StartupNation

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• WJR Business Beat: The Internet’s Power Is Strong, But Digital Divide Remains (Episode 400)
• Why and How Companies Must Prepare for ESG Investing
• More Money Isn’t the Only Thing That Will Attract Quality Employees
• WJR Business Beat: Spending on Services Remains Strong (Episode 399)
• Avoiding Dumb Decisions in a Smart Tech World: Here’s When to Listen to Your Gut
• The Customer Is Always Right: Why Startups Should Pay Attention To CX Data
• 5 Types of Investors for Startups
• WJR Business Beat: The Best Cities to Start a Business (Episode 398)

WJR Business Beat: The Internet’s Power Is Strong, But Digital Divide Remains (Episode 400) Posted: 28 Apr 2022 08:27 AM PDT In today’s Business Beat, Jeff Sloan talks about the importance of the Internet in our lives and our businesses and how some are being left behind because of the digital divide. Tune in to today’s Business Beat to learn more about who’s being left out:   Verizon Small Business Digital Ready: A free resource for learning basic business skills, the latest digital technology and more, Plus grants! Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE. Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!  WJR Business Beat Transcript Good morning, Paul! Every now and then, we witness major change in business and in society, the industrial revolution and the personal computer are such examples of major sea change. Without question, one of the most significant of these events is how the Internet has reshaped our lives almost entirely as it relates to business. What was already under foot with migration of business to online prior to the pandemic, simply accelerated significantly as a result of the pandemic. How significant is the Internet today as defined by access? Well, it’s projected that the Internet will have four and a half billion users worldwide this year. That’s up about 3% over last year. And this amounts to an astounding 58% of the general population, including all ages of every human on the planet, having access to and using the Internet. In North America, it’s nearly 90% of the population that’s connected. However, according to a Pew Research Center survey, nearly 1 in 10 Americans still don’t have access to the Internet and don’t use it at all. While access to technology is nearly ubiquitous for wealthy Americans, about 4 in 10 adults with lower incomes do not have home broadband services or even a desktop or laptop to facilitate their connection. How can this digital divide as it’s known still be a factor today? Well, Internet non-adoption is linked to a number of demographic variables, but is strongly connected to a couple of key variables, one being age, with older Americans continuing to be one of the least likely groups to use the Internet today. About 25% of adults over 65 don’t use the Internet at all. Level of education is also another factor as some 14% of adults with a high school education or less, again, do not use the Internet. Now we are making incremental progress to continuing to narrow the gap between the haves and have-nots, but as every aspect of our lives from education to entertainment, to shopping into our businesses, continues to depend more and more on access to the Internet, it’s certainly unfair and un-American to leave certain demographics behind. I’m Jeff Sloan, founder, and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here The post WJR Business Beat: The Internet's Power Is Strong, But Digital Divide Remains (Episode 400) appeared first on StartupNation.

Why and How Companies Must Prepare for ESG Investing Posted: 27 Apr 2022 09:00 PM PDT Historically, revenue, capital growth and safety of returns have been the key determinants used by investors when making any investment decision. And, that still holds true – but there is a new factor that investment firms are increasingly taking note of when making their investments and that is known as ESG investing. While ESG investing is relevant to businesses of all scales and sizes, startups and small businesses are the ones that need to make the necessary changes the fastest. This is because, large companies are more capable at warding off investor pressures as they do not need finance as much as startups and small businesses. Further, their stock ownership by investors are more diversified and investors do not have that big of a leeway in making board decisions, as compared to startups. Further, small businesses and startups, which do not follow ESG principles and are in need of capital, will be forced to sell their stock at lower prices, which is not the case for large businesses, which are more credit worthy and can easily incur more debt. What is ESG investing? ESG investing is a new way of looking at investing. ESG stands for environmental, social and governance and it is a type of investing that uses these three different factors as the basis for investment decisions. So, for example if a company makes a commitment to plant a certain number of trees every year by using a certain portion of its net profit, it could be said to be adhering to the environmental aspect of the ESG principles. Similarly, businesses engaging in social upskilling by creating research institutes can be considered to be adhering to the social aspect of the ESG factors. Companies that prioritize the well-being of their employees, and have proper grievance redressal mechanisms for its stakeholders, could also be considered to be improving the governance aspect of its business activities, which is another key part of the ESG framework. ESG has many attributes that make it unique, including its focus on investing aspects other than financial ones. Investors evaluate companies based on how they perform in each of these three categories. The idea behind this type of investing comes from the idea that if companies are measured in more ways than just by how much money they make, then they are more likely to be good long-term investments. This can be done by using a number of different methods to evaluate companies, including reading news coverage, but mainly from annual reports from companies. From VC to DeFi: 6 Realistic Ways to Fund Your Startup ESG investment trends Many business leaders have been slow to adopt ESG criteria into their investment decisions, but this has started to change. As of 2019, 93 percent of the 250 largest global corporations have incorporated ESG criteria into their decision-making process and are publicly reporting it. This is a huge increase, once you compare it with that of 20 years ago, when just a measly 35 percent used to follow the practice, according to research by the Boston College Center for Corporate Citizenship. Why is ESG investing growing in popularity? As more people gain awareness of the importance of environmental, social and governance issues, they want businesses to incorporate ESG practices into their operations and for investment managers to offer funds that reflect their values. Businesses can capitalize upon this trend by becoming more cognizant of their ESG investments. Doing so will help them remain competitive and ensure that they are using their resources in the most beneficial way possible. It isn't just investment firms that are pushing forth ESG investing norms for companies to abide by. Asset owners are increasingly demanding asset managers incorporate ESG analysis into their