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National Leadership Day, which takes place every Feb. 20, offers a chance to reflect on what truly defines leadership – not just strategy or decision-making, but the ability to build trust. In an era of rapid change, when teams look to leaders for stability and direction, trust is the invisible currency that fuels organizational success. As an economist, I know there’s a lot of research proving this point. I’ve conducted some myself, including work on how trust is essential for leaders in cross-cultural business environments. In an expansive study of China’s fast-paced restaurant industry, my colleagues and I found that leaders who cultivate trust can significantly reduce employee churn and improve organizational performance. While my study focuses on one sector, its lessons extend far beyond that. It offers insights for leaders in any field, from corporate executives to community organizers. Understanding the impact In China, as in the U.S., the restaurant industry is known for high turnover rates and cutthroat competition. But our study found that managers who demonstrate trustworthiness can keep employees from fleeing to rivals, creating a more stable and committed workforce. First, we conducted a field experiment in which we asked managers at around 115 restaurants how much money they were willing to send to employees in an investment game – an indicator of trust. We then found that for every 10% increase in managers’ trust-driven actions, employee turnover fell by 3.7 percentage points. That’s a testament to the power of trust in the workplace. When managers are trustworthy, workers tend to be more loyal, engaged in their job and productive. Employees who perceive their managers as trustworthy report higher job satisfaction and are more willing to exert extra effort, which directly benefits the organization. We also found that when employees trust one another, managers get better performance evaluations. That makes sense, since trust fosters improved cooperation and innovation across the board. Practical steps to foster trust Fortunately for managers – and workers – there’s a lot of research into how to be a more trustworthy leader. Here are a few insights: • Empower your team. Let employees take ownership of their responsibilities and make decisions within their roles. This not only boosts their engagement but also aligns their objectives with the broader goals of the organization. Empowerment is a key strategy in building trust. • Be fair and transparent. Managers should strive to be consistent in their actions, address concerns promptly and distribute rewards equitably. Those practices can create a psychologically safe and supportive work environment. • Promote collaboration. Encourage an atmosphere in which employees can openly share ideas and support one another. Activities that promote team cohesion and open communication can significantly enhance trust within the team. • Measure and manage trust. Implementing regular surveys or feedback sessions can help assess and manage trust levels within an organization. Consider integrating trust metrics into performance evaluations to emphasize their importance. Some takeaways for National Leadership Day Whether helming a business, a nonprofit or a local community initiative, leaders should recognize that being trustworthy isn’t just a “soft skill.” It’s a measurable force that drives success. By making trust-building a deliberate goal, leaders can create stronger, more resilient teams. So this National Leadership Day is a good time to reflect: How do you build trust in your leadership? And how can you foster a culture of trustworthiness? Managers should commit to leading with trust, acting with integrity and fostering workplaces where people feel valued and empowered. The impact will speak for itself. Yufei Ren is an associate professor of economics at the Labovitz School of Business and Economics at the University of Minnesota Duluth. This article is republished from The Conversation under a Creative Commons license. Read the original article. View the full article

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Andrew Brodsky is a management professor at McCombs School of Business at the University of Texas at Austin. He is also CEO of Ping Group and has received numerous awards, including being chosen by Poets & Quants as one of the Best 40-Under-40 MBA Professors of 2023. What’s the big idea? Instant messaging, email, video calls, and other digital tools have largely replaced in-person communication for most workplaces. We have all become virtual communicators, and with this comes a new set of rules for interpersonal success. The PING framework distills best practices for optimal outcomes when relying on technology to communicate. Below, Andrew shares five key insights from his new book, Ping: The Secrets of Successful Virtual Communication. Listen to the audio version—read by Andrew himself—in the Next Big Idea App. 1. P is for perspective taking. When interacting virtually, misinterpretations and misunderstandings are more likely. But this is due to more than the commonly cited fact that we pick up on fewer nonverbal behaviors. In person, it is hard to forget that you are interacting with a human being because they are standing right in front of you. But when looking at a thumbnail-sized video of the person you are interacting with, hearing only their voice through the phone, or seeing nothing but their words in an email, it can be easy to forget that another person is on the other end of your communication. As a result, there’s a tendency to be more self-focused virtually than when interacting in person. To see this in action, think of a song you are confident other people would recognize. Then, tap out that song on the nearest hard surface. Once you’ve done that, estimate how likely it would be for someone else to identify the song if you tapped it out again. This same scenario was played out by Stanford researcher Elizabeth Newton. She found that participants expected 50 percent of listeners would be able to correctly identify their song. However, listeners only recognized the song three percent of the time. This huge discrepancy happens because we hear the music in our heads as we are tapping it out, so it seems obvious to us. All the listeners are just hearing a series of taps. The same applies to virtual communication. We may think our meaning was clear, but because we are so self-focused when interacting from behind a screen, we don’t realize the person on the receiving end doesn’t have the same context for accurately understanding our meaning. What you think is an obviously friendly and supportive email may come off as condescending to your coworker if they aren’t privy to all the same information as you. The solution is pausing to consider the recipient’s perspective before sending or speaking a message virtually. One research-proven strategy for this in text-based communication is reading aloud what you wrote in a different tone than you intended, such as sarcastic or enthusiastic. Does the meaning drastically change? Knowing that the voice someone hears when reading a message isn’t necessarily the same one you heard while composing it will help avoid self-focused overconfidence that leads to misinterpretations. 