S9 E17-20 WITH JEREMY GRAY – THE GERIATRIC ENTREPRENEUR

Jeremy Gray – The Geriatric Entrepreneur
IBGR. Network. The World of Business at Your Fingertips
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Is retirement not for you? Me neither! I have always known that retirement did not hold any attraction for me. Those financial product advertisement promising early retirement never resonated. 

As Elizabeth Queen of England, who is still active at the age of 95, says “If I stop, I will drop.”

In season 9 I will share with you my experiences running a consulting business that delivers the much targeted six figure income. I also invite you to join me, as I build my business plan to escape the tyranny of the clock which limits my earnings to the hours I work. Over the next five years I plan to build an income portfolio that will support my family into the future. Please join me as I plan that journey.

Episode 17. Marketing to Gen Z without the cringe

We are entering an era which sees a considerable shift of purchasing power from millennials to Generation Z. Millennial spending sits at just over $65 billion – whilst Generation Z is at almost $100 billion. The Bank of America estimates that Gen Z combined income will reach $33 trillion by 2030. So, if you are going to develop a successful business, millennials are not the only generation that you need to keep in mind.

Connecting with younger generations has always been a challenge for business, but connecting with Gen Z, which is roughly those born in the mid to late 1990s through the early 2010’s is a challenge of a different magnitude. Gen Z is in control over their own media, in a way which may be unfamiliar to older generations. They skip over advertisements which do not grab their attention. Unlike the days when you could not avoid advertisements on the TV or radio. You could make yourself a cup of tea or grab a beer, but that advert continued to play in the background. 

Gen Z, sometimes called digital natives because of their knowledge of social media, create their own content on platforms such as Instagram and Tik Tok. Tik Tok is rapidly becoming the leading social media platform.  According to Techcrunch.com. The app was the most downloaded app in the first quarter of 2022 with 175 million downloads. The platform had 3.5 billion views in the same quarter.  

Instagram and Facebook were ranked number 2 and 3 respectively for downloads.

For older generations, employment was seen as the ideal route to stability. “Join a good company and stay with them for life” was the advice many baby boomers heard from their parents. But over the years companies broke this unwritten contract by sacking employees as and when needed. Euphemistically called downsizing.

Employment for life was replaced with the concept that job hopping was the path to success. Companies bemoaned a lack of loyalty in their employees, as people took more control of their individual careers.  Today millennials and Gen Z may not look to employment as their life path. Entrepreneurship, encouraged by media coverage of those who have achieved great wealth by starting their own business, is often the number one choice for these younger folks.

This means there is a demographic with tremendous spending power, that is more likely than earlier generations to need the services of coaches and consultants to help them achieve their entrepreneurial ambitions. A demographic you should not ignore. A demographic that is more difficult to reach using traditional marketing methods.

How do you avoid the cringe factor when deciding how to capture Gen Z’s attention? The cringe factor has been in existence for thousands of years. It is the tendency of the younger generation to roll their eyes when the older generation tries to talk their language.   

Gen Z is particularly sensitive to when it is being pandered to, authenticity and relevance are the key to avoiding the cringe.

During Season 8 the concept that success follows a genuine desire to provide information of value to your targeted customers before trying to sell them a product or service was discussed extensively. These ideas are well articulated in Dorie Clark’s book Entrepreneurial You and Sahil Lavingia’s The Minimalist Entrepreneur. This advice is particularly well suited when applied to millennials and Gen Z. For a link to these books Ctrl+Click here

Maybe you are already creating this type of content which only needs minor changes to make it resonate with Gen Z. To improve your chances of success you should reach out to members of Gen Z to learn more about their attitudes, desires, and expectations. This could be your children or grandchildren. Possibly you have employees in this age group you can consult. For this topic, age does not necessarily know best, do not ignore input from junior employees.  To do this successfully you need to create an atmosphere where less senior employees feel free to disagree with older employees. This can be challenging in a culture where age is highly respected as in, say, Japan or Korea, in these types of societies extra effort will be needed. 

