Investing In Your Business

A recent study showed that 71 percent of business owners expect to grow their businesses in 2016, which is up from 56 percent in 2015. This vote of confidence in the New Year is no surprise, given economic indicators and pent-up demand following the recovery from the Great Recession. However, expanding your business requires investment and that requires weighing all the factors before taking the leap.

Here are some indicators that 2016 is the year to expand your business:

• Labor - The unemployment rate in the U.S. is a complex issue; however, one thing is clear: as the rate falls, businesses have to compete harder for qualified applicants. With rates estimated to fall below 5 percent by the end of 2016, now is the time to hit the labor market and bulk up for personnel to handle your expansion. 

• Also, there is a rising trend in the labor market toward contract or freelance workers. According to the U.S. Government Accountability Office, over 40% of the U.S. workforce is made up of these so-called "contingent workers," and this trend is expected to grow. Businesses can take advantage of this trend as they test the waters of expansion by hiring contract workers before committing to full-time employees.
• Interest Rates - On December 16 the Federal Reserve raised interest rates 0.25 percent, the first increase since 2006. Predictions are that the Fed will slowly raise rates a few more times in 2016 and 2017. If you are looking to finance growth, now is the time to act before rates move higher. This article in Forbes suggests that the rate increase may help banks expand small business lending.
• If you plan to expand in 2016, now is a good time to revisit forecasts and growth plans to see how raising interest rates might affect those plans.  Plus look at current loans and lines of credit to see if they are the best option for you in a rising rate environment. If you have a solid credit history, explore refinancing to lower your interest rate and put you in a better position for expansion.
• Marketing Innovations - In the past few years, ways to reach your target audience have increased exponentially. Promoting your business isn't limited to expensive advertising that you're never sure really works anyway or costly direct mail. There are so many other types of promotions that are less expensive and much more easily tracked for ROI. Social media, inbound marketing, and content marketing, to name a few, are excellent means to reach your target audience and expand your business.
• Any expansion plan should include a careful review of your website. You don't have to be a large multi-national conglomerate to have a successful website that can attract and convert customers.

A successful company is one that is continually seeking ways to improve and grow. Contact us for more help with expanding your business in 2016 and beyond.

Keep the Holiday Momentum Going in January!

With the holidays over, small retailers might experience a slowdown in sales. While some might welcome the break, below are a few tips to keep the momentum going in January:

• Offer a special coupon (good for January). Offer current customers (in store or via email) a coupon that they can use in January or Q1. This will bring them back to at least browse and contemplate using the coupon!
• Offer free gifts, just for buying in January. People love deals. If you prefer not to go the coupon route, offer a free gift for any purchases in January.
• Launch a new product or service. One way to get more people into your store is to launch a new product. This can also be a way to introduce your brand to a whole new market segment!
• Contact people who have abandoned items in their shopping carts. Run a campaign to figure out why people are abandoning their carts – offer promotions to get them to come back and purchase what is in there.

It can be hard to get sales in January but with some clever marketing tactics, you can make January a good month. And, of course, if you find yourself in need of a brand upgrade, contact us for some updated branded packaging!

The Small Business Buddy System!

The idea of two companies working together under one marketing plan is not new. It is sometimes referred to as co-branding, which happens when the two products become synonymous with each other. Two great examples are how Dell computes boast Intel processors or how Kellogg's PopTarts uses Smucker's jelly. This strategy adds value to each of the products and also lightens the cost of marketing for each. On the other hand, co-marketing is when two businesses share the marketing and advertising load in order to improve visibility and decrease advertising costs, while retaining their unique identity.

