Archives for 2019

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A reader from Georgia asks:

“I suspect one of my employees is stealing from my company. This is someone I’ve known and trusted for over 10 years. She has a family and I’ve been to her home many times for barbeques and birthday parties. I am sick over this situation. What should I do about this employee theft? Do I call the police? Confront her? Give her a chance to resign?”  

  –  Aaron W. from Atlanta, Georgia

Aaron, you didn’t say what the person was stealing or the amount involved. We’ve had some experience dealing with embezzlement and employee theft issues. So we’ll offer some guidance based on various circumstances and explain how to handle it.

Every theft by an employee requires a response of some kind.  Left unchecked, even a small instance of employee theft may get worse. It becomes a habit. And it may become contagious, meaning other employees become emboldened figuring they can get away with theft, too. They may assume you don’t pay attention — or that you simply don’t care.

That said, how you respond depends on the seriousness of the theft and how much proof you have.

How to Handle Embezzlement and Employee Theft

Gather the Facts

The first step is always to get the facts in order.  What you need is proof. Good proof might consist of catching an employee on a security camera stealing money.

However, most of the time the evidence won’t be that clear. You may have to gather documents, get cancelled checks from your bank, or examine accounting records. An important part of investigating is to question employees.

In the investigation stage, ask — don’t accuse.

Because what if you’re wrong? If you falsely accuse an employee of theft, you will irreparably harm the employer-employee relationship. And you could do real damage to someone’s career with a false accusation.

Call employees into your office one by one for confidential interviews.

Here are two examples of how to handle a theft interview. Ask the employee questions about the situation. Start out like the following:

• “I’ve discovered the cash register was short by $200 this month. Do you have any idea what may be going on, Susie?”
• “A lot of our supplies have gone missing. In the last two months we’ve gone through 20 times the amount of coffee K-pods we normally use. Do you know anything about that, Susie?”

What you do next depends on the employee’s response. Watch facial expressions and body language. And see what they say.

The employee may just have a legitimate explanation for whatever you’re investigating. For instance, perhaps she moved something from one place to another, or created different data entries that explain where funds are, without telling you.  This is why you should ask before accusing. And be open minded to the response.

She might also offer some kind of excuse, which you will have to weigh.

If the Employee Admits it or You Have Solid Proof

In my experience, guilty employees often admit to theft when questioned — without much pressure. It’s as if they feel tremendous stress and are relieved it’s over.

So let’s say the employee admits to the embezzlement or theft.

Or you have reached the point in the investigation where you have solid proof.

Now it’s time to switch to confronting the employee and taking action.

Confront the Employee With Disciplinary Action

Depending on the seriousness and nature of the offense, you could take one or more of the following actions in a confidential meeting.

If it’s a relatively minor situation, you might:

• Express your disappointment and that your trust has been violated.
• Give a stern warning and ask the employee to repay or replace what they took.
• When it comes to office and cafeteria supplies, employees sometimes think they have the right to take items home. So you may have to educate the employee about company policies and values.
• If you are so inclined, suggest that in the future the employee ask up front if they need something. Perhaps you’d be willing to offer a salary advance if they need funds. Or give them supplies if they truly are in need. But only if they ask first.
• Document the action such as in a confidential email or memo to the employee.

If it’s a serious matter (complex embezzlement fraud scheme, high dollar amount), your  response is more likely to be:

• Terminate the employee on the spot.
• Or ask the employee to leave the building immediately on unpaid leave. The employee should leave all company property behind including keys, laptop or company issued phone or car. Putting the employee on leave will give you time to consult with your attorney or think clearly about next steps such as termination and calling the police.
• If you put the employee on unpaid leave, you will have to terminate the person officially through some kind of followup communication, either through a letter or another meeting.

If the employee belongs to a union, follow the union’s contract process.

Cut Off Access

Be sure to immediately cut off access to all company systems, data, premises and financial accounts for anyone you place on leave.  And of course do the same if you terminate an employee.

Contact Your Attorney

Involve your attorney early for advice, especially in serious cases. Your attorney can guide you as to how to conduct an investigation, how to preserve evidence, when to call in the police, how to handle the employee, and how to notify third parties.

If you suspect embezzlement of large sums of money or a significant pattern of fraud, calling your attorney is essential!  White collar crimes like check forgery or fraud schemes can be complex. Dishonest employees get good at covering their tracks – sometimes for years. It can take a trained forensic investigator to trace the full scope of a fraud.

Not only that, but serious embezzlements and thefts often kick off a chain of legal ramifications. Your small business may need to navigate a legal minefield including:

• Insurance claims:

  A crime insurance policy may cover your losses, and you will need to file a claim. Your attorney can help protect your claim rights.

• Third parties that may be liable:

  Third parties such as banks may be liable for your losses, and you should put them on notice. But be careful what you say. Third parties will seize on any reason not to pay, including casual comments that could be interpreted as admissions against your interests.

