Lets face it, none of us like confrontation. We all like to go through life with as little anxiety and stress as possible and whether it be in a personal or in a business relationship we hate the prospect of having to deal with someone who is annoyed with us for one reason or another. In business you have plenty at stake and must ensure that you take on this kind of problem immediately should it arise.

Here are eight steps to take, to initiate damage control and to recover your unhappy customer:

1. The first thing that you must do is fully understand what is going on. Listen and gather all the facts, at least as far as they appear to the client, and be neutral. You can’t express any opinions, one way or the other unless you know what the problem is, but rather as you listen, summarize and make sure that you understand the issue in its entirety.

2. Strike while the iron is hot. Never leave an extended period of time go by and expect the situation may defuse somewhat through the passage of time. This is never the case and will likely exacerbate the situation. A rapid response is essential and will in itself be seen by the disgruntled client in a positive light. No matter how the situation could potentially have been resolved, a certain amount of damage will be done in any respect if you do not respond promptly.

3. Take responsibility for what is happening. The issue may well involve one of your staff, but understand where the buck stops. You are the one who has to do the damage control here and must understand that every element of your organization is within your control. The client will invariably see this as well and you must take ownership of the problem.

4. Apologize. At the very least, you are apologizing to the client that something has happened to make him or her upset in the first place. This does not necessarily mean that you are internally accepting blame for the entire situation, but you must be empathetic and come across as being so. Never be defensive and trot out a whole bunch of excuses at this stage.

5. Find a solution. This should involve your client as much as possible and you should be prepared to look at several alternatives and potential outcomes. This is where some skill will come into the position and you will have to be prepared to “think outside of the box.” Do as much as you can, within reason of course, to find a solution that will more than satisfy the disgruntled client.

6. Try not to pepper your discussion with a whole bunch of excuses. You may have to elaborate on a few reasons for the delicate situation, after all part of this dialogue is rebuilding confidence between you, but don’t be tempted to appear as if you are “passing the buck” or providing a rationale to explain why this happened. Again, be diplomatic.

7. Offer a gift. Without going overboard and “giving away the farm,” you can often offer the client some kind of discount or additional benefit as atonement, in part. Again, you do not necessarily have to appear as if you are paying for your errors, but a subtle yet meaningful offer is often appropriate.

8. Maintain communication. If you have an open and regular dialogue with your clients, situations like this may not arise in the future. When you are trying to get closure for the recent situation, you should definitely follow up with clients to see that things are now proceeding more smoothly. However you can, make sure that a similar situation does not arise again.

If you follow these steps, you should defuse the situation and it should even strengthen your relationship. Bite the bullet!

Have you got any tips to recover an unhappy customer?

Adam Toren

Very often, your business website will be your primary window to the world. As such, you must take a great deal of care and patience when putting it together. In many cases your business will not have a physical address and as such, your website will be your storefront. If you want to have “curb appeal,” then you have to bear some key fundamentals in mind.

You must be in control of your site, which means that you should, ideally, post all its content on your own accessible server. You will need access to the site at your convenience and not according to another company’s whims. Ensure that you choose a software platform that allows you to interact with your site without the need for complex coding knowledge. The more difficult it is to interact with your site, the less often you will want to mess with it and this would be highly detrimental to your long-term goals. If you are looking for a very simple solution, check out Homestead, whose website options are user-friendly and “what you see is what you get.”

Understand that the Internet works in a certain way. You need to have a basic comprehension and know how the search engines work. To achieve maximum visibility your website needs to appear in a prominent position whenever someone searches for information on your particular product or service. This is easier said than done, as the search engines use somewhat complex algorithms to determine what qualifies and what doesn’t. Be prepared to engage in a certain amount of “search engine optimization” which will help you to optimize your site, using certain code and structure. You can either search for the help of experts in this field or if you want to dip your toe in the water and cover the fundamentals, know what your keywords are. Include these words within your page content, file titles and page titles.

