Business.com |
- PPP Round 2: How Much, and How to Have It Forgiven
- How Creating Ebooks Can Help Grow Your Business
- Email Marketing Best Practices and Predictions for 2021
- 5 Ways to Use Content Marketing for Lead Generation
- How Business Bootstrapping Works
- How to Generate More Website Traffic with Social Media
| PPP Round 2: How Much, and How to Have It Forgiven Posted: 18 Jan 2021 10:00 AM PST  Small business is the backbone of the U.S. economy, and it's no secret that COVID-19 continues to leave a trail of financial despair in its wake. The JPMorgan Chase Small Economic Activity Research report shows that over 99% of the 28.7 million firms in the U.S. are small businesses, and more than 48% of all U.S. employees work for a small business. Needless to say, providing aid to struggling SMBs should be paramount to most people. However, the first round of Paycheck Protection Program loans was anything but smooth. Big business cashed in, small businesses struggled to navigate a clunky and confusing process, and indications of foul play seemed to be all over many questionable loans. Now, the country is taking a second stab at the PPP, with a new round of much-needed loans having opened this week. So, what's different this time around, and how can you use the funds to qualify for forgiveness? What is a PPP loan?To quote the Small Business Administration, a PPP loan is an "SBA loan that helps businesses keep their workforce employed during the coronavirus crisis." The Paycheck Protection Program provides forgivable loans through SBA 7(a) lenders to struggling businesses for use on predefined eligible expenses. If borrowers meet employee retention criteria and restrict their use of the funds to eligible expenses, the SBA will forgive their loan. The premise of the program is to enable small businesses to keep paying their employees while we navigate the uncertainty that continues to surround the COVID-19 economy. How much you may qualify for this timeAccording to the guidance issued by the SBA on Jan. 7, these are the steps to calculate the maximum loan amount you may qualify for this time around:
If you did your math correctly, the number remaining after step five represents the maximum PPP amount you may qualify for. This entire amount may be forgivable by the SBA as long as you reserve the use of your PPP funds for qualifying expenses and observe the 60/40 rule (more on this later). Make sure you keep clear and detailed records to help you navigate the forgiveness process, and consult a qualified financial professional if you have questions. What are the qualifying expenses?Like the first round of PPP loans, this round recognizes payroll, rent, covered mortgage interest and utilities as qualifying expenses. The 60/40 rule – mandating that borrowers spend at least 60% of PPP funds on payroll costs during the covered period – still applies to PPP loans this time around in order for businesses to qualify for loan forgiveness. However, a few new expenses have been added, which you should take into consideration when deciding how to allocate your PPP funds. Here's a list of all the qualifying expenses, as outlined in the latest SBA guidance:
Some of these categories are a bit vague, so talk to a qualified financial professional or your local SBA 7(a) lender to make sure you're in compliance with applicable SBA guidelines. You can read program details and the most recent guidance directly from the SBA here. What are covered operating expenditures?In response to criticism from small businesses during the first round of PPP loans, the SBA has expanded its list of qualifying expenses to include often-overlooked costs that are essential to the operation of many businesses. These expenses, among possible others, fall under the "covered operating expenditures" category:
Not sure if an expense qualifies? Talk to your local SBA 7(a) qualified lender or a qualified tax professional before you use PPP proceeds on the expense in question. It's not worth jeopardizing your loan forgiveness. How to apply for loan forgivenessNow, the part that most business owners look forward to the most: that magical moment when, with the flick of a pen, your loan is forgiven and the responsibility to repay your PPP proceeds is lifted off of your shoulders forever. Loan forgiveness is handled directly with your SBA 7(a) lender and involves a few forms and a lot of documentation. According to the official PPP forgiveness fact sheet from the U.S. Treasury Department, the loan forgiveness is a four-step process. Step 1: Complete the correct form from your PPP lender.Depending on your unique situation and lender, you may complete SBA Form 3508, 3508EZ, 3508S, or an equivalent form provided by your lender. Step 2: Gather your documents.According to the SBA, you'll need to compile documentation for all payroll periods "that overlapped with the Covered Period or the Alternative Payroll Covered Period." These records can include bank statements, tax forms or other payment receipts. Talk to your lender to get a complete list of documentation they'll accept. You'll also need records for forgivable non-payroll expenses as well as evidence that those obligations or services existed prior to Feb. 15, 2020. Copies of utility invoices and/or receipts along with lease agreements, rent receipts, or mortgage amortization schedules are likely to be required. You can find the complete list of acceptable documents on the SBA website. Step 3: Submit your form and supporting documentation to your PPP lender.Your lender will let you know if additional documentation is required or if something is missing from your forgiveness packet. Step 4: Keep in contact with your lender throughout the process.After you submit your form and