While most are familiar with the two of its prominent aspects, which are inflation and recession, there is more to it. And among those stagflation is one of the biggest concerns for economists. 

It is significantly rare and due to its static nature established businesses do not get affected by it. Although budding companies on the other hand might face difficulties while navigating stagflation.  

This blog will help you completely understand this economic condition and how you can sustain your business should it happen. 

What does Stagflation Mean?

According to economists, when the economy gets stagnant or in recession for a long time with probable inflation rise is called Economic Stagflation. It occurs due to high inflation in the economy and rising unemployment issues.

The name “Stagflation” was first coined in the 1970s to refer to a situation with both high inflation and unemployment rates.

During this period of time, the demand for commodities is not that strong. It has a strong effect on the globe’s central banks, including the US Federal Reserve. 

While the Fed usually boosts economic activities by cutting internet rates, such measures would only negatively and theoretically increase inflation even higher during this time. This results in even loss of clients, who then resort to affordable yet in saying. 

How Can Stagflation Affect a Business?

This is notorious for leaving companies in a crunch, but the situation gets even worse for small businesses. Under usual circumstances, a company would increase its prices, remaining confident and competitive. Instead, businesses remain calm as their competitors are also going through similar issues. 

The increase in cost makes everything extremely unaffordable. As a result, more people would lose their jobs, and the ones the company kept would not receive a proper hike. 

Some employees would resign to find better-paying jobs that would help them cope with the drastic hike in prices. This creates a vicious cycle of a lack of employees and a low number of consumers. 

Now that its fundamentals are cleared let’s understand how your business will be navigating stagflation. 

Tips to Navigate Stagflation

One cannot stand still during such unprecedented times and expect to have no negative repercussions. Especially if you are a small business, you must take calculated actions during stagflation, so your company does not sustain much loss. 

So, if you were wondering about “how to navigate stagflation”, the following tips are some great ways to tackle the situation. 

• Cut Costs in Your Businesses

Since prices rise during such economic conditions, you should try to cut down on costs as much as possible. This way, your overall expenditure would not get affected. As yourself and your team questions like:

1. Can you get discounts by purchasing in bulk?
2. Are there ways to reduce the logistics costs?
3. How much energy can you cut down without affecting productivity? 

These are just some instances of many cost-cutting solutions you can come across depending on your business. However, ensure that you are taking well-thought decisions and not randomly reducing funds allocated for different aspects of your company. 

• Boost Quality

It is common for companies to increase the price of their services and products during economic stagflation and inflation. But if you are simply going to ask for more without giving anything extra, your clients will leave. 

Hence, it would help if you also focused on improving the quality of your assistance and goods to make them worthy of the price you charge. Understand, here, making your consumers believe that you are bringing something new and improved is more critical. 

So, to make this tactic effective, you need to have a strong marketing plan as well. 

• Use Investing Strategies 

Other than reducing costs and asking for more from your consumers, you can also utilise the stagflation itself. Invest into channels that perform great during such economic conditions and try to gain funds to pay the rising prices of your bills. 

Some investing strategies that can help you during this time are: 

1. Sticking to value and cyclical stocks 
2. Applying the ‘barbell’ strategy
3. Avoiding growth stocks 
4. Try to go for ‘price setters’

Surviving stagflation will become easier if you engage yourself in these the moment you realise the market has stagnated. 

• Becoming a Landlord

While your business revenue would drop, stagflation tends to increase rent prices. Hence, if you own certain properties, this is time to leverage them by renting them out. And if you already did not, consider purchasing properties which might even include the building your company operates in. 

The positive side of following through with this tip is that you can keep renting your properties even after the economic conditions have stabilised. This way, you will have a constant flow of funds to utilise and expand your business, making it ready for navigating stagflation in future. 

• Improve Productivity 

Another way to tackle stagflation is to improve your company’s productivity without significantly increasing your business expenses. For example, try to automate your work procedure, purchase required machinery and find ways to produce more in less time.