Go social, post your content where Gen Z hangs out. Millennials and Gen Z are highly engaged on social media platforms, a digital marketing component many of us are lacking. Make sure that social media (Snapchat, Instagram, Facebook, TikTok and Twitter) is part of your digital marketing strategy. Your content should be relevant and topical. Ensure it's something that younger generations engage with, and tie it into your overall marketing story. In addition to reaching out to younger folks as we just discussed, find a few hours to watch content on these platforms that is targeted at your younger potential customers. This can be very time consuming as consistency of posting content is the key to developing a following. Clearly the strategy of reusing material on multiple platforms makes sense.

Consider hiring a social media asset to make the postings for you. They can be found on freelance platforms such as Fiverr. Note it may take you a few tries to find someone who is reliable, but freeing up your time to produce better quality material is likely a solid investment.

Gen Z takes notice of what their favorite influencers tell them. Unlike past generations, major celebrities carry less weight with Gen Z. They are more likely to follow micro or nano influencers than macro influencers. This is good news as smaller targeted influencers are less expensive than macro influencers. These smaller influencers are often highly professional business people who know their audience well and produce content that attracts their audience. As they are experts if you choose to partner with an influencer let them guide you on the content to use. 

If you are a baby boomer or Gen X you may be thinking that connecting with Gen Z is too challenging. Keep in mind that the fundamentals of business have not changed. An entrepreneur needs to develop a product, ensure potential customers know it exists and make it easy for them to buy it. You know how to do this already. It's just a case of packaging your knowledge in a way that connects with a younger generation.

In summary

Gen Z’s purchasing power makes them a demographic you should not ignore.

Even more than earlier generations they recognized when they are being marketed to. Provide valuable material before you try to sell anything to them.

Avoid the cringe by consulting with people who belong to this generation. This will help you connect with them in a way that is meaningful to them.

Look for micro or nano influencers you can work with to promote your brand. Let them guide you through the process.

Meet them where they are on social media. Consistency is key when posting on social media so either limit the number of platforms that you use or consider hiring someone to post for you.

Most of Generation Z is still fairly young but in the next decade this demographic will begin to dominate. So, no matter what your product or sector, the needs of Generation Z should already be on your radar screen.
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Tags: Gen Z, Marketing to Gen Z, Connecting with Generation Z The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Geriatric Entrepreneur

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Episode 18 Start up hiring is different. Here is why you need a hiring plan.
Recruiting talent is no different than any other challenge a start-up faces. It’s all about selling.” – Vivek Wadhwa

1. Staff expenses are likely to be a major cost to your P&L. In labor intensive industries they can be as high as 70% of your total costs. The term labor intensive conjures up a vision of old-fashioned manual labor but in the service sector most of your costs will be labor. A business such as SaaS will be labor intensive, 
2. Often, they are less but they will be significant so they will be an important component of your cash flow forecast so you need to plan what positions you will hire, when you expect to hire them and at what cost.
3. Costs go beyond salaries, you may incur payroll taxes, statutory benefits and industry standard benefits. Also, you need to assess holiday pay, sick pay and possibly overtime. These can add 30% to the salary number.
4. You may need to supply tools such as computers, screens, workspace etc. 
5. A start up is different because often you are hiring your executive team first. Unlike an established business that hires to replace gaps or to expand.
   1. Assess your skills and identify gaps that must be filled before launch. Be honest – you cannot do it all yourself.
   2. Industry knowledge should be acquired if needed.
   3. Assess when the skills will be needed and factor in hiring time.
6. Hire talent but manage the costs.
   1. Start ups are hard work. You need folks who are willing to pitch in and do whatever is necessary to get the business off the grounds
   2. Beware of corporate types who have been used to having a support network.
   3. Pay for the talent you need but get creative in packages. Base plus incentive. 
   4. Consider people embarking on a second career
   5. Sell your business to candidates. Tell them of your business plan, vision, values, and culture. Show your enthusiasm for your business. 
7. Work backwards to establish your executive payroll and when costs will be incurred.
8. Identify essential workers – production staff, programmers, waiters. This will vary by the type of business
9. Research costs for your market and availability.
   1. These roles often have market rate
   2. As a start up the future is uncertain – you may have to pay a premium to encourage staff to join you. Especially if skills are in high demand.
   3. Incentive plans may be appropriate
10. Your hiring plan should reflect your planned organizational structure.
    1. Does it fit?
11. Quantify your employee costs and timing. Essential part of your cash flow. 