documentation, the SBA may undertake a review of your loan. If so, your SBA 7(a) lender will let you know and alert you to any decisions the SBA makes for your loan. You have the right to appeal some SBA decisions, and your lender is responsible for notifying you of the amount forgiven and when payments (if any) will be due. You might have heard that loans under $150,000 tend to draw less scrutiny from the SBA, but don't be complacent that your loan won't be selected for review. Be extremely careful as you deploy your PPP proceeds, and work hand in hand with your lender to make sure you receive the maximum forgiveness amount possible for your situation. Keep great records, file your receipts, and be deliberate in all your other efforts to have your loan forgiven. Need more cash? A few other optionsWhile it's definitely one of the best options available, the PPP loan program is not the only way businesses can access capital and reach their goals. Here are some alternatives that could unlock the funding your business is looking for: Economic Injury Disaster LoanAnother SBA loan program, the Economic Injury Disaster Loan, or EIDL, is one of the very few loan programs that is funded and serviced directly by the SBA, not through an SBA-qualified lender. According to the SBA, this program is intended "to meet financial obligations and operating expenses that could have been met had the disaster not occurred." These loans are not forgivable (other than a small EIDL advance) but are relatively affordable at 3.75% interest on a 30-year term. Venture capital and angel investorsVenture capital and angel investors aren't reserved for your favorite episode of Silicon Valley or the next hyper-growth tech startup. Each VC firm has different investment objectives, so thorough research on each firm you're considering is a must. Get to know their investing style, what's worked for them in the past, and how you might align with those objectives. A little sweat equity and leg work could uncover some great funding opportunities and even better partners. Alternative optionsYou've probably seen an episode of ABC's Shark Tank, where small business owners and startup founders make their case to a panel of "sharks," just to be criticized and often have their business model picked apart, all vying for a coveted investment from one of the big-name investors. While this works great for select brands, the reality is that many Shark Tank "deals" never come to fruition for various reasons, and some fail to land any investment from the limited panel of "sharks." Regardless, if you're feeling lucky, you can head over to ABC's website to apply for Shark Tank. Shark Tank isn't the only game in town, though. One banker turned billion-dollar startup founder – whom Professor Richard Sakwa once named the wealthiest man in Russia in his book Putin and the Oligarch: The Khodorkovsky-Yukos Affair – is flipping the script and delivering a Shark Tank-esque experience with a much larger pool of potential investors: its own accredited investor members. Unicorns.Show transforms the search for unicorn startups into an immersive entertainment experience, leveraging its long list of accredited investors to help startups execute a global private offering (GPO) and capture the cash they need to skyrocket to unicorn status. Want to be on the show? First, you'll have to work with the team to raise at least $1 million for your startup just to qualify. While it isn't the fastest route to paydirt, it could be one way to inject headline-worthy capital into your startup. Whichever route you decide is best for your brand, always consult a qualified tax professional, licensed financial professional, and/or legal counsel before making any final decisions. [Looking for alternative lenders? We've reviewed the best business loans and financing options of 2021.] |
| How Creating Ebooks Can Help Grow Your Business Posted: 18 Jan 2021 07:00 AM PST  For small businesses and individuals with limited resources, it becomes necessary to use unconventional tactics to grow one's business. One long-term and impactful strategy that anyone can leverage is to create ebooks. In this post, we'll explore how making and promoting an ebook can bring more people to your business. We'll also check out strategies that you should adopt to make the best of this marketing method. There are several reasons why creating an ebook helps. Let's start by looking at how ebooks can support your marketing efforts. And then break down some important elements that go into creating an ebook that keeps bringing in more customers. Create an additional revenue streamCreating an ebook allows you to share your knowledge with the world. Especially when what you know also meets a need that many people have. Writing an ebook is difficult but when you've created comprehensive material, you can publish it on multiple platforms and get a passive source of revenue. There are several platforms where you can create your ebook and sell it to the public:
