August Benefits News and Posts

Common Family-Owned Business Problems

FROM INSPERITY / BY CHRIS BRENNAN

When running a family-owned business, it’s easy to let things fall off the radar. You can become so focused on addressing today’s problems that you have little bandwidth to think about tomorrow. However, if you don’t take the time to establish clear roles, policies and procedures for your business and its employees, you risk building a house without a solid foundation.

The truth is many family businesses don’t survive into the next generation. If you want to give yours the competitive edge, then it’s time to focus on your people plan. Here are some tips to help get your HR house in order.

Have a mission, vision and values statement

Start here to lay the foundation of your business and nip potential family-owned business problems in the bud. Any decision about the future of the business should be matched to these tenets, which are the benchmarks to which each process, goal or outcome should be aligned.

A mission, vision and values statement will establish:

How and with whom you do business
How your team treats each other
What your culture is
What you seek to promote and protect

When you skip the process of developing mission, vision and values statements, employees won’t know the direction of the business. This can affect productivity. The lack of direction can also lead to morale problems and low employee engagement. And don’t think that because your business is mostly comprised of family members that they know its direction, goals and values.

If you have already created a mission statement, ask yourself, “But is it a living document?” You need to make it a central part of your business. Share it with your employees and expect that they know what your business stands for.

Check your employee handbook

If you have a handbook, make sure it’s updated annually. If you don’t have one – get one.

An employee handbook gives your business structure and outlines processes where everyone is accountable. Whether it’s your brother who has helped you since the beginning or your newest non-family-member employee, everyone should know your mission statement and keep it top of mind. Doing so may help you sidestep common family-owned business problems caused by unclear expectations or processes.

Your handbook policies may include:

Payroll and compensation
Time off and overtime
Industry regulations
Employee conduct
Communication and computer use
Performance appraisals
Hiring practices

Some family businesses take pride in not having structure. “This is how we do it, and we’ve never been sued,” they say. What they don’t know is that sentence should be, “We’ve never been sued, yet.”

There’s a difference between having structure and a casual company culture. A casual atmosphere doesn’t give Uncle Joe permission to speak inappropriately to the new delivery driver. Just because Joe is family doesn’t mean he can’t get you and your business in trouble legally. Remember: Your business is not the family dinner table. Business is business, personal is personal. Each family member needs to know that. The way you talk to each other in a meeting should not resemble how you do so at the dinner table. Don’t assume that you or family members will be forgiven for professional improprieties just because they’re family.

Employee policies and procedures are a necessity. One of the biggest challenges and priorities of a business owner is making sure you’re compliant with laws and regulations. A handbook can help reduce your risk of violating labor laws and running into common HR problems.

Hire the best person for the job

Sure, it’s a family business. And you couldn’t have done it without them in the beginning. As your business grows, however, you may want to consider more carefully who you’re hiring and why – not to mention what they can bring to the table. You should be able to justify hiring a family member or friend purely on qualifications. Ask yourself, “How is this person going to move my business forward?” If the family member isn’t the best fit – choose the one who is.

Conduct performance reviews

If you don’t have a system for evaluating performance, employees have no idea how they’re doing. If they don’t know their place in the business and how their jobs relate to the bigger picture, there may be morale problems, productivity issues and potential for disengagement.

Performance reviews show where employees are succeeding and where they need more work, and help them establish goals aligned with their responsibilities, tasks and the mission and values statements. And yes, even family members should be evaluated. When family members are also graded on performance, it shows your non-family employees that all are held accountable for goals – no matter who they’re related to. Obviously, this can benefit morale.

Make your records bulletproof

Making sure your HR records are up to date, accessible and accurate will go a long way to help prevent legal and IRS problems, compliance issues and payroll glitches. So often, family businesses are held together by duct tape – surviving for the week. As a result, compliance issues and records may not be the most important things on your mind. Having a human resources system that takes care of payroll, IRS reporting and workers’ compensation issues can bring relief from stressful family-owned business problems.

Have a succession plan

There’s an old saying, “The best time to plant a tree was 20 years ago.” A succession plan will help ensure your tree continues to grow and thrive. If you don’t have a succession plan, then you’re setting yourself up to be part of the group of family businesses that don’t survive into the next generation. And as COVID-19 has taught us, it makes sense to have plans in place to ensure business continuity through things like succession planning.

Good news! A succession plan doesn’t have to be intricate. Here are some things to consider:

What are your goals and objectives? Will you sell the business or pass it to a family member? Ask yourself, “What will this look like when all is said and done?”
If you intend it to go to a family member – does that person want to take it over? The next person in charge should share your passion.
How are disputes settled? Who has decision-making powers? Realize that this may change over time.
Identify roles and responsibilities for family and non-family members.
Create a timeline for when and what happens

Seek HR help when necessary

If the task lies outside your dream for the family business, get someone to help. You don’t have to establish your succession plan, write your mission, vision and values statement, or deal with compliance issues alone. When you’re spending most of your time on things unrelated to growing your business, you may need outside help for duties such as human resources management and accounting.

