Businesses of all sizes have been rocked by the coronavirus pandemic, and many have to figure out a way to survive in an unfamiliar world. Studies show that 62% of small businesses have experienced significant decreases in their revenue stream since COVID-19 first began to affect the nation. Businesses that embraced ingenuity and creativity found ways to serve in a socially-distanced environment, and they have learned how to weather the ups and downs of a supply chain that has been impacted at every turn. For some, the key to survival was calling up venture capitalists like Mark Stevens for a quick influx of cash, but not everyone was able to receive funding assistance. Since you can’t always depend on a financing source to help you out when times get tough, you need to boost your marketing plan and develop loyalty among your customers. The pandemic seems far from over, so here are some tips for marketing your business during COVID-19.
Tip 1: Provide Reassurance to Your Consumers
The entire nation is faced with uncertainty as the pandemic drags on, and your consumers are worried about their health, their safety, their finances, and so much more. It doesn’t matter what kind of service or product you offer, your customers need reassurance that your business is still here for them and there is no danger in continuing to do business together. You can start by reassuring your customers of your response to what is going on. Many states have their own safety mandates and operation protocols, and you need to make your compliance and adaptations public. Use email messages, social media posts, website updates, and signs in your physical location that inform customers of the steps you are taking to keep their wellbeing your priority. If your customers are plagued by uncertainty, it will impact their purchasing habits. Encourage your consumers to contact you with any questions or concerns.
Tip 2: Explore Crazy Ideas
It’s time to be realistic. Life before COVID-19 is completely different from life post-pandemic will be. The marketing strategies you used last year or in times past won’t have the same impact going forward. Right now is the time to get creative and take risks without ideas and tactics. Generally speaking, there isn’t a bad idea going forward. The world has never faced something like this before, so everything is unchartered territory. You aren’t the only business that may be struggling. Your competitors are going to be working just as hard to rebound from the impact of COVID-19. The more unique and memorable your marking strategy, the greater the likelihood of standing out in your industry. Think of products that benefit consumers now, like a DIY care kit to offer when they visit the store. Offer virtual meetings or online classes to ease fears about traveling out. Have fun, and don’t limit yourself in this area.
Tip 3: Add Some Flame to Your Social Media Presence
It’s estimated that around 80% of Americans have at least one social media profile. Long before the pandemic, it was a prime way for companies to communicate, advertise, and leave reviews. The social distancing and shelter-in-place orders only created new demand for interesting and relevant content on social media, as more people and businesses went virtual. With all of the increased traffic online, there is no better time to kick up your social media presence. Use your company’s presence to start or join in on trending conversations. Pay for advertisements or sponsored posts. You can host online contests or surveys, or you can share photos and videos of products in your store or about what the employees at your company are up to. Social media will help you generate new interest and excitement about what’s going with your business, even if customers aren’t physically coming to your store or if clients aren’t meeting you for lunch.
Tip 4: Cultivate Virtual Relationships
Many people think you need to meet with someone in person in order to develop a strong relationship. It is more difficult to cultivate relationships through virtual means, but in light of the pandemic, it may be the only way to get things done. You may have little interest in hosting a Zoom call or going live on social media, but your apprehension or pride may keep you giving your customers what they want. Just because a consumer can’t get out doesn’t mean they have no interest in what is going on. Put yourself in the place of your customers. What would you expect from a business during this time? What have you seen your vendors or competitors do? You need to communicate with your customers on a regular basis, whether its through email, video calls, online presentations, or your social media content. Don’t waste these months and the ability to build strong virtual relationships.
Tip 5: Enhance Your Website
There are a lot of great ways in which you can make improvements to your company’s marketing routine, and the website plays a massive role in this. Since the pandemic hit, companies have had to reevaluate their marketing strategies and the steps they’ve taken in order to try to improve success. This is something that plays a massive role in any future success you might have, so you need to be making the right changes. And it is pretty clear that upgrading and updating your website is one of the best steps you can take to make the most of this.
You have to have a website that looks great, and one that is going to help increase organic traffic and attract customers. Having people visit your website is a big part of the process of being able to take things to the next level. Lead generation is important, but you also have to make sure you convert those leads in the process as well. So, you need to try to look at some of the best ways of doing this. Hiring a web design team could prove to be really decisive with this, and may well help you to revamp your site as much as possible. Work on taking the necessary steps that are going to help you improve your website as much as you can right now.
Economists still have concerns about the future, considering the threat of a second wave of COVID-19 infections. With a few months behind you as experience and with these tips going forward, you can keep your business going strong.
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It seems as if every organization today is looking to “get lean.” I’ve visited hundreds of companies that claim they’re transforming their business with Lean methodologies. They’ve rolled out fanfare that—to the untrained eye—gives the impression that these transformations are rooted in rigor and discipline. Signboards, banners, Gemba boards, and tape on the floor all proclaim, “We’re taking this seriously.”
But as you become more experienced with Lean, you realize that what you can’t see is what separates world-class operations from mediocre ones. As a Toyota executive once said when asked why the auto giant allows competitors into its factories: “What they need to know, they cannot see.”
The $13 Billion Case Study
A $13 billion global organization had been “doing” Lean for close to a decade, and the plant I was visiting was considered to be one of its best. They asked me to review their Lean progress, so I spent a day listening to the story of their Lean journey and touring the facility.
The Metrics
My review started with a presentation of their progress to date. The management team ran through a myriad of metrics that had convinced the corporate office they had made real progress. In reality, their “progress” masked many dysfunctional Lean behaviors:
Excess inventory. The plant’s management boasted that inventory turns had increased from 6.5x to 18x. Upon further review, this increase in inventory “performance” was due to the fact that 70% of their raw material inventory was on consignment, and they didn’t include this in their calculation.
