Tuesday, June 28, 2022

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How to Leverage Website Design as a Startup

Posted: 28 Jun 2022 09:00 PM PDT

website design

Your website is one of your most important assets as a startup. It's the place where your target audience can learn more about who you are as a company, what you have to offer, and how you, as a business, are a solution. 

In short, your website is your brand's home base. 

But, if you don't have a site, where can you begin the website creation process — especially if you're not design-savvy?

Before giving you some of the top design tips that you should be incorporating into your site, we're going to first discuss why it's important. 

Let's get started. 

Why website design is crucial to succeed

Did you know that 50% of consumers believe that website design is crucial to a business's overall brand performance? But, why? Does it really matter? 

From typography to color palettes to customer experience (UX) copy, there are many things that contribute to an effective website design. User interface (UI)/UX design is crucial because it's one of the first things potential customers notice when they land on your company's website. It can also be the very reason why your website visitors may want to learn more about your startup — or click off your site altogether. 

Just like anyone would, your customers expect your website design to be well-designed, informative and easy to navigate.

(Just as a disclaimer, we don't write this as a means to scare you off, but to let you know the reality of how a design can make or break your website performance.)

Still not convinced that web design is as important as we say it is? Here are the exact reasons why you need to take website design seriously:

  • It showcases your brand identity.

Without having a digital presence, how else is your ideal customer supposed to know who your brand is? By using your branding guidelines throughout your site, there will be no question about who your company is. 

  • It positions your business as a leader in its industry.

Your website can be one of the places where you can showcase just how serious you are about your business. If you don't have a clear website design, it can rub off as unprofessional or that you aren't a legitimate business. 

  • It helps you land more sales.

Lastly, having a great website design encourages more sales. From making an easy-to-understand navigation bar to including call-to-actions on your site, design can help with both your lead gen and sales efforts. 

Ignoring Website Accessibility: Could It be Killing Your Conversions?

And if you're still on the fence about whether or not you should invest the time (or resources) into the design of your site, here are some stats to back up why design is crucial:

  • According to a report by Stanford, 75% of people base the credibility of a business on how its website looks
  • A customer's first impression of your site is 94% design-related
  • It takes .05 seconds for visitors to form an opinion on your website

I think you get the message. 

Now that you understand how important it is to have an effective design, let's go through a few quick tips on how you can make a website design — great.

Quick tips to make website design work for your startup

Even if your resources are limited, there are plenty of free design templates that you can use to get started with. You can then customize them to meet your needs later on.

So, if you're considering going the template route, here are some things to consider before diving into your design. 

  • Have a clear vision.

Without a clear vision, your ideal audience won't have a good understanding of who you are as a company. This can lead them to "bounce off" your website as soon as they land on it. This is not what you want to happen — especially as a startup.

 The main things your site design should convey include: 

By including all of these pieces, you will be able to  better guide your web visitor seamlessly throughout your site's design.

  • Get the basics right.

There are many UI/UX design basics that you should know before hopping into the design portion of your site.  Some things to consider include: 

  • Having a purpose for your site (as mentioned above).
  • Optimizing pages for load speed time.
  • Using white space to your advantage.
  • Understanding contrast.
  • Staying on brand (including typography, colors, and text).
  • Making your design responsive for all mediums  (ex. mobile, desktop and tablet).

If this seems a bit too granular for you, there are plenty of resources out there to help you dig even deeper! It's just a matter of taking the time to take a free design course or read an in-depth web design article to learn more. 

  • Don't be afraid to ask for help.

You shouldn't be afraid to ask for help — if you need it. 

This can look like hiring a design contractor to create the design portion of your site or asking a friend to take a look at your drafted design to get a second opinion. 

Either way, if you are still unsure if you can handle website design or not, we suggest that you still give it a try. You may be pleasantly surprised with how it turns out.  

But, if you continue to run into roadblocks along the way, you may need additional assistance to keep your website project moving forward. 

6 Essential Web Design Elements to Boost Your Website's Conversions

Grow and scale your startup with design

With over 4.6 billion internet users worldwide, having a great site design is essential in order to stay competitive as a startup. As more and more people become more engaged with the digital world, it's more important now than ever before to establish your digital presence — even as a startup in the industry. 

By following the website design tips highlighted above, you'll be on the right path to get creating a site that your customers will love. What are you waiting for? Try out your hand with web design today! 

