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Tuesday, 8 May 2018

Have You Made a Big Mistake? Here's Why That's Good News for Your Company.

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Don't just say 'oops' and move on, because fixing a flub can be a prime opportunity for engendering customer loyalty.




6 min read





Opinions expressed by Entrepreneur contributors are their own.







March 2018 was a lousy time to be a Facebook executive. As the Cambridge Anaytica data fiasco unfolded, the world held the social media giant under a microscope.

Time and again, Facebook’s reactions failed. Stock plummeted. Zuckerberg landed in front of a congressional committee. And what America got to watch as a result was textbook bungling by a major corporation.

Related: Mark Zuckerberg Doesn't Seem Very Sorry or Very Forgiven

No executive wants to experience a public failure of such catastrophic proportions. Yet bad things happen to practically every company -- more often than leaders might like to admit. Ironically, though, those executives can turn that bungling into some of the best, even amazing, opportunities to connect with people. When handled well, mistakes can actually create customers for life.

Turn your frustrated customers into loyal fans.

In any relationship, the true test of character comes when things go awry. Business isn’t any different. How you respond to a crummy situation -- regardless of whether you were at fault -- could turn an indifferent or irate consumer into a chest-thumping loyalist.

Think this isn't true? Consider: A cement company I know purposely screws up just a little bit on every job. Then, its managers wait by the phone for an angry call. When one comes in, those managers  rush out to fix the mistake within an hour. Customers are routinely surprised by the responsiveness, and they pile on referrals like mad.

While I wouldn't recommend taking such missteps on purpose, I believe that after you make one, you should never run and hide. After all, customers don't expect quick, easy fixes. They expect to have a rough time. But, if you go out of your way to make it right and do it fast, you'll be one step closer to winning their hearts.

Related: It's Your Fault: 5 Steps to Repair A Client Relationship

My own company has handled plenty of uncomfortable situations, but none as cringeworthy as this particular nightmare: On behalf of a client, we sent a prospect a gift of cutlery engraved with his wife's name. The problem: Our client had given us outdated information. The name we engraved belonged to the prospect's ex-wife. Oops.

Although the mistake wasn't on our end, we wasted no time in addressing the error. Instead of simply replacing the original gift, we sent the client one worth five times as much. And this wasn't a one-time thing: We go to the same extremes every time we goof up. We operate under the principle of radical generosity. And, truth be told, it's fun.

Own up, and move forward.

Feel like you’re not yet at the pinnacle of unparalleled customer service? Put the following standards into play to enhance your customer relationships and boost your company's reputation:

1. Act immediately. Take action the instant something goes wrong, and solve the problem in as few steps as possible. If you show you can fix a mistake right away and without passing the buck, you'll teach your team to do the same.

Microsoft research shows that quality customer service is as important as ever: In its 2017 Global State of Customer Service report, Microsoft found that two of the most important aspects of a customer service interaction were resolving a problem in one interaction and not passing the customer from person to person.

Show your team it's important to boldly and quickly solve problems, and you'll be on your way to success. My team recently discovered that we had sent several recipients the wrong products. Instead of avoiding the issue or waiting for me to solve it, team members developed and presented an action plan for ways to fix the issue. They planned to get the recipients so excited about our solution that they'd forget we had even made a mistake.

2. Take a walk in your customers' shoes. Every time you hit a snag, start with this question: "What would exceed my expectations at this point?" If you're being generous and you trust everyone on your staff, you'll be able to brainstorm quickly and come to a solid answer.

Your goal shouldn't be to deliver bland, vanilla service that your customers won't remember. You should aim to provide a "wow" factor other organizations can't meet. Your customers should leave the experience feeling not just satisfied, but thrilled.

In Wunderman's "Wantedness" survey, 63 percent of U.S. customers surveyed said they thought the best brands were those that "exceed expectations" throughout the customer journey -- and that that journey doesn't end with a purchase. So, go the extra mile in terms of customer support, especially when you make a mistake, and you'll stand out in your industry as a company that truly understands its customers' wants and needs.

3. Correct the problem, then overdeliver. Imagine being a florist unable to deliver all of your Valentine’s Day orders. That was UrbanStems’ dilemma, in 2017. The fledgling shop had accepted too many orders, had too few people working in fulfillment and ran out of time. Despite delivering flowers into the wee hours of the morning on Feb. 15, it incurred quite a bit of wrath.

Rather than sinking into a deep hole, however, the founder refunded everyone's payments and gave out his personal cellphone number to unhappy customers. He received hundreds of calls. He also saved face. UrbanStems went beyond just returning the money. The company sent a strong message by going far beyond the necessary actions.

My team has a similar philosophy of putting people first and finances second. After one notable flub, we determined that we weren't just going to make things right with the client -- we'd go overboard and douse everyone around the client with love, including the employees who might have been most affected by the mistake. Eighteen gifts later, we knew we had gone above and beyond and that we had done our best.

Related: Why Exceeding Expectations Is Essential to the Long-Term Success of Your Business

Final words? You can’t stop problems from occurring. They’re going to happen, no matter how hard you try to avoid them. But you can control your response 100 percent. That's why you should act fast, keep your customers' best interests at heart and exceed their expectations. That way, you'll be well on your way to turning an unhappy customer into a loyal one.







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Why Customers Don’t Respond To Disruption

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Small and medium enterprises (SMEs) are a vital component of the South African economy. However, there is a substantial portion of the country’s estimated 650,000 SMEs that have no access to funding to assist in their continued growth


In response to an increase in demand for reliable and easily accessible capital for businesses like these, XPRS Capital Africa opened its doors in South Africa. The specialist business funding provider is geared towards rapidly vetting and approving short-term business funding ranging from R50,000 to R500,000. In addition, XPRS Capital Africa specialises in extending funding to SMEs that may not qualify for funding from traditional lenders.


Simon Leps, CEO of XPRS Capital Africa explains that XPRS Capital has its roots in the US, having been founded in 2013. “The company is a renowned and established alternative online business-to-business lender. Together with a team of data scientists and using thousands of data points, XPRS Capital has developed a proprietary credit vetting algorithm and packaged product set.”


Related: Angels & Demons: What To Know When Negotiating Equity Funding For Your Start-up


“The technology and approval processes developed by XPRS Capital has a massively successful track record overseas and the experience that our company has gained over the years will help many more SMEs in South Africa to reach their potential,” says Leps.


“The XPRS Capital platform has processed over $1b worth of loans and has a proven track record of funding thousands of businesses across hundreds of industries,” he continues.


Leps adds that the company’s sophisticated algorithm allows XPRS Capital Africa to provide funding to many South African SMEs that are usually denied loans on the basis that their owners have less than ideal credit records. “Traditional lenders are often reluctant to lend capital to SME owners whose credit histories place them in higher risk categories. This has created a massive challenge for many promising SMEs. At XPRS Capital Africa, we focus on the health of the SME, and use state-of-the-art technology to provide businesses the cash flow they need to grow and flourish.”