• Government authorities:

  You may be in jeopardy from unpaid tax money that a dishonest employee embezzled unbeknownst to you. You may need to protect against IRS seizures, liens and other actions that could wreck your credit score and sink your business.

• Employee lawsuits:

  Employees may sue you for defamation or wrongful termination if evidence is weak or if you bungle the investigation.

The more serious the matter, the more crucial it is to get legal advice early.

Report Embezzlement to the Police

Many employers, especially small businesses, don’t report embezzlement fraud and theft. But that is a mistake.

If you’re talking about a few missing supplies worth $20, it doesn’t warrant calling in law enforcement.

However, you should report all serious embezzlement situations and any theft involving high value to the police, for several reasons:

• It may be the only way to get restitution.
• Your other employees need to know you take this seriously. You don’t want anyone else to assume they can get away with it.
• If you have insurance to make a claim against, or plan to try to hold another party such as a bank responsible, you will need to press charges.
• You don’t want the embezzler to move on to some unsuspecting future employer because there’s no public record.
• A thorough investigation may help reveal how a fraud scheme occurred. This may help you take steps to avoid similar situations in the future.

Don’t Wait!

The faster you act, the better you can protect your business and the faster you cut your losses.  Besides, workplace theft can throw a business into incredible turmoil and put crushing pressure on you as the owner.

Put Control Systems in Place

One of the most important things you can do is make sure the same thing doesn’t happen again.

Change internal procedures to minimize access and avoid temptation. Put checks and balances in place. For instance, if equipment or inventory is missing, do a better job of using software to track items and security cameras to tighten up security.

Also, require separation of functions.  Never allow one employee to have complete control. Assign one person to process transactions, and another to reconcile the bank account and make accounting entries. Or do one of the functions yourself if your organization is small.

Also bring up the topic of being frugal and emphasize the trust you are placing in everyone, in team meetings.

When you put proper checks and balances in place, you limit the opportunity for temptation and access to do harm.

Find Someone to Talk With

Last but not least, take care of yourself. If the embezzlement involves large sums, you will be upset and perhaps in shock. You may have a mix of emotions roiling around.

Try to control your own emotions and reaction, not just toward the guilty employee but toward everyone else in the business. They are depending on you to be as calm and collected as possible, and not fall apart emotionally. This is another reason to discuss the situation with your attorney.  It buys you time to cool down. Talking with a skilled advisor will help you sort out your options with a level head.

Find a friend or talk with your spouse. You might also want to talk with a spiritual advisor or a mentor.  Or you might pray as a form of talking with a higher being.

Embezzlement and theft is never easy to confront and deal with.  But your business survival and your employees’ livelihoods may depend on the tough decisions you make.

Good luck!

Get more employment advice.

All answers to reader questions come from the Small Business Trends Editorial Board, with more than 50 years of combined business experience. If you would like to submit a question, please submit it here.

Image: Depositphotos.com

This article, “How Do I Handle Embezzlement and Employee Theft?” was first published on Small Business Trends

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When you are competing with the likes of Amazon, it is hard for a small business to deliver on customer expectations. This is especially the case with shipping.

A new survey and report from Clutch looks to find out, “How Consumer Hunger for Two-Day Delivery Impacts Small Businesses.” As more small businesses introduce online commerce with their brick and mortar operations, shipping plays an important role.

Riley Panko, who wrote the report, explains the challenges small businesses face as more consumers order online.

Panko says, “Deliveries must move fast in the age of online shopping. Customers may not understand what exactly goes into getting a package to their doorstep in 2 to 3 days, though – and that their expectations for faster shipping have consequences, including pricing out smaller, local retailers that cannot offer fast shipping on the scale of major online retailers.”

According to Panko, the goal of the report is to help:

• Consumers understand the real-world impact of their expectations for faster shipping
• Small businesses learn strategies for adapting to faster delivery timelines

In order to find out how Clutch surveyed 528 online shoppers. The participants in the survey revealed how quickly they typically get their package. They also shared their opinions on shipping times.

Data of Online Shoppers

According to this survey, 48% of online shoppers say they get their packages within 2-3 days. Another 42% say it takes 4-7 days to get their online orders, but overall consumers now expect faster shipping.

image: ClutchWhen it comes to getting a package within one day, only one in 20 customers or 5% say this is the case for them. So, even though customers expect faster shipping, the vast majority are willing to wait. This, however, doesn’t mean their patience is without limits.

Almost half or 45% will not order from a company again if the delivery is late. Panko gives small businesses great advice on this very data point. She goes on to say don’t promise quick delivery timelines if you can’t execute.

image: ClutchCustomers are willing to wait, but not for it to get there late. So, if they are willing to wait a bit longer, make sure it gets there on time. Otherwise, it might be the last time you hear from them.

