Handling Customer Complaints

If you’re thinking about starting up a small business or you’ve just recently launched, fantastic customer service is undoubtedly on your radar.

You want your customers to come away from an experience with your company having seen you in the best possible light. In an optimal situation, the majority of them would not only become repeat customers but would also enthusiastically recommend your product or service to others.

This, however, is easier said than done. Handling customer complaints can be difficult, especially right when you start a new business. However hard it may be to take criticism, it’s extremely important to the growth of your small business. Even if a customer doesn’t necessarily give you easy-to-swallow feedback, learning to see past harsh words and hear valid complaints and suggestions for improvement is vital.

Don’t fret! Here’s what you need to know to handle customer complaints with ease.

How to look past negativity

Starting a new business can be scary. Investing your time, effort, and finances into a venture that might not be a sure thing can be intimidating.

However, customer complaints shouldn’t add any stress. Fear of failure is high on the list of reasons why people sometimes choose not to pursue great ideas. For some, criticism or complaints can be viewed as a failure—but they aren’t. They’re actually just the opposite; they are an opportunity to improve.

Maybe you’ve heard horror stories from other business owners about “their worst customer ever,” but you should know that these types of scenarios are rare, though memorable.

No matter what happens, remember, even when delivered unskillfully, your complaining customers are providing a treasure trove of information on how you improve your business and your customer service approach. If you view complaints this way, you’ll be able to better prepare yourself and your team for any challenging conversations.

Sit down with your team and make a list of realistic questions or complaints that you might receive or that you have already fielded. Brainstorm ways to respectfully resolve the most challenging scenarios. This way, you’ll all be ready when a really difficult one comes your way.

Working in customer service for over ten years, I can’t tell you how many awkward interactions I’ve had. I’ve had customers yell, use bad language, and attack me personally. Although, if I think back to exact instances where this type of thing occurred, I can really only think of a handful of times where I left the interaction truly upset. For the most part, I felt that I had the tools and experience necessary to handle difficult calls. Though, for some escalated instances, I felt completely lost. Looking back, the times when I wasn’t sure what to do generally came up when I hadn’t been properly trained. As the leader of a growing business, talking through the top one percent of toughest calls, even though they are few and far between, will make all the difference in your staff’s confidence.

For example, I was once on a call with a woman who was using just about every tool that she had to break me down and get what she wanted. I remember physically shaking because I had no idea how to calm her down; I simply hadn’t been taught how to handle this type of call.

At the time, I was working as a manager for a direct selling company. The customer felt that she had been cheated because she received alternate products to what was pictured in our starter kit—but the kit stated that products may vary. As I saw it, there was nothing I could do. Our product listing made it clear that it was possible that she would receive equal (but different) products in her kit and those of us in customer service had been told by our supervisors that we weren’t to bend on this subject. No matter how effectively I felt like I communicated this information to her, she couldn’t have cared less. I had to step away from the call for a couple of minutes to calm down. After about an hour of back and forth with this woman, I went to my supervisor and was told to give her what she wanted.

I was shocked and upset and felt like a fool when I got back on the phone with my customer. We had been told that we should be able to handle these types of calls and I wasn’t able to. I hadn’t been trained on what to do if a customer wouldn’t take no for an answer, but another part of the problem was my own stubbornness. I should have gone to my leadership team and brought the problem to their attention well before I (and the customer) became so distressed.

The reason I mention this is to point out the fact that it is imperative to have a plan in place when the one percent of truly aggravated and unimaginably persistent customers come your way. If the plan at the highest level is to give the customer what they want, think about implementing this at the foundation level of customer service—during training.

Empowering your employees is the absolute best thing you can do to stop negativity in its tracks. No matter how the call starts, if your employees have the power to solve the issue themselves, they will walk away feeling positive, empowered, successful, and ready to take on the next problem immediately, and you as the supervisor and owner of your business will also leave feeling like you’ve trained trustworthy and capable individuals to do the important work of caring for customers, even the difficult ones.

Finding the right balance

Sometimes, you’ll want to focus on the positive comments you receive, which likely far outweigh the negative. What I mean is that positive comments can have a greater impact on your team, so don’t gloss over them.

Often, satisfied customers are quiet about their feelings. You might not receive a flood of positive comments, so amplify and celebrate them. It’s easy for a company to get lost in trying to eliminate every single negative comment, but it’s just not realistic. Of course, that doesn’t mean that you won’t try your best to help each customer have the best experience possible, it just means that you understand that not 100 percent of customers will walk away delighted. Most will, but any successful company will tell you that sadly, you just can’t please them all.

An easy mistake to make is constantly showing your customer complaints team every single negative comment. Maybe it seems like a good approach, a way to help them see faults and get better (and sometimes that’s true). However, consistently focusing on negative comments can break down your team’s morale over time, especially if they’re presented simply as evidence of failure.

There’s nothing wrong with discussing negative feedback as a learning opportunity, but your team needs to feel like they have the tools to be successful in their positions, so make sure that you’re helping them use negative feedback to grow. This sense of empowerment is crucial when dealing with a difficult customer.

The last thing you want is for your team to essentially transfer negativity from past complaints on to future interactions with customers—you’ll begin to see morale issues that can escalate into even more complaints. If you’d like issues to be resolved on their first interaction, train your employees and empower them so that they have the tools and confidence to do their job well.

Take this opportunity to put an improvement plan into place. Don’t ignore the complaints; embrace them and study them. When you start to see a trend, make sure to track it. A pattern of similar complaints should tell you that there is an issue that you and your team need to look into. Be sure you also track positives and the improvement that your team makes over time. Share that information with the rest of your organization to help open a company-wide dialogue that can generate insight and new ideas that you would have otherwise missed.

The key to handling customer complaints is empowerment. If you create a plan for your company that works for your employees—not against them—you’re bound to be successful. Focusing on and rewarding positive achievements will only add to your employees’ ability to skillfully handle negative interactions.

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You’ve Got Funding: 5 Things to Do With the Money Right Away

How to spend your startup funds is the most important decision a business faces at this crucial stage. That being said, fiscal responsibility isn’t something great leaders are born with—it’s often learned through trial and error.

