“Business as usual” often results in little business in the future.
“Business as usual” often results in little business in the future.
Most small and mid-market manufacturers understand the value of an online presence, but they are facing other challenges in their respective industries just to stay competitive. Many are experiencing gross margins being driven down due to the lack of a skilled workforce and raw material pricing increases. Operating expenses are also rising as businesses spend time and resources in product development and innovation to stay cutting edge in their industry. This, combined with ever-increasing regulations and compliance issues, often pulls focus toward daily operations and does not allow forward planning.
Selling “in-demand” products is no longer enough. Customers are demanding more and to meet those customer demands, it is vital to first anticipate their needs and second, to make doing business with you easier than doing business with anyone else. Finding creative ways to take work off of your customer and offering them something they can not get elsewhere is a good way to ensure they keep coming back.
As a smaller or mid-size manufacturer facing these challenges, you may not have the infrastructure to optimize your online strategy around customer engagement. Turn that challenge into an advantage!
Larger enterprises are often slow to move and are tied up with enterprise IT systems which require much more planning to make changes. Robust, often turn-key technology solutions are now available to the SMB market at a 10th of the costs of enterprise systems. In addition, proven tactics and best practices in improving the customer experience and leveraging the internet to better engage your customers exist and can be easily implemented. All you may be missing is the know-how and diverse skill set to capitalize on these lower cost solutions and proven best practices.
At a much lower cost than hiring a full in-house team of diverse resources, hiring an eCommerce managed services firm gives you the best of both worlds. eCommerce platforms require constant updating and improving as your business grows and your needs change. Outsourcing your eCommerce efforts allows you to focus on your core business and on growing your revenue rather than investing your company’s time, money and resources into building and maintaining an ecommerce platform.
1. Executive level sponsorship: As a small or mid-sized manufacturer, you can not afford to delegate this to a staff member or manager to oversee. A successful engagement requires that your managed services firm understands the vision of your company. Knowing the strategic plan allows them to envision how to leverage the online channel to push your company’s vision and strategic initiatives forward.
The relationship with your managed service firm should not be viewed as a ‘staff augmentation,’ but rather as a partnership. Understanding online best practices often results in an out-of-the-box conversation to give your company a competitive advantage. A ‘just go do what I say’ approach is a waste of your investment and frankly a partnership any good managed service firm will not want.
2. Configurable options: Every company has different levels of technical or business expertise and a good managed services engagement will account for those skill sets already present within your company. From one end of the spectrum – a fractional eCommerce executive that participates in executive level, to the other end of the spectrum – more of an advisory role with someone more savvy with new technology.
Comparably, if your firm has design or development expertise, a managed services solution should account for leveraging your internal staff, as desired.
3. Integrated process: At a minimum, a managed services firm should meet with you quarterly to discuss business initiatives and online channel initiatives. These periodic strategy meetings should also involve brainstorming on how to capitalize on market opportunities and business initiatives.
In addition, it is imperative to meet with your managed services firm on a monthly basis to gauge their performance by reviewing agreed upon measurable metrics (increased revenue, cost savings, customer loyalty, brand exposure, etc.). A good managed services firm will have open lines of communication and have a process in place so that you may request, review the status of and update any current initiatives or discuss new initiatives.
4. Diverse skill set: A qualified managed services firm will have access to a diverse skill set to leverage for your online initiatives. This includes:
5. Your Gut: Far more abstract, but perhaps the most important criteria is whether or not you are comfortable with the firm. Do you you think they have your best interests in mind? Do they act like an extension of your team? Do they treat you like a child or do they act more like a mentor or coach helping to develop your own expertise?
Are you comfortable with the on-boarding process or do you feel as though they are rushing the process? A good online managed services firm will take time and invest in learning your business, bringing ideas to the table, even start laying out a plan before you ‘sign on the dotted line.’
The two primary issues faced when investing in online customer experience and engagement solutions. – the cost of the platform/technology and the skilled expertise (strategic down to tactical) to capitalize on this – is now affordable and features robust solutions. Hiring the right eBusiness managed services firm gives you the ability to stay competitive with and even react quicker than your competitors, all at a reasonable investment.
Michael is an entrepreneurial-minded and experienced eCommerce & commercial product executive with over 17 years’ experience working in technology-focused organizations of $5 million to $3 billion+ in gross revenues. He excels at business strategy, operational oversight and business development for e-business and commercial software solutions. Michael has been published in Chain Store Age, Business Wire, SmartBusiness and Mobile Marketer. He is the founder and CEO of Envalo.
To date, business owners who started a business or who moved their business to a location that was previously occupied by a completely separate company may wind up inheriting certain workers’ compensation liabilities. A transfer of experience and/or debt—an Ohio Bureau of Workers’ Compensation (BWC) policy known as successor liability—had a negative and unanticipated impact on a business’ workers’ compensation costs.
With the approval of this legislation, the Ohio BWC will be required to reduce the transfer of negative experience to a successor employer under certain circumstances. And this legislation paves the way for relief for small business owners that are often unknowingly impacted until it is too late.