decision-making process for allocating investments into private companies, according to research by Cerulli Associates. Making your business ESG compliant helps ensure you have the best chances when you try to raise funds. The law on ESG investments So, how do you make your startup or business ESG compliant? Well, the short answer is that there is no one correct way. In fact, if your business operations are spread out in more than one country, then it would be even more difficult for you to ensure your business follows ESG principles. The core principles for a better ESG score can be found if we take the laws of several countries together as well as ensure that concerns from investor firms are taken into consideration. How ESG investments are regulated in the U.S. In the US, companies are not required to follow ESG initiatives or disclose the same in their annual reports. However, this may change when an investor in your company expressly seeks ESG disclosures. In fact, in a guidance note issued in January 2020, the Securities and Exchange Commission   that companies disclose such information, which may be material to its investors. This includes information that contains several ESG disclosures such as employee churn (a part of the social and governance aspect of the ESG framework) and energy consumption (a part of the environment aspect of the ESG framework). Although this is a guidance note, it forms a part of persuasive precedents that courts may follow. And if an investor making an investment makes it known that he/she considers ESG disclosures to be material, then the company would be safer in disclosing such information if it wants to avoid unwanted litigation. Either ways, private investment firms are increasing their pressure on private companies to follow ESG best practices and disclose the same in accordance with Sustainability Accounting Standards Board guidelines as well as follow the Task Force on Climate-Related Financial Disclosure framework in their annual reports. ESG investing regulation in the European Union The European Union has already brought out laws to standardize and incentivize businesses to proactively do more good in society and disclose this information to the public. The Taxonomy Regulation and the Sustainable Finance Disclosure Regulation ensures that investors and asset managers disclose in a uniform manner to the asset owners how much of the investments support environmental sustainability. Investors who do not do so have to state to the public via a disclaimer that their investments "…do not take into account the EU criteria for environmentally sustainable investments." As such, companies are indirectly pressured to ensure that their business follows environmental, social and governance best practices otherwise risk missing out on lucrative stock purchase agreements at worst or be forced to raise funds at a discounted issue of shares, at best. In fact, basic commercial deals such as finance leases and commercial contracts can all become more expensive. Apart from this, companies that have at least 500 employees and a revenue of 40 million Euros must disclose to what extent their activities are environmentally sustainable. As can be seen, businesses are under growing pressure to ensure that they conduct themselves in ways that are environmentally sustainable, socially beneficial and providers of good governance in the business operations. Therefore, even if your business does not fall under the compulsory requirement, it is important that you start making changes to your operations to avoid increasing difficulty in raising money in your investment rounds. In fact, not being ESG compliant can be a serious handicap for your startup because venture capitalists and investment firms will prioritize   compliant businesses considering the regulatory pressure that they face, as well as the disclosure requirements that they are bound to follow. Best practices to follow to be compliant While there is no commonly agreed-upon set of principles, there are certain best practices that businesses can follow to ensure they are considered to be engaged in activities that are beneficial to the society at large. Since ESG has three components, let's start with environment first. Make your business environmentally friendly Your business needs to have a plan in place to minimize its carbon footprint, including such things as cutting down on water usage or reducing plastic waste. Your company should also be able to come up with a plan regarding how it will increase shareholder value while still being responsible toward the environment and society. A company must show that it has minimal environmental impact on its surroundings and has plans to mitigate any negative impacts that already exist through recycling efforts, plantings, reducing emissions, etc. This could include investing in renewable energy sources such as solar or wind power generation, which requires less capital expenditure than traditional forms of energy production methods like power plants operating on coal. Make your business socially beneficial Companies must also show that they have positive social impacts on the community they operate in through charitable donations or volunteering opportunities. A company should work with local communities and governments to ensure that their operations are sustainable in the long term without causing harm to any person, animal or ecosystem within its vicinity by developing policies for employee relations based on principles such as respect for human rights and fair working conditions, and promoting good corporate citizenship through community involvement programs. Basically having a corporate social responsibility program can help the business out in this regard by a big margin. Engaging in research and open-sourcing your discoveries, instead of patenting them comprehensively outright, can also be considered to be a socially beneficial activity. In fact, several multinational companies are opting to open-source their research discoveries instead of patenting them, important examples of them being Google and Microsoft. Of course, you could do both, too – open source your patented inventions, as Tesla does! Ensure your business has impeccable governance principles Your company must show that it is governed well by implementing shareholder rights policies, having a diverse board of directors and executive team, having a high standard of ethics throughout the company and strong internal controls. While keeping trade secrets instead of patenting might be a beneficial route for most startups, it can cause the business to pursue more secretive business policies, which might harm the governance principles in the long-run. Having low employee churn and providing your employees with a greater voice in important business decisions are also keys for better governance of your business. Wrapping it up While there are no universally accepted ESG principles, there's nothing you need to worry about if you are able to ensure that your business activities remain environmentally sustainable, socially beneficial and examples of good governance. Apart from that, if you are in a bind, asking yourself "Are my activities ethical?" can also help point you in the right direction. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here.   The post Why and How Companies Must Prepare for ESG Investing appeared first on StartupNation.