Looking for some shortcuts in the capital spending learning curve? We’ve compiled five do’s and don’ts that every business owner should follow.

1. Don’t go on an (unplanned) buying spree

It can be incredibly irresistible, once funding comes through, to go on a buying spree for everything from company tech to office chairs. You must fight these urges, though, and only spend on what you truly need to get started.

Take a moment and step back to review the business plan that you worked so hard on. The details within those pages will remind you of the spending strategy you outlined to get your business off the ground. Look closely at your cash flow forecast so that you can spend accordingly.

Areas to avoid spending funds:

Before making the following purchases, go back to that business plan and determine if they fit in the parameters that you set for your budget and financing.

  • Fancy office space and furniture
  • Expensive equipment
  • Unnecessarily overpriced clothing
  • Pricey business trips and lunches
  • Expensive printing costs

Are these essential to your business? If you’re looking to be cost-effective in this arena, try using a spare bedroom within your home as a makeshift office; instead of buying expensive copy machines and printers, take advantage of print services at a local library; in the event a suit is absolutely required to impress prospective clients, simply rent or borrow a smart blazer from a local tailor or a friend.

If you need a physical location for customers to visit, look for a creative spot that has a smaller price tag. You can always upgrade all of these items as your business starts to bring in revenue.

2. Create a must-have list

One of the most common mistakes a failed business can make is operating with either insufficient funds or poor fiscal management overall. To combat this fatal error, try to create a list of absolute must-haves your business cannot live without.

Here is a list of undeniably essential expenses most successful businesses should budget for during their first year:

  • A competent CFO or accountant
  • Legal advice/tech support
  • Customer service/branding

You don’t need to pay top dollar for these items—but keep in mind that paying for quality in these areas is essential.

3. Evaluate technology needs

When it comes to investments at the startup level, really assess your technology needs. There are a lot of software and upgrades available, but make sure you measure these purchases against your actual needs to run your business.

Spending money unnecessarily on elaborate computer systems and hardware prove to be fatal mistakes for fledgling companies. While being able to answer emails on a large tablet-sized screen may be convenient, it can be done just as easily on a smartphone you already own.

That being said, intelligent spending on technology that promotes future marketing and sales campaign successes is always a good idea. It is in these small decisions that financially responsible business owners are born and truly thrive.

4. Invest in minimal staff

The backbone of any great business is a strong support staff. Most businesses only require one or two essential members on staff to start, and some need no one other than the owner.

Outsourcing to experts or knowledgeable friends and family at the get-go frees capital that would go toward salaries, and can provide a buffer for unexpected expenses. It may become essential to hire new staff members as a company grows, but it is important to remember to proceed only if it makes financial sense to do so.

5. Create a backup plan

It is the goal of any new company to reach, at the very least, the break-even point in the first fiscal year. This important measure signifies that profits are equal to expenses and up front capital investment.

When allocating profits and funding, always be prepared. In the event that a company doesn’t break-even by the end of the year, having access to some savings or backup funds can be critical. Some corporations don’t reach break-even until their second or third year of operation, so be prepared for this.

Warren Buffet once famously said, “Do not save what is left after spending, but spend what is left after saving,” and this advice still rings true. Smart fiscal choices bring success in the long run.

Remember that your business plan is your blueprint and your path to profitability; referencing it will help you figure out whether you can afford to take on more debt for the long-term health of your business. Using your business plan as a living document can help guide financial and staffing decisions based on your own data and profit and loss projections.

Financial forethought can truly be the deciding factor between failing quickly or building a successful business that is around for years to come. Obtaining funding for your business is an exciting accomplishment; spend wisely and always be prepared for the unexpected.

The Best Way to Handle Customer Complaints

If you’re thinking about starting up a small business or you’ve just recently launched, fantastic customer service is undoubtedly on your radar.

You want your customers to come away from an experience with your company having seen you in the best possible light. In an optimal situation, the majority of them would not only become repeat customers but would also enthusiastically recommend your product or service to others.

This, however, is easier said than done. Handling customer complaints can be difficult, especially right when you start a new business. However hard it may be to take criticism, it’s extremely important to the growth of your small business. Even if a customer doesn’t necessarily give you easy-to-swallow feedback, learning to see past harsh words and hear valid complaints and suggestions for improvement is vital.

Don’t fret! Here’s what you need to know to handle customer complaints with ease.

How to look past negativity

Starting a new business can be scary. Investing your time, effort, and finances into a venture that might not be a sure thing can be intimidating.

However, customer complaints shouldn’t add any stress. Fear of failure is high on the list of reasons why people sometimes choose not to pursue great ideas. For some, criticism or complaints can be viewed as a failure—but they aren’t. They’re actually just the opposite; they are an opportunity to improve.

Maybe you’ve heard horror stories from other business owners about “their worst customer ever,” but you should know that these types of scenarios are rare, though memorable.

No matter what happens, remember, even when delivered unskillfully, your complaining customers are providing a treasure trove of information on how you improve your business and your customer service approach. If you view complaints this way, you’ll be able to better prepare yourself and your team for any challenging conversations.

Sit down with your team and make a list of realistic questions or complaints that you might receive or that you have already fielded. Brainstorm ways to respectfully resolve the most challenging scenarios. This way, you’ll all be ready when a really difficult one comes your way.

Working in customer service for over ten years, I can’t tell you how many awkward interactions I’ve had. I’ve had customers yell, use bad language, and attack me personally. Although, if I think back to exact instances where this type of thing occurred, I can really only think of a handful of times where I left the interaction truly upset. For the most part, I felt that I had the tools and experience necessary to handle difficult calls. Though, for some escalated instances, I felt completely lost. Looking back, the times when I wasn’t sure what to do generally came up when I hadn’t been properly trained. As the leader of a growing business, talking through the top one percent of toughest calls, even though they are few and far between, will make all the difference in your staff’s confidence.

For example, I was once on a call with a woman who was using just about every tool that she had to break me down and get what she wanted. I remember physically shaking because I had no idea how to calm her down; I simply hadn’t been taught how to handle this type of call.