Using the unique algorithm that we have optimised for the South African market, we are able to accurately assess any SME that has been in business for over a year, to rapidly provide a 3 to 12-month funding solution, notes Leps. “The online application takes less than 10 minutes, allowing SME owners to spend less time filling in forms for funding, and more time on their business.”


XPRS Capital Africa provides funding directly, working closely with SMEs to offer the fastest approvals, best possible repayment terms and most accurate risk profiles for any business.


“Cash flow is the lifeblood of every single business. Our mission is to provide this quickly, affordably and reliably,” Leps adds.


He notes that, given the high number of businesses that have trouble accessing financing, SME owners should also know how to maintain their own positive credit records. Thereby they can ensure that their businesses have access to as many options as possible.


“Ensure that all areas of your company are looked after to the same degree as most funding providers want to see that all aspects of a business are well managed. Up to date, audited financial statements and management accounts, well managed bank accounts, and good budgeting and forecasting show that the owners are attentive. Owners also need to know their businesses inside and out and be able to answer questions about their cash flow and deal pipeline.”


Related: The Investor Sourcing Guide


In addition to this, Leps says that the customer’s experience when dealing with the business could also have a measurable impact. “Any touchpoints that are available to your customers will be looked at by potential funders, so all customer facing assets should look professional and be kept up to date. This goes for websites, online portals and social media accounts.”


“The ability to access additional funds when your company needs it is the key to long-term survival. That’s why it is paramount to maintain the best possible credit record. However, it is also important to remember that, whatever the financial state of your business, business owners are never completely out of options,” Leps concludes.


For more information or to apply for funding, please visit https://www.xprscapital.co.za/ or contact XPRS Capital Africa on (087) 625-0665  or info@xprscapital.co.za.





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4 Everyday Industries Blockchain Technology Is Changing

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5 min read





Opinions expressed by Entrepreneur contributors are their own.







We are currently in the midst of the second dot-com-type boom -- this time it’s “the blockchain boom.” Just as the internet changed every aspect of the business world, many believe blockchain technology is the next breakthrough.

Not only is blockchain altering industry norms, but it’s also challenging organizations to re-think how and why they implement new projects. The decentralized philosophy behind blockchain technology is flowing into team structures -- for the better.

Ivan Goldensohn, CMO of Dispatch Labs, a blockchain architecture which facilitates the development of secure, decentralized, peer-to-peer applications, believes that taking a decentralized approach to leading newly-formed blockchain team efforts is integral to success. Goldensohn says, “I’m all about autonomous elements on my team. By establishing trust and granting autonomy, people tend to be more creative, more engaged and do better work.”

As organizations aim to disrupt a range of industries, it will be crucial for teams to implement organizational structures that parallel the decentralized nature of blockchain technology. Powered with secure, decentralized protocols and revamped attitudes toward decentralized management, blockchain has the potential to spark rapid progress across every industry. Here are four everyday industry use cases to give you an idea of how this is all unfolding.

Related: 15 Crazy and Surprising Ways People Are Using Blockchain

1. Finance

On the financial side, there are opinions all across the board regarding the role cryptocurrencies will play in the future of macroeconomics.

Between big banks, institutional investors, venture capitalists and day traders, some opinions lean bearish, while others are all-in and bullish. Either way, one thing is certain -- the financial world as a whole isn’t waiting around for a final declaration.

By the end of 2017, futures markets had been created for Bitcoin, signaling a long-term future for the cryptocurrency -- and others to follow suit. On top of that, 2017 was the year Initial Coin Offerings (ICOs) raised more money than venture capital investments, according to CNBC.

As Bitcoin, Ethereum and Ripple continue to improve their ability to process transaction fees faster and faster, these cryptocurrencies will soon compete with the speed at which credit card companies can process transactions.

2. Cloud computing

In the past few years, we’ve taken the evolution of the cloud for granted. Remember, it wasn’t that long ago that files had to be carried from one computer to the next on a bulky hard drive.

Blockchain-based platforms like Akash see this as a massive opportunity. With most large-scale data centers sitting on idle computing power, Akash wants to create an open marketplace for providers and users.

In a sense, users can “rent” idle computing power from any provider listed on the network, and providers can turn their idle power into a viable revenue stream. As a result, a marketplace will be created where cloud computing costs are based solely on supply and demand -- instead of centralized, fixed prices.

3. Online gaming

The world of eSports and online fantasy sports has experienced exponential growth over the past decade. Considering online games were the ones that pioneered some of the earliest version of cryptocurrencies, it’s no surprise that these industries are early adopters of blockchain technology.

According to TechCrunch, “the fantasy sports industry is worth more than $7 billion.” When you consider the fact that FanDuel and DraftKings own 90 percent of the fantasy sports industry, it’s clear to see where there is potential for disruption.

Companies like MyDFS are already allowing users to create virtual lineups of real players, receive winnings -- in the form of tokens -- based on player performance, bet on the performance of other players and more.

When you consider that the hottest monetization model for smartphone app games is in-app purchases, it’s highly likely many more developers in the online gaming space will make use of blockchain technology and cryptocurrencies.

Related: 12 Startups Utilizing Blockchain Technology in New Ways

4. Decentralized governance

One of the most celebrated facets of blockchain is decentralization. Although the idea of building completely decentralized organizations is exciting in theory, bringing a completely decentralized, autonomous entity to life is a different story.

In many cases, a natural hierarchy or power structure begins to build, with one person or group’s voice outweighing others. Luckily, new frameworks are emerging that make it possible for decentralized applications to build and scale effectively and without compromise.

DAOstack is one such framework that is committed to building a platform for collectives to self-organize around any shared goal, interest or values. DAOstack empowers organizations and emerging applications to select the right governance model for them and implement it on DAOstack’s technological protocol.

DAOstack’s goal is to bring collaboration to the forefront of every vertical and provide an environment in which the goals of individuals can actually work in tandem to benefit the goals of the greater collective.

When it comes to the potential of blockchain, we’ve only uncovered the tip of the iceberg. As more developers, investors, and entrepreneurs bring their ideas to life on the blockchain, we will start to see the true scale of the technology’s potential.





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How Automation Can Transform Your Start-up

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Company Partners is the leading Company Registration Service Provider in South Africa, offering a One-Stop-Shop for all the Company Registration and Tender Compliance Documents.


With over 120 Start-up Services, Company Partners is the perfect Partner for Company, Tender and Contract compliance.


Established in 2006, Company Partners guarantees that the services they offer meet the standards of the best in the industry. Over 30 full-time Consultants offer services and standards of the highest quality.


Company Registration Benefits


Your Company Structure is the first consideration you need to make when you want to register a new Company at the CIPC. The preferred choice of a legal entity for most Businesses is a Pty Company.


Related: Business Model Design – Picking The Business Model That Works For You


Here’s why:


  1. You protect your personal life and assets from your business when you register a company. If one runs a business, it is necessary to operate in a safe legal structure where your business assets and risks are separated from your personal ones.

  2. You look more professional when you operate under a registered company name. If you want to obtain a large contract or a tender, it appears more professional to trade in a Pty Company capacity than in your own name.

