It’s no secret that employee morale is important to the overall success of a business. A positive and healthy work atmosphere is not only more pleasant, but also can have a direct effect on performance, productivity, and ultimately on your business bottom line.

There are many reasons why good employee morale is important in the business context: First, it can help improve employee retention and reduce turnover levels. This is especially important in industry sectors or geographic areas where there are talent shortages. Linked to this, good morale has been linked to lower absenteeism levels. Third, these two factors have a direct impact on business performance and productivity, which is especially noticeable in small businesses. And fourth, high morale does impact customer satisfaction and helps build a stronger business reputation.

Many firms offer financial rewards to boost employee morale, but does this approach always work? The problem with financial incentives like stock options and annual bonuses is that they fail to generate genuine interest and engagement in work. Employees can be fairly compensated and still feel disengaged. This is not to say financial rewards should be scrapped, but rather complemented with other ways of boosting staff morale, such as the ones described below.

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Although all entrepreneurs have their own recipe for success, there is one element that seems to be common to all prosperous business ventures. That element is constant innovation, and in this article we are going to describe the reasons why constant innovation is a pre-condition to success, along with some examples that attest to that fact.

Old Problems Require New Solutions

Einstein’s famous phrase “we can’t solve problems by using the same kind of thinking we used when we created them” sums up one of the main reasons behind the need for constant innovation. The concept of innovation itself is closely linked to problem solving, and for many successful entrepreneurs, they are in fact one and the same. It must be noted that in the business world, the link between innovation and problem solving can be seen in practice at four different levels:

- Problem or challenge solving

- Problem prevention or risk management

- Continuous improvement or incremental innovation, and

- Future creation or the development of solutions that represent a breakthrough

In all instances, only business owners who engage their visionary ability with a focus on constant innovation are the most likely to survive in a sea of ever-increasing competition.

A Constantly Evolving World Read more »

The importance of reputation is such that a business and its stature are often indistinguishable. Companies of all sizes have paid a high price for failing to manage their reputation: from the Royal Bank of Scotland (which lost more than £5m due to reputation mismanagement) to recent incidents with United Airlines, which costed the company $1.4bn in the stock market, it is clear that a building and maintaining flawless reputation is essential to business success.

Reputation building is a complex process that takes time, but can cover your bases by working on five of the most important things you can do to build a fine business reputation.

1. Develop a Sense of Community

No business can survive in isolation. This is especially true in the digital era, where interconnectedness and a sense of community are strong drivers of growth and success. For business owners looking to build a great reputation, this means you must do things in the community and for the community. This could include everything from attending networking events relevant to your sector to getting your name out into the local community by sponsoring sports or charitable events.

2. Get the Press on Your Side

A positive relationship with the media will give your business more exposure. To achieve this, you will have to find out which journalists have a special interest in your field and be proactive when contacting them, having a wealth of material and engaging information ready. You can start with local newspapers or radio stations, write relevant press releases when your company reaches a significant milestone, or share positive stories about your business and its involvement with the local community. Read more »

For the vast majority of business owners, attending professional networking events is an integral aspect of business management. The benefits of business networking are well established and include increased opportunities to acquire new clients, enter new markets, make valuable business connections, and generate sales leads and referrals. But despite the clear advantages, many business owners have a love-hate relationship with networking. And believe it or not, it is not only introverts who have a hard time mingling and socialising at this type of event.

If this sounds familiar, you will find it useful to read the following five pieces of advice on how to get the most out of networking events.

1. Don’t Anticipate What May Happen

It is human nature to show uneasiness about uncertainty, and in all honesty, networking events are surrounded by a great deal of unpredictability. Trying to anticipate or predict what will happen is a common coping mechanism, but it is not always the best strategy. Worrying excessively about hypothetical situations only causes increased anxiety levels and can stop you from acting naturally and spontaneously when you need it the most. Instead of becoming stressed by assuming that you will make a faux pas, remember that other attendees will also feel nervous or uncomfortable at the event. Just be yourself and admit that you are not the best at networking – this can help you find common ground with other participants!.