• Make Most of Currency Deprecation   

Just like inflation, stagflation too affects the domestic currency negatively. 

If you mostly sell products, a drop in currency value would increase sales as this would be like a discount to your customers. However, if you purchase them internationally, a lot of instances can happen depending on how your vendors charge you. 

A great way to navigate this situation is to get support from foreign exchange specialists. Multiple online alternatives, such as The Currency Club, are available in the market. These institutions offer solutions for foreign exchange risk management, international payments, etc., keeping your business prepared for all sorts of economic crises. 

• Tightening Account Receivable and Payable

During such circumstances, you would want to get money quicker while spending it at a slower pace. Therefore, you would have to reduce your late account receivables and ask the vendors if you have the longest possible term to make payments. This will improve your cash flow, giving you more stability during such dire times. 

• Keep an Emergency Fund 

Although economic changes can be calculated, just like the weather, no one is sure exactly when they will occur. Hence, it is always wise to prepare for the worse when you are in a stable situation. 

An Emergency Expenses fund would not just help you in navigating stagflation; you can use it for multiple other instances as well. 

But how much should you have in your emergency expenses? 

Professionals believe you should have enough to sustain your business for six months at a stretch. Also, revise the fund you have there every year after creating a rough budget for your company. 

Conclusion 

Just because stagflation hardly seemed to have occurred in the past few decades does not rule out its chances of happening. With the world economy shifting, it is possible that some countries experience it firsthand.

Instead of depending on last-minute resorts to overcome that situation, use this blog as your guide. It will make navigating stagflation a more straightforward endeavour and help you stay prepared for the worst. 

The post A Small Business Guide to Stagflation and How to Navigate it appeared first on Adclays.

Create a Solid Home Base

The first major step in expanding your business internationally is to focus on strengthening its presence at home. There is very little point in trying to expand if you are struggling to generate interest at your starting point. This may be different if you have a service or product that might have a better-matched target audience overseas, in which case it might be worthwhile moving the business to a more suitable country rather than trying to develop multiple locations at such an early stage.

Research Overseas Markets

An essential part of developing an international brand is to gather as much information about your potential target markets as possible. Fortunately, the digital age has made it so much easier for businesses to find out about their overseas markets and their possible competition before ever setting foot in the country. Services such as gsa-marketing.co.uk can help you and your business prepare for expanding into international markets.

Consider Franchising

If you like the idea of having an internationally known business but don’t think you could spare the time to oversee the expansion in detail, you could consider licensing your brand for other business owners to expand the name for you. This means making sure you can trust the franchisees and their handling of your brand image as this will determine whether or not your business continues to enjoy a good reputation.

Investigate International Competition

Home competition is difficult enough to deal with and so you must be prepared to do your research when it comes to potential competition in the countries you plan to expand to. This means gathering detailed information about their tactics and histories, their market position and reputation. Perhaps you have chosen to expand because you’ve seen an opportunity to move into a space with less competition. On the other hand, your new location or locations may have many competitors waiting for you. To prepare for this challenge, make sure to strengthen your brand and refine your product as much as possible.

Avoid Neglecting Your Original Location

Although the excitement of growing your business internationally can absorb much of your time and attention, it is important not to forget that your original location should still be nurtured. Unless you have decided to completely move your entire operation to other countries, the market that led you to success in the first place can continue to be a source of success and growth for years to come.

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Research Startup Loans

One option for funding a small business is to take out a loan from a bank or other financial institution. This option is often used by businesses that are well-established and have a good credit history. However, it is important to keep in mind that loans must be repaid with interest and they can be difficult to obtain if your credit score is not high enough.

For most, pursuing a startup loan is a viable option that will provide them with accurate information about the financial reality of getting a business off the ground. In the modern world, there are lots of different loans available beyond those offered by traditional brick-and-mortar banks. Look into the world of financial technology (FinTech) and you will discover plenty of companies that offer flexible loan options for new businesses.

