Tips for Creating a Strong Corporate Culture

What can a strong corporate culture do for your small business? A better question might be, What can’t it do? A study by Harvard Business School Professor Emeritus James L. Heskett found that up to half of the difference in operating profit between companies is due to their corporate cultures. A strong corporate culture also leads to lower turnover, which means lower hiring and training costs, higher productivity, better customer relationships, greater customer loyalty, lower marketing costs and enhanced sales.

1. Take responsibility: 

Every business has a corporate culture—a collection of shared values, traditions and goals that make it unique. The difference is, strong corporate cultures arise consciously, shaped by the business owner, while weak ones arise accidentally from neglect.

2. Create a mission statement: 

Your company’s mission statement, which clearly conveys your business’s goals, philosophy and unique differentiators in a sentence or two, will be a reference point for developing and maintaining your corporate culture.

3. Keep it authentic: 

Corporate culture should be a natural outgrowth of your business’s mission, your industry, your customers and even your Personality. Don’t try to “force” a corporate culture that’s not authentic. IBM has one corporate culture; Zappos has a very different one. Each is authentic to the business involved.

4. Involve your team: 

Although you are a key driver of your business’s corporate culture, that doesn't  mean you can impose it from the top down. Involve your employees in fine-tuning your mission statement and determining what kind of culture they want to create.

5. Create rituals: 

Rituals, stories and rites of passage help create and sustain corporate culture. Whether it’s a weekly Friday pizza lunch, a celebration for employees who reach certain milestones or just the stories you tell when you welcome new employees to the team, create rituals that convey your corporate culture.

6. Hire for fit:

Look for job candidates whose personalities and attitudes mesh with your culture. Fit is more important than skill. A job candidate might have years of experience, but if he or she is uptight and rigid while your culture is loose and fun, the new hire won’t be happy—and neither will you.

7. Express your corporate culture in everything you do: 

Everything from the design of your office or stores, to the appearance and tone of your marketing materials, to the way your employees interact with customers should clearly convey your corporate culture to the outside world.

8. Don’t confuse “culture” with “crazy.” 

Wacky corporate cultures get a lot of attention these days, but being zany on the outside doesn't mean slacking off. Build rigor, ethics and responsibility into your corporate culture to create a firm foundation for growth.

9. Check in periodically: 

Three out of four executives in an MWW Group survey say their corporate culture is the major driver of their business’s reputation, but just 5 percent felt their company’s culture was strong enough to prevent a reputational crisis. Assess your corporate culture periodically to make sure it’s still working for your business.

10. Be ready to change: 

Nothing stays static in business today, and the corporate culture that works when your company is in the early stages may need to evolve as your business grows. If your corporate culture needs a tune-up, don’t be afraid to make changes.

Tips to Computer Security for Your Small Business

As small businesses become more reliant on technology, they also become more vulnerable to cyber crime  A Garner study found that 90 percent of companies that suffer major data loss close within two years—but that 80 percent of business owners have no plan to protect their data. Here are 10 tips to secure your business’s computers.

1. Identify security needs and risks:

Inventory your computer equipment, data and potential risks. Who is using desktops, laptops, tablets or smartphones? Where and how are they being used? What data do you collect, store or share, and who can access it? If your computers or network security were breached, how would extended downtime, fines or lawsuits affect your company? A Symantec study found cyber-attacks cost small and midsize businesses an average of $188,242, with downtime costing $12,500 a day.

2. Begin with the basics: 

Set up company computers and devices with strong passwords, and change them regularly. Ensure computers and devices are protected by antivirus, anti spam and anti spyware software; intrusion prevention systems; encryption technology to protect email traffic and wireless networks; and firewalls. AVG, Bit Defender  McAfee, Norton, Symantec and Trend Micro offer popular security products.

3. Keep your systems updated: 

Software updates often fix security problems, so download updates as soon as they become available.  To make this easier, more software programs–including Windows, Office, Flash, Java and Adobe Acrobat—now offer options to download and install updates automatically; these can generally be accessed through “Settings” or “Preferences.”

4. Back up: 

There’s no excuse not to back up data when today’s online backup solutions run unobtrusively in the background and store information safely offsite. Back Blaze, Carbonate, Mozy and Spider Oak are popular online backup services for small businesses. Ask about file sharing and sync across multiple devices and users, how much storage you get, how easy it is to restore data, and what backup and disaster plans the backup company itself has in place. Double your protection by backing up to external hard drives in your office.

5. Educate employees: 

Even with the right systems in place, your business is still vulnerable to human error. Educate employees about the importance of using strong passwords and protecting them. Explain the risks of opening texts or attachments from unknown senders, clicking on suspicious links in emails, or sharing too much company information on social networks. 

6. Think mobile: 

If your employees use mobile devices for business, install updated security technology, encrypt data and use virtual private networks (VPNs) to enable secure remote access. Remind employees to be cautious about who may be watching when they enter passwords or view confidential data outside the office.

7. Keep devices safe: 

While viruses and hackers capture headlines, the loss or theft of a physical device is still the most common cause of data breaches, according to Symantec. Remind mobile employees to be aware of their surroundings and never leave company laptops, tablets or cellphones exposed in a vehicle or unattended. Have them immediately report lost or stolen devices. 

8. Don’t mix business and family: 

Working on the same computer your children use for games or email puts business data at risk. Employees who work at home might have valuable work data on family computers. Create rules for how data can be shared or, if employees use company computers to work at home, consider restricting access to certain websites or prohibiting use of those computers for personal business. 

