Business Advisor

How to Increase Revenue in Your Business (without New Sales)

How to Increase Revenue in Your Business (without New Sales)

For most businesses, one of the overarching objectives is to increase profits, which can lead to business growth—and more profits. That invariably requires strategies to increase revenues, lower costs, or both. For many businesses, growth strategies tend to focus on adding more customers to generate new sales. However, if profitability is the core objective, that may not be the best strategy. Let’s dive into some ways you can increase revenue in your business without necessarily bringing in new business.

 

Retaining and Pleasing Existing Customers Far More Profitable than Acquiring New Ones

 

Studies have shown that selling to current customers is the most cost-effective strategy for increasing revenues and profits. According to a Bain & Company study, acquiring a new customer costs 5X to 25X more than retaining an existing one. It’s not surprising then that the same study found it is up to 65% easier to sell to existing customers than first-time customers.

 

The study also found that companies that focus on customer retention experience a significant increase in profits, finding that a mere 5% increase in customer retention can boost a business’s profits by up to 95%.

 

Finally, a study by Motista found that customers with a loyal connection to a brand are worth 306% more in lifetime value than non-loyal customers.

 

These statistics should erase any doubt that businesses focusing on strategies to retain and leverage customer relationships can achieve higher revenue growth more profitably than those focusing on generating new customers.

 

Many businesses fight their way to the top by offering the best products or reducing pricing. However, whatever advantage that creates is typically fleeting. True business leaders provide something that most competitors can’t match—a genuine and deep connection with their customers. They do that by making customer loyalty and increasing the value of their relationships their top priority.

 

 Superior Customer Service Increases Revenue…

 

You’ve probably heard the adage that customers remember the service much longer than they remember the price they pay. According to the American Express study, 70 percent of consumers say they’ve spent more money with a business that provides excellent service. The same survey found that 86 percent of consumers would be willing to pay higher prices for better customer service and that, on average, consumers are willing to spend 17 percent more with a business that delivers exceptional service. 

 

…And Grows Profits

 

It shouldn’t surprise anyone that superior customer service increases customer loyalty and lowers the churn rate (the rate customers move on). Over time, the lifetime value of a customer includes everything they will ever purchase—today and in the future. 

 

If, on average, 65% of a company’s revenue comes from existing customers, at five to 25 times less cost than it takes to acquire a new customer, companies interested in increasing their profit margins must focus on strengthening customer relationships. 

 

Customer Service is the New Marketing

 

Word of mouth is still the best way to market your business, and digital channels such as social media can amplify its effect exponentially. According to a Temkin Group study, more than three-quarters of consumers would recommend a business after having a positive experience with a business. Businesses can leverage their marketing and advertising dollars by creating superior customer service as a key marketing initiative.

 

Customer Service Delivers Exceptional ROI

 

Small businesses that treat customer service as merely a cost center are missing out on the tremendous ROI a focused strategy can deliver. That’s why providing a great customer experience is now a top strategic initiative for 75 percent of larger companies because of the ROI it delivers. Now, an increasing number of small businesses recognize that providing excellent customer service is not just for larger companies and can directly impact their bottom line. 

 

 

How to Create a Superior Customer Service Initiative

 

Develop a clear customer experience vision. With input from up and down the organization, develop a clear customer-focused vision to communicate with all employees. The vision can be in the form of a mission statement and core values that will be embedded in all training and development to drive your organization’s behavior. 

 

Hire and train the right people. In addition to a well-trained customer service team, each member of the organization should have or acquire a skill set that enables them to communicate effectively with customers.

 

Build the right culture. Providing superior customer service must be a top-down, bottom-up initiative with an all-consuming focus on creating happy customers. 

 

Know your customers. All employees need to understand your customers—their demographics, preferences, needs, and what they value most in a relationship with your business. 

 

Buy the right technology. The right technology can improve efficiency and lower the cost of providing excellent customer service. Investing in an email marketing program with personalized content while increasing your social media presence can build your brand, increase customer loyalty, expand word-of-mouth, and increase cross-sell opportunities. 

