It’s understandable to want to focus a marketing campaign on the strengths and benefits of the products or services in question. However, something that’s easy to overlook is how your business and its offerings differ from the competition. Competitive intelligence is the process of legally and ethically gathering and analyzing information on your competitors.
Making this distinction isn’t as simple as, “We’re better because we say so.” When you can present prospective customers with accurate data and solid reasoning behind why your products or services will fulfill their needs better than other options, you’ll stand a much better chance of turning those marketing dollars into revenue. This is where competitive intelligence comes into play.
Competitive Intelligence can help you collect valuable data on their:
This information enables you to not only recognize your competitors’ strengths and weaknesses but also better identify and anticipate market trends. As a result, your marketing campaign should emphasize what customers need, how you can deliver it, and where the competition falls short.
Gleaning intelligence is relatively simple. At the most basic human level, chatting with customers and prospects, bank reps, financial services providers, and other business contacts can help keep you in the know about what’s going on in the marketplace. You might encounter these individuals in the regular course of business or seek them out at trade shows, conferences, and networking events.
Relying on fortuitous conversations alone won’t get the job done, however. You (or an employee) will need to gather information regularly. Scan major news providers — as well as relevant business publications — for updates on your competition or industry in general. Your competitors’ brochures, catalogs, press releases, annual reports, and other collateral also contain valuable information. And, of course, don’t forget to regularly visit their websites and blog and their public social media accounts.
In addition, there are a variety of powerful search engines and online resources that can boost competitive intelligence efforts — though some do charge for a subscription. For example, Dun & Bradstreet offers industry, market, and company-specific intelligence for both public and private businesses. The Securities and Exchange Commission (sec.gov) provides free financial reports on public companies.
Be sure to fact-check and verify any information you find. Inaccurate data can skew your observations, negatively affect your business decisions and hurt your reputation in the marketplace.
To succeed at marketing today, you need to make a strong case based on accurate and timely data relevant to your company’s purpose or industry. Competitive intelligence can help you find this information and integrate it into marketing campaigns. Contact our firm for help evaluating your marketing efforts from a return-on-investment perspective.
A marketing campaign should focus on the strengths and benefits of the products or services in question. But don’t overlook pointing out how your offerings are superior to those of competitors. That’s where competitive intelligence comes in. Competitive intelligence is the process of legally and ethically gathering and analyzing information about competitors. This includes their financial positions, business practices, and products and services. To gather such data, you can actively network, scan news sources, visit competitors’ websites and social media pages, and collect collateral such as sales brochures and annual reports. The end result: a more fine-tuned marketing message.
Business owners, you can sharpen your marketing efforts through the effective use of competitive intelligence. If you have any questions be sure to contact us!
Run a business for any length of time, and the importance of cash flow becomes abundantly clear. When payroll is due, bills are piling up, and funds aren’t available, blood pressure tends to rise. For this reason, being able to forecast cash flow accurately is critical. Here are four ways to refine your approach:
Many businesses are cyclical, and their cash flow needs vary by month or season. Trouble can arise when an annual budget doesn’t reflect, for example, three months of peak production in the summer to fill holiday orders followed by a return to normal production in the fall.
For seasonal operations — such as homebuilders, farms, landscaping companies, and recreational facilities — using a one-size-fits-all approach can throw budgets off, sometimes drastically. To forecast your company’s cash flow needs and refine accordingly, track your peak sales and production times over as long a period as possible.
Effective cash flow management requires anticipating and capturing every expense and incoming payment, as well as — to the extent possible — the exact timing of each payable and receivable. But pinpointing exact costs and expenditures for every day of the week can be challenging.
Businesses can face an array of additional costs, overruns, and payment delays. Although inventorying every possible expense can be tedious and time-consuming, doing so can help avoid problems down the road.
As your business expands or contracts, a dedicated line of credit with a bank can help you meet cash flow needs, including any periodic shortages. Interest rates on these credit lines can be high compared to other types of loans. So, lines of credit typically are used to cover only short-term operational costs, such as payroll and supplies. They also may require significant collateral and personal guarantees from the company’s owners.
Of course, a line of credit isn’t your only outside funding option. Federally funded small business loans have been offered during the COVID-19 pandemic. These loans may still be available to you. Look into these and other options suitable to the size and needs of your company.
For many businesses, the biggest cash flow obstacle is slow collections. Be sure you’re invoicing promptly and offering easy, convenient ways for customers to pay (such as online). For new customers, perform a thorough credit check to avoid delayed payments and bad debts.