Look For Interested Investors

Another option is to seek out investors. This can be done by attending networking events or going online and seeking out angel investors or venture capitalists. The downside to this option is that you will likely have to give up a percentage of ownership in your company in exchange for the investment. Finding the right investors can be a challenge, but when you do it will help you kickstart your business.

Bootstrapping

Bootstrapping means using your own personal funds to finance your business. If you have savings or can take out a personal loan, this could be a good option for you. The benefit of bootstrapping is that you have complete control over your business and don’t have to answer to investors. However, this option does come with some risks. Make sure you have a solid plan in place and consult with a financial advisor before moving forward.

Small Business Grants

Many people are unaware that there are grant programs designed to help entrepreneurs get their businesses running. Small business grant programs range from sponsorship-style grants from corporations to local, government-funded grants. Regardless of the source, these grants are often quite lucrative for entrepreneurs.

If you are interested in finding a small business grant, start by doing some research in your area. Most cities have a small business organization or even a dedicated branch of local government that helps people start businesses. Remember, most local governments are motivated to have people in the community start businesses, as they help stimulate the economy and create a culture in your area.

Crowdfunding

Crowdfunding platforms like Kickstarter and GoFundMe are becoming increasingly popular ways to finance a small business. With crowdfunding, you set up a campaign and ask people to donate money toward your business goal. In return, donors usually receive perks like early access to your product or their name listed on your website. If you go this route, make sure you set a realistic goal and offer compelling perks to entice people to donate.

One benefit of this option is that you retain full ownership of your company. However, the downside is that it can be difficult to raise enough money using this method and there is no guarantee that people will donate to your campaign. While crowdfunding is not as popular as it once was, it remains an excellent option, especially for those who don’t have major startup costs.

Angel Investors and Venture Capitalists  

Angel investors and venture capitalists are individuals or firms that invest money in exchange for equity in your company. This option is best for businesses that have high growth potential but may be too risky for traditional lenders. If you decide to go this route, make sure you do your research and choose an investor that shares your vision for the company.

Starting a small business is an exciting endeavor, but it’s important to carefully consider all of your options for funding before moving forward. The best way to choose the right option for you is to consult with a financial advisor and create a solid plan for your business. Once you have done that, you can move forward with confidence knowing that you have chosen the best way to fund your small business dreams.

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For one, it is important to know the tools and technology available at your disposal. For example, there are services that can allow you to do everything from send fax online automatically to free online fax. Knowing these can help you boost the efficiency of your business from the start.

But what other things should you know ahead of starting your own business? Well, this article is going to cover a couple of the most important that you want to be sure not to miss or forget about.

Your Costs and Numbers

Of course, one of the most important things to know are the costs you will be responsible for when it comes to starting a business. The costs of starting a business can vary depending on your industry and niche, but it can generally cost thousands (if not tens of thousands) to get a business up and running. You will have to pay for materials, office space, employees, equipment, utilities, and several other things.

Also, don’t forget about the hidden costs of running a small business. These are things you might not think about but can be considerably expensive in some cases. This can include shrinkage, permits, and upgrades, just to name a few. In addition to the costs, try to do some realistic projections about how much you expect to sell. This can help you make sure your business is a viable opportunity. You should also consider getting a startup credit card to help you with your expenses.

Your Customers and Target Market

Image Source:- https://pixabay.com/illustrations/avatar-clients-customers-icons-2191932/

For a business to be successful, they need customers that are interested in buying their products. Before starting your business, you need to be aware of who your customer is and identify your target market. You need to focus your marketing efforts on a particular type of individual.

Very few companies have a product or service for everyone. As a result, you should focus on a select group who you feel will benefit the most from what you have to offer, and thus are most likely to become customers. You need to know about their needs, their problems, their hobbies, their age, and other characteristics about them. The more you know about your customers and target, the better you can tailor your product or service to meet their needs.

