Simple Ways to Differentiate Your Business From the Rest
If two firms are selling similar products, how can you differentiate yourself so that customers purchase from you and not your competitor?
If you’re opening a business that’s selling the same thing as everyone else, then there’s no reason for your business to exist. Coming up with a unique concept with some stunning product innovation and development is the key to success. So, it’s essential to provide at least some products as part of your mix that customers can’t get anywhere else.
That being said, it’s not possible for a small business just making its way into the market to compete with big business on volume. However, it can compete with them on relationships. Relationships with customers, employees, and vendors. Here’s how:
Change your views
According to Andrew Carnegie, making money becomes an easy proposition after the other guy’s basket is filled to the brim. It means that a business does not have to be a zero-sum game. Nobody needs to lose for someone else to win. Instead, try developing mutually-beneficial relationships with your vendors to assist them in producing, while offering the kind of high-quality, well-designed, fun, and useful products that will delight your customers.
How do you do this? Honestly, these relationships take time to develop. Still, initially, you should spend a significant amount of time familiarizing yourself with your vendors, learning about their business and the issues they face. You should then be looking for ways to assist them, make them more profitable, more productive, and of course, happier. And in turn, allow them to get to know you, your business, and what you stand for.
When you develop relationships like this, you’ll be shocked at how many of your vendors aren’t willing, but happy to provide you great pricing, high quality, fast delivery, and exclusive, custom-made products. While it’s difficult to beat the mass merchants on a lot of things, you can sure defeat them on relationships.
Train your employees to sell solutions, not just products
There are many instances of firms where training is perceived as an afterthought or a burden. However, comprehensive training for new hires on every aspect of the products you sell enables them to truly serve as the experts, and offer valuable service to your customers. Thus, you’re not doing, “items-based selling,” but “solutions-based selling.”
When a customer approaches one of your employees and asks about a product, the representative must start asking questions to understand their needs – maybe even finding needs said customer didn’t know they had when they first came in. It’s after assessing their needs that the employee can recommend the best possible solution for them – whether it’s the product they originally came in for, or not. That is truly one of the biggest differentiators out there – and excellent customer service, to boot.
Create an environment where customers want to shop
Don’t underestimate the significance of developing an environment where people want to shop. This applies whether your business is online or brick and mortar. It’s having that, “air of enthusiasm,” or something you can feel in the bright visual displays of useful, clever, elegant products. The customer can feel genuine interest in the their needs, and employees’ smiling faces. Customers can sense when employees are enjoying their jobs and having fun – it’s a contagious attitude, which hopefully causes customers to spend more time shopping. This differentiates you from others irrespective of what you’re selling.
In search of a business for sale in Houston? Call TruView Business Advisors: we’ll have several options from which you can choose.
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Distressed Business Investments amidst the Coronavirus Pandemic
The coronavirus pandemic has wreaked havoc globally on a big scale. The COVID-19 threatens lives while the measures required to stop its spread threaten livelihoods. The combination has forced numerous businesses into financial distress and will continue to impact businesses for months to come.
Due to this pandemic, there are three categories of firms available for transactions: firms that have advantaged from the crisis (value likely to be up), those that were healthy before the pandemic and are now distressed, stressed, or shot down (value likely to be down), and firms that were distressed or teetering per-pandemic and are now even worse off (value going down even further).
Since the coronavirus crisis and the resulting distress aren’t size-specific, industry-specific, or geographically restricted, private equity investor of every type on the buy/sell-side of M&A transactions need to come up with a high-pressure, high-risk period in an economy so distinct that it is not possible to predict precisely based on previous recessions or historical models. Even as the market has flipped from fierce competition for fewer deals and seller’s market of high valuations to a buyer’s market of more deals at fewer valuations, a large number of deals will be distressed. For deal makers who are accustomed to healthy company transactions, the idea of distressed investment offers big opportunity, but also a big challenge.
Distressed investment is to healthy company investment as sprinting is to marathoning. While both of them are running races, they have very non-transferable and unique characteristics and requirements to compete effectively. Just like a marathoner isn’t likely to do well in a sprint without substantial support and preparation, a healthy company investor diving head-first into the distressed M&A market is likely to find themselves struggling to keep up and without sufficient risk mitigation. But those that have the power to adapt to this new normal will have opportunities for substantial returns.