Impact of Faster Delivery Demands

No matter what percentage of your business is made up of online commerce, you have to prioritize faster delivery. Because if your customers can count on you and you meet their demands, you will retain them longer.

How can you do this?

You start by adjusting your shipping strategy so you can compete with other small businesses or even large eCommerce companies.

These are the recommendations from the report:

• Reconsider the popularity of their current product offerings and consider streamlining products that are less popular but more difficult to ship
• Understand the benefits of shipping from certain geographic locations
• Communicate constantly with customers about the progress of deliveries
• Be realistic about their shipping capabilities and not over-promise on delivery timelines
• Seek outside help from third-party logistics providers if they can’t keep up with consumer expectations

Conclusion

Last but not least, talk to your customers. An advantage your small business has over a multi-national is you can deliver a more personalized service. With this relationship, your customers probably won’t mind waiting another day or two to get their package.

The key is not to overpromise and deliver the packages late. If the package is going to arrive late, call the customer and explain why. Again, personalizing your connection with the customer is important.

Even if 45% of customers will not order again if shipping is late, the fact that you called to explain the reason might give you another chance.

You can read the full report here.

Image: Depositphotos.com

This article, “Can Your Small Business Keep Up with Faster Shipping Demands?” was first published on Small Business Trends

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Should a Small Business Owner Independently Learn SEO and Digital Marketing?

Do you like business horror stories where the good guy wins in the end? Then this story is for you. With a population of 31,000, Juneau, Alaska is the biggest city in its region. But physical roads to the outside world are practically non-existent. When you think of “global reach”, it’s not a city you would name. Then how did one small B2C business in Juneau ramp up and expand beyond domestic success?

New technologies allowed the brand, named Invisible World, to collaborate better. It let them import from Bolivia and Peru. And source in other countries. But technology didn’t automatically mean smooth sailing. Sometimes technology was a gateway to the company being exploited.

Still Thriving After 34 Years and Several Costly Blunders

Small Business Trends connected with Invisible World’s owner, Stuart Archer Cohen, to take a look back on what they did to grow, and to hear about what they wish they’d done differently. He also shared some raw thoughts about selling through Amazon. Founded in 1985, it wasn’t until 2003 that Invisible World started leveraging ecommerce to sell items.

In 2017, they closed the Juneau storefront to concentrate exclusively on the internet. Invisible World now produces in five countries and sells in eight others. While the company headquarters are still in Juneau, only 23 percent of their merchandise ever actually passes through Alaska.

According to Cohen, costly business mistakes were made in Invisible World’s early online days. Some of those mistakes stemmed from how they didn’t put in the necessary time and effort to understand digital marketing and SEO themselves.

Unfortunately they believed if they threw enough money at a problem, it would get solved. And we all know: Those roads don’t lead to success. But thankfully, Cohen says the success of Invisible World in 2019 has been directly proportionate to the effort they’ve made to understand the big picture.

image: Invisible World Stuart Archer Cohen is the owner of Invisible World, an apparel company that began as a small retail store. Invisible World now sources alpaca, cashmere and silk clothing in South American and Asian countries, and sells in North America, Europe and Australia. Cohen is also the author of four novels.

* * * * *

In the Apparel Industry, Many Traditional Rules of Business Etiquette Still Reign

Small Business Trends: Hi Stuart, I’ll start with a curveball ask. Can you give some business advice that’s ‘not heard enough’ in the textiles industry, but still advice you live by?

Stuart Archer Cohen: My business is 100 percent dependent on my suppliers, and I never forget it. It’s often assumed in ecommerce that this ancient relationship of buyer and seller is as automated as everything else, but, in fact, your supplier can make you money or cost you money.

Suppliers can prioritize your shipment or someone else’s, they can let you experiment with products or require a high minimum order. I go to South America and Asia every year, sometimes simply to have dinner with my suppliers.

Mutual respect will preserve relationships when problems arise, as they always do. We started Invisible World before fax machines, and I am still dealing with some of the same suppliers. Treat suppliers with courtesy and interest and you’ll probably end up with some lasting friends that enrich your life. Conversely, I rarely buy from anyone I don’t like.

image: Invisible World Small Business Trends: Do you notice a lot of online struggles among apparel startups? What areas are they having trouble understanding?

Stuart Archer Cohen: You can’t hire someone to understand something for you. Internet concepts are not difficult, but there are a lot of them. The best information is all online and free and if you put in the time, you will do a better job than almost anyone you hire. Focus on one area at a time or you’ll be overwhelmed. Do the basics well.

Don’t get caught up in sophisticated techniques used by big-budget experts. Do your basic SEO, a couple of simple advertising tactics and perhaps one social media platform, and see what works. Have professional-grade photos and manage your email campaigns well, and you’ll survive long enough to get to the next level.