Regardless of whose books carry your inventory, the same ills of excess inventory exist. The consigned inventory encouraged the company to hold more inventory than it otherwise would have—had the inventory been purchased and valued on its corporate balance sheet. To make matters worse, the company had expanded its raw materials warehouse to accommodate the inventory increase.
Missing per-hour metrics. Management then explained that their sales-per-employee productivity metric increased from $280,000 to $360,000. They touted a renewed focus on standardized work, which accounted for most of this improvement. As I probed further, I learned that the company laid off 30% of its workforce in the previous year, and the plant’s overtime hours increased from 5% to 35% during this time period. Had they calculated their productivity based on hours worked, the improvement would have been negligible.
Miscalculated delivery performance. Management revealed that on-time delivery performance was 98%. Upon further investigation, I discovered this performance was based on the promise date to the customer, formulated from the company’s stated six-week lead time.
I explained that a promise date is meaningless to the customer. Instead, they should switch their calculation to the customer request date. They indicated they had attempted to calculate it this way, but when using this method, on-time delivery performance dropped to 35%.
The Plant Tour
When I toured the plant, the first thing I noticed was that the facility was spotless. It was well lit, and you could have eaten off the painted floors. Many assembly cells were in place, and they appeared orderly and organized. When I joined their morning Gemba walk to review the facility and the previous day’s performance, I noticed the following:
Missing targets. We first stopped at their Gemba board, which contained all of the plant’s operating metrics and value stream information. Many of the metrics were missing goals or targets, so it was difficult to gauge performance. The value stream map included only the current state, with no lead-time ladder or future state map. There was no value stream plan, so kaizen events were not tied into achieving the future state condition.
Misspent TAKT time. Although they constructed reasonably good manufacturing cells, the operators batched production and didn’t produce in a one-piece flow fashion. Operators were seated, which didn’t allow them to perform the required number of operations to consume their TAKT time.
Outdated standard work. Standard work combination sheets were posted in each cell. But the standard work was outdated; the original date (from one year prior) was crossed out and replaced with the current date. It was clear they hadn’t updated their standard work to reflect changes in TAKT time or kaizen improvements.
Overproduction. Each cell tracked production using day-by-the-hour boards. The previous day’s planned production units were 100, but the plant recorded an actual production quantity of 145 units. Management marked this figure in green to reflect a favorable condition.
When I asked why, the management team indicated they exceeded their production plan and stated, “We had a good day.” Now, every Lean practitioner is familiar with Lean’s “7 Wastes,” one of which is waste from overproduction. I explained that this excess production should have been marked in red, as an abnormal condition. If they were, in fact, properly using standard work, excess production would be virtually impossible (if operators were working to a properly calculated TAKT time).
The Takeaways
This plant had been “doing” Lean for over a decade, but it’s clear they were not “being” Lean. They had all the markings of a Lean organization, and the corporate office was convinced they were doing an outstanding job in transforming the plant. Yet, this was far from reality.
What lessons can we learn?
Invest in Lean education. Senior leaders need to be educated in Lean methodologies and learn how to ask the right questions. In this case, the plant management had the best intentions, but they were poorly educated in Lean principles and truly believed they were doing a stellar job.
In their effort to improve key performance indicators (KPIs) to give corporate leaders a sense of progress, they violated several Lean principles. Corporate leaders would have exposed these dysfunctional behaviors had they been trained to look at their business through a pure Lean lens.
Benchmark to world-class standards. This particular plant only benchmarked to other plants within their global organization. Quite frankly, the plant’s management and employees didn’t have an understanding of “what good looks like.” It’s important to benchmark outside your organization—and even outside your industry—to truly understand what world-class benchmarks are.
Now it’s your turn to ask: Is your organization “doing” Lean, or is it “being” Lean?
https://www.strategydriven.com/wp-content/uploads/BOOKcover-Flatlined.jpg18121200Sharon Kastorianohttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngSharon Kastoriano2020-08-25 09:00:432020-08-25 01:43:32Is Your Company ‘Doing’ Lean or ‘Being’ Lean?
If you want to build a successful business or career, stop keeping your eye on the big prize. Instead, focus on little victories.
Okay, you might be thinking, “Wait. Did I read that right? Surely you are joking. How can that possibly be true?”
Everyone today is continually searching for the big goal. For the huge win. For the epic victory. But what if I were to tell you that this search is mostly in vain—especially today during the COVID 19 crisis and all else that is going on in the world?
Instead of focusing on the big goal, try the little victory. In fact, the smaller your goals, the better. How?
Well, there was an ice cream machine salesman a few years back who wanted to sell more ice cream machines. That was his big goal. So, he tended to his big goal the way most of us do. He would not quit until he got there. And he used an analytical construct of ‘volume’ that would help him get there. Get more customers, sell more machines. Volume. Right?
But when you think creatively instead of analytically—and you begin to start to think in terms of the little victory—the everything changes. One day, he got an order from a particular restaurant that kept ordering more and more machines. He decided to think creatively instead of analytically. He went to the restaurant and discovered the best cheeseburger he ever had. His Name was Ray Croc, and the restaurant was McDonalds.
At any point, Ray could have stuck with his big analytical victory of selling more ice cream machines and ignored all else except volume to help him get there. That is what most of us do in business and our careers today. But Ray took a chance. He took a chance on creativity. He listened to the little victory—that this one particular restaurant was ordering more and more machines—and then decided to take a closer look. And in doing so, he discovered that his big goal should not be selling ice cream machines at volume after all. Maybe his little victory—the small goal—was telling him something far more valuable than the big win.
