Online remarketing as a business tool

If you've (almost) purchased an item from Amazon or some other large retailer lately, you might be forgiven for thinking that the retailer is tracking you online and asking yourself, "How does the internet know I almost bought [insert item here]?"  The answer involves the computer cookies (online trackers) in your browser. They allow for remarketing, a type of advertising that gives you "a chance to reconnect with visitors who have abandoned your site without converting through Display Network advertising." 

With remarketing, an advertiser can promote specific ads related to the products or interests that online visitors have already expressed. For undecided or procrastinating visitors, remarketing can help remind them about products they previously were curious about. So for example, a visitor who abandons her shopping cart with a product in it will see the same product in a advertisement elsewhere online - with a discount coupon attached. Sellers only pay for the ad when someone clicks on it. 

People shop all the time for products they are not entirely certain about but could easily, with a bit of a nudge,  be persuaded to buy. A garden tool may seem like a pricey splurge on Amazon, perhaps, but more like a necessity when that gardener is reading a popular garden blog or chatting with fellow vegetable enthusiasts in a Facebook group.

Implementing remarketing is fairly simple. First, a business owner must sign up with Google AdWords and create an advertisement. Once this ad has been created, the retailer can target different audiences for remarketing.  So instance, a retailer can serve ads to potential customers who have visited their website as well as those who have already purchased their product. Or they may even target the former, excluding the latter. With Google Adwords, a retailer simply needs to select the audience that it would like to seek out, pinpointing for greater success. 

Remarketing is an especially effective advertising tool for those people who wish to improve their shopping cart abandonment rate. It's an unobtrusive tool. Most people will not even register this gentle reminder, making it more like a note from Mom rather than a bounty hunter's chase. But, if used correctly, it will improve your conversion rate, and it should be employed by anyone who believes AdWords is an essential part of their marketing efforts. 

A business owner essential: properly vetting employees

What do potential employers have to do to properly vet an employee? Obviously carefully constructing a set of interview questions to gauge whether the applicant is a good fit is paramount. Small businesses in the midst of reviewing applicants will generally ask questions relating to previous job experience, personal characteristics, and skill sets. Indeed, asking an applicant how they found out about an open position can very revealing. Applicants simply looking for a job will typically reply that they found the position after viewing general job listings. A better bet is to find an applicant who has taken the initiative to seek out your company. They generally have a stronger interest in helping your company achieve success.

In order to find the right fit, strong applicants should be amenable to the company’s culture.  Likewise, employers should ask applicants what they like about their current job, what their preferred career path looks like, and how their skill sets have might be helpful in the position.

However, properly vetting an applicant requires more than an interview or even calling references. If an applicant gives satisfactory answers to an employer’s interview questions, time and energy can be expended on the next step in the process. That is, an employer should take a close look at an employees prior connections, credit history, arrest record (or lack thereof), certifications, and of course, employment history. However, a potential employee must sign a consent form allowing the company to conduct this kind of investigation.

If the position your company is hiring for requires multiple, discreet levels of vetting, a professional employment agency can be hired to conduct background screenings for applicants. Additionally, if your business needs to protect against any rist, a surety company may issue a bond (a surety bond is a promise to pay one party a certain amount if a second party fails to meet a contractual obligation.) A bond protects the payee against any kind of loss if the payers fails to meet an obligation.

Most interviews will not these sorts of require advanced levels of checking, but, on the other hand, an untrustworthy or, heaven forbid, criminal employee can cause a large amount of damage to a company in a small period of time. Due diligence is always recommended.

Why your business needs insurance

When creating a business the last thing a business owner wants to think about is additional, seemingly unnecessary expenses - especially if those expenses do not contribute in any way to the bottom line. However, all business owners face risks in one form or another, so protecting both their investment and personal assets is essential. 

A forward-thinking small business owner understands the various risks that may befall his business. Accordingly, he wisely takes proactive measures to mitigate against any financial loss arising from such events.  What risks may occur during the course of normal business operations? It varies, of course, depending on the type of business operations involved, however insurance coverage exists for property damage, legal liability, and employee-related risks. When people think of insurance, they generally think of items being insured against theft or damage. A jewelry store would need to be able to cover for the loss of stolen diamonds, for instance. But physical property is not a business owner's only vulnerability. Consider what might happen if one of your employees is injured on the job, a natural disaster occurs, or a business partner dies.  Protecting your investment requires purchasing enough insurance to cover your assets, material or otherwise. Although a business owner's personal assets are protected if the business is a limited liability company (LLC) or a corporation, neither is an adequate substitute for liability insurance to cover a business from losses. 

