Business Basics: Return on Investment (ROI)

Welcome back to business basics! In case you’ve forgotten, every week we take a look at a basic business concept in order to try to help new business owners better understand it. This week, we are covering Return on Investment, or ROI – a fairly straightforward, but often misunderstood, part of running a business! Though you may think you know all about ROI, you could be using it incorrectly. But first… ROI

What is ROI?

Return on Investment, or ROI, is pretty easy to grasp – heck, the definition is right in the name. It’s whatever return you get after your invest in some part of your business. So if you hire 2 new salespeople, a basic measurement of ROI will be the money they bring in, minus their wages. Continue reading

Share!!!

Why User-Generated Content Matters for Businesses

Why User-Generated Content Matters for BusinessesUser-generated content (UGC) refers to any content that is produced by consumers or users. It can take the form of social media updates, reviews, blog posts, Q&A forums, photos or videos. Many businesses use different kinds of UGC as part of their overall marketing strategy and the benefits getting involved with UGC provides are nearly endless for your business.

  • Enriched user experience – UGC allows your customers and prospects to interact with like-minded people and share their opinions – this could be through posting comments on a blog, on discussion forums or status updates.
  • Enhanced understanding of your audience – User-generated content offers you an excellent opportunity to listen to your customers and be able to better understand their needs.
  • Established trust – Consumers usually base their buying decisions on what other people are saying. Having positive reviews on your site enhances the chances of prospects using your service or buying your product.
  • Search engine optimization – Search engines like Google rank sites based on how unique and relevant their content is. Having user-generated content on your site can play a major role in improving your search engine rankings and even make your site more visible.
  • Cost effectiveness – Hiring designers and writers to create content for your business site can be very expensive, but if you work with an in-house team instead, it’ll help you save on money and time.

Continue reading

Share!!!

ABCs of Small Business Industry: B is for Banking

As we enter week four of our series, we decided to look at a slightly different industry – banking. Now, focusing on banking may seem a bit odd. After all, most people don’t consider banking as something an entrepreneur can even get into. And while there are loads a regulatory loopholes to jump through, plenty of entrepreneurs do start their own bank! And running a bank can be quite lucrative. So if you have experience in the financial industry, and are looking for a change, this could be just the post for you! banking

How do you start a bank?

Like any business, you need to identify a need. Most communities are served by big-name banks like Chase or Bank of America, and people gravitate towards names they recognize. But even if it feels like your community is over saturated with corporate banks, there could be a place for a small, community bank, like if you decide to focus on serving a particular section or area of the community. Some people also like being able to meet face-to-face with a high-level executive to talk about loans or their account – something they’d never be able to do at a corporate bank.

If the market looks good, you then need to work on getting everything organized. Most states require banks to have multiple directors, who then put in an initial offering to get the bank started, usually around 25% of the bank’s starting capital. Since banks need a lot of capital to run, this is usually a substantial amount of money. Most banks sell off shares to raise the rest of their capital.

When your ducks are in a row, you file for a state or federal charter. Filing this form typically costs thousands of dollars, and requires a substantial amount of preparation. You’ll need to include information like feasibility studies, applications for the directors, projected costs, projected salaries – the state or federal government effectively needs to decide whether or not you’ll be successful before granting a charter. After this, you apply for deposit insurance from the FDIC, which requires banks to prove they have enough capital to cover any risk and losses. It will take a few months before the charter application is processed and, once it is approved, you normally have about a year to start the bank officially.

What business structures are best suited for banking?

Because banks are required to have directors, executives, and shareholders, a bank has to be some sort of corporation. However, in some states, a bank is an entity in itself. Though it is run in the same way a standard corporation is.

How stable is the banking industry?

Very. Because banks have to apply for a charter, an outside organization effectively reviews their business plan and target market, and determines whether or not the idea is viable. Banking costs a lot of money, but if you get a charter, you can usually bet that you’ll be successful. The rate at which banks fail has also slowed substantially as the economy has recovered.

Interested in community banking? Have any questions about the banking industry? Leave a comment below, or give us a call at 1-877-692-6772!

Share!!!

What’s the Easiest Way to Resolve Work Conflicts?

What’s the Easiest Way to Resolve Work ConflictsHave you ever witnessed – or even experienced – a workplace dispute that seemed to get worse any time somebody tried to intervene? Even good intentions are not effective in resolving work conflicts sometimes. Trained managers who have the focus to mediate have demonstrated time and time again that they can succeed in supporting the aggrieved parties to reach an amicable agreement.

If your managers know how to handle problems between employees, they will find it much easier to motivate their teams and protect against hits to productivity. However, according to a 2008 survey by the Chartered Institute of Personnel & Development (CIPD), 66% of respondents reported that their managers needed to improve interaction levels with their staff and 27%  stated that their managers had received no training whatsoever in dealing with workplace conflict. This suggests that there is definitely room for improvement within UK businesses on the use of mediation and skilled practitioners in managing difficult situations.  A study in the U.S. found that an overwhelming majority ( 85% ) of employees at all levels experience conflict to some degree.  Furthermore, it was found that U.S. employees spend 2.8 hours per week dealing with conflict, so these issues are proven, not surprisingly, to be affecting workplaces all around the world.

Continue reading

Share!!!

Come Hangout with Us on Google+!

Have any questions about starting your own business? Not sure where to even start? Not to worry! We are proud to announce that, in conjunction with the Google Small Business Community, our CEO Deborah Sweeney is going to be fielding any and all questions about the legalities of starting your own business this Thursday. The Hangout starts tomorrow at 12:30 PM, and if you want your questions answered, you’ll need to RSVP and submit them to the moderator here.

Screen Shot 2014-08-06 at 6.22.53 PM

So don’t forget to tune in! We’re really excited about this opportunity, and look forward to a great discussion.

 

Share!!!

How to Build a Solid Sales Team

It can feel odd hiring a sales team after you start your business. You were probably the only salesperson for the first few years of your company’s life, and giving up such an important responsibility can be jarring. However, if you want your business to succeed, you have to learn how to delegate and grow. Sales Team Actually having a sales team is very different than doing sales yourself. You need to trust them, and their skills, implicitly, even if how they sell is different from how you sold. With that in mind, when you first begin to hire and train your sales staff, remember to…

Look for personability

Friendliness and personability are two of the most important qualities of a successful salesperson. It doesn’t matter if someone has three decades of sales experience – if they’re pushy or irritating while selling, they’re going to lose clients. Sales has changed a lot over the last few years. Cold calling is a wash, and the best way to bring in customers is actually through inbound marketing. Your sales staff has to be able to connect with your customers and talk them through the sale, rather than throw pitch after pitch at them.

Continue reading

Share!!!

4 Surefire Ways to Improve Team Efficiency

4 Surefire Ways to Improve Team EfficiencyOn a regular basis, you probably know by heart that team spirit is very important and that your employees need to come together as a team in order to be successful in whatever branch of business you may be. Even when job applicants submit in a resume, they’re always careful to include a mention that they’re team players and consider what they can bring to the business to be imperative to the team’s overall success. But simply being supportive within a team is not enough. You also need to be able to step up and take all the necessary steps to make the team efficient. Every team has many members and personality types and leading and managing this kind of team isn’t easy to do either. If you want to be successful, you need to inspire your team to reach that point along with you.

Know how to put the team together.

How do you know what kinds of people will best work with you and what characteristics you need to have on board to help out? You can’t compose a team consisting solely of just managers – everyone would be fighting each other to take the reins of the project at all times! If you aren’t even sure of what you should be doing within a team, try taking a test with Belbin.com to find out more about what role is perfect for you and then give the same test to your employees to take for themselves too. You may know your employees well enough already to ensure you don’t need to take this kind of test, but be sure to note that when you assemble the team everyone is able and willing to work together to meet the same goal.