  3. Most Suppliers and Government Departments require businesses to be registered as a Company to apply for their Tenders and Contracts.

How to Register a Company


Step 1: Complete and submit the easy online sign-up form here.


Step 2: Your dedicated Consultant will call you to assist you with any questions you may have.


Step 3: Email your ID and easy supported documents – which your Consultant will explain.


Step 4: Within a few days you will receive your brand new Company ready to use for Tenders and Contracts, via email. You can contact your Consultant at any time on a toll-free number.


Related: New Fund For Small Businesses To Be Developed


Need a Company fast? Perhaps consider a Shelf Company


Company Partners offer a variety of Shelf Company Options to suit your needs, including 2016- year Registration Number Shelf Companies. Within 24 hours after purchase, you will receive the registered Shelf Company.


You can start using your Company Registration Number and Bank Account (for income) immediately.


Each Shelf Company includes a 2016 Year Registration Number, Free Share Certificates, a Free ‘Tax Number’ and a Free ‘Official BEE Affidavit’.


You can also make use of a Nedbank Business Bank Account that’s active for your Shelf Company.


Luckily, getting your own Shelf Company is easy in terms of compliance. All that’s required is that you are at least 18 years of age, an ID document / Passport and a South African Business Address.


Why use Company Partners to Register a Company?


Fast timeframes: Your Company will be registered fast and effectively online. Your documentation is set-up in less than 24 hours, after which CIPC will process it.


Simple requirements: The only requirement for Company Registration is an ID / Passport. Everything gets done online, so you can be based anywhere in South Africa or the World.


Dedicated Consultant: Your own dedicated professional Consultant takes care of the entire process – he or she is available on his / her email and also on a toll-free number.


Professional Service: With years of experience of representing our Clients in Government, the entire process runs smoothly over the Internet. No lost documents and no frustration.


Company Partners completes all necessary applications correctly and reviews all the paperwork for you. You simply have to wait for your company documents via e-mail, confirming when you may start trading using your registration detail.


Related: Beauty Of Failure: The Art Of Embracing Rejection


After Company Registration


Any new Business needs guidance to prepare for Tenders and Contracts. After Company Partners gets you registered for your Company, Company Partners can assist you through the entire Company start-up process (optional).


That means they will ensure you have everything you need for a Tender or Contract application like a new PTY Company, BEE, Tax Clearance, VAT Registration, Logo Design, Website, Business Plan, COID, Letter of Good Standing, NHBRC, Accounting, Payroll and more.


Get Started


To start, just complete and submit the easy application form here and a friendly Consultant will contact you. Alternatively contact Company Partners toll-free on 0800 007 269 (toll-free from landlines and cell phones).


Online Brochures (click on the image to download)


Services List:


entrepreneurimagelink1








Why Use Company Partners:


entrepreneurimagelink2








Company Partners Profile:


entrepreneurimagelink3





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Elon Musk and Warren Buffett Get in a Candy Fight! 3 Things to Know Today.

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Stay in the know in 60 seconds.




1 min read







  1. Billionaire fight! Warren Buffett and Elon Musk got into a war of words over corporations using "moats" to fend off competitors. The result of the fight? Musk is launching a candy company to go after Buffett's See’s Candies. Sweet!
  2. Bill Gates told CNBC's Squawk Box that he would short bitcoin if there was an easy way to do it. The billionaire called Bitcoin and ICOs some of the "completely crazier, speculative things" he's seen.
  3. Move over Ronald, McDonald's has a new mascot. Or it should at least. 64-year-old Don Gorske, a retired Wisconsin prison guard, ate his 30,000 Big Mac this weekend, nearly 46 years after eating his first. This guy must have put a lot of plumber's children through college...

Have a great day!

Watch the previous 3 Things to Know video: Tesla Takes a Tumble, and It's Time to Change Your Twitter Password

 





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Making Money From Your Baking Hobby

https://www.entrepreneurmag.co.za/wp-content/uploads/2018/04/entrepreneurimagelink1.jpg [ad_1]



Company Partners is the leading Company Registration Service Provider in South Africa, offering a One-Stop-Shop for all the Company Registration and Tender Compliance Documents.


With over 120 Start-up Services, Company Partners is the perfect Partner for Company, Tender and Contract compliance.


Established in 2006, Company Partners guarantees that the services they offer meet the standards of the best in the industry. Over 30 full-time Consultants offer services and standards of the highest quality.


Company Registration Benefits


Your Company Structure is the first consideration you need to make when you want to register a new Company at the CIPC. The preferred choice of a legal entity for most Businesses is a Pty Company.


Related: Business Model Design – Picking The Business Model That Works For You


Here’s why:


  1. You protect your personal life and assets from your business when you register a company. If one runs a business, it is necessary to operate in a safe legal structure where your business assets and risks are separated from your personal ones.

  2. You look more professional when you operate under a registered company name. If you want to obtain a large contract or a tender, it appears more professional to trade in a Pty Company capacity than in your own name.

  3. Most Suppliers and Government Departments require businesses to be registered as a Company to apply for their Tenders and Contracts.

How to Register a Company


Step 1: Complete and submit the easy online sign-up form here.


Step 2: Your dedicated Consultant will call you to assist you with any questions you may have.


Step 3: Email your ID and easy supported documents – which your Consultant will explain.


Step 4: Within a few days you will receive your brand new Company ready to use for Tenders and Contracts, via email. You can contact your Consultant at any time on a toll-free number.


Related: New Fund For Small Businesses To Be Developed


Need a Company fast? Perhaps consider a Shelf Company


Company Partners offer a variety of Shelf Company Options to suit your needs, including 2016- year Registration Number Shelf Companies. Within 24 hours after purchase, you will receive the registered Shelf Company.


You can start using your Company Registration Number and Bank Account (for income) immediately.


Each Shelf Company includes a 2016 Year Registration Number, Free Share Certificates, a Free ‘Tax Number’ and a Free ‘Official BEE Affidavit’.


You can also make use of a Nedbank Business Bank Account that’s active for your Shelf Company.


Luckily, getting your own Shelf Company is easy in terms of compliance. All that’s required is that you are at least 18 years of age, an ID document / Passport and a South African Business Address.


Why use Company Partners to Register a Company?


Fast timeframes: Your Company will be registered fast and effectively online. Your documentation is set-up in less than 24 hours, after which CIPC will process it.


Simple requirements: The only requirement for Company Registration is an ID / Passport. Everything gets done online, so you can be based anywhere in South Africa or the World.


Dedicated Consultant: Your own dedicated professional Consultant takes care of the entire process – he or she is available on his / her email and also on a toll-free number.


Professional Service: With years of experience of representing our Clients in Government, the entire process runs smoothly over the Internet. No lost documents and no frustration.


Company Partners completes all necessary applications correctly and reviews all the paperwork for you. You simply have to wait for your company documents via e-mail, confirming when you may start trading using your registration detail.


Related: Beauty Of Failure: The Art Of Embracing Rejection


After Company Registration


Any new Business needs guidance to prepare for Tenders and Contracts. After Company Partners gets you registered for your Company, Company Partners can assist you through the entire Company start-up process (optional).