2. I is for initiative. You may have heard about the Fyre Festival debacle in 2017, when a team led by Billy McFarland created hype for a festival that was supposed to have the best of the best in food, music, celebrities, and even buried treasure. What festivalgoers actually found when they arrived were barren parking lots, soggy cheese sandwiches in Styrofoam containers, and a lack of bathroom facilities. Pretty disappointing for what was billed as the “biggest FOMO-inducing event” of the year. This incredible mismatch in expectations and reality resulted in a $26 million fine and jail time for McFarland. In virtual communication, there’s often a disconnect between impressions and reality. Consider how these disconnects can make someone who works incredibly hard seem like a low performer. Imagine you are a manager with two subordinates. From one, you get a single five-paragraph email each Friday about the work they did for the week. From the other, you get a few-sentence email each day, updating you on their tasks. Which one seems to be a harder worker? “To show effort and engagement, take the initiative to communicate more frequently.” Despite the fact that both employees sent the exact same amount of text, if you are like most managers, you will say the employee who sends a brief few-sentence update each day is a harder worker because that employee seems like they are likely working each day. The one who sends the longer Friday update might just be doing all their work at the end of the week. This is why an important strategy in virtual communication is taking initiative in showing your effort. Whether sending an email to your boss while working remotely or sending them an instant message from the next cubicle over, without taking this kind of initiative you end up in the of out of sight, out of mind pitfall. To show effort and engagement, take the initiative to communicate more frequently. Also, turning on your camera during meetings can help to show that you are physically and mentally present. These small steps make it more likely that those you interact with will perceive your work as a high-end lobster feast as opposed to a Fyre festival soggy cheese sandwich. 3. N is for nonverbal. A Canadian farmer got himself into trouble when he responded to a customer’s text about an order of flax seed with a thumbs-up emoji. The issue was that the customer thought the thumbs up meant the contract was accepted. The farmer disagreed, saying he hadn’t planned on accepting it just yet. The court sided with the customer, stating that the thumbs up constituted a legally binding agreement. The farmer had to pay almost $62,000. Undergraduates and MBA students often ask me, “Should I use emojis in my virtual communication?” The answer isn’t simple because research shows emojis can help or hurt depending on the situation. Don’t focus so much on what cues are best or worst. Rather, pay attention to how the person you are interacting with communicates and become a conversational chameleon. If they fill their texts with emojis and exclamation points, then feel free to do the same. If they use business jargon, follow their lead. If they take a more formal approach, it can behoove you to do the same. A study led by Kate Muir found that negotiators who mimicked their partner’s behavior style by using similar nonverbal behaviors improved their individual outcomes by 39 percent and joint outcomes by over 30 percent. These mimicry effects are driven by two factors. First, we generally all think that our own communication style is the best, so when someone else communicates like us, we think they are doing it effectively. Second, we trust people who are similar to us, so when someone communicates in a way that feels familiar, we tend to trust them more. Even in the barest of virtual communication modes, nonverbal behavior plays a central role in how our messages are perceived. 4. G is for goals. Should you schedule a meeting or send an email? Is phone or video better for reconnecting with old contacts? What’s the best mode to use when meeting someone for the first time? Too often, people thoughtlessly approach these and similar questions by defaulting to whichever mode is right in front of them without considering the consequences. A while back, I was giving a talk to a group of retail executives, and someone asked a great question: what’s the best mode choice when you need to display emotions you might not really be feeling? Such as needing to seem excited during a customer interaction, even when you may be stressed or frustrated for unrelated reasons. “Telephone seems much higher effort and thus more authentic than email, yet it allows you to avoid leaking nonverbal behavior indicating your true emotions.” I ran a series of studies on this topic, using study contexts including negotiators, coworkers, and teachers and parents from international schools in Vietnam. Imagine you are a teacher in a school where parents pay a lot of money for their child to attend. Now, you have to tell one of these parents why their perfect angel is failing your course and being suspended due to serious misbehavior. Despite your frustrations with the student—and the parents for not helping improve matters—you need to put on your best smile to ensure the interaction goes smoothly. There were three key findings in these studies. First, if you are being authentic, then the richest mode of interaction—face-to-face or video—is best as it comes off as the highest effort and lets your authenticity shine through. If you need to fake it, I found that many people choose email, but that is the worst choice because email seems so low effort that it comes off as most inauthentic. For those who aimed to appear authentic while masking underlying emotions, audio interactions were the sweet spot. Telephone seems much higher effort and thus more authentic than email, yet it allows you to avoid leaking nonverbal behavior indicating your true emotions. This choice was consequential as in my studies. It determined everything from parent satisfaction with their teacher, how much coworkers were willing to engage with each other going forward, and to what degree negotiators punished one another with severe counteroffers. By defining your interaction goals, you will be able to strategically select the right mode and message to improve outcomes and avoid situations that risk you making bad impressions. 5. AI will never replace the human touch. Imagine receiving a sympathy email from a colleague after the death of a loved one. The email is supportive, but you immediately recognize the message was AI-generated because your colleague doesn’t normally use formal words like “elevate” and “profound.” After making this observation, you probably think your colleague doesn’t really care about you because they did not write the message themselves. When it comes to the most important interactions, there’s no replacement for the human touch. Researchers have found that people instinctively think of everything from songs to recipes to paintings as more authentic when we believe they were created by a human, as opposed to identical ones that were AI-generated. When something is hand-crafted, it seems more effortful and special. In the vast majority of interactions, it will be impossible for others to tell that you used AI to create something on your behalf, but all it takes is one slip up for your interaction partner to suspect you did not write the message personally. Then, they will question every single virtual interaction you’ve had with them and wonder whether you were simply outsourcing your communication and not putting effort into the relationship. They will ask themselves why they interact with you personally in the first place if all they are doing is speaking with an AI. There are times when AI increases productivity, such as using AI as an assistant for ancillary aspects of communication—such as generating ideas, editing, and summarizing conversations. This can free up valuable time and mental energy for more complex, nuanced interactions. But, as AI replacing human communication becomes more common, adding that human touch to core parts of communication is likely to become an ever-more-valuable signal of how much you value a relationship and how vital you are as a person to that interaction. This article originally appeared in Next Big Idea Club magazine and is reprinted with permission. View the full article