Additionally, we live in a very litigious society where nothing truly disastrous must occur for someone to file a lawsuit. The expense of hiring a lawyer to fight off nuisance suit can be the different between a start up business in the black and one in the red. Consider your customer base - is it composed of people who might try to play and win the lawsuit lottery? If so, you must insure.

Even if a business owners decides against seeking insurance, financial lenders and investors will often require various forms of insurance (fire, flood, life) before any business transaction occurs.  They simply do not wish to share the financial risk associated with any unexpected events that may befall a business. 

State governments also require businesses with employees to have a certain amount of some kinds of insurance to cover employees who seek unemployment, disability, or workers' compensation. Companies that employ road vehicles for business operations are generally required by the state to purchase commercial auto insurance as well. 

Do your homework. If you run your business yourself, at home, and do not have merchandise or stock to sell or store, your insurance needs may be few. But for all the other business owners who make and sell products, employ other to help, and rent or own facilities to do so in, you need to consult an agent about what coverage is best for your needs. 

Making adjustments for best workplace environments

As discussed before, the newest trend in office design is the collaborative open layout in which employees are encouraged to work together and share ideas.  This new trend stems from the surge of Millennials into the workforce using technology continuously.  An open workplace reflects the environment of a classroom or coffee shop in which employees bounce ideas off each other and think creatively by communicating with those around them. Open environments require smaller rental space commitments, and are less expensive to clean, as well as heat and cool and so are popular with business owners cutting costs. Although the open concept may work well for extroverts who are inspired by visual interaction and energized by being around others, for introverts these surroundings may prove to be more a hindrance to productivity than a motivator.  

There is a distinct difference between the way introverts and extroverts tend to function in office space.  Some extroverts are extremely productive and creative when they are surrounded by other employees throughout the workday; but many introverts need a quiet office to achieve the greatest productivity.  There must be a way for both types of employees to achieve optimal performance at work.

It's a good idea for businesses to periodically assess what kind of social environment their employees are creating. Study work patterns, and look for problematic workplace interactions (these are often not hidden!). Survey your employees both formally and informally. At least some of the problems your business experiences may stem directly from workplace arrangements, and those can be surprisingly easy to change through desk swaps or targeted scheduling. 

Some businesses also allow their employees the option of working from home.  The employer is still able to monitor the employee’s progress day to day through various tools such as telecommunicating, Skype, or email.  Another option is to provide both an open concept layout for those who work better in a group setting and a closed, quiet room for those who work better alone.  In a decently sized office space, a separation of rooms can be achieved with removable walls and office furniture that is easy to move.  
Conference rooms are another space to use for group work. They often go unused and could be added to the mixed of differently used work environments.  

While Millennials have a reputation for being more comfortable in groups, there are, of course, plenty of introverted representatives of Gen Y. Workers from other generations will also appreciate the option of being able to work in private and focus entirely on one project at least part of the time. Using your office space in the best way to maximize productivity of your employees is extremely important both for productivity and the maintenance of healthy work relationships. Providing a space that all people feel comfortable will benefit everyone in your company. Do not be afraid to try a number of solutions in your attempts to create the best arrangements. Long term workplace harmony is worth a bit of construction dust.

How Does Your Small Business Cut Energy Costs?

Small businesses have endless expenses, but one of the largest is the cost of energy.  Almost every small business must use energy in one way or another.  For small, local companies that are competing with larger conglomerates, fluctuating energy costs can be quite a hindrance, to plan for and to pay for.  Businesses are continuously looking for ways to cut back on the cost of energy.  Particularly in the wake of rising energy costs such as gas prices, most small businesses are forced to find new ways to ensure they are not losing too much money.  

Small companies that rely heavily on transportation and delivery can save money on energy costs by doing some simple planning ahead.  For trips that require numerous stops, companies should map out the most effective route that encompasses all needed destinations.  Some businesses tack on fuel surcharges when making deliveries at times when energy costs increase and then remove them when they decrease.  This trend began in 2008 when gas prices sky-rocketed.  

In the age of online communication, most meetings can be done via Skype, Google Chat, or in conference call.  Instead of using the money to pay for fuel to drive to meetings, small businesses are choosing to communicate via the internet, setting up meetings online or over the phone. Some businesses have chosen to eliminate their land line and do all of their telephone communication either by cell phone or VoIP.

