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Top 4 multichannel retail challenges and how to help your business succeed



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Selling with a strategy

Multichannel retail is subject to the butterfly effect, where whatever happens on one channel can affect your efforts in others. Small changes in channel strategy quickly spiral into struggles to maintain inventory, marketing efforts, customer service, and consumer feedback.

Knowing how to address challenges for your multichannel retail business will ensure you run a tight ship. Create strategies for each moving part, engage with your industry’s community online, and gather support and feedback where needed to help your business run more seamlessly and generate more revenue.

1. Overstocking and understocking inventory without a game plan

In the U.S. out-of-stock rates for online merchandising are much higher than the out-of-stock rates for one-stop shops. And the cost of inventory mismanagement — overstocks, understocks, and preventable returns — is nearly $2 trillion.

Having a solid inventory management strategy in place is essential for your multichannel retail business.

Customers will move on rather than wait if a product isn’t in stock or “will arrive in 3 weeks.” A solid inventory strategy can build credibility for your brand.

Inventory management is often thought of as the most challenging aspect of multichannel retailing. Each channel functions on its own, so change on one platform doesn’t translate to the next.

Birds eye view of assorted candles-2

For example, let’s say you have a collection of candles on your multichannel retail shop, Amazon, and Etsy. Your most popular scent, in particular, sells out but only marks as out-of-stock on your boutique site — neglecting the third parties. Now you’ll have to reach out to the buyers who purchased the missing candles. Let them know that the item is unavailable or will take an extended time to restock. Either option doesn’t look good for your brand or business.

A situation like this is avoidable with the right planning and strategy. And as a result, you’ll build your reputation and lower the cost of inventory mismanagement.

Inventory solution: Follow a 4-step process that steers clear of overstocking and understocking

A strategy will keep your inventory, logistics, and distribution functions in sync, to meet customer expectations across all retail platforms.

  1. Use a system for inventory management: As a multichannel retailer with a solid system in place, you’ll have a more accurate view of products moving through the supply chain. An inventory system aims to verify items match with barcodes and product tags to avoid discounts. The codes and tags offer accuracy — ensuring your stock level in the warehouse matches what you have in your digital system.
  2. Gather accurate data: Precision is crucial when it comes to collecting information for your inventory count to avoid running into untimely restocking. When looking at what’s physically in the warehouse, on paper, and in the inventory system, ensure the numbers are the same across all three areas.
  3. Dig into customer needs: From looking into trending topics (like what’s hot for the holidays), get clarity and dig into what’s intriguing to your audience. What are your competitors selling that you can add your own flair to in order to make it better? Stay ahead of the game to ensure you are the first business your target audience turns to. Knowing what is popular in the market will let you know what to buy more of to avoid understocking, as well as what to buy less of to avoid overstocking.
  4. Outsource a logistics supplier: While you have the option to invest in individuals and systems to get the perfect amount of stock, choose to outsource a logistics supplier instead. They already have the assets, knowledge, and experience to ensure your stock levels are tight.

2. Delivering consistent marketing and messaging across multiple social platforms

Social media heart symbol painted above someone's arm holding a cell phoneSocial media heart symbol painted above someone's arm holding a cell phone
Photo by Karsten Winegeart on Unsplash

For high engagement, brand messaging for your business needs to be the same across all social media platforms as a multichannel retailer and marketplaces. Your target audience will have a crystal-clear understanding of who they’re engaging with.

But many brands overextend themselves. Only 9% of marketers consistently engage with customers across multiple channels. Rather than remaining consistent on a few channels, they open themselves to more avenues and then struggle to maintain conversations with their audiences on each.

But whichever marketplaces your products are on, make sure your most active social media platforms are visible and accessible. Customers and potential buyers should have quick and easy access to your social channels to see what you, your brand, and your products are all about.

As a starting point to increasing customer engagement and connecting with customers, focus on one or two channels where customers engage most. Whoever follows you on those likely has an interest in your products or has already made purchases and is ready for more.