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Meta has introduced a series of updates to Instagram Direct Messages (DMs), adding new features designed to improve communication and engagement. The latest tools include message translation, music stickers, scheduled messages, pinned content, and group chat QR codes, all aimed at making conversations more seamless and interactive. A new message translation feature allows users to translate messages within their chats, making it easier to communicate across different languages. By holding down on a message sent or received in another language and selecting “Translate,” the translated text appears directly below the original message. Users can now share 30-second song previews directly within DMs using music stickers. The feature, available through the sticker tray in chats, allows users to select tracks from Instagram’s audio library. The recipient will see a spinning vinyl animation along with the preview. Instagram now supports scheduled messages, enabling users to send messages at a predetermined time. To schedule a message, users can type their text, hold down the send button, choose a date and time, and confirm the scheduling. The feature also allows users to set reminders for important tasks. Building on last year’s chat thread pinning feature, Instagram now lets users pin individual messages, images, memes, or Reels within 1:1 and group chats. Users can pin up to three messages per conversation, ensuring that important or frequently referenced content remains easily accessible. A new group chat QR code feature simplifies the process of adding members to group conversations. Users can generate a unique QR code linked to a group chat and share it in person, via DM, or by saving it to their camera roll. Group admins have control over access and can refresh the QR code at any time to regulate new participants. These updates reflect Meta’s continued focus on making Instagram a more dynamic and user-friendly messaging platform. By introducing cross-language messaging, multimedia sharing, organizational tools, and simplified group invitations, Instagram aims to strengthen real-time communication and social interactions within its ecosystem. The new features are now available globally. Users can visit Instagram’s Help Center for more details on how to access and use each tool. Image: Meta This article, "Meta Rolls Out New Instagram DM Features, Enhancing Connectivity and User Experience" was first published on Small Business Trends View the full article

Meta has introduced a series of updates to Instagram Direct Messages (DMs), adding new features designed to improve communication and engagement. The latest tools include message translation, music stickers, scheduled messages, pinned content, and group chat QR codes, all aimed at making conversations more seamless and interactive. A new message translation feature allows users to translate messages within their chats, making it easier to communicate across different languages. By holding down on a message sent or received in another language and selecting “Translate,” the translated text appears directly below the original message. Users can now share 30-second song previews directly within DMs using music stickers. The feature, available through the sticker tray in chats, allows users to select tracks from Instagram’s audio library. The recipient will see a spinning vinyl animation along with the preview. Instagram now supports scheduled messages, enabling users to send messages at a predetermined time. To schedule a message, users can type their text, hold down the send button, choose a date and time, and confirm the scheduling. The feature also allows users to set reminders for important tasks. Building on last year’s chat thread pinning feature, Instagram now lets users pin individual messages, images, memes, or Reels within 1:1 and group chats. Users can pin up to three messages per conversation, ensuring that important or frequently referenced content remains easily accessible. A new group chat QR code feature simplifies the process of adding members to group conversations. Users can generate a unique QR code linked to a group chat and share it in person, via DM, or by saving it to their camera roll. Group admins have control over access and can refresh the QR code at any time to regulate new participants. These updates reflect Meta’s continued focus on making Instagram a more dynamic and user-friendly messaging platform. By introducing cross-language messaging, multimedia sharing, organizational tools, and simplified group invitations, Instagram aims to strengthen real-time communication and social interactions within its ecosystem. The new features are now available globally. Users can visit Instagram’s Help Center for more details on how to access and use each tool. Image: Meta This article, "Meta Rolls Out New Instagram DM Features, Enhancing Connectivity and User Experience" was first published on Small Business Trends View the full article

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The Internal Revenue Service (IRS) is urging taxpayers to exercise caution when selecting tax professionals, warning that while most preparers are reputable, some engage in fraud, identity theft, and other scams. The agency emphasizes that taxpayers remain legally responsible for their tax returns, even if prepared by someone else. IRS Resources for Selecting a Tax Professional To help taxpayers make informed choices, the IRS offers several tools, including: The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which lists preparers who meet high professional standards. A dedicated page on IRS.gov with guidance on choosing a reputable preparer, avoiding unethical ones, and understanding different preparer qualifications. Free Tax Preparation Services The IRS provides free electronic filing options and tax assistance through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. These services are available to qualifying individuals, including those earning $67,000 or less and seniors aged 60 and older. Taxpayers can find free tax help using the VITA Locator Tool or by calling 800-906-9887. Red Flags When Choosing a Tax Preparer Taxpayers should be aware of warning signs that indicate potential fraud, including: “Ghost” preparers who refuse to sign tax returns. IRS regulations require paid preparers to sign returns they prepare. Unscrupulous individuals may prepare returns promising large refunds or charge fees based on refund amounts. Preparers without a valid Preparer Tax Identification Number (PTIN). Anyone paid to prepare federal tax returns must have a valid PTIN and must sign the tax return they prepare. Tips for Choosing a Tax Professional The IRS advises taxpayers to consider the following when selecting a preparer: Availability year-round. Some questions may arise after tax season, so choosing a preparer who is available year-round can be beneficial. Check credentials and history. Taxpayers should review a preparer’s background through the Better Business Bureau, State Board of Accountancy (for CPAs), State Bar Association (for attorneys), and the IRS Directory of Federal Tax Return Preparers for enrolled agents. Discuss service fees upfront. Avoid preparers who base fees on refund amounts or request refunds to be deposited into their accounts. Find an authorized IRS e-file provider. Electronic filing with direct deposit often results in faster refunds. Provide accurate records and receipts. Trustworthy preparers request documentation to properly determine income, deductions, and tax credits. Preparers who use a pay stub instead of a Form W-2 violate IRS e-file rules. Understand qualifications. Attorneys, CPAs, and enrolled agents can represent clients before the IRS in any case, while Annual Filing Season Program participants have limited representation rights. Never sign a blank or incomplete return. Taxpayers should review their returns carefully before signing and ensure refunds are deposited into their own accounts. The IRS encourages taxpayers to take these precautions to protect themselves from fraud and financial harm as tax season approaches. This article, "IRS Warns Taxpayers to Choose Tax Preparers Carefully to Avoid Fraud and Identity Theft" was first published on Small Business Trends View the full article