Truth be told, unless you're a terrific writer with an awesome book idea and have the backing of experienced publishers, the chances that your ebook will directly bring in revenue are low. However, ebooks can be the starting point that brings more people in contact with your brand. Individuals like mentors, coaches in the health arena, and other small business types can create an audience with an ebook. We'll look at some of these other ways to grow your business in the following sections. Use your ebook to drive leadsPeople need an incentive to subscribe to your newsletter. A helpful ebook can act as a way to reward users for signing up to get emails from your brand. Leverage your ebook by creating a lead magnet on your website. A lead magnet is a type of popup form where people are offered a gift that they can access by submitting their email. Lead magnets are often used to reengage new visitors to your website. Seventy percent of people who arrive on your site will abandon it and never return. Many of these visitors who leave your website are potential buyers who just need to learn a little more about your brand. Your best bet to reengage these abandoning website visitors is to offer something for free. A helpful ebook can induce your site users to join your newsletter and engage with your brand more often. Redirect readers to your businessThis is a powerful strategy that an individual or small company can use to introduce more people to their businesses in a subtle way. You can insert links in your ebook that take users to a browser or resource. And when you conclude your ebook, you can talk about how your readers can find more help on your blog or website. Ebooks that have great content that helps people automatically make readers interested in learning more about the author. And there are many people who create their ebooks in a strategic way. They provide substantial information in the books themselves. And then offer additional services and information that can't be shared in book format. For example, having a community around the book. Use your ebook to redirect people to your website or social media where you can further nurture your relationship with them. With time and further marketing strategies, you'll create sales, more engagement on social media, and achieve other goals. Build credibilityCreating an ebook signals that you have expertise and authority in your particular field. One of the hardest things a business can do is to build trust. It's especially challenging when you are a small business competing against larger brands that have a huge marketing budget. With an ebook that's well made and informative, you can create another source of information for people. You'll also boost your credibility and win your audience's trust. Tips for creating an ebookWhile we've looked at the benefits of creating an ebook. The reality is that it's harder than it seems. You have to put in a large number of hours to create an ebook, perhaps up to a hundred hours. While ebooks do create strong results i.e. better readership and conversions, they aren't guaranteed to make you an overnight success. According to blogging studies, ebooks give you better results when compared to "how-to" posts, articles, news reports, and other content formats. You need to know how best to leverage ebooks to create the best impact. Here are a few tips to use when building your book so that you offer great content and grow your brand at the same time. Find a critical problem that needs to be solvedIt goes without saying that for your book to get traction, it needs to address major problems faced in a community or group. Or offer an exciting alternative to everyday issues that will ignite people's imagination. I've come across medical professionals who created books to address food and behavioral issues. They attracted their audience initially through the books. Their readers researched them, found them on their websites and social media. And from there began to join online programs and courses. A great example of an individual who leveraged a book to become a recognized marketer and blogger is Tim Ferriss. Have a clear purpose for your book and do your audience research, and there's a good chance your ebook will get attention. Create an outline for your bookBeing organized when you write will help you write faster. You'll also make sure that you don't miss any critical information. Start by jotting down the main points you plan on discussing. Create chapter outlines and what each chapter will contain. This is a good time to do your research, save any references you found, and think of how you want to present your information. Get writingThe process of writing is arduous and is something that you need to dive down and commit to. It's important to make a schedule for writing and to stick to it rigorously. During this time, it's important to focus on writing and not to worry about editing your content. To overcome writer's block and to get through the writing process, try using freewriting and time management techniques. Edit your booksIf you can, collaborate with experienced editors to help you improve your content. There are professional sites where you can submit your work and get it edited for a price. Another good idea is to step away from your work for some time and to come back to it with fresh eyes. Getting some space away from your content will help you find ways to improve. Note that editing can be the hardest part of writing an ebook. You'll have to cut content you love or start over entire sections. Direct your users to your community and brandIt is important to promote your work by sharing it on different platforms. Make sure that in your content as well as through supporting material, you encourage people to reach out after reading your book. Add links and mention resources so that readers turn to your website, Facebook group, membership site, or some other platform to learn more. Once you turn your readers into subscribers or followers on social media, that's when you can nurture them with marketing content and create paying customers. Starting an ebook to grow your business is a well-known tactic that can help small businesses and individuals. It's a way to create an audience in a passive format and to drive people who are interested to directly communicate with your brand. Do your research and consider creating an ebook to build your audience. If you leverage it correctly, you'll have a passive way to bring in new leads.