Your Competition

Knowing your competition is another crucial thing to keep in mind before starting a business. This can help you learn who else is out there, the strategies they are using, and the products they are offering. This can help you identify an opportunity in the market. Without doing this research, it could be hard to differentiate your offering, or to know if there is even a need in the market at all.

In addition to the marketing and actual products/services of your competitors, you should look at what people say about them. This can give you valuable insights into the wants of the customer, and you can change up your product or service to be more in line with these thoughts and feelings before launching. The more you know about your competition and their tactics, the better.

By knowing your numbers, your customers, and your competition, you will generally be ready to start your business off on the wrong foot. Of course, there are other things to know before jumping into the world of business ownership, but there are among the most important to your success.

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Consumer financing companies allow businesses to offer their products or services to customers on a flexible payment plan. This type of financing is often used for expensive items such as cars, appliances, or home renovations. However, it can also be used for smaller purchases, such as furniture or electronics. Consumer financing can benefit businesses of all sizes, but it is especially beneficial for small businesses.

Businesses need to offer financing options to their customers to stay competitive. Many small companies search for ways to offer customer financing to their customers. This blog post will provide tips on how small businesses can provide customer financing. So, let’s get started.

Determine Your Customers’ Requirements

The first step in offering consumer financing is determining your customers’ requirements. You need to know what type of products or services your customers are interested in and what type of payment plan they are looking for. Analyzing your customers’ needs will help you decide whether or not offering consumer financing is the right option for your business.

For example, if you sell big-ticket items, such as cars or appliances, you may offer a consumer financing option with a low monthly payment. On the other hand, if you sell smaller items, offering consumer financing might not be the best option.

Analyze Available Customer Financing Options

Once you have determined your customers’ needs, you need to analyze the available customer financing options. Many customer financing companies, like Aqua Finance, offer different financing options to small businesses. You need to compare the various options and choose the one that best suits your business.

When choosing a customer financing company, you need to consider the interest rates, repayment terms, and fees. You also need to make sure that the company is reputable and has good customer service. Take a look at the reviews of the customer financing company to learn about the reputation and customer service.

Integrate The Customer Financing into Sales Channel

The next step is to integrate customer financing into your sales channel. You need to add the financing option to your website and ensure that your sales staff is aware of the option. Adding it to your website will make it easy for customers to find and choose the financing option. You can also add a link to the customer financing company’s website on your business website.

You need to train your sales team to explain the financing option to customers. They should be able to answer any questions that the customers have. It will help customers understand the financing option and make the right decision.

Promote The Customer Financing Option

Let your customers know about the customer financing options you’re offering. You can promote the customer financing option on your website, store, or marketing materials. Promoting the customer financing option will help you attract new customers and grow your business.

By informing your customers about the financing options, you’re giving them the ability to decide about their purchase. It will enable them to choose the payment option that best suits their needs.

Go Through Customers’ Application

Once you’ve received the application, you need to go through it and check if the customer is eligible for financing. You need to look at the customer’s credit history and income. The customer financing company will use this information to decide whether or not to approve the loan.

After you’ve gone through the application, you need to contact the customer and let them know about the decision. If the customer is not approved for financing, you should also explain the reason. It will help the customer understand the reason and avoid any misunderstandings.

Fulfill The Sales Process

Once the customer is approved for financing, you need to fulfill the sales process. You should deliver the product or service and send the invoice to the customer financing company. The customer financing company will then make the payments to you.

You need to make sure that you fulfill the sales process and deliver the product or service on time. It will help you avoid delays in payments from the customer financing company.

Keep Track of The Customer’s Payment

It is vital to keep track of the customer’s payment. In most cases, customer financing companies track the payments and report them to the credit bureau. However, you need to track the payments yourself and report them to the credit bureau in some cases.