That means they will ensure you have everything you need for a Tender or Contract application like a new PTY Company, BEE, Tax Clearance, VAT Registration, Logo Design, Website, Business Plan, COID, Letter of Good Standing, NHBRC, Accounting, Payroll and more.


Get Started


To start, just complete and submit the easy application form here and a friendly Consultant will contact you. Alternatively contact Company Partners toll-free on 0800 007 269 (toll-free from landlines and cell phones).


Online Brochures (click on the image to download)


Services List:


entrepreneurimagelink1








Why Use Company Partners:


entrepreneurimagelink2








Company Partners Profile:


entrepreneurimagelink3





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Here's What You Can Learn

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Whether or not you bought the allegation that Amazon workers 'peed in bottles' to survive brutally long work shifts, you should pay attention to your own culture.




5 min read





Opinions expressed by Entrepreneur contributors are their own.







If you thought your last job had some harsh conditions, you might be surprised to learn what some Amazon employees may be going through. The harsh work culture that’s been alleged by multiple headlines in recent years is depressing to read about and unjustifiable even if you’re a fan of Amazon as a brand.

Related: Why We Shouldn't Hate on Amazon's Culture

But is there more to the story than these allegations suggest? Either way, there are some powerful lessons to learn here.

What the allegations claimed.

One of the most prominent attacks on Amazon’s work culture came from a scathing piece in the New York Times back in 2015. The piece alleged that employees were told that if they “hit the wall,”  the only solution was to “climb the wall.” The article alleged that employees were expected to stay late, attend long meetings designed to force employees to tear apart one other’s ideas and respond to emails as late as midnight.

It even alleged that the company had a policy that encouraged employees to send anonymous feedback to supervisors as a way to sabotage one other and ruthlessly climb the corporate ladder. One employee, Bo Olson, claimed, “Nearly every person I worked with, I saw cry at their desk.”

Of course that was three years ago. But, more recently, a New York Post story reported on undercover investigator and author James Bloodworth’s attempts to infiltrate an Amazon Warehouse in Rugeley, Staffordshire, in the U.K.. Bloodworth alleged, “People just peed in bottles because they lived in fear of being disciplined over ‘idle time’ and ­losing their jobs just because they needed the loo.” He likened the warehouse to a prison.

An independent survey this year seemed to validate these concerns. Originally published by Organise.org, the survey found that about three-quarters of U.K. fulfillment-center employees were hesitant or afraid to use the restrooms during the day because of what they described as meeting time expectations.

Are things really that bad?

Amazon has addressed many of these concerns directly, acknowledging public concerns and, in many cases, dismissing or denying the claims.

In response to the Times piece, the company attempted to contact the publisher directly with information it believed contradicted or undermined the claims mentioned in the article. When the Times refused to edit or comment on this new information, Amazon published it itself. Amazon portrayed Olson, one of the quoted ex-employees in the story, as someone who'd left the company after attempting to “defraud vendors and conceal it by falsifying business records.”

Related: Should Complaining About Work on Social Media Be a Fireable Offense?

Overall, Amazon alleged that the New York Times did not conduct the proper fact-checking and resource-vetting that would have been necessary to consider these claims legitimate.

In response to author Bloodworth’s undercover reporting and the Organise.org survey, Amazon told Business Insider, “We have not been provided with confirmation that the people who completed the survey worked at Amazon and we don't recognize these allegations as an accurate portrayal of activities in our buildings.”

Amazon frequently offers public tours of fulfillment centers but does acknowledge that it sets performance targets for employee performance.

What you can learn, regardless.

So, is Amazon’s work culture this brutal, for both high-level and low-level employees? Or are most of these stories at best, overblown, and at worst, completely fabricated?

Either way, there are some key lessons here:

  • Company culture matters. Your company culture matters, not only to the employees working for you but to outside observers wondering what ethical ground your company stands on. Treating your employees poorly may result in negative press for your brand.
  • People want a reason to hate corporations. In general, people don’t like and don’t trust corporations. For example, about 63 percent of people find CEOs non-credible or only somewhat credible. Give them a reason to hate your business or distrust your CEO, and they’ll take it. In other words, even small slights or injustices could be magnified to disrupt the already-delicate relationship you have with your customers.
  • Everything is open to the public. Finally, remember that virtually everything you do in your business is open to public scrutiny. You might make your employees sign non-disclosure agreements (NDAs) or keep your email servers on lockdown, but an ex-employee with a bad taste in his mouth might still opt to anonymously report on the conditions of your workplace. This possibility should be an incentive not only to avoid deliberate and egregious violations of employee rights, but also to mind how your actions and policies might be perceived (or misconstrued) by others.

True, exaggerated or somewhere in between, these headlines aren’t good for Amazon’s image. And, depending on the circumstances, they may have been preventable.

Related: How Amazon Aligns Employee Experience and Business Results

Understanding the importance of your own company culture and the vulnerability of your internal policies and communications is vital if you want to maintain the public’s trust -- as well as the satisfaction -- and retention -- of your workforce.





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Effective Ways To Bring Customers To Your Door

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Nicolette Boucher’s franchising journey started with ACDC Express in 2014, while electrical veteran Etienne Kunz’s accidental run-in with the Sunburst Electric brand introduced him to a concept he just had to be a part of. Today Nicolette’s Boksburg outlet and Etienne’s franchise in Alberton are thriving.


“Franchising is the ideal way to start your journey with entrepreneurship. You are given the recipe for success and you need to follow the recipe to ensure you get the results you need and want,” says Nicolette, who was the Operations Manager for Sunburst Electric’s sister company ACDC Express before becoming a Sunburst Electric franchisee.


With over 30 years’ experience in the electrical, electronic, and communication industries, Etienne worked for different companies holding various positions before buying into this unique concept. “Up to present there is no franchisee concept in South Africa operating as an electrical company,” Etienne explains.


Partnering with the best and brightest


Sunburst Electric caught Etienne’s eye when he was looking to invest in an electrical company. “I saw the Sunburst Electric concept and the idea of purchasing a franchise electrical company started to grow on me.”


Related: Top Locations For A Sunburst Electric Franchise


Nicolette’s passion for customer service was sparked when the opportunity to become a Sunburst Electric franchisee arose.


“Everything about Sunburst Electric is developed and built around delivering high customer satisfaction and this is right up my alley,” she says.


“In our industry, there is a preconceived idea of what to expect when allowing an electrician into your home and I am happy that I can be a part of changing this perception, and showing all our customers that you can have a neat, tidy and courteous electrician who is on time and is not going to disappear once the job is done or even before the job is done.”


Upping the ante in the electrical service market


Being a fairly new concept in South Africa, penetrating the market is an expected challenge for Sunburst Electric, but, as an affiliate of The Dwyer Group, Sunburst Electric provides its franchisees with a strong support system. This was a strong selling point for Nicolette when she invested. The affiliation with a global brand means you have joined a network that has been in the industry for over 30 years and can provide the support and guidance you require,” she says.