 

Capture customer feedback. You need to ask your customers how you’re doing in serving their needs. Send follow-up emails to every customer using post-interaction surveys. Make outbound calls to customers asking for feedback. Encourage Yelp reviews. Then review the information with members of your organization who interact with customers. 

 

Measure ROI. Nothing reinforces an initiative like solid business results. Collecting data, such as the average sales and average sales revenue per customer, can provide immediate ROI feedback. 

 

The Bottom Line

 

The challenge for businesses is customer expectations are rising faster than the pace of improving customer experience. Customers expect every touchpoint in their interactions with your business—from their first impression, throughout the buying process, and with all communications—to be the best they’ve ever encountered. The sooner your business makes customer service its top priority, the sooner you’ll see improvements to your bottom line. 

 

 

 

 

Are you on track for retirement?

 

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is a critical part of your journey to the retirement of your dreams. An experienced Financial Advisor can help you navigate the complexities of investment management. Talk to a Financial Advisor>

Dream. Plan. Do.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

5 Things to Consider about Cognitive Decline and Retirement

5 Things to Consider about Cognitive Decline and Retirement

No one wants to admit when getting older starts affecting them. It can a sore subject that hurts an individual’s sense of pride and confidence in their ability to care for themselves. Think about how many stories you’ve heard of adult children having to have a talk with their elderly parents about no longer driving because their eyesight has significantly deteriorated or how stubborn a grandparent can be about using their cane or walker even though they are clearly in pain and struggling.

 

But not all ailments are physical. What about mental atrophy? A recent study shows that 10% of Americans over 65 have dementia and 22% experience mild cognitive impairment. The risk gets worse as you age, research shows, with half of all people in their 80s showing at least some mild cognitive impairment, which likely still allows them to live alone, but can make it difficult to stay on top of all the information required to manage money.

 

Cognitive decline is a risk we don’t often associate with the money side of retirement but is something everyone ought to consider. Here’s why.

 

1. Retirement is Already Complex

 

Navigating the complexities of the stock market and living off your retirement savings, including taxes and sequence of return risk, is already a tenuous balancing act for the majority of DIY investors. Add cognitive decline to keeping up with required minimum distributions (RMDs), balancing a portfolio to avoid overexposure to risk, and remembering important deadlines and you’ve got enough to add stress to even the most experienced investor.

 

2. Missed Bills can be Disastrous

 

Today, keeping up with all of your financial obligations, such as monthly bills and donations, may be a nuisance, but add in cognitive issues and it can be a tall order. Miss the wrong bill, such as a Medicare payment, and you could be dealing with a more serious issue like a gap in health insurance coverage.

 

3. Get Family Involved Early

 

Everyone seems to have a horror story about extended family or a close friend’s family waiting too long to get important paperwork completed and then their loved one is too far gone to be legally able to sign. The headaches and legal work that situation creates can last months, if not years. So, talk to your loved ones now about the different “what if” scenarios that can arise, including cognitive decline, and get a financial power of attorney lined up who has the legal ability to act on your behalf should you need help even with just making sure your bills are paid and any other money management tasks are completed.

 

4. Scammers are Targeting You

 

Your favorite grandson is on the phone and he sounds desperate. He’s in huge trouble and needs you to send $50,000 to him right away. He does sound slightly different, but, hey, who wouldn’t in a time of extreme stress like this? And this is just one way hundreds of thousands of grandparents have been scammed out of money. Having an extra layer of protection, such as a trusted family member as a financial power of attorney, can help safeguard you and your assets from scams and even would-be hackers.

 

5. Lean on the Experts

 

Sometimes, you need an unbiased expert in your corner as another layer of protection and help, especially if your family can be a little overwhelming. Plus, there are plenty of great family relationships that money can complicate. A financial advisor can listen to your concerns and wishes and then help you build a plan to protect your assets in case of cognitive decline. They also will help guide you to the right steps and paperwork that needs to be completed for powers of attorney, insurance coverage, and more to make sure you are taken care of and your wishes are met.

 

Need Help?

 

Retirement should be enjoyable and carefree. Let us help you safeguard your assets and prepare for whatever the stock market or life throws your way.