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| Email Marketing Best Practices and Predictions for 2021 Posted: 18 Jan 2021 06:30 AM PST  In the new year, your marketing strategy may need an update. Some of the tactics you relied on in 2020 may no longer be relevant, so you need to adapt your strategy. Email marketing remains one of the most effective marketing channels and should be a centerpiece of any brand's larger marketing strategy in 2021. COVID-19 has made an impact on email marketing, which proved to be a helpful channel for reaching audiences. Campaign Monitor reported that email open rates rose in the early days of the pandemic because people wanted to know what was going on. In 2021, email will likely continue to be one of the top marketing channels. [See business.com's Best of the Best 2020 pick for email marketing, Constant Contact] Importance of a strong email marketing strategy in 2021Studies have shown that email is one of the top forms of marketing:
An effective email marketing strategy can help you accomplish the following goals:
COVID-19 hit businesses hard; many had to close their doors for good. Many of the surviving businesses saw reductions in their workforces and revenue. While you may need to cut corners in certain areas of your business to save money, don't compromise on your email marketing strategy. Benefits of an email marketing strategyHaving an email marketing strategy in 2021 can help you meet your business goals for the new year. Here are three major benefits of developing an email marketing strategy: Building stronger relationships with your customers and prospectsBuilding relationships to earn loyal customers can help keep your business afloat during the pandemic. One way to do this is to send emails to see how your customers are doing, how you can help them or how everything went with their order. This email example that Stellar Villa, a wall art company, sent is an excellent example of how to build relationships with customers: One reason this email is effective is that it shows that the company cares enough about its customers to make sure they received their order and that they are satisfied, said Patrick Connelly, co-founder of Stellar Villa. Second, the email asks customers a question and prompts them to reply to the email. "This starts a conversation in which you not only further engage with your customer, but you create a memorable, positive experience for them," Connelly said. "Also, in the rare event there is an issue with a customer's order, they can let you know, which will give you the opportunity to fix it right away. This prevents negative experiences." Connelly added that because the email is not promotional and contains mostly text, it does not get caught in spam or promo folders. The subject line reads, "Re: Your Order from Stellar Villa," putting the brand front and center. In the email itself, the company also inserts the customer's first name, when available, at the start of the email, to personalize it. Reaching your prospects and customersYour prospects may not be in the office to receive your business-to-business company's direct-mail piece, on the roads to see your billboard ads or reading the newspaper to look at your print ads. They are, however, looking at their mobile devices wherever they go. As a result, your audience can access your email marketing content from anywhere, anytime. Crafting emails that get resultsEmail marketing should fit within your larger marketing strategy. Speak in your brand's voice, and stay on track. But also find a way to take advantage of the personalization options that email provides. When you can reach someone's inbox, you have direct contact with them. By tracking metrics such as open rate, click-through rate and conversions, you can determine how engaged your audience is with your campaign. By identifying the demographics, wants and needs of your target audience, you can refine your email marketing content to relate better to your ideal customer. How can you gauge the success of your efforts? Improved engagement rates suggest your content is hitting the mark. To develop content that resonates with your ideal customers, consider creating buyer personas to represent the people who purchase your goods and services. How old are they? What is their employment status? What are their problems, concerns and goals? Adjust your buyer personas as you get real-world feedback from your customers, and use your buyer personas to refine your marketing strategy. Email marketing best practicesThese email marketing best practices are long-standing strategies. If you have not been following them, make 2021 the year to start. For information on what's predicted to gain popularity in the email marketing space in 2021, scroll down. Follow the CAN-SPAM Act.If you violate the regulations in the CAN-SPAM Act, you take the risk that your domain will be banned, which would mean you would no longer be able to send emails from your domain. The Federal Trade Commission compiled a CAN-SPAM Act compliance guide, which includes the following rules for businesses:
Cater your emails to your audience.To get better results from your marketing, you need to understand your audience. Use the tips from our Instagram marketing article to craft buyer personas. Buyer personas will help you identify and understand your target audiences so you can craft emails that speak to them. For example, if your business provides dog training services and one of your target audiences is new-puppy owners who never had a dog before, your email marketing content may ask these questions:
Then, you might include the following:
This type of email marketing best practice is called "segmentation," which involves separating various groups of email subscribers into smaller lists broken down by buyer personas. Sending different emails to targeted groups is more time-consuming than sending out one email to everyone on your contact list, but putting in this extra work can yield higher open rates, better click-through rates and, ultimately, more sales. Optimize your emails for mobile devices.About 68% of email campaigns are being opened on mobile devices, according to research from Campaign Monitor, which is why it's so important to optimize emails for mobile devices. People view emails differently on smartphones than they do on desktop computers, often scrolling quickly and sometimes paying less attention to them than they would if they were looking at a computer screen. Follow these best practices for optimizing your emails for mobile devices:
Test your emails on various screen types.Emails often look different on desktop screens than they do on mobile devices. Some email clients offer the option to preview desktop, mobile and inbox versions of your email. With this feature, you won't have to jump from device to device to preview your emails, but it does not hurt to do so. Keep your list updated.This is one of the oldest email marketing best practices, and yet many marketers do not follow it. Here are some of the risks you take by not keeping your email marketing lists up-to-date:
Take the following actions to keep your list updated:
Analyze the results, and adjust the campaigns accordingly.After you send your emails, your work is not done. As a good rule of thumb, wait about a week (to give subscribers a chance to open your emails), and then analyze performance to learn what worked well and where you can make improvements. Depending on your email marketing strategy, your reporting key performance indicators may include the following:
Market only to subscribers who opt in.There are email marketing tools that allow you to reach people who did not sign up to receive your emails, but most experts advise against using this approach. Emailing people who did not opt in to your marketing campaign could be detrimental to your overall marketing efforts. Sending emails to purchased lists rarely works and mostly wastes time and money while annoying people who don't have any interest in your products or services. Further, this type of email marketing could run afoul of privacy laws, such as the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Instead, take the time to build your email list and market to the people who have shown interest in your products and services. Consider timeliness.Integrating timely email marketing into your strategy can help boost engagement and sales. For example, during the holiday season, you might want to launch an email marketing campaign detailing the discounts and promotions you are running. In 2020, many companies leveraged email marketing to describe changes in policies related to the COVID-19 pandemic, while others emphasized their commitment to social justice during a summer of demonstrations. Always keep in mind that your contacts are moving through the world in real time and are affected by current events. Whenever possible, create that link between your brand and what your audience is experiencing in their personal lives. Email marketing predictions for 2021If you were to open your inbox now, you might see many of the same types of emails. That may change later in 2021, however, as marketers take advantage of new trends, strategies and technology. Here are some email marketing trends to watch for in 2021: Automated email sequencesAs the name suggests, an automated email sequence is a sequence of emails that are deployed via triggers set forth by email marketers. For example, when prospects opt in to your e-commerce clothing business's email list, you can create emails that go out automatically. Here are three potential sequences for that scenario:
Without email automation, sending emails at the right times to the right people can be a time-consuming task with little room for error. However, tools such as HubSpot and Sendinblue can help to streamline the automated email process. Increased investment in email marketingYou need the right team to get email marketing done right. Make 2021 the year you invest in qualified talent and the right tools to take your campaigns to the next level. If you don't think you have the budget, consider cutting expenses in other areas, as email marketing is critical to keeping your audience engaged and building brand loyalty. Animated emailsMake your emails pop with animations. You don't need a big budget to do this; you can use a free design tool, like Canva, to incorporate an interactive element into your email campaigns. Although you can't rely on imagery to get your full message across because images may be blocked or may not load properly on mobile devices, you can mix animations with standard text. |
| 5 Ways to Use Content Marketing for Lead Generation Posted: 18 Jan 2021 06:00 AM PST  If you want your business to work, you have to generate enough leads. Connecting with new customers means you can bring users from the awareness stage to the consideration stage in your sales funnel. It's this stage in which the lead makes the purchase on your website. Many marketers believe that they can secure a sale by simply asking users to buy from them. But in reality, people usually won't shop with a business until they are a subscriber. There may be so many other products in the market that offer the same features as yours. But to convince people to buy from your business, you have to make your product stand out by highlighting how it can add value to your users. Content marketing helps you turn curious visitors into subscribers, and eventually, into customers. Most marketers create high-quality blog posts as part of their content marketing strategy. Blog posts are the most shared content online. And by creating high-quality content for your blog, you can increase your traffic by 2000%. This strategy can help you generate quick leads for your business, boost your sales, and increase your profit. That is one reason why 53% of marketers consider content creation one of their top priorities. But that's not the only way of using content to market your business. There are various other lesser-known ways of using content in your marketing strategy to generate leads for your business successfully. So let's look at five ways you can use content to generate leads for your small business. 1. Start guest postingMany marketers believe that the main objective for guest posting is to create backlinks. But today, it has gone far beyond that. It has become an effective way of building authority in your industry and attracting relevant leads to boost your sales. That's why 60% of bloggers write 1-5 guest posts per month. But simply finding and sending your article to an authoritative website that accepts guest posts doesn't help you get the best results. The key to publishing excellent guest posts is to make sure your content is relevant to the partner website's audience. Instead of only using these opportunities to promote your business, make sure to create content that adds value to your readers. Spend time getting to know the audience of a website before you consider pitching your idea. Read through old guest posts, forums, and more, to better understand the target audience. Come up with interesting posts that can help ease readers' pain points and improve their lives. By taking this step with your content marketing strategy, you can establish yourself as an expert in your industry and build credibility for your business. 2. Create compelling landing pagesLanding pages are brilliant content marketing tools that can effectively help you reach your conversion goals. Many marketers confuse a homepage with a landing page. But the two are entirely different. Your home page is more about informing your visitors about your business. But your landing page is where you convince your prospects to take action. This action can be to subscribe to a newsletter, make a purchase, download a file, or any other conversion goal. The idea is to convince users to stick around on your landing page until they reach your call-to-action (CTA). But for that to happen, you have to make your landing page simple, straightforward, and distraction-free. When your prospects visit your landing page, you're a step closer to converting them. So it's vital that you make the best out of this opportunity. One way of doing that is to keep your copy focused on your customers, their needs, and how your product or service can help them fulfill their requirements. Then add a CTA that encourages them to take the step on your website. 