At the time, I was working as a manager for a direct selling company. The customer felt that she had been cheated because she received alternate products to what was pictured in our starter kit—but the kit stated that products may vary. As I saw it, there was nothing I could do. Our product listing made it clear that it was possible that she would receive equal (but different) products in her kit and those of us in customer service had been told by our supervisors that we weren’t to bend on this subject. No matter how effectively I felt like I communicated this information to her, she couldn’t have cared less. I had to step away from the call for a couple of minutes to calm down. After about an hour of back and forth with this woman, I went to my supervisor and was told to give her what she wanted.

I was shocked and upset and felt like a fool when I got back on the phone with my customer. We had been told that we should be able to handle these types of calls and I wasn’t able to. I hadn’t been trained on what to do if a customer wouldn’t take no for an answer, but another part of the problem was my own stubbornness. I should have gone to my leadership team and brought the problem to their attention well before I (and the customer) became so distressed.

The reason I mention this is to point out the fact that it is imperative to have a plan in place when the one percent of truly aggravated and unimaginably persistent customers come your way. If the plan at the highest level is to give the customer what they want, think about implementing this at the foundation level of customer service—during training.

Empowering your employees is the absolute best thing you can do to stop negativity in its tracks. No matter how the call starts, if your employees have the power to solve the issue themselves, they will walk away feeling positive, empowered, successful, and ready to take on the next problem immediately, and you as the supervisor and owner of your business will also leave feeling like you’ve trained trustworthy and capable individuals to do the important work of caring for customers, even the difficult ones.

Finding the right balance

Sometimes, you’ll want to focus on the positive comments you receive, which likely far outweigh the negative. What I mean is that positive comments can have a greater impact on your team, so don’t gloss over them.

Often, satisfied customers are quiet about their feelings. You might not receive a flood of positive comments, so amplify and celebrate them. It’s easy for a company to get lost in trying to eliminate every single negative comment, but it’s just not realistic. Of course, that doesn’t mean that you won’t try your best to help each customer have the best experience possible, it just means that you understand that not 100 percent of customers will walk away delighted. Most will, but any successful company will tell you that sadly, you just can’t please them all.

An easy mistake to make is constantly showing your customer complaints team every single negative comment. Maybe it seems like a good approach, a way to help them see faults and get better (and sometimes that’s true). However, consistently focusing on negative comments can break down your team’s morale over time, especially if they’re presented simply as evidence of failure.

There’s nothing wrong with discussing negative feedback as a learning opportunity, but your team needs to feel like they have the tools to be successful in their positions, so make sure that you’re helping them use negative feedback to grow. This sense of empowerment is crucial when dealing with a difficult customer.

The last thing you want is for your team to essentially transfer negativity from past complaints on to future interactions with customers—you’ll begin to see morale issues that can escalate into even more complaints. If you’d like issues to be resolved on their first interaction, train your employees and empower them so that they have the tools and confidence to do their job well.

Take this opportunity to put an improvement plan into place. Don’t ignore the complaints; embrace them and study them. When you start to see a trend, make sure to track it. A pattern of similar complaints should tell you that there is an issue that you and your team need to look into. Be sure you also track positives and the improvement that your team makes over time. Share that information with the rest of your organization to help open a company-wide dialogue that can generate insight and new ideas that you would have otherwise missed.

The key to handling customer complaints is empowerment. If you create a plan for your company that works for your employees—not against them—you’re bound to be successful. Focusing on and rewarding positive achievements will only add to your employees’ ability to skillfully handle negative interactions.

by:

 

What Startups Need to Know About Exit Strategies

Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return.

Exit strategies related to startup funding are quite often misunderstood: The “exit” in exit strategy is for the money, not the startup founders or small business owners. The company brings in money and the investors get money out. So startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. And the rest of us, starting, running, and growing a business, but not looking for outside investors, will probably need an exit eventually; but there’s probably no rush.

The exit strategy related to startup funding, is what happens when investors who had previously put money in a startup get money back, usually years later, for a lot more money than they initially spent.

Investor exits normally happen in only two ways: Either the startup gets acquired by a bigger company, for enough money to give the investors a return , or the startup grows and prospers enough to eventually register for selling shares of stock to the buying public over a public stock market, as happened with Facebook in 2012 and Twitter in 2013.

The traditional exit strategy

When investors sit for pitches from startups, they expect the startups to cover the exit strategy. That usually means talking, in the pitch and in the business plan, about how similar companies in similar markets have been able to exit via selling out to a larger company. The more sophisticated plans and pitches will mention recent exits and offer information about how the companies that exited were valued when they were bought. That usually ends up as something like “[this similar company] was purchased by [that company] in [that year] for [that amount], which was [that multiple] of its revenues.” The standard phrase in that context is “5X” for an exit value of five times revenues, or “10X,” or whatever. And that should not be confused with similar phrasing describing the investors’ exit: an exit at “5X,” for example, would be one in which the investors received an actual exit amount, in money or shares they can sell, of five times what they originally invested.

You can understand how investors feel about exit strategy if you consider what happens to investors who don’t get exits. They don’t have a return. They put money into a company, but they get nothing back. Having a minority share in a healthy, growing company, without any prospect of an exit, is a terrible scenario for investors. My own angel investment activities include more than one investment in companies that are still healthy, still growing, still have happy founders, but no good prospects for exits in the foreseeable future. And that scenario, while it can be very good for the founders, is terrible for the investors.

A different type of exit strategy

Aside from the investor-oriented exit strategy, which is a factor in every outside investment, you’ll occasionally hear about a different kind of exit, when the startup founders, the entrepreneurs themselves, sell their company and turn their ownership in a business into money. This happens most often as people get older and want to finish their careers. More rarely, you’ll encounter younger entrepreneurs whose vision from the start was to establish a business, grow it fast to make it attractive to a purchaser, and sell. These are also exits.

 

Do you know how to write and pitch an effective exit strategy? Do you have any questions? Share with us in the comments below.

 

10 Reasons Why You Should Date an Entrepreneur

Dating an entrepreneur is a task not everybody can handle. You have to put up with their weird habits and lack of routine. But if you are someone who likes things different then you will find a relationship with and entrepreneur exciting. Here are 10 reasons that will make you want to date an entrepreneur.