Marketing solution: Create space on social media through 3 customer-engaging tactics

  1. Get creative: Create polls on Instagram that provide knowledge about your brand, product history, plus different channels you sell on. What you share will be mini teaching moments for your followers to connect in a more meaningful way.
  2. Be interactive: Ask product-related questions in Facebook groups, on Instagram stories, or whenever you receive the most engagement. You’ll gather different perspectives from your audience to later apply to the type of products you sell.
  3. Use customer feedback: Social proof is everything. And with 92.4% of customers relying on online reviews to determine their future purchases, you’ll want to showcase the positive customer reviews to make your business shine. The firsthand, genuine remarks are what will attract future buyers to hop on the train to buy from you too.

3. Focusing too closely on your product instead of customer service

You can quickly lose a potential customer before they “walk through the door” if you’re giving too much attention to your products and not enough to them.

According to Bain & Company, a customer is four times more likely to do business with a competing brand if a problem they incur with your brand is service-related rather than price-related.

Also, Salesforce’s customer service facts found that you can boost revenue by improving customer service efforts. They say that an excellent customer experience is essential for building relationships with customers. And 67% of people say they’d gladly pay extra to get it.

With the perfect team and the help of automation in place, you’ll have high satisfaction results from customers.

Customer service solution: Scale your team and use automation

Customer service agent looking at laptop-2

Scale your team by having a point person handle customer inquiries. While the person in this position should have a strong background in customer service, allow them to lean on automation when traffic increases. The mechanization will heighten the chance of solid interactions and experiences.

Your customer support representatives should carve out time daily to cater to the needs of consumers. So, hire people who are big on genuinely interacting with customers.

For customers to immediately reach out, ensure your contact details are accessible. All information should be the same on each platform to ensure all customer questions and inquiries go to the same email address, phone number, or social media channel for direct messages.

Automation can come into play by implementing automated responses. A simple — “Thank you so much for reaching out! You will receive a response from a team member within the next 12 hours” — goes a long way, rather than leaving customers in the dark.

4. Evaluating your market without listening to customers

It’s easier to collect complex data than evaluate qualitative feedback or notice subtle signs. And subtle signs can be given to you if you ask customers for them.

Only one out of every 26 customers is likely to give feedback about their complaints. The rest of them take their business elsewhere. But you can increase the pool of customer feedback by letting customers know that you’re here to listen and make a difference.

Evaluating your market by tuning into customer feedback will help you guide your marketing efforts and increase customer satisfaction — which will determine if you meet their expectations.

Listening solution: Offer surveys to get clarity on customer needs

Because people now have shorter attention spans than goldfish, you need to offer quick and simple survey questions that get to the point and draw their attention, so you get the feedback you need. The more feedback you get from your target audience, the better you can cater to their needs.

For instance, let say you run a multichannel retail business that sells protein vitamins and supplements. Your newest protein powder claims to boost energy and metabolism faster than competing brands.

Rather than relying solely on market and sales data as a determining factor of success, personally reach out to customers for feedback.

Send out a blast email or text message, asking a few questions to buyers of the new supplement. Ask them about the pros and cons, as well as ways you may be able to improve the product. Overall, the goal is to show customers that you hear them — considering their recommendations and applying them to future products.

Optimize your multichannel retail business for consistency

Optimizing for consistency across each channel minimizes the chances of small changes turning into big problems. In turn, optimizing maximizes the chances of multichannel retail success. Focusing on enhancements is especially crucial if your business is booming and you’re working on expanding to new channels.

Bring your channels closer together by using a marketing dashboard for optimization. You’ll keep a closer eye on all moving parts of your operations, ensuring everything flows as perfectly as possible. And, of course, having a proper system running will help you stay competitive with cost and customer retention.

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Growing a Business

5 Ways to Control Your Inventory So It Doesn’t Control You



Managing inventory is a task that can make or break your small business. With too much inventory, profits suffer and storerooms overflow. With too little, items get back-ordered, customers get frustrated and business is lost. And striking a balance is hard, especially with disruptions to the global supply chain in the last few years causing delayed deliveries.

While you can’t control the supply chain, you can take steps to prevent common problems like product shortages and excess stock. Here’s how.

1. Stick to the story

Donna Daniel owns and operates three connected small businesses in Claremont, California: The Grove Clothing, The Grove Home and The Outdoor Store, which sell women’s clothing, home goods and unisex adventure-themed gear, respectively. To run all three of her stores, Daniel needs to keep an impressive variety and quantity of inventory in stock — and ensure it moves quickly to make room for seasonal items and new shipments.