3. Content upgradesAnother way of using content marketing for lead generation is to create content upgrades. Content upgrades are like lead magnets. You offer them to your visitors in exchange for their contact information. The idea is to put your content behind an opt-in form. Only a part of the content (usually the introduction) is visible to your audience, and the remaining part appears blurred. In order to gain access to the entire post, users have to unlock it. For that, they have to submit their email addresses. It's a great way of generating leads for your business. But to make this technique work, you should be able to hook your visitors with an engaging introduction. Once they become invested in your article, they are more likely to subscribe to read the piece in its entirety. 4. Send newslettersSending email newsletters is another very efficient way of using content marketing for lead generation. Did you know that 83% of B2B marketers use email newsletters for their content marketing efforts? Similarly, 79% of marketers believe email marketing to be more successful than any other content distribution channel. However, this method works well only if you have a robust email list. Unlike other marketing platforms like Facebook, where you have to depend on a third-party platform, your email list belongs solely to you. So you can use it on your own terms without depending on other sources. The best thing about your newsletters is that they can land right into your user's inbox. This gives you the chance to have a one-on-one interaction with your user. Using this opportunity, you can promote your products, offer a discount, introduce a new launch, etc., to your readers. To generate even more engagement and sales, you can even personalize your emails. This is one of the main reasons why newsletters are such a fantastic content marketing tool. 5. Quizzes and surveysYou can also use quizzes and surveys in your content marketing strategy. You can make your form more compelling by offering an incentive that encourages people to participate. Just make sure it's something that your users will really want. For example, you can offer them a chance to win $100 or win a movie ticket, an Amazon gift card, or anything similar. You can also try giving them a discount coupon for purchasing your products, offer a buy one get one offer, etc. Your users won't mind participating in your survey when they know that they can get a reward in return. Just like your surveys, you can create fun quizzes for your users too. With so many interesting quizzes doing the rounds on social media, people have started looking at it as a form of entertainment. So if you can be creative with your questions, people won't mind taking your quiz. Just do some research to know what can pique their interest. Then come up with some interesting questions. You can ask them to submit their email addresses where you can send them the results. It's a great way of generating leads for your business without being too annoying to your users. Using content in your marketing strategy is one of the most popular ways of generating leads. That's the reason why 81% of business leaders put content at the core of their marketing strategies. However, it can sometimes be a slow process. But instead of getting dejected, try getting creative in the ways you use your content. Using the above methods, you quickly generate leads for your business and expand your email list. |
| How Business Bootstrapping Works Posted: 18 Jan 2021 06:00 AM PST  Taking on debt or investors isn't the only way to finance a new business. Bootstrapping your enterprise can be an effective strategy – that's how the founders of Spanx, Patagonia and Mailchimp started their businesses. Here's what you need to know about financing your business yourself.
Editor's note: Need financing for your business? Fill out the below questionnaire to have our vendor partners contact you with free information. What is bootstrapping in business?Bootstrapping is when you use your own money to fund your small business – there are no loans to repay with interest or investors to tell you how to operate. According to Gallup, 77% of small businesses rely on personal savings for their initial funding. There are two schools of thought when it comes to funding a startup. Some say a startup founder should always use other people's money to finance a business, while others recommend going it alone. The latter is classic bootstrapping. How to bootstrap your businessThere are several ways to start a business without taking on debt or investors. Using personal savings is the most common path. Other options include selling an asset like a vehicle, freelancing on the side to shore up cash, or tapping a 401(k) plan. Some entrepreneurs even use low-interest credit cards, being mindful to pay off their balances each month. The goal of bootstrapping a business is to avoid being beholden to anyone so you can maintain full autonomy over your business. This method appeals to countless business owners, including Katie Palencsar, a venture capitalist at Anthemis, who successfully founded and exited a technology company through a combination of bootstrapping and outside investment. She sold her car and used her credit cards to grow her enterprise. "I didn't come from a traditional business background," Palencsar told business.com. "I was a first-generation college graduate and worked in education. I knew I was on to something, and I knew that, to get to certain inflection points, I needed small amounts of capital." Pros and cons of bootstrapping your businessLike any funding source, bootstrapping has both pros and cons. Before you make the leap, you need to understand the risks, especially if you plan to pour your life savings or 401(k) account into the endeavor. "Businesses generally don't generate a profit for two, three or four years," said Craig Steinhoff, a certified public accountant and member of the American Institute of CPAs' Consumer Financial Education Advocates. "The majority of small businesses don't make it. People need to know that going in. You may not generate a profit for years. You have to plan for that." Pros of bootstrapping your businessDespite the risks of bootstrapping your startup, there are significant advantages. Here are three: 1. You're in control.Many people launch small businesses because they no longer want to answer to someone else. If they seek investors for their business, they must give up some of that control. But if they use their own cash – especially in the early stages of their business – they get to run the entire show. "If you raise capital too early, it is more dilutive," said Eva Sadej, CEO of Floss Bar and Medbar. "I wouldn't be at 68% ownership if I hadn't bootstrapped." 