June 2024

The first question Nvidia CEO Jensen Huang had to answer at the AI chipmaker’s annual shareholder meeting on Wednesday was how Nvidia handles rising competition.

Though Nvidia indisputably leads the AI chip market, with more than 80% of market share, competition has intensified. Established tech giants like Intel and AMD and rising startups like Etched, Cerebras, and D-Matrix are all vying for room in a highly lucrative space worth billions.

About 40% of Nvidia’s revenue is believed to come from just four companies: Microsoft, Meta, Amazon, and Alphabet. All of those companies have the means to fully develop AI chips on their own one day.

Related: Nvidia Long-Term Employees ‘Semi-Retired’ Multimillionaires

So Nvidia’s current customers could one day be its biggest competitors.

Huang addressed the threat of competition without calling out any rival in particular on Wednesday. In response to a shareholder question, he said Nvidia’s strategy was to make AI chips that have the “lowest total cost of ownership.”

Those five words don’t necessarily mean that Nvidia’s chips, which cost upwards of $30,000 apiece, are the cheapest on the market.

Instead, Nvidia’s chips could present a “lowest total cost” overall when potential customers consider performance, the cost of running the chips, and their wider reach.

“The NVIDIA platform is broadly available through every major cloud provider and computer maker, creating a large and attractive install base for developers and customers, which makes our platform more valuable to our customers,” Huang said, per CNBC.

^{Nvidia CEO Jensen Huang. (Photo by SAM YEH/AFP via Getty Images)}

Nvidia’s chips have been around for 30 years, but until recently, they were used as graphics cards.

Huang believed that the chips could do more. In 2016, he asked his team to use the chips to build an AI server, which ended up being as big as a briefcase and cost $129,000 to make. He then hand-delivered the server to OpenAI as a gift.

Tens of thousands of Nvidia’s chips now power OpenAI’s ChatGPT.

Huang emphasized at the meeting that Nvidia had a head start on AI chips because it started investing in the technology a decade ago, pouring billions of dollars into the effort and adding thousands of engineers to work on it.

That first-mover advantage has paid off. Nvidia is now one of the world’s most valuable companies, hitting a $3.338 trillion valuation last week.

Related: Amazon Joins Apple, Nvidia, Microsoft, Alphabet in $2T Club

Walgreens is the latest chain to face mass closures.

On Thursday, Walgreens announced that it would be closing a “significant” number of underperforming stores across the country.

“The current pharmacy model is not sustainable,” CEO Tim Wentworth told investors on an earnings call. “Changes are imminent.”

Related: Walgreens’ Battle Over High-Tech Cooler Doors Heats Up

Wentworth said that it would “take a hard look” at 25% of its stores over the next three years with the potential for closure, which means that 2,150 stores could be up for shutting down.

Walgreens currently operates 8,600 stores.

“The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them may not be inflating doesn’t actually change their resistance to the current pricing,” Wentworth told investors. “So we’ve had to get really keen, particularly in discretionary things.”

Walgreens Boots Alliance stock plummeted over 24% in a 24-hour period upon the release of its fiscal Q3 2024 earnings, which reported $36.4 billion in revenue.

The company revealed that it was hit with a $2.7 billion bill by the IRS after the agency conducted audits and reportedly found issues with Walgreens’ transfer pricing between 2014 and 2017.

Related: Walgreens Unveils New CEO, $1 Billion Cost-Cutting Plan

“The Company intends to vigorously defend its position on the transfer pricing matter through the IRS’s administrative appeals office and, if necessary, judicial proceedings and is confident in its ability to prevail on the merits,” Walgreens said via the filing at the time.

As of Thursday afternoon, Walgreens Boots Alliance was down nearly 59% year over year.

Out-of-the-box thinkers in marketing have attracted massive media attention throughout the years, creating masterpieces that have captivated audiences and kept the public talking about brands and their products. While traditional marketing strategies are always reliable, non-traditional campaigns can deliver a much higher reward when brands use them correctly.

Every once in a while, a company turns a creative idea into the next hot topic for online chatter and workplace conversation. These viral campaigns teach us that unconventional approaches can amass media attention quickly and for many years after!