1. Every day is different

No two days will be the same for you. Every new situation your partner deals with will bring out something in them that you didn’t know about earlier. You will learn about his most weird habits very early and that is a great thing.

2. Life will be full of surprises

While they may forget some important events, they will more likely come up with very creative ways to make up for it. Instead of a normal, boring, expected birthday you will get a surprise when you least expect it.

3. They’ll make you start your own business

Entrepreneurs are always looking at opportunities to make money. So don’t be surprised if they notice a hobby of yours and persuade you to start selling it. The opportunity is so enticing that you will end up with your own business in some time. You may be painting or sketching or knitting in your pass time, they’ll make sure that it doesn’t just remain a pastime.

4. They are very passionate

It’s in the nature of an entrepreneur to be very passionate about everything they value. If you are in a relationship with them they will be passionate about it too. Sure, they may not give you too much time, but they time they do spend with you will be meaningful

5. Meeting new people is fun

If you like meeting people, this is something you are going to enjoy. While they are building their network you can socialize. You will have a lot of chances to meet other entrepreneurs, who will have adventures of their own. These are exciting people, you will never get bored with them.

6. You’ll learn how to dream

Entrepreneurs never let a dream pass by without giving it a try. If you have a dream and you talk about it, they will almost always tell you how you can realize it. For entrepreneurs, no dream is too big. You’ll learn that too if you stick with one.

7. They are spontaneous

They come up with random ideas all the time; and if they think it’s a good one they will execute them. This makes every moment you spend with them very exciting. You never know what they will do next. You can never prepare yourself for the next adventure that they plan for you.

8. You’ll learn to get creative

Every good trait eventually brushes off of people. Same is true for entrepreneurs. As you see them solve problems with creative ways you will learn how to do it to. The endless supply of creative ideas from them is a great input for your own problems. With more knowledge you will eventually start solving your own problems creatively.

9. You will become independent

As you are dating an entrepreneur you will realize that they cannot be there for you every time you need them. Coping with that fact you will learn how to do things yourself. Being independent feels great and your partner will appreciate this personality trait too.

10. They need you

The life of an entrepreneur is very individualistic. Most of the time they are tackling their problems all alone and it feels lonely. So they need someone to share their feelings with. They need someone to be comfortable with, with whom they can be open and personal. They’re human too, after all. This makes you a very important part of their lives and they will show that to you.

8 Things to Know Before Dating An Entrepreneur

Entrepreneurs are their own breed of boyfriend/girlfriend.

Dating someone on the precipice of professional life or death is both fantastically enlightening and a huge pain in the ass. As the great and mighty Elon Musk says, “Starting a company is like eating glass and staring into the abyss.”

Kind of sexy, no?

There are a few quirks inherent in the entrepreneurial personality you should understand as a mate. Whether he’s the founder of a startup, owner of a brick-and-mortar business, or a professional whose found a way to write his/her own paycheck, here’s what you need to know to make it work with one of these crazy kids.

GET YOUR SH** TOGETHER

If you’re dating an entrepreneur, you should try to get your sh** together.

Entrepreneurs are planners, strategists, goal-setters, and organizers. They’re neurotic about time, space, diets, and co-workers. And for better or worse, they’ll probably expect the same from you.

I’ve been made to feel like an #adultfail for making the bed “halfway,” forgetting an ingredient required to cook dinner, feeling too tired to attend our social commitment, or not packing a sundress to meet mom. But this obnoxious conscientiousness wins them points for remembering birthdays, following up on promises, and doling out praise when deserved.

Try not to take the criticism personally. Conscientiousness means his company’s trains run on time. But do spruce up the areas of your life patched together with duck-tape before you let him in. You’ll thank me later.

JACK OF ALL TRADES

If you’re dating an entrepreneur, your world will probably explode.

Each day is met with a new proclamation: “I’ve decided to eat blueberries and cricket powder for a month,” “I want to scale volcanos in Indonesia,” “I’m starting a new side project that should only take an extra 30 hours a week.”

Entrepreneurs are known for their schizophrenic array of hobbies, experiments, and personality quirks. A 2013 Swiss-German study found that entrepreneurs are more likely to be generalists and “Jacks of all Trades,” which means they bring a colorful assortment of skills, networks, and idiosyncratic obsessions to a relationship.

So use kid gloves. If you’re not cognitively flexible, tolerant of change, and extremely patient, you probably shouldn’t date an entrepreneur. As psychologist John Gartner says, “They’re like border collies—they have to run. If you keep them inside, they chew up the furniture.”

THEY DON’T REALLY GIVE A F***

If you’re dating an entrepreneur, you might be dating an asshole.

Entrepreneurs are famous for being a disagreeable bunch. I’ve dated them, worked with them, heard the horror stories, and witnessed the prickly exchanges.

But they’re often assholes out of necessity. The willingness to take social risks, speak the brutal truth, turn people down, and do the unpopular thing gives them an IDGAF advantage. Malcolm Gladwell insists innovators are naturally more disagreeable because they don’t have the time, energy, or interest to care what you think.

If you’re dating an entrepreneur, get ready for a dose of cold-hard reality. You’ll get the unfiltered opinions you should only hear from your mother. They’ll call you out when your sunglasses don’t fit your face or when they don’t like your article or when you don’t shave your legs. True stories.

Sometimes it’s tough to swallow, but there’s something to be said for taking the bad with the good.

THRILL OF THE RISK

If you’re dating an entrepreneur, get ready for a professional Evil Kenevil.

Successful entrepreneurs display an adaptive form of risk taking and are biologically wired with a high threshold for novelty, stimulation, and ambiguity. Research indicates entrepreneurs are more inclined to make “hot decisions” that require tolerance for risk and discomfort.

This is great… sometimes. Stuck in the airport? They’ll turn a stressful situation into an adventure. Facing tough stuff? They don’t shy from hard problems or awkward conversations. Want to have fun? They’ll cook up dates, trips, and conversations that feed their own laborator retriever appetite for stimulation.