2. Operations are lean.Using your own money means starting small and DIY-ing as much of the business as you can. One of the problems with accepting a loan or investment is the pressure to grow quickly – which might lead you to take on staff and other expenses before your business starts making money, resulting in cash flow problems and difficulty repaying the loan. By bootstrapping the business, you won't have to worry about paying back any debt. Nor will you have to contend with an angry investor if things go south. 3. You have freedom to experiment.Very few small businesses are overnight successes. It often takes several iterations of a business idea to figure out what works – which can be frustrating if you have an outside investor or some form of equity funding. If you bootstrap, you have leeway to tweak the product or service and figure out how you want your business to grow. Cons of bootstrappingBootstrapping requires you to be scrappy and frugal. You have to watch every penny, since it could take a long time for your business to start bringing in money. This requires you to grow slowly, which means it may take longer to reach profitability than if you had a lot of cash or outside funding. Here are other disadvantages of bootstrapping to consider. 1. It may hinder your business's growth.Startup funding is just part of running a business; you also need working capital to support operations. When you bootstrap a business, you might face cash flow or capital constraints that prevent your company from growing. It might also mean you miss an opportunity to reach new customers, expand, or pivot when necessary. "Bootstrapping a business is a great way to maintain control and ownership of a business, but the lack of access to working capital can often be an inhibitor to growth," said Dan Brames, an executive vice president at FIS. "As we also saw recently during the COVID-19 [pandemic], a significant cause of stress when shutdowns or supply chain issues mean tough decisions when paying your people or suppliers." 2. It's time-consuming and stressful.Raising venture capital takes time and work, but once you land the funding, you have a team of experts at the ready to provide advice and help you grow revenue. That's not the case when you bootstrap a business. You're going it alone. You won't have a venture capitalist to bounce ideas off of. Nor will you have cash in the bank that allows you to test a theory. Everything falls on you, which adds to the pressure and stress. "If you are bootstrapping, it doesn't leave much time for anything," Sadej said. "There's also a higher risk of burnout." Examples of successfully bootstrapped companiesDespite the risks of bootstrapping a business, there are many success stories business owners can draw from. These three companies are just a small sampling of startups that eschewed outside investors and successfully forged ahead on their own. SpanxIn 1998, Sara Blakely needed a smooth undergarment for cream-colored pants and found it by cutting the feet off a pair of nylons. That quick and ingenious fix spawned an idea, a product and a company. Blakely didn't seek investors or help from family and friends. She used $5,000 in personal savings, found a manufacturer to make her product, and inked her first major deal to sell Spanx at Nieman Marcus – all within two years. Now, Spanx is over 750 employees strong and Blakely is a self-made billionaire. Thanks to Blakely's drive and determination, Spanx achieved profitability in its first year, reportedly bringing in $4 million in sales, which has grown to an estimated $400 million annually. The company is still 100% owned by Blakely. PatagoniaPatagonia's commitment to climbing equipment is steeped in history, dating back to 1957. That's when founder Yvon Chouinard, at the age of 18, began teaching himself how to blacksmith, with an eye toward making his own mountain climbing equipment. Less than pleased with what was on the market, he turned his homemade climbing gear into a retail empire using his own money. Chouinard Equipment went on to enjoy years of success as the leader in mountain climbing gear. In the early '70s, Chouinard expanded into climbing apparel and renamed the company Patagonia. Today, Patagonia reportedly has around $800 million in sales annually. Chouinard never brought on investors, enabling him to pursue his focus on the environment. MailchimpBen Chestnut and Dan Kurzius created Mailchimp as an add-on for their web design business. The two launched Rocket Science Group in 2001, providing web design services to large companies. In response to demand, Chestnut developed a program for customers to market to their own customers. The duo targeted small businesses, maintaining this as a side project until 2007, when they closed the web design business to focus solely on Mailchimp. From the outset, Chestnut and Kurzius agreed not to bring on investors. They bootstrapped the business and still own 100% today. Mailchimp has an estimated $700 million in annual sales and is among the leading email marketing companies in the U.S. Tips for developing a bootstrap strategyBootstrapping your business isn't going to be easy, but you can employ certain strategies to make the process a little smoother. For starters, it behooves you to think long and hard about the type of business you want to create and the capital required to run it. Only then can you come up with ways to access the necessary funding to cover the startup costs. Next up is planning. A business plan is a must – even if you aren't seeking a bank loan or investment capital – because it helps you prove your concept and think about all aspects of the endeavor. Steinhoff said it should be detailed and account for potential hiccups and growth opportunities. It's important to be open to other funding sources as your business grows. While $5,000 or $10,000 in startup capital may be enough initially, as the business becomes bigger and more complex, you may want to consider bringing on investors or securing financing. "As SMBs grow, so do their borrowing requirements," Brames said. "The complexity of running their business increases, and the level of sophistication and feature/functionality they need increases, along with the challenge of control. Bootstrapping doesn't mean ruling out lending in the future." |