To keep her inventory cohesive within each store, she arranges it in themed displays — or what she calls “stories” — which tie together dozens of different items to appeal to a color, season or activity.

“I don’t buy anything outside of the stories,” she says, which helps her collect data on sales and seasonal trends, and keeps her stock to what’s most likely to sell.

She keeps most of her inventory on the shop floor, with stock in each store’s backroom and larger items in a nearby storage unit. In the backrooms and warehouse, she stores items according to product type and size — not by story — so employees can easily restock displays and substitute a similar item if necessary.

2. Double down on your reliable inventory

“Just-in-time inventory is much more difficult to do today,” says Mark Baxa, president and CEO of the Council of Supply Chain Management Professionals, a global trade association for supply chain professionals. Baxa adds that since the supply chain is less stable than it was pre-pandemic, businesses may need to lean on their most reliable products and vendors.

Courtney Cowan, owner and founder of Los Angeles bakery Milk Jar Cookies, keeps supply needs and consumer demand stable with a very consistent product line. Her 16-flavor menu has “changed very little” in the bakery’s nine-year history, though she leaves room for a rare seasonal standout to join the rotation. Since her store pre-mixes and preserves dough in a deep freezer, she can ensure that her bestsellers are always in stock.

Though some businesses may prefer a bit more variety, in uncertain times — over-ordering on go-to products with a dependable profit margin can help fill the gaps and keep sales steady.

3. Keep products moving

Longtime retailers know that while running out of inventory is bad, having too much can be worse. “Too much backstock eats up all your capital,” Daniel says. She prevents this from happening by planning ahead and using sales sections to make room for new merchandise.

Daniel reorders seasonal inventory as far as a year ahead by using recent sales reports as a baseline. But with this commitment to hundreds of new products arriving every month, she makes sure that items don’t sit on shelves for more than a few weeks.

“I do not like merchandise hanging around,” she says, explaining that if an item isn’t clearing out quickly enough, she’ll move it to the sales rack and discount it until it’s gone.

Though selling an item for a fraction of its original price may seem painful, it may be worth doing to keep inventory moving and keep customers coming back for new products.

4. Get to know your supply chain

Especially in periods of supply chain disruption, getting to know your vendors can make a big difference in your day-to-day operations. “Hold your supplier base accountable,” Baxa says. He suggests finding the “shortest path” possible, including finding local and sustainable suppliers, to help ensure consistent, reliable supply.

Daniel follows the same principle, sourcing her inventory from mostly local vendors so she can pick up items instead of shipping. She weighs several factors, including production time, available quantity and shelf life to figure out how much to order and how often.

Cowan’s inventory is perishable, so she needs her wholesale ingredients to arrive on a tight schedule. Her bakery receives truck deliveries directly from the restaurant supplier Sysco and wholesale store Costco, which keeps her supply chain close to home.

“We keep it as centralized as possible,” Cowan says. For special ingredients like nuts and candy, she places advance orders with small online vendors.

Clear communication with vendors can help business owners figure out limitations, plan ahead and mitigate risk.

5. Use a point-of-sale system with inventory management tools

For the past five years, Daniel has been using Lightspeed, a POS system with standout inventory management tools. The software can track her inventory across all three of her stores, and it generates reports that help her analyze seasonal sales data and follow her businesses’ growth.

This data is essential for her to plan reorder points and determine which items will reliably sell. Especially with a small staff and multiple locations, an all-in-one POS system can help minimize costs and labor.

Best POS for inventory management

Lightspeed Retail POS

Cost: Software $69 per month (billed annually) and up. Hardware quote-based.

Lightspeed’s retail point-of-sale system is built for inventory management. It can keep detailed records of your products across multiple locations and set automatic reorder points, so you don’t run out. The software also offers employee and customer relationship management tools, as well as advanced analytics features on its higher-priced plans.

You have the option to use a third-party payment processor, or Lightspeed’s in-house processor with per-transaction fees at 2.6% plus 10 cents for swipe, dip and contactless payments and 2.6% plus 30 cents for keyed-in transactions.

Square for Retail

Cost: Software free and up. Hardware from free card reader to $799 terminal and up.

