The United States unemployment rate to date is 4.7%, and that’s a rate many considered full employment. And although the unemployment rate is very low, many people wonder if it is because many people have stopped looking for jobs because they are frustrated with the jobs available to them. The economy though seems to be growing, but at a smaller rate than the previous two years. Up to date, the U.S economy has grown only an 0.8%, when historically has grown 3% in a year. More than 750 thousand jobs have been added this year, and people are wondering if the economy is not stalling. For more about small business news, follow the link below.
Every Small Business Owner Should Know The 80/20 Rule
Alternately referred to as the Pareto principle or the law of the vital few, the 80/20 principle is one of the most important concepts in modern entrepreneurship. The term dates back to the 1940s, when the principle was named after pioneering Italian economist Vilfredo Pareto. In brief, the principle states that 80 percent of the effects are derived from 20 percent of the causes. Here are three different ways the 80/20 rule applies to modern-day business practices.
Training Your Staff
Regardless of industry, the success of any for-profit organization depends on the training and talent of its sales staff. To ensure that your sales staff is in the best possible position to succeed, they must receive training that allows them to overcome the objections of potential customers. As noted in this Entrepreneur interview, the best way to meet that objective is to teach your team the 20 percent of the knowledge they’ll need to answer 80 percent of consumer inquiries. Using the 80/20 rule, your training program will be compact enough to get new staffers up to speed as quickly as possible.
Pursuing Leads
The most commonly cited example of the 80/20 rule in business is that 80 percent of your company’s profits will come from 20 percent of your customer base. In order to maximize your company’s profitability, you should pour over your sales data to find what your most lucrative customers have in common. Whether its geography, age or marital status, you will find a commonality among your biggest purchasers, and once you do, you can adjust your marketing strategy to target that specific demographic.
Gene Marks: Here’s how one small business is controlling its healthcare costs.
The numbers are starting to come in and it’s not looking good. Healthcare premiums for both individuals and businesses of all sizes are going up again in 2017.
By a lot.
This is the time of year when insurance companies in each state request approval from regulators to set premiums for the following years. And big increases are being requested. How big? Humana is asking to raise rates by as much as 65 percent in Georgia and 38 percent in Pennsylvania. Providence Health wants to increase rates by almost 30 percent in Oregon. Insurers in Indiana, New Mexico and Maine have all requested rate increases north of 20 percent. Let’s not go into the reasons why all this is happening – there are many. What’s more important is facing up to the fact that healthcare is going to cost my small business a lot more next year. And, like every other business owner in the country, I’m struggling with what to do. How can I keep this huge cost under control?
Get Started: Money, Regulation Are Small Business Challenges
MONEY, REGULATIONS CHALLENGE BUSINESSES, SURVEY FINDS
Small businesses are still struggling to get the money they need and to comply with government regulations, according to a survey by Babson College.
Company owners who took part in the survey said they’ve been able to get only about 40 percent of the money they requested from all sources, including loans and investor funding. The nearly 1,900 survey participants sought a median amount of $100,000, but received only $40,500. The survey also found that banks are companies’ primary source of funding.
Finding money has long been difficult for small businesses, particularly young ones. However, getting loans has been even tougher since the recession because banks are extremely cautious about lending in general.
Businesses that seek funding are most likely to use it to supplement their cash flow or to buy real estate or equipment. Only about 8 percent of the owners said they wanted money so they could hire more staffers — a finding that’s in line with other surveys that have shown owners are conservative about expanding their payrolls.
