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…
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
I’ve thought long and hard but I just can’t think of a large, successful company that does not implement performance management. Famously, Jack Welch, CEO of GE, was a huge advocate of it. The reason is probably fairly obvious. Performance management helps businesses achieve results. How so? By ensuring that all employees are performing at their best and pushing in the same direction.
So why don’t start-ups embrace performance management? Typically, there are a number of perceived barriers and questions small businesses have about how it’s done. How do you set up the process? Do you need an expensive system to manage it? Is it too much effort for the ROI (return on investment) in the end?
Here at MyCorporation, we’re busy prepping for the end of the year and looking forward to what 2014 will bring for small businesses and entrepreneurs. But while our prep involves helping to file delayed filings or incorporating or forming LLCs for small businesses, we’re curious to see how other companies are closing out 2013. Today, we have 24 small business professionals giving us a look at what they’re working on for their brands and their biggest business tips on how to close out the end of the year!
1. “Make a resolution to focus on one social media platform. Social media is not going away and it’s time for small business to step up.”
- Lisa McTigue, Social Media Expert, LisaMcTigue.com
2. “We are making sure all inventory is in stock and organized, all marketing materials ready to go and short lead press releases being sent to appropriate parties. We look forward to a successful holiday season!”
- Sally Goodgold, Founder, WarmTradition.com
3. “At year end, I always check in with everyone who was interested to hire us during the year but didn’t. Many times companies find “use it or lose it funds” on the books at the end of the year and if you hit the timing right, they may just reopen the conversation where you left off before and have you invoice them in December to get the found money off the books. Then you can start the new year strong with motivated clients who will return your calls fast since they have already paid you!”
- Paige Arnof-Fenn, Founder and CEO, Mavens & Moguls
Many small businesses undervalue the benefits of an effective email marketing campaign. Many businesses, including some of the largest companies in the world, are migrating from traditional email marketing towards social media sites like Facebook and Twitter. In the rush to follow the current trend, many smaller businesses make the mistake of dismissing email marketing entirely.
Several studies have shown that despite the current trend of advertisers focusing on social media, a vast majority of consumers still prefer contact through traditional email. Additionally, customer responses to traditional email marketing are significantly higher when compared to social media advertising. While every business will want a presence on the social media sites, traditional email marketing still offers the best return on investment for targeted marketing.
Don’t let your marketing dollars get stuck in the vending machine.
It happens to everyone. It’s like a rite of passage. You go to the vending machine to get your chocolate fix and buy a bag of Raisinets. You put your money in the machine but your candy gets stuck on its way out.
You’re bummed out. You weren’t expecting this to happen. You’re faced with the decision of putting more money in the machine to get what you want – or calling some number to complain, (do they ever answer?) knowing you will never get your money back.
Doesn’t it stink when you spend money and you don’t get what you pay for? Or you have to pony up more money when you thought you wouldn’t have to? Especially if it’s for your business!
First off, when you spend money in your business, think of it as an investment. Don’t just think of it as an expense. That way you will be in the mindset of getting a return on your money, which is really what you are paying for. Continue reading
One of the keys to startup success is the ability to efficiently manage scarce resources. Among the scarcest resource for any small business is money. Startups have to adhere to a budget and know what and where the money they are spending is going to.
Asking the right questions can lead small businesses down the right path. When it comes to money, here are five questions that small business owners should be asking in order to get the most bang for their business’ buck. Continue reading