The Internal Revenue Service (IRS) is urging taxpayers to exercise caution when selecting tax professionals, warning that while most preparers are reputable, some engage in fraud, identity theft, and other scams. The agency emphasizes that taxpayers remain legally responsible for their tax returns, even if prepared by someone else. IRS Resources for Selecting a Tax Professional To help taxpayers make informed choices, the IRS offers several tools, including: The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications, which lists preparers who meet high professional standards. A dedicated page on IRS.gov with guidance on choosing a reputable preparer, avoiding unethical ones, and understanding different preparer qualifications. Free Tax Preparation Services The IRS provides free electronic filing options and tax assistance through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. These services are available to qualifying individuals, including those earning $67,000 or less and seniors aged 60 and older. Taxpayers can find free tax help using the VITA Locator Tool or by calling 800-906-9887. Red Flags When Choosing a Tax Preparer Taxpayers should be aware of warning signs that indicate potential fraud, including: “Ghost” preparers who refuse to sign tax returns. IRS regulations require paid preparers to sign returns they prepare. Unscrupulous individuals may prepare returns promising large refunds or charge fees based on refund amounts. Preparers without a valid Preparer Tax Identification Number (PTIN). Anyone paid to prepare federal tax returns must have a valid PTIN and must sign the tax return they prepare. Tips for Choosing a Tax Professional The IRS advises taxpayers to consider the following when selecting a preparer: Availability year-round. Some questions may arise after tax season, so choosing a preparer who is available year-round can be beneficial. Check credentials and history. Taxpayers should review a preparer’s background through the Better Business Bureau, State Board of Accountancy (for CPAs), State Bar Association (for attorneys), and the IRS Directory of Federal Tax Return Preparers for enrolled agents. Discuss service fees upfront. Avoid preparers who base fees on refund amounts or request refunds to be deposited into their accounts. Find an authorized IRS e-file provider. Electronic filing with direct deposit often results in faster refunds. Provide accurate records and receipts. Trustworthy preparers request documentation to properly determine income, deductions, and tax credits. Preparers who use a pay stub instead of a Form W-2 violate IRS e-file rules. Understand qualifications. Attorneys, CPAs, and enrolled agents can represent clients before the IRS in any case, while Annual Filing Season Program participants have limited representation rights. Never sign a blank or incomplete return. Taxpayers should review their returns carefully before signing and ensure refunds are deposited into their own accounts. The IRS encourages taxpayers to take these precautions to protect themselves from fraud and financial harm as tax season approaches. This article, "IRS Warns Taxpayers to Choose Tax Preparers Carefully to Avoid Fraud and Identity Theft" was first published on Small Business Trends View the full article

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Startups often face a unique set of legal challenges when developing new products, from intellectual property protection to regulatory compliance. Navigating these issues early on is crucial to avoid costly setbacks and ensure long-term success. In this article, entrepreneurs weigh in on the legal challenges their startups have faced so that you can prepare your product for development. “What are the key legal challenges faced by startups during product development?” Here’s what YEC community members had to say: 1. Patent Infringement “One is to infringe unknowingly on an existing IP/patent. You can do a patent search to see if there are similar ideas to yours, but be careful that in reading those patents, you do not subliminally become inspired to embark on a design that is similar to an existing one. Talk to experts about how to avoid these types of situations. Just realize that these might put a damper on your party if not carefully prepared for.” ~ Zain Jaffer, Zain Ventures 2. Securing IP Rights “At Velvet Caviar, securing IP rights was essential to prevent competitors from copying our designs, while ensuring regulatory compliance was necessary when exploring eco-friendly materials to avoid fines or recalls. Proactively addressing this legal area helps startups avoid costly setbacks and build a strong foundation for growth. Consulting with legal professionals is essential for navigating these issues effectively.” ~ Michelle Aran, Velvet Caviar 3. Data Privacy “One of the key legal challenges that a startup may face during product development encompasses data privacy and security of users. It may be challenging to ensure compliance with GDPR and CCPA regulations while leveraging users’ data in the development process. The best way to avoid such issues is to implement efficient measures to prevent data breaches and security issues. Furthermore, you should also consider users’ consent and be transparent with them with respect to the processing and use of their data.” ~ Chris Klosowski, Easy Digital Downloads 4. Provisional Patents “Conduct a “freedom to operate” analysis early to identify potential patent infringements. This allows for preemptive pivots or license negotiations. Simultaneously, file provisional patents to protect your innovations. Balance transparency with confidentiality through strategic NDA use. This approach minimizes legal risks while maximizing your product’s defensibility in the competitive startup landscape.” ~ Solomon Thimothy, OneIMS 5. Safety Regulations “One of the legal challenges faced by startups during product development involves safety regulations. No matter how careful you are or how streamlined your production process is, there’s always a chance of producing faulty products that pose health or safety risks. The best course of action here is to have robust quality control measures in place that ensure product safety and enable you to avoid liability for injuries or damages caused by defective products. You should also consider the possibility of recalling faulty products and preemptively plan with respect to the matter.” ~ Stephanie Wells, Formidable Forms 6. Employment Laws “It’s normal for startup owners to hire people temporarily or on a contractual basis when working on new projects or improving the solutions they offer. This is considered cost-effective, as startups have to make do with a limited budget. Even if you hire on a contractual basis, it’s highly recommended that you ensure compliance with employment laws, set the right compensation, and clearly communicate the responsibilities.” ~ Blair Williams, MemberPress 7. Legal Documents With Investors “If you decide to turn to investors when building your product, I highly recommend reviewing all contracts and other legal documents around the arrangement before you sign your name. You’ll want to make sure you understand the terms, how your equity will be affected, and any control provisions. Trust me, the last thing you want to do is sign something only to find out that the terms are far from preferable. You may also want to consider hiring a business lawyer so they can help you understand how the contracts will affect your startup.” ~ Josh Kohlbach, Wholesale Suite 8. Owning Your Brand “Secure trademarks early to protect your name, logo, and any unique assets. This gives you control and prevents others from cashing in on your ideas. NDAs are equally