What fails 70% of the time, yet people continue to do?

Posted on March 21, 2018March 21, 2018 by Plemmons

What fails 70% of the time, yet people continue to do?

Start-ups.

7/10 Do not last five years.

An Economy Built on Failing Forward

While we do not need 70% to fail, we do need the constant creation of start-ups who strive to be the next Amazon.

Businesses created to chase that exponentially small chance employ the majority of Americans.

We already have monoliths like Amazon, Microsoft, or Apple. We do not need a copycat but, the process that created them is essential to the American economy.

Windows for Microsoft, online retail for Amazon, and the Macintosh for Apple. One right decision began the path leading to now.

Based on the definition of start-ups being a company less than five years old, the majority of Americans work for a start-up business. Some likely work for the next multi-billion dollar company but do not realize it.

"In Business, to be a success, you only have to be right once."

- Mark Cuban

Some Will Hit it Big

Toss a dice enough; you will roll double 6's a dozen times in a row. In 2017, America saw an additional 150,000 people reported being self-employed by new start-ups. That is 150,000 new businesses in America every single year. Even taking the worst failure projection with 70% of those companies folding, that is still 45,000 companies sticking around.

With 45,000 new opportunities, the odds of the next Amazon or Apple being founded are quite likely better than your odds of winning the Powerball. Amazon crossed the 100 billion dollar value marker in 2011. We are inclined to believe that in the last six years, one of those 250,000 businesses created that will make it past their start-up phase and hit it big.

The Law of Probability states that if you play out a scenario enough times, even marginal outcomes are realized.

The start-up process boils down to:

Constant regrowth is vital. It is what fuels the constant cycle of:

Start-Up, Growth & Hiring, and Stabilization or Folding

Three out of ten businesses end up stabilizing and continuing the growth pattern. To this day, new companies have continued to rise to take the placed of folded ones. Those new start-ups replacing the previous generation are the key to a healthy economy.

We Need Businesses That Want to be Amazon

The success a start-up achieves compared to Amazon is not relevant to the reason we need them.

We need people to chase that dream. Entrepreneurs who want to be the next Jeff Bezos are fueling the American economic engine.

The process that creates the next Amazon is far more essential to the economy than the company itself. A rising ride raises all ships. We can live without Alexa. We cannot live without start-ups, they are the future.

City Spotlight – Auburn

Posted on February 12, 2018February 12, 2018 by Plemmons

Centralized Location, Thriving Industry, and Heritage

Bordering Kent to the South, Auburn has many of the same qualities that make us love Kent!

While having a few key differences that make it stand out from its neighbors.

All while strengthening the economy of South King County as a whole.

Centralized Location

Similar to Kent, Auburn's centralized location gives businesses a strategic advantage. Being 30 minutes from Seattle, Tacoma, Bellevue, and most of Pierce County allows businesses to attract clients from all over the area.

Auburn also offers a much more reasonable commute for employees than downtown Seattle or Tacoma with multiple highways in and around the city.

Interstate 5, Highway 167, and Highway 18 are all easily accessible. No matter if you want more traffic for a business, easy routes for your product to be transported, or simply an easier commute Auburn has an ideal location!

Growing Business Environment

Commercial attractions featuring Auto-Row and the Seattle Outlet Collection (Formerly The Supermall) make Auburn a consumer destination.

Auto-Row is home to over two dozen car dealers of all makes, models, and styles. The Seattle Outlet Collection has stores selling all sorts of retail goods.

With multiple railroads and highway proximity Auburn is home to a bustling and rapidly growing industrial sector. Auburn is also home to an expanding aerospace industry. Multiple startups are located within a few miles of Boeing's fabrication plant.

Job growth is set to beat the estimated average across the United States over the next decade.

Residential Diversity

Auburn is home to a large amount of Slavic descendants. Combined with nearly 30% of residents speaking Spanish, make the community quite diverse.

The Muckleshoot Native American Tribe also calls the area home. An economic force in their own right, with one of the largest Casinos in the Pacific Northwest.

Residents of all nationalities and variety of local industries mean a city of opportunity for people of all backgrounds.

Expected Auburn Population Mid 2018:

Notable Locations

Boeing Auburn Fabrication Plant - With their close ties to the region, it should be no surprise that Boeing is the largest employer in the city.

White River Amphitheater - Many major concert series and performers make a stop at White River which is one of the largest outdoor venues in Washington.

Green River Community College - One of the largest schools in Washington state. Offers a variety of degree programs across many industries including some bachelors degree programs.

Green River Community College

4 Must-Have Gadgets for an Efficient Office in 2018

Posted on January 19, 2018March 19, 2018 by Plemmons

Every January, the titans Tech get together and announce the new 2018 gadgets. Here are some that are useful for your Office Suite.