Burned by a Marketing Agency

Small Business Trends: But not everyone’s willing to do DIY. So are you saying to beware of marketing agencies?

Stuart Archer Cohen: I definitely caution against internet shysters. The right contractor, sourced through a reliable platform such as Freeeup, can be an incredible blessing for your business, but keep in mind that the internet is full of liars, charlatans and incompetents.

I know that because I’ve been fleeced by many of them. Imagine this situation. You’ve read about SEO, or Adwords, or social media, or whatever’s the latest “can’t-miss ecommerce strategy”, but you don’t understand it, plus you’re too busy running your business to become an expert on it. Along comes someone with all the right techy buzzwords, and you give them carte blanche to manage your SEO or Adwords or social. Six months and thousands of dollars later you realize sales are roughly the same despite all this and on top of that you notice Adwords has an average cost of $200 a sale when you’re selling $50 items.

And why do these situations happen? Perhaps the person you hired knew more than you, but was simply not very good at it, or else farmed it out to another contractor, or just didn’t care as long as you were willing to keep making those monthly management payments.

Small Business Trends: Yeah, that angers me, but quacks exist who are more horrible than that, sadly.

Stuart Archer Cohen: A cut below that are the various get-rich-quick internet schemes where fast-talking twenty-somethings pose in front of Lamborghinis while working four hours a week from a beach in Thailand. For just a few thousand dollars, they can introduce you to their secret 9-step formula for success on Amazon, even if you have no product and no business experience. Avoid these shysters and their high-pressure sales techniques. They’re ‘experts’ at identifying your pain points and playing to them, but their careful attention will end once you fork over the money.

“The mistake we don’t make is thinking someone else holds the magic key to success.”

Small Business Trends: It sounds like marketing agencies aren’t your favorite method of getting help.

Stuart Archer Cohen: If you have a big budget and are already making lots of sales, you can probably find a good agency. I have worked with three agencies and each one has been an expensive failure. Agencies like to bill you on a monthly basis, with no tracking of how many hours they spent or who did the work. In that situation, your interests in how many hours are spent on your account are in direct opposition to theirs.

I have found most agency work to be very standard versions of a Facebook or Google Adwords campaign, while most creativity was devoted to their attempts to convince me it was profitable. Excuses for failure always come back to you. You didn’t spend enough money. You didn’t wait long enough, etc. And just because a service is high-cost doesn’t mean it’s high quality.

Small Business Trends: Apart from the importance of avoiding charlatans, what advice do you emphasize when a startup’s new?

Stuart Archer Cohen: Ecommerce is full of hidden costs — shipping costs, subscription services, credit card fees, return fees. If you’re not on top of them, they will definitely get on top of you! Begin by controlling your cost with a detailed small business strategy. When you’re building a business, you tend to focus on the top line and its steady advance. However, most ecommerce entrepreneurs have a day of reckoning when they have to face the fact that their profits are a lot smaller than they thought. And not all survive.

Amazon is the worst offender when it comes to hidden costs. Access to top-line sales is instantaneous and fluid, but getting a handle on the 20 or so other costs that Amazon dings you with is almost impossible without deep digging or third-party software such as ManageByStats. For example, Amazon not only makes you pay for postage on returned items, they also keep part of their commission.

Beware of Opaque Fees and Costs

We discovered we were losing 7% just on items that were returned, and that’s just one example. Additionally, Amazon is extremely opaque in how they name and display fees, making it hard to understand what the fee was for. We pay commission of 17 percent. We discovered that other fees and returns brought our actual payout on gross sales down to about 60 percent. Always keep your eye fixed on the bottom line.

For businesses that haven’t yet built their website and are reading this, it’s been my experience that ecommerce requires a specialized website type which has many needs unrelated to other types of sites. It is not just things like a shopping cart — it also needs to function well as a sales platform. Platforms like Shopify, Volusion and BigCommerce are already optimized for ecommerce and for a single monthly fee will take care of everything. I say don’t build your site from the ground up; I recommend that companies or startups use a simple template and go for a clean design without too many added frills. Whatever you think you need, it will change as you learn more. We still make mistakes, but they are thoughtful mistakes and we learn from them. The mistake we don’t make is thinking someone else holds the magic key to success.

Images: Invisible World

This article, “Burned by a Marketing Agency? You’re Not Alone” was first published on Small Business Trends

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It’s the end of the week and we found out recently, it’s in your best interest to take the time ahead to get some rest.

A new study from the National Sleep Foundation reveals that a good night’s sleep positively affects the workplace.

In fact, that study shows that staying up for 18 consecutive hours is the equivalent of having a .05% blood-alcohol content. Would you go in front of your employees in that state? Unlikely.

So, imagine the impact you’re having if you’re not getting proper rest. The NSF survey found that 90% of supervisors say they’re a positive impact on their workplace when they get a good night of sleep.