You need to make sure that the customer pays on time and that there are no delays. If there are delays, you need to contact the customer and work out a payment plan. It is also essential to keep track of the interest rate. The interest rate can change over time, and you need to make sure that the customer is aware of the change. You also need to make sure that the customer pays the correct amount of interest.

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Why is Local So Important?

Unless your business is specifically modeled around serving a market that isn’t in your nearby area, starting local can be a great way to test the waters and finesse your path to success. Building up a good reputation makes it easier to spread your wings at a later date. You have probably read various success stories about huge businesses that emerged at first as local enterprises set up by bold entrepreneurs. Ignoring the value of starting small could be your downfall.

What Tactics Can Your Business Make Use Of?

There are plenty of tactics you can use to help your business shine. The following are examples of how you can promote your business at varying levels, including locally. Starting small is a useful way to develop your skills and confidence in unfamiliar areas so that when you eventually seek to fulfill larger goals, you have experience and knowledge to back you up.

SEO

One of the best tips for any business is to get on top of your SEO, or search engine optimization. SEO is about getting your business noticed by the right people when they go searching for a service or a product like yours online. You’ll need to find the best local SEO company to help you establish an effective strategy. This will involve making your website more SEO-friendly and paying attention to the relevance of keywords. It helps to think like your target market, especially for this approach.

Print Marketing

Make the most of your local billboards or places to hang posters. Have a professional print marketing campaign designed to attract your audience with intriguing and relevant visuals. Consider the message you want to convey and how you want your target market to feel and engage.

Social Media

An online presence has become an essential part of modern business, and this includes maintaining strong social media accounts. These are excellent for reading and responding to your local audience’s feedback directly and efficiently.

Collaborations and Events

Talk to the other businesses in your area and come up with ways to collaborate for maximum effect. Your businesses don’t need to be related but they can support each other with promotions and shared events.

Use the above advice to find your own unique ways of capturing people’s attention and showing them what your business can do. This will help you leave a lasting impression on your town or city before moving on to your next grand ambition.

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A business email looks more professional and conveys your authority as the authoritative representative of the company.

If you want your clients to trust your business, there is no better way than a business email hosting.

This might sound as alluring, but setting up business email isn’t as easy as it seems at first.

So, to help people realize how troublesome setting up of email accounts can get, I have combined a list of arguments why small businesses must avoid it at all costs.

Email Accounts Can Be Very Time-Consuming

Your web development company isn’t going to help you to set up an email host. They do so, sometimes, but most web development companies aren’t proficient enough to help you with email.

Web design companies mostly comprise of designers and web developers and they aren’t the right people to approach for getting an email server hosted.

Even if your web design partner happens to set up the mail server, they may fail to do so properly. This means –

• Your email account might not be configured properly
• You can get exposed to vulnerabilities
• The mails you send might end up as spams

If your emails really get moved to the spam folder, your business will be drastically impacted in the long run.

First, your clients would treat you as a scam. This, in turn, will affect the business-client relationship as customers won’t think of you as a legit business.

Second, the more and more your emails end up as spams, the less likely it is that the customers would read your emails. This, again, will affect your revenue as clients might miss out on service renewal reminders.

1. Emails Take Up Lots Of Space

You do not have unlimited storage on your web server.

Emails can eat a lot of storage space on your host. Since most of us don’t delete older emails, the server is twice more likely to run out of space than without business email hosting.

Moreover, a single attachment on a mail can easily occupy 8-10 Mb of disk space. If you send 5 such mails a single day, your organization would run out of space in less than a month at that pace.

So, the odds are that you would end up paying more than with separate email and web host.

2. Security Concerns

Email is your business’s only point of contact with the outside world. Every single thing that you send over a mail is an official statement, per se.

So, let’s face it, can you afford to have your email accounts hacked? What if someone is able to read everything in your mailbox? Imagine how catastrophic it would be if someone sends mail canceling all your appointments the next day.

Small businesses do not usually have enough workforce to configure a security system. The hosting provider isn’t going to configure updates and security patches either.