So how can a small business use these tactics? Here are a few ideas to get you started:

1. Find a Complement. Team up with a business that complements your product or service to share advertising. A pet store teaming with a pet groomer or a spa with a nail salon are more obvious ways to market complementary services, but it can also be accomplished in other creative ways. If you are a small bookseller, ask the local coffee shop two doors down if each can advertise for the other, or run promos for customer referrals. An apparel shop and jewelry store can co-market their products. Even a small butcher shop may do well to pair with the neighboring wine seller. Whether it’s as simple as putting a stack of business cards in each other’s stores, or lending inventory to display – start building up relationships like these.
2. Market Together. Include your partnered business’s promotional material with yours in direct mailings (and vice versa) – this splits the budget and may bring in a new customer base. You can also try running an online promotion on social media with your newfound partner – to grow followers on both companies’ platforms.
3. Swap Ads. If you have a website, contact other businesses in your locale with websites to see if you can exchange links or place advertising banners on each other’s sites. Many times, even unrelated business owners are willing to cross-link with other businesses for increased website visibility. I scratch your back, you scratch mine!

In any collaborative marketing effort, it is important to make sure your co-business is reputable and has the same high standards for its customers that your business would have. But well-oiled and well-fed partnerships can take businesses to new levels.

Small Biz Technology: Keeping Up With Big Business

The main goal in retail, or any kind of business, is to keep up with the competition. Small retail chains face much difficulty with this goal due to their small sizes. But that doesn't mean your small retail chain can't compete with the bigger ones. It just means you have to be creative and use technology to your advantage. Below are some technology trends your small business should jump on board with to be able to keep up with big business.

• Move to the Cloud: According to an article in Entrepreneur, "many small-service companies still juggle a combination of paper, spreadsheets and calendars to stay organized." A lot of businesses are making the move to cloud computing, which allows paper documents and data to be stored electronically. It will make work easier for you and provide good service to your customers. You will also be right in line with your biggest retail competitors.
• Go Mobile: Mobile technology now allows businesspeople to access their office from anywhere using their phones or tablets. No longer being limited to your brick-and-mortar store opens up new avenues for strengthening your business and reaching out to old and new customers. Mobile apps are a great way to keep in touch with customers as well
• Start a Customer Loyalty Program: According to Entrepreneur, "in the past, only big corporations had the resources to offer elaborate loyalty rewards programs." However, your small business can offer these programs on a smaller scale, or through new online services that are more cost effective – here is a list to get you started! 

Promotional Strategies to Make 2016 a Success!

How does dictionary.com define “entrepreneur?”

A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.

Entrepreneurs take on a certain amount of risk every day, with every business decision they make. What are some ways to reduce that risk? Smart, cost-effective marketing and promotional strategies to grow the business! Below are some easy, cost-effective promotional and marketing ideas to help you grow your business in 2016, whether you’ve been an entrepreneur for one day or one decade.


1.) Begin a Podcast. Welcome to the era of digital marketing! A podcast is an audio file, usually done in a series, that anyone can download. It could consist of interviews, insight on products, or any idea to help people better understand your company and how it benefits them. Be sure to make it content-driven, not product-driven.

2.) Support a Cause. The old saying, you catch more flies with honey, holds true here. People are easily drawn to kindness. By supporting a cause, you'll spark attention from people with similar beliefs. Include a link to donate in your email marketing campaigns, and include information on how you support the cause on your website, in your emails, or on social media.

3.) Send Targeted Email Campaigns. Similar to the podcast, use your email marketing to get important messages out to your target audience – including deals, giveaways, upcoming events, or important industry topics/news. Again, make sure to mix it up between product/service promotions and interesting content. 

4.) Create giveaways. Who doesn't love free stuff? A friendly competition between customers is a fun way to encourage sales, as such contests spread quickly via word of mouth. Also, people get to try your services risk-free!

5.) Customize Your Packaging. Last but not least, something near and dear to our hearts - a customized packaging program, so people will carry your brand with them wherever they go. Contact us to learn more about how to increase your brand awareness with customized packaging.

How to Turn Your Salon into a Spa!

A successful salon is one that is constantly seeking new ways to improve their services, decor, and profits. Turning your salon into a spa can produce a significant return on your investment if executed correctly. If you are willing to invest the time and money to expand your business, consider the following suggestions to make a smooth, rewarding transition.