Even if you can’t take it easy this weekend because it’s your business’s busy time, be sure to get a good night’s rest.

Freshworks Refresh 19

About 700 people attended the Freshworks Refresh 19 event in Las Vegas. In case you missed, it Brent Leary snagged an interview with the company’s CEO Girish Mathrubootham amid the flurry of activity. You can check out his interview here. And be sure to check the rest of our coverage of the event.

Shaq Shares Secrets of Success at Refresh19

Basketball legend and entrepreneur Shaquille O’Neal sat down with Girish Mathrubootham, CEO at Freshworks. They spoke at the recent Refresh19 conference to talk business and a few other things. They started out discussing how Shaq had a lesser known talent. He was actually a DJ.

Freshworks Announces Freshsuccess for Business at Refresh2019

Freshworks Inc announced Freshsuccess customer success management software recently at Refresh2019. The new tool brings together a variety of features. As a result, different teams in your small business can act together quickly to close more sales. An estimated 700 attended the event Sept 4 and 5 in Las Vegas. So the event functions as a global user conference.

Here’s a look at the rest of the week in news that’s important to small business owners:

Economy

Small Business Cost Cutting Secrets Revealed

With recession fears increasing day by day, it won’t be long before companies start looking for new ways to save money. Economic downturns can be make-or-break situations for plenty of businesses. And, costs are a big factor in who makes it out intact. Don’t wait until the market forces you to slash your budget. By then, it might very well be too late.

Employment

Should I Allow Employees to Dress Up for Halloween?

A reader from St. Paul asks: “I run a small insurance agency. Last fall some of my staff asked to dress up at Halloween in costumes, but I said no. However, I noticed some tellers at our community bank dressed up. And now my employees have asked again whether they can wear costumes this year on October 31st. Should I allow employees to dress up for Halloween?” –  Sue from St.

Quickbooks Payroll Adds New Feature to Simplify Health Insurance

Healthcare is one of the biggest challenges small business owners face. And according to a report by eHealth, 80% of owners worry about the cost.  But even with this worry, owners want to do right by their employees and provide healthcare. Simplifying the process is one way of getting more owners to purchase insurance for their workers.

Finance

Corporate Transparency Act Creates Regulatory Burden for Small Business

Beyond their intended goal, the cost of government regulations have far-reaching consequences. As a result, the National Federation of Independent Business (NFIB) strongly opposes The Corporate Transparency Act of 2019. This bill would limit the ability of anyone to create a business anonymously in the U.S.

Management

Ignoring Workplace Harassment Could Destroy Your Business

Workplace harassment was thrust into global consciousness following the #MeToo and #TimesUp movements, and rightfully so. There’s no place for it in any business, whether it’s coming from leadership or occurring amongst employees. Unfortunately, many companies still don’t address the issue head on.

Marketing Tips

Most Trusted B2B Brands in 2019

Your brand is just as important as your product to overall business success. The 2019 B2B Trusted Brands Report from Sagefrog lists the ones who are the most trusted. Small Business Trends contacted Mark Schmukler, CEO & Co-founder to find out the names and what small businesses need to look for in the B2B companies they work with.

Retail Trends

20 Popular Snacks Small Bar Owners Should Consider

Popular bar snacks remain a critical topic for small business owners seeking to open such an establishment. The options might not always be the healthiest in the world but will definitely rank up there among the tastiest. The number of unique American bar snacks alone can seem intimidating.

Small Business Operations

How to Create a Retail Disaster Recovery Plan for Your Store

As a glance at any day’s headlines will show you, disaster can strike anytime, anywhere. Every small business should plan for disaster. For retailers, however, disaster planning has additional urgency, because you have to worry not only about your employees, but also about your customers.

Taxes

How to Deduct Your Office Costs

You should have a nice office — for many reasons. It can impact employee performance, contribute to customer or client satisfaction, and affect your profitability and ultimate business success. Setting up and maintaining your physical layout entails one-time and ongoing costs. Office Expense Deductions The tax rules on how to write-off office expense deductions can be confusing.

Technology Trends

How to Create a Mobile Device Policy for Your Small Business

Smartphones and other mobile technologies are as important to the modern office as paper and pens were years ago. They help your small business increase productivity by 85% if used properly. But there are security and employee use concerns. Small Business Trends spoke with TRUCE Software CEO, Joe Boyle.

Alexa Blueprints You Can Use for Your Small Business

Smart speakers and voice assistants are taking over. In fact, Amazon alone has sold more than 100 million devices that give customers access to its voice assistant, Alexa. Alexa and other voice assistants like Google Assistant are changing the way people search.

29% of Small Businesses Spend Less Than $1,000 on IT Security Annually

The digital and network footprint of small businesses is continually growing. Online commerce, social media, remote workers, and cloud-based IT infrastructure are just a few of the examples. With such a large digital presence, cybersecurity has to be a top priority for everyone. But businesses are not spending enough on security to combat the clear and present danger they face.