2. Be Selective

Business networking is about quality, not quantity. Do some research in advance and if possible try to find out who else will be attending. Once you have a few names, think about who you’d really like to meet and why. The key is to avoid trawling the room, trying to approach everyone, or handing business cards indiscriminately, but rather to focus on making a meaningful connection with a few select people. This should ease your anxiety and help you make networking beneficial for your business.

3. The Art Of Conversation

Much to the dismay of introverts, successful networking involves making conversation with strangers. It is normal to worry about not having anything to talk about, but finding a subject of conversation is not as difficult as you may imagine. Most psychologists agree that the trick is to get other people to talk about themselves, so there is no need to come up with a long list of potential conversation topics. As you encourage other attendees to tell you more about themselves and their work and show appreciation for it, revealing more information about yourself will become second nature. If you’re still struggling to strike a conversation, have a look at this list of effective conversation starters.

4. Watch Out For Body Language

When it comes to human relationships, unspoken signals are just as important as the things we say. Always make sure you have a positive body language that encourages trust: don’t cross your arms or hold them behind your back, avoid holding plates, glasses or other objects as “barriers” between you and others, don’t stand with your back to the group, and make sure your feet point towards the people you are talking to.

5. Follow Up

Often, the success of a networking event cannot be determined until it is over. The event itself is only the starting point of a potential business relationship, which means you must work on cultivating any connections you made with a follow-up email, phone call, or LinkedIn invite. Ideally, you want to get in touch within a week of the event, and your follow-up message should always be personalised and specific.

A last piece of advice: few people are natural-born networkers, so remember that it takes time to feel comfortable at these events and to learn how to make the most out of them. By using the tips listed above, you will be on your way to reaping the full benefits of networking events and turning them into fruitful business opportunities.

Sources:

(1) https://hbr.org/2016/09/when-networking-being-yourself-really-does-work

(2) https://www.forbes.com/sites/glassheel/2012/07/24/4-ways-to-ace-your-next-networking-event/#5b1ddc1c6742

(3) https://www.theguardian.com/small-business-network/2017/jan/23/psychologists-guide-networking-events-advice

(4) https://www.forbes.com/sites/carolkinseygoman/2015/04/23/body-language-secrets-for-people-like-me-who-hate-networking/2/#165145fa1231

(5) http://www.verticalresponse.com/blog/8-dos-and-donts-of-networking-follow-up/

Avoiding business failure is a top priority among entrepreneurs and business owners, irrespective of experience levels or how long their company has been established. However, business failure statistics in the US have barely changed over the past few decades. According to a recent Business Employment Dynamics report compiled by the Bureau of Labor Statistics, approximately 80 percent of new businesses make it during their first year. However, failure rates increase sharply and reach 50 percent at the end of the first five-year period, and after 10 years, only 30 percent of businesses are still operational.

These figures have remained remarkably unchanged over the years, which suggests that the root causes of failure are not being addressed consistently and systematically. Here are five important lessons that can be learnt from business failure.

1. The Importance of Research

Half of all businesses that fail discontinue operations because of lack of profits or financial funding. Other reasons behind failure include relying on an inadequate team, poor planning, limited or insufficient product offer, pricing issues, bad location, and poor product timing and marketing strategies. This suggests that research is essential and that it needs to be ongoing and cover more than just product development, funding, or marketing. Valuable data and information are now easily available online, so there really is no reason to overlook this factor.

2. Never Lose Focus

A Business Employment Dynamics report noted that 13 percent of businesses failed because their founders lost focus, and a further 9 percent did so due to a lack of passion. Many expert advisors and motivational speakers claim that focus is the most important factor in business success, and they recommend to regularly ask questions that will help clarify business direction and help bring projects and strategies into focus. Questions should address issues like the specific behavior you want to drive, the reasons you are doing what you are doing, the steps taking to drive your business further, and whether those steps are coherent with your mission and values. Read more »

The state of Texas has the second largest GDP in the United States, and at $1.6 trillion it accounts for nearly 9 percent of the US total. A Forbes report listed the Lone Star state in fourth place along a number of crucial rankings, including Best Place for Business and Best in Business Costs. Other key metrics like business density, start-up activity, and business survival rates are also among the top 5 of all 50 states. More importantly, the state is known for its favorable tax climate, which ranked 10^th in the 2016 State Business Tax Climate Index. Overall Texas spends a total of $19b per year on incentive schemes, of which $743 million are devoted to corporate rebates or reduction programs, such as the ones listed below.