 

 

 

 

 

 

 

Are you on track for retirement?

 

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is a critical part of your journey to the retirement of your dreams. An experienced Financial Advisor can help you navigate the complexities of investment management. Talk to a Financial Advisor>

Dream. Plan. Do.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

How Rising Interest Rates Could Impact Your Finances

How Rising Interest Rates Could Impact Your Finances

As expected, the Federal Reserve is holding firm to its policy of hiking short-term rates in an effort to cool inflationary pressures. Generally, these small, incremental rate increases don’t immediately impact consumers. The fed rate is the rate the Treasury charges banks for the use of money overnight. When the Fed raises its short-term rate, the banks will increase the rate they charge borrowers, so consumers may experience a slight uptick in borrowing costs.

 

The more significant impact on consumers comes from an increase in long-term rates (Treasury bonds), which have also seen an uptick this year, impacting mortgage rates, variable loan rates, credit card interest, savings account rates, and certificates of deposits.

 

Here are the ways higher interest rates can impact your finances and some steps to take to mitigate their effect.

 

 

Higher Mortgage Rates

 

After hovering near historic lows for several years, mortgage rates jumped past 5% for the first time in more than a decade. With Treasury bond yields expected to inch higher, mortgage rates won’t be far behind.

 

Rising interest rates won’t impact you if you currently hold a fixed-rate mortgage. However, if you have plans to refinance your loan, now would be the time to do it because there’s no predicting how high rates could climb.

 

If you hold an adjustable-rate mortgage, your interest costs will increase, so now may be your best opportunity to lock in a reasonable, fixed rate.

 

Higher Consumer Debt Costs

 

Credit cards and other types of consumer loans also carry variable rates, which can be expected to increase with rising interest rates. Keep in mind, variable rates on consumer loans tend to adjust once per year, while credit card rates can change at any time.

 

Your best bet is often to pay down high interest, variable debt as quickly as possible to avoid swift changes to your payment. Some lenders offer personal loans with fixed rates for loan consolidation as an option to explore. You could also look for 0% balance transfer opportunities, though that would only be a temporary solution.

 

Good News for Savings Deposits

 

Savings accounts are already seeing yield increases. However, unlike rates on consumer debt, which lenders are quick to raise when interest rates rise, rate hikes on savings accounts tend to be smaller and less significant. Still, accounts that were recently yielding as low as 0.025% have jumped to as high as 1.0%. While it’s still relatively low, it’s an improvement. If interest rates continue to increase, you can expect yields on your savings to follow suit.

 

The Impact of Rising Rates on Investments

 

Bonds

 

Rising interest rates affect different types of investments in different ways. For example, bonds are almost always negatively impacted by rising interest rates. That’s because rising rates force bond yields up, which decrease bond prices. However, if you hold a bond to maturity, you will receive the entire value when you redeem it. If you sell bonds in this environment, you will likely receive less than their par value. General rule of thumb: When interest rates decrease, bond prices should increase again.

 

Stocks

 

The impact of rising interest rates on stocks can vary depending on the industry or market sector. Stocks of companies with a lot of debt don’t perform as well because they will have higher borrowing costs. Because interest rates are increasing as a result of higher inflation, the bottom line of some companies suffers because of the higher cost of producing or selling goods and services. However, well-established, well-managed companies with big brands, dominant market positions, and low or no debt can perform well in a high-interest and inflationary environment.

 

Diversification is Key

 

As always, the key to successful investing in any interest rate environment is to ensure you are well-diversified with a mix of different asset classes. Because it’s difficult to know which asset class will outperform another at any given time, owning assets with low correlation to one another helps to minimize volatility. For example, historically, stocks and bonds have a low correlation, so it is good to have a mixture of both in your portfolio.

 

Time to Reassess Your Personal Finances

 

Although many people have never experienced it, rising interest rates are a normal part of the economic cycle. For more than three decades, borrowers have benefited from declining rates (not so much for savers). Now the cycle is turning to where savers will benefit over borrowers.

 

Keep in mind that economic cycles can last for years or even decades, so it is essential to maintain some flexibility so that you can make adjustments to your finances that can mitigate adverse effects while capitalizing on positive ones.