This means you are at an increased risk of exposing your email accounts to vulnerabilities that may jeopardize the integrity of your organization. 

3. Do Not Overload Your Server

Okay, your server is powerful and can easily run hundreds of applications at once, but that does not mean you will overload it. You cannot load 2 sacks on a horse that can only carry one.

Moreover, downtime will happen from time to time on your server. Loading the entire IT infra at one place will cause the entire services – email, website, and network – to go out of service simultaneously.

That is to say, your business will undergo a complete outage.

4. Migration Is Painful

If you have migrated your data to a new host, you might have an idea of how weary migration strategies can get.

More the data on a server, the more complex the migration gets.

Imagine if you were to migrate all your files and emails, you would end up investing a lot of time and effort.

And despite the efforts, your migration might not be completely successful. That way you are probably investing more time and money in recovering lost files on your server.

Having worked in the hosting industry for 5+ years, I now know that webmasters don’t migrate to a new host readily and I know why.

5. Dedicated Servers Can Fail Too

Even if you have dedicated servers at the place, you cannot be sure that things would work just fine.

The number of resources you are going to deploy is directly proportional to the number of users active in your organization.

The amount of data generated each day burgeons exponentially. At this rate, your server will pretty soon reach its threshold and fail without giving a sign.

It is said that a server is only as good as the security measures implemented. So without robust security, you’d have the same level of experience you would have on shared servers.

6. Needs Additional Workforce

If the security systems aren’t effective, you are sitting duck for cyber attackers.

Email encryption is quite sophisticated and shouldn’t be taken casually. Companies that offer email services – Google & Microsoft – spend a huge amount in protecting data, and yet they get hacked sometimes.

Given the level of expertise that these organizations have, your security systems cannot come even close to those of Google and Microsoft.

This means you would need to hire additional workforce. Eventually, it will come at the cost of added expenditure. However, if you already have enough people to care about your email host, go on, self-configured email is your thing.

Takeaway

We cannot outright reject that hosting your own business email comes packed with a lot of advantages. If you have all the essential resources, you can choose to self-configure an email host.

As with every other thing, the advantages are almost always accompanied by some disadvantages. My argument in this article is not that business email hosting is disadvantageous but that self-hosting email could be taxing if done without adequate resources.

This means small businesses are the ones that will have the most trouble. The larger enterprises have and will continue to host their own email servers unabated.

The post Why Small Businesses Should Not Host Their Own Email appeared first on Adclays.

Find the Right Lending Options

Small business owners who are low on working capital or moving towards scaling up their operations commonly make the mistake of rushing into funding options. Grabbing the first loan or financing opportunity that you think you might qualify for may prove to be a regrettable or perhaps even economically catastrophic decision. 

Before you apply for funding, consider the best route to take care. Choosing between applying for a new line of business credit or an SBA loan requires methodical deliberation. Once you have determined whether a line of credit or a traditional loan is the best fit for your immediate and long-term needs, you will have to evaluate which funding agreement’s terms are going to be the most manageable. You also have to measure interest accrual and monthly payment obligations discerningly. In addition, you should be extremely wary about which assets you opt to collateralize to obtain funding. Assigning a secured interest in an essential fixed asset could seriously compromise your ability to operate. 

Deciding which lender or financier to approach should be another important element in your funding strategy. Remember that you are not reliant on your current primary creditor’s financing options, and you do not have to go through your local SBA chapter or principal banking institution in order to apply for an SBA loan. Look at loan options on Lendio to find competitive interest rates, explore various lending formats, or learn more about alternative financing options. Working with a lender that has experience serving small businesses that are similar to your own could give you a better chance at getting approval.

Overhaul Marketing Expenditures

You have to be prepared to allocate a fair amount of your working capital toward promotional and marketing activities. However, it is imperative that you take calculated measures to ensure that you are getting a good return on the money that you put into your marketing budget. 