What little victories are occurring in your business or career today that you are ignoring? And at what costs?
It’s easy today to feel defeated by what is going on in the world. It is easy to feel that we are not living up to our potential with widespread lockdowns, work-from-home mandates, social distancing, and other hurdles. It’s easy to say, well, I haven’t had a little victory since COVID hit.
But I urge you to look harder. Dig deeper. Think creatively.
Creativity takes hold and allows us a view of the little victory as something worth pursuing. And often this is hidden in plain sight. Because while we are chasing that big victory, we are ignoring the breadcrumbs that are trying to tell us what path we should be on instead.
Yes, big victories can sometimes happen—but, then again, sometimes they don’t. And, in many cases, the timeline for a big victory can be months or even years. But when we look at the little victories and celebrate them, we learn to shift our perspective. We see that, indeed, they are all around us. We just need to look.
This is an amazingly powerful creative tool that you can use today in your business or career. Try it right now. Pause for a moment and think: What has happened recently that could be a little victory that you steamrolled over in your pursuit of seemingly more worthwhile goals? In that small victory is a morsel of amazing creative potential. But you need to see it. Value it. Treasure it. And, yes, learn to love it.
If that sounds unimpressive to you—or, perhaps. lacking in vision—it is anything but. It turns out that when we allow ourselves to be guided by the little victory and the small goal, the road we take may be much richer than the road we started off on. And in today’s climate, nothing can be more important.
About the Author
Nir Bashan is the founder and CEO of The Creator Mindset LLC, where he teaches business leaders how to harness the power of creativity to improve profitability, increase sales, and make work more meaningful. His clients include AT&T, Microsoft, Ace Hardware, NFL Network, EA Sports, and JetBlue. He received a Clio Award and an Emmy nomination for his creative work on albums, movies, and advertisements, and was one of the youngest professors ever selected to teach graduate courses at the Art Center College of Design in Pasadena. He lives in Orlando, Florida. Learn more about his new book, The Creator Mindset: 92 Tools to Unlock the Secrets to Innovation, Growth, and Sustainability (McGraw-Hill; August 2020), at https://www.nirbashan.com/the-creator-mindset. Or visit Amazon
https://www.strategydriven.com/wp-content/uploads/41WEDjIg1TL._SX330_BO1204203200_.jpg676450Sharon Kastorianohttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngSharon Kastoriano2020-08-25 08:00:172020-08-25 01:31:51The Smaller Your Goals, The Better
Smart entrepreneurs invest business profits wisely to minimize loss. This ensures that even though the money is being spent, it is spent in ways that enable business growth, which, therefore, allows the value of the business to appreciate. Minimizing losses increases profit-making potential as scarce resources are being put to good use. A vast majority of entrepreneurs, 80% to be precise, fund their enterprises out of pocket, and managing cash flow is a major challenge as most have no prior business cash flow education. But you don’t have to be a part of this statistic. After you make your first turnover, making these smart financial decisions will help you make the most of your hard-earned money.
1.Investing in fixed assets
Investopedia defines an asset as an economically valuable resource owned, controlled, or acquired with the expectation that it will appreciate later. A fixed asset is an asset acquired to liquidate at a later period. It is expected to appreciate so that you can cash in on the benefits. A simpler explanation will be to save up money but not in cash, which can be affected by inflation. Important fixed assets an entrepreneur should invest in as a business, include furniture, and land. These assets appreciate over time, and when managed properly, can make you some great benefits. It will be much more beneficial to your business to own property that would be making you money in the long run and aiding business operations simultaneously.
Fixed assets require efficient maintenance to ensure that your investment is protected. In the case of concrete structures, you could have a periodic assessment done on your building by experts like K&E Flatwork so that any damage beyond normal wear and tear is remedied as soon as possible to prevent asset value from depreciating. Keep your sidewalks and parking lot in mint condition as well. A well-maintained building and environment is easier on the eyes and markets your business better to a potential customer.
2. Buying the right insurance
Insurance on your property, car, and health is an added layer of protection to your assets. Many state laws require all property owners to take out adequate insurance in the event of an unfortunate occurrence. Fire, earthquakes, or even accidents could cost property owners a lot of money in uninsured. Your business could take a hit as a result, and this would be a waste of money as well as an unnecessary business opportunity cost. Take time to research property insurance to understand how taking out one could work to protect property owners.
3. Investing in yourself
The importance of growing in your craft and building value through education cannot be over-emphasized because you are only as good as what you know. The entrepreneur, as the human resource, is the most valuable component in the profit-making process. So invest the money and time in bettering yourself so you can improve at building your business. You can take some courses in business analytics, economics, business communication, or even get an MBA. You can also acquire some marketing skills with a CIM so you can take advantage of the available marketplaces. Also, make it a point to frequently upgrade your qualifications when you get them. This is because there are always new ways of doing things. You’ll be able to keep up with the times, advance yourself and your business as well.
4. Investing in marketing
The notion that a good product by itself will drive traffic no longer holds. Many businesses struggle to retain their customers because they fail to invest in proper marketing structures early enough when they had the momentum. Strategically including ad expenditure on your budget saves you from being blindsided when you do need it. Diversify your marketing options by spreading your options so you can target different customer bases. Younger people are more likely to resonate better with social media, and older people are better reached with in-person marketing. Engage some extra help with in-person marketing campaigns so they can be even more productive. The business rewards will be worth the sacrifice.