Image: Depositphotos.com

This article, “In the News: Take a Nap – or Lose Your Ability to Manage” was first published on Small Business Trends

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Freshworks Inc announced Freshsuccess customer success management software recently at Refresh2019. The new tool brings together a variety of features. As a result, different teams in your small business can act together quickly to close more sales.

An estimated 700 attended the event Sept 4 and 5 in Las Vegas. So the event functions as a global user conference.

Jon Reed serves as co-founder at diginomica. He is known as an industry insider and he shared some thoughts on the conference.

“Freshworks is obviously one of a number of companies that jostling to bring customer experience to another level,” Reed said. “Both for SMBs and beyond as they push into the midmarket.”

Introducing Freshworks Freshsuccess

Freshness brings your small business team together.

For example, it integrates information from sales and marketing. And the tool also brings in information from other support teams. As a result, the product brings everything together under the same umbrella focusing your small business by streamlining your efforts.

Clients are already praising the new product.

For example, Mark Fuller, head of customer success at Ideagen explains:

“As Ideagen continues its rapid growth, it is vital that we continually nurture and support our existing client base and their ever-changing needs.”

“Freshworks Freshsuccess gives us a more complete picture of the customer so we are able to proactively assist them in their own success. Ultimately, it allows us to improve customer outcomes, onboarding, adoption, time to value and health.”

Customer Health Scores

All the information centers around what’s called customer health scores. These scores help teams to identify who’s ready to buy more of your small business goods and services and which customers you may be at risk of losing.

Customer retention is the name of the game for small businesses. As a result, this new product is designed to help small businesses grow their customer bases too.

Customer Master Record

Central to the new product is a Master Customer Record. It combines information that gets aligned for different teams in a small business.

Marketers can build case studies as reference points. And the master customer record helps identify strong industry performances.

Sales teams can look for the best upsell opportunities. And support experts can get the information they need to respond to customer tickets.

Girish Mathrubootham, founder and CEO of Freshworks explains:

“Meaningful customer insight doesn’t end at market, sell and support. You need to engage continuously to get a customer for life. With Freshsuccess integration, businesses will be able to leverage actionable data across the entire suite of products — including Freshmarketer, Freshsales and Freshdesk — for predictive analytics, customer intelligence and workflow.”

Small business finance teams can get future projections. Because having up to date numbers is always a must have.

It doesn’t matter whether you’re expanding the business or just trying to maintain the status quo. Your finances are the lifeblood of your small business. And taking your businesses’ financial temperature is easier with this new tool, the company says.

Freshsuccess has a launch date of January 2020.

More About Freshworks

Freshworks is a CRM software company that caters to businesses of many different sizes.  And the company maintains a headquarters in San Mateo, California with over 2,400 employees globally. For more information visit www.freshworks.com.

Image: Freshworks

This article, “Freshworks Announces Freshsuccess for Business at Refresh2019” was first published on Small Business Trends

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A reader from Anchorage, Alaska asks:

“I am thinking of becoming an entrepreneur and starting a small business.  But my current job is so uninspiring – I don’t want to get stuck in another boring career. Can you tell me, what does an entrepreneur business owner do all day?”   

–   Susie M. from Anchorage

Fantastic question, Susie. We get asked this a lot.

The short answer is:  small business owners and entrepreneurs do whatever is required to make their businesses a success. This could mean doing everything from emptying the trash cans, to picking up the mail at the post office, to making sales calls, to changing the go-to-market strategy.

It depends on the business and how you as the owner choose to spend your time.

What an entrepreneur does each day also depends on the industry and type of business. There are 30 million small businesses in the United States alone.  Naturally, there will be a wide variance in their day to day activities.

Duties and Responsibilities of a Small Business Owner

That said, every small business owner has six key areas of responsibility:

1. staffing and management,
2. financial,
3. planning and strategy,
4. daily operations,
5. sales and marketing,
6. customer service.

If this sounds really broad, it is.

“As the owner of the business, you’re the captain of the ship. You’re responsible for keeping the entire thing afloat. That’s why you hear about small business owners wearing many hats. You do whatever it takes — no task is too small or too big when it’s your business. And you do it happily,” says our company founder and CEO, Anita Campbell.

To better understand, let’s break this down into specific activities of a small business owner under each of the six areas.

Then later on we’ll share examples of what entrepreneurs do each day in three different businesses.

1. Staffing and Management

Small business owners are responsible for putting a top notch team in place to operate the business. This includes recruiting and hiring new staff.  It also means training and developing existing staff.

Small business owners write job descriptions, provide feedback and performance reviews, and reward employees with pay, benefits and recognition.