Another common obstacle is poor resource management. Redundant machinery, misguided investments, and oversized offices are just a few examples of poorly managed expenses and overhead that can negatively affect cash flow. For help reducing expenses and more effectively forecasting cash flow, please contact us.
For business owners, being able to accurately forecast cash flow is a mission-critical activity. Fortunately, there are ways to refine your approach. First, track your peak sales and production times over as long a period as possible. Know your busy season! Also, engage in careful accounting to anticipate and capture every expense and incoming payment. Note the timing of cash inflows and outflows as well. Keep a careful eye on additional funding sources, such as a line of credit or federally funded small business loan (if you qualify). Above all, stay on top of collections and always be on the lookout for ways to run leaner. Contact us for help with cash-flow forecasting and check out our Facebook Page.
Everyone loves a story. It’s why movies are still big business and many of us spend hours on the couch binge-watching our favorite television shows. What’s important to keep in mind — and to remind your sales team — is that effective storytelling can also drive sales.
This doesn’t mean devising fanciful, fictional tales to entice customers and prospects into buying. Rather, it involves learning the customer or prospect’s story, putting it into words, and then demonstrating how your company’s products or services can add a happy chapter to the tale. Think of it as a three-act play:
Act I: Set the scene. Building rapport is key in sales. Find out from your sales manager(s) how much time sales staffers are spending with customers and prospects. Ensure they’re not rushing through initial contact. Salespeople should take the time to provide a concise overview of your business, telling its story and emphasizing its capabilities.
Act II: Build the plot. Salespeople should generally ask a series of prepared questions that prompt responses outlining the customer or prospect’s needs and goals. The potential buyer should do most of the talking. The more that salespeople listen, the better chance they’ll have in identifying and filling out the plot of the customer’s story and, one hopes, making the sale.
At this point, the sales staffer also wants to uncover any objections the customer or prospect might have about doing business with your company. These “subplots” can often go overlooked and ultimately ruin the ending of the story for you.
Act III: Resolve the problem. The final scene should be a climactic one. The salesperson needs to summarize the customer or prospect’s story — identifying the key needs revealed by the questions asked. Then, the sales staffer must present a viable solution to meeting those needs and emphasize your company’s ability to efficiently fulfill the products ordered or provide the necessary service(s).
When executed properly, the three acts above should increase the odds for an encore (or a sequel, as the case may be). Buyers who know that your business understands their story will be more likely to become return customers.
Although using storytelling as a sales tool may seem simplistic, it’s a tool that needs sharpening from time to time. We can help you evaluate your sales process from a financial perspective so you can implement changes as necessary.
Effective storytelling can drive sales. That doesn’t mean devising fanciful tales to entice customers. Rather, it typically involves learning the customer’s story, putting it into words, and demonstrating how your products or services can add a happy chapter to the tale. Think of it as a three-act play. First, set the scene. Sales staffers should take the time to provide a concise overview of your business. Second, build the plot. Salespeople need to ask insightful questions to learn the details of the customer’s story. Finally, resolve the problem. The salesperson needs to retell the customer’s story and present a viable solution to the needs identified.
In Notice 2021-46, the IRS recently issued additional guidance on the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA).
Under the ARPA, a 100% COBRA premium subsidy and additional COBRA enrollment rights are available to certain assistance eligible individuals (AEIs) during the period beginning on April 1, 2021, and ending on September 30, 2021 (the Subsidy Period).
If your business is required to offer COBRA coverage, it’s important to mind the details of the subsidies and a related tax credit. Here are some highlights of the additional guidance:
An AEI whose original qualifying event was a reduction of hours or involuntary termination is generally eligible for the subsidy to the extent the extended COBRA coverage falls within the Subsidy Period. The AEI must be entitled to the extended coverage because of a:
This is true if the AEI didn’t notify the plan to elect extended COBRA coverage before the start of the Subsidy Period. For example, because of the Outbreak Period deadline extensions.
The subsidy ends when an AEI becomes eligible for coverage under any other disqualifying group health plan coverage or Medicare — even if the other coverage doesn’t include the same benefits provided by the previously elected COBRA coverage.
For example, though Medicare generally doesn’t provide vision or dental coverage, the subsidy for an AEI’s dental-only or vision-only COBRA coverage ends if the AEI becomes eligible for Medicare.
A state program that provides continuation coverage comparable to federal COBRA qualifies AEIs for the subsidy even if the state program covers only a subset of state residents (such as employees of a state or local government unit).