Related: From Zero to Viral — 4 Marketing Campaigns That Shook the Web in 30 Days

Offer customers creative solutions like the Heinz insurance policy

Creativity mixed with tongue-in-cheek humor for this viral campaign orchestrated by one of the biggest names in food products. With their new “insurance policy,” Heinz promises to help customers who are coping with ketchup-related accidents by turning every mess into an opportunity.

It is no surprise that this product offering went viral. It addresses a common pain point for Heinz consumers while enhancing the customer experience, and it presents a hilarious solution to keep people talking. Every customer base has relatable industry problems. Offering innovative solutions with an unexpected twist can make your brand the obvious choice over competitors.

Step away from corporate professionalism like Manscaped’s Snooker commercial

British humor is known to be just a little racy to garner a few laughs from an audience, which is why Manscaped asked British comedian Charlie Partridge to play the star in their Lawn Mower 4.0 Snooker commercial. In this viral commercial, Partridge delivers a collection of double entendres aimed to make light of the brand’s personal care products.

The personal care product industry is known for using indirect marketing ploys to address private matters, but this commercial kept audiences talking and certainly demonstrated a clear understanding of its target audience. The commercial’s clever script shows how beneficial it can be for modern brands to push professionalism aside and be brazen with their audiences in today’s bold world. It might not be the right fit for every potential consumer, but it will certainly generate buzz and encourage sharing, which can help your brand secure more sales.

Related: This Is the Unconventional Marketing Tactic Small Businesses Need to Try

Leverage the power of viral marketing events like Refinery29’s 29Rooms

First founded in 2005, Refinery29 has spent nearly two decades centering itself as an authority in pop culture and public relevancy. Their 29Rooms experience was a series of events designed to combine the traditional party scene with a viral social media focus, further establishing the brand as a clear leader in all things cool.

At the traveling experiences, Refinery29 prioritized entertainment and art, as well as politics and style. Attendees were able to see captivating displays from talented modern artists, catering to the growing interest in smaller creators while providing a high-quality backdrop for viral social media content.

The exhibition drew attention to the Refinery29 brand, all while helping its audience celebrate shared spaces again after a challenging year of pandemic isolation. Marketing events can be standalone events, but Refinery29 shows us that more complex events that span across dates and locations can be a worthy investment that facilitates a deeper connection with an audience. These events bring people together and keep their focus on your brand, especially when the events are culturally relevant and designed for a social-media-obsessed world.

Repurpose marketing wins like the Red Bull Stratos project

Known for helping its customers reach new heights, Red Bull garnered massive media attention with the Red Bull Stratos project, which centered around a historic high-altitude jump with Austrian parachutist Felix Baumgartner, who leaped into the air from over 120,000 feet using special equipment and a one-of-a-kind suit to keep him safe in an otherwise unwelcoming environment.

Throughout the years, Red Bull has gained further attention from the media for this stunt and even captured public interest again with its 2018 release of Mission to the Edge of Space, a documentary that offers an inside look into the project. Repurposing successful marketing campaigns to generate new interest and capture more attention down the line can be a powerful move, allowing your brand to do more with less.

Keep the focus on people like Lululemon’s Proud & Present

The Lululemon brand has always had a mix of media attention, receiving both praise from customers and criticism for a lack of inclusivity throughout the years. In 2019, the brand took a big step forward with the help of creatives from Working Not Working to craft an inclusive new campaign that put aside traditional marketing and instead allowed voices from marginalized communities to be heard in public spaces and online.

The “Proud & Present” campaign was centered around honesty and offered a distinctly human spotlight. Brands can learn a lot from this campaign. Not only did the campaign creatively address one of the primary criticisms that had plagued the company in recent years, but it also showed a nuanced understanding of the public interest in raw, real content.

In an age where people share their truths in posts online every day, the average consumer is less interested in perfectly tailored marketing content and more interested in content that reflects an understanding of the human experience and consumer needs. Placing humanity at the center of your brand campaign can help your audience feel seen and heard, generating deeper levels of trust and increasing brand loyalty.