But there’s a caveat. When a relationship is new, you are the mountain to climb, the landscape to explore, the challenge to win over. You are the ambiguity and novelty that gets them excited. Find ways to keep it fresh, because when routine overtakes novelty, you might go out of style like the last idea that bored them.

IMPRESSION MANAGEMENT

If you’re dating an entrepreneur, you probably only see half the picture.

When you first meet an entrepreneur, you’ll likely assume they’re more successful, well-off, or connected than they actually are. This is because entrepreneurs are generally impeccable impression managersImpression management is a skill honed from years of fake it till you make it. And it’s not just “helpful to have,” it’s a damn near entrepreneurial requirement.

Toby Thomas, CEO of EnSite Solutions, says being an entrepreneur is like riding a lion: “People look at him and think, This guy’s really got it together! He’s brave! And the man riding the lion is thinking, How the hell did I get on a lion, and how do I keep from getting eaten?”

So if you’re intimidated by the apparent success of the entrepreneur you’re courting, find comfort in the idea that their enviable personal PR is a necessary magic trick. They’re probably just trying to keep from getting eaten by the lion, like everyone else.

DELUSIONAL OPTIMISM

If you’re dating an entrepreneur, you’re probably dating a crazy person.

Don’t worry, crazy exists on a spectrum. Psychologist John Gartner believes a condition called hypomania is responsible for the success of many great entrepreneurs.

While full blown mania causes delusions (you think you’re Jesus or the president or Beyonce), hypomanics fall just under this crazy cliff. You have the edge of inflated confidence, boundless energy, and a sincere belief you’re pretty f***ing awesome.

While 1/3 of small businesses fail within five years and 2/3 fail within ten years, a whopping 33% of entrepreneurs believe their company has a 100% chance of success. That requires some serious grandiosity. In addition to hypomania, Nobel Prize-winning psychologist Daniel Kahneman credits this to delusional optimism.

You’ll have to navigate around an hefty ego and hint of narcissism to date a successful entrepreneur. It just comes with the territory. So if you can’t deal with manic work binges and an occasional (or perpetual) big head, then get out now.

THEY NEED TO ACHIEVE… A LOT

If you’re dating an entrepreneur, you’ll probably feel like you’re never working hard enough.

It doesn’t matter how ambitious you are, they’ll probably have you beat. According to David McClelland, entrepreneurs are driven by an overwhelming need for achievement. They’re builders, fixers, and get-sh**-done-ers. And they inextricably attach their identities to personal achievements, so they’re very motivated to get it right.

It can be be mystifying to an entrepreneur if other people aren’t driven by the same obsessive need for achievement. My girlfriend was recently broken up with because her entrepreneurial boyfriend was disturbed she viewed her law career as a “good job” rather than something she was passionate about.

So if your achievement in life isn’t directly tied to work, find another pursuit that offers the sexy glint of passion and purpose. An entrepreneur wants to see that something revs your engine.

GIVE HIM ROOM TO PLAY

If you’re dating an entrepreneur, you’re going to have to compromise.

Most entrepreneurs start companies so they never have to play by someone else’s rules. According to multiple studies, entrepreneurs demand independence, reject authority, and don’t like being told what to do. Which isn’t always conducive to the whole “being in a relationship” thing.

They play boss for a living, so don’t expect ultimatums, threats, or demands to be well-received. As Richard Branson says, “I believe in benevolent dictatorship, provided I am the dictator.”

Entrepreneurs need partners who are strong, but also flexible, forgiving, nurturing, and similarly independent. If you try to cage your free bird, you’re going to get fired.

Entrepreneurs can make the best or worst partners depending on their mate.

So figure out if you’re cool with an open relationship between you, your partner, his company, and a few quirks, hangups, and ego drivers. If you’re up for the challenge, it’s worth it every damn time.

 

 

5 Techniques Every Startup Can Use to Retain Customers

As part of a startup business, you’ll know that there is no greater desire to win your first customer or your tenth customer. You’ll do whatever it takes to call a customer your own. That quest will become so all-consuming, you’ll practically fantasize about it.

Entrepreneurs compare that feeling to owning their first pet.

It’s a neat analogy:

Like customers, pets get stolen, escape, or get lost. Even if they don’t, you just have to accept that a pet has a lifespan—sooner or later, they will be gone. You will grieve, and you will question what more you could have done. But eventually, you accept it and think, “that’s life.” So, the cycle continues.

When you’re starting up, worrying about customer retention seems a million miles away. There’s just too much to do, on top of winning those first few customers. Who has time to worry about stopping customers leaving, when you’ve only just started winning them?

That’s understandable. But eventually, when you’ve won your 500th customer and you still have yet to fully focus on retention, you’ll be missing a big trick.

 

Don’t accept that customer churn is inevitable

Sales and marketing spend, no matter how targeted, is always going to be more expensive than hanging on to the customers you’ve got.

Despite what anyone tells you, you can always do more to drive down customer churn. It doesn’t have to be as inevitable as many accept it to be. What’s more, you can achieve high retention, very sustainably, through the right approach.

Here are five techniques you should be focusing on to improve customer retention in your business and enjoy the same benefits we’ve seen.

1. Maximize the bad customer feedback you receive

Reducing the amount of complaints you receive doesn’t mean you’re making customers happier—it means you’ve got fewer opportunities to understand customer perspectives and improve your service accordingly. So, as counter-intuitive as this sounds, you should be working hard to encourage customers to point out deficiencies and problems with your product or service.

Give them a simple process to do this. Don’t make it onerous. Don’t send them a 20 question survey when they’ve had a one-minute interaction with your business. Sounds crazy to say it, but plenty of people do!

By encouraging feedback and making an open and blameless place to talk about it within the business, you will improve the culture and environment of your company. It’s about using complaints to train and develop, instead of to blame.

If you share mistakes openly, you can stop them happening again. It’s vitally important to encourage everyone on the team to learn from each other’s mistakes and not just their own.

If you don’t, then they won’t improve.

2. Ensure company founders do customer support

Businesses increasingly rely on auto responders and other carefully orchestrated sequences of email communications to support onboarding and winning customers.