“Business owners have been blindsided when they inherited these liabilities after the move occurs and it jeopardized a small business owner’s ability to participate in certain workers’ compensation savings plans,” says COSE Executive Director Steve Millard.
Due to the passage of House Bill 259, Ohio law now instructs the BWC to establish conditions and criteria that might reduce or waive negative experience to be transferred to an employer who is a successor in interest.
“My company has opened four restaurants in Northeast Ohio the last few years,” says Operations Manager of Driftwood Restaurants Toby Heintzelman. “In three cases—and despite the fact that our company did not buy these businesses from the previous owners—we were surprised to learn that we were expected to pick up the previous companies’ workers’ compensation history. It made no sense. Moving forward, we’re encouraged that business owners will be responsible for the real risk they bring, not the history or disputes of former occupants.”
BWC also now provides a limited release of relevant workers’ compensation information before an acquisition or merger occurs. To help facilitate these requests, the Request for Business Transfer Information (AC-4) Form has been created. This form, which both parties must sign, allows the buyer to view any outstanding liabilities as well as the risk experience of the predecessor.
“The Governor, Ohio BWC, and legislative leaders like former State Representative Barbara Sears are to be commended for listening to the business community and acting on this issue,” says Millard. “The old approach served to prevent, or even worse, penalize new business creation in previously occupied or abandoned facilities. We’re confident these common sense changes will provide small business owners with greater clarity when they move to a new place or open up a new business which will help revitalize Ohio neighborhoods and lead to economic growth.”
In addition to a signed security agreement, a security interest is not enforceable unless the secured party has given value, such as if the secured party provides the debtor with a loan, or sells or otherwise delivers goods to the debtor.
A security agreement may provide for past, current or future loans that a creditor may make to a debtor. With the debtor’s consent, an existing creditor might obtain collateral for a past loan, and the earlier loan provides the necessary value. A security interest may also secure a loan made at the same time the security interest is taken. In addition, the security agreement may specify that the collateral will secure a loan that will be made in the future. If the creditor makes a binding commitment to make a future loan, that binding commitment provides the necessary value. However, if the creditor merely retains the option to make a future loan, value is not given and the security interest does not attach until the future loan is made.
A secured transaction is a credit or loan transaction in which the borrower agrees to give the lender a security interest in the borrower’s property, known as the collateral. If the borrower defaults, the lender (secured party) can take possession of the property and sell it to recover the value of the loan. The security interest is a lien on the borrower’s property. These transactions are governed by Ohio Revised Code Chapter 1309.
To protect its security interest, a secured party must “perfect” its lien, which is usually done by filing a financing statement with the secretary of state. The secured party may sometimes perfect its lien by being in possession of the collateral, however in most situations this is impractical. There are other complicated exceptions to the filing requirement set forth in the Ohio Revised Code.
By perfecting its lien, the secured party will be able to enforce the lien in the event the borrower seeks protection from its debts by filing for bankruptcy. And even outside of a bankruptcy situation, the secured party will want to perfect its lien to protect the collateral from the claims of other creditors.
Chapter 1309 does not apply to mortgages or other interests in land. Real estate mortgages are governed by Ohio Revised Code Chapter 5301.
It is important to keep your corporate minute book current. It should include various important documents, such as the company’s articles of incorporation, bylaws, and minutes or written consents of all meetings and actions of the directors, committees and shareholders.
A current corporate minute book is a useful tool in helping you to comply with corporate formalities, which helps prevent shareholder liability. In addition, in the event you want to raise money or sell your business, attorneys for the other side will likely want to see your minute book.
Problems to avoid include the following:
Keeping an up-to-date corporate minute book is not unduly burdensome, but well worth the time and effort.
As entrepreneurs, we often keep things close to the vest. While there are many advantages to this, there are also disadvantages. Receiving input from unaffiliated experts is an excellent way to create a competitive advantage and move your business forward. One way to achieve this objective without feeling too vulnerable is through the use of an advisory board.
An advisory board plays a critical role in helping you move your business to the next levels. Assembling the right group of advisers allows you to glean from others both their success and horror stories. Having a group of financial, legal, industry, marketing and operational people to provide you with strategic guidance and feedback helps you make better decisions based on their input and experiences.
The advisory board does not serve merely as a sounding board. It allows you a trusted audience to discuss your thoughts and ideas regarding your business, and also provides you with insight and perspective of professionals with vast experience from different backgrounds. Since you will share sensitive information with these people, pick advisers you trust, and whose experience and background you value, and be willing to listen to their ideas and suggestions. The relationships between you and your advisers, as well as amongst the advisers, will grow and strengthen over time, allowing you additional comfort in sharing the details of your business. The better your advisers know your business, the better their suggestions will be.
Remember, it is still your business and you are still the decision maker. Having a group of trusted advisers should enable you to make better decisions faster.
“You have to get comfortable being uncomfortable.”