Disadvantages of Companies That Choose to Stay Private

There are several reasons why business owners decide to stay privately held.  One reason is that they enjoy the non-public nature of their business dealings. It is not that they are doing anything wrong; it is just that they are not thrilled with the idea of having to explain every little expense to the public.

 

The other reason that business owners choose to stay private is that they are hesitant to join the public market arena. They might not want to pay the costs involved, or they might not understand how it all works. They might worry about losing control of their business model. Most of them are not familiar with the Independent Stock Market, and how these and other hesitancies of going public are removed.

So, rather than learn about the safe, inexpensive, easy-to-understand ISM marketplace, they stay private and continue to work against all its disadvantages.

In this article, we will discuss two of the disadvantages of remaining privately held.

 Difficulty in obtaining capital

Private business owners use several methods in their attempt to get capital. Some use Private Placement Memorandums or Offerings. These are difficult to obtain, because business owners cannot advertise that they are looking for capital and because accredited investors must provide the majority of the capital brought in. Another means of trying to obtain capital is through banks. This has become increasingly difficult because most banks require collateral and most business owners need the money because of their current lack of collateral.

Some business owners of privately held companies have sought after venture capitalists. The large majority of these investors require either a significant amount of interest on their money, a significant percent of the owner’s company, or both. Because business owners that need capital find it difficult to find capital elsewhere, they often make this choice, often regretting the decision later.

Lower market value upon sale or merger of the company

When privately held companies receive valuations before a sale or merger, the market value, on average, is 30% lower than a company of the same size and value whose stock is publicly traded. This is because the stock in a private company isn’t marketable, and therefore cannot be traded easily.  Someone buying a public company has an exit strategy that private companies do not, that is why owners of public companies receive full value for their businesses.

For private business owners who want the benefits of public companies without the challenges of the traditional markets, contact the Independent Stock Market.

 

 

The Advantages of Social Commerce

With recent economic tightening and uncertainty, many businesses are looking to cut corners and find less expensive ways to reach their customer base. In today’s world, where much of our business seems to be more and more online, the rise of social commerce is meeting many of these companies needs.  Social proof companies like Shopper Approved can give online businesses a open look as to their business’ online effectiveness.

For the most part, online advertising is much less expensive than advertising on television, radios, newspapers and magazines. In fact, businesses are able to build virtual store fronts on social media sites like Facebook, Twitter, YouTube, MySpace, and others without any monthly rent or lease program. Just build the page or profile and you can stay for free.

Of course, to advertise on these sites and search engines, there are fees. But most are relatively inexpensive. Placing ads on social media sites is a cheap alternative to standard advertising and it’s growing more popular as more and more people realize the popularity and easy access to social commerce consumers. Since there are millions of consumers online daily, it makes sense to use a percentage of your business’ marketing dollars for online networking and advertising.

The advantage of advertising on social media sites is that ads can be assigned to show up based on a user's profile preferences. Basically, social commerce is a form of indirect social media marketing that allows you to make more money online, without having to waste money purchasing television time, or a spot in the New York Times. But it is also a good location to build upon advertising money spent on TV commercials, for example. A TV commercial placed online has the potential of being seen millions of times for free.

Social commerce rating and review programs like Shopper Approved are also advantageous because they give businesses insightful information on their consumers’ responses to products, service, and overall buying experience. So if you’re business doesn’t have an online presence yet, it’s time to get with the twenty-first century and start taking advantage of all the financial benefits e-commerce has to offer.

The Purpose of Website Reviews

Do you have an online business up and running? If you already have your website set up, that is great! However, you want to be sure that your website is user-friendly and that it is doing what it needs to do to attract and keep customers on your website. Website reviews provided by previous customers give you the opportunity to find out what your customers think about your website and see how many of them are planning on purchasing even more of your products. It also gives you the opportunity to display favorable reviews on your website for new visitors to evaluate.

Did you know that the average customer is only on a website for about 33 seconds? That usually isn’t enough time to buy a product or even look at many offers, unless the page is taking the customer to the exact page they need to be to make the purchase.

You can find out how long customers stay on your site by using software like Google Analytics. Software programs like these can tell you where your visitors live, what pages they visited, and even if they purchased your product. They can tell you who many people visited your site this month vs. last month and even what day was your most visited.

What these analytical software programs can’t tell you is if the visitors who became customers were happy with the purchase or not. Only website review and rating software like Shopper Approved can do that.

The purpose of a website review from current or previous customers is to help you, the business owner, be even more successful online. Website reviews are a great way to allow customers to rate and review your website, letting you know what they like and dislike. With information from the reviews, you are then able to edit your webpage, improve your product and fine tune your service department.

How to Maintain Satisfied Customers

When Sam Walton first opened up Wal-Mart, he did it because he wanted to create a store that everyone could go to get everything they need. He wanted a “one stop shop” so he created one. Business was rough in the beginning. However he knew one business truth that helped him become one of the most successful business owners in the world. Sam Walton knew that in a business, “There is only one boss: the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."

Walton knew the importance of customer satisfaction. If you’re not happy with a business, what do you do? You take your business somewhere else and tell all your friends how horrible that company treated you. You don’t waste your time with a business that treats you like crap. You find a company that understands that the customer deserves to be listened to and respected.

So how can you maintain satisfied customers in your business?

Step one: Realize that without your customers, you have no business. If you know this, then everything else will fall into place.

Step two: Use customer satisfaction survey software. Customer satisfaction surveys allow you to monitor how your customers feel about your business. It lets them tell you what they like and dislike, and what you need to change or improve to make them happy. Customer satisfaction surveys also give your customers the ability to add their testimonials about your product or service. Testimonials give consumers who are new to your site the privilege of seeing what previous customers have to say about your business. It is free, quality advertising.

