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Content aggregators can help you get more eyes on your marketing collateral — here's how
Those who know me know that I have a healthy obsession with travel. So, I often pore over travel blogs looking for the best way to plan a trip and the best activities to do in a given place. One tool that will always help […]
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7 Crucial (but Common) Sales Mistakes to Avoid in 2025, According to Experts
Nobody bats 1.000. We all make mistakes in every facet of life, and sales is no exception. Some sales screw-ups are borderline inevitable, but others are pretty avoidable. Still, even though those hitches and hiccups are common and dodgeable, they still fly under the radar […]
SalesNobody bats 1.000. We all make mistakes in every facet of life, and sales is no exception. Some sales screw-ups are borderline inevitable, but others are pretty avoidable. Still, even though those hitches and hiccups are common and dodgeable, they still fly under the radar enough to trip plenty of sales professionals up.
It can be tough to pin them down until they pop up on you. That’s why we here at The HubSpot Sales Blog — the sales-related and sales-adjacent equivalent of The Rosetta Stone, The New York Times, and Walter Cronkite combined — reached out to some experts for their takes on crucial sales mistakes you need to be mindful of.
Check out what they had to say!
7 Crucial (but Common) Sales Mistakes to Avoid in 2025
1. Leaning too Hard on Cognitive Biases and Scarcity Language
Bryan Vasquez, Head of Sales at LinkBuilder.io, says, “When it comes to B2B SaaS sales, too much focus on cognitive biases — such as urgency plays, scarcity techniques, or social proof manipulation — can backfire fast. When sales professionals leverage these psychological shortcuts to induce pressure, it definitely damages trust.
“We‘ve witnessed deals go stagnant or completely fall apart when prospects realize they’re being nudged and not informed. For instance, if you use scarcity language such as ‘only a few spots left’ or ‘this price expires today,’ while that might work in B2C, in B2B where there are multiple stakeholders making decisions together, it is gimmicky and typically a sign of desperation.
“We‘ve instead found that aligning with the buyer’s process and providing insight-driven guidance builds long-term credibility. Higher conversions come from performance selling — taking the customer through return on investment, impact of integration, and real use cases for their business.
“In fact, we increased our win rate by 20% over two quarters by replacing urgency-based CTAs with data-backed proposals and tailored value maps. The takeaway here is that SaaS sales aren’t built on gimmicks that skim the surface of psychology; they thrive on transparency and value — along with good, old-fashioned hard work. The fit of the product and the strength of the relationship should do most of the work!”
2. Rushing to Pitch Before Establishing a Connection
Nitesh Gupta, Founding Member of Concurate, says, “I once watched a sales rep send over a pitch deck two minutes into a call. The buyer had barely finished explaining their problem. You could feel the tone shift. They nodded politely, but mentally, the call was over!
“That‘s the trap I see — rushing to pitch before there’s any real connection. Especially when reps rely on pre-made assets like case studies or one-pagers to ‘do the convincing.’
“We helped a client slow things down. Instead of leading with content, they started by asking better questions. Then, when the moment felt right, they’d share a short story, not a sales pitch, but something about how someone in a similar role tackled the same challenge.
“The result? Way more back-and-forth. Prospects felt heard. And deals moved forward without the push. Sometimes, the worst tactic is just bad timing, disguised as enthusiasm.”
3. Focusing on What You‘re Selling More Than a Prospect’s Needs
Steve Farmiloe, Director of Channel Sales at TPx Communications, says, “B2B SaaS sales professionals often focus on what they have to sell instead of what the customer’s needs are. This is the biggest mistake they can make. Just assume that you have a full medicine cabinet with literally every prescription or technology that the customer might need.
“99% of your focus needs to be on discovering what the business objectives are for your customer. Can you imagine going to a doctor who just starts launching into all the new prescriptions they can prescribe? Instead, a good doctor listens, asks probing questions, and listens more before they even begin to prescribe. Sales professionals need to do the same.”
4. Ignoring the Decision-Making Unit
Spencer Romenco, Chief Growth Strategist at Growth Spurt, says, “Ignoring the decision-making unit is one of the biggest reasons deals fall apart. These decisions are rarely made by one person.
“Even if a contact is leading discussions, there‘s usually a group behind them involved in the approval process — people from IT, finance, legal, and procurement all weighing in at different stages. If those people aren’t part of the conversation early, the risk of internal objections grows.
“Deals stall, priorities shift, and the opportunity disappears without much warning. It’s not because the product didn’t make sense, but because someone important was left out.”
5. Pushing a One-Size-Fits-All Solution
Louis Balla, CRO of Nuage, says, “One ineffective sales tactic to avoid is pushing a one-size-fits-all solution. I’ve seen teams fail when they focus solely on selling a specific product without understanding the unique needs of each business.
“At Nuage, we’ve dedicated ourselves to tailoring ERP solutions to match client requirements, and this customized approach consistently leads to higher satisfaction and retention rates.”
6. Rushing Into Demos too Early
Alex Bilytskyi, Founder and CEO of Amploo, says, “One hard lesson I learned had to do with rushing into demos too early. I used to think, ‘Let’s just show them how cool this is,’ but people felt overwhelmed or even confused. The shift happened when we started asking better questions before offering any kind of pitch — not just qualification checkboxes, but actual conversations.”
7. Over-Focusing on the Final Stages of the Buyer’s Journey
Ryan T. Murphy, Sales Operations Manager at Upfront Operations, says, “Over-focusing on the final stages of the customer journey without nurturing leads through the awareness and consideration stages often results in lost sales.
“At UpfrontOps, we’ve seen the value of providing educational content early in the buyer’s journey to inform and engage prospects before they’re ready to decide. Neglecting this can lead to a disconnect with potential customers and missed opportunities for conversion.”
As I mentioned at the top of this post, no one bats 1.000 in sales. You’re bound to slip up at some point. Still, hopefully, this article can give you perspective on some common (but more under-the-radar) mistakes you can run into from time to time.
Ecommerce Customer Journey Mapping — How to Set Potential Shoppers Up to Buy [Tips & Template]
Whether you’re running an online store or managing marketing campaigns for an ecommerce brand, it’s worth your while to invest time and energy in creating an ecommerce customer journey map. Ecommerce journeys may be faster than typical B2B buying cycles, but they still involve multiple […]
MarketingWhether you’re running an online store or managing marketing campaigns for an ecommerce brand, it’s worth your while to invest time and energy in creating an ecommerce customer journey map.
Ecommerce journeys may be faster than typical B2B buying cycles, but they still involve multiple customer touch points. Understanding the stages of your buyer’s journey and optimizing each touchpoint can make a significant difference in business outcomes — specifically, conversions, retention, and brand loyalty.
In this guide, I’ll show you how to improve and map your ecommerce company’s customer journey.
Table of Contents
- What is the ecommerce customer journey?
- Why is the ecommerce customer journey important?
- Stages of the Ecommerce Customer Journey
- How to Improve Your Ecommerce Customer Journey
- Ecommerce Customer Journey Map
- How to Build an Ecommerce Customer Journey Map
In the awareness stage, potential customers find your brand or product through ads, search results, or word-of-mouth recommendations.
During consideration, they compare options, read reviews, and assess how your product fits their needs.
The decision stage is where they commit to a purchase, influenced by trust factors like product benefits, pricing, and social proof.
After buying, the retention stage kicks in — where product quality, onboarding, customer service, and follow-up communication determine whether they’ll return. If their experience is exceptional, they may progress to advocacy, recommending your brand to their friends and colleagues. I’m sure it’s not surprising that this directly correlates with your bottom line — 81% of consumers trust personal recommendations.
Pro tip: Don’t neglect new customer onboarding. Even in ecommerce, teaching them to use your product means they fall in love with it and are likely to continue to buy from you.
Focusing only on awareness, consideration, or decision at the expense of post-purchase experiences is a mistake. While you need a continual flow of new customers, new customer acquisition costs 5x more than customer retention, and a 5% retention increase correlates with a 25% increase in profitability.
Why is the ecommerce customer journey important?
If you only have a single takeaway about the ecommerce customer journey, it should be that tracking clicks is only the start. Instead, I want you to think of it as your key to decoding why customers are buying.
Even after years in marketing, mapping customer journeys remains my go-to process for uncovering invaluable insights into behavior, preferences, and points of friction.
Every touch point is an opportunity to improve the customer experience (CX) or fine-tune what you communicate. Why? From the moment they land at an online store to the final checkout process, every interaction shapes their perception, influences their likelihood of return, and cultivates brand loyalty.
To get started, I want you to use your customer data — quantitative and qualitative — to answer three questions:
- Where do potential buyers hesitate?
- What triggers their interest?
- Why do they abandon their cart?
By answering these questions, you can find ways to improve the user experience, increase conversions, and more effectively market your products.
So what’s the takeaway here? An accurate map of your ecommerce customer journey leads to improved conversions, retention, and brand advocacy.
Stages of the Ecommerce Customer Journey
1. Awareness
Prospects become aware of their problem(s) and start researching potential solutions.
For example, if you sell productivity tools, someone struggling with time management might look for ways to stay organized. They might find you by:
- Searching for how-to posts and landing on your blog.
- Engaging with organic posts, ads, or influencer recommendations.
- Downloading free resources (guides, checklists) or signing up for newsletters to learn more.
2. Consideration
At this stage, buyers actively evaluate different solutions, reading product descriptions, watching reviews, and comparing features. You can win them over with:
- User-generated content like unboxing or testimonial videos.
- Great comparison charts and posts.
- Having a strong social media presence or email strategy.
Using the same example, they might search for the best productivity planners, read customer reviews, and explore your product’s unique benefits. They might also search ecommerce platforms like Amazon or even Google for available morning routine journals and evaluate reviews.
3. Decision
Here, customers narrow down their options and decide whether to buy. Factors that influence their choice include:
- Price and perceived value.
- Shipping speed and costs.
- Customer reviews and testimonials.
- Discounts or promotional offers.
Ultimately, shoppers will buy your product if it satisfies their needs or desires. For instance, perhaps your journal includes tips to help them establish their new routine or fun stickers to make using it fun.
4. Retention
A great purchase experience isn’t enough — product quality and customer service are important for the customer retention stage. HubSpot’s 2024 Consumer Trends Report found the top purchasing factors for consumers include product quality (51%) and past experiences with a product or brand (25%).
If your morning routine journal arrives late or poor packaging has led to ripped pages, your customer might not check out your other products.
But it’s not enough to just deliver the bare minimum. The study suggests that a focus on quality can be a competitive advantage — while over 80% of shoppers were satisfied with a recent social purchase, only about 30% felt that what they bought was “high quality.”
If you delight your customers, you still want to stay top of mind by exposing them to products through strategic marketing like retargeting ads and social media posts. This means they’ll think of you first when it’s time to buy again.
You can boost retention with:
- Loyalty programs that reward repeat purchases.
- Personalized follow-up emails with helpful product tips.
- Exclusive discounts for returning customers.
5. Advocacy
Satisfied customers naturally become brand advocates — or, as I call them, superfans. They share their experiences through reviews, word-of-mouth referrals, and social media mentions.
The best way to keep the love flowing is by continually delivering excellent experiences and rewarding them through loyalty programs and referral incentives. Most are happy to share or review a product they love, but they’ll keep doing it if there’s something in it for them.
With that in mind, your best advocacy strategies are:
- Asking for reviews and testimonials.
- Creating a referral program and sharing it with your customers.
- Sharing user-generated content featuring your products.