Can the Business Adapt Quickly to Survive?
As the business emerges from its immediate crisis, distress creates the chance for an investor to get it right. After developing a deep understanding of how the business got to the condition it is in, you’re in a position to pinpoint what can be changed to improve performance going forward. The immediate to-do list should comprise an analysis of the company’s days payable outstanding (or DPO), vendor contracts, historical liabilities, capital structure, workforce, days sales outstanding (or DSO), pricing, customer base, structure, along with shedding of non-money-making/non-core locations, units, and assets. While forecasts are challenging today, business fundamentals remain. More money has to come in than goes out; it’s typical that 20% of the revenue generates 80% of the profit, and bet on good management every time.
When it comes to predicting the capability of a distressed business to survive and eventually thrive in the long-term, investors usually look backward by challenging every line on the income statement and the balance sheet and look forward based on consumer-trend and economic forecasts. No one has a clear picture of how consumers will behave once a reliable forecast is available, and mandates are lifted, thanks to the uncertainty that the coronavirus pandemic has injected into today’s market. It has become important for the long-term viability assessment to challenge every assumption about the behaviors of the consumer in the same way that the historical analysis has always challenged all the line items within the financials. Will customers return to restaurants and stores, or will the coronavirus pandemic-driven migration to online sales change the retail landscape irreversibly? Will people return to hotels, airplanes, and face-to-face interactions, or have they become so accustomed to digital interactions that those sections will never return to the pre-2020 levels?
Plus, demand is not the only uncertainty. It is important to question the assumptions around supply too since you aren’t dealing with just a single faltering business, but with whole faltering industries. Look at the whole supply chain, from distribution to facilities to parts, and factor in where supplies are coming from – are they being produced somewhere abroad, where production could be closed even as the US opens again?
Business managers and investors who get the answers to questions like these right will be the ones who are positioned to succeed in the upcoming years.
Interested in certified business valuation or selling a distressed business in Houston? Let TruView Business know.
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Essential Meeting Tips for Buyers & Sellers
The buyer-seller meeting is quite often a “make or break” meeting. Your business broker or M&A Advisor will do everything possible to ensure that this meeting goes as well as possible.
It is vitally important to realize that rarely is there an offer before buyers and sellers actually meet. The all-important offer usually comes directly after this all-important meeting. As a result, you want to ensure that meetings are as positive and productive as possible.
Buyers need to understand how the process of selling a business works and what is expected of them from the process. Buyers also need to understand that following their broker’s advice will increase the chances of a successful outcome.
Sellers should be ready to be honest and forthcoming during the meeting. They also want to be sure to not say or do anything that could come across as a strong-armed sales tactic.
Asking the Right Questions
If you are a buyer preparing to meet a business owner for the first time, you’ll want to make sure any questions you ask are appropriate and logical. It is important for buyers to place themselves in the shoes of the other party.
Buyers also shouldn’t show up to the buyer-seller meeting without having done their homework. So be sure to do a little planning ahead so that you are ready to go with good questions that show you understand the business.
Building a Positive Relationship
Buyers should, of course, plan to be polite and respectful. They should also be prepared to avoid discussing politics and religion, which often can be flashpoints for confrontation. When sellers don’t like prospective buyers, then the odds are good that they will also not place trust in them.
For most sellers, their business is a legacy. It quite often represents years, or even decades, of hard work. Needless to say, sellers value their businesses. Many will feel as though it reflects them personally, at least in some fashion. Buyers should keep these facts in mind when dealing with sellers. A failure to follow these guidelines could lead to ill will between buyers and sellers and negatively impact the chances of success.
Sellers Should Be Truthful
Sellers also have a significant role in the process. While it is true that sellers are trying to sell their business, they don’t want to come across as a salesperson. Instead, sellers should try to be as real and honest as possible.
Every business has some level of competition. With this in mind, sellers should not pretend that there is zero competition. A savvy buyer will be more than a little skeptical.
The key to a successful outcome is for business brokers and M&A Advisors to work with their buyers and sellers well in advance and make sure that they understand what is expected and how best to approach the buyer-seller meeting. With the right preparation, the odds of success will skyrocket.
Copyright: Business Brokerage Press, Inc.