crucial, especially when you’re working with partners or discussing potential collaborations. They keep your concepts under wraps until you’re ready to go public. Then, there are vendor agreements. Don’t just skim these—make them airtight to avoid headaches down the line. While compliance is often industry-specific and obviously a top priority, nailing down these essentials sets a strong foundation for growth. It’s all about protecting what you’re building.” ~ Travis Schreiber, Erase Technologies, LLC 9. Vendor Agreements “One of the key legal challenges faced by startups during product development encompasses agreement violations with vendors, suppliers, and other partners. You may run into disagreements with concerned stakeholders when sourcing raw materials or necessary equipment to fuel your operations. The best way to avoid such unpleasant situations is to clearly communicate your terms and partner with suppliers or vendors of repute.” ~ Andrew Munro, AffiliateWP 10. Proof of Product “Documentation and proof of product are paramount to establish the ownership of intellectual property – a common legal challenge for startups and brand identity. This is especially true ahead of major milestones, like an IPO or an exit. Taking the extra time to document product developments and file the necessary paperwork in the early stages will help prove ownership of your own good ideas. ” ~ Ismael Wrixen, ThriveCart & FE International 11. Industry Regulations and Compliance “Startups face a big challenge in navigating industry-specific laws — whether it’s data security in tech or health standards in medical products. From my experience, working with legal experts from day one helps you avoid a lot of headaches down the road.” ~ Shay Berman, Digital Resource Image: Envato This article, "11 Legal Challenges Startups Face In Product Development" was first published on Small Business Trends View the full article

Startups often face a unique set of legal challenges when developing new products, from intellectual property protection to regulatory compliance. Navigating these issues early on is crucial to avoid costly setbacks and ensure long-term success. In this article, entrepreneurs weigh in on the legal challenges their startups have faced so that you can prepare your product for development. “What are the key legal challenges faced by startups during product development?” Here’s what YEC community members had to say: 1. Patent Infringement “One is to infringe unknowingly on an existing IP/patent. You can do a patent search to see if there are similar ideas to yours, but be careful that in reading those patents, you do not subliminally become inspired to embark on a design that is similar to an existing one. Talk to experts about how to avoid these types of situations. Just realize that these might put a damper on your party if not carefully prepared for.” ~ Zain Jaffer, Zain Ventures 2. Securing IP Rights “At Velvet Caviar, securing IP rights was essential to prevent competitors from copying our designs, while ensuring regulatory compliance was necessary when exploring eco-friendly materials to avoid fines or recalls. Proactively addressing this legal area helps startups avoid costly setbacks and build a strong foundation for growth. Consulting with legal professionals is essential for navigating these issues effectively.” ~ Michelle Aran, Velvet Caviar 3. Data Privacy “One of the key legal challenges that a startup may face during product development encompasses data privacy and security of users. It may be challenging to ensure compliance with GDPR and CCPA regulations while leveraging users’ data in the development process. The best way to avoid such issues is to implement efficient measures to prevent data breaches and security issues. Furthermore, you should also consider users’ consent and be transparent with them with respect to the processing and use of their data.” ~ Chris Klosowski, Easy Digital Downloads 4. Provisional Patents “Conduct a “freedom to operate” analysis early to identify potential patent infringements. This allows for preemptive pivots or license negotiations. Simultaneously, file provisional patents to protect your innovations. Balance transparency with confidentiality through strategic NDA use. This approach minimizes legal risks while maximizing your product’s defensibility in the competitive startup landscape.” ~ Solomon Thimothy, OneIMS 5. Safety Regulations “One of the legal challenges faced by startups during product development involves safety regulations. No matter how careful you are or how streamlined your production process is, there’s always a chance of producing faulty products that pose health or safety risks. The best course of action here is to have robust quality control measures in place that ensure product safety and enable you to avoid liability for injuries or damages caused by defective products. You should also consider the possibility of recalling faulty products and preemptively plan with respect to the matter.” ~ Stephanie Wells, Formidable Forms 6. Employment Laws “It’s normal for startup owners to hire people temporarily or on a contractual basis when working on new projects or improving the solutions they offer. This is considered cost-effective, as startups have to make do with a limited budget. Even if you hire on a contractual basis, it’s highly recommended that you ensure compliance with employment laws, set the right compensation, and clearly communicate the responsibilities.” ~ Blair Williams, MemberPress 7. Legal Documents With Investors “If you decide to turn to investors when building your product, I highly recommend reviewing all contracts and other legal documents around the arrangement before you sign your name. You’ll want to make sure you understand the terms, how your equity will be affected, and any control provisions. Trust me, the last thing you want to do is sign something only to find out that the terms are far from preferable. You may also want to consider hiring a business lawyer so they can help you understand how the contracts will affect your startup.” ~ Josh Kohlbach, Wholesale Suite 8. Owning Your Brand “Secure trademarks early to protect your name, logo, and any unique assets. This gives you control and prevents others from cashing in on your ideas. NDAs are equally crucial, especially when you’re working with partners or discussing potential collaborations. They keep your concepts under wraps until you’re ready to go public. Then, there are vendor agreements. Don’t just skim these—make them airtight to avoid headaches down the line. While compliance is often industry-specific and obviously a top priority, nailing down these essentials sets a strong foundation for growth. It’s all about protecting what you’re building.” ~ Travis Schreiber, Erase Technologies, LLC 9. Vendor Agreements “One of the key legal challenges faced by startups during product development encompasses agreement violations with vendors, suppliers, and other partners. You may run into disagreements with concerned stakeholders when sourcing raw materials or necessary equipment to fuel your operations. The best way to avoid such unpleasant situations is to clearly communicate your terms and partner with suppliers or vendors of repute.” ~ Andrew Munro, AffiliateWP 10. Proof of Product “Documentation and proof of product are paramount to establish the ownership of intellectual property – a common legal challenge for startups and brand identity. This is especially true ahead of major milestones, like an IPO or an exit. Taking the extra time to document product developments and file the necessary paperwork in the early stages will help prove ownership of your own good ideas. ” ~ Ismael Wrixen, ThriveCart & FE International 11. Industry Regulations and Compliance “Startups face a big challenge in navigating industry-specific laws — whether it’s data security in tech or health standards in medical products. From my experience, working with legal experts from day one helps you avoid a lot of headaches down the road.” ~ Shay Berman, Digital Resource Image: Envato This article, "11 Legal Challenges Startups Face In Product Development" was first published on Small Business Trends View the full article