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

The post How to Leverage Website Design as a Startup appeared first on StartupNation.

4 Major Obstacles Every Entrepreneur Must Overcome

Posted: 28 Jun 2022 09:00 PM PDT

With very few exceptions, the road to successful entrepreneurship has never been without its obstacles. Even during the best of times, blazing new ground in the business world has always been risky. After all, if your great idea had been easy to implement, someone else would have done it long before you tried your hand, right?

Of course, we are not living in the best of times, at least not yet. The past few years have been especially brutal. Many entrepreneurs struggled mightily to keep the lights on at their businesses. A record number were unable to weather the storm. Still others hesitated to jump into the fray. They left their entrepreneurial ideas on the shelf as the world dealt with pandemic-related shutdowns, travel restrictions and personal losses.

Halfway into 2022, many are becoming even more discouraged by an ongoing economic downturn. However, veteran investors will all be quick to tell you that there are opportunities for success even (or perhaps especially) during troubled times. The trick is to seek out promising new products, services or efficiencies where others aren't necessarily looking. Anticipating these four challenges — and being prepared to counter them — could make all the difference.

1. Inflation

As the purchasing power of their money goes down, many otherwise savvy business people still make the mistake of pulling back on all their investments. While this can, at times, be the right call, much of the time, it kickstarts a scarcity mindset that precedes missing future opportunities.

Entrepreneurs facing a bear market or other obstacles to success must remain vigilant to guard themselves against any form of panic. After all, if the money in your accounts is progressively becoming less valuable, then hoarding it or waiting for better times can make little sense.

While appropriate caution is merited in any turbulent marketplace, inflationary times absolutely require entrepreneurs to shift how they perceive and approach everyday operations, current and those still on the drawing board. Look for places to evaluate and apply five essential practices.

Uncover and eliminate waste.

This should be your first priority. Nothing in your business should escape thorough reevaluation. For example, could you downsize office space by moving some of your employees to remote positions? Likewise, find ways to look at your on-site assets with new eyes. Start divvying up everything about your operation into "must-have" vs. "nice to have" buckets.

Make any needed repairs or anticipated upgrades ASAP.

Expect the cost of repairs to go up. Expect the cost of software and upgrades to go up. Move quickly where things have thus far been neglected. If you were going to do it "at some point," consider if rising costs aren't an impetus to do it now.

Solidify your key players.

The Great Resignation continues to rage worldwide. It's time to ensure that your first-string employees are 100% on board and (significantly) that you check in with them regularly. If they're unhappy, you need to find out why.

Lengthen the terms of your contracts.

For example, if you are in a stable, mutually beneficial relationship with any of your suppliers, ask them to extend the duration of their pricing. Similarly, seek to lock in your clients to long-term, agreed-upon amounts.

Grudgingly raise your prices.

This one is last on the list for a reason. Raising prices is often our knee-jerk reaction to rising costs. Frequently, moving immediately to increasing prices "blinds" entrepreneurs to eliminating waste or other cost-cutting measures.

2. Tightening purse strings

As mentioned above, many investors respond to rising costs and the shrinking value of their 401(k) and other assets by scaling down their willingness to put money into new ideas. While that response is understandable on many levels, entrepreneurs need to be prepared to encounter increased resistance as they seek to put funding into place.

Of course, it's often difficult for entrepreneurs to break out of their established thought patterns long enough to ask themselves a few key questions. Yes, potential investors will exercise more caution in the face of inflation and stock market downturns. But that doesn't necessarily mean that these are the primary reasons for their unwillingness to cut a check.

As you begin to hear "No, sorry," especially from unexpected sources, invest in yourself by allocating fixed, distraction-free time to hone and further sharpen your entrepreneurial proposals. Step back from the hustle long enough to run a few essential diagnostics.

What is the real reason for the negative response?

When talking to potential investors, stress your desire to remain open to any positive or negative feedback they offer. Permitting people to move beyond "polite" refusals is essential. Otherwise, they may point to the downturn as a way for you to save face.

Could your proposal be modified to reduce the risk factors…even a little?

You might be asking people to put their money into something that seems too good to be true. Yes, you want to showcase your idea in a positive light, but you should also realistically assess and present risks to your investors. Can any of these be eliminated or at least minimized?

Is it time to seek new avenues for investment?