5. Paying your debts
This may not seem so important on this list, but having debts is counter-productive to success. You cannot truly count your money as profit if you haven’t paid off your debtors. Owing people is also not a good identity to have. It could make it difficult for you to attract value investors as your credibility, which would be needed to build confidence in your enterprise, will be in question. So, come up with a debt repayment plan and pay off your debts at a convenient pace that would not leave you starving or homeless. Most entrepreneurs start up with loans from family and friends. Because of the personal relationship at stake, it is even more beneficial to you to pay your debts, so relations do not get strained. Some relations might even be willing to reduce your interest rate if you express interest in paying off your loan faster. This will imply increased business profits.
6. Getting the right help
Get help with administrative duties and any other roles that are not your strong suit because productivity will suffer in the end if you attempt to do it all. Do not also go overboard with hiring too many people. This will cost you needless expenditure as you’ll be overspending where you could be saving. First, hire an administrator or secretary to help you stay on top of paperwork so you can focus on making business decisions. Also, invest in a trustworthy accountant. An accountant role goes far beyond the boring task of securing the money. They’ll ensure that your taxes are paid on time, so your business is in the clear with the government. They’ll also keep track of cash inflows and outflows so that you know exactly how much profits you are making.
Additionally, outsource work that you do not need to hire full-time staff to do. A typical example is janitorial and maintenance work. Cleaning and maintenance work are duties that can easily be outsourced to an agency if it does not need to get done every day. Observe your workspace and plan on days the cleaning can get done. If it is something you can get done easily without your plate getting too full, then, in this case, it would be better to do it yourself. The result, either way, will be efficient financial management and increased productivity.
As an entrepreneur, you always need to have a plan and a back-up ready to run despite having limited funds at your disposal. Spending your money in ways that benefit your business will help you make the most out of your venture.
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Shopify is the most popular e-commerce platform used for setting up and selling products through online stores. The Shopify Point-of-Sale (POS) software is also used for in-person sales. Shopify has been around for ten years and has been very successful.
There are many benefits to using Shopify, including ease of use, flexible designs, and solid support staff. However, there are also some issues, like increased transaction fees and higher charges for increased functionality.
Shopify is not the only e-commerce platform available. These ten alternatives are worth a look that might be more suitable for your online shop needs.
1. Volusion
Volusion is a cloud-based, e-commerce platform currently supporting over 200,000 small businesses and sole proprietors. Volusion charges no transaction fees and has a simplified, one-page checkout interface. Check out Sharp Commerce for additional details.
Strengths of Volusion include ease of use, extensive template library, no extra transaction fees, free themes, a decent mobile app, and numerous payment processors. Volusion has some drawbacks, though, such as limited features, monthly bandwidth limits, and the need for users to possess coding skills.
2. Big Commerce
BigCommerce has been powering online stores for over eleven years and is very popular. It is flexible and easy-to-use, drag-and-drop-editor provides a user-friendly experience. BigCommerce can track inventory across Amazon, eBay, Facebook, and Pinterest so you never double-sell an item.
BigCommerce’s strengths include compatibility with most business models, outstanding theme designs, numerous features, no additional transaction fees, and a decent mobile app.
But, as with all of the e-commerce platforms, BigCommerce has its weaknesses as well. There are only seven free themes, and it can be a little slow at times. Also, if you exceed your limit of sales, BigCommerce will automatically upgrade your plan to a higher tier, resulting in a substantially higher monthly cost.
3. WooCommerce
WooCommerce is ideal for use with WordPress sites. It is free, open-source, and well thought of by users. There are advanced functions that can be purchased, but the basic platform can hold its own with the other, more-expensive tools.
Advantages to WooCommerce include no additional transaction fees, availability of free plans, and it’s easy to set up and use. It is great to use for all types of physical or digital sales.
WooCommerce has some drawbacks as well. It has no hosting feature, tends to be slow, and may require technical skills.
4. LemonStand
Another great and easily customizable ecommerce platform is LemonStand. It is particularly fitting for medium or large businesses as it offers customizable monthly subscriptions based on the number of orders.
The strengths of LemonStand are no additional transaction fees and that it can accept recurring orders from customers. The biggest weakness is that coding skills, or a web developer, are required. It is also somewhat limited in available templates and third-party apps.
5. 3dcart
3dcart is hosted in the cloud and offers features such as coupons, subscriptions, and Facebook sync. The cost is variable, depending on which features are required.
The positive aspects of 3dcart are support for multiple payment modes, fast load time and store speed, no additional transaction fee, and a multitude of features. But, for updated themes or strong service and support, 3dcart is not the best choice.
6. BigCartel
BigCartel is a good fit for small businesses or soles proprietors. Although the features are limited, it is reasonably priced and offers unlimited bandwidth and inventory tracking.
Other advantages of BigCartel are no extra transaction fee, it works well with PayPay, it’s easy to use and, if you sell five products or fewer, it is free.
Due to its limitations, BigCartel is not a useful tool for large companies. It also does not provide support or an inventory search feature.
7. Magento
Magento is a free, open-source e-commerce platform that is well-suited for medium to large-sized businesses or a smaller business with substantial growth potential. Although it does require coding skills or a staff web developer, Magento offers a vast number of features, flexibility, and adaptability.
Other positives about Magento include no monthly service charges, inventory management, multiple payment mode support, and advanced functionality. The only negative other than the need for a coder is that it does not provide hosting.
8. Wix
Wix is one of the premier, free ecommerce website builders that can also include a simple online store. Although limited in functionality and features, this tool is perfect for a beginner with minimal web development skills. Once the website is up and running, it is possible to migrate over to a more robust e-commerce platform, such as BigCommerce or Magento. Or, switch to Wix Editor and take advantage of the advanced features.