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Cold calling remains a valuable tool for small businesses, offering a direct and personal way to reach potential customers. Despite the rise of digital marketing, the human touch of a phone call can effectively build relationships and generate leads. For small businesses, cold calling can be a cost-effective way to expand their customer base, introduce new products or services, and gather market feedback. When executed with research and a clear strategy, it can open doors to new opportunities and growth. What is Cold Calling? Cold calling uses unsolicited phone calls to potential customers. It’s different from warm calling, which involves contacting customers with prior interactions and interest in the service or product. These people have signed up for newsletters or downloaded content from a company’s website. Cold calling increases brand awareness and serves as market research, providing insights into market trends, customer preferences, and needs. Use cold calling and other sales and marketing techniques in a multi-channel approach involving content and email marketing. DefinitionCold calling is a sales technique involving unsolicited calls to potential customers.Approach without prior contact.Initiates new customer relationships. ObjectiveTo introduce a product or service to potential clients and gauge interest.Offer value propositions clearly.Generates leads and potential sales opportunities. PreparationResearch and planning before making calls.Gather information about potential clients and their needs.Enhances effectiveness of calls. ScriptingCreating a guideline for the conversation.Develop a flexible script to guide the call.Ensures consistency and covers key points. Building RapportEstablishing a connection with the prospect.Use active listening and personalized approaches.Increases receptiveness of the prospect. Handling ObjectionsAddressing concerns or questions from prospects.Prepare responses for common objections.Improves chances of converting prospects. Closing TechniquesStrategies to end the call with a commitment or clear next step.Use assumptive or alternative close techniques.Aims to secure a sale or follow-up meeting. Follow-UpSteps taken after the initial call.Send emails or schedule meetings as agreed.Strengthens customer relationships and sales potential. Regulatory ComplianceAdhering to legal standards in cold calling.Stay updated on telemarketing laws and regulations.Prevents legal issues and maintains reputation. Metrics and AnalysisEvaluating the success of cold calling efforts.Track call outcomes, conversion rates, and customer feedback.Guides strategy refinement and measures ROI. The Evolution of Cold Calling This sales technique has evolved and adapted to different consumer behaviors and technology. In the post-World War II era, telemarketing became a sales practice, and cold calling became prevalent. New channels for sales outreach were developed with email, mobile phones and the Internet. Cold calling has recently integrated itself with digital marketing techniques, allowing for a shift from cold calling. The newer strategy has become more personalized with tools like CRM software, automated dialing systems, and predictive analytics. How Does Cold Calling Work? There are several steps to making a cold call. Preparation Creating a script is a crucial step in preparing for a phone call. It’s important to personalize each pitch, and you can collect relevant information from LinkedIn or the company’s website. Conducting research before the call is vital. Targeting Target prospects through job title, geographical location, company size and industry, to name a few metrics. Lead scoring is an effective method that ranks them against a scale representing the perceived value. The Workflow The process starts with an initial cold call and a series of follow-ups. You can send follow-up emails with more data and information and schedule a demo or discussion. It’s always a good idea to end every call with a clear next step so the prospects understand what’s to come. That can involve sending more information or scheduling the follow-up with your sales teams. Preparing for a Cold Call Effective cold calling requires thorough research to identify your target audience and gather the information needed to create a persuasive sales pitch. Staying informed about any challenges and trends in a prospect’s industry is essential to understanding them. Look to industry reports and news. Analyze press releases and company websites. A customized pitch is based on your research. It narrows down specific opportunities and challenges the target market faces that your product and service can address. Identifying and Targeting Prospects Identifying and targeting prospects most likely to follow through is essential. A sales rep can use customer profiles that include industry, job title, location, gender, and age. Likewise, they can use purchase history and product usage patterns. In B2B transactions, sales representatives can concentrate on factors such as decision-makers, company size, and industry sector, among other benchmarks. They can leverage data from past sales interactions through a CRM. Sales reps can also use market research, industry reports, and third-party data providers. Cold Calling Techniques and Strategies Here’s a list of techniques and strategies that address prospects’ needs. These are effective cold-calling tips. Building Rapport and Trust Building rapport means researching the prospect by taking a few minutes to learn about them or their company. You can use social media, recent press releases or the company website. That allows you to begin with a personalized, tailored opening line that shows you’ve done some research. For example, you can mention you’ve noticed on LinkedIn that a company is big on green energy solutions. Handling Rejections and Objections You must listen carefully to understand the heart of any rejection. After that, you can respond with empathy. For example, “ I understand that budget constraints can make you want to think this offer over” is an excellent way to show that you’ve been listening. Moreover, mastering how to handle objections in sales calls is crucial for turning potential rejections into opportunities. A effective method for addressing objections is to present your product or service from a fresh perspective, utilizing industry trends and data points. This approach aims to acknowledge the prospects’ concerns while offering them new insights and perspectives from your sales team. Cold Calling Scripts Here are a few examples of scripts that can be customized. For a comprehensive list of effective scripts, explore cold calling scripts. For software companies selling to retail businesses to improve inventory management: “ Hello. We have noticed that your retail outlet has been scaling up its online and internet presence. Can we have a few minutes to discuss how our product can make your inventory management and customer service more streamlined and efficient?” At this point, the cold call can mention that the product can reduce stock discrepancies and integrate brick-and-mortar and online sales. For a small business HR solution: “Good morning. Managing HR tasks as a small business owner can be challenging. Our product is designed specifically for your vertical and has features like easy employee onboarding and automated payroll.” This cold call script can also ask if you can schedule a brief demo to help reduce the HR workload. Cold Calling Script Writing Tips Effective scripts have the following elements built in. Structure You need to start with a personalized greeting before you introduce