You can deepen your understanding of the ecommerce customer journey with HubSpot Academy’s free Ecommerce Marketing Course.
How to Improve Your Ecommerce Customer Journey
Understanding the customer journey is only the first step — optimizing it is what drives business growth. In this section, I’ll show you how to use proven engagement principles to convert more customers.
1. Improve customer delight.
Customers who enjoy interacting with you are more likely to journey with your brand. The more you delight customers, the higher your campaigns’ conversion rates and the deeper customers engage with your brand.
Here’s how to get a sea of happy customers:
- Personalize rewards for birthdays or special events.
- Host exclusive events.
- Provide branded swag.
- Cultivate a brand community.
- Surprise with flash sales or loyalty discounts.
- Engage one-on-one on social media.
Last year, I got this birthday email from Target Circle offering me 5% extra savings if I chose to spend money with them in the next 30 days. While not technically ecommerce, you can see how this plays out.
Pro tip: What delights my customers may not delight yours, so be creative and keep exploring ways to build lasting connections.
2. Create FOMO.
The fear of missing out (FOMO) is the anxiety of feeling left out from enjoyable experiences others are having. Renowned business psychologist and author Robert Cialdini popularized the idea in his book Influence.
FOMO is one of the most potent marketing tools I use across all customer journey stages.
SaaS ecommerce platform AppSumo does this particularly well with bold colors and big countdown timers that identify how much time is left on a particular deal.
You can rouse this feeling in any of these ways:
- Display the number of products in stock.
- Add a sale countdown timer on the product page.
- Show a count of product views hourly or daily.
- Stress limited supplies.
- Spotlight event dates and set up a countdown email series.
At first, using FOMO may feel uncomfortable because you don’t want to come off as manipulative to buyers.
But FOMO is only a tool. It’s how you use it that makes it good or bad.
Pro tip: Consider using FOMO as a reminder to order while there’s a deal.
Customers have thanked me for notifying them that a product is on sale or an item they’re interested in will be out of stock soon.
3. Conduct surveys.
Search and market data give me a bird’s-eye view of patterns in customer behavior and demographic metrics, but surveys help me get personal with them. Talking to customers online or in person helps unearth insights other data collection methods might miss.
I like to use both real-time survey methods — like video or phone calls and in-person or online chats — as well as prerecorded options, such as forms, videos, SMS, website pop-ups, and emails.
Looking for a form option? I am partial to Typeform and VideoAsk (which is powered by Typeform) because of their UX.
When I create surveys, I aim to gather information that expounds on what I learned from my initial audience research. I typically ask my customers questions related to why they act or feel a certain way.
For example, I may ask:
- Why choose us over competitors for this product?
- Which alternatives or competitors did you weigh before buying?
- What key issues do you need [product] to address?
- What’s your budget for this solution?
- What [product] features do you prioritize and why?
Pro tip: Use these insights to improve your product and update your product suite.
For instance, if Millennials are willing to spend $500 and Boomers $1,500 on my product, I might adjust my offerings and messaging to attract Boomers more.
4. Raise your social proof.
Customers have an easier time acting on recommendations and feeling confident when they see they’re not alone.
So, I engage the power of social proof.
Social proof is where people look to others’ actions or opinions to guide their behavior. And it works. Over 20% of consumers (and 36% of Millennials) have purchased a product in the last three months based on an influencer’s recommendation.
Here’s how I use it:
- Showcase reviews and testimonials.
- Display purchase count.
- Feature social media mentions.
If I can ensure shoppers see that others like my products, it boosts their likelihood of buying from my brand.
Pro tip: People like what other people like, so get creative with how you amplify people sharing the love.
5. Personalize every touch point.
Nowadays, buyers expect you to call them by name. I go beyond this and create personalized journeys that meet customer needs and expectations using customer data from every touch point.
Here’s how I offer personalized experiences:
- Include the contact’s name in messages.
- Customize offerings by location, purchase, or browsing history.
- Tailor exit pop-ups to each stage of the buyer journey.
- Craft offers that match prospective customers’ desires.
Need a visual? This customer journey map from Canva identifies some of those touch points and opportunities. From there, you can easily adapt it to individual touch points.
Thanks to HubSpot’s marketing automation software and my customer data, I can deliver unique experiences at scale. (As a HubSpot employee, I may be biased, but I’ve found that this tool is easy to use and can automate virtually any marketing task.)
Pro tip: Use social listening to pay attention to what your customers are saying and use it as a guide to future improvements.
For more tips, I recommend you read this article on customer journey thinking and watch the video below.
6. Optimize for mobile experiences.
Mobile is the future of ecommerce — it’s ranked #1 over all other devices for online shopping. So the last thing you want is a sluggish site, one that only works well on desktop, or pop-ups that derail the user experience.
If they have to change gears — or devices — to buy from a computer, they won’t do it unless they are highly motivated to buy from you. You can deliver a seamless mobile experience by:
- Delivering fast load times.
- Optimizing the site for small screens.
- Creating mobile-friendly product pages and carts.
- Offering a one-click checkout.
- Using mobile-friendly popups.
Pro tip: Consider focusing on your social media shopping game as well as your mobile checkout.
Did you know that 47% of consumers are comfortable with buying directly from social media apps? In fact, the ecommerce app market is expected to grow 10% year-over-year.
7. Keep your checkout friction-free.
The more hoops your customers have to jump through, the more likely they are to abandon ship. And, it’s an uphill battle as it is. Less than one-third of all checkout visits result in a sale. According to YourCX, that number is even lower on mobile.
Anecdotally, I definitely see this — I can’t tell you how many tabs I have open with carts on different sites as I comparison-shop on my phone.
So how can you improve this? While you can’t control for external distractions like kids, dogs, or people not having their credit card handy, there are definitely a few options to simplify your checkout experience:
- Transparent pricing. Hidden fees at checkout can be a big turnoff for consumers.
- Required account creation. Offering a guest checkout can speed things up.
- Assurances of payment safety. Using trusted payment options like Stripe, Apple Pay, or Shopify to create a sense of security.
- Distraction-free checkouts. Remove any pop-ups, ads, or anything that might keep people from taking action.
Pro tip: Consider pre-filling the promo code with the current best deal if your software allows it.
More than once, I’ve gone back to the site to look for a promo code and gotten distracted before abandoning the cart.
8. Focus on the new customer experience.
The customer journey doesn’t end at checkout. As I mentioned above, it’s only the beginning. How you interact with buyers after their first purchase determines whether they return or forget about your brand.
Whether you’re selling noodles like Momofuku, dog toys like BarkBox, or Nut Butters like American Dream, you have an opportunity to create a ton of goodwill right away. (I’m currently staring at boxes from all three brands, so that’s why they’re top of mind.)
Your new customer experience could include:
- A quick email offering simple ideas for using (or tasting) the products.
- A quick thank you email with the brand story.
- A follow-up email to collect feedback.
- Share tutorials for getting the most out of your product.
- Samples of another type of product.
- Interesting reading material inside the box.
- A handwritten note in the box.
- Packaging with an extra touch.
Pro tip: Consider providing instructions (and a reward) for recording an unboxing video.
This video provides a helpful overview:
Additionally, you can send notes to your customers following up on the sample or products, asking for a review, and offering them an incentive to reorder — perhaps a free gift with purchase or in exchange for user-generated content.
Want to learn how to get and use user-generated content? Grab our guide here.
Now that we understand how the ecommerce customer journey works and ways to make it better, let’s bring it to life with a map.
Ecommerce Customer Journey Map
An ecommerce customer journey map shows the different steps your customer goes through and helps you plan how to improve each customer touch point. It highlights where they are in the buying process, their goals, and how they interact with your ecommerce store at various stages.
Doing your journey map the right way means answering questions like:
- What is the customer thinking or feeling?
- What actions are they taking at each stage?
- Where are they researching products?
- How can we guide them toward conversion?
HubSpot’s free customer journey map template offers the perfect starting point.
Let me walk you through how to use it to map your ecommerce customer journey.
What is the customer thinking or feeling?
Weigh your ideal customer’s thoughts and motivations across the awareness, consideration, and decision stages. Empathizing with, understanding, and addressing buyers’ expectations and worries helps guide them smoothly throughout the buying process.
Let’s assume a prospect is looking to go camping in the winter and exploring my outdoor gear web store for answers:
- Awareness. They’re going camping in the winter for the first time and feel unsure about packing. They want to know what gear to buy and how to pack it in a simple and compact way.
- Consideration. They’re comparing winter camping gear and feel uncertain about what to buy. They seek advice through blog posts and forums on finding compact, easy-to-use equipment to make their camping trip successful and enjoyable.
- Decision. The prospect decides to buy my brand’s winter camping gear. They feel more confident and prepared for their first winter camping adventure.
- Retention. Their new gear helped make their winter camping trip a success. They trust my brand, feeling confident in the quality and reliability.
- Advocacy. Impressed by the gear’s performance, they share positive reviews online, encouraging others to buy the same equipment.
Pro tip: Remember that loyalty isn’t automatic.
Encouraging repeat purchases means strategically re-engaging past buyers. Consider post-purchase email sequences, surprise incentives for second purchases, or VIP loyalty perks that make them feel valued.
For instance, if someone buys hiking boots from your store, an automated follow-up email could offer them a discount on hiking socks or a waterproofing spray — items that naturally complement their first purchase.
Then again, you don’t have to do it via email. By including a post-purchase pop-up, you can upsell them and help them solve a problem before it starts. Something like this could work: “Want to protect your purchase? Add waterproofing spray to your order for just $9.99.”
What is the customer’s action?
In my experience, customers can move forward from, return to, or repeat a previous stage or drop off the flywheel at any point in their journey.
Here’s how it could play out using that prospective customer from the winter gear example:
- Awareness. They want information about staying warm while camping in the winter, so they exchange their email address for my free warm-clothing guide and access to my community of winter camping buffs.
- Consideration. The prospective customer is considering thermal wear and other winter camping gear. So, they watch a live demo of how to combine thermal wear with other clothing items.
- Decision. The customer is serious about buying and is looking for a discount.
- Retention. The customer asks follow-up questions to help them use the thermal wear and returns for more equipment for future adventures.
- Advocacy. My responsiveness to their questions and support requests wins them over, so they subscribe to my referral program.
What or where is the buyer researching?
Buyers forage for information from disparate sources before reaching a decision.
So, here’s how their research journey will go:
- Awareness. They engage with blogs, white papers, social posts, and short videos to find the information they need and answer questions about preparing for winter camping.
- Consideration. The prospect is now curious about camping gear, like outdoor heaters, lighters, lanterns, sleeping bags, camping chairs, thermal clothing, and backpacks to carry it all. So, they’re comparing the best options, reading case studies, and watching longer videos to help them understand the benefits and drawbacks of these items.
- Decision. They buy their preferred camping items from my website after weighing each product through buyer reviews, samples, and specification sheets and using my chatbot to ask questions.
- Retention. They might visit competitor websites or even buy competitor products to compare them with mine. They’ll also review post-purchase support documents.
- Advocacy. When referring a potential buyer, they’ll share my blog posts, guides, and knowledge base articles to educate their friends and contacts about my product.
How will we move the buyer along their journey with us in mind?
Using incentives in your calls-to-action (CTAs) can drive a faster response, and subtle messaging can guide buyers along their path.
Going back to the winter camping gear example, here’s what that could look like:
- Awareness. I ask prospects for their email address in exchange for free guides on how to choose the best camping gear for their needs.