The biggest strength of Wix is that anyone can use it to create a nice website and a functional store. It also has over one hundred templates, works with many payment modes, and the price is right. Its weaknesses include limited bandwidth, traffic options, and apps.
9. Squarespace
Squarespace is another website builder that does not require much technical ability and offers an e-commerce option. Squarespace can compete with the higher-priced platforms in its advanced features and functionality. Other advantages of Squarespace include no additional transaction fees and a wide array of inspiring designs.
The disadvantages of Squarespace include limited compatibility, with only PayPal and Stripe included, and although Squarespace does not charge a transaction fee, both PayPal and Stripe do. Also, there is limited support and add-ons.
10. Prestashop
Prestashop is considered a free e-commerce platform. However, it is not attached to website development tools such as Wix and Squarespace so there will be costs for a domain and web hosting. Prestashop offers limited themes and templates but it will do fine for a start-up shop with limited funds.
The strengths of Prestashop include its cost (free), no additional transaction fees, and that it supports international sales in 25 languages and many currencies. The weaknesses are that it does require some technical skill and, as we said, it has limited themes, templates, and features.
Shopify is an excellent platform for e-commerce, but it just might not be the right fit for your business. If one of these other alternatives calls out to you, give it a try. Your e-commerce store will be up and running in no time.
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4 Post-Pandemic Marketing Tips to Help Your Business
/in Marketing & Sales/by StrategyDrivenTip 1: Provide Reassurance to Your Consumers
The entire nation is faced with uncertainty as the pandemic drags on, and your consumers are worried about their health, their safety, their finances, and so much more. It doesn’t matter what kind of service or product you offer, your customers need reassurance that your business is still here for them and there is no danger in continuing to do business together. You can start by reassuring your customers of your response to what is going on. Many states have their own safety mandates and operation protocols, and you need to make your compliance and adaptations public. Use email messages, social media posts, website updates, and signs in your physical location that inform customers of the steps you are taking to keep their wellbeing your priority. If your customers are plagued by uncertainty, it will impact their purchasing habits. Encourage your consumers to contact you with any questions or concerns.
Tip 2: Explore Crazy Ideas
It’s time to be realistic. Life before COVID-19 is completely different from life post-pandemic will be. The marketing strategies you used last year or in times past won’t have the same impact going forward. Right now is the time to get creative and take risks without ideas and tactics. Generally speaking, there isn’t a bad idea going forward. The world has never faced something like this before, so everything is unchartered territory. You aren’t the only business that may be struggling. Your competitors are going to be working just as hard to rebound from the impact of COVID-19. The more unique and memorable your marking strategy, the greater the likelihood of standing out in your industry. Think of products that benefit consumers now, like a DIY care kit to offer when they visit the store. Offer virtual meetings or online classes to ease fears about traveling out. Have fun, and don’t limit yourself in this area.
Tip 3: Add Some Flame to Your Social Media Presence
It’s estimated that around 80% of Americans have at least one social media profile. Long before the pandemic, it was a prime way for companies to communicate, advertise, and leave reviews. The social distancing and shelter-in-place orders only created new demand for interesting and relevant content on social media, as more people and businesses went virtual. With all of the increased traffic online, there is no better time to kick up your social media presence. Use your company’s presence to start or join in on trending conversations. Pay for advertisements or sponsored posts. You can host online contests or surveys, or you can share photos and videos of products in your store or about what the employees at your company are up to. Social media will help you generate new interest and excitement about what’s going with your business, even if customers aren’t physically coming to your store or if clients aren’t meeting you for lunch.
Tip 4: Cultivate Virtual Relationships
Many people think you need to meet with someone in person in order to develop a strong relationship. It is more difficult to cultivate relationships through virtual means, but in light of the pandemic, it may be the only way to get things done. You may have little interest in hosting a Zoom call or going live on social media, but your apprehension or pride may keep you giving your customers what they want. Just because a consumer can’t get out doesn’t mean they have no interest in what is going on. Put yourself in the place of your customers. What would you expect from a business during this time? What have you seen your vendors or competitors do? You need to communicate with your customers on a regular basis, whether its through email, video calls, online presentations, or your social media content. Don’t waste these months and the ability to build strong virtual relationships.
Tip 5: Enhance Your Website
There are a lot of great ways in which you can make improvements to your company’s marketing routine, and the website plays a massive role in this. Since the pandemic hit, companies have had to reevaluate their marketing strategies and the steps they’ve taken in order to try to improve success. This is something that plays a massive role in any future success you might have, so you need to be making the right changes. And it is pretty clear that upgrading and updating your website is one of the best steps you can take to make the most of this.
You have to have a website that looks great, and one that is going to help increase organic traffic and attract customers. Having people visit your website is a big part of the process of being able to take things to the next level. Lead generation is important, but you also have to make sure you convert those leads in the process as well. So, you need to try to look at some of the best ways of doing this. Hiring a web design team could prove to be really decisive with this, and may well help you to revamp your site as much as possible. Work on taking the necessary steps that are going to help you improve your website as much as you can right now.
Economists still have concerns about the future, considering the threat of a second wave of COVID-19 infections. With a few months behind you as experience and with these tips going forward, you can keep your business going strong.
Is Your Company ‘Doing’ Lean or ‘Being’ Lean?
/in Professional Development/by Mark C. DeLuzioBut as you become more experienced with Lean, you realize that what you can’t see is what separates world-class operations from mediocre ones. As a Toyota executive once said when asked why the auto giant allows competitors into its factories: “What they need to know, they cannot see.”