More Money Isn’t the Only Thing That Will Attract Quality Employees Posted: 27 Apr 2022 09:00 PM PDT As a business owner, you are constantly battling with how to boost profits and productivity without increasing costs. Commonly, the first adjustment that comes to mind is within your own team. Finding quality staff members is valuable, though these workers often come at a higher price.  Paying your staff more than your competition can certainly entice people to work for you. However, if cost is a concern, there are other proven ways to attract quality workers to join your team. Here is a list of actions you can take to attract quality workers without paying more. Hiring Trends to Counteract Today's Staffing Challenges Advertise for your ideal employee  You can attract the quality workers your business needs by optimizing your recruitment process. It is easier and more affordable than you might think.  Appealing to workers who are searching for a place to belong is a great way to find the right people for the job. Also, the more transparent you are about your expectations, the more likely it is that you will attract quality workers.  1. Social media   Social sites are a great place to find quality workers that complement your company's mission.  These advertisements for workers can be in the form of videos, ads, or even testimonials from happy employees or clients.  You can attract people who value employment aspects such as a fun work environment or camaraderie instead of simply the highest pay by highlighting those parts of the job. 2. Job boards/sites  The same principle about transparency applies here. The more information you can provide, the higher your chances are of attracting quality workers to perform the job well. Not saying you should write a novel, but including key points that are important to your business can really help weed out those that are not a good fit.  By including your company's values and culture in the job description, you might welcome those who are excited to be part of your mission. 3. Company website  While it is smart marketing to start the recruitment process on social media and job boards, any quality candidate will likely do a Google search of your company to see what you are all about.  This is a good thing as it gives your business a chance to shine. Making sure your company has an up-to-date, friendly site will allow your new workers to see that your company is the place they want to be. In addition, ensuring that your mission statement is visible will do wonders for attracting employees whose values are in line with your business. The Importance of Recruiting Talent for Your Startup Be flexible  The issue many workers have with their jobs is lack of flexibility, which can sideline valuable employees who have other responsibilities. One way to avoid this is to be as flexible as you can — within reason, of course. You might be surprised at how many quality workers truly appreciate being given a little leeway here and there.  With hybrid office models and working from home becoming more normal by the day, this is an option to consider that could attract the quality workers your business needs.  Office environments are not always best for everyone, and there is some fantastic talent out there that you might be missing out on. Other ways to be more flexible include:  Scheduling  Finding ways to be flexible on scheduling could really help to attract quality workers with busy lives outside of their jobs. Creating a shift-style schedule versus the traditional 9-5 could be great for this, as well as allowing at-home workers to set their own hours (provided work is completed on time). You can get creative and find what works best for your business and your workers. Meetings  Meetings are important for communication within your business, but attracting quality workers might be easier if they were more flexible. Offering virtual attendance options, making them less frequent or creating a video/transcript for employees who cannot make it are all great incentives. Of course, it is important that everyone is on the same page, but you do not always have to be in the same room to achieve this. Location  For hybrid or at-home employees, having location freedom is a huge bonus and a helpful feature for attracting quality workers. Many employees travel regularly and take their work along with them without a hitch, so why not yours? Provided their work is completed on time and they are available to communicate on important matters, your business could really benefit from allowing more location freedom. For instance, a knowledge worker such as a graphic designer or software developer might choose to work for your company instead of another employer which pays more, if your company doesn't demand a daily commute into the office. Meetings in the Metaverse: A Step-By-Step Guide to Creating a Virtual Office Prioritize their well-being  A popular complaint among workers is employers prioritizing profit over people. While profit is a huge factor in business, low morale, employee burnout and declining health among workers can actually work against your profit margin. Keeping employees healthy, happy and supported does the exact opposite — and it is a smart strategy for attracting quality workers.  