Todd BellistriNovember 1, 2021August Benefits

Why not start off this selling season leading into the holidays on the right foot? One way to do that is to finally give some thinking to smart marketing. We don’t need to be the ones to tell you it’s very competitive out there (but we will), what with tons of start ups and side hustles all over the landscape. By developing a legit marketing program you are giving yourself a true foot up on the competition. So read on, you’ll see that its not as daunting as you think and the upside is well worth it.

FROM FORBES / BY DOMINIQUE HARROCH

In today's digital landscape the right approach to small business marketing combines advanced technology, data-driven insights, and effective digital platforms. Here’s a comprehensive guide to small business marketing to companies navigate the current marketing trends and tools that can drive business success.

Key marketing tools for small businesses

Following is a summary of 11 key marketing tools that small and growing businesses should consider when leveraging owned, earned and paid media:

1. An optimized small business website

A high-performing website is crucial for marketing today. An optimized site increases your page rank on Google and other search engines, and in today's world, fewer than 1% of searches go to the second page of a search. Key elements of an effective small business site include:

Memorable domain name: Choose a name that reflects your business and is easy to recall.
User-friendly design: Ensure your site is visually appealing and intuitive. Sites should have a clear structure, intuitive navigation and information that is easy to access.
Search engine optimization (SEO): Implement SEO best practices to rank higher in search engine results.
Mobile optimization: Since over 55% of global web traffic comes from mobile devices, you’ll want to ensure your site is mobile-friendly.
Valuable content: Regularly update your site with engaging content like blogs and articles that address your audience's interests and needs.
Fast loading times: Optimize page speeds to improve user experience and SEO rankings.
Secure hosting: Use reputable hosting services to protect your site’s data and performance.

Additionally, integrating tools like Google Analytics (now called GA4) and Google Search Console (GSC) can provide valuable insights into your site's performance and user behavior.

2. Paid search engine marketing (SEM)

Paid search engine marketing, in which you pay if a keyword is clicked on that drives traffic to your website, remains a powerful tool for driving targeted traffic. Platforms like Google Ads and Bing Ads allow you to:

Bid on keywords: Use tools like Google keyword planner to select high-value keywords relevant to your business.
Control costs: Set daily and monthly budgets, and adjust bids based on performance.
Analyze performance: Track key metrics to assess and refine your campaigns.

3. Paid listings and display ads

Paid listings on platforms like Yelp, Facebook, and Pinterest can boost visibility. Use Google’s Display Network to target ads based on user interests and behavior. This approach allows you to:

Choose ad formats: Use banners, text ads, or video ads to capture attention.
Track return on investment (ROI): Monitor clicks and conversions to measure effectiveness. Track your costs, record and monitor revenue, and record all expenses. Make sure to measure lead generation numbers, customer acquisition, and sales metrics as valuable insights into your marketing effectiveness.
Testing: By experimenting with different ad copy, targeting options, and formats, businesses can identify what resonates most with their audience, refine their strategies, and ultimately improve click-through rates and conversions. This can include A/B testing, target audience variations, ad copy variations, call-to-action (CTA) testing or visual elements where you test different images or videos to determine which visual elements attract more attention and engagement.

4. Content marketing

Content marketing remains a cornerstone of effective digital strategies. Key tactics include:

Blogging: Regularly post optimized content to drive organic traffic. Nine out of ten marketers use blogs as part of their content strategy.
Guest posting: Publish articles on popular platforms such as Medium and AllBusiness.com to enhance your reach and SEO. Strive to create “evergreen” articles, which are designed to remain relevant and valuable over a long period of time, regardless of current events or trends. Unlike timely articles that focus on current news or trends, evergreen content addresses topics that have enduring interest and utility.
Video content: In 2023, individuals spent an average of 17 hours a week watching videos online. Utilize platforms like YouTube and TikTok to engage your audience.
Content platforms: Leverage content recommendation platforms like Outbrain to expand your content’s reach.

5. Social media marketing

Social media is a powerful tool for engaging with your audience. Focus on platforms such as:

Facebook: Effective for broad audience reach and targeted ads.
Instagram: Ideal for visual content and influencer partnerships.
LinkedIn: Best for B2B marketing and professional networking.
TikTok: Useful for viral video content and younger demographics.

With over 5 billion global social media users and growing, effective social media marketing can significantly enhance your brand’s visibility and engagement. To be effective, you must regularly post interesting content to obtain and keep followers.

6. Influencer marketing

Influencer marketing involves collaborating with individuals who have a significant and engaged following on social media platforms like Facebook, TikTok and Instagram to promote products or services. These influencers, who can range from celebrities to niche content creators, leverage their credibility and relationship with their audience to drive brand awareness and influence purchasing decisions.