The $13 Billion Case Study
A $13 billion global organization had been “doing” Lean for close to a decade, and the plant I was visiting was considered to be one of its best. They asked me to review their Lean progress, so I spent a day listening to the story of their Lean journey and touring the facility.
The Metrics
My review started with a presentation of their progress to date. The management team ran through a myriad of metrics that had convinced the corporate office they had made real progress. In reality, their “progress” masked many dysfunctional Lean behaviors:
Excess inventory. The plant’s management boasted that inventory turns had increased from 6.5x to 18x. Upon further review, this increase in inventory “performance” was due to the fact that 70% of their raw material inventory was on consignment, and they didn’t include this in their calculation.
Regardless of whose books carry your inventory, the same ills of excess inventory exist. The consigned inventory encouraged the company to hold more inventory than it otherwise would have—had the inventory been purchased and valued on its corporate balance sheet. To make matters worse, the company had expanded its raw materials warehouse to accommodate the inventory increase.
Missing per-hour metrics. Management then explained that their sales-per-employee productivity metric increased from $280,000 to $360,000. They touted a renewed focus on standardized work, which accounted for most of this improvement. As I probed further, I learned that the company laid off 30% of its workforce in the previous year, and the plant’s overtime hours increased from 5% to 35% during this time period. Had they calculated their productivity based on hours worked, the improvement would have been negligible.
Miscalculated delivery performance. Management revealed that on-time delivery performance was 98%. Upon further investigation, I discovered this performance was based on the promise date to the customer, formulated from the company’s stated six-week lead time.
I explained that a promise date is meaningless to the customer. Instead, they should switch their calculation to the customer request date. They indicated they had attempted to calculate it this way, but when using this method, on-time delivery performance dropped to 35%.
The Plant Tour
When I toured the plant, the first thing I noticed was that the facility was spotless. It was well lit, and you could have eaten off the painted floors. Many assembly cells were in place, and they appeared orderly and organized. When I joined their morning Gemba walk to review the facility and the previous day’s performance, I noticed the following:
Missing targets. We first stopped at their Gemba board, which contained all of the plant’s operating metrics and value stream information. Many of the metrics were missing goals or targets, so it was difficult to gauge performance. The value stream map included only the current state, with no lead-time ladder or future state map. There was no value stream plan, so kaizen events were not tied into achieving the future state condition.
Misspent TAKT time. Although they constructed reasonably good manufacturing cells, the operators batched production and didn’t produce in a one-piece flow fashion. Operators were seated, which didn’t allow them to perform the required number of operations to consume their TAKT time.
Outdated standard work. Standard work combination sheets were posted in each cell. But the standard work was outdated; the original date (from one year prior) was crossed out and replaced with the current date. It was clear they hadn’t updated their standard work to reflect changes in TAKT time or kaizen improvements.
Overproduction. Each cell tracked production using day-by-the-hour boards. The previous day’s planned production units were 100, but the plant recorded an actual production quantity of 145 units. Management marked this figure in green to reflect a favorable condition.
When I asked why, the management team indicated they exceeded their production plan and stated, “We had a good day.” Now, every Lean practitioner is familiar with Lean’s “7 Wastes,” one of which is waste from overproduction. I explained that this excess production should have been marked in red, as an abnormal condition. If they were, in fact, properly using standard work, excess production would be virtually impossible (if operators were working to a properly calculated TAKT time).
The Takeaways
This plant had been “doing” Lean for over a decade, but it’s clear they were not “being” Lean. They had all the markings of a Lean organization, and the corporate office was convinced they were doing an outstanding job in transforming the plant. Yet, this was far from reality.
What lessons can we learn?
Invest in Lean education. Senior leaders need to be educated in Lean methodologies and learn how to ask the right questions. In this case, the plant management had the best intentions, but they were poorly educated in Lean principles and truly believed they were doing a stellar job.
In their effort to improve key performance indicators (KPIs) to give corporate leaders a sense of progress, they violated several Lean principles. Corporate leaders would have exposed these dysfunctional behaviors had they been trained to look at their business through a pure Lean lens.
Benchmark to world-class standards. This particular plant only benchmarked to other plants within their global organization. Quite frankly, the plant’s management and employees didn’t have an understanding of “what good looks like.” It’s important to benchmark outside your organization—and even outside your industry—to truly understand what world-class benchmarks are.
Now it’s your turn to ask: Is your organization “doing” Lean, or is it “being” Lean?
About the Author
The Smaller Your Goals, The Better
/in Professional Development/by Nir BashanOkay, you might be thinking, “Wait. Did I read that right? Surely you are joking. How can that possibly be true?”
Everyone today is continually searching for the big goal. For the huge win. For the epic victory. But what if I were to tell you that this search is mostly in vain—especially today during the COVID 19 crisis and all else that is going on in the world?
Instead of focusing on the big goal, try the little victory. In fact, the smaller your goals, the better. How?
Well, there was an ice cream machine salesman a few years back who wanted to sell more ice cream machines. That was his big goal. So, he tended to his big goal the way most of us do. He would not quit until he got there. And he used an analytical construct of ‘volume’ that would help him get there. Get more customers, sell more machines. Volume. Right?
But when you think creatively instead of analytically—and you begin to start to think in terms of the little victory—the everything changes. One day, he got an order from a particular restaurant that kept ordering more and more machines. He decided to think creatively instead of analytically. He went to the restaurant and discovered the best cheeseburger he ever had. His Name was Ray Croc, and the restaurant was McDonalds.