Create more opportunities for your founders and top execs to disrupt these automated processes by manually intervening to communicate greater sincerity and authenticity—and not just with the customers who spend the most!

The objective is to help them feel confident that we will personally help them if they need us to, not purely to elicit the maximum response. We also personally work on our chat channel at least twice a week.

These initiatives have enabled us to discover a real-time intimacy with customers that we didn’t have before. We understand their perspectives better and can give the highest possible level of service.

The investment in time is not inconsiderable, but very worthwhile.

3. Publish your one-off content to the widest possible audience

When you’re focused on helping a particular customer, quite often, you produce content just for them. It may be a slide deck to help them justify your product internally, or a positioning paper providing insight to support their wider strategic needs.

This content is of immense potential value to lots of other existing customers, or even potential new ones. It’s so often just filed away and never repurposed, shared, or seen again.

It might be because you originally wrote it for a niche reason and haven’t considered expanding it out. You may also think that the content is “too valuable” to put in the public domain.

When you test these boundaries, you’ll find that they don’t exist.

Many of the pieces of content I consider niche have been our most successful.

As far as “withholding” really good content is concerned, if it makes you question whether you’re giving away too much, then surely that’s a good sign people will want to consume it? After all, that’s the whole point!

4. Be more customer-driven with changes to pricing and billing

Be very careful about making changes to billing and pricing until you’ve explored every angle of how it will impact your customers.

 

5. Don’t just respond faster—change faster

Defining minimum response times amongst customer support teams invites complacency and the misguided belief that you are delighting customers. As we’ve found through a lot of experience, it’s far better to focus on delivering real answers and support as quickly and effectively as possible.

 

Customer retention needs to be woven into your business

Becoming a customer-focused business can mean rejecting conventional wisdom like minimizing complaints and founders sitting in ivory towers, and it means being ready to change entire product development and payment processes to please even just one more customer.

The simple truth is that metrics alone can be dehumanizing, which can lead to the ultimate disaster—no longer viewing customers as people. If you do genuinely need metrics, be truly customer-centric in the ones you choose to follow.

As for treating customers like cherished pets—if you feed and water them regularly and look after them well, they will live for a very long time.

8 Reasons Why Entrepreneurs Started Their Own Businesses

When it comes to starting a business, you’ll need a driving force behind you—something more than money.

Whether that is a desire to make some small corner of the world a better place, or the feeling that you could be the one to perfect a certain product, you’ll need to hone in on that deeper motivation to be successful. Otherwise, it’s hard to keep going when times get tough.

To get a sense of what drives successful entrepreneurs to start, here are answers from some entrepreneurs from the Young Entrepreneur Council: What motivated you to start your business? Here are their starting stories.

1. I wanted to help my father

Plenty of entrepreneurs start a family business due to convenience, but Josh Fuhr of Auditrax wasn’t simply looking for an easy business opportunity. “My father’s business partners never carried their weight for the 10 years they worked together,” he explains. “At the age of 16, I had already decided to learn skills to complement him and have long-term success as his partner.”

Rather than go into business at the tender age of 16, Josh waited until he had the necessary skill set under his belt. “When I got my degree, we hit the ground running together,” he says. “We’ve had long-term success, and it feels great knowing that everyone in our family is provided for.”

2. I wanted to empower women with financial advice

“After my father suddenly passed away, I saw my mother struggle with our family finances,” says Elle Kaplan of LexION Capital, who noticed both an untapped market and segment of the population that she cared about reaching.

Elle explains: “Although she was a genius in many regards, she was overwhelmed and unprepared when she unexpectedly became the ‘CFO’ of our household.” Watching her mother negotiate the process of controlling the family finances inspired Elle to start LexION Capital, as a means to help other women in her mother’s situation. “That’s when I realized I wanted to make top-tier, honest financial advice accessible to women and their families,” she says.

3. I’ve always loved custom products

Be your own target market. It’s common advice because it works so well. After all, if there’s a product you wish you could purchase, or a pain point you know needs solving, you are in a great position to understand the market right from the outset.

In this vein, Aaron Schwartz’ love of custom products inspired him to start Modify Watches. “I’ve always been a fan of custom products,” he says. “Taking an idea and translating it into a piece of apparel that you can wear? That’s pretty darn cool.”

But Aaron wasn’t satisfied with what the industry had to offer, and thought he could do better. “For Modify, that means that we offer free design so you can translate your idea into something that actually looks good,” he explains. “It felt natural that I should share that with the world.”

4. I hated working in a cubicle

Innumerable businesses have been started as an escape from the daily clock-in, clock-out office grind, and Dave Nevogt of Hubstaff tells a similar story. “I started my career in finance with a too-long commute and a tiny cubicle,” he says. “I hated every second of it, and that’s what led me to start an online business.”

However, a simple desire to escape from cubicle nation isn’t entirely a solid enough driving factor all on its own. As with all businesses bound for success, Dave saw a problem that needed fixing. “After working with remote teams for a while, I had some difficulty managing them and keeping track of their billable hours, so that’s what inspired Hubstaff,” he explains. “Each business I started was born from some sort of personal pain point.”

5. I wanted to be my own boss

“More than anything, I wanted to be my own boss,” says Ross Resnick of Roaming Hunger. “But there are a lot of ways to do that in a service industry without creating anything particularly new.”

Rather than reinvent the wheel, Ross set out to create a product that was truly novel. “I decided that I was going to create something that didn’t yet exist, and in the process of creating a new company and useful tools for people, helped pioneer an entire burgeoning industry.”

6. I’ve always had a passion for business

Plenty of kids dabble in childhood entrepreneurship (lemonade stand, anyone?) but Zac Johnson from How to Start a Blog knew from a young age that he would start his own business.

“Even as a young kid, I always knew I wanted to be in business,” he says. “From selling trading cards and candy in school to starting my online business while in high school, it’s all been pretty amazing.”

This knack for entrepreneurship has translated well into Zac’s adult life, and he is passionate about sharing his experience and advice with others looking to start their own businesses. “Having the opportunity to work for myself and be my own boss has been amazing,” says Zac. “One of the greatest thing about having my own business is that I’ve been able to teach others how to do the same.”