This can be as simple as searching online for interested parties or as relationally challenging as asking your unwilling investors to introduce you to others who might be interested. Obviously, some sharp diplomacy skills might be needed as you negotiate obtaining introductions.

3. Energy costs

Everyone hopes that the global factors contributing to the soaring gas and electricity costs will reverse themselves. However, entrepreneurs and small business owners can't launch new enterprises or product lines exclusively on hope. In the UK, for example, research indicates that nearly two-thirds of businesses allocate anywhere from 5% to 20% of their total operating budget to energy. Thin profit margins and rising energy costs can stop a company in its tracks.

Smaller companies will be hit hardest. If past performance is any indication, they will be the first forced to raise their prices. Larger companies are typically more willing and able to take the hit. Unfortunately, this combination adds up to smaller enterprises being less able to compete with corporate giants. However, all is not lost. A few simple coping measures may be all you need.

Do whatever you can to keep energy expenditures in check.

Turning off lights, installing energy-efficient appliances and setting policies on indoor climate control are great places to start, but don't stop there. Many municipalities offer low-cost or free energy audits. They're likely to spot waste you long ago accepted as normal. Maybe you limit delivery or shuttle services to twice a day rather than on demand. If you haven't already, set and maintain a schedule for regular energy audits, regardless of changing economic conditions.

Beef up your sales and marketing efforts.

Rather than resorting to an automatic price increase, maybe this is the time to look into expanding your business into new geographic areas, launching new products, or investing in additional sales reps. Do what you can to optimize your products and services for nontraditional customers. Seek outside counsel as you look to broaden your appeal.

Commit to fighting the energy-conservation battle on multiple fronts.

Instead of simply passing on costs in the form of higher prices, many entrepreneurs add a line item on invoices that lists costs associated with electricity or gasoline use. The customer who costs your business more combined energy consumption should expect to pay a higher surcharge than those who do not. Using a separate line item will also enable you to keep your pricing the same, and it can help promote goodwill with clients.

4. Undetected Burnout

"Hey, how are you doing?" "Doing great, thanks."

In light of what the last few years have done to everyone, this all-too-common hallway exchange should be banned. (It won't be, of course.) However, far too many entrepreneurs are so preoccupied with their next pitch meeting that they allow themselves to think this sort of exchange passes as checking on someone else's well-being. It's not.

Everyone needs a team to get their ideas off the ground. Even your best employees or partners may be starting to fray at the edges and, worse, aren't even aware of it. Successful entrepreneurs look hopefully to the finish line, but they also want to ensure that everyone on the team makes it there. The greatest successes are those that can be shared.

Start by slowing down your hallway moments long enough to ask better questions, and then — this is typically the hard part — stop in your tracks to await the response.

Here are a few simple questions you can commit to memory as you seek to foster improved employee morale. All of these are personal, so make sure your inquiries are authentic and 100% appropriate to the individual. Be willing to share your answer, too. Counter any sense that this is an inquisition or some other informal employee evaluation process.

  • How are you and yours managing the stress associated with our work?
  • Anything feeling weird or out of control?
  • How have your sleep and rest been lately?
  • Any misgivings about what we're doing here?
  • Is there anything distracting you these days?

In the past few years, many of us have grown understandably weary of hearing the words "unprecedented" and "pivot." I know I have. Nevertheless, the quick pace of global e-commerce has kept us in a constant state of readiness for change. As you navigate this new terrain, it will be vital to maintain a journal that will allow you to go back and see where you changed direction (wisely or otherwise).

Never allow panic or a scarcity mindset to inform your entrepreneurial spirit. The ground beneath our feet is constantly shifting, but keeping a level head will serve you, your employees, and your personal relationships well. Best wishes!

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The post 4 Major Obstacles Every Entrepreneur Must Overcome appeared first on StartupNation.

7 Ways To Improve the Customer Experience

Posted: 28 Jun 2022 09:00 PM PDT

customer experience

Impressing customers is significantly more challenging than it seems. How challenging? Research by Gartner shows that more than 70% of customer experience experts have trouble moving the buyer loyalty and engagement needle.

Increased consumer resistance is why putting a customer experience game plan in place makes sense for every company. In the wake of the Great Resignation and its resultant shortage of labor, your company may be unaware that overall customer experience is fraying around the edges. After all, every time an experienced employee walks out the door for good, they take their accumulated knowledge with them.