At any point, Ray could have stuck with his big analytical victory of selling more ice cream machines and ignored all else except volume to help him get there. That is what most of us do in business and our careers today. But Ray took a chance. He took a chance on creativity. He listened to the little victory—that this one particular restaurant was ordering more and more machines—and then decided to take a closer look. And in doing so, he discovered that his big goal should not be selling ice cream machines at volume after all. Maybe his little victory—the small goal—was telling him something far more valuable than the big win.
What little victories are occurring in your business or career today that you are ignoring? And at what costs?
It’s easy today to feel defeated by what is going on in the world. It is easy to feel that we are not living up to our potential with widespread lockdowns, work-from-home mandates, social distancing, and other hurdles. It’s easy to say, well, I haven’t had a little victory since COVID hit.
But I urge you to look harder. Dig deeper. Think creatively.
Creativity takes hold and allows us a view of the little victory as something worth pursuing. And often this is hidden in plain sight. Because while we are chasing that big victory, we are ignoring the breadcrumbs that are trying to tell us what path we should be on instead.
Yes, big victories can sometimes happen—but, then again, sometimes they don’t. And, in many cases, the timeline for a big victory can be months or even years. But when we look at the little victories and celebrate them, we learn to shift our perspective. We see that, indeed, they are all around us. We just need to look.
This is an amazingly powerful creative tool that you can use today in your business or career. Try it right now. Pause for a moment and think: What has happened recently that could be a little victory that you steamrolled over in your pursuit of seemingly more worthwhile goals? In that small victory is a morsel of amazing creative potential. But you need to see it. Value it. Treasure it. And, yes, learn to love it.
If that sounds unimpressive to you—or, perhaps. lacking in vision—it is anything but. It turns out that when we allow ourselves to be guided by the little victory and the small goal, the road we take may be much richer than the road we started off on. And in today’s climate, nothing can be more important.
About the Author
6 Smart Investment Decisions To Make As An Entrepreneur
/in Managing Your Finances/by StrategyDriven1.Investing in fixed assets
Investopedia defines an asset as an economically valuable resource owned, controlled, or acquired with the expectation that it will appreciate later. A fixed asset is an asset acquired to liquidate at a later period. It is expected to appreciate so that you can cash in on the benefits. A simpler explanation will be to save up money but not in cash, which can be affected by inflation. Important fixed assets an entrepreneur should invest in as a business, include furniture, and land. These assets appreciate over time, and when managed properly, can make you some great benefits. It will be much more beneficial to your business to own property that would be making you money in the long run and aiding business operations simultaneously.
Fixed assets require efficient maintenance to ensure that your investment is protected. In the case of concrete structures, you could have a periodic assessment done on your building by experts like K&E Flatwork so that any damage beyond normal wear and tear is remedied as soon as possible to prevent asset value from depreciating. Keep your sidewalks and parking lot in mint condition as well. A well-maintained building and environment is easier on the eyes and markets your business better to a potential customer.
2. Buying the right insurance
Insurance on your property, car, and health is an added layer of protection to your assets. Many state laws require all property owners to take out adequate insurance in the event of an unfortunate occurrence. Fire, earthquakes, or even accidents could cost property owners a lot of money in uninsured. Your business could take a hit as a result, and this would be a waste of money as well as an unnecessary business opportunity cost. Take time to research property insurance to understand how taking out one could work to protect property owners.
The importance of growing in your craft and building value through education cannot be over-emphasized because you are only as good as what you know. The entrepreneur, as the human resource, is the most valuable component in the profit-making process. So invest the money and time in bettering yourself so you can improve at building your business. You can take some courses in business analytics, economics, business communication, or even get an MBA. You can also acquire some marketing skills with a CIM so you can take advantage of the available marketplaces. Also, make it a point to frequently upgrade your qualifications when you get them. This is because there are always new ways of doing things. You’ll be able to keep up with the times, advance yourself and your business as well.
4. Investing in marketing
The notion that a good product by itself will drive traffic no longer holds. Many businesses struggle to retain their customers because they fail to invest in proper marketing structures early enough when they had the momentum. Strategically including ad expenditure on your budget saves you from being blindsided when you do need it. Diversify your marketing options by spreading your options so you can target different customer bases. Younger people are more likely to resonate better with social media, and older people are better reached with in-person marketing. Engage some extra help with in-person marketing campaigns so they can be even more productive. The business rewards will be worth the sacrifice.
5. Paying your debts
This may not seem so important on this list, but having debts is counter-productive to success. You cannot truly count your money as profit if you haven’t paid off your debtors. Owing people is also not a good identity to have. It could make it difficult for you to attract value investors as your credibility, which would be needed to build confidence in your enterprise, will be in question. So, come up with a debt repayment plan and pay off your debts at a convenient pace that would not leave you starving or homeless. Most entrepreneurs start up with loans from family and friends. Because of the personal relationship at stake, it is even more beneficial to you to pay your debts, so relations do not get strained. Some relations might even be willing to reduce your interest rate if you express interest in paying off your loan faster. This will imply increased business profits.
Get help with administrative duties and any other roles that are not your strong suit because productivity will suffer in the end if you attempt to do it all. Do not also go overboard with hiring too many people. This will cost you needless expenditure as you’ll be overspending where you could be saving. First, hire an administrator or secretary to help you stay on top of paperwork so you can focus on making business decisions. Also, invest in a trustworthy accountant. An accountant role goes far beyond the boring task of securing the money. They’ll ensure that your taxes are paid on time, so your business is in the clear with the government. They’ll also keep track of cash inflows and outflows so that you know exactly how much profits you are making.