7. I wanted to improve the lives of others

If you have a desire to make the world a better place, this can be a huge motivator to start a business. Ginger Jones saw a way she could personally improve her community and the world, which led her to start Jones Therapy Services.

“There were a lot of factors that led to me creating my business, but the driving force was my passion for improving people’s lives,” says Ginger. “I felt that I had the tools necessary to make change happen, and to empower others to do so as well, and I didn’t see a reason why it shouldn’t be me.”

8. I saw room for improvement

Have you ever used a product or service and thought about the ways in which you could make it more functional, more visually appealing, or just better overall? Peter Boyd, inspired by the poorly designed websites he saw every day, created PaperStreet Web Design because he believed he could do better.

“Like most entrepreneurs, I saw something ugly that could be better,” he says. “I was a lawyer and was tired of seeing bad websites every day. I also happened to love web design and was creating websites for fun anyway.”

The combination of his interest in creating a better version of an existing service, coupled with his talent for web design, resulted in a successful business venture. “The two seemed like a natural fit,” says Peter. “I could help lawyers improve their reputation online, and start my own business.”

What is your reason for wanting to start your own business—or, if you’ve already opened up shop, why did you start?

Business Loan Do’s and Don’ts

When you’re starting a business, it can seem like there are a million and one things to think about.

Top of mind for most entrepreneurs? How to finance their business.

A business loan can be a great source of capital, but it can be difficult to navigate the myriad of loan options available to business owners. Conventional bank loans, online working capital loans, and peer-to-peer loans are just a few of the types of loans that businesses are eligible for.

Fortunately, to make things easier on you, there are certain factors to look out for to make sure you’re getting the right kind of loan and aren’t overpaying. In this article, we’ll give you five pointers to keep in mind when searching for a business loan.

1. Limit the number of loans you apply for

When you’re just starting out in your search for a business loan, it can be tempting to apply for as many loans as possible in the hopes that something will stick. However, such an approach can hurt your credit score, making it harder to qualify for a loan.

Every time you apply for a business loan, the lender will check your credit. In some cases, such as when getting an initial quote, the lender will do a soft credit pull, which won’t affect your credit score.

However, when you submit a full application, the lender will do a hard credit pull. This can dent your credit score by a few points for each application. Sometimes, even getting an initial quote can trigger a hard credit pull.

The wisest approach is to first find out different lenders’ qualification criteria and apply strategically for the two or three options that you’re most likely to qualify for. Also, be sure to ask the lender about its credit check policies, so you’re not caught by surprise.

2. Understand the cost of the loan

Lenders describe the cost of a loan in different ways. Some will tell you the interest rate on the loan, and others may tell you the total amount of money you have to pay back. When lenders describe loan cost in different ways, it makes it difficult to compare your loan options.

To make comparison shopping easier, ask the lender to tell you the Annual Percentage Rate (APR) of the loan.

APR, a term you may be familiar with if you’ve bought a home or car, is the total cost of a loan over one year, including fees. The APR of a bank or SBA loan ranges from around six to nine percent. It can be much higher for alternative lenders that provide fast funding and work with lower credit borrowers.

Keep in mind that a low APR loan isn’t necessarily better than a high APR loan. Short-term loans often have high APRs, but since they are paid off quickly, you’re not paying interest for a long time. As a result, the total amount of money that you have to pay back is relatively low.

3. Be wary of prepayment penalties

While on the topic of cost, prepayment penalties can be a trap for an unwary borrower.

A prepayment penalty is a fee that a lender charges if you pay off a loan before the due date. By paying a loan off early, you reduce the amount of interest that the lender earns on the loan, so they charge a penalty. The fee is usually two to three percent of the outstanding balance of the loan, or it can be on a sliding scale, where the earlier you pay, the higher the penalty will be.

Not all loans have prepayment penalties; for example, standard SBA loans don’t have prepayment penalties. When shopping for a loan, you may also be able to negotiate the removal or reduction of a prepayment penalty. If not, read the fine print before signing the loan agreement so you understand exactly how much you will be charged for prepaying a loan.

4. Choose between a line of credit and a traditional loan

Depending on your business needs, a business line of credit may be a better option than a loan.

A loan is a fixed amount of money that you pay back with interest over a specific period of time; a line of credit is like a credit card. You get approved for a maximum amount of money that you can access as needed, and you repay it over a period of time. The advantage of a line of credit is that you only have to pay interest on the funds you use.

A line of credit is better than a loan in two main cases. If you occasionally need short-term working capital to buy inventory or cover seasonal expenses, a line of credit gives you flexibility. A line of credit also provides a nice safety net to cover unexpected business expenses. Loans typically work better when you need to finance a long-term investment, such as equipment or real estate.

5. Understand which assets are at stake if you can’t pay back the loan

Most lenders will not give a loan to a business (especially a startup) unless it’s secured by collateral, a lien, or a personal guarantee. This shouldn’t be taken lightly. Valuable personal and business assets may be at stake if you don’t pay back the loan, and you should understand what’s on the line.

Loans may be backed by specific collateral (e.g. property, equipment, inventory, and so on) or by a general lien on your business assets. When a loan is backed by specific collateral, you give the lender the right to seize that collateral if you can’t pay back the loan. If a loan is backed by a general lien, then the lender can take any or all business assets to satisfy an unpaid loan.

Even a loan with no collateral or liens may require a personal guarantee. This allows the lender to seize your personal assets, such as your home and car if you’re unable to pay back the loan.

Bottom line

There are a lot of things to consider when you are trying to obtain a business loan, and it can seem overwhelming. Following the five tips above will help you assess the basics of the loan and avoid making a big mistake, like pledging your house as collateral without understanding what that means.

Ultimately, every business is different, and every business needs financing for different reasons. With that in mind, it’s best to ask a trusted advisor and your lender all of your questions before committing to a loan.

A business loan is a big commitment, so you’ll want to cover your bases and make sure you know exactly what you’re getting and what you’re paying for it.

Is Starting A Business Your Destiny?