Related: 10 Genius Marketing Campaigns That Went Viral

Marketing is a year-round commitment for brands, and in many cases, traditional marketing is a fine match. However, unconventional campaigns can attract a lot of publicity and keep talking for years, even if all that is left of them is a YouTube clip or a social media post.

Generating buzz is much easier when marketers give the public something to buzz about, and a less traditional approach is an excellent way to capture their attention and imagination.

Marketing today encompasses a dizzying array of techniques, including market research, branding, inbound and outbound marketing, search engine optimization, content creation, influencer campaigns and more.

Marketing may seem complex, especially for an executive without direct exposure to their marketing team. However, there is a simple basis of all marketing which the American Marketing Association calls the “four Ps:” product, place, price and promotion.

Related: 6 Innovative Marketing Strategies Designed for Startups

A product primer

You believe you have invented (or acquired) the best thing since sliced bread. But, before launching a business, use market research to determine whether there is an actual market for it and whether that market is prepared to pay its price. According to the Small Business Association (SBA), “market research blends consumer behavior and economic trends to confirm and improve your business idea.”

Market research can be conducted by hiring a specialized company, engaging with an online platform or a DIY alternative like Survey Monkey. Here is what you need to answer:

• Is there a desire for your product or service?
• Where do your customers live and can your business reach them?
• Are similar options already available and what do they cost?

Once it’s clear that there will be a robust audience for the product or service you intend to offer, it’s time to drill down to the next “P” — place.

Product “place”ment

Unless the business you’re running is focused on a large ecommerce platform like Amazon, the right business location is important. For my company, having launched our brick-and-mortar franchised restaurant as a food truck in Miami, we knew where our customers were and that determined our first physical location — but our experience is not the standard for every business.

Place will revolve around the type of business and the results of your market research. Here are some examples of “places:”

• Home-based — a good place to start a DIY enterprise.
• Retail — storefronts, malls, airports, pop-ups.
• Mobile — for example, a food truck.
• Commercial — for businesses that don’t need foot traffic.
• Industrial — for manufacturing and distribution operations.

Related: 10 Things to Consider When Choosing a Location for Your Business

The price is right

Without an advanced business degree, it can be difficult to analyze all of the factors involved in pricing. From solely a marketing standpoint, knowing the economic status of the target consumer is of primary importance. Simply put, how much will the market bear?

Containing costs may be required to gain a larger profit while keeping the pricing pegged to the marketplace. Here are a few tips:

• Conduct a thorough cost analysis.
• Negotiate with suppliers for better deals.
• Implement portion/product size control measures.
• Introduce energy-saving practices.

Get promoted

Now for the fun part. Promotion is where creativity achieves maximum impact. The fact is: “Brands that are willing to take risks and think outside of the box are often the ones that stand out in a crowded market.”

When you think about promotion, keychains with business logos, billboards and signage in general may come to mind. While these can be excellent promotional vehicles, there are newer and more exciting options. Consider exploring how your business might benefit from pop-up locations in addition to your main venue, or offer car magnets to customers and let them be “brand ambassadors.” Social media presence is also essential (and a whole topic of its own).

Here are a few specific ideas that can help the business raise its profile a few notches:

1. Giveaways

Consider giving away an item that represents the brand. In our case, that’s a taco giveaway, but it could even be just a lanyard with your logo. Giveaways should always be a line item on the marketing budget with advertising and public relations because nothing engenders goodwill like freebies.

Here are four reasons why giveaways work:

• Creates brand recognition with a memorable experience.
• Shareable on social media.
• Reaches new customers and fosters loyalty in existing customers.
• Provides the opportunity to gather data such as email addresses.

Giveaways — whether an actual product, a promotional item or offering free services — boost community engagement, brand awareness, rapport and social media buzz. Always leverage social channels to communicate the giveaway highlights before, during and after a campaign.

Related: How a Contest or Giveaway Can Attract Business Prospects

2. Guerrilla campaigns

Many businesses underestimate the value of a properly executed guerrilla marketing campaign. But first, what exactly is a guerilla marketing campaign? According to the Entrepreneur Small Business Encyclopedia, it means going after the conventional goals of profits, sales and growth by using unconventional means, such as expanding offerings during economic downtimes to inspire customers to purchase increased quantities.