There are plenty of ways to prioritize the well-being of your workers, from traditional health benefits to mental health check-ins, personal days to company retreats. You can get creative, making your business stand out as an awesome place to work, and attracting amazing employees in the process. Here are a few more ways to help your employees feel important:  Wellness activities  Workers that feel like part of a team, community, or family are more likely to be happy, healthy, and productive. Giving your workers the opportunity for activities that promote wellness as a group (or even solo) makes your business more interesting to applicants, and helps you to attract quality workers. These do not have to be expensive either. Group hikes, bike rides, dinner after work, or even potluck-style gatherings can do wonders for wellbeing and morale. Mental health resources  While the mental health stigma is slowly becoming a thing of the past, employees still need to feel supported by their employers to prioritize their mental wellbeing. Providing access to mental health resources — whether that is a counselor, mental health insurance or similar — makes you an amazing boss and is also helpful for attracting quality workers. This helps you stand out from the crowd and shows employees your business is a terrific place to work. Encouraging healthy lifestyles   It is clear that healthier means happier, more productive, and generally contributes to a more cohesive workplace. The good news is this does not have to be expensive. Providing healthy snacks, emailing healthy recipes and workout routines, or allowing meditation breaks are all cost-effective ways to encourage healthy living — while attracting quality workers in the process.  Recognition Many people like to feel appreciated. Your business can create rewards for a job well done. This can include accolades, such as an Employee of the Month award where you engrave the teammate's name on a plaque and offer them extra time off.  Another way to recognize a top performer is with a sincere handwritten thank-you note.  Your business may also offer workers who excel a better parking spot or their choice of scheduling. Summary Attracting quality workers without paying more does not have to be difficult. There are several ways to bring in the talent your business needs without forking over more cash. In summary, these ideas are sure to bring in the right talent for your business: Advertise for your ideal employee and highlight the benefits of your workplace atmosphere: Utilize social media, job boards, and your company website. Be flexible: Reconsider your scheduling, meetings, and employee location. Prioritize worker well-being: Provide mental health resources, wellness activities, and encourage healthy lifestyles. Recognize top teammates: This can range from an Employee of the Month plaque to a better parking space. A little more effort can bring big rewards, and you do not have to spend more money to achieve it. These strategies will attract the quality workers you need for your business to run smoothly and thrive.     Verizon Small Business Digital Ready: A free resource for learning basic business skills, the latest digital technology and more. The post More Money Isn’t the Only Thing That Will Attract Quality Employees appeared first on StartupNation. This posting includes an audio/video/photo media file: Download Now

WJR Business Beat: Spending on Services Remains Strong (Episode 399) Posted: 27 Apr 2022 08:45 AM PDT Consumers are willing to pay more for essential services than they are for products. On today’s Business Beat, Jeff Sloan explains why this is important.   Tune in to today’s Business Beat to learn more: Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE. Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!  WJR Business Beat Transcript Good morning, Paul! Feeling the effects of inflation high prices at the grocery store? Paying more for gas? We all are. Well, how about services? Well, the price index of services rose twice as much in March as prices for products. The big difference though? Consumers are willing to pay more for their essential services than they are for products. Why are we focused on that today on the Business Beat? Well, certain services such as entertainment or events, for example, fall into a discretionary spending category. And that’s important because discretionary spending is a good bellwether indicative of consumer confidence. So what does the data tell us? Well, the fact that demand for services remains strong in spite of increased costs, and given the many services are discretionary, consumer confidence is remaining relatively strong in spite of the impact of inflation on basics like food and gas. and beyond consumer confidence. The fact that demand for services remains has been good for the job market for service-related jobs. In March, over 214,000 jobs were created in professional and business services, as well as in leisure and hospitality. What industry sectors stands to benefit most from the strong demand for services? Well, it’s travel. Travel is indeed the industry that will most likely see most of those services dollars that people are clearly still eager to spend. In fact, 81% of consumers state they intend to take at least one leisure trip in 2022. Now here’s the bottom line: Whether your business is in travel or any other service sector, this is a really good time to push hard. As consumers are showing no signs of slowing down their spending on their beloved services, even in spite of having to pay higher costs. I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR. StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here The post WJR Business Beat: Spending on Services Remains Strong (Episode 399) appeared first on StartupNation.