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The Main Street Lending Program
There is no doubt that the COVID-19 situation seems to change with each and every day. The disruption and chaos that the pandemic has injected into both daily life and business is obvious. Just as it is often difficult to keep track of the ebbs and flows of the pandemic, the same can be stated for keeping up to speed on the government’s response and what options exist to assist companies of all sizes.
In this article, we’ll turn our attention to an overlooked area of the government’s pandemic response and how businesses can use a whole new lending platform to navigate the choppy waters.
As the pandemic continues, you will want to be aware of the main street lending program, which is a whole new lending platform. It was designed for businesses that were financially sound prior to the pandemic. Authorized under the CARE Act, the main street lending program is quite attractive for an array of reasons. Let’s take a closer look at what makes this program almost too good to be true.
This lender delivered program is a commercial loan. Unlike the PPP, there is no forgivable component. However, the main street lending program does have one remarkable feature that will certainly grab the attention of all kinds of businesses. It can be used to refinance existing debt at a rate of around 3%. With that stated, it is also important to note that businesses cannot refinance existing debt with the current lender. Instead, a new lender must be found. Generally, loans are a minimum of a quarter million dollars and have a five-year term. In another piece of good news, there is a two-year payment deferment period.
The main street lending program can be used in a variety of ways. In short, the program is not simply for refinancing existing debt. Additionally, there is no penalty for prepayment. The way the program works is that lenders make the loans and then sell 95% of the loan value to the Fed. This of course means that the lender is only required to retain 5% of the loan on their balance sheet. The end result is that lenders can dramatically expand the amount of loans they can make.
Whether it is the PPP or a program like the main street lending program, there are solid options available to help you. Businesses looking to restructure debt or put an infusion of cash to good use may find that the main street lending program offers a very flexible loan with great interest rates.
Copyright: Business Brokerage Press, Inc.
The post The Main Street Lending Program appeared first on Deal Studio – Automate, accelerate and elevate your deal making.
Why Does Your Business Need Google Reviews?
In today’s business climate, reviews are the differentiator. Years ago, people commonly asked for references when they were vetting a product or service. But these days when people are searching for a local business to work with, they are likely to conduct research on their own and read online reviews.
Google reviews can give businesses a big credibility boost without having to spend a dime. Let’s take a look at some of the key benefits.
Increased Credibility & Trust
According to statistics, approximately 91% of consumers read reviews to determine credibility of a local business. In fact, 84% of consumers say the positive reviews have helped them gain trust. Without the reviews, that level of trust would not have been established.
Needless to say, people trust Google. The fact that these reviews are on a 3rd party website increases transparency. These reviews have much higher value than testimonials posted on the actual business website.
Improved Business Conversions
Once a potential customer gains trust in your company through reading Google reviews, it is more likely the conversation will get converted to an actual business transaction.
Customer Feedback Loop
When your customers write reviews about your business and post them on Google, these reviews often clearly mention details about your product or service. Through this means, future customers become educated. These reviews can also serve as a feedback loop for you if things need improvement.
Increases Online Reputation & Visibility
The power of online marketing methods you might be using to promote your business will be amplified, as users will become more attracted to your business due to 5-star reviews. This factor increases online traffic to your website and an increase in leads and business.
Another fact to be conscious of is that your clients will review your products or services whether you want them to or not. If you fail to set up Google reviews, you’re missing out on the opportunity to gain a level of control and visibility.
How to Set Up Google Reviews
- Create a Google My Business account. – Visit https://business.google.com/ to sign in or create a Google account for a business. Complete the step by step process by filing required information like email, phone number, business details, etc.
- Ask clients to review your services. – Start sharing your Google My Business URL with clients and ask them to post a review about your services. When asking for reviews, you can mention to clients that their review will help everybody else make an informed decision when they are looking for help. It is important to ask about the review within a few days of closing your transaction. If more time goes by, the client may be less motivated to post a review for you.
- Remind clients. – Everybody is busy. Therefore, there is a chance that your client might forget to write a review. In this case, we recommend reminding them to do so. You can also politely inquire if they need any help posting the review that you discussed.
Through the above-mentioned process, you can begin generating reviews for your business. Of course, it goes without saying that you can only guarantee good reviews when you are providing excellent customer service along with a top-notch product or service.
Copyright: Business Brokerage Press, Inc.
The post Why Does Your Business Need Google Reviews? appeared first on Deal Studio – Automate, accelerate and elevate your deal making.