Under most circumstances, an AEI’s current or former common-law employer (depending on whether the AEI had a reduction of hours or involuntary termination) is the entity that’s eligible to claim the tax credit for providing the subsidy. If a plan (other than a multiemployer plan) covers employees of two or more controlled group members, each common-law employer in the group is entitled to claim the credit with respect to its current or former employees.
Guidance on claiming the credit is also provided for Multiple Employer Welfare Arrangements, state employers, entities undergoing business reorganizations, plans that are subject to both federal COBRA and state mini-COBRA, and plans offered through a Small Business Health Options Program.
The ARPA’s COBRA provisions have been in effect for a while now, so your company likely already has procedures in place to provide the subsidy to AEIs and claim the corresponding tax credit. Nevertheless, this guide offers helpful clarifications. Contact our firm for more information.
Recently, in Notice 2021-46, the IRS issued additional guidance on the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA). Under the ARPA, a 100% COBRA premium subsidy and additional enrollment rights are available to certain assistance eligible individuals (AEIs) during the period beginning on April 1, 2021, and ending on September 30, 2021. The guidance provides helpful details on matters such as the extended coverage period, the end of an AEI’s subsidy period, and comparable state continuation coverage. The guidance also addresses how businesses and other employers can claim a tax credit related to the COBRA subsidies. Contact us for more information.
Many businesses are spending more time and resources on supporting the well-being of their employees. This includes recognizing and addressing issues related to diversity, equity, and inclusion (DEI).
A thoughtfully designed DEI program can do more than just head off potential conflicts and disruptions among coworkers; it can help you attract good job candidates, retain your best employees and create a more engaged, productive workforce.
Essentially, DEI programs are formal efforts to help employees better understand, accept and appreciate differences among everyone on staff. Differences addressed typically include race, ethnicity, gender identification, age, religion, disabilities, and sexual orientation. They may also include education, personality types, skill sets, and life experiences. A program can comprise training courses, seminars, guest speakers, group discussions, and social events.
Strategic objectives may vary depending on the business. Some companies wish to improve collaboration and productivity within or among teams, departments, or business units. Others are looking to attract more diverse job candidates. And still, others want to connect with growing multicultural markets that don’t necessarily respond to “traditional” messaging.
Think of implementing a DEI program as an investment. It should include specific goals and achievable, measurable returns.
Many DEI programs fail because of a lack of consensus regarding their value or faulty design. Begin with executive buy-in. Successful programs start with the support of ownership and senior leadership. If they’re not committed to the program, it probably won’t last long (if it gets off the ground at all). Typically, a champion will need to build the case of why a DEI program is needed and explain how it will positively impact the organization.
You’ll also need to assemble the right team. Form a DEI committee to identify objectives and give the program its initial size and shape. If you happen to employ someone who has been involved in launching a DEI program in the past, learn all you can from that employee’s experience. Otherwise, encourage your team to research successful and unsuccessful programs. You might even engage a consultant who specializes in the field.
For clarity and consistency, put your DEI program in writing. The committee needs to develop clear language spelling out each goal. The objectives can then be reviewed, discussed, and revised. Ensure the objectives support your strategic plan and that you can accurately measure progress toward each. Don’t launch the program until you’re confident it will improve your organization, not distract it.
Events of the last year have led most businesses to reconsider the size, composition, and operational approach of their workforces. In many industries, DEI awareness and training is playing an important role in this reckoning. We’d be happy to help you assess the costs and feasibility of a program for your business.
Many businesses are spending more time and resources addressing issues related to diversity, equity, and inclusion (DEI). Thoughtfully designed DEI programs seek to help employees better understand, accept, and appreciate differences among everyone on staff. A program can include training courses, seminars, guest speakers, group discussions, and social events. If you decide to implement one, identify specific strategic goals and achievable, measurable returns. Ensure you have leadership’s full support, assemble a committee of qualified employees to design the DEI program, and put everything in writing. Contact us for help assessing the costs and feasibility.
The COVID-19 pandemic has dramatically affected the way people interact and do business. Even before the crisis, there was a trend toward more digital interactions in sales. Many experts predicted that companies’ experiences during the pandemic would accelerate this trend, and that seems to be coming to pass.
As this transformation continues, your business should review its remote selling processes and regularly consider adjustments to adapt to the “new normal” and stay ahead of the competition.
How can you maximize the tough lessons of 2020 and beyond? Here are three tips for keeping your remote sales operations sharp:
Remote sales can seemingly make it possible to sell to anyone, anywhere, anytime. Yet trying to do so can be overwhelming and lead you astray. Choose your sales targets carefully. For example, it’s typically far easier to sell to existing customers with whom you have an established relationship or to prospects that you’ve thoroughly researched.