It’s important to develop a campaign that leverages guerrilla marketing tactics in a way that you can measure its impact by applying a combination of quantitative and qualitative metrics. Here’s how:

• Define clear objectives.
• Track online engagement and monitor media coverage.
• Calculate the ROI to make sure the money you spent was worth the resulting sales and/or customer engagement.

Here’s a personal example: A customer ordered food from my restaurant delivered to her home, and when it arrived, raccoons stole it. She recorded the incident and posted it on social media, and it got picked up by local news. We worked to get the video uploaded to some of the bigger meme accounts on Instagram and Facebook, and it got more attention than any print ad or TV commercial. All it cost us was a $100 e-gift card to the customer to compensate for her stolen food.

3. “Old school” PR stunts

PR stunts used to have a bad rap, but they’re becoming more common again — as long as you’re ethical about it. A PR stunt can often be an easy-to-implement, unconventional marketing strategy. Before we became a brick-and-mortar restaurant, we operated a food truck. We got friends and family to stand in line throughout the day to create the perception of a busy food truck. Promoting small crowds swarming the truck attracted even bigger crowds.

Eventually, the number of fans enjoying the food truck got so large that we had to open a physical location — then another and another. Now we’ve become a successful franchise business.

Related: Does PR Actually Help Increase Sales? Yes — Just Do It Right and Be Patient

4. Strategic alliances

Look for businesses that are aligned, but do not compete with your product or service, to create cross-promotions. For example, seek a partnership with a local sports team. Studies show that 66% of “forever” sports fans take action after seeing a brand’s sponsorship.

To the four Ps of marketing (product, place, price and promotion), I would like to emphasize one “C” — creativity. Creativity is key in marketing, but don’t get too carried away: Always keep the customer in mind and make everything you do relevant to the brand.

One of my favorite brainstorming frameworks is the SCAMPER technique. It stands for Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse. Advertising executive Alex Faickney Osborn developed the original principles in 1953. Then, Bob Eberle turned them into a memorable acronym and expanded on the concept in 1971 when he wrote the book, Scamper: Games for Imagination Development.

Many people believe that creative thinking is an innate ability. That may be true for some people, but the rest of us can be creative too, with tools like SCAMPER. Let’s dive in.

Related: 5 Ways to Transform Your Next Work Brainstorming Session Into Something Really Great

Define the problem to solve

Before you get started, define the problem clearly. You can apply SCAMPER to products, processes, ideas or anything else you want to improve upon. You can even use it to reveal new opportunities to compete. To illustrate the technique, let’s consider the shift from cars powered by combustion engines to electric vehicles (EVs) as we explore each component of the SCAMPER technique.

Substitute

The first component of SCAMPER is Substitute. Look at your idea and break it down into its parts. What people, materials, processes or other elements is it comprised of? What people could you substitute into the process to get a different outcome, and why? What happens if you swap out a material, process or something else?

If you were brainstorming ways to improve upon gas-powered cars, you might ask yourself what to substitute. Eventually, you might ask yourself whether you could substitute its power source. Moving from gas to electricity is the substitution that sparks the idea of electric cars and sets off the chain reaction of imagining every component replaced with an electronic equivalent.

Combine

Now take your existing components, as well as your substitute items, and imagine combining them in new ways. Can you produce a better outcome? Are there functions or features that you can combine to make your idea better in some way? What about the process?

The underbody of standard cars is typically composed of hundreds of parts that are assembled together during manufacturing. Tesla simplified the underbody of their vehicle with a process called gigacasting, where they die-cast it as a single unit. You can think of this as the combination of the hundreds of parts that are required for the same purpose in gas-powered cars.

Adapt

As you dive deeper into the SCAMPER technique, consider how you might adapt your idea. Can you transform a process or component of your idea to make it better? Is it possible to make your idea function differently?