Continue reading

Share!!!

Business Basics – Cross-Blogging

Content marketing is amazing. Studies have found that inbound and content marketing cost 62% less than traditional marketing, and yet brings in three-times as many leads. If you don’t blog, you’re missing out on a huge marketing opportunity, and a great chance to network. Over the last year or so, we’ve really amped up our cross-blogging, and we’ve seen some amazing results. New markets have opened up, our web presence has never been bigger, and we’ve made some great new partners. cross-blogging

But, in finding new partners to blog with, we’ve noticed that some businesses don’t know the first thing about cross-blogging. So to help those of you experimenting with inbound marketing out, here are a few tips on how to make your cross-blogging experience positive and rewarding.

Make suggestions and share ideas

Some of the best articles we’ve ever written have come from ideas brainstormed with our cross-blogging partners. However, entrepreneurs can be a little skittish when it comes to sharing ideas. Now when a business is built on an idea, guarding it makes a lot of sense, but if that idea is nothing more than a possible topic for an 800-word article, you don’t have to treat it like a trade secret. So feel free to pitch ideas with your partners, and build off of each other’s suggestions. A major part of cross-blogging is networking. You want to forge a strong, working relationship with the people you partner with, and brainstorming is a great way to do just that.

Keep the relationship light

New bloggers sometimes get a bit overly zealous when contributing or accepting a post. Before anything is written, they want a thirty-page contract filled out in triplicate and faxed to their attorney’s office. Remember, you aren’t sharing revenue or starting a business together. You’re cross-blogging. A few simple requests like ‘don’t plagiarize’ and ‘don’t publish this somewhere else’ are really all that you need.

Don’t ask your partner to do all the work

We feel like this should go without saying, but we’ve had way, waytoo many potential partners ask us to just write the post for them. There’s no quicker way to ruin this networking and marketing opportunity than by shirking all of your responsibility and expecting someone else to pick up the slack. Treat others the way you want to be treated. Would you want a crummy, hastily written article, riddled with spelling and grammar errors on your blog? We doubt it. Any articles you send to your partner should be insightful, unique, and engaging, and you should expect the same of them. That way no one feels slighted, and your new partnership starts off right. 

Interested in contributing a guest post? We’d love to talk to you! Click here to read our author guidelines, pitch an idea, and get in contact with our social media team.

Share!!!

How Your Business Can Fail If You Aren’t Careful

How Your Business Can Fail If You Aren’t Careful One of the least understood aspects of entrepreneurship is why some businesses fail while others succeed. The painful truth, according to a recent study by the University of Tennessee Research is that most businesses fail for one of the following three reasons.

1) Incompetence

46% of businesses fail due to emotional pricing, reckless spending, nonpayment of taxes, lack of planning, record keeping problems, and no knowledge of financing. Companies that succeed take pricing seriously. The prices they set are influenced by facts instead of emotions. As you set your prices consider the cost of material, labor, and overhead. Also, remember to keep in mind competitor pricing. Does this mean that you have to be the cheapest to compete? Absolutely not. You don’t have to compete on price, but you can’t ignore how much your competitors charge either. You can’t succeed on pricing alone, but your business will fail if you can’t get your pricing right.

Continue reading

Share!!!

10 Declarations of Entrepreneurial Independence

Small businesses are an important part of the American landscape. They’re a major driver of the American economy – 55% of all jobs are created by small business - and the entrepreneurial spirit is as much of a part of our culture as baseball and apple pie. Here at MyCorp, we thought it’d be great to celebrate our upcoming Independence Day by featuring some of our favorite quotes about entrepreneurial independence!

Henry Ford

 

“If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience and ability.” —Henry Ford, Founder of the Ford Motor Company

 

Continue reading

Share!!!