New technology in your office can lead to new efficient ways to do business, optimize tasks, and save money.

Here are some of our favorites from CES 2017:

Canary View – Indoor Security Camera:

Quality security cameras for an office are often prohibitively expensive. Especially once storage is factored in.

With the View, $100 Camera. $100 a year for cloud storage. Buy it, set it up on your wifi, and you are live.

It even has machine learning to filter out daily movement so you receive less false alarms.

Check out the Canary View Here

Multiple Companies – Wireless Charging Mouse Pads & Mice:

Few feelings are worse than getting through an important email or document, going to hit send, and your mouse isn’t moving.

With new mice and wireless charging pads from Razer and Corsair, these moments will be a thing of the past. The mouse pad is plugged into a USB port and the mouse charges simply by resting on the pad.

This will really be the most helpful tool to those who spend countless hours on their computers. The expense can start at $250 but when the computer is your business, this is a necessary expense.

RavPower – File Hub Plus:

The File Hub Plus is a problem solver that happens to be smaller than a new iPhone.

Here’s what the File Hub Plus can do:

Backup pictures, videos, and files from iOS and Android devices
Transfer Files between connected storage devices
Function as a wireless travel router
Stream media from connected smartphones, tablets, and laptops to other streaming devices
SD card reader
Charge any device that support USB power with a 6000mAH battery

Thing little black box solves so many potential office issues.

Router giving you fits? Plug this into the modem to bypass it.

Client not able to stream from their laptop to your TV? Plug this into their laptop and you are in business.

Conference room too far away from your network hub to get a good signal? Plug this in at the halfway point and set it to bridge mode.

The only thing it cannot do it charge a laptop. Except, they have a different model that will do that too!

Pick one up here!

Ecobee: Ecobee3 Lite:

Finding ways to be financially savvy is something we pride ourselves on here at Plemmons Industries.

Which is why we love the Ecobee line of smart thermostats. They hardware onto your existing office heating and cooling panel and allow you to control the temperature from anywhere with their phone app!

Forget to turn the heat off before leaving the office for a few days? The thermostat will detect that and notify you if the heat or AC are on during unexpected hours.

Plus, if you’re one of the many who already have or received a smart speaker like an Amazon Echo over the holidays, you can control your temperature with your voice.

Check out the Ecobee 3 Lite here!

Varidesk – Adjustable Desk:

While on your gadget spree, consider doing something for your personal health.

Varidesk produces an array of workstations with adjustable heights and configurations. Everything from standing laptop desks to dual monitor editing stations can easily be achieved.

Standing desks allow you to burn 10% more calories compared to a traditional seated desk.

If you decide to try an adjustable standing desk make sure to give yourself some ramp up time. Don’t go from sitting an entire day to standing an entire day the first day.

Save Money on Commercial Space with These 10 Helpful Tips

Posted on January 9, 2018January 12, 2018 by Plemmons

For every successful business, there comes a point where you outgrow the kitchen table or garage.

Getting a bigger space becomes essential for growth.

The question is, how do you find a perfect space for your business to thrive?

Know your budget. Do not go over your budget.
- Get a space that will allow you to continue growing. Be economically minded when space shopping.
Know your businesses needs.
- Different businesses will prioritize different factors. Trucking and distribution will have a different priority set compared to an IT company.
Leave wiggle room in your operating budget.
- Know the issues that may arise for your unique business.
- Keep a rainy day fund for vital equipment replacement.
Know your personal AND business credit score.
- Especially vital for newer businesses.
- In lieu of business history, a personal guarantee can sometimes gain lease approval.
Do NOT sign a lease that does not make sense for your business.
- Consider the needs of your business a timeline. Why sign a 54 month lease when you may need more space in 36 on your current growth rate?
Read. Your. Lease.
- This contract is going to be a vital piece of your business going forward. Know it inside and out.
- Ask questions! Never leave anything to an implicit meaning, ask for explicit clarification.
- Negotiate! Until you sign, many things are up for negotiation or discussion. The worst the leasing firm can do is say no.
Calculate your moving and logistics costs.
- Moving trucks, personnel, tech installation, etc. all come into play here.
- Consider moving mid-month to minimize downtime once paying rent.
Secure all items of value.
- Don’t leave tools, electronics, and other valuable items visible from the outside. Especially do not leave them in any company vehicles.
Know your subletting rules.
- Subletting from another business is a great way to get the space you need without paying the full market rate.
- It can also make you some good money if you have space to spare.
- Check with your leasing company to make sure you are permitted to do so in your lease.
Have questions? Ask them!
- The last thing a property manager wants is an unsure or uninformed tenant.

Rent Control. An Overview, Analysis, and Potential Impact on Seattle.

Posted on December 15, 2017January 5, 2018 by Plemmons

Seattle is in a Rental Crisis

To sum up the Seattle rental market:

It is not pretty.