Avoiding Dumb Decisions in a Smart Tech World: Here’s When to Listen to Your Gut Posted: 27 Apr 2022 08:00 AM PDT Technology has become the backbone of how modern businesses function, with all types of organizations using tech applications to manage nearly every aspect of operations, from customer service to employee engagement. Whether using smart tech to enable communications, support security and privacy, enhance efficiency, aid employees or support operations, it's no wonder startups rely on these solutions to increase productivity and enhance overall efficiencies. And while technology is vital to so many business processes, many savvy business leaders understand that it's also crucial to find a balance. This balance between leveraging tech to support your business and knowing when to use human touch points and find ways to make things personal for customers and employees alike can be a challenge. Emerald-Jane Hunter For example, Emerald-Jane Hunter, founder of MyWhy Agency, captures the struggle when stating, "Technology is the reality of our world, and, the ability to use it to schedule meetings and to manage workflow is a huge lift for smaller businesses. However, technology is not always smart enough to replace the human touch when it comes to customer service, human resources or new business development. Relationships reign supreme in all of these areas, so you have to know when to turn technology off and when to turn human interaction on." "A phone call, face-to-face meeting, or a personal note or gift dropped in the mail are still key to maintaining client relationships and developing new ones. And for HR, it's imperative to personally engage with employees to ensure the culture of your business is thriving for all." And while we refer to much of automated technology as smart tech, the reality is that it can sometimes lead to dumb decisions if you lean on it too much. When incorporating artificial intelligence and machine learning into technology, it relies on good data and sound programming. But sometimes, the concept is better than the execution. There are troves of stories where tech failed to work as expected and, in some cases, the outcome can be disastrous for the business involved. For instance, one mistyped phrase led to a company losing $1 billion in 2012. Misconfigurations and misunderstandings that are not caught by the tech itself can lead to major business mishaps, often accompanied by a loss in consumer confidence and goodwill. The bottom line is that smart tech doesn't always have a positive impact on your company's operations. To Grow Your Company, Prioritize Productivity Over Being 'Busy'   Stormy Simon Interestingly, for Stormy Simon, the previous CEO of Overstock.com and new founder of Mother Rugger, she understands that businesses can make mistakes but doesn't like to use the word "dumb": "For me, I don't like the term 'dumb decisions,' especially in the startup world, if you're a leader, you are going to have to be OK with being wrong sometimes. Just be sure to fail forward, meaning that a bad decision doesn't hold you back but moves you forward. You own it. You move on. You make adjustments where needed." Simon said she faced a challenge when she first started in customer service at Overstock before becoming president. She launched an automated voice tech that would respond to customer inquiries, but the new tech was frustrating customers who experienced challenges since it would not connect them to a live customer service representative quickly enough. Faced with the business risk of frustrated customers, she made the decision to turn off the tech so customers could actually speak to a live person. This human touch point made all the difference in keeping customers happy and loyal. Of course, now these automated solutions are more sophisticated to better able to manage customer needs, but the threat of tech failing in a way that alienates customers is ever present. Women in Business: Stories From the Trenches This example demonstrates why effective leaders shouldn't leave all aspects of operations to tech solutions. While these solutions can improve many aspects of business performance, it's still vital for leaders to trust their gut and intuition to make wise choices that will improve the operation of their organization. And while this concept is fairly straightforward, it gets a bit cloudier when trying to determine when to use a personal touch point and when smart tech solutions are beneficial. There are several tips that can help business leaders determine the best path forward, such as: Account for market dynamics. Consumer preferences are constantly evolving. It's vital to have a finger on the pulse of your customers and how their expectations may shift due to certain circumstances. For instance, during the pandemic, everything went virtual quickly, which led to high levels of uncertainty. In turn, customers and employees wanted a more personal touch. In this climate, your business may have fared better by adopting more personal approaches. Look for ways to integrate both. A recent study looked at whether customers benefitted more from interacting with tech or with human customer service representatives. The results showed that a combination of both was often the best approach. This strategy looks at instances where one method outperforms another. For instance, smart tech may be preferable for standard ordering, but personal touch points are better for dealing with unsatisfied customers. When you combine your approach, you may be able to come up with a better solution than pursuing one or the other. Know your goals. In today's highly digitized climate, it's easy to get caught up in the wonderment of what smart tech could potentially accomplish. But far too often, leaders implement tech without taking the time to explore how this particular application may benefit the business. Understanding your goals at the outset is vital in determining whether a tech application can suffice or if you need human interaction. If you are looking to deliver a personalized experience, you may need both approaches. However, if you are strictly looking for efficiency, you may want to consider tech solutions (just don't overlook the value in other performance indicators). There is no denying that tech is here to stay. And its role in business will continue to grow as more and more functions can be handled by smart tech platforms. However, it is no substitute for human interactions – and this aspect of making leadership decisions should not be underestimated. Sometimes, customers just need to see the human face of your company. They need to feel heard and valued. As of right now, smart tech won't deliver on this goal. It's worth reflecting on any decisions you make as a leader and ensuring that they support the goals you are trying to achieve. Free Download: The Definitive Guide to Technology for Startups   The post Avoiding Dumb Decisions in a Smart Tech World: Here's When to Listen to Your Gut appeared first on StartupNation.