Partner with experienced marketing service providers that are knowledgeable about your industry and your target customer base. Ideally, you want to be able to reap the insights of marketers with proven track records. 

Use intensive data analysis processes to pinpoint which campaigns are bringing in the most business and which initiatives are failing to capture consumers’ attention. Analyzing marketing metrics enables you to concentrate your efforts and capital on the tactics that are working well for you. Furthermore, it spares you from burning your cash flow on outreach and engagement directives that are missing the mark. Being attentive to your promotional and branding activities’ intrinsic value could help you lower this costly line item while also driving up your incoming revenue.

Optimize Tax Liabilities

Small businesses have to practice total financial transparency in all of their accounting practices, and this is especially true in regard to creating their financial statements and preparing their tax filings. Failing to utilize all of your available deductions could cause you to pay much more than you really have to.  

To reduce your liabilities and avoid potential auditing issues, be sure to use accounting software that helps you stay organized. In particular, you may find it advantageous to use a program that makes it easy to identify, categorize, and calculate deductible expenses. Assets’ depreciation is among the most commonly overlooked deductions, so catalog your assets and apply a formulaic framework to track depreciation. 

Ultimately, monitor your spending and pursue growth cautiously to stay cash-positive as you contend with ups and downs in your revenue cycle. Managing your resources judiciously and staying organized will help you achieve greater profit margins.

The post Money Management Tactics To Increase Your Small Business’ Profit Margins appeared first on Adclays.

Here is an outline of 5 things you must consider when starting a small business.

Your Business

Understanding the unique tenets that define your business is paramount to achieving impressive results. What metrics and performance standards make up your vision and mission statements? What are your short-term and long-term strategic plans? How do you plan to track and map out your business goals?

Additionally, it is crucial to outline the kind of business structure you envision guiding your day-to-day operations. If it is a sole proprietorship structure, are you well informed of the legal responsibilities that bind you and your business? If you are looking for a partnership model, who are your partners, and what type of contractual agreements will oversee your operations?

Your business fully rides on the uniqueness of your products and services. A detailed understanding of your products is key to gaining a competitive edge in the market. What features, value propositions and pricing structures characterize your products? Can you answer all questions regarding the prospects and peculiarities of your services?

Your Audience

Your target audience is the consumer demographic who need, want or are likely to buy your goods and services. This category of people and institutions will be the base of all your business decisions. Knowing your target audience should look beyond their location. You want to understand the drive behind their purchasing decisions. What are their roles in the overall purchasing path of your business?

Spend enough time researching your audience. Beyond demographics, your research should help you outline who they are, what products they want, the competitors they are considering, and the rates they are ready to pay.

The value of understanding your audience is limiting marketing resources to the right people. You cannot achieve optimal profits and results if your products, ads, and marketing messages are floating on a pool of uninterested parties.

Distribution Channels

Distribution is the framework linking consumers with product manufacturers. Without appropriate distribution channels, the availability of goods and services to customers is put in jeopardy. If your business does not establish efficient distribution channels, potential customers may render it inadequate and untrustworthy.

Consider whether you want to channel your products directly to the consumers without intermediaries through direct distribution channels. If your business model relies on intermediaries and middlemen, consider whether you need a one-tier or multi-tier distribution strategy.

Considerably, the rise of the internet has enabled most startups to operate over digital spaces through e-commerce and other B2C business setups. This way, more businesses are moving their goods and services directly to the consumer with the online space as their distribution channel. If this is your preference, you want to survey and understand how online distribution impacts your business.

Communication Channels

One foundational step entrepreneurs should take before starting a venture is defining their business communication channels. Without a doubt, information is the lifeline of any brand, and how such information is relayed internally and externally is crucial to the brand’s success. Efficient communication channels go a long way to informing and redefining customer behavior. As a thumb rule, you must adopt a communication channel that is comprehensible and easy to use by your targeted recipients.

