Social Networking for Businesses

In the past, companies could only market their products or services to potential customers in a unilateral manner.  In other words, it was a one-way monologue.  “Here’s our product, now please buy it.”  Through the use of social media, companies can now receive feedback from customers and respond accordingly.  Being able to have an open dialog and communicate with customers in this way is extremely powerful.  In addition, the general population seems to be spending more time on social networking sites than they do watching television, reading magazines or being exposed to other forms of media that may have previously dominated the advertising world.

Times have changed and if your company hasn’t changed along with them, you will be left behind.  For those of you who are already participating in social networking activities on a business capacity, this article may appear to be somewhat uninformative.  However, to business owners who have not yet taken full advantage of what can be accomplished on these sites, you will now be brought up to speed.

Social Networking Sites

The social networking sites that are most important are Facebook, Twitter, LinkedIn, Google+, Pinterest, Instagram, YouTube, etc.  At this time, Facebook appears to be the king of social media.  Statistically, people seem to spend more time on this site than any other.  LinkedIn is an excellent business-to-business site that can connect you to company decision makers and other people of interest.  Most LinkedIn members indicate their company title, which can be very useful.  Pinterest and Instagram are good for companies that have a visual aspect to their business.  For example, if you want customers to see images of your products.  Google Plus and YouTube are important because they are both owned by Google which is the most predominately used search engine.  Twitter is an excellent microblogging tool that can allow you to present short pieces of information to the masses.  You can also use it to provide links to more extensive information.

Getting Started

The best way to begin the process is to create accounts with the social networking sites mentioned above.  You can also research other social networking sites to see if they would work well for your business application.  Once you’ve created these accounts, personalize your profile to make it visually attractive, professional and easy for customers to contact you or at the very least, be directed back to your main website.

Developing a following on these sites is really the hardest part.  Many companies alert customers to their social media accounts by placing the site logos on print ads, brochures, signage, letterhead, business cards, email signatures and someplace prominent on the company website.  Through paid advertising, you can boost the visibility of your Facebook page in order to attract, “likes”.  Many times when you follow certain people on Twitter, they will extend the courtesy of following you back.  As your LinkedIn network grows, it may become easier for you to connect with others.  This is a very time consuming process but once your social network is large enough, your communication channels become very powerful.

Content is King

Once you’ve created your accounts and begun the networking process, the development and dissemination of content will be your next challenge.  If your main company website doesn’t have a place to post articles and press releases, you may want to consider starting a blog.  There are some free blogging platforms such as WordPress and Blogger where you can write about all the goings on of your company.  In this blog, you should write about every product you offer or service you provide.  You can also include information regarding special events, company news, discounts, staff changes, interesting factoids or any other information that you believe your customers would be interested in reading about.  Once you’ve posted this information to your blog, type the title of the article on your social media accounts followed by a link to the article on your blog or website.

Be Social

If a person comments on your post, you should respond in some way to let them know that the company is interested in their feedback.  This could be an excellent form of communication between you and your customers or potential customers.  Through this dialogue, you may learn a lot about your targeted demographic that you didn’t know before.  Social media also helps you locate your target audience more efficiently so that your message can get through to them directly.

In many cases, you will also find that your company will acquire new customers through these channels, giving your company a new and effective way to advertise.  You can also use social media to drive traffic to your website by posting links that provide information, discount offers and other interesting features that will attract customers.  Perhaps more importantly, it gives you and your company and opportunity to develop relationships with your customers which could positively affect your company’s image or reputation.  This could also be a very appropriate forum in which to respond to poor reviews in an effort to execute damage control.

In addition to posting articles, press releases, product images and short company blurbs, you should also consider anecdotal memes and infographics.  This may require some Photoshop skills or outsourcing to a graphic designer.  Sometimes people are too lazy to read articles and a brief message associated with an image can make a very powerful statement.  Even videos are excellent tools to get your company’s message across to the people who are not engaged enough to read through your blog.

For more information about how to participate in social network marketing for your business, please contact Ashlar Consulting Corporation at 305-849-9399 or visit www.AshlarConsultingCorp.com. 

How to Create a Budget for Your Business

When your business is small, you may think that you can manage the flow of money coming in and going out without keeping too close of a watch on it.  Maybe so, however, when your business begins to grow, it becomes too complicated and overwhelming to account for every expense that is incurred.  If you’re not budgeting your expenses, it’s like driving a car with a broken gas gauge.  Every well-run business has a predefined budget that is followed.  Without one, your business could be hemorrhaging cash and you wouldn’t even know it.

A budget is an estimated allowance for expenses that you know or suspect your company will incur.  The best place to start is your previous year’s financial statements or general ledgers that have been created by your accountant.  There you will find a chart of accounts along with how much was spent for each expense.  If you haven’t yet completed a full year of business or if your accountant hasn’t completed your previous year’s financial statement, you can figure out your expenses by reviewing your bank statements, credit card statements, payroll and check stubs.

Create an itemized list of expenses.  These may vary predicated on your type of business but below is a list of some common operating expenses that most businesses have:

• Office Supplies
• Communication
• Advertising
• Printing
• Insurance
• Salaries
• Rent
• Utilities
• Auto and Travel
• Meals and Entertainment
• Taxes
• Dues and Subscriptions
• Bad Debt
• Freight and Shipping
• Office Expenses
• Penalties and Fines
• Inventory
• Repairs and Maintenance
• Machinery and Equipment
• Bank Fees
• Professional Fees
• Cost of Goods Sold
• Research and Development
• Depreciation and Amortization
• Miscellaneous 

Some of these expenses may not apply to your business or you may have additional expenses not included in what’s listed above.  Nevertheless, once you have categorized each expense and created an itemized list, you must then estimate a realistic spending amount for a certain period of time, for example: monthly, quarterly or annually. 