The impact of influencer marketing on broader marketing efforts can be profound, as it allows brands to tap into authentic, targeted communities that are often more receptive to recommendations from trusted (or at least known) voices.

This form of marketing can enhance brand credibility, expand reach, and generate higher engagement rates compared to traditional advertising. As consumers increasingly seek personalized and relatable content, influencer marketing has become a powerful tool for connecting with audiences in a meaningful way.

7. Online business directories

It’s important for business owners to list their companies in prominent and reputable business directories. Often these listings are free, but even if you must pay a small fee, it can be worth it.

The benefits include

Exposure to potential clients and customers.
Boosted SEO through backlinks.
Improved online presence and brand awareness.
Increased credibility for your business.
Low-cost or free marketing.

The following is a list of top business directories to consider listing your business:

AllBusiness.com
Better Business Bureau
Facebook Page
Google Business Profile
LinkedIn
Superpages
Bing Places for Business

8. Radio marketing

While less prominent today, radio can still be effective. Many people are in their cars during peak commute hours. To maximize radio advertising:

Targeted placement: Choose stations and time slots that align with your target audience.
Engaging content: Create memorable and concise ads.
Consider your market: Are you a B2C company (business to consumer) or B2B company (business to business)? Is your market local (like a neighborhood restaurant), national (such as selling payroll services), or international (such as selling unique clothing to multiple markets)?

The cost-effectiveness of radio compared to TV makes it a viable option for more localized campaigns.

9. Press releases

Press releases are valuable for announcing significant business updates. Ensure your release is:

Newsworthy: Focus on unique and timely information.
Well-structured: Include a strong headline, key details, and contact information.
Multimedia: Incorporate multimedia elements like images and videos to increase engagement.

10. Email marketing

Email marketing remains effective when executed correctly. Best practices include:

Segmenting: Personalize content based on customer preferences and behavior. Use data to segment your lists and target markets.
Offering engaging content: Provide valuable information, special offers, and updates.
Optimization: Use A/B testing to refine subject lines and content.
Using AI-driven tools: These can help automate and personalize email campaigns, improving engagement rates.

11. Direct mail marketing

Despite the digital age, direct mail still works for certain audiences. To optimize direct mail:

Use targeted lists: Use well-researched mailing lists to improve ROI.
Implement creative designs: Ensure your mail piece stands out and is easy to read.
Track mailings: Monitor responses and effectiveness.

More tips to enhance your marketing campaigns

Here are some additional tips to optimize your marketing campaigns:

Segment: Segment your target market to a specific audience. Segmentation can be done with respect to age, gender, income level, education, geography, purchase stage or brand loyalty, and more.
Business lists: Consider using high quality business lists such as Dun and Bradstreet, Experian Business, ZoomInfo or InfoUSA. These lists can be used in multiple channels as well, maximizing the value of the lists.
Track real time: Track your marketing campaigns in real-time to get immediate insights, make quick adjustments, and understand what is working or not.
Key metrics: Track the key metrics in your campaigns, such as click-through rate, engagement rate, conversion rate, sales, revenue, customer acquisition cost, market share, and churn rate.
Software and AI: Use software and artificial intelligence (AI) tools for social media management, content creation and testing of alternative ads.
Budget: Allocate your budget wisely. Assess the performance of different marketing channels and allocate your budget to the ones that deliver the highest ROI. Continuously review and adjust your spending to focus on the most effective strategies.
Keep current: Stay updated with trends. Keep up with the latest marketing trends and technologies. Experiment with new platforms, tools, or strategies to stay ahead of the competition and reach your audience in innovative ways. Keep up to date with experts by seeking articles from reputable business sources such as AllBusiness.com.
Promote across channels: Share earned media coverage on your website, social media platforms, and email newsletters. For instance, if a major publication writes about your product, feature this article prominently on your homepage or social media profiles.
Showcase social proof: Use earned media as a form of social proof by highlighting positive reviews, testimonials, or features from reputable sources. This can build credibility and trust with potential customers.
Strengthen relationships with media: Build and maintain good relationships with journalists and influencers. This can lead to more favorable coverage in the future and expand your media network.
Repurpose content: Convert mentions and reviews into additional content, such as blog posts, case studies, and infographics. For example, if your company was featured in a popular tech blog, you could create a detailed blog post about the experience and its impact.

Ready to enhance your small business marketing strategy?

Developing a comprehensive and modern small business marketing strategy requires leveraging a mix of traditional and digital techniques. By integrating artificial intelligence tools, optimizing SEO, utilizing effective SEM strategies, and harnessing the power of social media, you can create a dynamic and effective marketing approach. Start by experimenting with different strategies, tracking your results, and refining your approach based on performance data.