• BUDGET: Take a careful look at your finances to decide if you have the money to expand your services, and if so, how much can you afford to invest in your renovation and the salaries for additional employees? If you have an accountant, ask him or her to help you decide on a budget that will not endanger your company's current well-being, and if needed, plan the transition in phases!
• PLANNING: The first step is deciding what spa-like services you would like to offer in the future. Would you like a massage room for customers? How about a nail salon? Another option is offering facials and make-up services for customers. What feedback have you received you’re your customers? You should also take in to account whether your current facilities have the available room to house the spa or whether an addition will have to be made to the building, or new space found. The funding budgeted for this expansion can help you decide whether to go with one of these alternatives or all of them.
  
• DESIGN: If you are creative and can envision how to redesign your salon to incorporate the new services being offered, you can save money by planning the redesign yourself. Otherwise, you will need to engage the services of an interior designer or construction company. The next step is to contact 2-3 reputable contractors to obtain bids or estimates on the remodel and decide how much of an overhaul you can afford to make.
• STAFFING: Once the work is being done to convert your salon into a salon and spa combination, you can then focus on staffing. Just having a license for aesthetics, nails, or massage does not necessarily mean that the applicant is a good fit for your new addition. Since the main purpose of a spa is to offer relaxing, luxurious amenities, you will be requiring employees whose qualifications and personalities harmonize with your business goal.
• ADVERTISING: As the date comes close for the grand opening of your new establishment, the big question is how to make the public aware of the beautiful new spa and its services. Begin by planning a festive grand re-opening to give people in the community the opportunity to tour the new salon/spa combination. Have postcards printed with details of the changes you've made that will serve as invitations. Advertise in the local newspaper. Use social media to your advantage by sharing the event with customers, family, and friends. Finally, consider creating a new logo for your salon/spa to use for advertising purposes.
• THE EXTRAS: With the addition of a spa, you will probably be selling new merchandise such as nail polish, makeup, and skin products. Nothing says "luxury" like beautiful packaging to send the spa goods home in. Personalizing it with your new logo will add a special touch. Stock matching tissue paper, ribbon, and wrapping paper to gift wrap for customers buying for a special occasion.

Adding spa services to your hair salon can be a big jump. Doing your homework by planning carefully and adding those extra little touches of glamour can take your business to a new level. Contact us for help with your packaging needs to ensure that your patrons leave the spa feeling pampered and content.

Closed...on Black Friday!?

REI announced it will not only be closed Thanksgiving Day, but it will not open its doors for Black Friday sales either! Many other retailers are following suit regarding staying closed on Thanksgiving night (but will be open for Black Friday), including Staples, Game Stop, Home Depot, and DSW, to

name a few.

A recent poll revealed that 47% of the participating shoppers think retail stores should stay closed on Thanksgiving, and not open their doors after the leftover turkey is put away. But, it is well-known that the day after Thanksgiving is the biggest shopping day of the year, bringing most retailers out of the red and safely into the black. So why is REI breaking the mold this year?

REI's announcement may have shocked fellow retailers, but it should not have come as that big of a surprise. REI’s mission focuses on their employees, with many employee-first policies, great health coverage, tools for wellness, and even sabbaticals. So, naturally, they would want to give them this time off to be with their families, celebrating the holiday.

It has been said that only well-known, big-box chains can afford to consider a drastic move such as closing on Black Friday. So, how could a small business or “mom and pop” shop survive – or even benefit from – such a closing?

• With social media, early promotion of holiday sales before Black Friday for the first week of December could encourage shoppers to wait for the better price on a less crazy day; also, if you have e-commerce capabilities – you can promote and run sales any time you want!
• Small communities, in particular, take note of businesses that care about their employees, and will be more inclined to shop there – during normal working hours!
• Happy employees translate into more productive work, which leads to better customer service – and that will keep customers coming back again and again – whether you are open on Black Friday or not!

There's no doubt the risk is great in closing on the biggest shopping day of the year, but perhaps REI is on to something. Maybe if more retailers shift to employee health and family time first, big sales and a healthy business profile will follow.