 

At Platt Wealth Management, we understand that the rising rate environment is new for many younger investors and may bring up some (not so fond) memories for our older ones. But, rising rates aren’t all bad and simply need to be accounted for in your financial planning.

 

As always, we are here to answer any questions or address any concerns you might have about this rising rate environment. Our goal is to support you through these ebbs and flows in the economic cycle so you stay honed in on what is most important to you on your financial journey. 

 

 

 

Are you on track for retirement?

 

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is a critical part of your journey to the retirement of your dreams. An experienced Financial Advisor can help you navigate the complexities of investment management. Talk to a Financial Advisor>

Dream. Plan. Do.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

Protect Your Inheritance. Enhance Your Life.

Protect Your Inheritance. Enhance Your Life.

Whether it is expected or unforeseen, receiving an inheritance can be life-changing. Regrettably, it’s not always in a good way. That’s because the reality is that many folks struggle to preserve what they’ve inherited in such a way that enhances their life over both the near and long term.

 

In fact, the track record for Americans is pretty abysmal. Only two-thirds manage to increase their wealth after receiving an inheritance, and nearly 90% of families manage to waste it entirely when it passes to the next generation. 

 

Much of this can be attributed to two factors: (1) the heirs’ unwillingness or inability to act responsibly and/or (2) a lack of true understanding about what it means to be a steward of the family’s legacy. The latter tends to happen when family members lack a shared vision and purpose for their legacies. But almost always, it really comes down to poor decision-making and money mismanagement. 

 

Inheriting money should be a blessing, not a curse. But it takes the right perspective and the willingness to manage it with a clear purpose to get right. An inheritance that is honored and preserved provides the potential to change you and your family’s financial trajectory (and that of your heirs, as well). 

 

With this in mind, we’ve compiled a list of five things you can do to protect your inheritance and enhance your life so your family’s legacy is put to purposeful use.

 

 

1) Take a Step Back. Pause. Reflect.

 

There’s no rush in deciding what to do with your inheritance. It will be perfectly safe sitting in a zero-risk money market account while you take the time to evaluate your next steps thoroughly. While you might be tempted to make some moves right away, we encourage you to wait until you’ve consulted with your advisory team before you start dispersing the funds.

 

Primarily, this is because major money moves should never be made in isolation, but in the context of your overall financial picture. You need to see how the implications of your decisions could or will affect the other financial areas of your life. There may be better options for the allocation of your funds you aren’t aware of, or tax implications for your decisions that could come back and cost you. Making strategic decisions will be imperative in preserving and maximizing what you’ve inherited.

 

 

2) Build Your Dream Advisory Team.

 

Managing personal finances can be complex, and receiving a large sum all at once can magnify the complexities and implications of your decisions, especially regarding taxes and the estate.

 

Not only will you need an investment strategy based on your family’s goals, priorities, and risk profile., you’ll also need to consider the increased risk exposure you could have and how to protect against it. All of these considerations, and more, need to be integrated into a comprehensive financial plan that will optimize the value of your legacy. 

 

To build your dream financial advisory team, you’ll need to enlist the help of the following professionals: a financial advisor, a tax professional (preferably a CPA), and an estate attorney. Your financial advisor, or team of advisors, can then guide the other members of the team to make the planning and tax decisions that are best for you and your circumstances.

 

 

3) Clearly Define Your Life Ambitions.

 

Getting clear on what you’d like your life to look life is critical before you start spending. Plus, this is the fun part. You get to dream big and decide how you’ll align your resources with what matters to you most. Maybe it’s retiring early, fully funding your children’s’ college funds, or even investing in real estate. Have you always wanted to start a business? Travel more often. Buy a vacation home. Perhaps be able to work remotely doing something you’re passionate about. The way to get there is with the right planning performed up front.

 

Plus, we have found that the people with no clear vision or purpose for how they want to use their money tend to waste it on the “pursuit of more,” which ultimately brings no lasting fulfillment and leads to a lot of personal and financial disappointment. But people who set clearly defined goals that align with the purpose they see in their life are able to make smarter decisions about their money. They have clarity and conviction about how they want things to turn out, and put the plans in place to get them there.