In the current environment, it’s even more critical to really know your customers and prospects. Determine whether and how their buying capacity and needs have changed because of the pandemic and resulting economic changes — and adjust your sales strategies accordingly.
For remote selling to be effective, it needs to work seamlessly and intuitively for you and your customers or prospects. You also must recognize technology’s limitations.
Even with the latest solutions, salespeople may be unable to pick up on body language and other visual cues that are more readily apparent in a face-to-face meeting. That’s why you shouldn’t forego in-person sales calls if safe and feasible — particularly when it comes to closing a big deal.
In addition to video, other types of technology can enhance or support the sales process. For instance, software platforms that enable you to create customized, interactive, visually appealing presentations can help your sales staff meet some of the challenges of remote interactions. In addition, salespeople can use brandable “microsites” to:
Also, because different customers have different preferences, it’s a good idea to offer a variety of communication platforms — such as email, messaging apps, videoconferencing, and live chat.
Customers increasingly prefer the convenience and comfort of self-service and digital interactions. So, businesses need to ensure that customers’ experiences during these interactions are positive. This requires maintaining an attractive, easily navigable website and perhaps even offering a convenient, intuitive mobile app.
The lasting impact of the pandemic isn’t yet clear, but remote sales will likely continue to play an important role in the revenue-building efforts of many companies. We can help you assess the costs of your technology and determine whether you’re getting a solid return on investment.
Many experts predicted that companies’ experiences during the COVID-19 pandemic would accelerate the existing trend toward more digital sales interactions. Indeed, this seems to be coming to pass. Here are three tips for keeping your remote sales activities sharp in the new normal: 1) Focus on targeted sales to existing customers and well-researched prospects. 2) Leverage the most up-to-date, well-suited technology tools, but don’t forego in-person sales calls were safe and feasible. 3) Create an outstanding digital experience that includes an easily navigable website and perhaps even a convenient mobile app. Contact us for help managing your technology costs.
Starting a new business is an exciting venture, but with so many business structures, deciding the legal structure of your company can seem overwhelming. Will it be a sole proprietorship? A corporation? Is it an LLC?
Trying to figure out the various business legal structures can seem complex. However, the experts at David Mills, CPA, LLC have the experience and knowledge to provide expert advice and guidance.
The Internal Revenue Service (IRS) says there are five primary types of business structures. Which one you chose will affect which income tax return form you have to file.
The five most common business legal structures are:
In a sole proprietorship, the individual who owns the business is an unincorporated business by themselves.
This type of business structure is sometimes known as the sole trader, individual entrepreneurship or proprietorship. There is no legal distinction between the owner and the business entity.
According to the U.S. Small Business Administration, a sole proprietorship is “the simplest and most common structure chosen to start a business.”
A partnership is when two or more individuals join together to create a business. According to the IRS, in a partnership “each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.”
Within a partnership, there are two common types: limited partnerships (LP) and limited liability partnerships (LLP).
The U.S. Small Business Administration notes a limited partnership has one partner with unlimited liability and all others with limited liability.
In a limited partnership, the partners with limited liability tend to have limited control over the company. Profits are passed through to personal tax returns, and the general partner — the partner without limited liability — must also pay self-employment taxes.
A limited liability partnership (LLP) gives limited liability to every owner. This structure protects each partner from debts against the partnership.
When a corporation is formed, prospective shareholders exchange money, property or both, for the corporation’s capital stock.
Sometimes called a “C-corp” a corporation is a legal entity separate from its owners.
The Small Business Administration notes corporations offer “the strongest protection to its owners from personal liability” but “the cost to form a corporation is higher than other structures.”
Operating a corporation requires more extensive record-keeping and reporting.
The IRS says S Corporations “are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.”
Becoming an S Corporation requires a business to meet certain qualifications including being a domestic corporation and having no more than 100 shareholders.
Businesses must file with the IRS to earn S Corporation status.
A limited liability company, more commonly referred to as an “LLC” combines the advantages of both the corporation and partnership business structures.
An LLC can protect an individual from personal liability in most instances.
Owners of an LLC are known as “members” and the members can be individuals, corporations, other LLCs or foreign entities. Most states, including Illinois, permit “single-member” LLCs, in which there is only one owner.
The professionals at David Mills, CPA, LLC, have offices in both Morton and East Peoria. They work with business clients in the Tri-County (Peoria, Woodford and Tazewell) area as well as beyond.
When establishing a business, contact David Mills, CPA, LLC to ensure the legal entity you select best matches your professional goals.