There is a difference between having a job and having a business. In either case, you are going to be working hard to accomplish your tasks. The key difference is that, when running your own business, you control the product that you work on, and thus the work that you are doing.

For a lot of us, the idea of starting a small business is frightening because of the risks. The job you have now might not be the best, but at least it likely feels secure. The thing is, working on your dream should be far more rewarding, right? When working hard on a task, imagine being able to work hard on something that you dream about.

Imagine your work paying off by making your dream a reality, and attaching your name to the final product. This is the advantage of working for yourself. Controlling your product means controlling your destiny. In splitting off and working for yourself, you can continue to do the work you love—and also have control over every aspect of it.

Taking a risk—will it be worth it?

Released in 2001, Halo: Combat Evolved revolutionized gaming

Released in 2001, “Halo: Combat Evolved” revolutionized gaming

A good example of a company that took this risk is Bungie, the video game studio responsible for the revolutionary “Halo” franchise. For most of the 2000’s, Bungie was the brightest star in Microsoft’s lineup. Their “Halo” franchise is one of the best selling video game series of all time, having already sold more than 50 million copies. The story within the game was later adapted to eight novels, several comic series, a graphic novel, numerous action figures, and an anime series.

The original game, “Halo: Combat Evolved,” is considered to have been a massive influence on modern first-person shooters, and the game is routinely referred to as the beginning of modern gaming. With all the success of the “Halo” series, Microsoft paid Bungie a massive contract to continue producing “Halo” games.

And, for nearly eight years, Bungie did just that.

In total, Bungie made five “Halo” games. Microsoft wanted them to continue to do so forever, but the Bungie producers were tired of being stuck in the box of just making the same product over and over. These were artists, top video game designers, that wanted to be able to make the games they wanted to work on, not just what had been selling well.

So, in 2008, Bungie went independent of Microsoft. Still Microsoft contracted them to make “Halo” games exclusively. And once again, Bungie decided they’d had enough. Despite a big contract offer from Microsoft, Bungie backed out of the “Halo” franchise and Microsoft was forced to create a new studio to continue production.

Bungie was risking a lot. Sure, they were an established name in the video gaming world, but that was because of their “Halo” franchise. Leaving that behind could potentially mean giving up millions of dollars in profits and for what? Just to try a project that would have to start from scratch in a crowded gaming lineup? You bet. The personal freedom to create the things they wanted to make was more important than any amount of money.

It meant that finally, they had an opportunity to make a game they wanted to make, and to publish on a variety of platforms—no longer were they stuck producing exclusively for Xbox. Bungie picked up Activision Blizzard to be their publisher, but, unlike their former deal with Microsoft, Bungie would own the rights to all of their franchises—Microsoft having retained the rights to “Halo.”

What happens when you decide to create something new?

So, how would Bungie, out on its own, follow up on such a successful production history for a bigger boss? The answer is “Destiny,” an open-world first-person shooter that Bungie will be releasing in September. Having already once made changes to the gaming style with the release of “Halo: Combat Evolved,” Bungie decided to push the boundaries of the shooter game again. The game has been described as a “shared-world shooter,” combining the elements of the first-person shooter with that of massively multiplayer online games (MMOs).

The game is once again Bungie trying something that is the first of its kind, making it a big risk from a company already risking plenty.

“Destiny” might be a risk, but so far it looks to be one that will pay off massively for Bungie. And how much of this has to do with their control of their product and their drive to create something they wanted to see?

The game, in its promotional demos at E3, looks absolutely gorgeous. The graphics were opened up not just on the next generation Xbox, but also on the Playstation—Bungie’s first work on the graphics-heavy console—and they look great.

Bungie left Halo for the chance to create new worlds.

Bungie left “Halo” for the chance to create new worlds.

More importantly, however, is the content that fills the impeccably-designed world of Bungie’s futuristic Earth, and Bungie is also receiving rave reviews there. The game is open beta, available to pre-order customers on the Playstation, and has achieved a whole new level of hype, with one Yahoo reviewer calling it “the best game I’ve ever played.” Consumers who accessed the beta agree, at least to a certain extent, and the game has since gone on to receive, according to video gaming site GameZone, the highest number of preorders ever for a first-game franchise title, despite a general decline in game sales in recent years.

While leaving behind a secure job for an unknown future is a risk, you do not advance without taking those risks, regardless of the field or industry you are in.

Assistant coaches become head coaches who become fired head coaches. Music video directors step into the Hollywood spotlight and direct blockbuster bombs. Video game designers decide they want to do more than create worlds for other people, and their games don’t sell.

But, all of those failures don’t mean there aren’t success stories. Bungie’s employees stepped away not just from secure jobs, but jobs that involved making one of the top-selling video game series of all time. They could have been asking, ‘how do we compete with our own legacy?’. Instead, they took a risk and it appears it’s going to pay off.

Have faith in yourself and pursue your ideas relentlessly.

Taking control of your destiny

That’s the part that is important. It’s a cliche, but “choose a job you love, and you’ll never work a day in your life.” I can’t tell you that working for yourself is better than working for others—perhaps you would rather have a secure job, doing something you know will succeed – but what I can tell you is that if you have a desire to create the things you imagine, your desire to do this will never die and you will never truly be happy working for someone else.

I want to shape everything—were I a game designer, I would not want to only color the world, I would want to create it. I would want to tell its history, and the history of the characters within it. I would want to decide what sort of world it was, and what sort of adventure it held within its atmosphere. Not have it dictated to me.

I am just as excited as anybody else when my paycheck comes, perhaps more than most as a cash-strapped college kid, but I believe it’s far more important to follow your passion than follow the paychecks.

If you are like me, or like the proud people at Bungie, you want the control to shape your product, and the pride that comes with knowing you are fully responsible for the success it brings. We gamers have been talking about “Halo” for over a decade now. Perhaps, a decade from this article, we will be talking about “Destiny” in the same way.

You could do the same thing for your field. You are capable, and you have ideas—and the world needs new ideas. You don’t have to start a small business to have passion for your job, but imagine the passion of creating something all your own. For Bungie, their own company led to “Destiny.” Imagine what your destiny could be if you ran the show.

 

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