 

At the end of the day, clarity on your big picture helps to streamline your financial plans and investment decisions. Any decision, strategy, or investment option that doesn’t get you closer to your goal should be eliminated.  

 

 

4) Addressing Immediate Priorities.

 

We know you are likely anxious to cross some financial to-dos off your list. Depending on your circumstances, there may be some things you can do right now to enhance your financial position while checking off some financial planning boxes. Remember, any financial decision you make should be made in consultation with your advisory team based on your long-term goals. So, if you are unsure, always err on the side of caution and wait until you have sought the appropriate counsel.

 

  • Pay off Smaller, High-Interest Debts

 

If you have the capacity to pay off smaller, high-interest consumer debts that will improve your cash flow, it may make sense to handle these sooner rather than later. Student loans would be the next in line of priorities, but depending on the amount, you may want to consult with your financial advisor before selling equity positions to reconcile these debts. You need to weigh the relative merits of your desired outcome with the realities of the decision to see what makes the most sense for your long-term financial security.

 

  • Bolster Your Emergency Fund

 

Increase your emergency fund to make sure it can be used for unexpected expenses, such as major medical bills, home or car repairs, or to cover living expenses for up to six months if you lose your income to a job loss or disability. 

 

5) Bigger Picture Goals to Consider

 

  • Funding Your Children’s College Education

 

If the funds are available, this would be an essential box to check off your financial plan. It can be far less expensive to pre-fund your children’s education while they’re young, and if you can do it with a lump sum investment, you can set it and forget it. Your financial planner can help you determine how much to invest now to cover educational expenses and the best vehicle to use. 

 

  • Funding Your Retirement

 

Depending on how large your inheritance is, if you have enough to pre-fund your retirement, it would be another critical box to check. Allocating a portion of your assets to secure your retirement will give you the confidence to freely allocate your other assets to pursue other goals. Again, your financial planner can help you calculate your income needs in retirement and guide you in developing an appropriate investment strategy. 

 

 

6) Honor the Legacy 

 

To honor the legacy bequeathed to you, you must become its steward, ensuring that it will benefit both you and future generations. Your success in accomplishing that will rely primarily on the decisions you make and how well you prepare the next generation for their eventual job as stewards after your passing.

 

Work with your estate attorney to develop a plan designed to preserve your estate and maximize it for your heirs. Include your children in any discussions having to do with your family’s vision and purpose for the legacy, as well as the values and attitudes about money you want to instill in your children. 

Most people who bequeath a large sum of money want to know that it will benefit future generations. After all, that’s what leaving a legacy is all about.

 

Creating Your Financial Strategy

At Platt Wealth Management, we know that life is about so much more than accumulated wealth and that real, impactful financial planning starts with what you want most out of life. That’s why our mission is to provide the financial expertise our clients need to think through and achieve the dreams they never thought possible. If this sounds like the financial advisory relationship you’re looking for, we encourage you to reach out and schedule your complimentary appointment with our team today. Or you can call the office directly @ 619-255-9554. We look forward to meeting you.

 

 

 

 

 

Are you on track for retirement?

 

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is a critical part of your journey to the retirement of your dreams. An experienced Financial Advisor can help you navigate the complexities of investment management. Talk to a Financial Advisor>

Dream. Plan. Do.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

The True Cost of Scaling Your Business

The True Cost of Scaling Your Business

Growth is essential for a business. Not only is it a critical measure of success, but it’s also vital to a business’s survival. Businesses that are not constantly striving for growth risk being overrun by competition or becoming irrelevant in the face of changing trends. However, without a well-conceived strategy and proper preparation, trying to achieve growth at any cost can also be fatal. Know the true cost of scaling your business to succeed where others struggle.

 

Cash Flow is Key to Business Growth

 

The biggest mistake many business owners make is developing the mindset that growth will solve all their cash flow problems. While it’s true that growth has the potential to bring in more revenue, cash flow problems truly stem more from budgeting and forecasting issues than revenue issues. Achieving sustained growth requires a lot of resources. To achieve it, a business must be able to sustain some losses along the way, and cash flow must be able to keep up.