Today's customers don't sit still as we train up replacement personnel. Instead, they pull out their smartphone and go to search engines to find the knowledge, experience and information they want before making any purchase. Without a full-fledged strategy to follow, customer experience opportunities can fall by the wayside. And in a highly competitive environment, you can't afford to let any options slip away.

If you've never fleshed out a customer experience road map, use the following seven suggestions as starting points. Remember: The customer experience is a multifaceted system. Therefore, having many initiatives in place will help bolster yourself from various angles.

1. Serve up seamless interactions.

Online consumers aren't known for exhibiting vast amounts of patience. When dealing with brands, they want a simple, frictionless interface.

Take onboarding procedures such as logging into your system, for instance. Okta says 72% of users expect onboarding to take less than 60 seconds. Therefore, you must put a fast, reliable customer identity service tool in place. That way, new customers can enter their details, get what they need and enjoy a breezy customer experience.

Onboarding is just the tip of the iceberg, of course. Any interaction along the customer journey needs to be smooth. From time to time, test all your interaction points. Look for ways to maximize value by minimizing wait times. Your reward will be happier customers.

Free Download: The Definitive Guide to Technology for Startups

2. Offer the most robust, responsive customer support you can.

Even the best companies end up with frustrated customers from time to time. That's a given. How you respond to those customers can determine whether they stick around or leave forever.

You might not think your customer support can measure up, especially if you're running a startup or small venture. It can, and here's why. Many customer support tools such as AI-based chatbots and advanced CRM systems are highly affordable and accessible. Consequently, you won't have to stretch your budget too thin to measure up.

Remember, too, that excellent customer support will pay for itself. It still costs more to gain a new customer than retain a current one. Plus, the more customers who stick with your brand, the higher their lifetime purchases.

3. Keep your employees engaged.

When employees like what they do, they're generally better champions for your company. As a result, they serve a secondary role as brand ambassadors. They may even talk about your organization on social media, further elevating your corporate identity and reputation.

Getting your employees to feel genuine engagement requires treating them how they prefer to be treated. You may want to rethink your policies around allowing telework. Or you might empower team members to make customer-facing decisions without consulting with a manager first.

Whatever you do, know that the more engaged your workers, the more they'll add to the customer experience. Stated negatively, the less your employees feel appreciated, the more likely they are to join ranks with those in the Great Resignation.

The Customer Is Always Right: Why Startups Should Pay Attention To CX Data

4. Communicate frequently with buyers.

You’re overdue for a communications strategy if you don't know the last time you got in touch with your customers. The longer you wait before connecting with customers, the less of a bond they'll feel with you and your brand.

This doesn't necessitate you getting in touch daily—unless daily exchanges make sense for the short-term or long-term. Nevertheless, you need to develop a communications cadence that works for each type of customer. The rhythm may change depending upon what stage the customer is in or what the last touchpoint was.

For example, pretend you're an e-commerce retailer, and a new customer buys something from you. Right away, you text a personalized thank-you note. The next day, you send an email containing a special offer. Two days after that, you send a survey. When the customer's package arrives, you check in to say congratulations. Each piece of communication makes sense for the moment. As such, it heightens the customer experience without seeming forced.

5. Identify and resolve what causes customers to complain.

Whether in a B2C or B2B environment, you'll quickly know your customers' biggest complaints. Maybe your product is hard to understand, at least at first. Perhaps your packaging always seems to arrive a little disheveled or damaged.

Keep a log of all your complaints for several weeks. Then, look for patterns.

After identifying the trends among your complaints, begin to find ways to fix the core issues. A better set of instructions sent along with a product could make using it more straightforward. A different packaging design could be better suited for the rigors of modern shipping. One by one, tackle the most common pain points related to buying from your brand.

It shouldn't take long to see measurable results from this practice. Just be sure to treat it as a constant process since new complaints are bound to arise.

Should Your Business Use Conversational Marketing?

6. Let your customers use their preferred platforms to interact.

Customers tend to use different platforms to work with companies. One customer might want to make first contact with your business's sales representatives on Facebook. Another customer may like the idea of being able to text with a service agent. This well-documented type of behavior begs for an omnichannel marketing and communications approach.

On which channels should you concentrate your attention? Profile your top customers or customer buckets. Find out how they like to shop. Knowing your buyers as much as possible will point you toward the right platforms.

