July 13, 2022
Which Prime Day deals are you scooping up? Amazon is featuring a bunch of small businesses this year. And those ergonomic office chairsā¦
In this weekās edition:
LIFE'S A STAG
Great. Another āflationā to worry about.
Give your stress ball a couple of squeezes and then breathe. Cool? Good, because another relic of the ā70s is looking to make a comeback and itās not as sexy as roller disco. Weāre talking āstagflation,ā a delightful combination of āstagnantā and āinflation,ā where the economy falls into recession while prices increase. The last time the economy saw stagflation was the late 1970s and early ā80s, when the Bee Gees topped the charts, inflation reached over 14%, and the U.S. GDP declined.
Iām going to need more than a stress ball.
Well, weāre not quite there yet, but some experts have serious concerns. A recent report showed an increase in the Consumer Price Index of 8.6% year-over-year ā rates we havenāt seen since MTV played actual music videos.
āMost of our adult lives, weāve been at 2% or less,ā says Ana Corrales, an economics professor at Miami-Dade College. āWeāre not used to these kinds of inflationary pressures, itās been a lifetime since weāve experienced that.ā As of right now, production hasnāt fallen enough to say the economy is in a recession, though many are predicting it.
So, how can I pull my business through this?
On a micro level, Corrales says small businesses can look at a period of stagflation much like they did the pandemic ā as a chance to innovate. āYou can shift from buying new things to fixing things before buying a replacement. Look to expand buying in the secondhand market, too ā buy used computers [and] printers instead of buying a new one.ā She also suggests looking into longer-term contracts with suppliers to lock in prices and ease concern over fluctuations.
Stagflation isnāt here ā at least not yet. Still, understanding its causes and having a plan in place are wise strategies for helping your SMB ride out the storm.
š Find out other ways your SMB can weather stagflation.
RULE BREAKER
What? What laws?!
Itās okay, thereās no need to panic. Youāve probably already done plenty of research into what applicable laws and regulations could affect your small business.
Itās just that sometimes, SMB owners can overlook laws that are generally (and erroneously) attributed to larger businesses. Ones that can catch you off guard if youāre not careful.
Thankfully, Claire Fountain, business analyst and Trainual partner, compiled a list of some of the most commonly overlooked business laws that small business leaders should be aware of:
1. ADA compliance.
The Americans with Disabilities Act (ADA) prohibits businesses from discriminating against people with disabilities. And while most people automatically associate ADA regulations with accommodations like wheelchair accessibility, some donāt realize that ADA compliance also extends to online spaces ā AKA, your website.
Youāll want to invest in online accessibility options. Additions like high-contrast text and backgrounds, magnifying features, options for keyboard-only access, and screen reading features are all great ways to make your small online business accessible to all.
2. Email marketing.
No matter how small your business is, if you're using email marketing, you're required by law to be compliant with the CAN-SPAM Act. Among several guidelines, it prohibits businesses from using deceptive subject lines and requires them to give recipients the choice of opting-out of future communications.
Small businesses need to pay close attention to how they conduct email marketing campaigns, as every single email found in violation of this code is subject to a fine (up to $46,517 per email).
š Find more overlooked business laws.
IF YOU'RE READING THIS, IT'S NOT TOO LATE
Wait, now?
Last year, over half of consumers planned to start their holiday season shopping prior to Thanksgiving. Meaning, youāll need to implement your holiday marketing strategies well before pumpkin-everything arrives. And start planningā¦ like, today.
Your business is unique and your holiday strategy will be too. But youāll definitely want to factor in these three considerations:
1. Leverage AI-guided tech for improved decision-making.
You donāt have time for those mundane tasks that you have to do, and take little thought. These areas are perfect opportunities to use AI learning to your advantage.
AI is coming in clutch to help business owners accurately predict what products they need to stock up on, speed up chat support, and improve process flows before the holiday season hits.
2. Plan for an extended, e-commerce-driven season.
Last year, consumers spent over $33B in online sales between Thanksgiving and Cyber Monday. And of course, theyāll start deciding what they want to buy as soon as they see a bunch of companies roll out their holiday promotions in mid-September.
So be sure to put your products and attention-grabbing deals in front of your audience ASAP to keep up with your proactive competitors. The better prepared you are for a stretched-out season, the better chance you have of meeting your yearly revenue goals.
And donāt forget to incorporate mobile marketing efforts. M-commerce (AKA, mobile e-commerce) accounted for almost half of online holiday sales last year and chances are good weāll see the same trend in 2022.
š Discover the last way.
ITāS THAT TIME OF THE YEAR
Once isnāt enough?
According to HR experts, no. These reviews were designed to help employees determine their strengths and weaknesses with guidance on how they can develop their performance going forward.
But doing these reviews annually just doesnāt seem to do the job ā according to one 2019 workplace study, 55% of workers felt that annual reviews didnāt improve their performance. In fact, doing these reviews so infrequently makes them incredibly stressful for employees ā so much so that crying isnāt uncommon.
Thatās not great. So, do we get rid of them completely?
Not so fast. Your employees still want an opportunity to reflect on their contributions to the team and how they can improve. Workplace feedback is important to maintaining a high standard of quality products and services. It just shouldnāt be confined to once a year.
So whatās the magic number?
Many companies have already given up the once-a-year system of performance reviews ā as of 2019, only 54% of businesses were still using annual reviews.
Google increased their performance review count to twice a year, made up of manager and peer reviews. Deloitte gave up their annual review and now hosts team leader-employee check-ins every other week.
And while continuous check-ins can be beneficial, a lot of small businesses just donāt have the numbers to run day-to-day operations and sit down for frequent reviews.
Doing short, quarterly reviews is a great place to start ā it should be comfortable for employees while still giving managers the opportunity to deliver feedback. And once youāve gone through a few cycles, you can determine the number of reviews that works best for your business.
š Learn more about performance reviews.
TL;DR
IN CASE YOU MISSED IT...
Take a break from surfing those Amazon Prime Day deals and catch up on all the hot SMB content you missed last week: