Recessions impact consumers in different ways, depending on their financial circumstances. In most cases, though, economic downturns do some harm to consumers’ pocketbooks. At the very least, signs of a slowing economy lead to changes in spending habits and priorities. With consumer spending making up two-thirds of U.S. economic activity, penny-pinching makes business leaders start to worry. They know recessions can shrink corporate budgets as cash flows turn into a trickle. Like well-off consumers, larger companies may not be as hard hit. Those most at risk are firms toward the other end of the spectrum, including smaller businesses without substantial financial reserves. But just because consumers are cutting back doesn’t mean they aren’t spending at all. Well-positioned brands and offerings can still win over customers when times are tough. Yes, it’s possible to grow a business during a recession. Keep reading to find out how. 1. Reinforce Brand Value When people see their paychecks aren’t keeping up with inflation, they can go into survival mode. Layoffs and reorganizations can prompt the same reaction. Anxiety and fear may surface, driving shifts in shopping behaviors. Someone who used to refuse to go to the dollar store might have a sudden change of heart. It becomes a game of the survival of the fittest, with more consumers strategizing rather than buying impulsively. Business leaders usually find it best to adopt a like-minded approach during recessions. This isn’t the time to abandon brand strategy in favor of piecemeal marketing ploys. Because what doesn’t change is consumers’ emotional connections with strong brands. Sure, people are looking for lower prices. But they’re also seeking quality and value when the road ahead seems rocky. Shoppers are more likely to reach for brands that comfort them and deliver on promises. While conventional wisdom says recessions can erode brand loyalty, it doesn’t always happen if there’s enough perceived value. It’s an approach workwear retailer Dungarees used to expand its business as technology changed shoppers’ habits. The company focused on positioning the brand as the go-to destination for hard-working, budget-minded consumers. Whether people shopped in-store or online, Dungarees reinforced its brand promise of exceptional customer experience, quality products, and value, as Mike McClung, Dungarees CEO, recently told me in an email: “When consumers start paying closer attention to the time value of their hard-earned dollars and focus on longer-term budgets, brands of higher quality start to win the buying decisions. Buying one pair of pants that lasts twice as long for $50 wins over buying two cheaper pairs for $35.” 2. Prioritize Loyal Customers The definition of growth isn’t limited to acquiring additional customers. Businesses can also expand by leveraging relationships with existing clientele. Even in times of prosperity, the probability of converting current customers is substantially higher than new ones. Companies stand a 60% to 70% chance of conversion with existing clients versus a 5% to 20% chance with brand-new customers. It goes back to trust and familiarity. People who know what a brand offers see choosing it as less risky. When businesses reward their behaviors, it becomes more of a no-brainer. Take Starbucks as an example. The company’s profits fell 28% during the 2008 recession, prompting a refocus on customer-centric experiences. Although the coffee giant’s focus back then was gathering feedback and streamlining operations, it’s taking a parallel approach this time. The company’s current emphasis is on making it easier for rewards members to keep buying. This may take the form of 50% discounts on drinks for an extended weekend or extra rewards for repeat purchases. Regardless, existing customers feel as though they’re getting a personalized treat. By growing client relationships, businesses can expand sales even when overall consumer spending is down. 3. Become a Brand Partner The likelihood of slower sales can be enough to tempt business leaders to slash marketing budgets. However, cutting spending in this category isn’t always a good idea. Nielsen research shows 10% to 35% of brand equity is marketing. And brands that go radio silent typically lose 2% in long-term revenues every quarter. It can also take three to five years to recover those losses if companies restore marketing spend levels when conditions improve. In challenging economic times, a wiser tactic is to reallocate advertising and promotion dollars to well-performing channels. Some of those channels can be brand partnerships and sponsorships of nonprofit organizations. Companies can get more returns from partnerships that build credibility and extend reach. In the same way, sponsorships of nonprofits boost a business’s visibility while giving consumers a feel-good reason to support the brand. One example is Panera Bread’s Day-End Dough-Nation program, through which it partners with nonprofits nationwide. Instead of throwing away unsold baked goods, Panera locations donate them to local organizations such as food banks and homeless shelters. “Some other companies may sell their day-old products the next day at a discount,” Udo Freyhofer, Florida cafe manager, said in a statement. “We don’t. I feel good about having fresh items available for our customers while helping out those in need in our community.” The value of those donations was nearly $100 million during 2021. The program is only one of the company’s community-oriented partnerships, but it is instrumental to the brand’s identity and encourages customer loyalty. Growth in the Face of Adversity When consumers slash their budgets, business leaders can feel like the deck is stacked against them. How can they possibly grow sales when economic figures show spending is slowing down? The fact is, recessions usually signal a shift in shoppers’ priorities instead of a complete shutdown. As long as brands can appeal to those needs in cost-effective ways, sustaining growth is possible. Source: https://www.forbes.com Image Credit: Getty