The platforms you invest in don't have to be external, though. Your website or branded app can become communication and exchange destinations, too.

7. Make it a no-brainer for customers to purchase from you.

If you've bought anything online lately, you've probably noticed that many stores offer more ways to pay than ever. These include paying with traditional credit cards to purchasing with cryptocurrencies such as Bitcoin.

Depending upon your product or service price point, you may want to expand your paying options. Many organizations now offer financing, even for items that cost less than $100. Experts predict the buy-now, pay-later movement will reach more than $3200 billion in eight years.

Although you don't have to offer every payment method on the planet, ask yourself if it makes sense to add one or two choices. You might find that your conversions improve more than enough to cover any extra fees you incur.

Differentiating your company can be challenging, particularly if you're in a saturated industry. By putting a premium on delivering an unparalleled customer experience, you can rise to the top of the leaderboard.

StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here

The post 7 Ways To Improve the Customer Experience appeared first on StartupNation.

Pizza! Pizza! Little Caesars Gets NFL Deal and More Pizza News

Posted: 28 Jun 2022 02:07 PM PDT

On this segment of “The Pre W. Smith Show,” Jeff Sloan talks pizza: Little Caesars’ NFL deal and Detroit’s ranking as the best pizza city. Learn more.

Listen to the conversation on the Great Voice.

The post Pizza! Pizza! Little Caesars Gets NFL Deal and More Pizza News appeared first on StartupNation.

FlintSide Reporter Xzavier Simon on a Flint Community Activist

Posted: 28 Jun 2022 01:41 PM PDT

On this segment of “The Pre W. Smith Show,” Jeff Sloan talks with FlintSide reporter Xzavier Simon about his story on Flint community activist Eartha Logan.

Listen to the conversation on the Great Voice.

The post FlintSide Reporter Xzavier Simon on a Flint Community Activist appeared first on StartupNation.

Sen. Ken Horn Says Michigan Needs 1M More People

Posted: 28 Jun 2022 01:03 PM PDT

8 Reasons Why Your Startup Needs Media Coverage

Posted: 27 Jun 2022 09:00 PM PDT

Exposure

The following is an excerpt from "Exposure: Insider Secrets to Make Your Business a Go-To Authority for Journalists" by Felicity Cowie. Copyright 2022 by Practical Inspiration Publishing. 

In the foreword to “Exposure: Insider Secrets to Make Your Business a Go-To Authority for Journalists” by Felicity Cowie, the leading venture capital investor in tech companies, Eileen Burbidge MBE, illuminates the relationship between investment and media relations.

Eileen writes: “Founders are always inundated when starting or scaling their companies and seeking out media coverage may seem a vanity project whilst forsaking investing time in the early team or product.

“However, these efforts aren't mutually exclusive and often what's needed to help develop a stronger talent pipeline or customer acquisition funnel is, in fact, media coverage and establishing the company's position as a thought leader, expert and innovator in its field.”

In her introduction, Cowie goes on to share eight reasons why getting ready for media coverage makes sense, even in the early days of a business in this excerpt:

  1. Gain exposure with zero to low financial investment

Unpaid media coverage has none of the up-front costs of advertising, marketing campaigns or events. Even social media channels, free to set up, often require budget to acquire a consistent stream of meaningful content if they're to gain traction.

However, just one strong piece of media coverage will win you exposure to thousands if not millions of readers or viewers and is evergreen; you can showcase it on your website for years. What you do have to invest is some time to prepare and offer journalists something they're willing to report on. And where you have control over your advertising, campaigns and events you have none over how journalists independently report the information you give them. For this reason, it's wise to make a financial investment in skills to help you best navigate those risks and gain the coverage you want. What you gain if you succeed is exposure from journalists who know how to write to engage, and in almost every media outlet more than one person will work on your story, so you gain a crack team reporting on you.

  1. Build credibility

Third-party media coverage serves as outside validation and helps establish credibility for a business. Journalists know how to find holes in a story and can choose anybody to work with, so when your business is featured in a Financial Times or Bloomberg news story, this is proof you've stood up to their scrutiny and selection. Investors need a reason to believe in your business, and media coverage can give them this, particularly if you can demonstrate the growth of your business from your first big contract win, to partnerships signed and awards won, to transformations delivered in the real world.

When you publish content on your own channels this is always viewed as self-promotional, no matter how valuable. However, if a third party selects and includes you in their content this carries greater trustworthiness.