If you were writing a book, you would take time to map out your approach. You would devise chapters, titles and come up with a natural progression so that the book would be readable. Take time to plan your website in the same spirit. You will undoubtedly have a number of different pages, covering a number of different topics – one for each of your products or services, for example. Make sure that your home page, which is the primary point of entry, gives a very clear and succinct description of your operation. Links from your home page must be clear and unambiguous and allow the visitor to easily find all your information.

It has been proven that visitors spend very little time on each page when they are surfing the web and you have, consequently, not much time to give them information to try and persuade them to buy your goods and services. Many surfers tend to look for “FAQ” sections first, as they know that they will generally find bulleted abbreviations and be able to scan through quickly. As such, compile your FAQ and make sure that it is prominently linked to from your home page.

These days, as social media marketing is such a powerhouse, you really should consider maintaining a blog as part of your business website. Some companies maintain a separate website for their blog which they develop as an information portal, first and foremost. You can really help to show your expertise and build a good following by avidly maintaining a blog element to your website. Your business will come across as being much more reachable and “touchable” and will, after a period of time, retain its own social buzz.

While you may maintain all of your business via the Internet, you can be sure that potential customers will want to know more about your business and will require some reassurance. Your contact information page is very important and you should include a photograph or two of the proprietor. People like to see photos of real people behind these sites. In addition, you must include a phone number for customer service follow-up and peace of mind and a physical address is highly recommended as well.

Once you have your business website up and running make sure that you try and maintain it as often as possible. Get to know about search engine optimization and make it as visible as you can. Try and track any business initiatives through readily available software. Google Analytics will help you see where your traffic is coming from and if your promotions are converting, helping you to keep on top of your game.

Do you host your own site?

Matthew Toren

Donald Trump suggests “the best business reading books for the summer.” Warren Buffett simply says “read, read, read.” There are thousands upon thousands of business books with new ones coming out everyday. Budding entrepreneurs often think that they have enough on their hands without spending “valuable” time reading books. In truth, you should have a voracious appetite for business books and classify the time that you spend reading them as a significant investment in your future. Here are some of the best business books around to start off with:

Influence: The Psychology of Persuasion (Collins Business Essentials)

Robert Cialdini, PhD

According to Cialdini, there are six principles of influence inherent within us all as human beings that a business practitioner should embrace and engage on a daily basis – reciprocity, consistency, social proof, liking, authority and scarcity. Each principle of influence is exhibited by us all and anyone who truly understands these principles and is willing to use them advantageously will be successful within any sphere of life and most notably in business. This book is very useful for those looking to hone their negotiating and sales skills.

The Practice of Management
Peter F. Drucker

This was the first book to take a real look at the world of management as a whole and was very revolutionary when it was first published in 1954. It has remained a classic since that time and most of its principles hold true to this day. The book establishes the role of the manager and his or her position within the multidisciplinary practices. Drucker was way ahead of his time when he realized that significant performance could be achieved within an organization willing to categorize and motivate its workforce appropriately.

How to Win Friends & Influence People
Dale Carnegie

This book was published in 1937 and is the definitive work on the essential topic of people skills. It is required reading for everyone in the business world. It promotes the need to be empathetic and to treat others the way that they would like to be treated. Through giving, one will receive. By building people up instead of taking people down you are far more likely to achieve your goals. Today many books have been written expounding the theory, but Carnegie’s epic is still the best. Prime location on your bookshelf.

10 Natural Laws of Successful Time and Life Management
Hyrum Smith

You don’t have to be in business for long to understand that your biggest challenge is likely to be time management. You may have the coolest ideas and the loftiest goals and the strongest work ethic, but if you don’t have your time under control you will likely not succeed. Smith maintains that you need to leave your comfort zone or you have little chance of success and advocates the display of integrity, character, self-confidence, self-esteem and drive. When you are feeling overwhelmed, put down, harried or spent, flick through and gas up on Smith’s techniques.

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It
Michael E. Gerber

Gerber tries to dispel many myths with this book, but what may be its best ingredient is the fact that it promotes you to think outside of the box. He maintains that you should not work in your business but should work on it and be very careful about classifying it as just a miserable job, albeit subconsciously. Some are not happy with his analogies, while many find them refreshing. “Nobody’s interested in a commodity. People buy feelings. Find a perceived need and fill it.” Gerber preaches at us to hate the comfort zone.