The Customer Is Always Right: Why Startups Should Pay Attention To CX Data Posted: 26 Apr 2022 09:00 PM PDT The customer experience is the key to any marketing success strategy. Mimicking the age-old catchphrase of 'the customer is always right, the role of CX data in a growing e-commerce landscape is vital if you want to see high customer retention rates and a swift return on investment.  The modern consumer is always active. They are constantly changing and evolving in line with new technological demands. Therefore, startup companies need to keep evolving and changing their practices in line with the trends if they want to see success in an online environment. The key is knowing your customers inside and out. Tracking their engagement, feedback and demographic trends is a great way to stay on top of competitors and boost customer loyalty in a digital playing field. Read on to find out how you can get more out of your CX data in 2022 as we explore the benefits of navigating the customer experience in a post-pandemic e-commerce landscape.  5 Ways E-Commerce Entrepreneurs Can Make More Data-Driven Decisions Navigating the customer experience  So what is customer experience? Also, known as CX, it can be described as your customer's active perception of their experience with your company or brand. Customer experience has always played a role in building brand awareness and sales success, from local main street retailers to online e-commerce giants. If the customer is not satisfied, the return on investment will reflect it. Delivering high standards of customer service is important to all brands on the market. You want to see your customers coming back and promoting your services to their peers. The better their experience with your brand, the more positive reviews you'll receive. Feedback alone builds brand authority, increases customer loyalty and can even move you further up the organic search string.  In fact, 84% of online consumers considerably value customer experience when interacting with a brand. Many active consumers will also pay more money for a more personalized experience. The modern consumer requires impeccable service and needs to feel listened to in order to stay loyal. There are plenty of competitors, so it's time to stand out from the crowd. Campaign Asia The benefits of delivering a great customer experience are invaluable to a startup looking to improve its e-commerce success. With 54% of high performing marketing teams utilizing CX data in their experience initiatives, let's have a closer look into the role CX data plays in a victorious marketing strategy and how to spot those CX hot spots. What is CX data? CX data can be collected from every interaction a consumer has with your business. From first impressions to site navigation and customer service, CX data can be tracked during all site engagements.  The key is knowing how to get more out of your consumer data. Taking a deeper look into demographic trends and audience analytics is a great start for companies that want to improve their customer service. In fact, 63% of senior decision-makers in the corporate sector have labeled CX data strategies and emerging analytic technology as the most important tool for enhancing the customer experience.  7 Mistakes New E-Commerce Startups Make and How to Avoid Them How to gather CX data Gathering consumer data can be a simple, cost-effective process. For example, simply adding feedback forms within your UX design is a quick customer experience tracker. However, for marketers looking to get technical, there are a number of analytic strategies and programs that can be used in CX data collection, if you're looking for a deeper insight into your consumer needs and gratifications. Consumer data can be collected in two ways, knowingly and unknowingly: Tech Target As you can see above, marketers can gather data from both the customer's word of mouth in the form of reviews, surveys and brand mentions or choose a more data-focused route that tracks physical page engagements, transaction records and even SEO keyword data.  Let's have a closer look at both sides of CX data collection. Customer feedback According to Gartner, enabling customer feedback on your website, social platforms and within your sales strategy can increase upselling and customer retention costs by 25%. While it can be a labor-insensitive process, the benefits outweigh the time costs significantly. Using your site-based customer feedback, alongside your overall Net promoter score (NPS) and customer satisfaction (CSAT) score is a great place to start on your CX journey.  Zonka Feedback As you can see here, there are many ways to gather customer feedback. From surveys to social media monitoring, these manual methods are low cost, yet effective. We suggest automating the process for ultimate efficiency. Introducing chatbots and speech analytics will allow you to gather customer insights in the background, while also automating responses that serve each consumer's needs for a personalized experience. Channel analytics In a digitally optimized landscape, there are more analytic tools than ever before to aid CX data collection. While word-of-mouth feedback is effective, site page engagements and consumer clicks tell the true story of what is performing well, and more importantly what isn’t. Recording buyer behavior and website engagement metrics using tools such as Finteza and Google Analytics can highlight what customer experience points need to be improved.  This data can then be used to build a new marketing strategy. Attacking key areas for CX improvement will reduce marketing spending and increase chances for ROI success with a new targeted approach. Grow Your Business Smarter With Artificial Intelligence How to use your CX data for marketing success So you have your CX data, now what do you do? Let's learn how you can get more out of your CX data for e-commerce success. Start centralizing your feedback Customer feedback is only valuable when it is used effectively across a business. While enabling feedback can be a valuable indicator of customer experience, it needs to be categorized and centralized for ultimate success. Hubspot To truly understand how each piece of company feedback is contributing to the overall brand experience, all CX data should be stored on one platform and categorized into various touch points so all members of the team can gather a holistic view of what the company is doing well and what needs improvement. Combine CX and operational data for ROI success While storing your CX data in a centralized format plants the seeds for strategy success, it's important to combine these findings with other forms of company analytics such as operation metrics, if you want to see a real change in your customer experience. Combining both CX data and operational data such as your revenue, spending, logistics and sales stats will provide you with a stronger overall picture of your businesses' success and quickly highlight the sectors you need to improve. Combining your raw data also calls attention to action points that will provide the largest ROI impact for your business.  Identify underperforming channels  Your CX data can tell you a great deal about your customer behavior and your demographic's current trends. If you take a closer look at your channel engagement analytics, it's easy to pinpoint underperforming pages and communication channels that need a revamp.  The key is to provide an effective user experience companywide that improves the customer experience across each channel. Make sure you're on the lookout for current web design trends. If any of these channels are not up to standard, you're more likely to see call abandonment rates and quick click off data as your consumers abandon their position within the sales funnel. Utilizing your customer data can improve the omnichannel experience as it can highlight what channels need improvements. For example, if your SMS channel of communication has a low customer satisfaction rate, it might be time to automate the experience using chatbots or introduce new initiatives to sales executives for communication success. Anticipate your future success One of the major benefits of collecting CX data is the ability to leverage the metrics to predict the behavior of future consumers.  CX data highlights the customer experience during each part of the buyer's journey, providing you with insights into each stage's performance. Using this data, smart marketers can leverage this information and take proactive steps to address potential customer-based issues before new consumers engage.  For example, if your CX data suggests that customers are struggling to navigate the site, it might be time to revamp your user experience design or there might be a lack of communication during one stage of the sales funnel that can be amended to fit new consumer demands.  Using your CX data effectively can anticipate your company's future success. Verizon Small Business Digital Ready: A free resource for grants, learning basic business skills, the latest digital technology and more.   The post The Customer Is Always Right: Why Startups Should Pay Attention To CX Data appeared first on StartupNation.