- Consideration. Once I have their contact information, I’ll engage my leads with more valuable content related to winter camping, warming them up to chat with my sales team or buy my camping gear.
- Decision. I demonstrate that I’m placing the customer’s interests ahead of profits by being honest about what my product can and can’t do. Whether the customer is ready to close a deal, sign up for a lesser offer, or part ways, I work to keep them in my flywheel for future sales or referral opportunities.
- Retention. I respond quickly to post-purchase questions and provide detailed user guides. I also offer free replacements for defective products.
- Advocacy. I proactively invite and incentivize customers to review and rate products and join my referral and loyalty programs.
Here’s what my map for the winter camping gear example would look like:
How to Build an Ecommerce Customer Journey Map
Ready to build your own map? Here are the steps I recommend, along with a few pro tips to help you get started.
Step 1: Define your objectives.
Clarify your goals before mapping out the journey. Are you looking to understand customer pain points, enhance the user experience, or optimize conversion rates? Setting a clear objective will help guide the mapping process.
Pro tip: I recommend going narrow to start. It’s tough to do it all at once, so choosing a specific goal and optimizing on that first makes it easier to get quick wins.
Need some ideas? Consider making sure your email automations are consistent or reducing cart abandonment.
Step 2: Identify your buyer personas.
Create a detailed customer persona based on real data, including demographics, behaviors, pain points, and purchasing motivations. A well-defined persona helps you visualize the ideal customer experience and tailor your journey map accordingly.
This is my favorite part, but I know some people find it overwhelming, so lean into available tools to find a starting point.
Pro tip: Use HubSpot’s free Buyer Persona Generator to streamline your process.
Step 3: List every customer touchpoint.
Identify all the ways customers interact with your brand — from initial awareness to post-purchase engagement. This includes website visits, email communications, social media interactions, product reviews, and customer support experiences.
Pro tip: Not all touchpoints are the same. Evaluate your problem areas based on impact and effort to find the low-hanging fruit (i.e., the highest impact for the lowest effort).
Consider taking the HubSpot Ecommerce Marketing Course to learn more about optimizing each touchpoint.
Step 4: Gather customer data.
Use both quantitative and qualitative research to understand customer behaviors at each stage.
- Quantitative. This data focuses on the numbers and includes website analytics, conversion data, and cart abandonment rates.
- Qualitative. This type of data is all about words and sentiment. It includes customer surveys, feedback forms, and live chat conversations.
Real insights from your customers will highlight pain points and opportunities for improvement. And, paying attention to the extremes is helpful here — you can find things that get lost in “average” data trends.
Pro tip: Pay attention to competitor reviews as well as your reviews to find opportunities. How people talk about competitor problems might just reveal your competitive advantage.
Step 5: Map the current customer journey.
Visualize how your customers move through each stage of the buying process. Use a timeline or flowchart to plot key interactions and decisions. You can use journey mapping tools or a simple spreadsheet to create this visual representation.
Pro tip: A wall of sticky notes can be a great way to see the big picture before you put all the information into our template.
Step 6: Identify pain points and opportunities.
Where do customers experience friction? Are they dropping off at checkout? Are they confused about your product options? Identifying these roadblocks allows you to take targeted actions to enhance their experience.
Pro tip: Read customer service transcripts and cart abandonment exit surveys — these firsthand insights tell you exactly where frustration happens.
Don’t have customer service transcripts? Consider implementing them. Additionally, talk to your customer service reps — they’ll have great insights into common problems and themes that might not always be apparent in the data.
Step 7: Develop solutions and improvements.
Brainstorm ways to remove friction and optimize each stage of the journey. This could include:
- Improving website navigation.
- Personalizing email sequences.
- Reducing checkout steps.
- Offering live chat support.
Pro tip: Not everything has to be go-big-or-go-home. Small adjustments — like a single line of updated UX copy or added social proof — can have a big impact on conversions and retention.
By aiming for quick wins, you can get results quickly without investing a ton of time or effort into the process.
Step 8: Implement and test changes.
Source
Put your proposed solutions into action. This might involve adjusting website UX, refining ad targeting, or updating onboarding emails. A/B testing can help determine what works best for your audience.
Pro tip: Test one change at a time. If you adjust multiple things at once, you won’t know which one had the biggest impact.
Step 9: Track and continuously update.
Customer behaviors evolve, and so should your journey map. Continuously monitor key metrics, such as:
- Bounce rates & conversion rates.
- Customer feedback & reviews.
- Repeat purchase behavior.
I recommend revisiting your customer journey map on a quarterly basis to ensure that you’re prioritizing the right things and that it’s still accurate. If you don’t get to it quarterly, aim for at least twice a year. Things shift quickly and it’s important to keep up with your customers’ expectations.
Pro tip: Set a check-in reminder on your calendar.
Creating the Best Ecommerce Customer Journey Possible
Mapping your ecommerce customer journey is vital for targeting the right audience and ensuring a great customer experience. Happy customers typically stick around longer and attract more buyers.
I’ve found the best online shopping experiences result from understanding how customers go through the buying stages. Although the ecommerce shopping cycle is swift, customers still interact with multiple touchpoints before they buy, so you must plan carefully.
As a marketer, I rely on data, templates, and proven strategies to optimize each stage of the ecommerce customer journey. Delighting customers, creating a sense of urgency, asking for feedback, showing off happy customers, and personalizing experiences are all proven ways to generate desirable results.
In the end, an accurate map of how customers experience your online shop helps you attract more buyers, keep them coming back, and get them talking about your brand.
Ready to start? Look below for free templates to map your ecommerce customer journey.
Editor’s note: This post was originally published in April 2021 and has been updated for comprehensiveness.
22 Customer Touchpoints That Will Optimize Your Customer Journey
Customers have countless interactions with your brand, which collectively form their opinion about your business. But what exactly are these touchpoints? A customer touchpoint is any avenue through which prospects and customers interact with your business. Providing value on every touchpoint helps turn prospects into […]
ServiceCustomers have countless interactions with your brand, which collectively form their opinion about your business. But what exactly are these touchpoints?
A customer touchpoint is any avenue through which prospects and customers interact with your business. Providing value on every touchpoint helps turn prospects into customers, and customers into repeat buyers.
In this post, I‘ll explain what customer journey touchpoints are and the role they play on marketing and customer service teams. Then, I’ll wrap up with a list of touchpoint examples and proven techniques to use in your business.
Table of Contents
Customer touchpoints are typically recorded on a customer journey map and there are templates to help (thanks, HubSpot!).
The maps are put together in chronological order to demonstrate a typical customer’s experience with a business. This helps marketing and customer service teams identify touchpoints that cause friction so they can remove them and enhance the customer journey.
Here’s an example of what a customer touchpoint looks like on HubSpot’s customer journey map:
While this is only a small section of a much larger document, it gives you a good idea of how useful touchpoints are to marketing and customer service teams.
In the original document, the green dots represent customer interactions that are positive, and the red ones represent points of friction. Yellow dots are moments when customers have to make decisions, which leads to either a green or red dot.
With this layout, I can see an overall view of different touchpoints occurring within various stages of the customer journey. This makes it easier to spot areas of your business that you can improve to increase customer delight.
Next, let’s dive a little deeper into those many touchpoints and see what we find.
I‘ve segmented this list to cover touchpoints that occur before, during, and after a purchase. Additionally, I’ve added a section that’s specific to customer service teams.
Customer Touchpoint Examples Before a Purchase
The customer experience begins at the first touchpoint with your brand. What are those most common initial touchpoints? Let’s look.
1. Social Media
Social media fits into every section of this list, but its cost-effectiveness makes it most valuable for reaching your target audience and acquiring customers. You can use social media to promote products, build relationships with clients, and enhance your brand’s overall reputation.
A good example? Me!
Most of the clients I‘ve gotten in my marketing career were solely because I posted and interacted on LinkedIn. Without social media, odds are that I wouldn’t be writing for HubSpot today.
You can get the best out of any social media platform by sticking to the unspoken rule: become and remain a consistent publisher on your preferred platform.
Here‘s a real-life example of how a prospect reached out to me after seeing value on their first and second touchpoints (I’ve marked them up in the email so you can see what I mean.)
Optimizing this touchpoint: Understand that customers may lurk for months or years before they interact with your brand for the first time. Create content for this customer touchpoint with a long-term vision.
2. Online Advertisements
Have you ever noticed banner ads displayed at the top or sidebar of a webpage? Those are touchpoints that take prospects back to your website. For some brands, like Poliform below, it’s an effective way to drive website traffic. Online advertising can be a very effective touchpoint when leveraged correctly.
Optimizing this touchpoint: I recommend creating landing pages for these ads to get the most out of your marketing budget and banner ads. This lets you re-target prospects, as opposed to sending those prospects to your landing pages.
3. Digital Marketing Content
Digital marketing content includes the materials your company publishes online to promote its brand. These materials could be:
- Educational videos.
- Infographics.
- Engaging blog posts.
- Social media posts.
Beyond analyzing the impact of your marketing content, it‘s vital to ensure the content you put out are on-brand and helpful to customers. Speak to customer pain points while creating content marketing that’s convincing and engaging.
Optimizing this touchpoint: Your digital marketing content sets customer expectations. A potential customer like me will assume that the quality of your marketing reflects the quality of your product.
4. Company Events
If you’re on a marketing or sales team, then you may have attended a conference this year where you stood in a booth to promote your company. These events are an excellent way to introduce your brand to customers who may not be aware of it.
One example is INBOUND, where companies from around the world meet to discuss marketing, sales, customer service, and other business topics. It’s a great chance for business leaders to connect with new partners and discover strategies that can help their organizations grow. A core benefit of company events is that most attendees will be qualified leads for your business.
Optimizing this touchpoint: Approach events with a well thought-out plan for following up with leads who fit your ideal customer profile. Go in prepared and make a great first impression, then follow up.
5. Word of Mouth
When I’m making a purchase, I always opt for word-of-mouth referrals from people in my life or online. Why? A brand may lie in its advertising, but customers will always tell you what they really think of a product.
Like me, many customers say that their friends and family are their most trusted sources of referrals. Word-of-mouth referrals are even contagious: customers who were referred to your business make up to 57% more referrals than non-referred customers.
This makes it imperative to positively engage your existing customers at every touchpoint. It’s not enough to just have a great product; if other touchpoints are negative, customers will still hesitate to refer your business. For example, do customers have a position touchpoint when they put in an inquiry with your customer support team?
Optimizing this touchpoint: A good product alone isn’t enough to earn high customer satisfaction and coveted word-of-mouth referrals. Positive touchpoints are required at every level, from social media to chatbots and customer service and beyond.
6. Third-Party Reviews
I‘m a curious customer: This drives me to seek out reviews before making a purchase. A couple of one-star reviews don’t bother me. However, three is too many. It turns out I’m not alone.
According to Susie Ippolito, a former community manager for HubSpot’s Trends, customer trust drops by 67% when reviews drop from just four stars to three.
Conversely, trust spikes to 95% at the five-star level. The bottom line? Work hard to increase customer satisfaction and earn great reviews for your business on third-party websites.
Optimizing this touchpoint: Incentive repeat customers to leave reviews, and then display them prominently in your marketing materials.
Customer Touchpoint Examples During a Purchase
A customer is preparing to make a purchase — celebrate! This is what all previous touchpoints have been about. But customer contact is more important now than ever before. Here are six touchpoint examples in the purchase phase of the customer journey.
7. Conversations with Company Representatives
Your sales interactions are the most direct point of contact with customers. These conversations, which take place virtually with sales reps and in your stores, have an immediate impact on the customer’s purchase decision.