​Tags: How to start a business, Achieve start up success, Hiring, Organizational structure, employee costs, The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, The Geriatric Entrepreneur

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Episode 19

Employee turnover costs you money. – Retention is the key
“We cannot stop employees leaving unless we have a plan for them to stay”.

1. Hiring replacement employees is expensive. 
   1. Recruitment costs
   2. Lost productivity
   3. Reduced institutional knowledge 
   4. Stress on remaining employees
   5. Onboarding and training costs
   6. Loss of morale
2. It’s expensive Built In reports the average costs to replace an employee in the US are:
   1. $1,500 for hourly employees
   2. 100 to 150% of an employee’s salary for technical positions
   3. Up to 213% of an employee’s salary for C-suite positions
3. Why do employees leave? Robert Half cite the following reasons:
   1. Inadequate salary and benefits
   2. Feeling overworked and/or unsupported
   3. Limited opportunities for career advancement
   4. A need for better work-life balance
   5. Lack of recognition
   6. Boredom
   7. Unhappiness with management
   8. Concerns about the company’s direction or financial health
   9. Dissatisfaction with the company culture
   10. The desire to make a change
4. This can be summed up – employees leave when they do not feel valued.
5. Retention starts with recruitment:
   1. The interview stage is as much about them liking you as it is about you liking them. It’s also about sharing realistic expectations of what the role entails and having a mutual understanding of what both parties bring to the table.
   2. Consider the future: The candidate might be a perfect fit now but what about in two or five years’ time? You’re looking for loyalty and longevity to reduce the likelihood of the right person leaving sooner than you’d like.
   3. And ultimately, whether the individual fits your company culture and will work well with the rest of the team. Are they familiar with startup culture? After all, a startup is a very different beast to a large corp.
   4. The best person for the job on paper isn’t always the right person for the job. What one person may lack in experience, they make up for in aptitude and attitude.
6. Instill a positive Company culture:
   1. Retention is about cultivating an environment where people can do their best work,” Nick Francis, CEO of Help Scout.
   2. A startup with great company culture will not only attract new talent but also help to retain talent. Fundamentally, positive company culture should:
      1. Align teams behind a clear mission
      2. Drive the business forward
      3. Set expectations for behavior, communication, and collaboration
   3. Promote work/life balance and positive wellbeing
   4. Acknowledge everyone’s contribution to the bigger picture
7. Invest in training and development:
   1. As time passes and the new hire’s contribution increases, be sure to schedule regular catchups to see how they’re feeling, if they’re meeting objectives or if they need further support or training. 
   2. Regular one-to-ones are also an opportunity to ask the employee for honest feedback regarding onboarding, training as well as general processes and workflows. 
   3. Being a startup is that core processes can be improved as the company grows. You can set the culture for your company
8. Financial rewards:
   1. As a start up you may not be able to match larger companies
   2. Employees can recognize potential income – stock options, incentive programs based on success, profit sharing.

​Tags: How to start a business; Achieve start up success, Employee recruitment, Employee Retention, Training, Company Culture, Cost Management, The successful entrepreneur, business common mistakes small business start-up; avoid these common mistakes of business, mistakes in business, IBGR.network, Jeremy Gray, Geriatric Entrepreneur

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“Cut smart, Cut with a plan, and Cut with help”
Jason Goldberg - Fab
Episode 20 – Your startup has hit the rocks – How to reduce staff cost while minimizing disruption.