“A lot of time and effort has been put into the franchise. In a nutshell, starting a business is like planting a tree; you need to love and nurture it and be patient before it becomes a blossoming tree. Sunburst Electric has given me the tools and motivation to help me grow my ‘tree’.”


Etienne agrees with the power of backing from a larger company and the confidence it brings to him as a franchisee. “Investing in a brand linked to well-known mother company Infinity Brands means marketing, training and equipment and the right tools to succeed in your business are provided to you, instead of doing it yourself from scratch.”


Pressing on and moving up


Recruiting the best-fit service professionals for the job in electrical services was a challenge for Nicolette initially, before Sunburst Electric got on board with a straightforward and painless process for its franchisees. “It’s not always easy to find employees who have the same drive for customer satisfaction as you do,” she says.


“At the end of the day it comes down to having the right people to get you where you want your brand to be.”


Related: Sunburst Electric – The Electrical Contracting Franchise


For Etienne, launching the new branch of Sunburst Electric in Alberton and making people aware of this new concept that provides superior service to consumers was difficult. “Introducing a new name and getting people to trust a new electrical company that does things differently compared to ordinary electrical companies wasn’t easy,” he recalls. “But there is a lot of support from the franchisor, who guides and trains you and your electrician in the right direction by advising and leading you to ensure the business is operating profitably.”


Getting started and running successfully


Both Nicolette and Etienne agree that franchising requires a dedicated and passionate entrepreneur.


“Remember to be patient when starting the business and be proactive about it,” says Nicolette. “You’re not going to make a profit in month one but with hard work, commitment and passion you will get the results you want.”


Etienne’s advice: “If you have the commitment, passion, drive and energy to work long hours and know how to deal with stress — and sometimes with difficult customers — resolving challenges and believing in yourself to make a success of a business, I would say go for it.”





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Are You Prepared for Your Job Interview? Don't Say Yes Before Reading This.

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Getting ready for a big job interview can be stressful, and the best thing you can do to calm your nerves is to ensure you're prepared.




5 min read






This story originally appeared on Glassdoor




Getting ready for a big job interview can be stressful, and the best thing you can do to calm your nerves is to ensure you’re adequately prepared. Improvising responses and questions on the spot works for some people, but there’s no reason to leave it up to chance, especially if you have your heart set on a new gig. We’ve simplified your prep work into eight foolproof steps, so you can walk into the interview armed with the information and confidence you need to seal the deal.

Related: The 7 Biggest Myths About Changing Careers

Step 1: Get acquainted with the basics

If you haven’t done so already, look up the company you’re interviewing with on Glassdoor to get an idea of what they do, how big the company is, who their competitors are and what their business model is. How do they make money? What’s their core mission? What are their corporate values? You should be able to answer all these questions before heading into an interview with them.

Step 2: Research your interviewers

If you know who you’ll be meeting with, look them up and learn about their professional background. Find out what their role at the company entails in as much detail as you can, as well as what previous positions they may have held. This will help you ask more intelligent, insightful questions during the interview, showing that you’re an informed candidate.

Step 3: Get your Q&As straight

On that note, come prepared with a few thoughtful questions for each interviewer so that you don’t feel pressured to think of them spontaneously. It’s also a good idea to review commonly asked interview questions, and consider what your answers would be. You can also check out the company’s Glassdoor interviews page to see what previous interviewees have been asked.

Related: 10 Tips for Landing a Job in a New City

Step 4: Practice makes perfect

After you’ve done the prep work, rehearse your responses to questions you anticipate being asked, either by writing them out or having a friend or family member ask them. There’s no need to memorize a script, but practicing can help ensure you feel comfortable talking about your experience, skills, challenges and insights.

Step 5: Pack your bag and plan your outfit

Get prepared with a professional-looking bag or backpack packed with copies of your resume, your portfolio, a notebook, a pen and anything else you think you might need for the interview.

Pick out what you’ll wear at least a day ahead of time, so you don’t have to worry about it the morning of. If you’re not sure what to wear, check out photos of the office on Glassdoor or the company’s website, then dress yourself a step above whatever you see online. For example, if everyone seems to wear jeans and T-shirts to the office, you definitely don’t want to show up in a suit, but perhaps you’d want to wear a nice pair of dress pants and a button-down shirt. This shows respect for the formality of an interview, but helps you avoid looking overdressed and out of place.

Step 7: Plan your route

If you’re heading into the office for an in-person meeting, make sure you have your route and method of transport mapped out. If you’ve never been to the area where the interview is before, you can even do a test run to see how long it will take you to get there. On the day of, be sure to add in buffer time in case of traffic, slow train service or other delays. If applicable, be sure you have also thought through how you’ll deal with stepping away from your current job duties should the interview occur during your normal work hours.

Related: How to Handle a Salary Counter Offer

Step 8: Eat, sleep and relax

Getting enough sleep and eating well in the days leading up to your interview is crucial when it comes to being at the top of your game. It’s normal to be nervous before a big meeting, but don’t let that stop you from getting good shuteye the night before and some high quality, nutritious meals beforehand.

If you’re struggling to get to that calm, focused state of mind that allows you to make the best possible impression, try whatever relaxation techniques usually work for you, whether it’s meditating, listening to a podcast, watching your favorite TV show or fitting in a high-intensity workout. Now go out there and crush your interview!

(By Julia Malacoff)







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Monday, 7 May 2018

4 Factors To Consider Before Converting Your Independent Business Into A Franchise

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Recent statistics from the Franchise Association of South Africa reveal that the industry has grown to over 750 franchise systems, with nearly 35 000 franchise outlets, contributing an estimated 11,6% to South Africa’s gross domestic product (GDP) through an estimated R493 billion in turnover in 2016. The franchise sector has helped create more than 350 000 jobs.


See money differently


Nedbank’s new brand proposition encourages clients to ‘see money differently’. We have a broad spectrum of finance products available to clients who wish to become involved in franchising. This includes access to working capital facilities, asset-based finance loans, debtors finance and term loans to enable entrepreneurs to fulfil their dreams.


There are obvious benefits to purchasing a franchise rather than starting an entirely new business, since being linked to an existing brand established in the marketplace can make the financing process easier. We offer funding for all franchise models. However, preference is given to brands that demonstrate ethical behaviour, have operational structures in place and, most importantly, are able to offer their franchisees support, especially in difficult times.


As a bank for business, Nedbank’s finance application approval rate is higher for franchises than for independent business, as we rely on the inherent benefits of a franchise system.


Related: Should You Purchase An Existing Franchise?


What we offer


nedbank-offers


Nedbank has customised packages for franchises that cover lending, transactional banking and value-adding and investment solutions.



Pre-negotiated pricing also provides the respective brands with upfront pricing on transactional banking services.



These are delivered through our local regional offices, which are supported by a centralised credit unit to ensure quick turnaround times on decisions.


Finance solutions for franchises include:


  • New-store financing

  • Financing for resale transactions

  • Financing for multistore transactions

  • Finance packages for alternative energy efficient solutions/projects

  • Financing for revamps or refurbishment.