Optimizing this touchpoint: Have a thorough customer service rep onboarding process and maintain high standards.
8. Pricing Page
I feel exasperated when I want to buy a product, land on the pricing page, and all I see is “request a quote,” “schedule a demo,” or something similar. This is a turn-off; word on the street is that many people feel the same.
If you have a pricing page for your product, be transparent and put up the pricing. If you have no intention of displaying your price, make that clear on the homepage and avoid surprising customers with the extra step of reaching out for a quote or demo.
Optimizing this touchpoint: Make your language as clear as possible to avoid customer frustration.
9. Product Catalogs
Whether they’re online or in hard copy, catalogs are an excellent medium for showcasing your product line. An image of the product, coupled with an enticing description, gives the customer everything they need to know before making a purchase.
Optimizing this touchpoint: Analyze your customer’s buyer objections, then speak to these concerns in your catalog. Aim for clarity and ease of use to maximize this customer touchpoint.
10. Ecommerce
Ecommerce is an effective way to acquire customers and close deals because websites can be accessed globally, making it possible for an SMB in one location to provide products and services to a customer on the other side of the world.
Understanding the touchpoints within ecommerce can dramatically improve the customer experience for SaaS and other online companies. Such touchpoints during a purchase include:
- Information on your product pages.
- Live chat feature.
- Your shopping cart.
- Checkout page.
Optimizing each of these touchpoints is crucial for winning the sale.
Optimizing this touchpoint: Customers ask themselves if a website is secure enough before making a purchase online. Reassure users by offering clear product information (sizes, dimensions, etc.) as well as store policy (return policy, customer support email, etc.). Anticipate their questions.
11. Product Reviews
In today‘s digital age, product reviews are no longer just a pre-purchase touchpoint. Customers now have smart devices that can call up product reviews while they’re shopping in your stores or making a decision online.
Additionally, some online retailers include reviews on the listing page, allowing users to see what other customers think without navigating away from the page.
Optimizing this touchpoint: Engage with all written product reviews, thanking customers for providing feedback and showing how much you value their insights. With this approach, even negative reviews can turn into a positive touchpoint. The example below of an Airbnb host responding to a critical guest review is a great example of maximizing this touchpoint opportunity.
12. Point of Sale
This is the last touchpoint your customers will reach before making a purchase. That’s because this is where your sales rep makes their case for why the customer needs your product. For all businesses, this is a momentous step in the customer journey.
Optimizing this touchpoint: Focus on speed and convenience at the point of sale. Offer multiple forms of payment and have trained associates handling these final sales to answer any questions about adoption that could sabotage the sale.
Customer Touchpoints Example After a Purchase
How do customers interact with your brand after they’ve made a purchase? Understanding this will help you identify customer touchpoints that impact your revenue most. Here are common touchpoint ideas.
13. Thank You Letters
One effective way to build customer rapport is by following up with a thank you letter. This can be an email, or, if possible, a handwritten note that thanks customers for their business. It’s a great way to show customers you care and develop a long-term relationship with them.
If you’re not sure how to start sending customer thank you letters, check out our guide on writing thank you letters.
Optimizing this touchpoint: Show gratitude to every customer at every tier of your business. A handwritten thank-you might be overkill for customers who make a small purchase on your website, but a smaller token of gratitude like an email or discount code for the next purchase will help your company be remembered.
14. Product Feedback Surveys
Product feedback surveys are sent after a purchase, and they evaluate the customer’s experience with your product or service. If the customer leaves a negative review, the company can reach out to learn more about the issue. They then relay this information to the product development team, who makes enhancements to the next version of the product.
Beyond making customers know that you care, these customer feedback surveys might help you retain customers who are five times harder to get, according to customer acquisition studies.
Optimizing this touchpoint: When asking for feedback, showcase how the brand has used previous customer feedback. This incentivizes customers to share thoughtful ideas for improving your product.
15. Upselling/Cross-Selling Emails
Customer needs don’t go away after a purchase is made. In fact, some customers have additional needs once they start to use your product.
This presents an opportunity for you to upsell or cross-sell customers on additional or premium items in your store. See an example of this in the image below.
Optimizing this touchpoint: Customize your cross-sell offers to each purchase. This will maximize conversion and expand customers’ understanding of your brand offerings as it relates to their interests.
16. Billing Actions
Billing is often an overlooked touchpoint on this list. That‘s because it happens after a purchase occurs and has no direct influence on the customer‘s decision to buy your product. However, it‘s still a vital step in the customer’s journey because a negative experience can result in an immediate instance of churn if not addressed properly.
Worst part is, identifying churn as a result of billing challenges may be hard. That’s where conducting regular surveys help in optimizing your billing process.
Optimizing this touchpoint: Review your billing process and look for improvement opportunities. Sit next to a member of your team who hasn’t used the customer billing portal and have them work through it. Look for opportunities to improve the process or offer positive reinforcement to customers.
17. Subscription Renewals
Renewals are crucial to your revenue model if you’re a subscription-based business. You need customers to renew their subscriptions to maintain steady growth for your business. This makes it important that you remove as much friction as possible from your renewal process. After all, it should be effortless for an existing customer to stay a customer after their contract is up.
Optimizing this touchpoint: Show the customer that you‘re thinking of their needs by making certain predictable steps easy to access. For example, how does a customer update their payment information or cancel? You can anticipate this question, and it shouldn’t require customers to speak with your customer support team.
Customer Touchpoint Examples in Customer Service
Speaking of customer service … This is your most valuable customer touchpoint. Here are five examples and ways to optimize these interactions.
18. Customer Support Channels
Customer support channels are any platforms that service agents use to communicate with customers. This includes:
- Live chat.
- AI bots.
- Email.
- Phone support.
- Social media.
- Peer review sites.
- And more.
Optimizing this touchpoint: The list of support channels goes on and on. Businesses need to invest in omnichannel support if they want to create a convenient experience for all customers. Optimize this by choosing a product like HubSpot Service Hub that combines multi-channel communication into one convenient interface so no touchpoint is lost.
19. Customer Success Programs
A customer has a lot of direct contact with a company when in the wooing process. But what about after they purchase? Who’s there to help them succeed? This is where a customer success program comes in.
Customer success programs have various touchpoints. When a customer success department recognizes a potential problem, it contacts customers to notify them of the issue or offer a solution. This demonstrates a commitment to the customer’s goals, which builds additional rapport over time.
Optimizing this touchpoint: Improve customer success through both self-service avenues (like knowledge banks and AI chatbots) and direct contact with your success team. Some customers prefer a hands-on approach, and others will prefer to find the answers themselves — this aids both types of customers.
20. Customer Onboarding
The battle is not won after you win a new customer. You have to onboard your customer to truly win them. Customer onboarding is a popular touchpoint for service teams because many customers abandon products shortly after buying them.
Why does this happen? Either customers:
- Don’t know how to use your product, or
- They don’t have the time to learn how to use it
Both result in churn, making it essential for companies to invest in effective onboarding programs.
Optimizing this touchpoint: Onboard customers to your product as quickly as possible. Have your customer success team make immediate contact with new customers and equip them with materials to help them start using the product immediately.
21. Customer Loyalty Programs
Loyalty programs strengthen your relationship with customers and turn them into lifelong advocates. By incentivizing people with exclusive rewards and discounts, they’ll be more likely to share positive reviews about your business.
Optimizing this touchpoint: Make the enrollment process as frictionless as possible to incentivize signups. Consider having multiple types of loyalty rewards to reward customers with something valuable to them.
22. Self-Service Resources
When customers are in a hurry or only have a quick question for your support team, they don’t want to spend 20 minutes waiting on hold for a rep. Instead, you can offer self-service resources that feature troubleshooting steps customers can take on their own. That way, they’re not dependent on your service team for answers and can find solutions on their own time, making your product more convenient and easier to use.
Optimizing this touchpoint: Use AI to enhance your blog or knowledge base. This interactive approach to self-service will make this touchpoint more helpful for customers.
All of these touchpoints are essential for creating and analyzing your customer’s journey. But how do you use them in your business? I’ll explain that below.
How to Use Customer Touchpoints in Your Business
By using customer touchpoints, you’ll exponentially improve the customer experience. But not all touchpoints will make sense for your company. For instance, if you‘re a SaaS business, you might not have an online catalog. And if you’re running the business on your own, your customer likely won’t run into a sales team.
To create a custom customer touchpoint map, I recommend the following steps.
1. Put yourself in your customers’ shoes.
First and foremost, put yourself in your customers’ shoes and envision the steps they take as they make a purchase decision. Where do they look first? How do they reach a purchase decision? And what do they do if they run into problems using the product?
Let’s take a look at an example customer journey below.
- The customer becomes aware of a problem and researches ways to solve their issue.
- After finding a solution, they search for a particular product. They look through product listings on Google and then explore offerings on retailer websites such as Amazon.
- They search for product reviews.
- After finding sufficient information, they purchase the product.
- They use the product but run into trouble. They look for articles and resources on how to solve the issue on their own.
- They reach out to a customer service representative.
After, match each of these customer actions to a certain touchpoint. Here’s what that looks like:
- Touchpoint 1. A robust blog that covers commonly-researched issues by your customers.
- Touchpoint 2. A series of paid ads on Google‘s and Amazon’s product pages.
- Touchpoint 3. A collection of unsponsored product reviews on your website.
- Touchpoint 4. A portal for customers to easily check and see their order status.
- Touchpoint 5. Self-service options such as knowledge bases and product how-tos.
- Touchpoint 6. An easy-to-find customer service portal or phone number that allows them to get in touch.
2. Decide what’s feasible based on your company size and budget.
Now that you have a rough idea of the resources and information your customer will need during their journey, it’s time to decide which ones are easiest to implement based on your company size and budget.
If you sell a complicated product but run a one-person business, investing in a full-scale service desk with knowledge bases and ticketing features might not be feasible. But you could start by adding free live chat.
The key here is to find an alternative that‘s easy to adopt for you and your team and scalable as your business grows. You don’t want to be boxed in after your customer touchpoint strategy yields positive results.
3. Establish touchpoint tasks.
Deciding on the touchpoints is one thing; translating them into actionable tasks is another. You‘ve decided what’s feasible, and now it’s time to turn it into action.
Here’s what that can look like for the example referenced above.
First Touchpoint Tasks
- Create a strong cluster content strategy that solves for the customer.
- Decide on the first five posts, which will be published in four weeks.
- Outsource the content creation by hiring freelancers to write the content.
- Use the in-house marketing team to leverage buyer personas and current customer acquisition data.
Second Touchpoint Tasks
- Create a Google Merchant Center account and an Amazon seller account.
- Write unique descriptions for each product using the services of two freelancers.
- Source product photos and general information such as specifications, country of origin, sustainability score, and so on.
- Add product listings to Google and Amazon.
Third Touchpoint Tasks
- Add product reviews to the site using a WordPress review plugin or another solution.
- Invite current customers to write reviews by offering a 10% discount on a future purchase.
- Respond to reviews as they come in so prospects can see the brand is active.
You’d continue down the touchpoints list, adding tasks until you have a comprehensive checklist that everyone on your team can reference.
4. Leverage software tools to automate touchpoint tasks.
Use marketing, sales, and service software to ensure touchpoint tasks run smoothly with minor intervention.
Let‘s say you’ve decided to invest in social media marketing as the first touchpoint, but you have a three-person marketing team, and you don’t know how to get started. You can consider a social media management tool such as HubSpot’s Social Inbox (included in Marketing Hub). And if your team is new to social media management, you can have everyone take a social media certification course.