Square’s retail-specific POS software offers inventory management tools and multi-location capabilities as well. The free version has a variety of other useful features including reporting tools, customer and employee management. Email marketing, loyalty programs and payroll are available with a higher-priced plan or as a paid add-on.

Though its inventory management isn’t quite as deep as Lightspeed’s, Square’s user-friendly interface and accessible pricing make it a great choice for most retail businesses. Payment processing fees vary per plan, but with the free retail plan, costs are 2.6% plus 10 cents per in-person transaction, 2.9% plus 30 cents per online transaction and 3.5% plus 15 cents per keyed transaction.

Shopify POS

Cost: Software $29 to $299 and up. Hardware $49 and up.

Shopify’s point-of-sale system is geared for businesses that primarily sell online. The software tracks inventory, hides out-of-stock products on your website and offers basic inventory analysis. It also facilitates drop-shipping, curbside pickup and local delivery options, plus access to vendors and third-party applications.

Shopify helps businesses manage inventory across online and in-store locations. Its Pro version can create purchase orders, run inventory counts, perform advanced inventory analysis and generate low-stock reports. However, it’s not ideal for a business that only sells in store. Payment processing varies by plan, with in-person fees starting at 2.4% with Shopify POS Lite.


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Growing a Business

14 community management tips for meaningful connections with customers



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Community building blocks

The idea for sharing community management tips came to me about a year ago. That’s when I synced up with the GoDaddy Community team to host a webinar for small business owners. As hundreds of attendees rolled into the Zoom, I had a realization: “GoDaddy has a strong community.”

Behind every good brand and business, there’s a solid community of supporters, stakeholders, and sometimes, even haters.

But building a community and maintaining connections is one of the most misunderstood and least talked about topics within the small business world. For a business with fewer than five employees and a handful of customers, community building might seem like just another marketing tactic that is just out of reach.

To help small businesses build and manage an online community, I asked other business owners and marketers what community management tips they had for creating meaningful connections with customers.

14 community management tips to create meaningful customer connections

Given that creating and maintaining a strong community can help retain and attract customers, consider following these 14 community management tips:

  1. Be quick to address negative experiences
  2. Filter out spam
  3. Showcase success
  4. Send a postcard
  5. Get your customers involved in important decisions
  6. Bring Up topics that encourage engagement
  7. Provide talking points and engage with your community
  8. Engage regularly
  9. Be the face of your brand
  10. Choose a channel that works
  11. Create content that addresses customers’ specific needs
  12. Consider a brand ambassador program
  13. Reward loyalty
  14. Recognize the importance of inclusivity

Read on to learn more.

1. Be quick to address negative experiences

A bad customer experience can quickly escalate to a brand reputation crisis, and the company’s response must be fast to revert the situation.

Monitoring social channel mentions is an easy way to keep an eye on conversations surrounding your brand and detect potential concerns.

Once a customer posts a comment that threatens your brand reputation, listen, honestly apologize and be willing to solve the issue in the best possible way. Your unsatisfied customer will feel appreciated and perhaps even become a brand advocate.

-Rebeca Sena,

2. Filter out spam

The most important thing you should be doing in regards to community management is interacting with your community, and you cannot do that properly if you have to work through a bunch of spam. There are many programs out there, even some within the different social media sites, that can filter out spam in your comments and messages so you can focus on addressing your community. Plus, getting rid of the spam and moderating harmful comments creates a better space for your community to contact you through.

-Jacob Dayan, Community Tax

3. Showcase success

Develop case studies from your successful community members. This is a practical way of propagating the core values of your online community and encouraging new users to join your community.

The more these members contribute to the community, the more impact these case studies have. You can start by creating basic reports to identify the members who are actively contributing high-quality content, assisting other members, and elevating the community.

-Hasan Farahani, Yocale

4. Send a postcard

postcard with other travel items

Many of my customers spend $15–$20K on medical care in Latin America. I send my customers handwritten postcards to remind them of their journey, thank them for their business, and to stay engaged while they recover from procedures like dental implants or plastic surgery.

The cost in time and money is very low, but a human touch in the healthcare space is increasingly rare.

-Wesley Jacobs, Apollo Medical Travel

5. Get your customers involved in important decisions

Taking the time to follow up with your most active customers and getting their insights on important decisions makes them feel like their opinions are truly valued and cared for.