Step three: Act quickly on any of the negative survey information provided by customers. If a customer tells you your products are too expensive, do your best to lower costs or revise your pricing structure and thank them for their input. If the customer says your employees were rude, reprimand and train your employees to provide excellent customer service. Then compensate the customer for having received poor service. Using customer survey software will only helps your business if you act upon what the customers tell you.

If you want to maintain satisfied customers, start by understanding how important consumers are to your company and act upon their thoughts and opinions. If you do this, your customer loyalty will increase just like Sam Walton’s did.

Extraordinary Customer Service

The other day I was at Texas Roadhouse and witnessed exceptional food, devoted employees, and quick, efficient service. Their ribs I ate fell right off the bone and tasted so delicious I could have eaten them all day long. The employees were happy. They even line danced a little, bringing a great party-like atmosphere into the restaurant. The waitress remembered our order precisely and even offered dining suggestions. I was experiencing extraordinary customer service – and it was about to get even better!

About ten minutes after they had closed the doors for the night, a customer walked in. At first they apologized and informed the couple that the restaurant had closed and that they would need to come back another day. The couple asked if there was any chance they could just order a to-go meal. They explained that it was their daughter’s birthday and that she had been in the hospital all day. When the couple asked their daughter what she wanted for dinner, she told them that she wanted ribs from Texas Roadhouse. The manager heard the story and made the accommodation instantly. Within a matter of seconds a server offered to stay late to take care of them if they wanted to stay and eat instead of taking the meal to go.

As I witnessed this, I realized that this company knew the difference between obligation and consideration.  The restaurant was closed. They were not obligated to serve the couple and their daughter. But the management and staff were considerate of the situation and made an unnecessary, yet intrinsically valuable decision. There were at least 10 other couples who as customers saw the desire that the restaurant staff displayed of extraordinary customer service.  

If I had the chance to rate this company with one of those online rating and review services, I would give them five stars and provide them with my testimonial of a job well done.

Extraordinary customer service is one of the most important parts of owning a successful company. Your customers are the people that keep you in business, and if they aren’t happy in this capitalistic country we live in, they will find somewhere else to go. If they are happy, they’ll do what I’m doing and tell everyone they know to join them as satisfied customers. Word of mouth is the cheapest way to promote your company. If you show your customers great service, they will talk about it, and that is how you create a successful business. 

Building Positive Customer Relationships through Happy Employees

What do you think is the most important aspect in running a successful business?

Is it the profit? Is it the quality of the products? Is it the advanced marketing techniques? Or could it be the number of loyal customers acquired through the relationships forged with happy employees? Most successful businesses excel at all of the above.

Gordon Bethune, with Continental Airlines, spoke about the success of their company and all others. He said, “I like to think that a lot of managers and executives trying to solve problems miss the forest for the trees by forgetting to look at their people -- not at how much more they can get from their people or how they can more effectively manage their people. I think they need to look a little more closely at what it's like for their employees to come into work every day."

What he points out as potentially being the most important aspect of a successful business is the inter-connected, intra-personal/social relationship among company leaders, their subordinates and their customers.

A business will not continue to generate income without loyal customers. And loyal customers are created just as much by the value of the product as by the high level of personalized, professional service they receive – if not more so.

Customer loyalty should be every business’ ultimate goal. When your customers become loyal to your business, they will spend their money with you, hence generating larger, more consistent profits. Your employees are the face of your company. They are the people the customers see, talk to, and get their products from. Your employees should all feel happy when coming to work everyday so that they will spread their positive attitudes, energy and knowledge about the product and company to your customers.

Reviewing your company’s positive customer relationships can be done easily by utilizing customer satisfaction survey software for honest ratings and reviews. Customer relationship software helps you understand how loyal your customers are and how well your happy employees have treated them. It allows you to know what changes you need to make in order to improve your customer relations and sustain customer loyalty. 

Don’t Screw Up On Purpose, But If You Do Screw Up…

Have you ever patronized a company whose employees displayed such terrible customer service that you wanted to punch them in the gut? If you have, I would guess that you never returned to do business. Unless they fixed the mistakes and apologized and significantly compensated you for your troubles, you would tell everyone you know not to do business with them.

The ironic thing is that if they did go above your expectations in making the situation right with you, you would probably tell more people to use their services than you would have if they would have gotten your order right the first time.

I’m not saying that business owners should intentionally screw up orders so that they can make a customer extra happy. But studies show that when things go wrong, the company’s ability to exceed the customer’s expectations and create a loyal, long-lasting relationship is sharply increased.

Michael Dell, the owner of DELL computers, (which is the brand I just happen to be using to type this article) is a business man who fully understands the necessity of his customers and keeping them happy. He said, "It's customers that made Dell great in the first place, and if we're smart enough and quick enough to listen to customer needs, we'll succeed." Your customers are the people that make your business great, and if you understand that then just like Michael Dell says, you will succeed.

Great customer service is the key ingredient to the mouth-watering recipe for happy, loyal customers. It is the ribbon around a package that, besides looking good, holds every part of your business together.

When your customers are satisfied, they will be loyal to you. This means that they will keep coming back to use your product and services, making you more money and perhaps even a friendship. The best way to make sure your customer service excels is by using customer service surveys.

Online rating and review software like Shopper Approved can ask your consumers how they feel about your product or service without being annoying. If want your customers to be happy, use surveys to ask them if they aren’t happy. If they aren’t, ask them how you can make them happy. Then do what they want you to do to make them happy. This simple process is sure to bring you success.