In our example, don’t just think about adapting the vehicle or its power source. Think about the driver. How did people need to adapt to make EVs popular? One way was that they needed to be comfortable with slow-charging their vehicles at home or finding charging stations rather than relying on the vast network of gas stations. This led to innovations in how to power EVs. For example, we find charging stations at shopping malls and other places where people spend time doing other things. Another example of adaptation was the development of a method to fast swap weak batteries with fresh ones, rather than requiring drivers to wait for charging to complete.

Related: Two Stanford Professors Explain How to Produce Hundreds of World-Changing Ideas In 1 Hour

Modify

You can think of substitution, combining parts and adaptation as different forms of modification. Now, think through other ways you can change things up that don’t fit into those categories. What happens if you make this change? Can you increase or decrease something to produce a different effect? Try zooming in and zooming out to identify other things to modify.

One modification Tesla made was to flatten the battery and use it to reinforce the floor of the car. Contrast this with installing the battery in the back or front of the car like the Prius and other earlier vehicles. The result was a lower center of gravity, improving safety and handling, among other benefits.

Put to another use

Now think about how you might use your product, process or idea in a different way. How can you put it to another use? Think about adjacent markets that you haven’t explored.

Part of Tesla’s success has been their focus on “coolness” in their marketing, rather than utility. They’ve put EVs to a new use with the Cybertruck, which looks like something out of Mad Max. It’s cool. They’ve put their technology to other uses, too. EV semi trucks are capable of carrying heavy payloads. Over time, we may see even more ways to put this technology to another use.

Eliminate

Take another look at all of the components of your concept. What would happen if you removed one of its parts? What about other parts or processes? Are there unnecessary components?

One radical innovation was for Tesla to digitize their EV’s dashboard. This move eliminated analog dials, mechanical odometers and other parts and replaced them with a 17-inch LCD. The change simplified the design and reduced parts while increasing flexibility.

Reverse

What would happen if you flip your idea around, turn it upside down or reverse the order of things? What about flipping it back and forth? Will something change?

One obvious reversal among EVs was the relationship between the driver and the car. By definition, drivers drive cars. With the advent of self-driving cars, the car effectively “drives” the “driver.” You could also try looking at the manufacturing process in reverse as a way to identify waste and optimize production.

Related: To Get Your Team Brainstorming Great Ideas, Start With Crazy

You can apply the SCAMPER technique to virtually any industry. Take the EV examples throughout this article, and try replacing them with a product, process or idea that you’re working on. Teach this method to your team, and see how it makes your organization more innovative and fun.

There are few guarantees in business, but this one is certain: If you don’t keep customers, you won’t have a business for long. Yet, at a time when most companies are desperately trying to maintain customer loyalty (retention is more profitable than acquisition, after all), there’s often a missing link in their efforts: Understanding the powerful connection between customer satisfaction and employee engagement — and how to unlock it.

As a Chief People Officer currently overseeing my company’s customer organization, I’ve seen first-hand how connected they truly are. At its most basic, losing customers can have a direct impact on employee morale and even lead to regrettable talent turnover. But there’s more nuance to this connection: nearly everything employees do has the potential to deeply impact customers. In turn, customer feedback and outcomes can have a powerful effect on an employee’s sense of purpose, achievement and satisfaction.

Related: 7 Surefire Ways to Turn Your Low Customer Retention Rates Around

I’ve witnessed how establishing a customer-centric approach across the entire organization can lead to growth opportunities that benefit both employees and customers. But to get there, businesses need to leverage that connection by making customer success the forefront of every employee’s experience. Here’s how.

Make customer success everyone’s responsibility

Most companies take a siloed approach to customer success, relegating it to a single department, while others remain largely insulated from customer interaction. But I’ve come to realize that the more we empower all of our cross-functional teams to contribute to customer success, the more purposeful, impactful and engaging their roles become, and the more they can drive customer loyalty and retention.

For a more holistic approach, I am a fan of the bowtie model. In contrast to the traditional marketing funnel, which ends when a customer converts, the bowtie provides a more end-to-end representation of the customer journey. It’s a better way to ensure everyone in the company is maximizing engagement with the customer over the long term — whether through strategic ongoing communication and marketing efforts or more integrated processes and practices designed to deepen this relationship.