Have you read any good business books lately?

Matthew Toren

There is a reason that the phrase “growing pains” exists in the first place, isn’t there? It tends to be used in reference to the trials and tribulations of life that we all go through as we develop from infancy through adolescence and into young adulthood. We can certainly draw an analogy within the business world and we can even place more emphasis in this arena. For a new business to succeed and not fail, its owner must pay particular attention to the various phases of growth and understand that each step is a necessary part of the road through survival to prosperity.

When you are planning a new business it is not okay for you to go running headlong and headstrong into the unknown with your winning idea in tow, no matter how cutting edge or inspiring it may be. You must make sure that you’re able to construct a solid foundation beneath it, so that you may build as high as you possibly can.

Even though you may have considerable experience in the world of business, you should not assume that you can “shortcut” your way to success in your new endeavor. Certainly, your experience in the real world will stand you in good stead in terms of marketing, customer relations and so on, but you must start with your clean sheet of paper each time.

When you are starting out, there will always be an element of “groping around in the dark.” What you are doing is trying to determine the makeup of your ideal customer and working out how to set your service and/or products apart – creating your unique selling proposition. Don’t even think about designing your website yet, as you must first be absolutely sure of what you are trying to do, what you are trying to sell and who you are trying to sell to. Time spent here will pay enormous dividends as you move forward and will eliminate a lot of potential confusion and the threat of having to go back to the drawing board.

When you are sure that you have your idea mapped out and have determined your market, you will then need to be careful that what you deliver is very consistent and goes beyond, in terms of customer experience. As you deliver, consistently and successfully, you will start to get good testimonials, good referral work and may now start to believe that your business exists as its own entity. During this phase be sure that you are able to grow while also at the same time providing an unerringly high level of customer service. This is where you develop trust.

Do not be tempted to fly off in different directions when you finally start to build momentum. It is important to constrain your enthusiasm and make sure that you are striving to be the best at what you do. Many business owners make the mistake of cutting themselves too thinly in this way and find that their core business may indeed suffer.

There will come a time when your business has become so established that you will need to delegate responsibilities. This can be a difficult realization sometimes as we all tend to have the belief that “things are only done correctly if I do it myself.” You must be ready to delegate at the right time and must ensure that you exercise the same level of diligence in selecting teammates as you have exercised to get to this point in the first place.

If you have paid solid attention to all the aforementioned factors you should find that your business is now built on a very solid foundation, has a good track record, loyal customers, a productive referral system and some built in safeguards, or safety nets as well.

Success breeds success, as they say and you will find that the opportunities start to outweigh the threats and that your strengths also overcome your weaknesses. You’re now destined for the big time!

Tell us about your growing pains?

Adam Toren

Okay, here’s a teaser for you. What kind of word can you come up with that incorporates some or all of the word “Twitter” to describe a useful business application, tool or service? You have to think that virtually every vowel or syllable combination, acronym or tongue-twister has already been snapped up. Here’s one – twittopten – not an application, but the title for this blog post, detailing the top ten Twitter applications for small business.

Tweetmeme – the place to go to see how many “tweets” the most popular submissions attract. If you are looking for something hot and appropriate for your niche to retweet, here it is.

Tweetlater – if you can see the value of Twitter for your business but are a time management freak, then this app will let you schedule your tweets so that they will be sent out on a regular basis without you having to worry about logging in to do so.

TwitterMass – there are a bunch of these mass “friend adders” out there, but TwitterMass reckons that they have the definitive solution. It’s a paid service, starting at 24 bucks, and their proprietary technology ensures that your “list building” strategies are more targeted than others.

Twist – if your business is involved in affiliate marketing in any way, then you should check out Twist. See which trends are hot right now within a variety of searchable topics and niches.

TwitterContd – if you thought that the Twitter universe was only 140 characters long, then you might be in for a surprise by checking out this application. Now you have up to 1250 characters to compose your best pitch and can upload images, video or audio at the same time.