Additionally, outsource work that you do not need to hire full-time staff to do. A typical example is janitorial and maintenance work. Cleaning and maintenance work are duties that can easily be outsourced to an agency if it does not need to get done every day. Observe your workspace and plan on days the cleaning can get done. If it is something you can get done easily without your plate getting too full, then, in this case, it would be better to do it yourself. The result, either way, will be efficient financial management and increased productivity.
As an entrepreneur, you always need to have a plan and a back-up ready to run despite having limited funds at your disposal. Spending your money in ways that benefit your business will help you make the most out of your venture.
Comparing 10 Shopify Alternatives: What Are Their Main Strengths and Weaknesses?
/in Online Marketing and Website Development/by StrategyDrivenThere are many benefits to using Shopify, including ease of use, flexible designs, and solid support staff. However, there are also some issues, like increased transaction fees and higher charges for increased functionality.
Shopify is not the only e-commerce platform available. These ten alternatives are worth a look that might be more suitable for your online shop needs.
1. Volusion
Volusion is a cloud-based, e-commerce platform currently supporting over 200,000 small businesses and sole proprietors. Volusion charges no transaction fees and has a simplified, one-page checkout interface. Check out Sharp Commerce for additional details.
Strengths of Volusion include ease of use, extensive template library, no extra transaction fees, free themes, a decent mobile app, and numerous payment processors. Volusion has some drawbacks, though, such as limited features, monthly bandwidth limits, and the need for users to possess coding skills.
2. Big Commerce
BigCommerce has been powering online stores for over eleven years and is very popular. It is flexible and easy-to-use, drag-and-drop-editor provides a user-friendly experience. BigCommerce can track inventory across Amazon, eBay, Facebook, and Pinterest so you never double-sell an item.
BigCommerce’s strengths include compatibility with most business models, outstanding theme designs, numerous features, no additional transaction fees, and a decent mobile app.
But, as with all of the e-commerce platforms, BigCommerce has its weaknesses as well. There are only seven free themes, and it can be a little slow at times. Also, if you exceed your limit of sales, BigCommerce will automatically upgrade your plan to a higher tier, resulting in a substantially higher monthly cost.
3. WooCommerce
WooCommerce is ideal for use with WordPress sites. It is free, open-source, and well thought of by users. There are advanced functions that can be purchased, but the basic platform can hold its own with the other, more-expensive tools.
Advantages to WooCommerce include no additional transaction fees, availability of free plans, and it’s easy to set up and use. It is great to use for all types of physical or digital sales.
WooCommerce has some drawbacks as well. It has no hosting feature, tends to be slow, and may require technical skills.
4. LemonStand
Another great and easily customizable ecommerce platform is LemonStand. It is particularly fitting for medium or large businesses as it offers customizable monthly subscriptions based on the number of orders.
The strengths of LemonStand are no additional transaction fees and that it can accept recurring orders from customers. The biggest weakness is that coding skills, or a web developer, are required. It is also somewhat limited in available templates and third-party apps.
5. 3dcart
3dcart is hosted in the cloud and offers features such as coupons, subscriptions, and Facebook sync. The cost is variable, depending on which features are required.
The positive aspects of 3dcart are support for multiple payment modes, fast load time and store speed, no additional transaction fee, and a multitude of features. But, for updated themes or strong service and support, 3dcart is not the best choice.
6. BigCartel
BigCartel is a good fit for small businesses or soles proprietors. Although the features are limited, it is reasonably priced and offers unlimited bandwidth and inventory tracking.
Other advantages of BigCartel are no extra transaction fee, it works well with PayPay, it’s easy to use and, if you sell five products or fewer, it is free.
Due to its limitations, BigCartel is not a useful tool for large companies. It also does not provide support or an inventory search feature.
7. Magento
Magento is a free, open-source e-commerce platform that is well-suited for medium to large-sized businesses or a smaller business with substantial growth potential. Although it does require coding skills or a staff web developer, Magento offers a vast number of features, flexibility, and adaptability.
Other positives about Magento include no monthly service charges, inventory management, multiple payment mode support, and advanced functionality. The only negative other than the need for a coder is that it does not provide hosting.
8. Wix
Wix is one of the premier, free ecommerce website builders that can also include a simple online store. Although limited in functionality and features, this tool is perfect for a beginner with minimal web development skills. Once the website is up and running, it is possible to migrate over to a more robust e-commerce platform, such as BigCommerce or Magento. Or, switch to Wix Editor and take advantage of the advanced features.
The biggest strength of Wix is that anyone can use it to create a nice website and a functional store. It also has over one hundred templates, works with many payment modes, and the price is right. Its weaknesses include limited bandwidth, traffic options, and apps.
9. Squarespace
Squarespace is another website builder that does not require much technical ability and offers an e-commerce option. Squarespace can compete with the higher-priced platforms in its advanced features and functionality. Other advantages of Squarespace include no additional transaction fees and a wide array of inspiring designs.
The disadvantages of Squarespace include limited compatibility, with only PayPal and Stripe included, and although Squarespace does not charge a transaction fee, both PayPal and Stripe do. Also, there is limited support and add-ons.
10. Prestashop
Prestashop is considered a free e-commerce platform. However, it is not attached to website development tools such as Wix and Squarespace so there will be costs for a domain and web hosting. Prestashop offers limited themes and templates but it will do fine for a start-up shop with limited funds.
The strengths of Prestashop include its cost (free), no additional transaction fees, and that it supports international sales in 25 languages and many currencies. The weaknesses are that it does require some technical skill and, as we said, it has limited themes, templates, and features.
Shopify is an excellent platform for e-commerce, but it just might not be the right fit for your business. If one of these other alternatives calls out to you, give it a try. Your e-commerce store will be up and running in no time.