One way we do this at my company is by encouraging every department to evaluate every task — and every ask — from the perspective of how it benefits the customer. Whether it’s marketing, sales, product or engineering, this filter is applied to all decision-making. Of course, we also look to metrics like Customer Satisfaction Score, customer retention, and revenue expansion with existing customers to ensure our efforts translate into results.

Supercharge customer touchpoints

I recently traveled overseas to meet with a customer, and as I was leaving, their CFO turned to me and said something I’ll never forget: “Don’t get me fired.” It’s a powerful reminder that our view on customer success must be broader than just ensuring product integration or stability. Everything we do has a ripple effect on their company’s success, which can impact their personal reputation, too.

The concept of radical empathy isn’t new in customer service. Cultivating a deeper understanding of customer needs is crucial for effective product development, marketing and sales, but it can easily get lost once a customer is onboarded. Building more proactive touchpoints with customers —and even baking them into the early stages of product development — can help overcome this oversight.

For us, that means attending industry events and building out strategic channels and information-sharing communities to better understand their sticking points. We’ve also established customer segments and verticals to identify and interact with the unique needs of different types of customers to deliver a personalized service approach. When we understand how customers are using our product — and particularly their pain points — we can better target everything from our marketing and sales campaigns to all product-focused initiatives

Everyone in our organization knows customer retention is a team sport. Reaching out to customers to help solve product issues or when launching something new is not only possible but preferable. That’s precisely why we launched a customer retention program that treats flight risks as a pipeline and leverages tightly coordinated collaboration across departments to deliver impact to those customers.

Most importantly, these frequent and proactive touchpoints also allow us to learn what is working for our customers, which we’ve seen be a powerful motivator for our team.

Related: 3 Ways Founders Can Connect With Their Customers to Drive Sales

Don’t overlook the link between employee experience and customer experience

Being on the receiving end of an exceptional customer experience can radically shift the way we perceive a business. It turns out that when an employee has a hand in making that happen, it can be just as impactful for them.

This shouldn’t come as a surprise: today’s employees are looking for purpose in their work. Who doesn’t want to make a difference in the lives of others? Connecting this desire to customer success initiatives only makes sense — it improves the ability to deliver on customer promises and makes the workplace more satisfying for all.

And I believe organizations can take this connection a step further: pouring the same energy into employee experience that they do in fulfilling customers. In one of my previous roles, we would actively measure customer retention against employee retention and found a strong correlation between the two. These results were interesting but not shocking: prioritizing employee experience leads to more engaged employees, who, in turn, are motivated to create better customer experiences. Simply put, boosting satisfaction in one camp can effectively raise retention and productivity levels for both.

Of course, this balance isn’t always easy to get right. But in my experience, incremental improvements are what add up over time. Starting small is better than not at all. At the end of the day, the more your employees know, understand and care about your customers, the better they’ll serve them (and the more they’ll enjoy the results) — regardless of the role they are in. And that’s a true win-win for the bottom line.

Back in the 1970s, the use of credit cards by consumers was an emerging phenomenon, one that would ultimately fuel the growth of the U.S. economy to unprecedented heights.

The use of credit cards by entrepreneurs, by contrast, didn’t even exist.

Except in my world.

I was a teenager up in Nantucket when I opened my first moped rental company. It started out with my customers paying all cash, but ultimately, I was able to get a merchant account because credit cards were just coming into vogue. This was great for my business because it made it more convenient for my customers.

It would also become a powerful way to fund my purchase of additional inventory. While my customers were starting to use credit cards, I was personally receiving lots of offers from credit card companies. Back then, they would mail them to you, and you just used them or chose not to. I remember one of the Visa cards had a $25,000 limit. I soon realized that I could process my own credit card through my merchant account. If I timed it right, this afforded me 55 days of interest-free money. I did this for months before it caught the attention of the FBI, which came calling. That was a rude awakening and a harbinger for what would one day be outlawed by some credit card companies — that is, processing your personal credit cards through your merchant account as a way to raise capital for your business.

While credit cards can be a valuable tool for business growth, it’s also important for entrepreneurs to understand the risks and costs as well as best practices associated with it.