 

Business owners serious about getting to the next level must understand the importance of cash flow. It’s not enough to simply have more cash coming in than going out. Effective cash flow management is about building financial stability as a foundation for growth. Cash flow management becomes critical when a business reaches a turning point or transition stage. Having a firm grasp of available cash while being able to forecast future cash flows during growth periods is critical, as is having a solid grasp of upcoming spending needs. 

 

For example, a business owner invests money into developing an app believing it will help scale the business. It will take time to develop it, during which the business will be spending money on development costs before it can expect an increase in revenues. Even then, revenue doesn’t necessarily equal cash flow which doesn’t materialize until expenses are paid. In the meantime, the business has to meet payroll and other operational costs. A cash flow forecast must account for the lag between product development and revenue that eventually translates to cash flow. 

 

Practice Sound Cash Management 

 

Poor cash management is a primary reason why many businesses struggle to get to the next level. It often comes down to having a process that effectively accelerates receivables while timing payables. Slow receivables or ill-timed payables can result in unexpected cash crunches. Businesses transitioning to a growth stage should work closely with their business bank to implement cash management tools that will more effectively manage cash flowing in and out of the business. 

 

Have Ready Sources of Capital

 

When a business enters its growth stage, the need for additional capital can often outpace profits, which is when it must turn to other sources of capital. This is a critical juncture when, for the business to expand and meet growing demand, it needs money it doesn’t have. The biggest mistake business owners make is waiting until they actually need the money before looking for it. The time to build relationships with a bank or investors is well before you enter your growth phase.

 

Set Realistic Expectations with a Business Plan

 

Having a clear vision of where your company is going is vital. However, a vision can turn into a pipe dream without a well-conceived business plan. A sound business plan articulates your vision, objectives, and the specific strategies for achieving them. Your plan becomes your rallying cry to get others on board, including your employees, investors, and lenders. It is also the critical benchmark against which your progress is measured. 

 

Ally with a Trusted Financial Professional

 

Nothing worth having comes easy, and this is certainly the case with business growth.

If you are a business owner who is serious about taking your business to the next level, cash flow planning, cash management, and a true inventory of your resources need to be top of mind.

 

Of course, this can be hard to see from inside the business, especially as the owner or operator emotionally and personally invested in the company’ future success. This is precisely why having an advisor who can help you sort through these realities can really help you get a clear picture of the true cost of scaling your business—what it will take financially, personally, and emotionally.

 

If you are a business owner in need of this type of relationship, we encourage you to reach out. At Platt Wealth Management, we seek to empower our clients by providing them with the personal and professional financial advice they need. We serve clients locally in the San Diego, CA area as well as throughout the country. To talk to an advisor, schedule your appointment here. 

 

 

 

 

Are you on track for retirement?

 

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is a critical part of your journey to the retirement of your dreams. An experienced Financial Advisor can help you navigate the complexities of investment management. Talk to a Financial Advisor>

Dream. Plan. Do.

Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

Networking for Success on LinkedIn

Networking for Success on LinkedIn

Working remotely and under stay-at-home orders means everyone is online. Being on the internet won’t go away once we’re able to gather in person, which will hopefully be soon! Networking online is critical during this time. The one social media platform dedicated to business and professionals networking is LinkedIn.

 

Why should you start networking on LinkedIn

 

For entrepreneurs, those in the C-suite, and management, the platform isn’t just finding clients. It is also an excellent way to connect with colleagues in your field to stay up-to-date on industry trends. This community also comes in handy if you leave your current position and want to transition to something new. 

When should you start networking? Just as it’s yesterday in person, so it is on LinkedIn. Don’t wait until you have a problem to start networking. Build your connections and contacts even if you have no intention of going anywhere or doing any content marketing.

Many employees looking for new jobs are on LinkedIn, and you might find the right talent there. You might have colleagues (or follow someone) who write thought-provoking articles that show up in your feed.