Twiggit – we all know the importance of bookmarking and this app combines the power of Twitter with one of the best bookmarking services out there. Whenever you “Digg” an article, this app will automatically update your Twitter status with the link.

Twitter Toolbar – get Twitter at your fingertips when you download this toolbar. All the tools will now be at the top of your browser together with stats and a quick and easy place to post an update. Good for IE or Firefox.

Twitoria – get rid of the dead wood, find out who they are, so you can purge those users who do not actively tweet.

Monitter – this is a good one, allowing you to keep an eye on a live streaming view of what Twitter users are saying about your business! Just insert a well thought out keyword or two and the area that you would like to monitor.

Twitter Gallery – if you have a business-oriented Twitter account, you really should have a well thought out background theme. If you don’t have one custom made, surf through Twitter Gallery’s collection for something “off the wall.”

What’s your favorite Twitter application?

Adam Toren

There can be enough to worry about when you are starting or expanding a new business without having to spend time analyzing your hardware and software needs and fretting about the latest versions of this tool and the functionality of that one. The size and scale of your enterprise will, of course, determine your actual requirements but fundamentally a small business needs:

Communication software.

Few companies rely on “snail mail” these days as technology demands that we communicate almost instantaneously. Desktop e-mail software products provided by companies such as Eudora help to compartmentalize, project your brand image and save you from the dreaded spam mail all at the same time. An increasing number of companies are looking at “voice over Internet” protocols to cut down on hardwired land line phone costs and companies such as Skype provide web based software applications. Mozilla’s Firefox is now well known as a provider of an alternative to Microsoft’s Internet Explorer, but we have not had the chance to evaluate their e-mail platform, Thunderbird.

Accounting software.

There are a huge variety of excellent accounting software packages available and they can directly interact with tax preparation software suites. These days you do not need to be a CPA or have a degree in accounting as the software is very user-friendly. At tax time, products designed for corporations, LLCs or sole traders walk you through your liabilities. Freshbooks offers a new twist to this arena and the “fastest way to track time and invoice your clients.”

Productivity software.

Microsoft’s Office software suite was once the dominant player in the sphere of office productivity, with word processor, spreadsheet and various other functional templates available to help you write letters and crunch numbers. Other players are available in the market today, including Open Office, whose products are free.

Security software.

In terms of security, the very least that you will need is a working and constantly up-to-date virus protection product. Norton and McAfee may be the most well known, but AVG has a growing reputation and is free.  Also, if you feel that your premises are vulnerable you should also consider surveillance cameras linked to security software to record anything untoward

You may also need:

Database software.

There are many excellent software programs available to help you manage leads, import databases and generally interact with potential clients. These programs can be worth their weight in gold if you have an active salesforce and want to avoid duplication and confusion, to say nothing about maintaining your professional image. They may be highly rated, but would you choose a time management software product called Chaos?

E-commerce software.

If you don’t have a physical storefront, you may want to conduct some form of e-commerce. If you have a website and wish to sell your products and services, software providers can set you up with a shopping cart linked to your site and provide a gateway to credit card processors. There are dozens of options and ecartsoft is one of the most visible, offering easy setup “within seven minutes.”

DTP software.

Just as snazzy accounting software products emerged to relieve you of the burden of dealing with an accountant, so the latest desktop publishing software packages can bring out the creative graphic artist in all of us. Hundreds of different product developers are waiting to serve you, including some of the better-known ones, Adobe and Corel. Scribus is open source and has solid reviews.

Tell us about a particularly helpful software product in your office?

Matthew Toren

If you learn nothing else when studying the habits of effective entrepreneurs, make sure that you do your best to understand the importance of time management. Almost without exception, the really successful business person has this down to a fine art and ensures that the people surrounding him or her do also. Time management is not about doing things faster, but it is about the more productive use of that time. We all have exactly the same number of hours, minutes and seconds available in a day. The way we use that time is going to set us apart from the average.

Here are 20 top tips for time management:

1.Make sure that you know what your goals are. If you do not have this primary focus, how can you plan your activities?