With rising rents in the Seattle area, finding a one bedroom apartment now requires a take-home income in excess of $60,000.

Rapidly increasing rents, explosion of short-term rentals and developer discouraging building regulations are fueling a shortage of rentals that worsens each month.

Seattle City Council members have requested the 1980’s ban on Rent Control to be overturned in a letter written to Olympia.

While intended to solve a crisis, rent control by itself will not resolve the issue.

Rent Control. What is it?

Money The concept of “Rent Control” relates to a system of laws that aim to keep housing affordable to keep the bargaining power between property owners and renters balanced.

Rent Control’s intended outcome is more to prevent rental rate gouging due to a competitive market.

In the most basic form, Rent Control laws will cap how much a landlord can increase the rent each year. This percentage is usually sourced from inflation rates. (“Rent Stabilization” is the technical term for this. For simplicity we throw it under the same umbrella.)

The other tool of Rent Control is simply capping the amount that a landlord can charge for rent.

The Best Intentions. The Worst Outcomes.

Rent Control legislation forcing units to rent below market value often leads to backlash from landlords and developers.

The incentive for landlords to invest in their existing units is severely diminished since their return on investment is no longer based on the market, it becomes tied to a fixed rate.

Developers are better served building single family homes and condominiums that can sell for the price set by the market rather than what Rent Control law says.

Additionally, Rent Control often forces developers to set aside a portion of the space in any proposed multi-family housing.

What About “Inclusionary Zoning or Social Housing?”

Apartments Depending on who you ask, this is the London or New York solution.

The idea is that for a developer to get their building project approved they agree that a portion of the units go to specific tenant types or rent below the market rate.

The rent for a London flat is $2,486/mo. Central London is well over $3,000/mo.

Landlords in New York often choose Rent Control unit tenants in comically corrupt ways. They are often rented to those with personal or business ties to landlords. Often, the tenants are far above any income maximums

What sounds like a perfect solution, has turned out to be better in theory.

Effect on Small Business & Possible Solutions

Empty Wallet A general economic principal states that a fiscally responsible person or household should spend no more than 30% of their income on their rent or mortgage.

With this theory in mind, it is no wonder Seattle is supporting this principle. Yet, as seen in other cities the cost of living and citizens disposable income can fluctuate.

When push comes to shove, people are going to pay their rent before they go out to have a drink at the local bar.

Seattle’s rental crisis has no easy solution. However, we can say with certainty that Rent Control on its own will not be a silver bullet. Multiple factors play into the exponential cost of living increase in Seattle. The solution must also be a multi front approach. These solutions deserve thorough analysis and will have their own article.

The solution must go beyond real estate & small business.

Four Ways to Manage Expectations for a Productive Business

Posted on December 1, 2017January 9, 2018 by Plemmons

Expectations. We all have them, about everything. What happens when expectations do not match reality?

Disappointment. As a small owner, disappointment in team members leads to discontent. Discontent leads to departure.

Managing expectations is the only proactive way to ensure your team members are satisfied with their position.

Be open. Be honest.

Honesty is always the best policy.

First of all, write an honest job description that includes a realistic overview of the position and responsibilities.

Have a direct and honest interview process. This should always involve a Hiring Member that is symbolic of the brand. This is the time, before the expectations to see if this person is naturally on-brand. Inauthenticity on both sides of this process will lead to a troubled relationship from the beginning.

Know who you are hiring.

Join Our Company

You posted your position over three weeks ago. So far, you have yet to get a decent bite until today when you have what seems like a dream applicant shows up in your inbox. They are brought in for an interview, and they seem like the solution to everything needed in the position. In addition, they have years of experience in similar work and here they are, applying for your position when you required minimal experience.

Should you hire them? Likely, but you should also realize that an over-qualified individual applying for a position is generally looking for this role temporarily. Can you offer them realistic advancement?

You never want great talent to walk away from you.

Do not let things stew.

Difficult conversations make everyone sweat.

Know what can be worse? Coming to work and having something to say but not having the courage to face the conversation. As a result, you’re miserable for days, weeks, months, even years?

If a team member is dissatisfied with their position, responsibilities, hours, etc. they cannot be on brand. The focus is now on discontent.

Don’t wait for things to blow over as they may boil over instead.

Plus, happy employees are 12% more productive.

Make them feel valuable.

“Wealth consists not in having great possessions, but in having few wants.” -Epictetus

Team Members

Take care of your team members and in turn expect them to take care of you. Genuine care is priceless. To receive value from a team member they have to be shown that they are valuable. From earlier articles, more employees want time off than anything else.

A great example of this in our business is the concept of valuing all people’s time the same. Giving a team more flexibility with their time can be a value add to all team members.