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Small business owners are proverbially the wearers of many hats. You’re the CEO, the marketer, the salesperson, the head of HR, the customer service representative, and more. It can be tough to keep up with everything, and it’s easy to get bogged down in day-to-day administrative tasks, which takes time away from more important revenue-generating activities. That’s where a virtual assistant (VA) can help. A VA is a remote worker who can provide administrative, technical, or creative assistance to your business. They can handle tasks like scheduling appointments, managing your email, creating presentations, and more. Benefits of hiring a virtual assistant Hiring a VA has several benefits: Time saver As noted above, a VA can help you get more done by working on administrative and other tasks. So instead of juggling creating marketing strategies with sifting through hundreds of emails or scheduling sales calls, you can get the jobs done simultaneously—by you and your VA. Productivity booster A VA can help you improve your efficiency by streamlining your processes and automating tasks. This also frees up your time and lets you look at the bigger picture. Saves you money The cost of hiring a VA is often lower than the cost of hiring a full-time employee. This can save you money, especially if you’re a small business owner with limited resources. Finding and hiring a virtual assistant When looking for a virtual assistant, consider the following factors:
Once you know what you need, there are several places you can find potential VAs. Here are a few options:
After you’ve found a few potential VAs, interview them to see how well they communicate well and if they’re a good fit for your company. How to successfully work with a virtual assistant The key to a successful relationship with a VA is being able to delegate. Delegation, however, is one of the hardest things for many small business owners to do. They often think no one can do as good a job as they can. This is wrong; it’s time-consuming to do everything that needs to be done, and silly to think a business owner's expertise is needed to do administrative tasks. Here’s how to delegate and work with a virtual assistant: Choose the right tasks to delegate Not all jobs are created equal—some are better suited for delegation than others. When choosing which tasks to delegate, consider the following:
Set clear expectations When you delegate a job, setting clear expectations with your VA is important to avoid misunderstandings. Outline what tasks are to be done, be clear about your communication preferences (e.g., do you want to be contacted via email?), how often you want to receive updates, and deadline dates. Provide the necessary training and resources Your VA needs to be trained on your company’s policies, procedures, and software. You may also want to provide them access to resources like your CRM system, social media accounts, or email. Depending on the specific jobs and projects you assign your VA to do, look for tech tools that enhance collaboration; improve communication beyond emailing, such as texting, instant messaging, or a chat app; and assist with project management. Check out tech comparison sites to review your options, such as GetApp, Capterra, and G2. Offer regular feedback It’s critical to provide your VA with regular constructive feedback so they can pivot and improve their performance if they’re not meeting your expectations. Make sure to tell them what they’re doing right and when they exceed your expectations—praise matters. And just as you should provide feedback to your VA, you should also be open to receiving feedback from them. This feedback can help you to improve your delegation skills and better understand the needs of your VA. Source: Rieva Lesonsky Image Credit: Pixabay
When it comes to hiring someone for their team, nearly every employer likely already has an image of their ideal candidate in mind. Whether it’s someone who isn’t afraid to push the envelope or someone who is reliable, trustworthy and gets their work done on time, the “ideal” hire can vary from employer to employer, sometimes making it difficult for potential candidates to know what qualities they should emphasize in their application. To provide a little bit of guidance, business leaders from Young Entrepreneur Council list 11 words they’d use to describe their ideal employees and explain what it is about those specific characteristics that makes someone such a great hire. 1. Motivated An ideal employee is motivated. A motivated employee is passionate, takes initiative, puts in extra effort, seeks growth opportunities and is resilient. They can bring significant value to the organization and have a positive impact on company culture and morale. - Nic DeAngelo, Saint Investment - Real Estate Funds 2. Curious If I had to choose one word to describe my