2.Don’t waste time on non-productive matters. Once you know what is likely to get you results, focus only on these issues.

3.Make a list. Prioritize your tasks and itemize each step. Be concise, focus and make sure you reach your target.

4.Don’t be swayed. There will always be something small which could be classified as “urgent”. Maintain your focus on the big plan.

5.Schedule. Prioritize your larger activities and fit all the others around them as they are more flexible.

6.Plan each day. At the start of the day take a short amount of time to focus in on what you need to do. When you’ve done that, get working and don’t spend too much time planning!

7.Virtual help. There are a number of first-class time management programs and applications available, use these to your benefit.

8.Have some flexibility. Ensure that your schedule is not absolutely rigid and try and build in some time for the fun things in life.

9.Allow for education. You must always better yourself.

10.Consult for greater efficiency. Get expert help to consolidate your performance and efficiency.

11.Do it right the first time. Concentrate on doing a good job and avoid having to repeat your work.

12.Be honest. You have to ask yourself whether you are achieving your goals according to your plan. Don’t be afraid to change, if you are not.

13.Bite the bullet. It’s no secret that we are always looking for excuses not to complete the least pleasant tasks. Therefore, swallow hard and do these first, as if you keep putting them off, you will run out of time.

14.Act now. Always make decisions, implement them and never procrastinate.

15.Be on time. Never be late and make sure you instill this virtue upon your staff.

16.Make it easier. Don’t panic if you have a seemingly huge task in front of you, break it down into smaller pieces and it will seem more manageable.

17.Get help. Surround yourself with competent people – delegate and outsource as much as possible.

18.Be more efficient. Pace yourself and be effective in time management and be careful that you don’t stress yourself out.

19.Know yourself. None of us are superhuman and we must pay heed to what our body is telling us. Make sure that you maintain optimum efficiency to be the most productive.

20.Get a life! You must have balance. Don’t neglect family, friends or hobbies or you will end up asking yourself – just what is the point in all of this?

Don’t forget that you are focusing on time management so that you can be efficient – allowing you to enjoy your life as much as possible. Do you follow this mantra?

Adam Toren

As an online retailer, there is nothing quite as frustrating as the thought of a would-be shopper canceling his or her sale at the last moment due to the so-called “abandoned shopping cart syndrome.” This happens much more often than we would like to think – in an estimated 65 to 70% of all potential transactions! Whilst we all understand that virtual commerce is a completely different ballgame and that we often have no direct control over the actions of a potential client, there are nevertheless a number of lessons to be learned and a number of initiatives to be addressed if we want to try and rid ourselves of this on line skittishness!

One of the first things to do is to make sure that you have your tracking and testing procedures in place. You need to know what kind of a problem you have and you should analyze your reports to see how many people visit your checkout pages but do not consummate the transaction. Once you are aware of the scale of the problem, you should take steps to mitigate, as much as possible.

We can anticipate the reasons behind last-minute abandonment:

Design issues. Make sure that your customer experience is first class, all the way from the home page to the thank-you page. Put as much effort as you possibly can into making your site user and visitor friendly and make sure that each of the projected steps taken by a client is clearly projected. If you have a small operation make sure that you bring in an additional set of expert eyes to look over your site and give advice. Sometimes you can’t “see the wood for the trees”.

Eliminate sticker shock. Always make sure that the client is aware of the total projected cost, including shipping and taxes. Very often there is a significant change in the final tally due to these add-on items and a potential sale can be abandoned. Studies have shown (including a report commissioned by PayPal and conducted by comScore in May 2009) that high shipping cost was the top reason for cart abandonment. Show those shipping costs up front.

Security. It goes without saying that you must provide a secure environment for any online financial transactions. This is not only expected but makes good business sense. Make sure that you bring your security efforts to your visitors attention by referencing your secured checkout page (https), data encryption and external verification services.

Social proof. Incorporate testimonials, user reviews and product ratings. People like to think that they are doing the right thing and they like to see that their peers have enjoyed a good experience and are happy with their purchase.

Payment options. Try and offer as many payment solutions as you can, bearing in mind that a significant proportion of the population, especially those of a younger age, may not have access to a credit card.