Giving your team members a sense of value and flexibility in their time breeds loyalty. The type of loyalty you can rely on.

Team members with faith in their work, faith in their company, and faith in their leadership are team members who you want to keep around.

Holiday Office Party? Try This Instead.

Posted on November 16, 2017December 11, 2017 by Plemmons

‘Tis the season. What are you doing for your staff?

What they want the most,

Time off.

Randstad US published a study regarding what workers prefer over the holidays in the workplace. The results?

70% of American workers said time off is what they loved most about the season. Seems obvious right?

Well, here’s what might be less obvious:

Your workers are taking time off, what are they doing?

62 percent of workers said they’re going to take vacation during the holiday season even when 52 percent noted their employer doesn’t give extra time off during the holidays.

28 percent use accrued sick time at the end of the year regardless of health to have more time off.

63 percent of employees admit to checking their email when on vacations and 31 percent will even call into the office to come across as more diligent.

Almost 1/3 of employees job search or explore during the holidays since business slows down in most non-retail industries.

Office party? Not interested.

90% of those surveyed said they’d rather have an extra day off or a bonus than an office party.

62% say they feel obligated to attend an office party with an even higher percentage the younger the age group.

47% of those 18-34-year-olds believe their company should participate in some sort of charity.

What can you do?

The way our small business does it is to give more holidays. We want our employees to enjoy their families, travel, relax, and recharge. With this in mind, our team knows the new year is the time for our best effort! Everyone is rested.

Perhaps in a little more debt but ready to pay that off. ‘Tis the season to reboot and charge into 2018 with a new commitment to the team.

Email Marketing: Effective, Efficient, and Engaging

Posted on November 14, 2017December 14, 2017 by Plemmons

Email Marketing: Efficient, Effective, and Engaging

Email marketing is a modern tool that business owners must use to keep their business and brand front and center. Everything is a powerful opportunity to build a connection with your audience when done properly. Email marketing done poorly will tarnish your brand.

Here are some tips for success:

Make it Personal.

Have you ever opened up a business email it feels like the content and products are speaking to you?

Spoilers: This email was not created ONLY for you. The fact that you thought it meant the marketers are doing it right. There’s a reason that people occasionally jokingly call Emails, “electronic letters”, and that’s because a personal touch goes a long way.

Pick a certain client to write the mass email to. Make sure to keep the tone neutral enough to have it easily relevant to anyone reading. Get familiar writing this type of email as well as utilizing the tools of your respective platform. Nearly all email campaign services will have built-in tools for inserting client information into the email to make each one personal to the targeted recipient.

Don’t overkill it.

Nobody likes spam. You do not want to be a business known as an inbox spammer. You will likely have a large number of recipients who mark you as spam and you can find yourself getting the boot from your email campaign provider. Seriously, some providers give the boot for anything over a 1% spam complaint rate.

Your content hungry subscribers will be much harder to scare away with content as long as you keep it relevant to their interests.

Avoid clickbait.

“One weird trick to lose 4 inches off your waist in 4 days!”

You’re marking that as spam. Everyone is marking that as spam.

Those email tags I mentioned earlier for client information can usually be inserted into your subject lines. Don’t be afraid of the OCCASIONAL name drop in the subject line. Don’t abuse this. It becomes less personal if you do it too often and this is an ace up the sleeve that you do not want to lose.

Simple subject lines.

Your subject line should be exactly that, a subject line. Give them a reason to click on your email. They can see the first sentence of the email before clicking on it so don’t oversell the subject. It displays poorly on mobile devices and you are more likely to get slammed by automated spam programs.

It’s not free, even if it’s free.

We all know the saying that you “get what you pay for,” email campaign and automation software isn’t an exception to this rule. As someone who has used well over a dozen different email campaign and automation systems in their time, want to know which ones are the best?

I’ll give you an objective top 3:

MailChimp

Campaign Monitor (Cheaper version of MailChimp Essentially)

Constant Contact

The most cost efficient one of those with a moderately sized database is going to run $100 plus a month.

And, it’s worth every penny. Every. Single. One.

A year-long email drip campaign in one of those programs once you’re an expert can build complete with A/B testing, link backs, and social media plugins in an afternoon.

This is a tool, not the shed.

Email marketing is just ONE piece of your marketing. Traditional word of mouth, social media, etc. Also, play key roles when it comes to the advertising of your small business. Growing your presence without years of operation requires you to play smarter AND harder to legitimize your brand.

Done strategically, email marketing can be a massive boost to your business and once it’s going well, one that doesn’t require much micromanagement.

You’ve got other things to do, like figuring out where your next office space will be 😉

Want to have us discuss anything in particular on our next blog? Curious as to what Plemmons Industries can do to help you grow your business?

Get in touch with us: ContactUs@PlemmonsIndustries.com