5 Types of Investors for Startups Posted: 26 Apr 2022 09:00 PM PDT "The most meaningful way to succeed is to help others succeed." -Adam Grant, organizational psychologist Investors are unique players in the growth process of a business. The level and quality of their involvement can ultimately help determine a company's success or failure. It is imperative for budding entrepreneurs to take the time to learn about the types of investors available and how to use best practices when approaching them for funds. 5 types of investors Investors can be called upon during almost any stage in the life of a startup. Below are five of the most common types of investors, as well as recommendations for when they should be considered. Banks Banks are a classic source for business loans, Inc. explains. Loan-seekers will usually be required to produce proof of collateral or a revenue stream before their loan application is approved. Because of this, banks are often a better option for more established businesses. Angel investors Angel investors are individuals with an earned income that exceeds $200,000 or who have a net worth of more than $1 million. They are found across all industries and are useful for entrepreneurs who are beyond the seed stages of financing but are not yet ready to seek out venture capital. Peer-to-peer lenders Peer-to-peer lenders are individuals or groups that offer funding to small business owners, Time reports. To work with these investors, entrepreneurs must apply with companies that specialize in peer-to-peer lending, such as Prosper or Lending Club. Once their application is approved, lenders can then determine the businesses they wish to support. Venture capitalists Venture capitalists are used only after a business begins to show a significant amount of revenue. These investors are notable, as they usually invest a substantial amount of money (often around $10 million). They gain most of their returns through "carried interest," or a percentage received as compensation from the profits of a hedge fund or private equity. Personal investors Business owners often rely on family, friends or close acquaintances to invest in their companies, particularly in the beginning. However, there is a limit to how many of these individuals can invest in startups because of legal limitations, Legal Zoom explains. While it may be easy to convince loved ones to help, thorough documentation is highly recommended. Related: Why Venture Capitalists and Angel Investors Look at Teams, Not Ideas How to find the right investor for your startup Understand the different investment options you have When trying to begin a company, entrepreneurs can acquire capital through means other than investors, Forbes explains. Personal savings and personal borrowing are two common avenues of doing so. Personal savings generally come in two forms: cash and cash-equivalent savings, and retirement accounts. Using your personal savings can be useful. The required money is already on hand, and there is no need to go into debt to obtain it. However, the personal savings option may also be a difficult avenue to pursue. Quite often, entrepreneurs seek out investors in the first place because their personal savings simply aren't substantial enough for their needs. It is also personally difficult for many people to gamble with money they may later need for other purposes, such as retirement, college funds for their children or personal debts. Personal borrowing is useful for entrepreneurs with particularly strong credit scores (700 or higher) and a high personal net worth. To obtain capital for their new business, these individuals may take out a personal loan or apply for a new credit card. The risk (as with borrowing of any type) is the possibility of falling behind on payments, lowering your credit score and sinking further into debt. Decide what you want from your investors Choosing an investor is about more than simply trying to acquire funds. It also implies a certain level of commitment. You should take stock of the expertise you need and the expectations you have before deciding to approach a particular investor, according to Entrepreneur. When it comes to potential investors, you should consider their recent dealings, the services they might provide, the expectations they have for company leaders and how involved they want to be in company operations. Know where to look Although finding investors may seem daunting, it only requires searching in the right place. You can take advantage of investor databases such as AngelList, Angel Capital Association or Angels Den to get started. Self-promotion also helps. Writing blog posts, networking and participating in community business activities can result in investors going after entrepreneurs instead. Create an investor shortlist To improve your chances of gaining funds, you should narrow down your list of potential investors to only those who seem appropriate. Criteria for this list can be items such as the investor's previous partnerships, reputation or any mutual connections. The list should include around 30 to 50 names, which you can put into a spreadsheet with other relevant information for easy reference. Look at your networks Investors are looking to reduce risk, which means they are more likely to have interest if they know you or if you have been highly recommended. Examine your professional networks to comb for potential connections with the investors in question and carefully consider the right person to help make introductions. Perfect your pitch Once you have an investor's attention, a sales pitch is your chance to clinch the deal. It (literally) pays to prepare. Think of the selling points that speak best to the unique audience you're approaching. Create a "hook" at the beginning of your pitch and make sure it leads into a discussion of how your product or service will solve a problem. It's also important to have a clear business plan and discuss how the investor will profit. Ultimately, entrepreneurs who take the time to find investors tailored to their specific financial and operational needs will build the foundation needed for a long and successful partnership. Sign Up: Receive the StartupNation newsletter! Getting to know investing Individuals wishing to understand the complexities of modern company financing can earn an online business degree from Point Park University. The online Bachelor of Science in Business Management features an entrepreneurship concentration, while the online MBA allows students to become experts in the business field. Both programs are designed for maximum flexibility, allowing students to develop real-world skills on a schedule that best fits their needs. Content sponsored by Point Park University. Originally published March 28, 2018. Updated Nov. 22, 2021. The post 5 Types of Investors for Startups appeared first on StartupNation.