Enterprise Zone Program

This program was created to promote job creation and attract private investment in designated distressed counties. The program offers businesses involved in qualifying projects a sales tax refund whose amount depends on capital investment and the number of jobs created. Total refunds go from $25,000 up to a maximum of $3.75 million.

Texas Enterprise Fund

This Fund was created in 2004 to favor the creation of high paying jobs and to promote Texas as a top destination for business. The incentive involves the award of a cash grant whose specific dollar amount varies depending on scope of the project, but can go anywhere from $194,000 to $50 million. So far, cash grants have been awarded to businesses of all sizes and sectors, from JPMorgan Chase to Tyson Foods, Jamba Juice, and Petco.

Data Center Exemption

Under this incentive scheme, exemptions are applied to use and state sale taxes (which amount to 6.25 percent) for the purchase of cooling and or electrical systems, electricity, hardware, software, peripherals, emergency generators, and any other equipment needed to operate personal property within the building. To qualify, data centers must employ a minimum of 20 people and make an initial capital investment of $200 million. Read more »

Productivity remains a thorny issue in many US workplaces. With the exception of the 1995-2003 period, annual productivity rates have declined by 36 percent since the late 1940′s, going from 2.2 percent to the current rate of 1.4 percent. Some years, productivity rate increases can be as low as 0.8 percent, a figure that has led many to affirm that America has a productivity problem. Low productivity has far-reaching repercussions, going from diminished economic output to a slow increase in living standards. So what can US employers do to improve productivity in the workplace?

In the first place, it is important to understand that productivity growth is closely linked to worker output (whether this output is measured on an hourly basis or otherwise). This means that identifying the reasons behind low employee productivity is a crucial step when it comes to defining a productivity strategy. To that end, business owners should critically assess how their company is performing along the following dimensions:

Resources

Inadequate resources are one of the main causes behind low workplace productivity. When staff lack resources to do their job, their performance is unsatisfactory and their stress levels are high, and these factors will eventually lead to dissatisfaction, frustration, and employee burnout.

It is worth noting that resources can be tangible (equipment, technology) and intangible (training, systems, and procedures). On this note, most modern businesses can benefit from investing in technological resources that automate processes and therefore liberate employees from having to perform redundant and unnecessarily time-consuming tasks.

Training

No matter how many resources you may put at the disposal of your employees, if they lack training their productivity will be severely affected. Adequate training helps staff make efficient use of the resources available, bolsters their confidence, and strengthens their motivation to get the job well done. Read more »

Although entrepreneurship is at the heart of the US economy, business fail rates seem to be increasing and are currently 30 percent higher than they were in the late 1970s. There are other figures that confirm this trend: the latest US census shows that the annual business creation / business fail ratio is 400,000 / 470,000; and according to the Bureau of Labor Statistics, only half of all new businesses survive their initial 5 years, whereas the 10-year survival rate is even lower at 33 percent.

In this article we offer seven tips that can help US entrepreneurs launch a successful business.

1. Focus on strategic planning

Many entrepreneurs fall into the trap of investing most of their time and resources into planning and running successful operations. However, concentrating all efforts on the day-to-day running of a business often leads to missing the forest for the trees. To avoid that, you should ensure business strategy (whereby mid and long-term goals and action plans are defined) is a top priority and underpins all business operations.

2. Create and nurture an organizational culture

When it comes to achieving long-term business success, a strong organizational culture is as important as strategic planning. Contrary to popular belief, organizational culture is not the exclusive prerogative of large firms, as it also plays a key role in the success of small businesses by permeating every aspect of their operations with motivating values and a compelling mission.