ideal employee, it would be "curious." I'm a firm believer in constant innovation. When you hire employees who do exactly what they are told instead of asking questions and trying to understand why systems are in place, you may create blind spots and miss out on amazing opportunities to grow and evolve. I also like curious employees because they force me to reflect on my decisions, which means I have the chance to ask myself, "Is this really the best way to accomplish our goals?" - Daman Jeet Singh, FunnelKit 3. Responsible The top word I’d use to describe my ideal employee is “responsible.” This is because I run a fully remote company and there's no way to manually track the work of over a hundred people in different time zones. We need people who make an effort to understand what their tasks are and then carry them out. They have to be responsible for their work. Such a characteristic serves employees too because it means that no one is going to micromanage them. Being responsible makes it possible to work your own hours in a remote setting, and it helps me hire people from anywhere in the world too. - Syed Balkhi, WPBeginner 4. Resourceful My ideal employee is resourceful. Rather than bringing every hiccup to the team or their supervisor, this employee is capable of fixing small issues on their own, and they are resourceful enough to present problems alongside possible solutions. By definition, they are a quick and clever worker because they have the confidence to problem-solve on their own. - Leila Lewis, Be Inspired PR 5. Determined I like to say that finding someone who has a “fire in their belly” and who is passionate about what the organization does is the number one nonnegotiable trait I look for in employees. Starting and running a business is hard, and the best companies don't spend time motivating employees. Instead, they hire people who are already motivated by the mission and goals of the company. The best way to build a business with the right people is to ensure everyone is excited about your mission and has that fire in their belly. - Arian Radmand,IgnitePost 6. Adaptable We work in the marketing industry—the sphere that doesn't have a template for anything. When it does, it's probably too late. So everybody on our team has to be able to implement new ways of doing things pretty much every quarter. We realize that this is not for everybody, so it's extremely important that whoever is joining our team is able to thrive in an ever-changing environment. - Solomon Thimothy, OneIMS 7. Solution-Oriented An ideal employee for any brand is one who possesses a solution-oriented or opportunity-seeking mindset. These employees bring with them a unique set of qualities and skills that can significantly contribute to the success and growth of a company. One of the most significant benefits of having such qualities is that it enables employees to approach challenges and obstacles positively and creatively. Instead of feeling demotivated by problems, solution-oriented or opportunity-seeking employees perceive them as opportunities to learn, grow and innovate. This perspective encourages them to think outside the box and explore new and innovative ways to solve problems. This leads to more efficient and effective solutions and helps the company thrive. - Kelly Richardson, Infobrandz 8. Diligent Having a diligent employee helps ensure that tasks are completed on time and to a high standard. This employee is able to stay focused and motivated and is willing to put the extra effort in to get the job done. This is an ideal trait to have in an employee and can help create a positive work environment. - Rachel Beider, PRESS Modern Massage 9. Committed For me, being committed checks all the boxes that make a person the right fit for the respective role. Committed employees won't shy away from learning new skills that can help increase performance, embracing company values, keeping the company's goals before their own, getting the job done and, most importantly, staying devoted to the responsibilities assigned to them. So, onboarding a person who's committed may increase your chances of finding the right fit for the company. - Stephanie Wells, Formidable Forms 10. Independent If I had to pick one word, it would be "independent." Whether someone is working alone or on a team, they also need to be able to take initiative, think for themselves and sometimes come up with their own solutions. An independent employee is someone who doesn't simply follow what everyone else is doing but who looks for new and creative solutions. Of course, they also need to balance independence with being a team player and serving the needs of the project or client. - Kalin Kassabov, ProTexting 11. Proactive Proactive employees are those who take initiative, are forward-thinking and go above and beyond what is expected of them. They take ownership of their work and are always looking for ways to improve processes and outcomes. Proactive employees are self-motivated, adaptable and able to work independently, which can save time and increase productivity. They are also able to anticipate and prevent problems before they occur, leading to improved efficiency and cost reductions. Overall, having proactive employees can help drive innovation and growth within the organization, leading to long-term success and a competitive edge in the market. - Kyle Goguen, Pawstruck Source: Expert Panel Forbes Councils Member Image Credit: https://www.forbes.com