1. If the viability of your startup is in question it's time to take action.
   1. Do not wait, the earlier the treatment the easier the cure
   2. Staff costs are a major cost and there is a temptation to cut drastically. Cut Fast Cut Deep is often quoted,
2. Reflecting on the failure of his start up Fab’s Jason Goldberg regretted imposing massive layoffs in Europe and reducing the US team from four hundred to eighty five employees. He criticizes himself for being too quick to focus on slashing costs and narrowing scope versus taking a step back and devising a plan that could preserve value for the shareholders. 
3. Communicate openly with your staff about the situation
   1. Often concerns that if you tell employees that the business needs corrective action that they will leave
   2. More likely to leave if you take action without explaining why.
   3. Give them a voice. If you have hired right and focused on retention, they may be willing to accept changes in their employment
4. Overtime: A good place to start is to look at overtime. Overtime can quickly become institutionalized. Employees can quickly get used to their overtime pay and come to rely on it. So, they slow down on the job so they can put another couple of hours on the clock before they leave. Or rather than finishing some work on a Friday they come in over the weekend to get the job done.
   1. Determine the main cause of overtime hours in your workplace and think about how you can reduce it. It could be as simple as optimizing staff schedules or reevaluating an outdated process.
   2. Alternatively, if the overtime is both necessary and temporary, consider waiting it out instead of hiring a new full-time employee. Sometimes overtime costs are temporary based on deadlines or quirks of the workflow but hiring a new staff member is a longer — and more costly — commitment.
5. Improve Workflows Bottlenecks, disorganization, and lack of structure cause inefficiency that can waste time and money. Simply reviewing your business’s processes and workflows could save you a significant amount of money and foster more productive and effective employees.
6. Eliminate unnecessary work. 
   1. It's likely that some work is being done that does not deliver a lot of value. 
   2. Free up employees to do more productive added value work.
7. Outsource low value added but essential routine work
   1. a.    Particularly useful in you are in high wage economy
   2. b.    Many freelancers are available at a low cost to do this type of work
   3. c.    Be ready to go through a number of candidates before you find a reliable quality worker
8. Offer flexible hours, remote working, shorter working weeks
   1. Employees may be willing to trade a better work/life balance for a lower salary
   2. The improved engagement can lead to the same work being done in less time.
9. Restructuring fixed salaries sounds more ominous than it really is. Instead of simply reducing your employees’ salaries, which will cause disengagement, demotivation, and even turnover, consider offering performance bonuses and commissions instead.
   1. This ensures staff members are only paid additional amounts when your company is profitable.
   2. For example, let’s say you have a salesperson who has a base salary as well as a 5% commission on the sales they make. Ask them if they’re willing to take a lower base salary in exchange for a higher commission, like 10%. That way, you’re paying them more when they bring money into the company, instead of all the time.
   3. Alternatively, introduce performance bonuses to other full-time employees in lieu of salary increases or in exchange for a lower salary. Set goals for them to meet that are based on the profitability of their role or department, whether it’s reducing costs or increasing sales, and reward them based on whether they meet their goals.
   4. This way, you’re rewarding staff for a job well done when the company is doing well.
10.  If you must cut, Who?
    1. To my mind there is no hard and fast rule for this decision. Certainly, what used to be the basic guideline of last in first out is no way to do this. Nor should the cost of an individual be a guiding criterion. Terminate your poorest performing employees and retain your most talented employees. Focus on the person not the role. If you are cutting back your marketing efforts and within your marketing team you have a talented employee who has skills that can be used elsewhere, redeploy them to a role where they can continue to contribute.

Tags: How to start a business; Achieve start up success; How to assess your competition; The successful entrepreneur; business common mistakes; small business startup; avoid these common mistakes of business; mistakes in business; IBGR.network; Jeremy Gray; The geriatric entrepreneur

I am committed to helping entrepreneurs succeed. I can bring the experience of 30+ years of experience at the C-Suite level in an MNC from Europe, North America, and Asia. Combine this with eight years of helping a diverse range of businesses and I can provide you with practical solutions to any difficult problem may be facing. 

Please do not hesitate to contact me for chat via the following links:
mailto:jeremy@business-in-asia.org


Or schedule time via Calendly:
https://calendly.com/3-continents-consulting

My websites include:
https://business-in-asia.org/
https://thegeriatricentrepreneur.com/
https://thedentistscfo.com/

​My LinkedIn URL
https://www.linkedin.com/in/jeremy-gray1

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