  1. Build pipeline faster

If you're getting all the coverage above from media outlets that are viewed and valued by your ideal customers, then you can build your pipeline much faster via these platforms, which will be far more established and far-reaching than your own nascent social media channels.

  1. Get highly valuable shareable content

You can leverage media coverage to grow your own channels faster. Media coverage generates buzz because people find “being in the news” or knowing somebody in the news exciting.

You can put backlinks to it on your website, “As featured in…,” post it on social media with words such as “delighted to be joining the global conversation about [the subject of the coverage] in this news story” and attach a screenshot or link to it. The coverage will drive up word-of-mouth marketing and engagement on your own channels and boost search engine optimization.

Investors rely on recommendations from people in their trusted networks, so by sharing your media coverage (especially on channels such as LinkedIn) you're maximizing opportunities for this coverage to be flagged to them within their online communities and newsletters.

  1. Find product-market fit

Einstein said, “If you can't explain it simply, you don't understand it well enough.” And I'd offer as a variant on this, “If you can't explain it to a journalist, you haven't understood your product-market fit well enough.” It may be painful to experience a journalist's blunt “I don't get it” when you attempt to pitch. However, you can take this as free consultancy!

Journalists LOVE case studies, so if you can't provide one that's compelling enough for a journalist this is further feedback that you're not yet defining the problem that your product meets for the market and showing how you solve it.

  1. Become a thought leader and 'category king'

If you're wholly focused on getting one product out to market and that fails, then your only option is to seek out more markets and hope you find your customers before your budget runs out. But if alongside your race to product-market fit you're also getting exposure and recognition as somebody with valuable ideas or thought leadership in your space, then you become bigger than your product, which means you can test out several products until you find something that takes off. This helps you buy time if you need to, but if you've nailed your product-market fit this is a powerful way of communicating that you care about your customers and their worlds – you aren't just selling to them.

You may be attempting to create not just a new product but a new category of product, to become a “category king,” a business that creates entirely new niches to dominate. If you're the only person who can talk about this category and the need for it, then you can create a role for yourself as a “go-to” authority for the media. To gain this traction as a “category king,” or “queen,” you need to use words that journalists will understand and amplify. This whole book shows you how to do this.

  1. Get funding and more funding

All the benefits above are going to put you in a strong position to win investment.

“Businesses which generated the highest amount of media coverage typically saw a 35,635% increase in their funding between Series A and Series B. Conversely, companies which generated a low level of media interest only saw modest increases in their funding – 143.6%.” (Source: Hard Numbers and CARMA, 2020)

Media coverage is evidence that you have valuable “vision- telling” skills in addition to your business. As uber-venture capitalist Bill Gurley said: “The great storytellers have an unfair competitive advantage. They are going to recruit better, they will be darlings in the press, they are going to raise money more easily and at higher prices, they are going to close amazing business developer partnerships and they are going to have a strong and cohesive corporate culture. Perhaps, more to the point, they are more likely to deliver positive investment return.” (Source: Gurley, 2015)

And this all holds true for crowdfunding, too, where media coverage serves to build the buzz and community ahead of the fundraise.

  1. Gain external validation

In my experience, this is, without a doubt, the benefit most businesses want from media coverage. They may understand the other seven benefits logically, but this is the one that speaks to their hearts. In my early conversations with new clients, I've noticed that many really struggle to put into words or outcomes exactly what they want to get out of media coverage. They just know they want it. And I believe what they want is the external validation that media coverage offers.

It's a powerful human need to feel that what you're doing matters to the world. We want to get our businesses off the ground but paradoxically need to feel reassured we aren't drifting meaninglessly above and away from the world we want to interact with and impact. We also know that to attract and retain top talent, great customers, investors and members we need a way to prove that what we're all doing together is valid.

You can read more about all of this and gain tools to do it all in the new book “Exposure: Insider Secrets to Make Your Business a Go-To Authority for Journalists.”

 

The post 8 Reasons Why Your Startup Needs Media Coverage appeared first on StartupNation.

5 Signs You’re Not Managing Your Business Cash Flow

Posted: 27 Jun 2022 09:00 PM PDT

cash flow

Running a successful startup means being able to manage your finances well. In fact, 82% of small businesses shut down due to cash flow problems, according to the U.S. Bank. These problems may either be poor cash flow management or poor understanding of how it works.