Determine whether you will use traditional channels, such as emails, newsletters, press releases, and commercials, to communicate with your customers. If you are looking to exploit digital channels, consider whether you will major in social media, automated text messages, or videoconferencing. Figure out how to get a toll free number for your business, which can make it easier for customers to contact you directly.

Statistically, most customers are interested in a channel that offers consistent communication regardless of the method applied. Channels that do not convey information reliably and consistently are a breakaway from the value of customer prioritization.

Pricing and Payment Processing

Your business toolkit must feature a payment processing system to enable credit card payments. This is a convenient way to expand your payment options to your projected physical and online customer base.

Determine the type of payment method your business should accept. Fortunately, today, you can have a blend of multiple payment methods. These include debit and credit card processing, digital wallets, and Automated Clearing House (ACH) payment processing.

Decide on the type of payment gateways that will be best suited for your brand. If you are running a physical store, then POS systems will be sufficient for your operations. However, if you are extending your payment services over the internet, you will need an online checkout service.

However, payment processing is entirely not possible without functional merchant accounts. These are specialized bank accounts through which businesses accept funds electronically. Keep in mind that varying merchant accounts serve different purposes depending on the type of business in question. For instance, high-risk merchant accounts are designed to service ventures considered to be of a higher risk, such as automotive businesses.

Conclusion

As exciting as it may be, embarking on a journey to entrepreneurship is not always easy. However, with the right business strategy and information, you can almost be certain that startups are quite rewarding. Understanding your brand, target audience, payment processing systems, communication channels, and distribution channels should boost your confidence to get the business on the move.

The post 5 Things to Consider Before Starting a Small Business appeared first on Adclays.

Get a POS System

Point Of Sale systems, or POS’s, are integral to the operation of every business. However, if you sell things at a flea or farmer’s market, or if you go to a convention, you may not think about having one. Getting a mobile POS system will save you the trouble of having to go through getting a cash box, making sure you have the right amount of change, and worrying about taking a large amount of cash to your car. You also have the benefit of listing products in the POS and having easy access to the things that your customers are purchasing. Otherwise you have to look through a physical price list for ages, and that takes time away from yourself, your current customers and any other customers waiting to ask you questions or make their own purchases.

Have an Established Inventory

When you are first starting a small business, it can be hard to know when enough is enough in terms of inventory. You want enough variety to draw interest, but you do not want so much variety that customers get overwhelmed or confused. Start with about 20 to 30 items to get the ball rolling, and you should be able to find more traffic coming to your site. Once you identify what the best-sellers are and which products do not sell well, you will be able to adjust your inventory accordingly. 

Use Your Social Media Presence

If you have not gotten into social media, there is no better time. Depending on which platform you are most comfortable using, that is where you should start. Make a special, individual account for your small business and make sure to post regularly. Take clear pictures that grab the eye, make sure you are using the correct hashtags, and keep engaged with your audience. Once you have a decent following, you can change things around and make it to how you want it. After getting that base account established, go ahead and create accounts across every social media platform. That way, you get more reach and you have more variety in your posts. If you do not want to bother with every single platform, choose three of them. 

Take Suggestions From Customers

There is a reason that suggestion boxes are so popular. Customers have a place to address any grievances they might have about your products as well as fill your inbox with ideas that might inspire you to make your next hit product. Though the messages can be a pain to sort through, they are worth it. If need be, establish a set of rules for how the suggestions should be submitted. If the customers do not follow the rules, then do not read the suggestions. If you feel the need to, set up an automatic message that you can send to them when they have not submitted a suggestion properly, explaining that you would love to read their suggestion but they have to follow protocol. Include either a link or a description of the proper submission process. This way, your customers will feel heard without thinking that you are either not reading their suggestions or just brushing them off.

It is tough to run a small business, and it might often feel like you will not be able to get it off the ground. Keep this article in mind the next time you are looking at making changes to your business operations and hopefully you will be able to find some inspiration.

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