Related: 8 Ways to Get the Most From a Business Credit Card

So, let’s review:

Risks and challenges of credit card usage

High interest rates:

Credit cards typically carry higher interest rates compared to other kinds of financing, such as term loans or lines of credit. Businesses that carry balances from month to month may incur significant interest charges, which can lead to long-term debt accumulation and financial strain if not managed effectively.

Debt accumulation:

An overdependence on credit cards for business expenses can lead to debt accumulation, cash flow challenges and financial instability. This is especially true if businesses exceed their credit limits or fail to make timely payments. High levels of credit card debt can negatively impact credit scores, hinder access to future financing and make borrowing costs prohibitive.

Fees and charges:

As we all know, using credit cards may subject an entrepreneur to various fees and charges, including annual fees, late payment fees, foreign transaction fees and cash advance fees, to name a few. These additional costs can erode profitability, diminish the value of rewards earned and strain cash flow if not accounted for in the entrepreneur’s budgeting and expense management.

Related: 5 Small Business Credit Pitfalls to Consider Avoiding

Best practices for credit card usage — the fun part

Strategic spending:

Entrepreneurs should adopt a strategic approach to credit card usage, honing in on essential business expenses, recurring bills and high-impact purchases that contribute to revenue generation or cost savings. By prioritizing strategic spending, while avoiding unnecessary expenses that drain cash flow, businesses can better maximize the value derived from credit card rewards and minimize debt accumulation.

Payment discipline:

Maintaining payment discipline is critical for entrepreneurs. Doing so will avoid late fees, penalty rates and negative credit implications associated with missed or delinquent payments. Obviously, entrepreneurs should strive to pay credit card balances in full and on time each month to avoid interest charges and preserve cash flow for growth initiatives.

Monitor credit utilization:

Entrepreneurs should monitor their credit card utilization ratio — the percentage of available credit being used — to ensure they are not overextending their borrowing capacity or negatively impacting their credit scores. Keeping credit utilization below 30% of available credit limits can help businesses maintain healthy credit profiles as well as improve access to future financing.

Review terms and conditions:

Before applying for or using a credit card for business purposes, entrepreneurs should carefully review the fine print, or terms and conditions. This can relate to interest rates, fees, rewards programs and liability provisions. Understanding the terms and conditions can help entrepreneurs make informed decisions and mitigate financial risks.

Related: How to Choose a Credit Card for Your Startup

A note on diversification of financing sources

Explore alternative options:

While credit cards can be a valuable tool for short-term financing and working capital needs, entrepreneurs should explore alternative financing options, such as business loans, lines of credit or merchant cash advances, which will optimize their financial strategy. Each financing option has its own advantages, limitations and suitability based on business needs and objectives.

Build business credit:

Establishing and building a strong business credit profile is essential for entrepreneurs to access favorable financing terms, secure higher credit limits and expand borrowing options beyond credit cards. By responsibly managing credit card accounts, making timely payments and maintaining low credit utilization, entrepreneurs can improve their creditworthiness and incrementally increase their access to financing.

Something I have learned over the last five decades is that credit cards can play a significant role in supporting small business growth by providing access to capital, convenience and rewards. However, entrepreneurs must balance the benefits of credit card usage with the risks of high interest rates, debt accumulation and fees. By adopting best practices such as strategic spending, payment discipline and monitoring credit utilization, entrepreneurs can leverage credit cards effectively to fuel growth and mitigate financial risks.

Additionally, exploring alternative financing options and building a strong business credit profile can enhance financial flexibility and resilience, enabling entrepreneurs to achieve their long-term goals and aspirations.

3 Benefits of owning a Poolwerx franchise:

1. Start at any level of business models; upscale convenience.
2. Extensive training, marketing assistance, and executive support.
3. Benefit from a well-established, globally recognized brand.

Poolwerx, established in 1992, dominates as the largest global pool and spa maintenance franchise, with a strong presence in multiple countries including over 70 locations in the United States. The brand promises client satisfaction and provides comprehensive services such as pool and spa maintenance, remodeling, and supplies. Click Here to learn more about Poolwerx.