Cash flow is crucial for businesses because it enables you to meet your financial obligations such as debt repayments or keeping up with overhead expenses. Not only that, it helps you identify whether your startup is actually growing, and which expenses in your business are no longer necessary.

Since money is the lifeblood of your small business, you need to keep an eye on your finances. But how do you know if you have cash flow problems? How do you address them?

Understanding what cash flow means for your startup

Cash flow is important to understand because it represents the money that comes in and out of the company. Cash flow can be positive or negative, which means that a company either has more money coming in than going out (positive cash flow) or vice versa (negative cash flow). There are a number of factors that can affect cash flow, such as sales, expenses, investments and borrowing.

Cash flow is important because it allows businesses to pay their bills, make payroll and invest in new opportunities. Additionally, cash flow provides you with the working capital you need to grow and expand. It also allows you to keep operations going while you wait for revenue to come in. Without cash flow, startups would have to shut down very quickly.

Take These 5 Steps to Establish Financial Well-Being as an Entrepreneur

What is cash flow management?

As you launch your startup, you may experience having more expenses than revenue. That's normal because during the early stages of your startup's growth, there are costs associated with validating R&D, running marketing campaigns, hiring top talent, paying the bills, etc. But eventually, you will have to bring in more money than you spend–this is where cash flow management comes in.

Cash flow management is the process of monitoring, managing and improving the cash flow of a business. There are a number of factors that can impact cash flow, from unexpected expenses to slow-paying customers. That’s why it’s important for you to have a handle on your cash flow, and to put strategies in place to manage it effectively.

How do you know if you have a cash flow problem?

Cash flow problems don't always look alarming until they become too catastrophic to fix. So before that happens, here are the most common signs you're not managing your cash flow efficiently.

1.    Your customers are not paying on time.

Small businesses are dependent on the money generated from sales. However, this becomes problematic when customers fail to pay on time. With money coming in late, all other areas in your startup would suffer.

WHAT TO DO: Sending invoices to customers early will help you subtly remind them about their payments. When you send invoices early, you give your customers enough time to pay you before it's due.

How Do Smart Contracts Work for Startups?

2.    You are spending more than you earn.

There are a few reasons why spending more than you earn is a bad idea. First, it means that you’re living beyond your means. You’re spending money that you don’t have, and that’s not sustainable.

Aside from that, it can lead to debt. If you’re constantly spending more than you’re bringing in, eventually you’re going to run into financial problems. Lastly, it can be hard to break the habit once you’ve started doing it, and this is a position that’s difficult to get out of.

WHAT TO DO: Make sure you know your numbers–from the cost of making your products or services to running your marketing ads to paying your employees. Also, create a budget and stick to it. Track your spending so you know where your money is going, and make saving a top priority.

3.    You pay your bills and creditors late.

Late payments can be a real problem for your cash flow, and if it’s a frequent issue, it can start to put a strain on your business. Paying your bills and creditors late may greatly affect your credit rating, which is important when securing loans in the future.

On top of that, making late payments entail additional late fees or interest, which can add up and make your debt more expensive. Also, paying bills late can create financial stress and anxiety. It gets difficult to sleep soundly at night knowing that you have outstanding bills to pay.

WHAT TO DO: make sure you have a bookkeeper or are using bookkeeping and accounting tools to help you stay on top of your bills and debts. In case you're having trouble keeping up with your debts, you can always take out a small business loan to consolidate them.

Mistakes This Entrepreneur Made With Her Startup's Finances (and How to Learn From Them)

4.    You and your employees are overworked.

Do you have a lot of things on your plate and still feel like nothing gets done? One of the primary reasons for onboarding more people in your company is you have experts to work on tasks that may be too tedious and time-consuming in your end. Not only that, you get to free up more time from your employees, avoiding burnout that may result in high attrition.

WHAT TO DO: Hiring more employees can help you free up your workload by putting the right people for the right jobs. Doing so not only prevents employee burnout; it may also result in increased productivity among your team. This also gives you more time to focus on critical aspects of your business, such as growing your customers or managing operations.

5.    You're using your personal finances to cover your business expenses.

Using your personal money for business purposes may be detrimental to your company's growth. Why? First, it can create a major separation between your personal and professional finances, which can be very difficult to manage. Additionally, using personal funds for business purposes can put your personal assets at risk if the business fails or runs into financial difficulties.