3. Look after existing customers

Although this may seem an obvious suggestion, the truth is that many new businesses tend to focus their efforts on acquiring new clients, and sometimes do so at the expense of existing ones. A 2015 Customer Experience Index revealed that as few as 1 percent of all US companies deliver customer service that is rated as excellent, therefore missing an opportunity to turn existing customers into loyal advocates who generate new leads on their behalf.

4. Build a winning team

To put it simply: your team should be as strong as your overall business plan. Team building should be done in the initial stages of a business operation instead of as an afterthought. Moreover, it should guide the recruiting process to ensure that the personalities and skill set of team members are a perfect match to the company’s organizational culture. Don’t limit yourself to recruiting staff who have the right experience, but also look for those who enthusiastically share your vision and believe in your business concept. Read more »

In honour of International Women’s Day we would like to celebrate the great strides women have made in the business world. Across the UK, successful female entrepreneurs are making headlines for the role they play in transforming their respective industry sectors. Names like Alice Hall, Brynne Hebert, or Rachel Bell are often used as examples of the transformational current that has been sweeping the business world for a while. However, the fact remains that the entrepreneurial scene is largely dominated by men. According to a Centre for Entrepreneurs report, only 19 per cent of successful serial entrepreneurs are female, despite fact that women account for over 50 per cent of the country’s population. But how exactly is the female entrepreneurial scene changing, and what can we expect in the near future?

Female Entrepreneurs: Signs of Change

The UK’s female entrepreneurship scene has changed along five main dimensions:

- Higher participation in labour market that has nevertheless not been matched by higher entrepreneurial rates.

- Entrepreneurial activity is twice as likely among men, but things have been improving in favour of female entrepreneurs since 2001. Currently, entrepreneurial activity rates are 4.7 per cent for female’s vs 9.5 per cent for males.

- Female-led businesses experience higher churn rates and the female share of business ownership has not changed significantly since the mid 1990s.

- Female entrepreneurs are more likely to be involved in management consultancy services, events organising, and PR, although the number of female-led ventures involving technology, science and engineering is on the rise.

- An increase in the number of female-led firms that make a significant contribution to the local economy. For instance, the sales volume generated by female-led mid-sized firms has increased by more than £2bn in just 12 months.

Challenges and Solutions

The key challenges affecting female entrepreneurs relate to support, funding, mentoring, training and skills development, work-life balance, and access to new markets. Over the last decade, several initiatives have been launched to address these issues. Examples of policy initiatives created to increase the relatively low numbers of female entrepreneurs across the UK include:

- The establishment of the National Association for the Promotion of Women’s Enterprise (2002)

- The Women’s Business Council (2012) Read more »

The notion of corporate culture and its impact on the business world have been discussed since the 1980s, but despite its popularity among businesspeople and academics, the concept remains hard to define given its abstract character.

Corporate culture could be defined as the set of behaviours, beliefs, corporate strategies, attitudes, practices, processes, and standards shared by members of an organisation. It could be said that corporate culture is “the way things are done” within an organisation, usually as a reflection of the company’s mission, vision, and values. Corporate culture may even be embodied in a logo, but often goes beyond that and encompasses staff and executives’ feelings, expectations, and thought processes.

However, some are sceptical about the role that corporate culture plays in organisations, claiming that it can be double-edged sword used as a control mechanism to stifle individuality. This begs the question “Is corporate culture still relevant today?”

The answer is yes, for two main reasons:

1- Corporate culture evolves over time as a result of the cumulative actions and characteristics of the individuals that make up a company, building on the company’s history and developing as a reflection of the company’s identity. This means it cannot simply fade in the background, as it will always remain a crucial part of a business raison d’etre. Moreover, a well-defined organisational culture can help build a stronger brand image and reinforce the idea that a company is committed to high quality standards that are coherent with its identity.

2- Corporate culture plays a key role in a company’s success. A 2015 survey showed that more than more than 50% of  top executives believed corporate culture had a direct effect on productivity, growth, value, and profitability. Improved staff morale and retention are typically higher in businesses with a healthy culture. In the UK, the 2016 Great Place To Work report highlighted how workplaces with a strong corporate culture score higher in terms of employee well-being, since in these companies there are clear strategies in place to ensure the working environment is conducive to satisfaction and productivity. Read more »