Updated on January 29, 2019
The Biggest Challenges Faced by Small Business Owners
When it comes to starting up any small business or if you’re just at your first couple years of your business, we’ve indicated the most common problems that all small businesses have faced at some point.
When it comes to health care, it is bar-none one of the most difficult parts of operating any type of small business, and it all has to do with properly managing a health care plan for your current employees. Without question, we know that the health of your workers is indeed very important. However, as group health care insurance premiums continue to rise, managing the finances for employee health benefits can be quite difficult to swing especially if you are a smaller business with only a few employees.
As the years go, business owners have started to feel their collars being tightened by the government. One extremely huge regulation now deals with the environment in which workers operate. This just simply means that acts such as the Clean Air Act of 1990 now forces financially struggling owners to completely remove air pollutants. These have also gone on to include even common chemicals and gas which contribute to the depletion of the ozone layer along with vehicles that add the levels of smog.
Don’t get us wrong, this act is in no way bad, but it does indeed provide challenges for owners who are in financial situations and others such as not fully knowing how to deal with protecting the environment or simply even proper vehicles. In addition, advertising regulations can also hinder any business. This is simply due to copywriters enjoying their work as they become extremely creative, this goes on to add a huge number of claims which have been known to be fraudulent. As such, the Federal Trade Commission has applied regulations which state that both printed and online advertising should be 100% true to their word and customers should be fully provided with the claims of the adds.
Federal Income Tax
For most businesses, every year their initial income tax rates sore as high as they can. According to the current law, the rate of tax for corporate is that of 15% for the first $50000 of income. However, they are expected to deal with a rate of 25% on their next $25000, and get this, a huge 35% on anything over $10 million. So, be sure to educate yourself on your states current rate!
Due to the continued fluctuation of the economy, no one and we mean no one can predict the economy’s outcome. However, business owners in the U.S. can utilize SBA 504 loans to aid them with purchasing both equipment and commercial property alike. And, this particular loan protects its borrowers from the continued rate of increase as a result of the economy and it also facilitates a lower finance cost. This in turn goes on to let users get the most from the applied rates of tax and it also prevents them from taking risks that lead them into trouble.
If your business is relatively small and you operate from your home, this saves your vital deductions for home office and it maximises your profit gain. However, if your book keeping skills aren’t so strong, you can indeed have a very hard time dealing with your records. In addition, cash accounting is available in the event where your business has made less than $5 million and this method is a bit more advanced than traditional methods.
When a business owner has invested into his business, Section 179 of the National Federation of Independent Businesses state that the cost is instantly deducted. As a result, your investment can now be reinvested once more to build and successfully grow your business.
Cash flow management is extremely important whether it be a simple budgeting system or an online invoice, this task can be quite challenging and even daunting. And just about every owner of a relatively small business has had quite a few problems when it came to cash flow. Be sure to track the where about of your funds, know where it is being spent and your sources of income.
As you grind daily, your passion needs to be what you’re doing, and you need to become fully obsessed with it. Because when you don’t your services and products suffer a huge deal, and your customers receive the poor end of this stick. We all know what happens after, your customer now becomes someone else’s customer. So, if you truly want to become successful or just simply more successful, you need to keep at it and become obsessed so that you give your all to your customers and your business.
Not Diversifying Client Bases
When you look at your client list, if you see those who support more than half of your income, you need to start racking in more clients. And you also need to create better deals for your long-time supporters. Because your prized pot of gold can be whisked of easily into another direction. So, when you’re still small in the game, you need to be innovative and make your clients want to stay as you bring in more because you will be in the worse position if the leave you with smaller clients who bring you very little money.
Growth vs. Quality
As time goes, any business beings to boom and grow rapidly. As such, small business owners need to think ahead as they continue to increase their services and products along with their customers. Those who haven’t planned are surely going to suffer huge losses as the demands increase. So be sure to scale without compromising the initial quality that you first started off with.
Hiring New Employees
All around the globe, hiring employees has become quite the task. This is mainly due to all the added cost that we previously stated. And, these numbers keep increasing with time, as such, all of these obstacles arise before suitable salaries can be set. However, employees are viable to any small business and they can help make the operations go smoother, so be sure to always make wise judgements when it comes to measuring your profits against your expenses.
Keeping a Calm Head
For any small business, it is important to realize that a calm head should always be maintained because at some point we all have to face these challenges. No matter what industry we are in, we still deal with all of it. So, your response in the face of a hurdle will change the outcome for your business.
Remember, obstacles can always be overcome with a calm mind.
Posted on January 29, 2019
How Are Influencers Taking Over Digital Marketing?
When you are logged into your Instagram account and you are looking through your feed at all the images and videos people have posted, you may see advertisements from time to time. There are random ads placed between posts of your friends and all the people you are currently following. This is what digital marketing looks like. You may not want to see those advertisements, but they are there because a company paid for them with the hopes of getting as much attention via the social media platform as they possibly could.
While you may not have an interest in the advertisements you are seeing, what would you think about seeing the same products advertised by someone you like, such as a social media influencer who is known for their style and uniqueness? Do you think you would stop to find out more information on the product because you trust what that person has to say, and you want to use something that he or she uses as well? Studies on the impact of social media influencers prove that most people pay attention to advertisements when their favorite influencers are in them. Marketers can increase the number of sales they are making by simply working with influencers to get them to talk about certain products and even take pictures with those products.