| How to Generate More Website Traffic with Social Media Posted: 18 Jan 2021 05:00 AM PST  Are you looking for a way to generate more website traffic with social media? If so, you're in the right place. Social media has quickly become one of the most effective ways for business owners to connect with potential customers. Globally, over 3.8 billion people use social media, and that number is increasing year over year. If you want to grow your company, you need to have a social presence. Websites like Facebook, Twitter, YouTube, and LinkedIn are pivotal to your success. You can use each of these platforms to bring more people back to your website, where they can browse blog content, subscribe to your email list, and buy products from your online storefront. Today, we will share several tips you can start using to gradually increase traffic to your website with social media. We will also go over several realistic situations where these strategies can come in handy, regardless of your industry. Share irresistible blog contentContent and social media marketing are intertwined due to the simple fact that you need to publish content to have an active social media account. However, the type of content you show your followers can significantly impact who visits your website. At this point, you should have a list of customer personas for your business. Customer personas, also known as buyer personas, are profile sheets that define customer segments within a company. So, an online pet store would have different personas for cat and dog owners. Understanding your buyer personas means you can share your best blog content on social media. If you know that your customers have a specific pain point that you address on your company blog, don't hesitate to share your article. Make sure to include a snippet of text to set the stage for readers. Let them know exactly what to expect if they click through to your website. If you are honest and provide value for people that click through, those folks are much more likely to spend more time on your website. When you consider that the average consumer reads three to five company blog posts before becoming a customer, this strategy makes sense. You have to get social media followers comfortable with your brand, and the easiest way to do that is through high-quality blog content. Sponsor interactive eventsAnother way to get more traffic to your website from social media is with interactive events. The great part about this tip is there are countless options you can choose from; it all depends on your business and industry's needs. For instance, you could hold a monthly webinar to educate customers about a feature of your product or service. There's a good chance you'll see people subscribe that are not yet paying customers. Many people like to see what they want to purchase in action before they metaphorically pull the trigger and complete their order. You can get people to sign up for your webinar by sharing a link to an event registration form on all of your social media channels. Now, when your followers are browsing their feed, they will see an opportunity to see your presentation. Once they click on the link and land on your website, you can present a simple registration form. You can then encourage visitors to take additional action by asking them to sign up for your email list, read a piece of content, or browse your product catalog. It's also possible to get more visitors by hosting an online giveaway. Contests are an excellent incentive and will get people to visit your website to see what they could win. Simply create a contest with rules that encourages your audience to spread the word. You could ask followers to share your post for a chance to win, tag a couple of friends, or virtually any other social activity that comes to mind. On average, giveaways have a conversion rate of 38%. Now, think about all of the additional traffic you can see by hosting an online contest. Consumers love the chance to participate in webinars, giveaways, and any other type of virtual event. If you're looking for a way to skyrocket traffic, one of these events can yield significant results for your business. Ask questionsIf there's one thing people like, it's voicing their opinion. There's no doubt plenty of room for growth if you're willing to use our desire to share thoughts with others to your advantage. When you're scheduling posts for social media, think about your followers' goals and pain points. If you want to improve on what you know, you need to ask users to tell you a bit more about how you can help. For instance, if you run an email marketing SaaS, you may want to ask users how they segment their leads. Asking an open-ended question like this is bound to get plenty of responses from people interested in email marketing. Read through the responses, and try to answer as many responses as possible. When you respond to users, they are more likely to click on your website and learn more about your company. Your willingness to engage on social media and ask questions ultimately led to them making it to your website. In our example above, the email marketing firm may use this information to develop new software features. Similarly, they could use the information to plan for future content, which will eventually get shared on social media. Use dynamic advertisementsThe final tip we will discuss today is a paid advertisement method used mainly on Facebook and Instagram called dynamic ads. Essentially, dynamic ads are promotions that are put together by the AI program behind each website. So, if you want to show advertisements to people that are not followers, you can benefit from dynamic ads. When you go through the process of activating these promotions with your social media account, you'll have the option to upload multiple text blocks, images, and offers. The AI program takes this information and creates dynamic advertisements that are personalized for each social media user. Imagine an online pet story using these types of ads to target cat owners with special promotions, and it's easy to see why this strategy works. When you can deliver timely and relevant promotions to potential customers, they are more likely to click-through and visit your website. The best part about dynamic ads is you can measure the results of each ad combination and eventually turn one of the random dynamic posts into a regular advertisement. Consider this; 55% of consumers look for new brands on social media. The ability to land directly in front of a potential customer when they need you most can boost your traffic and help you secure more sales. It's clear that the rising popularity of social media is here to stay. Businesses need to learn how to engage with their potential customers in this space if they want to see significant growth in 2021. Keep in mind that you may not see dramatic social growth overnight. Growing your channel from the ground up takes time, effort, and plenty of engagement. As your social channels start to grow, you'll begin to see more people land on your website from your business profiles. Stay active across your various accounts so new users will know where to find you when they discover your company for the first time. |
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