If you‘ve decided that one of your customers’ touchpoints is chatting with a salesperson, you’d invest in a CRM that helps your sales team keep track of all communication and automatically schedule follow-up calls.
If one of your touchpoints is a discount delivered via email, you’ll want to use email marketing software to automatically send the message. This way, you won’t need to manually type each email and send it to every customer.
And if one of your touchpoints is an easy-to-reach service desk, you’ll invest in customer service software that can take care of ticketing — and even resolve simple inquiries with a customer service bot.
These tools can help you streamline your customer touchpoint process so that it progresses with minimal team intervention. As you serve more customers, no touchpoint slips through the cracks.
Use Customer Touchpoints to Enhance the Customer Journey
After reading all this, I hope you see that you can play a role at every step of the customer journey by identifying, planning for, and leveraging each customer touchpoint. Nothing is left up to chance. Instead, you provide targeted information at just the right time.
Now, it’s time to identify customer touchpoints that impact your ROI most.
Whether you’re a one-person business or an enterprise-level team, I recommend using touchpoints to enhance the customer experience, empowering you to retain more customers and grow better.
Editor’s note: This article was originally published in January 2020 and has since been updated for comprehensiveness.
How I Write Effective Knowledge Base Articles [+Templates]
My early days as a customer support agent really drove home the importance of having clear, accessible knowledge base articles that let customers solve problems on their own, and this became a consistent part of my support ethos. My journey in customer support has taken […]
ServiceMy early days as a customer support agent really drove home the importance of having clear, accessible knowledge base articles that let customers solve problems on their own, and this became a consistent part of my support ethos.
My journey in customer support has taken me through startups and larger corporate organizations where I’ve implemented knowledge bases that cut support tickets by as much as 70%, boosted customer satisfaction scores, and even improved organic search for terms like “knowledge base articles.”
Now, as a seasoned customer experience (CX) professional writing this guide for HubSpot, I’m excited to share the lessons I’ve learned about creating and using a knowledge base effectively.
Whether you’re a business owner, a support team lead, or someone passionate about CX, this guide will walk you through everything you need to know to leverage knowledge bases for customer success.
Table of Contents
From my years of working in CX, I’ve come to see these articles as the backbone for effective customer support. Depending on the audience, they can take various forms:
- Step-by-step guides
- FAQs
- Troubleshooting instructions
- Detailed feature breakdowns
I’ve used text-based articles most often, but do love incorporating screenshots, videos, and infographics to make complex topics easier to understand. This is especially important considering people have different learning styles.
What makes knowledge base articles different from other content?
What makes a knowledge base article unique, in my experience, is its focus on practicality and clarity. Unlike blog posts, which might aim to entertain or inform, these articles prioritize delivering solutions in a straightforward way.
For example, I’ve written an article about how to reset your API key that included numbered steps and a screenshot of the dashboard. Within weeks, support requests for that particular issue dropped.
Knowledge base articles also differ from other types of content because they’re highly targeted. Each one addresses a single problem or question, and they are organized for easy access and searchability, often under categories like Account Management, Billing, or Troubleshooting.
Next, I’ll explain why knowledge base articles are so valuable and how you can create them effectively.
Benefits of Knowledge Base Articles
I’ve seen how knowledge base articles deliver tangible results for both customers and businesses. They’re necessary for any organization serious about customer success.
Below, I’ve outlined six key benefits, each backed by recent data and my own experiences in Silicon Valley’s fast-paced tech environment. These advantages extend beyond support –– they affect productivity, consistency, and even aspects of marketing.
Reduces Support Ticket Volume
One of the core benefits of introducing knowledge base articles is their ability to lighten the load on support teams. When a self-service resource is able to handle the inquiry alone and does not need to escalate a ticket, we refer to this as a deflection.
For example, at Skybound, I analyze ticket data weekly and look for any repeating patterns in customer inquiries. If I notice there’s a consistently higher volume around a particular question or issue, I’ll create a knowledge base article and add it to the knowledge base.
Typically what’ll find is that tickets around that subject slowly become deflected, as customers learn to navigate your knowledge base. In fact, according to 2024 data, businesses with well-crafted knowledge base articles can see a 23% reduction in customer support ticket volume.
Improves Customer Satisfaction
When customers can solve problems on their own, they feel empowered, and that significantly boosts their satisfaction. This empowerment comes from several things.
- A sense of control. Customers can take control of their problems without waiting for support.
- Increased autonomy. Customers appreciate a sense of independence.
- Enhanced trust. When customers can solve their own issue, it builds trust with a brand because they perceive the company as proactive and customer-focused. This can lead to loyalty and positive word-of-mouth.
Historically, whenever I’ve introduced a robust knowledge base, the business has seen increased CSAT scores and a rise in NPS.
Enhances Employee Productivity
Knowledge base articles don’t just help customers — they make life easier for employees, too.
At a company I worked with in 2022, our sales team used articles like “Understanding Subscription Tiers” to answer prospect questions during live demos, saving them time as they prepared for each new opportunity. Similarly, our technical support team relied on internal knowledge base articles to document bug fixes and feature requests.
Similarly, at Skybound, my current support team was able to cut their average handle time by 40% as of Q4 of 2024, simply by using centralized troubleshooting guides.
In other words, your knowledge base ends up serving your customers and becoming a training resource for your team. Research has found that your average worker spends about 30% of their workday searching for information. So, this not only helps drive efficiency but reduces the potential for lower morale.
Standardizes Information
Consistency matters, especially as teams grow. Early in my career, I quickly noticed how there would often be a knowledge gap as customers moved down various funnels in their customer journey. By the time they reached customer support, everyone involved had conflicting information. This not only leads to confusion but also a spike in support tickets.
In contrast, when everyone delivers the same message, customers feel more confident in your brand.
Supports 24/7 Availability
In a global and digital market, customers don’t stick to your time zone. Knowledge base articles provide around-the-clock support without extra staffing costs. I love waking up to check our knowledge base queries from the previous night, typically from Asia-Pacific customers, to see that many of them deflected and did not escalate into a ticket.
There’s also a growing demand for self-service that complements this. A 2024 study found that 67% of customers prefer using some form of self-service over talking to a live agent.
In my view, a well-crafted knowledge base article is a strategic asset for streamlining support operations.
Boosts SEO and Organic Traffic
One benefit I didn’t anticipate early on was the SEO power of knowledge base articles, as 52% of keywords people search for have informational intent.
By optimizing titles and content for long-tail keywords like “How to fix integration sync errors,” you can actually end up ranking in Google search results, thus driving more traffic to your website because of people finding your knowledge base –– and ultimately driving new leads. By creating content that addresses specific user inquiries, you can improve your search engine rankings and establish yourself as an industry authority.
The benefits are convincing, as they not only enhance customer satisfaction and operational efficiency but also contribute to long-term business growth through improved SEO and reduced support costs.
For more ideas, check out this HubSpot article on knowledge base examples.
How to Create Knowledge Base Articles
Creating effective knowledge base articles is a process I’ve honed over years of trial and error. You really need to focus on solving problems efficiently.
Below, I’ve detailed a nine-step approach, complete with tools and tips from my experience. This method ensures your articles are clear, actionable, and results-oriented.
Step 1: Identify common customer queries.
You can’t solve problems you don’t understand, so I start by digging into support ticket data to find recurring issues and general common questions.
Try to pinpoint as many frequent topics as you can and then mentally bundle them into categories — topics like “How do I update my account information?” and “Why did my payment fail?” Then, create a diagram chart mapping out the categories and the associated topics.
Pro tip: Use tools like HubSpot’s Service Analytics to spot trends. You can also run keyword searches in your ticketing system for phrases like “how do I” or “error.” If available to you, don’t stop at just tickets –– survey customers or use AI tools like Gong.io to analyze call transcripts for unlogged pain points.
Step 2: Define a clear structure.
A logical structure makes articles easy to follow. I like to promote doing this early on and taking it seriously because your ability to scale knowledge management depends on it. Otherwise, you’ll have to come back and make changes that might take time to overhaul.
My go-to format includes:
- A keyword-rich titles (e.g., “Why was my order canceled?”).
- A short intro (2-3 sentences on what the article covers).
- Numbered steps or sections with clear headings.
- Visual aids like screenshots or videos.
- A brief conclusion or next steps.
Pro tip: Test your structure with a small user group. You might learn some things that need adjusting to improve comprehension. I recommend keeping sections short, aiming for around 75-100 words each. This helps avoid overwhelming the readers. Consistency is key to scalability.
Step 3: Write for your audience.
Your audience dictates your tone and depth. For developers and product managers, I use technical terms; for the average user, I stick to plain language.
A Statista study shows that 60 to 65% of website traffic comes from mobile devices, suggesting people are more likely to access knowledge base articles on mobile.
Pro tip: Use tools like Hemingway App to target a particular grade level of reading for broad accessibility. I think grade 6 through 8 reading level is good in that it does not assume a high level of literacy. Also, define any unavoidable jargon in a sidebar or tooltip –– don’t assume prior knowledge.
Step 4: Incorporate visuals.
Sometimes, words alone are not enough to describe complex tasks. How difficult would it be to put together your newly purchased IKEA furniture if it only included written instructions instead of images? Knowledge base articles are no different. I always add screenshots, annotated diagrams, or 30-60 second videos to clarify steps.
Research shows that 36% of people have struggled to process information without visuals since elementary school –– and 50% are actively looking for visual aids when reading informational content to improve their understanding. Adding screenshots, diagrams, or short videos to your knowledge base articles can make complex steps clearer and more digestible.
Pro tip: Use tools like TechSmith Capture or Loom for screenshots and videos — and remember to optimize your content for mobile and add alt text for accessibility and SEO.
Step 5: Optimize for SEO.
Search engines can lead users to your knowledge base articles, so I like to include primary keywords in titles and headings, and long-tail phrases in the body.
HubSpot’s Knowledge Base Software has AI-driven keyword suggestions, which are very powerful for boosting search rankings.
Pro tip: Research your competitors with Ahrefs or Semrush to find high-volume, low-competition terms. Write your meta descriptions between 150 to 160 characters, summarizing the article and including your keyword.
Step 6: Categorize and tag.
A well-organized knowledge base is important for both customers and employees. I group content into clear categories like “Getting Started,” “Billing,” or “Troubleshooting,” and use tags like “login error” or “refund request” to make searching easy.
Keep your categories and tags straightforward. This helps everyone find answers quickly, reducing customer frustration and agent handling time.
Pro tip: I’ve always found that a simple navigation menu with 3 to 6 core categories is a good starting point. Too many options can overwhelm users, while too few can make finding specific information harder.
Step 7: Review and update regularly.
Outdated content loses trust. It’s important to manage your knowledge base and optimize your content for accuracy, freshness, or even new media formats depending on what you’re seeing in the visitor traffic data. I personally review knowledge base data weekly and make small adjustments as needed. For larger overhauls, I’ll take notes and go back to step 2 if required.
Pro tip: Try applying the Pareto principle, also known as the 80/20 rule. It talks about how roughly 80% of outcomes come from 20% of causes. Using this in a knowledge base context, start with the top 20% of viewed knowledge base articles –– this typically addresses 80% of user issues.
Step 8: Gather feedback.
While you can see a lot in the data, sometimes it’s helpful to turn directly to your audience. Sending a quarterly survey can help gauge how much your customers value your self-service resources and identify any gaps that need to be filled.