The obvious goal here is to analyze how much revenue your company generates versus how much is being spent on these accounts.  The more accurate your budget is, the more useful it will be.  If after the predetermined period of time (monthly, quarterly, annually) you have exceeded your budgeted allowance, you will need to decide if it is necessary to cut back spending or expand the budget based on your company’s needs. 

Having these figures down on paper or on a spreadsheet is the only way to accurately monitor the flow of cash at your company.  It can’t be done in your head.  If your previous year’s income is higher than your estimated budget figures, then you know you’re on the right track.  If your company is spending more than the projected budget allows, you need to ask yourself why.  If it’s because your company is expanding, then you may need to adjust the figures in your budget accordingly.  If not, then there is overspending taking place.

At the very least, creating your budget will allow you to do a break even analysis.  It’s important to know how much it costs you to run your business per day, per month, per quarter, per year.  If you don’t have this information, you are blindly running your business, which is how companies encounter cash-flow problems.  Tracking your budget will provide more insight on the flow of money and make it easier to determine if you can make certain expenditures or not.

For more information about how to develop a budget for your business, please call Ashlar Consulting Corporation at 305-849-9399 or visit www.AshlarConsultingCorp.com.

Enduring Your Company’s First Lawsuit

If your company grows to any sizable amount and people around you have some reason to believe you’re making money, it’s safe to assume that you may be the target of a lawsuit at some point.  If you’re operating a successful business, you’ve probably already been sued, maybe even more than once.  One of the hardest aspects of having money is preventing other people from trying to take it from you.  This is just the way of our world and the best way to protect yourself is to be prepared.

If you have some reason to believe that you are about to be served with a lawsuit, don’t waste your time trying to hide.  Ditching the server may slightly delay the inevitable but they will catch up with you sooner or later.  Don’t lash out at the server.  He’s just doing his job and has no involvement in the lawsuit other than giving you the papers and making you aware of the action.

Promptly notify your attorney about the papers you’ve been served and allow him/her to lead you through the proper steps.  Your attorney has a limited amount of time to respond.  If you don’t have an attorney, you may want to consider interviewing several before deciding on who should represent you.  It may be a tough call to decide whether to use your regular corporate lawyer or an attorney that specializes in litigation.

From a business owner’s perspective, I can say that there are two different types of lawyers that I’ve encountered.  Some that are good at paper law and some that are good at trial law.  You may come in contact with a lawyer who you think can properly defend you because they seem to know what they’re talking about but when they finally get in front of the judge and jury, they choke up.  After interviewing some lawyers, you may want to consider seeing them in action.  Ask when the next time they will be in court and see how they perform.  Some lawyers know the law very well but just don’t have the charisma to effectively win over a jury or handle the judge.  Some litigation lawyers have even been known to take acting classes so they can improve upon their presentations in court.

Court is a hostile environment and whatever the dispute is about, there’s a good chance that it could get ugly.  Unfortunately, our judicial system has flaws and the outcome of many court cases can be unjust.  Many lawyers will confess that they have won cases they should have lost and lost cases they should have won.  How could this be?  Well, the lawmakers in this country have made rules that aren’t particularly lucid and can be interpreted in different ways. 

The judge has complete autonomy over the courtroom and can make any call he or she wants.  Many judges have developed somewhat of a God complex in the sense that what they say goes and they are always the boss of the courtroom.  I’ve seen judges disregard laws and make things up as they go.  Good luck trying to get an appellate division to rule against one of their fellow judges if you decide to appeal your case.  Unfortunately, in many circumstances, the fate of your lawsuit is dependent upon the judge who gets assigned to the case and how egotistical and opinionated he might be.  If he likes your case, regardless of who is right or wrong, you will have an advantage.  If he doesn’t like your case, you will be hard pressed to win him over.

Before you start transferring all of your assets into your relative’s name, it is recommended that you consult with your lawyer about asset protection.  If you lose the lawsuit and there is a resulting judgement against you, it could be determined that the transferring of your assets to divert seizure was fraudulent. There may be some legal measures you could take to protect yourself, such as establishing a trust, etc.

In the days leading up to the trial, it’s always a good idea not to discuss the details with anyone other than your lawyers.  Just like evoking your Miranda rights, remember that, “anything you say, can and will be used against you in a court of law.”  Even if you have a burning desire to absolve or vindicate yourself from whatever accusation the lawsuit suggests, it’s better to allow the process to run its course without you inadvertently saying something that will damage your case.  Such an admission can make you lose the batter before it even begins.

 If your company is registered as a corporation or limited liability company, you won’t have to worry about any of the company’s liabilities being passed along to you on an individual capacity.  However, if you are operating as a sole proprietor, you may want to discuss this with your attorney in an effort to mitigate your personal liabilities.

Many people have compared Sun Tzu’s book, “The Art of War” with business tactics.  In many cases, business is war.  Our competitors are our enemies and our employees are our soldiers.  Rather than bombing your office, one of your competitors may consider suing you as a strategic way of conquering you.  In order to survive this attack, you must respond strategically, utilizing your lawyer as your war general.