According to our CEO, as a business grows the pressure is on. The owner’s role has to change.  “Most business owners start out doing everything. But you won’t be able to keep that up. If you want your business to grow, you’ll soon become a bottleneck if you insist on doing it all. That’s why smart entrepreneurs hire and develop managers as soon as they can afford it. Delegation is smart,” Anita Campbell says.

2. Financial

Small business owners are responsible for the fiscal health of their companies. It’s up to the owner to establish a viable business model for how the company will earn money. The owner is responsible for establishing budgets and sales forecasts — and making sure the company meets them. The owner may actually invoice customers, collect overdue accounts, keep the accounting system up to date and reconcile bank statements.

Above all, the owner makes sure all expenses kept in line and can be met.

As our CEO Anita says, “One of a small business owner’s key roles is to ‘make payroll’ each month. In fact, I should put “Chief Payment Officer” on my business cards. It’s how I think of my main role. You have to make sure the money is there to pay everyone timely — workers, vendors, service providers, tax authorities, creditors and yourself.”

If the coffers get low, the owner may have to arrange for a line of credit or loan to bridge temporary cash flow issues.

3. Planning and Strategy

Small business owners are responsible for setting strategy and having a business plan. They establish the vision and mission for their businesses. “Every entrepreneur should ask and answer the question ‘what do we want to be known for?’ If you can’t do that, your business will be rudderless and could lack distinction,” says our CEO Anita.

The owner also communicates the vision and mission so that employees, customers and the world understand.

As part of planning and strategy, entrepreneurs keep tabs on marketplace trends, competitors and changing customer tastes and needs. After all, any good entrepreneur knows that you must deliver what the market wants and is willing to pay for. This is always changing — it doesn’t stay static. From time to time, you have to update your products and services, adjust pricing or adapt your marketing strategy to meet expectations.

4. Daily Operations

Small business owners are responsible for carrying out daily operations. For example, the owner of an organic food business may have a big role in growing and harvesting  the food.

But it’s important to look up from doing to see the bigger picture. That’s why smart entrepreneurs work on the efficiency and effectiveness of daily operations.

Every company has inefficiencies and waste. Every company has processes that could be tighter. Part of the owner’s role is to identify where that occurs and find solutions. This includes automating tedious manual procedures, or adopting new technology to drive cost out of your bottom line.  It may mean outsourcing non-core functions.

“Small business owners should network with peers. And don’t forget to attend industry events a few times a year. This is how you discover best-in-class technologies and new operational methods. Continuous learning is key to running a business,” adds Campbell.

5. Sales and Marketing

Small business owners are responsible for sales revenue and the marketing to drive sales.

Many owners, especially in the early years, also go on sales calls and help close sales. Owners may get involved in marketing, including establishing campaigns, placing ads, doing email marketing and social media marketing.

6. Customer Service

Small business owners are responsible for the overall customer service experience.  It starts with making sure your company delivers a quality product. But the whole experience should delight customers.

“In the early years, it’s common for the owner to be the person answering the phone or manning live chat to solve customer issues. Later as the business grows, smart entrepreneurs put in place a customer service organization and empower them to solve problems,” says Campbell.

A big part of customer support these days is great technology that’s integrated to avoid data silos and customers feeling like you don’t know them. A CRM system, help desk software, live chat, sophisticated phone system and autoresponder emails are just some of the solutions that can help make customers feel valued.

Ultimately, the owner must build a positive company reputation as reflected in renewal rates, repeat purchases, net promoter scores, and online reviews and testimonials.

What Does An Entrepreneur Do? Some Examples

Let’s look at a day in the life of three different entrepreneurs, to see how their roles are similar, yet vary.

The Owner of a Restaurant

A restaurant owner may go to the market to purchase the food needed for dishes. He or she may do some of the food prep — because sometimes the owner is also the head chef. The owner may greet customers at the door and seat them.

He or she may interview candidates for open positions, or write up job postings. The owner may train staff or ring up customers at the cash register.

Later in the day, the owner may be talking with someone from a sign company about a new building sign, or a landscaping service about planting flowers in front. And the owner keeps the accounting records and reconciles the bank account.

The Owner of a Web Publishing Business

Someone who owns a Web publishing business (such as an ad-supported site), may write articles or otherwise create content for the site. He or she stays up on trends by visiting other sites and social media, to see what’s popular and what other publishers are doing.

The owner may post on social media accounts. He or she manages any ad networks or ad sources, to make sure everything is working properly, troubleshoot issues and try new things to improve. The owner interacts with writers and other staff, providing feedback on content topics or input on new site features or improvements.

A Web publishing entrepreneur also analyzes pages for traffic referrals and for ideas to optimize the site. Along the way, he or she handles the finances and makes sure everyone gets paid.

The Owner of a Plumbing Business

A plumber with his or her own business may go on plumbing calls to customers’  homes or businesses. At a customer’s site, the plumber may take a photo of a broken part needing replaced and send it to an employee back at the office to look it up and order it.