yourself. Afterward, you can add a value proposition that addresses pain points. Be sure to end all these calls with a clear call to action. Language Engaging language is the most effective and needs to be respectful and concise. Other Key Points Make sure to specify how your product or service benefits the prospect and propose the next step, like a meeting. Cold Calling Tips for Success Following are some successful best practices. Enhancing Communication Skills Effective communication skills are crucial. You can demonstrate to a prospect that you are actively listening by summarizing their key points, which shows that you value their input. Additionally, incorporating storytelling can make your pitch and key messages more memorable. For example, you can use a story from a client with a similar background facing the same challenges so the prospect can see themselves in your narrative. Incorporating effective sales training techniques can further refine these skills. Statistics and Research on Cold Calling HubSpot reports that 82% of buyers will accept meetings after a series of different contacts that begin with a cold-calling effort. (HubSpot. “Sales Prospecting Statistics.”) LinkedIn reports that 76% of people ready to buy have engaged in a social media conversation. (LinkedIn. “State of Sales Report.”) The Difficulties of Cold Calls Cold callers face common difficulties and challenges, including the fear of rejection and anxiety about possibly being dismissed. Some common frustrations include low pickup and response rates and gatekeepers like personal assistants and receptionists becoming obstacles. Overcoming Cold Calling Anxiety Building confidence before you start making cold calls gets better when you: Set small daily or weekly goals to build momentum. Get advice from mentors who can provide tips and feedback. Take breaks to avoid burnout. Look at each rejection as a learning tool. Why Cold Calling Could Fit into Your Small Business Cold calling is a vital sales strategy. It serves as a proactive and direct way to create new opportunities and generate leads. The personal interaction involved helps foster enduring relationships and gain insights into the needs of your target market. Grasping your buyer persona is essential in this endeavor, as it allows you to customize your approach to align with the specific needs and traits of your prospective customers. It’s essential to prepare, research, and personalize your approach. This technique also involves dealing with rejection as a learning opportunity and building confidence through positive reinforcement, practice, and preparation. Moreover, utilizing tools like cold email software can complement your cold-calling efforts by reaching prospects through multiple channels. In summary, cold calling remains a vital strategy in sales, especially when combined with modern tools and techniques. It’s about understanding the customer, personalizing the approach, and continuously adapting to the evolving market. For those looking to excel in this area, a detailed Sales Representative Job Description can provide further insights into the skills and strategies needed for successful cold calling. https://youtube.com/watch?v=Yc8Ulva-imw%3Fsi%3DdhkI9bD4JChGIAx7 FAQs: Cold Calling Here are some answers to frequently asked questions. What are the key elements of a successful cold call? Personalizing the call to demonstrate you’ve done your homework and clearly articulating your value proposition need to be addressed. How can one measure the success of cold calls? Key performance indicators include the number of appointments set, the conversion rates, and the sales generated. What are the most common mistakes to avoid in cold calls? Lack of preparation and dominating the conversation without listening are the worst mistakes. How has cold calling changed with the rise of digital communication? Digital technologies have allowed cold calling to leverage social media insights and online data to build a stronger rapport. Image: Envato Elements This article, "What is Cold Calling? A Complete Guide" was first published on Small Business Trends View the full article

Cold calling remains a valuable tool for small businesses, offering a direct and personal way to reach potential customers. Despite the rise of digital marketing, the human touch of a phone call can effectively build relationships and generate leads. For small businesses, cold calling can be a cost-effective way to expand their customer base, introduce new products or services, and gather market feedback. When executed with research and a clear strategy, it can open doors to new opportunities and growth. What is Cold Calling? Cold calling uses unsolicited phone calls to potential customers. It’s different from warm calling, which involves contacting customers with prior interactions and interest in the service or product. These people have signed up for newsletters or downloaded content from a company’s website. Cold calling increases brand awareness and serves as market research, providing insights into market trends, customer preferences, and needs. Use cold calling and other sales and marketing techniques in a multi-channel approach involving content and email marketing. DefinitionCold calling is a sales technique involving unsolicited calls to potential customers.Approach without prior contact.Initiates new customer relationships. ObjectiveTo introduce a product or service to potential clients and gauge interest.Offer value propositions clearly.Generates leads and potential sales opportunities. PreparationResearch and planning before making calls.Gather information about potential clients and their needs.Enhances effectiveness of calls. ScriptingCreating a guideline for the conversation.Develop a flexible script to guide the call.Ensures consistency and covers key points. Building RapportEstablishing a connection with the prospect.Use active listening and personalized approaches.Increases receptiveness of the prospect. Handling ObjectionsAddressing concerns or questions from prospects.Prepare responses for common objections.Improves chances of converting prospects. Closing TechniquesStrategies to end the call with a commitment or clear next step.Use assumptive or alternative close techniques.Aims to secure a sale or follow-up meeting. Follow-UpSteps taken after the initial call.Send emails or schedule meetings as agreed.Strengthens customer relationships and sales potential. Regulatory ComplianceAdhering to legal standards in cold calling.Stay updated on telemarketing laws and regulations.Prevents legal issues and maintains reputation. Metrics and AnalysisEvaluating the success of cold calling efforts.Track call outcomes, conversion rates, and customer feedback.Guides strategy refinement and measures ROI. The Evolution of Cold Calling This sales technique has evolved and adapted to different consumer behaviors and technology. In the post-World War II era, telemarketing became a sales practice, and cold calling became prevalent. New channels for sales outreach were developed with email, mobile phones and the Internet. Cold calling has recently integrated itself with digital marketing techniques, allowing for a shift from cold calling. The newer strategy has become more personalized with tools like CRM software, automated dialing systems, and predictive analytics. How Does Cold Calling Work? There are several steps to making a cold call. Preparation Creating a script is a crucial step in preparing for a phone call. It’s important to personalize each pitch, and you can collect relevant information from LinkedIn or the company’s website. Conducting research before the call is vital. Targeting Target prospects through job title, geographical location, company size and industry, to name a few metrics. Lead scoring is an effective method that ranks them against a scale representing the perceived value. The Workflow The process starts with an initial cold call and a series of