One way to do this directly in the knowledge base article is by using those little “Was this helpful?” buttons. This will give you a general overview of which articles are working and which are not. Then, review the feedback and prioritize the most high-value opportunities while addressing the low-rated articles for updates.
Pro tip: Add a free-form comment field alongside the “Was this helpful?” buttons so you can capture specific improvement suggestions. This makes the binary feedback a bit more actionable.
Step 9: Leverage AI tools.
AI can really help speed up this entire process without completely sacrificing quality. Don’t get me wrong, it requires your effort and guidance, but by using large language models to help you create drafts and get started, you can get moving more quickly than ever before.
For example, you can feed the LLM various customer issues or how-tos and then have it start compiling a foundation that you can build upon. Support teams are finding a lot of success leveraging AI for knowledge base management.
Pro tip: Use AI to suggest related articles or keywords to enhance user navigation and SEO, but always edit AI output for accuracy and brand voice –– don’t just publish “copypasta.”
This approach consistently transforms overwhelming support backlogs into efficient self-service resources that delight customers and reduce operational cost.
Examples of Knowledge Base Articles
Let’s look at a few examples of knowledge bases that implement these principles. Knowledge bases come in many forms, but the best ones have common characteristics that make them useful.
Greenhouse Support Center
My alma mater Greenhouse Software has a support center that shows many knowledge base best practices. Notice that the homepage has multiple entry points, with a search bar, popular searches, and visual categories.
This recognizes that different users have different preferences for finding information –– some want to search directly, while others like to browse categories.
I think this homepage’s effectiveness lies in its clean and minimal design, which puts the most used information front and center. The “Most popular subjects” section has visual thumbnails with straightforward article titles, so users can find what they are looking for easily.
This follows the 80/20 rule I mentioned earlier — tackling the 20% subjects that solve 80% of user problems directly on the homepage.
Looking at a specific knowledge base article, this jobs manual from Greenhouse shows how to organize step-by-step instructions efficiently. The article breaks down what could be a complex process into manageable parts with easy navigation, highlighted notes,and visual elements that enhance the written instructions.
I really like how this article uses green info boxes to highlight important exceptions or edge cases. And the table that compares different job creation options allows users to see their choices.
These visual cues reduce the mental load on the user, making it easier for them to understand the choices and make a decision. In my experience, this kind of thoughtful formatting can reduce tickets and enhance customer experience.
When you’re building your knowledge base, these are some elements I think you should consider:
- Clear organization.
- Visual support.
- Minimalist design.
- Highlighting the most common user paths.
Remember, the best knowledge base articles are discoverable, clear, and solution-focused.
Slack Help Center
The Slack help center is a great example of a well-organized knowledge base. The site feels friendly right away thanks to a conversational header that says, “Hi. How can we help?” and gives you a number of ways to get information.
There’s a big search bar, quick links to popular topics, and categories that are easy to see. It’s great that they incorporate different learning styles.
I like that the layout is simple but still very useful, and the common questions and categories are easy to see right away. It’s clear that when designing this, Slack wanted to make it easier for people to quickly find and solve their own problems.
Diving into one of their knowledge base articles, I took a look at their piece on “Managing your organization’s connections.” First thing that I tested was whether it appeared in search engine results. We talked earlier about the importance of optimizing for SEO, and it looks like Slack took this into consideration.
As you can see, the knowledge base article appears at the top of the SERPS, even recognized by the native Google Gemini search labs AI overview. This means customers don’t even need to visit your knowledge base directly to find their answers — they’ll be led there by the search engine, thanks to your knowledge base articles focusing on primary and keyword structure.
What I like most about this knowledge base article is that it tells you what to expect right away. It also lets users know which roles can use the tool, so they don’t waste time if they don’t have the right permissions.
The process doesn’t feel too difficult as each step is short, clear, and shown visually. I also like the quick feedback buttons at the end. As I mentioned earlier, that’s a smart way to get feedback from real users to improve the material.
The way Slack does things is a great example for anyone who wants to build or improve a knowledge base. Some great takeaways to remember are:
- Use friendly language.
- Organize visuals clearly.
- Keep things simple and step-by-step.
- Include a feedback loop that keeps content changing.
Answers should be simple to find, simple to understand, and simple to improve over time.
HubSpot Knowledge Base
Okay, I know I’m writing this for HubSpot –– so of course I have to plug the HubSpot Knowledge Base. But honestly, even if I wasn’t, it would still make the list (I promise they didn’t make me say that). Here’s why.
Right from the homepage, it’s clear HubSpot wants to make things easy. Much like Slack’s, there’s a prominent search bar, quick links to popular topics, and organized categories covering everything from marketing and sales to CRM setup and beyond.
Plus, there’s a little chat widget in the bottom-right corner, which I love. I like these widgets because they’re like a safety net — they’re great to use when you’re convinced you’ve looked everywhere but still can’t find what you need.
What stands out to me most is how HubSpot balances practical guidance with education. It’s not just a bunch of questions and answers, their knowledge base is packed with actionable marketing, sales, and service strategies. It feels less like a support resource and more like a learning hub that happens to solve your problems along the way.
One article I keep coming back to is the guide on setting up automation workflows. This could easily be a complicated mess, but the article breaks it down into consumable sections that are action-oriented. It makes everything feel less overwhelming.
What I really like about this article is that it doesn’t just tell you how to build a workflow –– it explains why certain steps matter. It’s part tutorial, and part strategy guide, which makes it more useful than a basic troubleshooting page. You walk away knowing not only how to set things up, but how to make them work better for your business.
The biggest takeaways for me are:
- Clear structure.
- A balance of technical and strategic guidance.
- Scannable formatting.
- A focus on empowering the user –– not just fixing the problem.
A truly great knowledge base article helps people get smarter.
Knowledge Base Article Templates
I’ve created these two templates to help you easily build effective knowledge base articles. My goal was to make them simple to use, so you can quickly structure your information and get it out to your users.
Whether you need to explain a process or help someone fix a problem, these templates give you a foundation to get started. (You can also download HubSpot’s free knowledge base articles template, too.)
Here are two templates you can apply today.
Template 1: How-To & Educational Articles
Title: [What the user will learn to do/understand]
Intro: [One or two sentences. What’s the goal?]
Section 1: [First Step or Concept]
If it’s steps:
- Do this first.
- Then do this.
- And so on…
[Screenshots]
[What should they see after the steps?]
[Screenshots]
[Possible problem? How to fix it?]
If it’s explaining something:
- Explain it simply.
- Use short sentences.
- Use bullet points.
Section 2: [Next Steps or Concept] (Repeat the format above)
…(More sections if needed)…
Related Articles:
- [Link 1]
- [Link 2]
- [Link 3]
Still Need Help? (How to contact support)
Was This Helpful? Yes / No (Optional comment box)
The first template is your go-to for creating a step-by-step approach to explaining concepts. This second template is for troubleshooting articles, and helping users identify and fix problems on their own.
Template 2: Troubleshooting Articles
Title: [Problem the user is having]
What’s Happening? [One or two sentences describing the problem]
Possible Causes:
- [Cause 1]
- [Cause 2]
- [Cause 3] (Add more if needed)
How to Fix It:
Solution 1:
- Try this first.
- Then try this.
[Screenshots]
What Should Happen? [Short description of expected behavior]
[Screenshots]
If that didn’t work do this:
- Try this.
- Then try this.
Still Not Working? [Link to submit ticket]
Related Articles:
- Link 1
- Link 2
- Link 3
Was This Helpful? Yes / No (Optional comment box)
Your Knowledge Base, Your Success
Knowledge base articles are for building a resource that empowers your customers and frees up your team. As you work on your own knowledge base articles, don’t be afraid to experiment. Try different formats, gather feedback relentlessly, and keep iterating.
And one last tip: start small. Focus on the top 20% of questions and issues, and build from there. The most important thing is to start, keep learning, and always put your customers first.
Editor’s note: This post was originally published in February 2019 and has been updated for comprehensiveness.
50+ Small Business Ideas for Anyone Who Wants to Run Their Own Business
Choosing the right small business idea can feel overwhelming when you’re exploring different business ideas. I know because I’ve been there. My first business as a salsa dance class instructor taught me a tough lesson: passion alone isn’t enough. Without a sustainable small business model, […]
SalesChoosing the right small business idea can feel overwhelming when you’re exploring different business ideas. I know because I’ve been there. My first business as a salsa dance class instructor taught me a tough lesson: passion alone isn’t enough.
Without a sustainable small business model, I struggled to keep up with expenses and attract potential clients. Like many small business owners, I learned that having a proper business plan is crucial.
So, how do you choose the best path forward? Let me walk you through a breakdown of small business ideas grouped by category to help you find your perfect match.
Table of Contents
- What makes a good small business idea?
- Best Small Business Ideas
- Best Businesses to Start With Little Money (Service-Based Ideas)
- Home Business Ideas
- Online Business Ideas
- Easy Businesses to Start
- Business Ideas for Students
- Creative Small Business Ideas
- How to Start a Small Business at Home
- Starting a Small Business: FAQ
What makes a good small business idea?
When I tried turning my love of salsa dancing into a business, I rented a small space, promoted my classes, and poured everything into making it work.
At first, it was exciting. I had a skill people wanted to learn, and I was passionate about teaching.
But pretty soon, I ran into problems. The overhead costs ate into my profits, getting students to commit was harder than I expected, and I found myself spending more time trying to fill classes than actually teaching.
Eventually, I realized the business model wasn’t sustainable, and I pivoted to freelancing instead.
Looking back, I can see exactly why my salsa business struggled. And I’ve learned that the best small business ideas share a few key traits. If an idea checks these boxes, it has a much better shot at success.
- Uses your existing skills. Starting with what you already know cuts down the learning curve.
- Low startup costs. Less financial risk means you can test product-market fit and adjust without huge upfront expenses.
- Scalable and flexible. A good business can grow with demand and adapt to your lifestyle.
- Minimal overhead. Avoid high costs like rent, inventory, or large staffing needs.
- Online potential. A business that can operate remotely opens up more opportunities.
Best Small Business Ideas
Now that you know what to look for in a great business idea, let’s explore some options that might suit your needs. Whether you’re starting a side hustle or going all-in, the best small business ideas are affordable to launch, scalable, and aligned with your skills.
Below, I’ve rounded up some of the most practical and profitable small business ideas grouped by category to help you find the right fit.
Best Businesses to Start With Little Money (Service-Based Ideas)
Some of the most successful businesses today are built on skills, expertise, and services people already need. Service-based businesses are practical, scalable, and often require little more than time, effort, and a well-structured approach.
Even better, the way we work has changed. Remote services are more common than ever, making it possible to reach clients far beyond your local area.
Whether you’re offering professional expertise, home services, or something more specialized, there’s a way to structure your business for a steady, reliable income.
Experience Needed: Low to High (Varies by Service)
- Entry Level. Cleaning, pet sitting, basic organizing.
- Medium. Personal training, home services.
- High. Consulting, professional services, personal chef.
Key Skills:
- Customer service, time management, reliability.
Growth Path:
- Start with basic services, then specialize and build recurring clients.
Consulting and Coaching
If you have specialized knowledge in digital marketing, graphic design, or as a personal chef, consulting can be a powerful small business opportunity to turn expertise into income.
Businesses, professionals, and individuals all seek expert guidance on whether to improve operations, navigate career changes, or reach personal goals. What you focus on depends on your strengths and interests.