In the long run, this forges a strong connection between you and your audience that relies on more than simply a transaction.

An added benefit of doing this is that you may even get some eye-opening suggestions and creative ideas that could end up benefiting your business.

-Harry Morton, Lower Street 

6. Bring up topics that encourage engagement

Meaningful connections need to originate from a common source that offers a moment of relatability, which can further build brand trust. Social platforms offer numerous opportunities for these types of exchanges. When managing your social community, bring up topics that encourage engagement so you can connect on a level that goes beyond the basic company/customer relationship. In doing so, the consumer will feel more at ease to comment, ask questions and even provide more detailed feedback.

-Lindsay McCormick, Bite 

7. Provide talking points and engage with your community

It’s important to recognize that community management is an ongoing responsibility. If you want to see your community thrive, you must create opportunities for customers to voice their opinion, communicate with other community members and provide you with feedback. Finding success is contingent on your ability to encourage participation from users, so you must provide talking points and give them plenty of avenues to stay involved.

If you leave your community dormant without your administrative oversight, engagement will start to dwindle as fewer users initiate conversations and take part.

Communities rarely function autonomously, so be sure to play an active role as you connect with and safeguard your community.

This gives you a chance to speak with your customers on a personal level, helping you learn about their likes, dislikes, objections and pain points directly—all of which are crucial in building meaningful connections with customers.

-Mike Grossman, GoodHire

8. Engage regularly

The best community management tip is to engage regularly and don’t neglect questions or threads you didn’t start—even better if they aren’t getting a lot of feedback. If you’re lucky enough to have the opportunity to regularly interact with your customers, make sure you’re commenting often and have a badge next to your name letting them know you’re a moderator or part of the company. That will really cement that feeling of connection and letting members feel heard. Plus, we’ve found that a community manager can really breathe life into a topic by offering input and pushing it to the front of that community for more engagement.

-Sylvia Kang, Mira

9. Be the face of your brand

Revealing the human side of your brand is without a shadow of a doubt an efficient strategy to boost your customers’ connection. It conveys transparency and accountability, building a stronger human bond. Consumers tend to trust people more than a company, and showcasing real people will make you and your brand easier to remember and trust.

-Chiara Sternardi,

10. Choose a channel that works

social media apps on iphone

The best way to build an authentic community is to have everyone communicate using the same social media platform. Make that a crucial part of your strategy.

If it’s a professional audience that you’re going after, choose LinkedIn. If it’s a broader audience, use Facebook or Instagram. If it’s a young audience, try Snapchat or WhatsApp. If it’s a politically charged audience, maybe try Twitter.

YouTube is a great way to encourage people to watch videos that provide clear instructions on how a product or service works.

Users flock to YouTube for instructions on everything from how to change batteries on a device to playing scales on a guitar. The comment section can be useful for feedback purposes, and it also can be a way for customers to communicate with one another.

-Joel Jackson, Lifeforce

11. Create content that addresses customers’ specific needs

By creating audience and buyer personas based on different client categories, content marketers can create social content that speaks to people rather than just industries. Learn where your customers hang out online using your social media demographics. Then, narrow those results using audience research to help you define a specific audience and channel. You can then customize communications by researching the LinkedIn profiles of potential customers. Doing so will allow you to identify different stakeholders within the organization and determine their pain points. You can then create better content that addresses their challenges. But it’s all about finding an interesting angle for each segment.

Content that is too broad won’t result in authentic engagement with your followers.

Social media posts that offer helpful information are guaranteed to stand out in your clients’ feeds, resulting in more likes, shares and leads.

-Daniel Tejada, Straight Up Growth

12. Consider a brand ambassador program

A great way to create authentic connections with customers is with an acquisition and advocacy program like a brand ambassador program. For example, if a user can get five people to sign up for a service or product, they become an ambassador.

These brand ambassadors can help your business acquire new users. You can reward them with swag and access to special products or services … maybe even a special event!

-Jennifer Pieniazek, Resume Now

13. Reward loyalty

You can create meaningful connections by rewarding loyal customers to show how much you appreciate them. Just like any relationship, whether it’s personal or professional, people appreciate rewards. Show your customers that they matter and are top of mind in your decision-making. That’s how you create a stronger, more loyal customer base—one that will continue to pay attention for new initiatives and future rewards.