What we look for in a potential franchisee


As a bank our assessment of potential franchisees is based primarily on the viability of the business: affordability must be evident, location of the business must be sound, the franchisee must have sufficient experience and a healthy credit record, and the franchisor must provide a support mechanism.


Nedbank will assess the application in line with these requirements. The franchisee is generally required to invest 50% in unencumbered funds in the franchise. The finance gearing for the purchase of multiple stores is negotiable, depending on debt levels and performance of your existing outlet(s).


Related: Owning A Franchise – Good Idea Or Bad Idea?


To ensure the success of franchisees Nedbank offers additional support in the form of transactional products and services, such as card acquiring services, merchant facilities and electronic banking, which have been designed to add value to franchisees, giving them the edge to succeed in a competitive environment.


Innovation for clients


Nedbank has also introduced a solution for franchisees who have to secure a fuel or rental guarantee, allowing franchisees to secure a guarantee without having to provide the bank with cash cover.


We also offer a variety of products, such as Market Edge, a first-in-market data analytics tool that enables clients to gain insights into their customers’ behaviour and to develop strategies for their business on a multilayered, real-time and user-friendly dashboard.


GAP Access is another innovative product that enables the bank to provide Nedbank merchants with access to working capital, advanced against their point-of-sale (POS) terminal turnover. Repayments are made daily as a small percentage of card turnover, while cashflow is tracked and the merchant is net-settled.


Related: 3 Secrets To Franchising Success


Nedbank Business Banking


Our tailored solutions take franchisees’ current and future goals into consideration, and aim to assist franchises in attaining the competitive edge needed to succeed. A dedicated business banker gives franchise owners the opportunity to have an experienced financial expert as a partner in their business.


For more information on franchising email us at franchising@nedbank.co.za.





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Why This Entrepreneur Knew He Was Meant to Start His Own Business

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Robert Mondavi, Jr., co-founder of Michael Mondavi Estate, also offers his definition of an entrepreneur.




2 min read





Opinions expressed by Entrepreneur contributors are their own.





In this newest video from Entrepreneur Network partner Business Rockstars, Robert Mondavi Jr., co-founder of Michael Mondavi Estate, shares his perspective on what it means to be an entrepreneur. To the now established business owner, an entrepreneur is someone who is able to pinpoint his passion and share it with a wider market. 

Perhaps you're also wondering if you're up to becoming an entrepreneur. In Mondavi's case, his first business began in high school and from there he grew his expertise to dive into three businesses throughout his career. Taking it back further into his past, Mondavi also passes along some helpful advice to his teenage self: Try being a litle calmer and find his a sense of discipline. Mondavi admits that his wild-child spirit did drive him to make some exciting decisions in his life -- but as an adult and entrepreneur, he finds some rules to be key. 

Related: How This Entrepreneur Built a Fortune From Life's Tragedies

Entrepreneur Network is a premium video network providing entertainment, education and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on Roku, Apple TV and the Entrepreneur App available on iOS and Android devices.

Click here to become a part of this growing video network.





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What You Can Learn from a '90s Website that Became a Content Legend

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In addition to guest posting on the UpCity blog, ATX Web Designs is featured as one of the Top Digital Marketing Agencies in AustinCheck out their profile here.


There’s a legend that’s told among content marketers about an email sent over 20 years ago.


Back in the 90s, when the internet was new and Amazon.com was little more than paper taped to the wall, a man named Derek Sivers started a website. He was an amateur musician who began selling his CDs on a site he built called CDBaby.


With every CD shipment an automated confirmation email was sent out to the customer. It was generic; it was dull; and neither of those were in line with the experience he wanted for CD Baby’s customers. So he changed it. Instead of the boring, typical “Your CD has shipped. Let us know if it doesn’t arrive”; Sivers sat down and wrote what is perhaps the most famous email ever written. It goes like this:


“Your CD has been gently taken from our CD Baby shelves with sterilized contamination-free gloves and placed onto a satin pillow.


A team of 50 employees inspected your CD and polished it to make sure it was in the best possible condition before mailing.


Our packing specialist from Japan lit a candle and a hush fell over the crowd as he put your CD into the finest gold-lined box that money can buy.


We all had a wonderful celebration afterwards and the whole party marched down the street to the post office where the entire town of Portland waved “Bon voyage!” to your package, on its way to you, in our private CD Baby jet, on this day, Friday, June 6th.


I hope you had a wonderful time shopping at CD baby. We sure did. Your picture is on our wall as “Customer of the Year.” We’re all exhausted but can’t wait for you to come back to CDBaby.com!”


What started as a hobby in 1997 sold just over a decade later for more than $20 million. At the heart of his business was this 160 word message.


Shape your own legendary business by following these strategies when you craft content.


Is Your Content Compelling?


Did you want to keep reading the confirmation email? How did you feel when you finished? I felt like ordering another CD just so I could get it all over again.


Compelling content makes you want to keep goingwhether it’s reading, watching or sharing. Content produced for metrics is generally not compelling. But approach it with the audience in mind and it’s much easier to make good content.


Tip:


When you’re struggling to imagine your audience, craft the content to yourself. Most of the time, the stuff you find interesting, fun, or boring, the audience will find interesting, fun, or boring too.   


Try This:


Years ago, Google translated its Terms of Service from the unofficial US language Legalese to just plain English. Few things are less read than Terms & Conditions and making them short and clear felt like a grand gesture of transparency to its millions of users.  


What Story Are You Telling?


Since the very first spark of fire, humans have been telling stories. It’s practically in our DNA.


A confirmation email’s sole obligation is to make a confirmation. When you order from Amazon, do you read the confirmation email? Or just check that it’s there so you know your order went through?


That’s all you have to do. But, craft content that tells a story and you open the door to connection with your audience. This works on two levels:


1. On a microlevel, each post presents an opportunity for storytelling. Infuse each tweet and Instagram post with personality and you’ll probably see an uptick in engagement.


2. On a macrolevel, all the posts together with your branding, copy, design, and what you choose to share and not share each dayit all adds up to a story about your company. What story are you telling your audience? Is the same story your audience is telling about you?


Tip:


Imagine your company as the story’s main character. Give it attributes: witty, sharp, whimsical, collaborative, funny. Create all your content in the voice of that character.


Try This:


In its early days, Twitter was a fast-growing website with some rickety engineering that caused it to crash. A lot.


In 2008, its co-founder Biz Stone famously debuted the now-famous (if retired) “fail whale” (created by Yiing Lu). The image was his strategy to defuse the anger of frustrated Twitter users.


Fail Whale


Fail Whale image credit: Todd Barnard, CC BY 2.0, cropped from original


It didn’t completely resolve users’ frustration, but it did create a fan club. Years later, Twitter has outgrown the whale strategy, but it only takes a Google image search to unearth years of related riffs and memes.


Is It Human?


The most engaging content is that which feels most human. It has personality, and it demonstrates values.


CD Baby’s email makes us laugh, wonder, andultimatelywant to support CD baby! It’s clear that not only are there humans behind the company, but that they see that I’m human, too, and they value it.


In addition to being a paying customer, I am also a person who appreciates a good sense of humor.