9. Secure your site: 

Symantec reports 90 percent of consumers will leave your site if they get the warning “This site is not secure.” Privacy and security seals show customers your website is a safe place to browse or shop. Privacy seals verify your privacy protection policy; security seals verify that you use technology such as encryption and regular scans for malware. McAfee, Norton, Symantec and TRUSTe are among providers offering these seals. 

10. Get expert help: 

If you don’t have an IT person on staff, enlist an IT consultant or SBDC Business Advisor to help you create a computer security policy. The SBA offers a series of free computer security workshops for small business owners, and the FCC has a customization Small Business Cyber Planner.

Tips for Pricing Your Product or Service

Has it been years since your small business increased prices? In today’s economy, many small business owners worry that raising prices will drive cost-conscious customers away. That’s not necessarily true: The 2012 Public Affairs Pulse survey reports 68 percent of Americans would rather do business with a small, local company—even if it charges higher prices—than with a big corporation.

Here are 10 tips for raising your prices without alienating customers:

1. Start small: 

Customers are less likely to notice or object to small, gradual price increases (say, 5 percent). You can also add small fees for “extras” that are currently part of your regular price. For instance, if gas prices are increasing your delivery costs, consider adding a delivery surcharge.

2. Test price increases: 

Test the waters by raising prices on a few of your products, or on smaller, less crucial clients, before moving on to core clients or products.

3. Stay one step ahead: 

If your business relies on materials whose prices fluctuate frequently, such as gas for deliveries or food for a restaurant, monitor price outlooks for those items so you can adjust prices (or cut costs) accordingly.

4. Create multiple tiers: 

If you’re reluctant to raise prices on your core product or service, consider adding a higher-tier product or service line that offers greater quality or more services at a higher price.

5. Bundle products or services: 

Grouping products or services into packages can persuade customers to buy more in order to save on per-unit costs. For example, a spa could bundle treatments; an insurance company could bundle different types of coverage.

6. Give customers notice: 

Business-to-business companies making substantial price increases should alert customers in advance. Contact customers 60 days ahead of time to explain the increase and the reasons for it. If desired, you could offer customers the option to lock in contracts at the lower rate before prices rise.

7. Consider seasonality: 

If your product or service is in high demand and/or in short supply at a particular time of year, that’s typically a good time to raise prices, since customers are less likely to question the increase.

8. Use discounts and deals sparingly: 

Excessive use of coupons, daily deals and sales can hurt your margins and attract customers who buy based solely on price. Instead, use discounts strategically to attract new customers and reward current ones. Train your salespeople in the art of up-selling so even customers lured by discounts end up spending more.

9. Educate your customers: 

Customers are more willing to absorb price increases if they understand what makes your products or services special. Whether it’s the locally grown, organic ingredients you use in your restaurant or the unconditional guarantee you provide for the websites you design, make sure customers know what sets your business apart.

10. Monitor results: 

Pricing isn't a one-time action but an ongoing art. Use financial software such as Quick Books to monitor your business’s cash flow, sales and profit margins. Monitor how price increases affect each of these elements, and adjust pricing as needed.

Tips for Growing Your Family Business

Family businesses bring special rewards, such as inherent trust, the camaraderie of working with loved ones and the joy of building a lasting legacy. However, running a family business also poses some special challenges. Perhaps that’s why, according to the Family Business Institute, fewer than one-third of family businesses last beyond the first generation and just 12 percent survive to the third generation. How can you make sure your family business doesn't fall victim to those odds?

Tips for Building Business Relationships

No matter what industry you’re in, building business relationships helps you increase sales, develop innovative ideas and discover new ways to grow your company. Here are 10 tips for building business relationships.

1. Join the club:

Industry trade associations, niche organizations such as groups for minority or women business owners, groups your key clients belong to and your local chamber of commerce are all great places to make new contacts.

2. Set goals:

Know what you are hoping to achieve from a particular organization. Do you want to meet prospective clients, potential partners, job candidates or suppliers? Setting goals will help you assess whether an organization is right for you.

3. Be prepared:

 In any situation where you’re meeting new people, bring an open mind and a friendly attitude. Also bring business cards and be ready to describe what your business does in simple terms (“We help small businesses save money by preparing their taxes”). Greet everyone with a smile, eye contact and a handshake.

4. Mingle:

Never spend all your time at an event talking to one person or group. Think of several ways to politely end a conversation and move on. (But first, get contact information from those you've been talking to so you can follow up later).

5. Follow up:

When you meet someone you’d like to get to know, follow up. Use social networking tools to link up on LinkedIn, become friends on Facebook or follow each other on Twitter, and you’ll also be exposed to the person’s network of contacts.

6. Take it offline:

Connecting on social media is a good start, but to truly foster a business relationship, you need to spend time face-to-face. Suggest getting together for coffee or a meal to share more about your businesses and how you might work together.

7. Keep in touch:

Business relationships are like flowers-without nurturing, they wither and die. Make it a point to regularly connect with your key relationships, whether it’s re tweeting their tweets, mailing a card or meeting for lunch.

8. Harness technology:

Contact management software can help you track information about your contacts so you don’t have to remember birthdays, children’s ages or hobbies. The software does it for you and sets up reminders for actions like emailing or sending birthday cards.

9. Be patient:

Business relationships take time to pay off. It may take years of talking and planning with someone before you actually end up working together or seeing any results from one of their ideas, referrals or suggestions.

10. Aim to give, not just get: 

Of course, you want to benefit from business relationships-but that’s more likely to happen if you have a generous attitude. Focus on how you can help your contacts, and you’ll find that you get more than you give.