If you work in a highly regulated industry, your compliance department probably has some rules about how you can engage on social media channels. We’ll talk about general guidelines for LinkedIn in this post, but it’s good practice to run it through compliance first. Even if it’s not required.

Start with your page. If you have your own business, you can also create a business page. Executives, your company may already have a business page, and you can link it to your profile.

 

Understanding LinkedIn Networking basics

 

The platform is free, though you can upgrade to a paid subscription if you like. Management and C-Suite employees will probably get what they need from the free version discussed here. 

However, entrepreneurs who run B2B companies may prefer the upgraded version, known as Sales Navigator. The paid subscription makes it much easier to find target clients, and you’re able to message and connect with new people.

Your direct connections are called 1st-degree connections, people such as colleagues and friends. Introductions from your colleagues and friends become your 2nd-degree connections.

You can ask your 1st-degree connection for an introduction or ask the 2nd-degree contact if they would like to interact. Continue to extend your LinkedIn networking power to connect to 3rd-degree connections. LinkedIn doesn’t permit you to directly link to anyone you don’t have a 2nd or 3rd-degree connection.

 

Optimize Your Linked In Network Profile: Tell Your story

 

The more you build out your profile, the more visible you’ll be on the platform. The idea is to showcase yourself so people will be interested in getting to know you. Why are you a helpful or valuable connection?

  • Use your headshot instead of leaving the picture blank. You can also change the blue banner behind your head. Your company may have a suggested banner, or you can create one for your own business. When you develop your own, make sure it speaks to exactly what you do. And keep it simple.
  • The headline shouldn’t just be your title. “Manager” or “VP” doesn’t show off your skills. Instead, write what you do or specialize in specifically. 
  • Upload your resume to prepopulate things like the places you’ve worked and the schools you attended. Write up your Linked In descriptions to tell a story of your background and accomplishments. 

Make sure that you have all your certifications and awards in the proper spots. It’s not bragging when you earned it! Depending on your company, you may accept testimonials or endorsements to feature on your page.

Many business people make the mistake of rewriting their resume in the About section. Don’t do it. This is your opportunity to let people know more about you. What is it about your work that you genuinely enjoy? Think of it more as your mission statement in life and business. What kinds of subjects interest you? What do you like to do for fun?

It’s a great place to spotlight the problems you solve for your clients and how they feel after working with you. Especially for business owners. You can also add in why you chose this particular field. Keep your story at the bottom, so the “What’s In It For Me” for clients and prospects is front and center.

 

Using the LinkedIn Networking platform

 

As with other social media channels, the LinkedIn algorithm shows people you might know so that you can confirm connections. These can be eerily accurate or entirely off the mark. The more people you connect to, the better the algorithm gets. 

You don’t have to connect to everyone it suggests, but take a look at the person’s profile to decide if you want to reach out or not. Write a short note about why you’re connecting. Remember, it’s networking, so make the note about them, not you.

Once you’ve connected to someone, you’ll be able to see their network. If they are linked to someone you’d like to know. You can ask for a mutual introduction.

You’ll get a feed of the people you connect to and any organizations or groups you follow. You can follow well-known people in your field or a topic (such as “entrepreneurship”) to get those kinds of articles in your feed. It’s also algorithm-based, so who you engage with most shows up more often in your feed.

Interact with the postings, so people get to know you. You can also post articles and posts. Maybe you’ve written them, or else you think they would help the people in your networks.

LinkedIn also has groups, though the posting frequency tends to be much slower than on Facebook. You can join groups with your certification, in your industry, or with similar titles. Most business people can find groups where their clients appear and where referral sources or centers of interest go. 

Posting in these groups gets you in front of people that might not be on your feed. Connect with people who engage with you or whose posts you find engaging as well. (Note the focus on engaging, not selling.)

Although it’s business-oriented, it’s also social! Genuine interest responses, thought-provoking comments, or dialogue prompts work well.

Go forth on LinkedIn and prosper!

You can follow us on social media too! Platt Wealth Management is on FacebookLinkedIn, and Instagram. If you’d like to talk about your financial situation, please give us a call at 619.255.9554 or email us to set up an appointment.

 

 

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