-Alyssa Berman-Waugh, Level Home, Inc.

14. Recognize the importance of inclusivity

To create meaningful connections with customers, recognize and accept diversities within your community. Each of your customers will differ in terms of their culture, orientation, ability and life experience. It’s imperative that you celebrate these differences and welcome input from individuals of all walks of life as you advocate for equity and inclusivity. This will develop your community’s reputation and attract diverse groups in greater numbers.

Communities that cater to just one group of people almost always become echo chambers, creating a suboptimal environment for connections to form and important discussions to take place.

By listening, asking questions, and welcoming input from diverse groups of individuals, you’ll cement your community as a welcoming place for diversity and insight to flourish.

In doing so, your ability to build a rapport and create meaningful, lasting connections with your customers will blossom.

-Patrick Casey, Felix

The community management tips used in this article were gathered using Terkel.
Terkel creates community-driven content featuring expert insights. Sign up at to answer questions and get published.

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Growing a Business

How Online Presence Makes Your Business More Trustworthy



Have you ever made a dining decision based on a review you saw on the internet? You may have picked a product because it seemed “more trustworthy” online. It’s also a deal breaker if it isn’t handled correctly.

Customers are more inclined to believe in your company if it presents itself well on the internet. Whether a startup or a large corporation, your online appearance and behaviour matter to your consumers if you own an offline or online company.

Online presence

Why Should Your Business Go Online?

In addition to being available for your consumers, here are other reasons to consider your online presence.

It Improves Your Company’s Accessibility

When you don’t sell anything online, a solid online presence can help you make more money from the internet if you aren’t engaged on social media.

Before making a purchase, most consumers do internet research to learn more about the company and the goods. Being at the right place at the right time is simply good business.

It Takes Care of Your Marketing and Branding

An internet presence provides a steady supply of customers for your company. Customer feedback and social media participation may help boost purchases. It’s easier for consumers to identify your online presence with a website or social media account.

It May Boosts Your Company’s Credibility

Having an online presence is essential for your organisation to be taken seriously. A startup might have difficulty being accepted as a legitimate organisation in its early stages. It’s essential to have a strong internet presence before people take you seriously. It’s easier to get quick loans at to expand your company.

It Aids in the Comprehension of Your Target Market

When you have an online presence, you can engage with your audience in a two-way conversation to get valuable feedback or evaluations. In addition, it helps you learn more about your prospective consumers and the things they’re looking for. If a restaurant uses polls on its Facebook page, it may determine which specials and goods are most popular with its patrons.

Businesswoman building an online presence

How Can You Evaluate and Enhance Your Company’s Web Presence?

Analysing your online reputation simply means monitoring what others say about you online. Then you make it work for you.

You can monitor and enhance your company’s online appearance by following these three steps.:

Monitor Mentions of Your Business

Monitoring your company’s internet mentions can help you track what’s being said about you and mitigate unfavourable publicity. This can also help you identify communication gaps.

Google Alerts can help you track online references of your company. Set up notifications for your business/product name and relevant keywords, and you’ll be alerted promptly whenever you’re mentioned anyplace online.

Analyse Your Website Traffic

The source of your traffic (and how much) might assist you in evaluating your internet presence. It may be necessary to expand your internet activities beyond your website. For example, low social media traffic might imply a poor social presence.

Tracking your website’s traffic with Google Analytics might reveal secret traffic sources that your Google search may have overlooked. It will also help you find unnoticed remarks or backlinks.

Assess Your Social Media Engagement

Your social media presence affects your online reputation as well. Active consumers on your social media platforms help build trust and confidence.

Consider checking a company’s and a competitor’s Facebook accounts. You may observe that one firm interacts with clients while the other has a few likes but no comments. Which do you prefer?

Social media presence for startup

Bottom Line

An active social media presence gives the impression of reliability while also conveying a sense of humanity and authenticity. Your audience will be more engaged as your social media presence improves.

To keep up with your target audience, you need to be one step ahead of them online. The first step is to become well-versed in everything your consumers discover about your company through the internet. Your internet presence must be understood, monitored, and improved to reach this goal.

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