Show Me More Franchise Options

Key Facts:

• Minimum Initial Investment: $107,000 – $406,500
• Initial Franchise Fee: $49,500
• Liquid Capital Required: $50,000 – $150,000
• Net Worth Required: $100,000 – $300,000
• Veteran Incentives: 10% off franchise fee

It’s every entrepreneur’s nightmare. Our own version of Home Alone. You finally carved out some time for a much-needed break, only to return to work to find that everything went off the rails while you were gone. Projects are stalled, morale is in the dumps, and chaos seems to have taken up permanent residence. The minute you stepped away, the wheels fell off, and you’re left wondering if taking a break was even worth it. Sound familiar?

When this happened to me, my mind went running. One thing I know about myself is I will always try to figure out the root cause of moments like these instead of overanalyzing the symptoms — and in this case, I realized the root cause was fear.

I think of a leader as a stabilizer. Just like a capacitor in a circuit, they provide the steadying force that keeps everything running smoothly. When a leader is present, they absorb shocks, manage the flow of energy, and ensure that the entire system operates efficiently. But what happens when the stable force is removed?

1. Identify the root cause of resistance

Why are employees hesitant to take initiative when the boss is out? It is likely rooted in how we chastise and blame decision-makers. Sometimes, we hyper-fixate on the single point of failure, but the single point of failure is rarely a subject matter expert. They are usually a decision-maker.

It all comes back to fear — even experts will defer decisions because they fear things like job loss. Leaders often don’t recognize how pervasive this fear is in the current economic climate. It contributes to overreliance on a single decision-maker instead of empowering others to make choices based on their expertise.

Your first step in solving the problem of fear should be to create a culture that tolerates mistakes — or rather, where the shouldering of responsibility is incentivized. After all, failure stifles innovation. How can we do this? Get to the bottom of the fear.

I prefer a head-on, fact-based discussion where I ask questions like: What is fear to you? What is the worst-case scenario, or the worst, that can happen by speaking your truth right now? Then, I consider the impact. If you narrow it down to the worst-case scenario, you may find out that it is not actually that bad.

Related: Taking Breaks Doesn’t Make You Lazy — Here Are 4 Ways It Actually Makes You More Productive

2. Build trust through transparency

In doing business with folks from all over the world, I’ve ultimately learned a lot more about us as workers. The English language can be very unspoken and nuanced, especially in the workplace. Messaging can come with tones that sometimes divert people from hearing the intended meaning.

Your second objective is to foster a dynamic where feedback is direct and frequent — that cuts through the ambiguity. Clear, written feedback ensures everyone knows exactly what is expected of them. It eliminates guessing games and helps people understand how they can improve and contribute more effectively. Communicate openly about the reasons for and benefits of change to involve others in planning. Solicit feedback through multiple channels and address concerns to build buy-in.

Again, incentivizing is key. Consistent validation is like giving a helping hand to those who feel unsure or are uncomfortable with ambiguity. Regular encouragement and clear feedback can make all the difference. When roles and expectations are clearly defined, it eliminates the guesswork and helps people focus on their tasks with confidence.

3. Drive accountability for cultural evolution

When people feel comfortable failing, and your lines of communication are well-structured, your last goal is to establish clear roles and responsibilities aligned with the new vision. This step is crucial in reducing anxiety because everyone knows exactly what they need to do and how they fit into the bigger picture. This clarity not only boosts productivity but also ensures that everyone is working towards the same goals, making the transition smoother and more efficient.

Then, you should monitor progress holistically. Sometimes, being a leader is about constantly supporting and validating your team. Keep an eye on the broader organizational goals and make sure everything is on track, but also pay attention to individual efforts and successes. Regularly check in with your team, celebrate their achievements and offer guidance when needed.

Conquering fear with strategic leadership

Recognizing fear as the core obstacle to change allows for strategic planning. By continuously reflecting on and refining organizational systems, you can sustain a culture that evolves rather than stagnates. Put simply, leadership requires a balance of providing stability while empowering others to embrace necessary shifts. If you can foster an environment where failure is accepted, communication is clear, and roles are well-defined, you create a resilient and adaptable team ready to tackle any challenge, even when you’re out of office.

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