding number of business cards while shaking hand after hand. The difference between the two personalities couldn’t be more stark. One is making new contacts, the other is doing little more than trying to bag new clients. It’s obvious which one will benefit and which one won’t. The purpose of networking events is to do just that: meet new people and have conversations. It’s how you go about it that makes all the difference. Connecting with people is an art form, and, is learned over time. Before there’s any real connection, though, you’ve got to be prepared to meet new people. Network Event Do’s and Don’ts There’s a huge difference between meeting new people and connecting with them. Meeting a group of new people is even more of a challenge than meeting a single person or a very small group. Attending a networking event is something that stirs excitement and anxiety. These events tend to be noisy, where it’s not easy to hold a conversation. What’s more, you’re expected to participate and interact with several people. We network because we don’t work and live in a silo. Due to human nature, we tend to trust doing business with people we know or who are referred to us. People often think of the need to network whenever their jobs are in jeopardy, or whenever they’re in search of new business. —Career Builder When you go to a networking event, you do so to open new doors. There won’t be time to establish a relationship and connect with others, but there will be plenty of opportunity to introduce yourself and hold brief, casual conversations. To accomplish this simple, yet challenging feat, you ought to know the do’s and don’ts of event networking. Network Event Do’s Go prepared. You ought to have a brief list of topics to discuss and/or experiences to share. It’s okay to go over these out loud and practice introducing yourself. Just don’t practice too much, or, it will sound rehearsed and artificial. Keep one hand free at all times. Keep your dominant hand free of snacks, drinks, and other objects. You’ll be able to freely shake hands without having an awkward moment to find a place to temporarily set something down. Know who to approach. Just because someone is standing alone doesn’t mean you ought to rush over to approach. Take a moment to read his or her face and body language. When you do make eye contact, confidently approach and introduce yourself. Look for opportunities to offer help. One of the most powerful and likable gestures is to ask questions and offer your assistance. Only offer to help when it’s realistic and be sure to follow-up. Don’t make the mistake of over-promising or over-extending. Network Event Don’ts Believe collecting business cards is a measure of success. Remember, the purpose of attending these events is to meet people — not just to collect business cards. If that’s all you accomplish, the whole exercise is for naught. Be on the lookout for someone else while speaking with another. If you do have the misfortune of getting into a boring conversation, find a gracious and courteous way to excuse yourself. What you should avoid is awkwardly scanning the room for someone else to speak with to break away. Try to impress others with jargon or facts. Using big words, insider jargon, or trying to impress with a barrage of facts is a turn off. It’s pretentious and tells others you lack self confidence. What’s more, it keeps you from having a genuine conversation. Speak over or interrupt others. This sounds obvious, but, it’s something that can be unintentional when you’re nervous. When you do approach someone else and introduce yourself, be courteous, ask polite questions, and listen. Yes, the purpose of attending Network Events is ultimately to acquire new business. However, do not go to a Network Event if that is your initial purpose. Your priority for attending a Network Event is to develop Relationships which you can foster over time into a business opportunity with that connection or with someone they introduce to you. Minimize your agenda, and spend time listening and asking the other person questions about themselves and their business. Show them genuine interest and watch how your relationship moves to trust even during the Network Event. Isn’t it more rewarding to leave a Network Event with 3 or 4 really good, meaningful connections where both of you developed a relationship and can follow up after the event to further explore opportunities together? When is the last time you attended a Network Event and made some meaningful connections that turned into real business? [shareaholic app=”follow_buttons” id=”26833294″]

Effective New Year Employee Retention Strategies Businesses can Use

December 29, 2022 No Comments

When the new year arrives in earnest, some employers will be taken by surprise when a few employees announce they’re leaving their companies. The reasons for this are many, but there are some which are far more common than others. So, it’s critical for business owners and managers to know these motivations to address any shortfalls right away. Plus, how to proactively retain talent so productive individuals don’t leave. Common Reasons Employees Leave Companies There are a number of common reasons that employees leave companies, and understanding these reasons can be important for businesses looking to retain top talent and maintain a healthy and productive workforce. One major factor is the need for career advancement opportunities. Many employees are looking for opportunities to grow and advance within a company. If they feel like they are hitting a dead end or there are no clear paths for advancement, they may look elsewhere for opportunities that allow them to continue to grow and develop. Poor management is also a big reason. Employees want to work for leaders who are fair, supportive, and transparent. If they feel like they are being micromanaged, or if they are not receiving clear direction or support from their manager, they may start looking for a new job where they feel like they are valued and supported. Additionally, a poor work-life balance can play a role. A demanding or inflexible work schedule can be a major turn-off for employees, especially if it is causing them to feel burnt out or like they are unable to attend to other important aspects of their lives. Maximizing employee retention is one of the best ways to make sure your small business thrives. Unfortunately, staying fully staffed can be challenging in today’s business environment. According to Bank of America’s 2022 Small Business Owner Report, 41% of small businesses say labor shortages are currently impacting their businesses. —Bank of America Small Business Lack of recognition or appreciation is most definitely the cause of team members leaving companies. Employees want to feel like their hard work is being noticed and appreciated. If they feel they are being taken for granted or not receiving adequate recognition or praise, they may start looking for a company where their contributions are clearly more valued. Unsurprisingly, poor compensation and benefits are big ones. While salary is not the only factor that motivates employees, it is an important one. If employees feel like they are being underpaid or not receiving competitive benefits, they may start looking for a company that compensates them with higher pay and/or benefits. Last but not least, a negative company culture. A toxic or unhealthy company culture can be a major deterrent for employees. If they feel like they are not a good fit with the company’s values or culture, or if they are experiencing harassment or discrimination, they may decide to leave in search of a more positive work environment. So, it’s important for businesses to understand the common reasons that employees leave and to make an effort to address these issues in order to retain top talent and maintain a productive and satisfied workforce. How Businesses can Retain their Employees Retaining top employees is important for businesses of all sizes, as it can help to reduce costs associated with hiring and training new employees, as well as improve overall productivity and morale. Here are some strategies that businesses can use to encourage team members to stay: Offer competitive compensation and benefits. Employees want to feel like they are being fairly compensated for their hard work. Offering competitive salaries, bonuses, and benefits can help to keep employees satisfied and motivated to stay with a company. Foster a positive company culture. A positive company culture can be a major factor in employee retention. Creating a culture that is respectful and supportive can help employees feel more invested in their work and more likely to stay with a company. Provide opportunities for career advancement. Employees want to feel like they are growing and developing within a company. Offering opportunities for advancement, such as training and development programs, can help to keep employees motivated and engaged. Encourage work-life balance. A demanding or inflexible work schedule can be a major turn-off for employees. Encouraging a healthy work-life balance, such as through flexible scheduling, hybrid, or WFH options, can help to keep employees satisfied and less likely to look for new opportunities. Show appreciation and recognition. Employees want to feel like their hard work is being noticed and appreciated. Regularly thanking and recognizing employees for their contributions can help to build a positive and supportive work environment that encourages employees to stay on board. Foster open and transparent communication. Employees want to feel like they are in the loop and that their opinions are valued. Encouraging open and transparent communication, such as through regular check-ins and feedback sessions, can help employees feel more connected to the company and more likely to stay. Overall, the key to retaining employees is to create a supportive and positive work environment that recognizes and values their contributions. By implementing these strategies, businesses can encourage team members to stay and foster a productive and satisfied workforce. How else can businesses prevent employees from leaving or proactively encourage them to stay? Please feel free to share your thoughts and experience so others can benefit! 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.