This year was supposed to have been more difficult. Inflation was expected to tank customer spending. A recession was imminent. You wouldn’t have been crazy to think supply chain issues might get between you and your toilet paper again. With the job market and economy looking a bit better than predicted, some economic observers are beginning to embrace a “soft landing” narrative. The prospect that inflation might slowly be brought under control without sending the economy into recession means that business leaders don’t need to operate in total crisis mode. But that doesn’t mean everything is smooth sailing, either. Here are some of the major challenges business leaders face today and how to begin tackling them. 1. Coexisting With Economic Uncertainty While the economy isn’t as bad off as many had forecast, unpredictability has brought unexpected challenges. Consumer behavior isn’t consistent with economists’ projections. People just keep spending, even when the best forecasting tools say they shouldn’t be. When they do spend, they choose low prices over brand loyalty, making demand forecasting even more problematic. Accordingly, leaders don’t know when to slash prices or raise them. Meanwhile, layoffs are rampant at companies like Spotify and Amazon, even as the healthcare, hospitality and retail sectors continue to suffer a labor shortage. In short, no one really knows what’s going on, and consumers may be losing trust in their favorite companies. Businesses that thrive in the latter half of 2023 will be the ones that act cautiously yet flexibly. They’ll take cost-cutting seriously and adjust prices accordingly but not drastically. They’ll streamline their organizational structure, ideally while avoiding massive layoffs. Perhaps most importantly, successful leadership teams will communicate clearly and transparently to employees and customers. The uphill battle for consumer trust will continue in the years to come. Justifying decision-making that may seem erratic will form a big part of every company’s survival strategy. 2. Managing Remote Work and Retaining Top Talent Working from home is no longer the mess it was in 2020. But WFH and hybrid office arrangements continue to pose workplace challenges. According to Forrester, 40% of companies will try to put an end to work-from-anywhere policies in 2023. The consulting giant believes the push toward AI surveillance of remote worker productivity will push over half of WFH employees to seek new employment this year. These new company policies regarding remote and hybrid work will erode workers’ trust in their employers over time. And with ongoing turnover and issues with morale, employees’ perception of their companies’ matters more than ever. Business leaders will need to find ways to keep employees happy or risk them leaving, as voluntary turnover continues unabated. Talent retention starts with, where possible, better pay and benefits. Improved company culture can also make a difference. Leadership teams should survey employees to gauge employee engagement—or better yet, schedule one-on-one interviews to gather intel. They should look for more ways to keep employees motivated, particularly in the form of growth and learning opportunities. 3. Warding Off Security Threats In 2022, the U.S. saw 1,802 data breaches, affecting 422 million individuals. Data breaches will continue to be a significant business concern, especially as remote work is likely to further complicate cybersecurity. Employees will work over less-secure connections or take equipment out of the office, exposing it to outside threats. Many will access sensitive work data from their phones, which are more vulnerable to hacking attempts. AI will also pose increasing threats to cybersecurity, as hackers use generative AI to create sophisticated scams. But the disease could also be the medicine: AI and machine learning can alert businesses to irregularities like breach attempts. Companies will need to upgrade their security protocols to avert cyberattacks. This includes everything from installing robust cybersecurity software to training employees on how to avoid phishing scams. They’ll need to invest in the right tools for the job and in educating workers with access to personally identifiable information. Smart leaders will take cybersecurity extremely seriously and implement response plans before a crisis happens. They’ll observe stringent authentication protocols and carefully restrict employee access to sensitive data. They’ll know what steps to follow in the event of a breach and how to communicate about it to the public. Reestablishing Reliability The unpredictability of the last three years has changed the behavior of employers, employees and customers alike. That’s why providing a greater sense of dependability and transparency is imperative for modern businesses. Customers need to know that companies will provide consistent quality and value. Workers need to believe that their employers will nurture their growth. And everyone—customers, employees and employers—needs to trust that their data is safe from attack. Businesses that flourish in the months and years to come will be those that offer a feeling of safety and stability. They’ll act in ways that let their employees and customers know they can be counted on, no matter what. And they’ll make a name for themselves by giving people in this uncertain time something to hold onto. Source: John Hall Image: https://www.forbes.com
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