follow-ups. You can send follow-up emails with more data and information and schedule a demo or discussion. It’s always a good idea to end every call with a clear next step so the prospects understand what’s to come. That can involve sending more information or scheduling the follow-up with your sales teams. Preparing for a Cold Call Effective cold calling requires thorough research to identify your target audience and gather the information needed to create a persuasive sales pitch. Staying informed about any challenges and trends in a prospect’s industry is essential to understanding them. Look to industry reports and news. Analyze press releases and company websites. A customized pitch is based on your research. It narrows down specific opportunities and challenges the target market faces that your product and service can address. Identifying and Targeting Prospects Identifying and targeting prospects most likely to follow through is essential. A sales rep can use customer profiles that include industry, job title, location, gender, and age. Likewise, they can use purchase history and product usage patterns. In B2B transactions, sales representatives can concentrate on factors such as decision-makers, company size, and industry sector, among other benchmarks. They can leverage data from past sales interactions through a CRM. Sales reps can also use market research, industry reports, and third-party data providers. Cold Calling Techniques and Strategies Here’s a list of techniques and strategies that address prospects’ needs. These are effective cold-calling tips. Building Rapport and Trust Building rapport means researching the prospect by taking a few minutes to learn about them or their company. You can use social media, recent press releases or the company website. That allows you to begin with a personalized, tailored opening line that shows you’ve done some research. For example, you can mention you’ve noticed on LinkedIn that a company is big on green energy solutions. Handling Rejections and Objections You must listen carefully to understand the heart of any rejection. After that, you can respond with empathy. For example, “ I understand that budget constraints can make you want to think this offer over” is an excellent way to show that you’ve been listening. Moreover, mastering how to handle objections in sales calls is crucial for turning potential rejections into opportunities. A effective method for addressing objections is to present your product or service from a fresh perspective, utilizing industry trends and data points. This approach aims to acknowledge the prospects’ concerns while offering them new insights and perspectives from your sales team. Cold Calling Scripts Here are a few examples of scripts that can be customized. For a comprehensive list of effective scripts, explore cold calling scripts. For software companies selling to retail businesses to improve inventory management: “ Hello. We have noticed that your retail outlet has been scaling up its online and internet presence. Can we have a few minutes to discuss how our product can make your inventory management and customer service more streamlined and efficient?” At this point, the cold call can mention that the product can reduce stock discrepancies and integrate brick-and-mortar and online sales. For a small business HR solution: “Good morning. Managing HR tasks as a small business owner can be challenging. Our product is designed specifically for your vertical and has features like easy employee onboarding and automated payroll.” This cold call script can also ask if you can schedule a brief demo to help reduce the HR workload. Cold Calling Script Writing Tips Effective scripts have the following elements built in. Structure You need to start with a personalized greeting before you introduce yourself. Afterward, you can add a value proposition that addresses pain points. Be sure to end all these calls with a clear call to action. Language Engaging language is the most effective and needs to be respectful and concise. Other Key Points Make sure to specify how your product or service benefits the prospect and propose the next step, like a meeting. Cold Calling Tips for Success Following are some successful best practices. Enhancing Communication Skills Effective communication skills are crucial. You can demonstrate to a prospect that you are actively listening by summarizing their key points, which shows that you value their input. Additionally, incorporating storytelling can make your pitch and key messages more memorable. For example, you can use a story from a client with a similar background facing the same challenges so the prospect can see themselves in your narrative. Incorporating effective sales training techniques can further refine these skills. Statistics and Research on Cold Calling HubSpot reports that 82% of buyers will accept meetings after a series of different contacts that begin with a cold-calling effort. (HubSpot. “Sales Prospecting Statistics.”) LinkedIn reports that 76% of people ready to buy have engaged in a social media conversation. (LinkedIn. “State of Sales Report.”) The Difficulties of Cold Calls Cold callers face common difficulties and challenges, including the fear of rejection and anxiety about possibly being dismissed. Some common frustrations include low pickup and response rates and gatekeepers like personal assistants and receptionists becoming obstacles. Overcoming Cold Calling Anxiety Building confidence before you start making cold calls gets better when you: Set small daily or weekly goals to build momentum. Get advice from mentors who can provide tips and feedback. Take breaks to avoid burnout. Look at each rejection as a learning tool. Why Cold Calling Could Fit into Your Small Business Cold calling is a vital sales strategy. It serves as a proactive and direct way to create new opportunities and generate leads. The personal interaction involved helps foster enduring relationships and gain insights into the needs of your target market. Grasping your buyer persona is essential in this endeavor, as it allows you to customize your approach to align with the specific needs and traits of your prospective customers. It’s essential to prepare, research, and personalize your approach. This technique also involves dealing with rejection as a learning opportunity and building confidence through positive reinforcement, practice, and preparation. Moreover, utilizing tools like cold email software can complement your cold-calling efforts by reaching prospects through multiple channels. In summary, cold calling remains a vital strategy in sales, especially when combined with modern tools and techniques. It’s about understanding the customer, personalizing the approach, and continuously adapting to the evolving market. For those looking to excel in this area, a detailed Sales Representative Job Description can provide further insights into the skills and strategies needed for successful cold calling. https://youtube.com/watch?v=Yc8Ulva-imw%3Fsi%3DdhkI9bD4JChGIAx7 FAQs: Cold Calling Here are some answers to frequently asked questions. What are the key elements of a successful cold call? Personalizing the call to demonstrate you’ve done your homework and clearly articulating your value proposition need to be addressed. How can one measure the success of cold calls? Key performance indicators include the number of appointments set, the conversion rates, and the sales generated. What are the most common mistakes to avoid in cold calls? Lack of preparation and dominating the conversation without listening are the worst mistakes. How has cold calling changed with the rise of digital communication? Digital technologies have allowed cold calling to leverage social media insights and online data to build a stronger rapport. Image: Envato Elements This article, "What is Cold Calling? A Complete Guide" was first published on Small Business Trends View the full article