Also, using your personal money for business expenses can send the wrong message to potential investors or lenders, who may view you as less committed to the business’s success if you’re not willing to invest your own money in it.

WHAT TO DO: Always separate your personal and business accounts to manage your startup’s finances better. When it gets tough to cover costs, you always have an option to get more working capital from lenders.

The bottom line

As a business owner, you need to have a clear understanding of your company’s cash flow. A healthy cash flow means you’ll have the funds you need to invest in your business and grow over time. If your cash flow is negative, it could limit your ability to make these types of investments.

Verizon Small Business Digital Ready: A free resource for grants, basic business skills, the latest digital technology and more.

The post 5 Signs You’re Not Managing Your Business Cash Flow appeared first on StartupNation.

WJR Business Beat: Tech Job Market Starts to Cool (Episode 433)

Posted: 27 Jun 2022 01:12 PM PDT

On today’s Business Beat, Jeff cites a cnbc.com report that tech hiring is cooling and how startups can benefit.

Tune in below:

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!

The job market for tech workers remains hot, but is starting to show signs of cooling off. As we know, tech as a category in general is struggling these days as stocks slump and economic uncertainty takes its toll and in today’s world of startups and fast growth companies, tech workers are simply essential.

Now Susan Caminiti reports on cnbc.com that even red-hot companies like Spotify are cooling their hiring as CEO Daniel Ek sent an email to employees explaining that the company is slowing hiring by 25% and crypto exchange behemoth Coinbase announced it was cutting 18% of its workforce.

Caminiti goes on to report the following: "An increasing number of tech companies have announced hiring freezes, slowdowns or outright layoffs in just recent days and weeks. Even so, demand for tech talent remains generally strong with U.S. employers posting 1.1 million tech job openings in the first quarter of this year. That’s up roughly 50% over the same quarter last year."

"Experts expect to see less cash and more equity in compensation packages in the offers companies make to prospective tech-oriented employees, especially from startups as these companies look to conserve cash in this difficult economy."

So, Paul, this is an interesting moment for small tech companies here in our region, as they compete for that all-important tech talent. Now, one could argue that given the big companies aren’t offering the fat packages that they had been putting in front of top talent prospects leading up to the last couple of. This may be an opportunity for startups in smaller companies to compete more favorably. Of course, the big upside you need to sell these tech workers on if you’re a small business trying to attract that talent, you need to include in your offer equity participation in the startup. And that means that hires you make get to participate in any financial windfall the company may enjoy down the road.

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.

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The post WJR Business Beat: Tech Job Market Starts to Cool (Episode 433) appeared first on StartupNation.

Parade Company’s Ford Fireworks Returns in Detroit

Posted: 26 Jun 2022 09:00 PM PDT

On this segment of “The Pre W. Smith Show,” Jeff Sloan celebrates the return of the 2022 Ford Fireworks in Detroit, presented by the Parade Co.

Listen to the conversation on the Great Voice. 

The post Parade Company’s Ford Fireworks Returns in Detroit appeared first on StartupNation.

Sen. Ken Horn Says Michigan Needs 1M More People

Posted: 26 Jun 2022 09:00 PM PDT

On this segment of “The Pre W. Smith Show,” Michigan Sen. Ken Horn of Frankenmuth explains to Jeff Sloan why he wrote in Crain’s Detroit Business that the state needs a million more people.

Listen to the conversation on the Great Voice. 

The post Sen. Ken Horn Says Michigan Needs 1M More People appeared first on StartupNation.

Derek Gaskins of Aleva Stores on a Key Move

Posted: 24 Jun 2022 12:35 PM PDT

On this segment of “The Pre W. Smith Show,” Jeff Sloan talks with Derek Gaskins about a key moment in the amazing story of his third-generation, family-owned Aleva Stores.

Listen to the conversation on the Great Voice. And catch the entire Business Biography episode by clicking here.

The post Derek Gaskins of Aleva Stores on a Key Move appeared first on StartupNation.

What Could You Give Up? Strategies to Save More and Spend Less

Posted: 23 Jun 2022 09:00 PM PDT

On this segment of “The Pre W. Smith Show,” Jeff shares tips on spending smarter and saving more from moneyunder30.com.

Listen to the conversation on the Great Voice. 

The post What Could You Give Up? Strategies to Save More and Spend Less appeared first on StartupNation.
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