With an astounding 98.7% of website visitors not returning – even if they have made a purchase before – you need to do everything within your control to ensure that they have an enjoyable and fulfilling visit, all the way through to the thank you page, hopefully to return again.

Have you ever quit at the last moment? What causes you to abandon an online purchase – let us know.

Matthew Toren

It really isn’t too difficult to protect yourself from cyber criminals if the first asset you bring into play is your common sense. A lot of the time people who fall victim to crime committed via the Internet have simply not taken adequate precautions or behaved the way that they normally would in every day life. Sometimes it seems as if caution is thrown to the wind when we get on the computer, whereas in reality we should take additional precautions as it is very easy for would-be criminals to hide from you online.

One of the first things that you should do to protect yourself from cyber criminals is to exercise care in storing your information. Ensure that you use the latest in firewall technology to protect people from accessing parts of your computer where personal data may be stored. It rather goes without saying that you should never give out your password to anybody, under any circumstances.

Some people choose passwords that represent easily identifiable words or names. For example, they may use the name of their pet cat. To be really effective a password should contain a random assortment of letters and numbers – but make sure that you don’t forget it yourself until you have committed it to memory!

When opening and checking e-mail try and make sure that you know who the sender is. Any e-mail that asks you for confidential information should be ignored. There are a number of common scams where cyber criminals pretend to represent well-known bodies, such as a government portal or a popular online payment processor. These organizations do not send you e-mails out of the blue asking you for your personal information, ID numbers or passwords, so bear that in mind.

When you are making online purchases make sure that you only do so through secure means. You should check the up-to-date security procedures carried by the payment provider and look for the “https” designation in your web browser at the top of the page. This signifies a very secure and encrypted interface. Others will not be able to see your credit card details or use the data for their own use.

Whatever you do, don’t be fooled by those e-mails telling you that you have won something and that you must send some information to the sender in order to “process” your winnings. You would be surprised how many people do fall for this approach.

When it comes to your children, make sure that they cannot fall victim to sexual predators by having unrestrained access to the Internet. There are plenty of tools and procedures out there enabling adequate parental control these days.

What precautions have you got in place to protect yourself from cyber criminals? Have you been a victim of cyber crime?

Adam Toren

Companies seem to devote most of their time and efforts to new business, persuading prospects to come on board to sample their products or services. Few seem to devote an equal amount of time to the retention of existing customers. If they took the time to analyze their records they might see that the amount of revenue gained from existing customers will continue to increase as time goes by, when expressed as a percentage of total income. This means that if you retain the loyalty of your best customers you can effectively decrease your overall advertising spend as you will not have to dedicate as many of your valuable resources to the scattershot approach.

Whilst in the early days of any business the objective is to get clients, you need to ensure that you are also over performing when you receive these customers. You must “under promise and over deliver” in all cases, so that the client is more than happy with his or her experience. Understand, however, that you can never please everyone all of the time and you will certainly have your ups and downs when it comes to client interaction. However, you should structure your company so that CRM – client relationship marketing – is to the fore.

Make sure that your staff are all empowered to do whatever it takes to ensure customer retention. You should allocate dedicated funds to the improvement of CRM. Make sure that you can over deliver and do so on a regular basis.

If you understand that, in an established business, it is typical for as much as 50% of your revenue to come from just 10 to 15% of your customers, then you will see that you need to maintain that level of loyalty at any cost. Focus on exactly what the customers want and give it to them and make sure that you know who your better customers are. Be prepared to make some sacrifices if need be, by even getting rid of some clients who are more trouble than they are worth.

A happy customer will likely provide you with referrals, either with or without prompting. This is of course highly valuable, as word-of-mouth is one of the keys to building a successful business. We have all heard of the term “social proof” and you should make sure that, with your customer’s approval, you make best use of testimonials, endorsements and referrals through social networking and advertising.

In marketing dollars it costs far more to try and replace a lost client so you should dedicate good resources to keeping those hard-won customers.

How do you make sure that you are keeping your customers happy?

Matthew Toren