It Is a Natural Technique
Social media influencers are a lot like the popular kids in school – they have the looks, the personality, and so much more. Because they radiate beauty, positivity, and hopefulness, people want to see what they are doing, so they choose to pay attention to them. The influencer is just a regular person but he or she can influence others and their buying decisions, encouraging random people to buy products they may not have thought about buying beforehand. When you like someone and trust in their word, you are more willing to try a product that they claim to enjoy using.
It is easy to find advertisements on various social media sites, but up to 50 percent of buying decisions are made via word-of-mouth marketing, a type of marketing technique that often comes from social media influencers who post pictures with products and talk about how much they love them and can benefit from using them. You can easily find these individuals promoting makeup, hair care products, fitness programs, clothing, and all kinds of other items. The reason it works so well is because it is a lot like getting a recommendation from a friend you know and trust.
It Is Worth the Investment
If you want an influencer to promote your product, you can expect to pay a bit more than most marketers were paying just a year or two ago. The cost of influencer promotion is rising because of the impact it has on followers, but it is surely worth the investment. And, you should know that different influencers charge different rates. People like Kylie Jenner are naturally going to charge more because they have such a massive following, along with tons of endorsements and deals.
While you may need to spend some money to get influencers to promote your products, all you need to do is think about all the different benefits you will get to enjoy from choosing this type of marketing for your business. Many business owners like to go through social media sites and view accounts of different people with large followings while searching for the right people to promote their products. Some influencers have thousands of followers while some have millions of followers. It is not just about the number of followers but also about the engagement rates between the influencer and his or her followers.
It Allows You to Improve Your Rankings
If you are going to have an influencer promoting your products, you will need to give the individual some opportunities to post in a way that he or she is comfortable with. The individual may choose to take certain types of pictures or write out a post that provides details on how the products you provide are beneficial in some way. Even though you are giving the influencer the opportunity to have things his or her way, it will still work out for you in the long run because those who follow this individual will like the content and possibly share it with others.
When your brand is mentioned in a post and that post is getting shared quite frequently, your Google rankings may quickly start to improve. The influencer has a chance to stay as creative as possible while promoting the products you sell, and you get to improve your rankings while gaining a lot of new customers throughout the process. You can even continue keeping track of the number of sales you are making with help from the influencer by having that influencer provide his or her followers with a special code to use to get a discount on products.
You Can Bring Your Brand to Life with an Influencer
When you are trying to make some changes to your brand and you want to reach out to a new audience, an influencer is one who can bring life to your brand. Figure out what kind of story you want to portray and then select influencers who fit well with that story. It is good to choose the right people who can create a hype surrounding the products you can offer.
Updated on January 29, 2019
Learn 5 Common Business Misconceptions
Assumptions are defined as ideas that are thought of as true prior to making decisions. Unfortunately, assumptions happen a lot in the world of business too, especially when someone might be developing their strategies, doing planning, and making crucial decisions. Such conjectures typically get standardized as disclosure of risk and uncertainty.
Most of the time, business happens in relatively unsure settings, and it’s actually necessary to make certain assumptions in order for stratagem to move ahead. Threats can be recognized through documenting assumptions.
Many times, you might come up with some fresh ideas once you brainstorm some likely assumptions that can help you in coming up with your different business strategies.
Here are 5 kinds of frequent business assumptions:
1) Financial Assumptions:
Even when profits are made, it can take months to years to pay down any initial investments. Many early enterprises are thought to fail because the owners charge in thinking that their sales will support their business operations. The imagine that their sales volume is going to be so great that they’ll make enough money to cover operations, pay debt service obligations, and still make a profit. That’s rarely true for a new business though, so they need to account for loan amounts and investment figures needed to operate their business until actual profitability in a few years in their business plan that they present to others or use on their own.
2) Assumptions About Their Customer Base:
Another big assumption is that customers are going to line up to buy any products and services offered. The if you build it, they will come attitude assumes that the volume will be high enough to come up with enough sales for there to be consistent long-term profit. Still, you should factor in that many customers will stay with competitors. It’s wise to figure out two numbers. The first is how many customers you need a day to make enough sales to meet your overhead. If that’s 50 people a day, then you need to aim for 250 to 500 in order to be sure you actually make money.
3) Resource Assumptions:
It’s very dangerous to assume that key talent is going to be present and available. While you can certainly advertise your openings to the best talent out there, they might either be rising up someone else’s ladders or starting their own firms and gigs. It’s quite essential to grab whatever talent you can and then curate them internally to fill your needs.
4) Assumptions About Profitability:
Every entrepreneur has some level of ambition down deep inside, and profitability is a specific ambition. On the other hand, the assumption of profitability must be validated through market research, sales projections, and financial planning that is all based on hard data and grounded reality. Once you can cover overhead and development, think about paying down start-up costs and debt, and only then can you start thinking about profit. Eventually, your pricing strategy has to factor in sales volume and profit margins.
5) The Expertise Of Management:
Products aren’t created equally or automatically, and businesses don’t run themselves. Starting on the plan or assumption that only the company founders alone can run their business to profit will always be a road to ruin. A company creator might come up with bright ideas for products and services the market hasn’t seen before. However, that won’t mean they come already educated and skilled in doing things like organization, marketing, legal matters, tax issues, financing, and accounting, among the million other things it takes to run a business.
Dilbert and Dogbert Discuss the Idiocy of Preposterous Business Assumptions
There are of course other misconceptions and assumptions in the world of business, but these are the 5 big ones.