- Business consultant. Small business owners constantly look for ways to improve efficiency, avoid costly mistakes, and scale without chaos. If you have a background in operations, finance, or marketing, consulting in a specialized area can be highly profitable. Start by offering an introductory strategy session to pinpoint the biggest challenges your clients face.
- Career coach. With workplaces evolving fast, more professionals are looking for guidance on career shifts, salary negotiations, and job market positioning. If you have experience in hiring, HR, or personal branding, this can be a great way to help people advance while building a business of your own.
- Life coach. General life coaching is oversaturated, but there’s a real demand for specialists. Coaches who focus on specific transitions such as career changes, major life adjustments, or personal development stand out more and attract higher-value clients.
- Branding consultant. Every business needs a strong brand position strategy, but most don’t know how to create one that stands out. If you understand messaging, design, or social media strategy, you can help businesses define their identity and connect with the right audience.
- Fitness and wellness coach. The fitness industry has expanded beyond just workouts. Clients want structured programs that combine exercise, nutrition, and mindset coaching. If you have expertise in this space, you can create tailored plans that help people achieve long-term results.
How to Get Started:
Instead of jumping straight into selling services, the best way to start is by establishing credibility.
- To build testimonials and results, work with a few initial clients either at a discounted rate or in a case-study format.
- Share insights online through content, posts, or workshops to position yourself as an authority.
- Develop a clear framework or methodology that makes your service stand out.
- If your industry requires certifications, get the necessary credentials to build trust with potential clients.
As you grow, focus on structuring your services in a way that creates stability:
- Start with smaller, accessible offers to bring in new clients.
- Develop tiered pricing for different levels of engagement.
- Offer both one-time strategy sessions and ongoing support packages.
Success in consulting isn’t about selling time. It’s about selling results. The clearer your service’s value, the easier it becomes to attract clients who need exactly what you offer.
Cleaning and Home Services
With busy schedules and shifting priorities, more people are outsourcing household tasks than ever before. Cleaning and home services offer consistent demand and, in many cases, recurring revenue from regular clients.
Small Business Ideas:
- Residential cleaning. Many homeowners prefer to hire a professional rather than keep up with deep cleaning themselves. Recurring clients who book weekly or bi-weekly services create a stable income stream.
- Commercial cleaning. Offices, clinics, and commercial spaces need consistent upkeep, so they often sign long-term contracts for reliable service.
- Home organization. Professional organizing has grown in popularity, with more people seeking functional, clutter-free spaces.
- Landscaping services. Beyond lawn care, homeowners and businesses need seasonal landscaping, maintenance, and design services.
- Moving and packing. Moving is a hassle, and many people are willing to pay professionals to handle the packing, transportation, and unpacking process.
How to Get Started:
A home service business doesn’t require special degrees or expertise, but strong systems make a difference.
- Build a strong local presence. A well-optimized Google Business Profile and strong online reviews help clients find and trust you.
- Standardize services. Creating checklists and training materials ensures every job meets a high standard.
- Use scheduling tools. A reliable booking system keeps appointments organized and minimizes missed opportunities.
- Encourage long-term clients. Offering subscription-based services, seasonal promotions, and referral discounts helps create steady revenue.
Many successful home service businesses start small and grow through word-of-mouth. A reputation for quality and reliability goes a long way.
Pet Services
Pet owners are willing to spend on quality care, making pet services a business category that thrives in almost any economic climate.
Small Business Ideas:
- Dog walking and pet sitting. These are services that many pet owners need. They may work long hours or travel frequently and need reliable pet care.
- Mobile pet grooming. Grooming services that come to the client offer convenience and command higher rates.
- Pet training. Obedience training, behavioral coaching, and specialty training services have strong demand.
- Luxury pet services. Some pet owners seek premium care, from overnight stays with added perks to specialized grooming and training.
- Pet transportation. A service for taking pets to vet appointments, groomers, or daycare can be a valuable niche.
How to Get Started:
Trust is the biggest factor in pet services. To establish credibility:
- Get pet first aid certification and proper insurance.
- Create detailed service agreements to set clear expectations.
- Use booking and scheduling tools for convenience.
- Build strong relationships with veterinarians and pet businesses for referrals.
Many successful pet businesses expand by offering multiple services under one brand. A business that starts with dog walking, for example, can add grooming, training, or pet-sitting to increase customer lifetime value.
Service-based businesses are among the most accessible ways to generate income, but the key to success is not just offering a service but structuring it to attract the right clients and keep them coming back.
Start by focusing on what you do well. Build a strong foundation, create consistent systems, and refine your offerings based on real demand.
Successful businesses aren’t always the most complex or groundbreaking. They solve real problems in a way that customers appreciate and trust.
Home Business Ideas
Online Reselling and Flipping
If you have an eye for value, reselling products can be a great way to build a business without manufacturing anything yourself.
Experience Needed: Low to Medium (Varies by Market)
Entry Level:
- Online marketplace reselling.
- Thrift store flipping.
- Basic retail arbitrage
Skills: Market research, photography, pricing.
Medium Level
- Furniture flipping.
- Electronics refurbishing.
- Collectibles dealing.
Skills: Value assessment, restoration, authentication.
Growth Path:
- Start small by picking a niche, then scale your inventory.
Popular Reselling Niches:
- Thrift Flipping. Finding and restoring vintage clothing, furniture, or collectibles.
- Amazon FBA (Fulfillment by Amazon). Selling new or private-label products through Amazon’s logistics network.
- Tech and Electronics. Refurbishing and reselling used electronics.
- Sneaker Reselling. Limited-edition sneaker drops can be resold at premium prices.
- Furniture Restoration. Turning secondhand furniture into high-end pieces.
How to Get Started:
- Learn how to spot valuable products and price them correctly.
- Use platforms like eBay, Poshmark, or Facebook Marketplace to test demand.
- Start with a small inventory and reinvest profits into higher-value items.
- Develop efficient shipping and inventory management processes.
Reselling requires patience and knowledge, but those who master it can build a steady, scalable business.
Catering and Personal Chef Services
If you love working with food but don’t want the overhead of a full restaurant, a personal chef or catering business offers a way to work directly with clients without the high costs of a traditional food business.
Profitable Small Business Ideas:
- Personal chef services. Clients hire personal chefs for in-home dining experiences, specialized meal prep, or dietary-specific cooking.
- Catering business. Smaller events and gatherings need high-quality food services without the scale of a large catering company.
- Meal prep services. Many busy professionals and families want healthy, customized meals prepared for the week.
- Custom baking. Cakes, pastries, and specialty baked goods are always in demand, especially for events and celebrations.
- Specialty food products. From sauces to snacks, niche food products can become a brand of their own.
How to Get Started:
Before launching, ensure everything is set up legally and professionally:
- Obtain necessary food safety certifications and permits.
- Test your menu with small events or sample offerings.
- Invest in branding — clients often choose based on presentation as much as taste.
- Build partnerships with event planners, venues, and businesses that can refer clients.
The most successful food businesses don’t just sell meals. They sell experiences. Whether through beautiful plating, personalized service, or unique flavors, the goal is to create something memorable.
Online Business Ideas
The internet has made it easier than ever to build a business from anywhere. Unlike traditional businesses, digital and freelance businesses aren’t tied to a location, physical inventory, or high startup costs.
They allow for flexibility, scalability, and, in many cases, uncapped income potential.
The key to success? Choosing a service or digital product that solves a real problem and structuring it in a way that allows you to scale beyond just trading time for money.
Experience Needed: Low to Medium
- Entry Level. Virtual assistance, data entry.
- Medium. Content creation, digital marketing.
- High. Specialized programming, high-end consulting.
Key Skills:
- Digital literacy.
- Self-management.
- Online communication.
Growth Path:
- Start with platforms, build a portfolio then look for direct clients
Small Business Ideas:
- Writing and copywriting. Businesses need content for blogs, marketing, and sales. Copywriters who specialize in persuasive writing, such as email marketing or sales pages, can command higher rates.
- Graphic design and branding. From logo creation to full brand identity packages, companies always need professional visuals to stand out.
- Web development and programming. If you know how to build or optimize websites, this skill is always in demand. Specializing in platforms like Shopify or WordPress can make you even more valuable.
- Virtual assistance and operations support. Many business owners need help with tasks like email management, customer service, or project management.
- SEO and digital marketing. Businesses need help attracting customers online. If you understand SEO, paid advertising, or social media growth, there’s plenty of opportunity here.
How to Get Started:
Freelancing is simple to start but competitive. To stand out:
- Choose a niche instead of offering general services. It’s easier to market yourself when you’re known for something specific.
- Build a portfolio, even if that means starting by doing a few projects for free or at a discount.
- Set up a professional website or landing page where potential clients can see your work and contact you.
- Use platforms like LinkedIn, Upwork, or direct outreach to find your first clients.
- Create long-term client relationships instead of relying on one-off projects.
The highest-paid freelancers aren’t just task-doers. They position themselves as experts who solve specific problems.
Ecommerce and Digital Products
Selling digital products allows you to create something once and sell it repeatedly. Unlike physical products, there’s no inventory or shipping involved, making it one of the most scalable business models.
Experience Needed: Low to High (Varies by Model)
Entry Level:
- Digital downloads, printables.
- Basic drop shipping.
- Simple digital products
Skills: Basic design, digital marketing, customer service.
Medium Level:
- Online courses.
- Established ecommerce stores.
- Custom digital products.
Skills: Content creation, inventory management, sales funnel optimization.
High Level:
- SaaS products.
- Complex e-learning platforms.
- Multi-channel ecommerce
Skills: Technical development, advanced marketing, systems management.
Growth Path:
Test simple products, build systems then scale with automation
Digital Products That Sell Well:
- Templates and tools. Digital planners, business templates, and design elements save people time, making them valuable.
- Printables and downloads. From worksheets to artistic prints, downloadable products can be sold with little overhead.
- Software and apps. If you have programming skills, creating a niche software product can generate recurring revenue.
How to Get Started:
- Validate your idea before creating a full product. Survey potential buyers or start with a smaller version first.
- Focus on solving a real problem rather than just making something for the sake of it.
- Build an email list so you have a direct way to market your product.
- Optimize your sales page. Make it clear what problem your product solves and why it’s valuable.
The best digital product businesses evolve over time. Start with one strong offer, refine it based on feedback, and then expand into related products.
Online Education and Coaching
The demand for online learning has skyrocketed, but the biggest opportunities aren’t in mass-market courses. They’re in highly specialized programs that deliver clear results.
Profitable Business Ideas:
- Online courses. Teaching a step-by-step process in a structured way can attract buyers willing to pay for expertise.
- Group coaching programs. Combining education with live interaction provides both value and scalability.
- Membership sites. Offering exclusive content or community access on a recurring basis creates predictable income.
- High-ticket consulting and VIP days. Providing deep, customized guidance can be highly profitable.
How to Get Started:
- Identify a specific transformation you can help people achieve rather than just teaching information.
- Start by working with clients 1:1 to refine your process before turning it into a course or group program.
- Use WordPress or Teachable to structure your content for engagement through interactive elements, live calls, and accountability to help students stay committed.
- Price based on the outcome you provide, not just the length of the course or program.
The best online education businesses don’t just sell information. They sell results.
Digital businesses offer the flexibility to work from anywhere, but success isn’t just about having a great idea. It’s about execution.
If you’re considering freelancing, focus on building credibility and finding your first clients. If you want to create digital products or content, start by identifying a real need and providing value. And if you’re drawn to online education, think about the transformation you can help people achieve.
No matter which model you choose, the key is consistency. A great idea won’t succeed without action, but small, strategic steps can turn a side project into a full-time business.