WJR Business Beat: The Best Cities to Start a Business (Episode 398) Posted: 26 Apr 2022 07:55 AM PDT WJR Business Beat Transcript Good morning, Paul! Wallet Hub is out with their rankings of the top cities in the U.S. to base a new business. Their study is intended to help aspiring entrepreneurs from restaurant owners to high-tech movers and shakers to maximize their chances for long-term prosperity for their startup. For their rankings, Wallet Hub compared the relative startup opportunities that exist in a hundred U.S. cities using 20 different metrics ranging from the five-year business survival rate to the percentage of residents who are vaccinated to office space affordability. T he 20 metrics fall into three different broad categories: No. 1, business environment; No. 2, access to resources, and No. 3, costs of doing business. They then determined each city’s weighted average across all these metrics to calculate an overall score and then that score indicates your position on the rankings list. To be more specific, the business environment category included such metrics as length of average workweek, average growth and number of small businesses, and startups per capita for access to business resources, access to human capital access to investment capital and share of college-educated population. Lastly, with respect to costs of doing business, things like office space, affordability, labor costs and cost of living were metrics in this category. So, of course, what we all want to know is how did Detroit fair in this ranking? Well, not as well as hoped. Detroit sits in the No. 97 spot, just making the list, but ranking high in two categories. For highest availability of human capital, we were No. 3 overall, and for lowest labor costs, we actually came in second on the entire list of 100 companies. Who tops the list? Well, No. 3 is Laredo, Texas. No. 2, Miami. At No. 1, it’s Orlando, Florida. I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR. Verizon Small Business Digital Ready: A free resource for learning basic business skills, the latest digital technology and more. In today’s Business Beat, Jeff reveals the best U.S. cities to base a startup, according to a Wallet Hub survey. Tune in to today’s Business Beat to learn where Detroit ranked:   Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE. Are you an entrepreneur with a great story to share? If so, contact us at editor@startupnation.com and we'll feature you on an upcoming segment of the WJR Business Beat!  Good morning, Paul! Wallet Hub is out with their rankings of the top cities in the U.S. to base a new business. Their study is intended to help aspiring entrepreneurs from restaurant owners to high-tech movers and shakers to maximize their chances for long-term prosperity for their startup. For their rankings, Wallet Hub compared the relative startup opportunities that exist in a hundred U.S. cities using 20 different metrics ranging from the five-year business survival rate to the percentage of residents who are vaccinated to office space affordability. T he 20 metrics fall into three different broad categories: No. 1, business environment; No. 2, access to resources, and No. 3, costs of doing business. They then determined each city’s weighted average across all these metrics to calculate an overall score and then that score indicates your position on the rankings list. To be more specific, the business environment category included such metrics as length of average workweek, average growth and number of small businesses, and startups per capita for access to business resources, access to human capital access to investment capital and share of college-educated population. Lastly, with respect to costs of doing business, things like office space, affordability, labor costs and cost of living were metrics in this category. So, of course, what we all want to know is how did Detroit fair in this ranking? Well, not as well as hoped. Detroit sits in the No. 97 spot, just making the list, but ranking high in two categories. For highest availability of human capital, we were No. 3 overall, and for lowest labor costs, we actually came in second on the entire list of 100 companies. Who tops the list? Well, No. 3 is Laredo, Texas. No. 2, Miami. At No. 1, it’s Orlando, Florida. I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR. Verizon Small Business Digital Ready: A free resource for learning basic business skills, the latest digital technology and more. The post WJR Business Beat: The Best Cities to Start a Business (Episode 398) appeared first on StartupNation.

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