Another crucial way to save money when energy costs fluctuate is maintaining your business vehicles.  Make sure, particularly after harsh winters, that engines are finely tuned, oil has been changed, and tire pressure is where it should be.  All of these can positively influence your car’s gas mileage.  When gas prices rise, the costs of shipped goods also increases. Small businesses especially must find ways to combat the expense of energy, so some choose to increase the price of their product or service.  Even a small increase can help balance the books.  

Gas prices fluctuate for several reasons.  Generally, the change in season from winter to spring brings more drivers out, which causes prices to rise.  The trend is that prices decrease after the initial spike in beginning of the summer, but after Memorial day will increase again with the amount of travelers on the roads.  Prices also follow the fluctuation of global oil costs; rising and falling when they do.  Another reason prices may rise is seasonal maintenance and upkeep of refineries.  

Small businesses have obvious budget adjustments to make when it comes to fluctuating energy costs.  There are some obvious ways companies cut energy costs such as regular vehicle maintenance.  But also underlying ways that may not be as apparent to the consumer eye but are in direct correlation to the increase in gas
prices, such as product cost inflation.  However small businesses choose to adjust; energy costs have a large impact on net income and in turn, on our local economy.

Small Businesses and Rising Gas Prices

Rising gas prices can be stifling for all of us, but the effects for small businesses can be much worse.  Numerous factors play into the negative outcome that spikes in gas prices can bring to small businesses.  Companies that rely on local transportation and delivery as a large part of their profit can be hit very hard.  

David Parsons, president and CEO of AAA Carolinas stated, “Spring is a difficult time for drivers, when gas prices typically rise due to refinery maintenance.  The tightened supply throughout the country results in higher gas prices.”  An increase in prices can also be correlated to the higher demand of drivers after the brutal winter most of the country experienced this year.  Seasonal maintenance at refineries is an additional factor for increasing gas prices.  

Small businesses that are already competing with large conglomerates have a more difficult time coping with the spike in gas prices that can come seasonally.  Delivery costs for businesses that base much of their profit on the transportation of their product suffer exponentially when gas prices increase.  They look for other ways to cut costs which can come as cutbacks, shorter business hours, even moving manufacturing out of the United States to countries such as Asia.  For some small businesses, an increase in gas prices may mean an increase in the cost of their product to make up the difference.  

Fuel usage is a major expense for small, local companies.  Especially businesses that focus on packing and delivery as the main source of their profits can be highly affected by soaring gas prices.  The arrival of spring can mean greater business and easier travel for small companies, particularly after this year's horrendous winter weather.  Increased gas prices work against this potential of growth for small companies.  

The trend that gas prices generally follow is to rise in the spring, come back down around Memorial Day, and then increase again through the summer. Businesses must find ways to work around the spikes and sustained rises.  By cutting costs, carpooling, organizing deliveries accordingly, and preparing ahead of time, local companies can generate as much profit as possible during the high-cost period.  Although they adjust, small businesses are one of the sectors of the economy most affected by gas spikes. And since much of business consists of small businesses, this problem affects all of us.

Does your business need a lawyer?

Every business owner is loath to spend income on unnecessary expenses, particularly smaller, newer or home-based businesses on thin margins who have yet to make much profit. It's much more satisfying to pay someone to make you an impressive website or even keep your books. However, the United States currently has a very litigious climate; as a country we spend about 2.2 percent of the gross domestic product, approximately $1000 for each person on tort litigation. In these circumstances finding a good lawyer is like hiring a bodyguard - with his presence and expertise, he'll stop attacks from happening as well as deal with any that do actually occur.

There are a number of areas a small business owner will need to consult a lawyer about: contracts, taxes and licensing, and real estate matters such as purchasing or leasing property or equipment. Over time matters that should be rather simple have become increasingly more complex because of other lawsuits. The legalese on these documents gets denser as sued parties attempt to reassert control. If the average person doesn't understand a basic user contract for an internet site like Facebook, how is he expected to know what's been inserted into his rental contract as a disincentive for his company ever to sever the relationship? No one wants to sign a lease from the Hotel California, after all.

At the outset of your business, you should consult an attorney about the legal basics of business formation. A number of things can be done without a lawyer's involvement. You don't need a lawyer to name your business, claim a trademark, hire employees, create buy-sell agreements, or file initial paperwork, but the Small Business Administration recommends consulting a lawyer to:

• Form a corporation
• File a patent
• Buy or sell a business
• Handle litigation

Particularly when dealing with litigation, it's advisable to have an attorney who is already familiar with your business and, preferably, has the kind of clout necessary to intimidate instigators of frivolous lawsuits or ambulance chasing. If you have not yet consulted an attorney to represent your business at least in times of legal necessity, start asking around for recommendations now - because when you need one, you really need one.