Tip:


Derek Sivers, founder of CDBaby and writer of this legendary email, puts it like this:


When you’re thinking of how to make your business bigger, it’s tempting to try to think all the big thoughts, the world-changing massive-action plans.


But please know that it’s often the tiny details that really thrill someone enough to make them tell all their friends about you.


Thrill your audience.


Try This:


Last year, Netflix made headlines for a cease-and-desist letter it sent to the owners of a Stranger Things-themed bar in Chicago. Unlike virtually every other cease-and-desist letter ever sent, the one from Netflix was, well, cool.  


They had a legal basis for lawyering up and stamping out the bar. Insteadundoubtedly aware of the attention they would receive for shutting down a popular barthey treated the owners as people: their people.


Instead of sowing negative press, they reaped praise.


You’re human. Your audience are your people.


Remember that, and in twenty years, the internet might just remember your business too.







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Anna Ray Headshot










Anna Ray










Anna Ray is a wordsmith and freelance writer based in Houston, TX. The internet's a noisy place. Want to be heard? Whisper.

 

 












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5 Expert Guides on How to Rank YouTube Videos on Google

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Want to rank your YouTube videos within Google? Sure, we all do… but the truth is that most people think of the concept, but never actually put the idea into action. YouTube gets billions of page views every months and it’s making plenty of millionaires in the process. YouTube is also owned by Google, which means it’s likely you can rank video content from their site all the way to the first page of Google easier than you might be able to rank your site.


So what’s the big secret to ranking your YouTube videos on Google? Well, there are plenty of theories and methods out there — such as embedding videos within your blog content, using transcription to increase on-site (video) SEO to your page, linking back to your YouTube video through various sites and using a variation of relevant keywords.


Now the big question is… what works and what doesn’t? Well, if we all knew that, we’d all be ranking on the first page of Google, wouldn’t we!


While I’m in no way an expert at ranking YouTube videos within Google, I am pretty good at finding some of the best resources out there to help you along the way.


Follow These Tips to Rank YouTube Videos on Google


Each of these guides are unique in their own way, but most follow the same formulas of creating high quality video content, using text within your video descriptions and ultimately sending backlinks to your YouTube url. Be sure to visit each of the sites as they have unique content, videos, infographics, examples and guides.


YouTube SEO: The Ultimate Guide


Brian Dean of Backlinko.com is always coming out with excellent guides on how to build backlinks and rank higher in the search results. His guide on how to rank videos in Google is probably one of the best out there, as he goes into a lot of detail on how to find the right keywords to target, setting up your video title, description and YouTube page correctly, while also covering the many different ways you can embed video and get backlinks to help you jump to the top of the search results.


Backlinko SEO Video Strategy


Case Study: How to Rank YouTube Videos on Google


Everyone loves a good case study, and this one is no exception. This guest post from Vinay Patankar on SEMRush walks us through the process of why hitting your target audience with video is such a great opportunity. Vinay also goes on to show many of his different rankings in the search results and how he got there through ranking his YouTube videos. Vinay also covers video optimization, keyword rankings and off page optimization while also providing a big list of resources for building quality backlinks back to your YouTube page.


How to Rank YouTube Videos on Google


How to Rank on the First Page of Google Through Videos


Neil Patel is another SEO expert who took the time to create a guide on how to rank in Google through the use of YouTube videos. In this 7-step video ranking guide, Neil walks through the process of ranking a video by starting with the most basic steps, such as uploading a video to YouTube, embedding the video on your site, adding content around your videos and ultimately focusing on your SEO and backlinking strategy. While this guide is less advanced than others mentioned, it’s still a great guide and I highly recommend reading through all of the blog comments and questions as well.


Brian Dean also created a follow up video on how to rank videos in Google through the QuickSprout University course.


How_to_Rank_on_the_First_Page_of_Google_Through_Videos


http://www.semrush.com/blog/rank-youtube-videos-first-page-google/


The Ultimate YouTube SEO Guide – Infographic


As fun as several thousand word guides and tutorials are to read, sometimes it’s better to get a visual look at how things work. In this infographic created by Sean Si, we get to see why video is so important and the break down of how to properly create your video content, while also focusing on your user engagement afterwards. This infographic covers a lot of the quick tips, tricks and takeaways that the other guides recommend, but without the massive time required to read through all of the filler content.


Youtube_SEOHacker_Rankings


9 Hacks to Rank YouTube Videos in Google


Ryan Stewart is a digital marketing psychopath who put together a nice 9-part hack series on how to rank your video content within Google. This quick read (because it’s broken up nicely), shows a lot of great examples and gives actionable tips such as creating your own custom thumbnails, knowing how long to make your videos and how to utilize playlists and getting your YouTube channel page to work for you. Also be sure to check out Ryan’s 8 video ranking tips on SocialMediaToday.com as well.


9_Tips_to_Rank_YouTube_Videos_in_Google_-_Video_SEO


The Answer to How to Rank YouTube Videos in Google


I’ve provided you with some of the highest quality content and guides on the internet for learning how to rank YouTube videos on Google. At the end of the day, it’s going to come down to multiple factors to rank you videos on page one, but the three big takeaways from each of these guides are;


  • Video content (engagement)

  • Video embed (more views and content)

  • Links to YouTube Video (backlinks)

Another lesson that all of the guides preach, is to focus on the quality of your videos and to provide value. While it might be easy to create a bunch of low quality videos and hope at least one of them ranks, it would be much more beneficial to create one super high quality video and spend all your efforts on creating that one video.


Be sure to reach through each of the guides above, but their recommendations into action and start ranking your videos on Google!




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3 Employment Best Practices To Apply In Your Franchise

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You’ve just hired your first few employees. Congratulations. As an owner-operator who is also new to business ownership, navigating the human resources aspect of your franchise may be daunting, especially when growth is imminent. Your franchisor offers support, but may not want to play a huge role in recruiting and managing your staff.



“Employee management and HR compliance is a tricky topic, especially with the relationship between franchisors and franchisees. Depending on what HR support the franchisor can and cannot provide, the franchisee may be on their own in this all-important area.” – Dean Haller, President and founder of HRSentry



This, however, doesn’t mean you’ll have to blindly search your way through human resources practices, hoping you’ll eventually get it right. Invest a little time into learning the basics, and you’ll make the best decisions until you can afford to hire an HR specialist – and pick up some expertise along the way.


1. Equip newcomers with the tools for success


Consider the type of information, tools and training your new recruits may need to function productively in their new work environment – and ensure they get it. “Studies indicate that most new employees decide whether to stay or leave a company within the first six months, so be sure to be welcoming early on to help them feel part of your team,” advises Haller.


Related: Why Your Franchise Brand Should Be Culturally Relevant


“If you’re thoughtful of your employees’ new experience, they will become more productive and engaged, and thus, more likely to stay.”


Remember the first time you went through the manuals while familiarising yourself with the franchise concept? A new employees’ experience is similar as they have to take in a lot of new information while acquainting themselves with their new workspace, colleagues and systems. Make the on-boarding easier, by reasonably introducing each aspect during orientation and training.