The plumber may have to drive to the parts supplier to pick up a part if it is needed immediately. And he or she stops for gas and for a quick sandwich for lunch.

When a job is done, the plumber writes it up on an invoice, either a paper form or an electronic version on his or her phone or tablet.  Then proceeds to call his next stop to tell them “I’m on my way” and looks up directions to get there.

A plumbing entrepreneur with plans to grow bigger may hire other plumbers to work in the business.  Some amount of time may be spent training them or communicating with them. The plumber may also communicate throughout the day with someon3e back in the office who manages online reviews, does marketing, schedules service calls, or handles other back office functions.

Working on the Business As Well As In It

As you can see, what a small business owner does each day entails working on the business, as well as in the business.

One last piece of advice comes from Anita our CEO, “All entrepreneurs have the power to pick and choose what they want to do each day, whether they realize it or not. If you hate paperwork but love visiting customers, there’s no reason you can’t arrange your business to give you maximum face time with customers while someone else handles the back office.  It may take some planning and a bit of time to arrange your business that way. Just keep on working toward your vision of the ideal workday for you. Life is too short to do anything except what you love.”

All answers to reader questions come from the Small Business Trends Editorial Board, with more than 50 years of combined business experience. If you would like to submit a question, please submit it here.

Image: Depositphotos.com

This article, “What Does an Entrepreneur or Small Business Owner Do?” was first published on Small Business Trends

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Are you not clear about your job as a small business owner? Are you frequently having work-family conflict? If your answer is yes, then you need to take a paradigm shift for your own good.

According to research conducted by The Institute for Entrepreneurship and Free Enterprise, Ball State University, “Emotional exhaustion caused by role ambiguity and work-family conflicts can lead many entrepreneurs to leave or close their companies, even when the ventures are profitable.”

Small business owners, due to limited resources or unwillingness to delegate, often entangle themselves with multiple tasks. Doing so not only can create role ambiguity but also can cause work-family conflicts many a time. And emotional exhaustion caused by these stressors, as found in the research, is positively related to exit intentions.

As a small business owner, you should efficiently tackle role ambiguity and work-family conflict to avoid emotional exhaustion.

Role Ambiguity

Role ambiguity simply means a lack of clarity about one’s job. Being a small owner, especially when you’re a first-time business owner, you can easily fall prey to role ambiguity. How?

This is because you want to do everything yourself. Your business is your baby, and you are reluctant to trust others for sharing responsibility.

Finding opportunities, doing meticulous planning, and adopting the right growth strategies are some of the many critical tasks you need to successfully complete to grow your business. And many times, you are not sure about which strategy or action will be fruitful or futile. Also, you may not be sure about the right away to execute any action or strategy. This uncertainty, in the entrepreneurial context, can add up to role ambiguity.

When employees feel role ambiguity, business leaders are there to support. But entrepreneurs are on their own battling with role ambiguity alone, which can lead to emotional exhaustion.

A good way to fight role ambiguity is to focus only on the critical tasks that you are good at. And you should delegate the rest of the tasks to others. This way, you will be handling work that matches with your expertise, and you will be less likely to be uncertain about it.

Michael Goldsby, executive director of the Institute for Entrepreneurship and Free Enterprise at Ball State, advised, “The entrepreneur shapes the business, but the business also shapes the entrepreneur,”

“And if the entrepreneur doesn’t change as the business grows, or they aren’t prepared to act differently, there’s going to be a breaking point. Either the business, the entrepreneur or both are going to struggle. For people, that’s called emotional exhaustion.” He continued.

Work-family Conflict

Work-family conflict is inevitable if you don’t try to avoid it.

Small business owners often experience long business hours, and they sometimes become too engrossed in their work to actively take part in their family role.

Also, many a time, behavior associated with your work role can be incompatible with your family role, creating a ground for work-family conflicts. These frequent work-family conflicts can put small business owners, like you, in unbelievable stress, leading to emotional exhaustion.

To be successful at both fronts – family and business, you should try to remove barriers to work-life balance and minimize work-family conflicts.

Keeping the Entrepreneurial Spirit Alive

A path to becoming a successful business owner is never even and often it is paved with stressors like role ambiguity and work-life conflicts.

Having a mentor or coach by your side to help you develop personally and professionally can have a major impact on your growth. You will have somebody to turn to when going gets tough.

Mr. Goldsby says, “The entrepreneur has to develop, and if they don’t, it’s going to be a tough road,”

“Good support networks, good coaches, and good mentors help. That’s why you see a lot of family businesses. Previous generations went through something and can coach up the next generation. They can turn to them when they’re facing the same types of challenges. The good family businesses probably had that going on.”

The study included 400 entrepreneurs in the United States and Australia.

Image: Depositphotos.com

This article, “Can Emotional Exhaustion Cause You to Quit a Profitable Business?” was first published on Small Business Trends

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