2. Remain stern on performance standards


Once both parties are satisfied with the training and support offered, new staff should be made aware of expectations and receive continuous and constructive feedback on their performance based on these.


Should employees fail to meet their KPIs, it’s important you’re able to identify if your best efforts have failed and whether termination is an option. “Don’t procrastinate. Make sure all performance-related reasons are documented clearly,” says Haller. “Treat the person with dignity and respect –not only because it’s the right thing to do, but because it’s good business practice and can help you avoid any potential legal action against your business in the future.”


You can avoid this situation early on by hiring employees whose CVs not only meet your business’ operational needs, your company culture too.


Related: As Consumers’ Tastes Change Can Your Franchise Keep Up?


3. Acknowledge and reward hard work


During key periods of business growth, it’s easy to overlook good performance. And even when you acknowledge your best employees, sometimes money in the bank isn’t as meaningful as creative tokens of appreciation.


“Get creative,” says Haller. “Provide flexible work schedules, interesting assignments, or a gift certificate to a great restaurant or spa. Be mindful that it’s costly to replace a good employee, so reward your employees with some kind of benefits if you can,” he adds.





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This Entrepreneur Almost Quit Multiple Times, But After Appearing on 'Shark Tank' He Now Has a $100 Million Business

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Joel Clark struggled to get his pancake business off the ground, but after years of strained efforts, it's seen huge growth.




7 min read









In this ongoing column, The Digest, Entrepreneur.com News Director Stephen J. Bronner speaks with food entrepreneurs and executives to see what it took to get their products into the mouths of customers.

Joel Clark says he was excited when, in 1997, his brother offered him the chance to take over Kodiak Cakes, the business he founded based on their mother's pancake recipe.

"Going into entrepreneurship when you're young sounds really fun," says Clark, who was 23 at the time.

Related: This Popular Cookie Company Was Started on a Whim by a Couple Out of Their Home

But after years of slow growth and uncertainty about whether running Kodiak could actually be a full-time time job, the harsh realities of entrepreneurship started sinking in.

"It becomes about survival and trying to make something happen," says Clark, who worked in healthcare consulting and went to graduate school while building the company.

Not only did Kodiak Cakes survive, it's on track to do $100 million of business this year. Two major moves helped Clark push the business forward: In 2009, he hired Cameron Smith as COO, whom Clark says has become like a co-founder. Five years after that, the pair appeared on Shark Tank and rejected an offer from the investors. Still, the appearance paid off significantly.

Image Credit: Courtesy Kodiak Cakes

 

"It spiked our sales like crazy at Target," Clark says. "That became a huge inflection point for the brand itself."

The brand, which for years was a one SKU company, now offers multiple lines, including a popular protein pancake. Kodiak Cakes can be found in about 11,500 stores, including Target, Costco, Kroger and Amazon.

We spoke to Clark about his struggles in the early years, appearing on Shark Tank and how passion can take you far.

This interview has been edited for length and clarity.

Can you tell us more about the origins of the company?

Kodiak Cakes was my mom's idea, and she always thought there was a need for more healthier items. When I was 8 years old she packed homemade pancake mixes in these lunch sacks and then she handwrote how to make them on the bags. I went around the neighborhood and sold these out of my red wagon. The original product is hardly changed. When I took it over, it had $29,000 in revenue. I did it by myself on the side for several years.

How did you land your first big distribution deal and what can customers learn from that experience?

Before we landed Safeway, the business was really small. We probably had about 250 to 300 stores. I remember thinking the only way I'm ever going to do this thing full time was to land one big account. That's why I started going after Safeway, because at the time, there was one buyer for 1,200 stores.

I sent samples, and she gave me the runaround. I probably worked on that for two years. She finally took a hard look at Kodiak cakes and she brought it in. Persistence became the theme of Kodiak Cakes over the last 20 years, along with not giving up.

Related: Why Walking Away From Offers on 'Shark Tank' Was a Great Decision for These 3 Entrepreneurs

Were all your efforts at that point focused on Safeway?

I had a list of five to 10 decent sized chains that I was working on, but because I knew I didn't have a lot of time, I couldn't be spread too thin. A lot of national food companies start in the natural channel -- you're going after mom-and-pop shops. I remember thinking, I don't have time to do that. I made an assumption that this product would do well in the mainstream channel, so out of necessity I went that way, and it worked.

How did the business end up on Shark Tank?

The year before we aired on Shark Tank, we had done about $2.5 million in revenue. So we were still small, but we were starting to build a pretty good distribution base and had gotten into Target stores. We needed a publicity bump, but didn’t have the money for traditional advertising. One day Cameron (the COO) comes to me and says, why don't we go on Shark Tank? He sends an email to Shark Tank in January 2013. I forgot about it, and then two months later, he gets a call from one of the producers.

Would you recommend that as an avenue for other companies who are seeking growth?

I totally would. The exposure we got was incredible for the business. Also, going through the process was huge for us. Cameron and I spent so much time preparing for the show. We'd role play, question after question. All that was great prep for us and formulating a longer term strategy.

The immediate impact -- within six weeks of the show -- was probably worth a million dollars in revenue. But then it opened a lot of doors. Retail buyers knew that we were on the show, and so they were excited to talk to us. For them, it added to our credibility. The show aired in 2014. That year we did $3.6 million, in 2015 we did $6.7, in 2016 we did $16.5 and in 2017 we did over $50 million.

Image Credit: Courtesy Kodiak Cakes

 

What has been the biggest challenge for Kodiak and how were you able to overcome it?

One of the biggest challenges that we faced was slow growth and no capital. I had to figure out how to stick it out and how to bootstrap for a long time. You get tired. I would set myself these six-month goals and say to myself, I've got to move on if I can't make this thing happen.

So many times I almost quit. I started to have kids, and it's like, I've got to make this happen; I've got to earn more money. The realities of life start setting in, and the dreams of all the cool things you think about entrepreneurship start to go away. It took a while, but I would see light and progress -- barely enough to stay in.

What's the most unusual thing about working in the food space?

Right now is a crazy, cool time to be in this space, and it's because the pace of change in the last few years has been unbelievable. When I first started, the food world was kind of stagnant -- slow to change. Millennials are moving away from big established brands and trusting small brands more. It feels like tech in a lot of ways, because you've got to innovate quickly. There are a lot of food startups coming up with unique different products.

Related: Why This Entrepreneur Jumped Into Making Olive Oil, Despite Knowing It Would Take Years to Get off the Ground

Can you tell me something interesting about yourself that you think helped you launch and grow the business?

I always wanted to be an entrepreneur; it was in my blood. My dad drove it in my mind: If I wanted something, I had to get it. When I was growing up, I mowed lawns, shoveled driveways and washed windows.

I was able to get to this point because I had enough passion. In graduate school I argued on this final exam that passion was a legitimate reason for going into a business. I failed that exam. The professor said passion is subjective. You have to have passion: That's going to be the only thing that gets you through all the obstacles that are piled up against you. If you're not passionate enough, you're not going to make it.







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