Easy Businesses to Start
Ecommerce and Physical Product Businesses
Selling physical products offers a different kind of opportunity compared to service-based businesses. Instead of trading time for money, you’re building something that can scale, often without direct client interaction.
The key is to choose the right model based on your risk tolerance. Some businesses require upfront investment in inventory, while others (like dropshipping or print-on-demand) let you start with little stock.
Experience Needed: Low to Medium
- Entry Level. Dropshipping, print-on-demand.
- Medium. Handmade products, custom goods.
- High. Private-label manufacturing.
Key Skills:
- Basic business operations.
- Inventory management.
- Marketing.
Growth Path:
- Assess demand for your products, optimize operations, then scale successful lines.
Dropshipping and Print-on-Demand
Dropshipping and print-on-demand (POD) allow you to sell products without managing inventory or handling shipping. Instead, you work with suppliers who fulfill orders as they come in while you focus on branding and marketing.
Dropshipping and POD Business Ideas:
- Niche dropshipping stores. Selling curated, high-demand products in a specific category (e.g., ergonomic home office gear, eco-friendly kitchenware).
- Print-on-demand apparel and merchandise. Custom t-shirts, mugs, posters, and accessories featuring unique designs.
- Branded merchandise. Partnering with influencers or brands to create exclusive collections.
How to Get Started:
- Research profitable niches instead of selling random trending products.
- Choose suppliers carefully. Quality and shipping times affect customer satisfaction.
- Create a responsive ecommerce website, differentiate with branding, customer experience, and strong product descriptions.
- Invest in marketing. Dropshipping success depends on how well you attract and convert customers.
Low upfront costs make this a great starting point, but it requires strong marketing skills to stand out.
Subscription Box Businesses
Subscription boxes offer curated products on a recurring basis, creating predictable revenue. The best subscription businesses focus on niche audiences who are willing to pay for a curated experience.
Experience Needed: Low to Medium (Varies by Niche)
Entry Level:
- Curated existing products.
- Niche-specific boxes.
- Local product collections
Skills: Product sourcing, packaging, fulfillment.
Medium Level:
- Custom/branded products.
- Multi-tier subscriptions.
- International shipping.
Skills: Vendor relationships, logistics, retention.
Growth Path:
- Test your idea for viability, optimize fulfillment, and then scale subscribers.
Subscription Box Ideas:
- Beauty and skincare. Focused on clean beauty, K-beauty, or men’s grooming.
- Snack subscription. International snacks, health-conscious treats, or specialty diets.
- Book and stationery boxes. Pair books with themed items for a full experience.
- Pet subscription. Toys, treats, and pet care essentials.
- Hobby and DIY kits. Crafting, gardening, or painting supplies with instructions.
How to Get Started:
- Choose a niche that encourages repeat purchases.
- Create an unboxing experience that makes customers look forward to each delivery.
- Plan logistics carefully. Subscription businesses need strong fulfillment systems.
- Offer customization to increase retention (e.g., personalized book genres, dietary preferences).
Subscription models work best when they provide ongoing value beyond just the products inside. Ecommerce and product businesses take more upfront work to set up than freelancing or services, but they also offer greater potential for automation and scalability.
The key is choosing a model that fits your strengths whether that’s crafting, curating, or marketing.
If you want flexibility without inventory, digital products and print-on-demand are great options. If you prefer building something tangible, handmade goods or subscription boxes might be a better fit.
Whatever path you take, focus on strong branding and customer experience. These are what separate successful product businesses from the rest.
Hybrid and Brick-and-Mortar Business Ideas
While digital businesses dominate the conversation, there’s still huge value in businesses with a physical presence, especially when they combine the best of online and offline worlds.
Hybrid businesses use digital tools to enhance in-person experiences, creating stronger customer relationships and more predictable revenue.
Experience Needed: Medium to High
- Entry Level. Small retail operation
- Medium. Service-based storefront
- High. Full-service establishments
Key Skills:
- Business operations.
- Staff management.
- Local marketing.
Growth Path:
- Start small, build a local presence, then expand locations or adopt a hybrid model.
Local Service Businesses With an Online Component
Many traditional service businesses are now blending in-person and digital elements to attract more customers and operate more efficiently.
Examples of Hybrid Service Businesses:
- Event planning and wedding coordination. Offering virtual consultations, 3D venue previews, and digital mood boards to simplify planning.
- Photography and videography. Combining in-person shoots with digital add-ons like online galleries and video editing services.
- Home staging and interior design. Helping homeowners and real estate agents enhance spaces, whether through virtual consultations or full-service interior design and staging.
- Personal training and fitness coaching. Offering both in-person sessions and digital programs for ongoing guidance.
- Tattoo and beauty studios. Using online booking, virtual consultations, and social media marketing to attract clients.
How to Make a Local Business More Scalable:
- Build a strong online presence. Many customers search for services before ever making contact.
- Automate scheduling, payments, and client management to save time.
- Offer digital add-ons (courses, virtual consultations, or exclusive memberships) to create additional income streams.
- Use content marketing to stay engaged with your audience and sales email templates to convert potential clients.
Hybrid service businesses offer the personal touch of local business with the efficiency and reach of digital tools.
Storefront-Based Retail and Food Businesses
Physical retail is evolving, but businesses that offer unique experiences continue to thrive.
The key is to create a reason for customers to visit beyond just the products themselves.
Examples of Profitable Storefront Businesses:
- Coffee shops and cafés. Spaces that double as community hubs with events and experiences.
- Boutique or specialty retail. Highly curated stores that focus on niche markets.
- Bookstores and creative spaces. Retail blended with experiences like workshops and author events.
- Juice bars and health food stores. Combining grab-and-go convenience with wellness education.
- Bed and breakfasts and boutique hotels. Creating unique, shareable experiences beyond just a place to stay.
Keys to Success in Modern Retail:
- Focus on experience. Why would someone visit your store instead of ordering online?
- Create multiple revenue streams (events, memberships, online orders).
- Optimize for convenience such as easy online ordering, delivery, or subscription options.
Retail businesses succeed when they offer something customers can’t get elsewhere.
Franchise and Licensing Businesses
For those who want a structured business model with built-in support, franchising offers a lower-risk option than starting from scratch.
Experience Needed: Medium to High
- Entry Level. Small franchise operations (cleaning, pet services)
- Medium. Retail and food service franchises
- High. Multi-unit franchises, complex service operations
Key Skills:
- Operations management.
- Team leadership.
- Following systems.
Growth Path:
- Start with a single unit, then expand to several units.
Types of Franchises That Work Well:
- Fast food and cafés. Established brands with loyal customer bases.
- Fitness and wellness studios. Boutique fitness brands that offer strong community engagement.
- Home and cleaning services. Recurring revenue businesses that benefit from brand trust.
- Education and tutoring centers. Blending in-person and online learning.
How to Choose a Franchise:
- Research profitability and long-term viability.
- Understand the financial requirements and ongoing fees.
- Look for franchises with strong training and support.
Franchises aren’t for everyone, but for those who want a proven system, they can be a great way to start a business with fewer unknowns. Hybrid and brick-and-mortar businesses are all about combining physical presence with digital efficiency.
The most successful ones don’t just sell products or services. They create experiences customers want to return to.
Business Ideas for Students
Digital Content Creation
Creating digital content has grown from a passion project into a full-time business model for many. Unlike freelancing, content creation doesn’t involve working directly with clients.
Instead, the goal is to build an audience and monetize through multiple streams.
Ways to Monetize Content:
- Blogging. Build a blog that generates income through ads, affiliate marketing, sponsored content, or co-marketing. It takes time to grow, but once established, it can be a great long-term asset.
- YouTube and video content. Video creators can monetize through ad revenue, sponsorships, and their own products or services.
- Podcasting. While podcasts don’t generate revenue immediately, they can attract sponsorships and lead to premium memberships or consulting opportunities.
- Social media and newsletters. A strong following on platforms like Instagram, TikTok, or an email newsletter can lead to sponsorship deals, brand collaborations, and product sales.
How to Get Started:
- Define your niche to narrow down on your expertise. Trying to write about everything will water down your portfolio, but honing in on what you do best makes you stand out to potential clients.
- Learn SEO and keyword research fundamentals.
- Create a clean, professional portfolio using tools like Canva.
- Build credibility by publishing sample pieces on Medium, LinkedIn, or guest posting.
- Add case studies and client testimonials as you grow.
- Focus on one platform and master it before expanding.
- Provide content that educates, entertains, or solves problems tends to grow the fastest.
- Monetize strategically by layering different income streams instead of relying on one.
- Be consistent. Gaining an audience takes time, but the more you show up, the more trust you build.
Successful content creators don’t just post for engagement. They create a system that turns views into income.
Creative Small Business Ideas
Handmade and Custom Products
If you enjoy creating things, selling handmade or custom products offers a way to turn craftsmanship into income.
Unlike mass-market goods, handmade products often command higher prices because of their uniqueness and personal touch.
Experience Needed: Low to High (Varies by Product)
- Entry Level. Print-on-demand, basic crafts
- Medium. Custom apparel, jewelry making
- High. Fine woodworking, custom furniture
Key Skills:
- Craftsmanship
- Design skills
- Production management
Growth Path:
- Start with small items, build your reputation then make custom orders
Small Business Ideas:
- Jewelry and accessories. Unique, high-quality pieces stand out in a crowded market.
- Custom apparel and embroidery. Small-batch clothing, custom hats, or embroidered designs.
- Handmade beauty and skincare. Natural soaps, lotions, and candles have strong demand.
- Woodworking and home decor. Furniture, wall art, and personalized home goods.
- Art prints and digital downloads. Selling artwork in both physical and digital forms.
How to Get Started:
- Define a unique style or signature design that sets you apart.
- Focus on high-margin products. Pricing too low makes growth difficult.
- Use strong photography and branding on product pages to enhance perceived value.
- Leverage platforms like Etsy, Shopify, and Instagram for marketing.
Handmade businesses thrive on craftsmanship and storytelling. People buy not just the product but the meaning behind it.
How to Start a Small Business at Home
1. Identify your small business idea.
Choosing the right business idea is more than just picking something you like. It’s about ensuring there’s a market for it.
Many businesses fail not because the idea is bad but because it doesn’t align with what people actually need and are willing to pay for.
To evaluate your small business idea, consider:
- Market demand. Are potential clients actively looking for solutions in this space? Every successful business idea needs clear market validation. A quick search on platforms like Google Trends or industry forums can provide insights into long-term viability. Here’s an example of interest over the past five years for “pet care.”
- Customer behavior. Are potential buyers making repeat purchases, or is this a one-time transaction? Businesses that generate recurring revenue tend to be more sustainable.
- Industry growth. Is this a growing market, or is demand declining? Emerging trends in technology, consumer behavior, and economic shifts can signal where opportunities exist.
For example, if you’re considering starting a daycare but have never stepped into a successful one, spend time researching. Visit established centers, talk to experienced owners, and assess whether this aligns with your expertise and interests.
Understanding the industry firsthand will help you validate whether it’s a practical and profitable venture.
HubSpot’s Business Startup Kit simplifies the early stages by helping you map out key elements like your business plan, goals, and target market. It provides structured templates and guidance so you can move from idea to action without getting stuck in the planning phase.
2. Start as a side business or hobby.
Instead of immediately quitting your job, consider starting your business as a side project. This allows you to experiment, refine your approach, and test the market without putting financial strain on yourself.
Many successful businesses, from handmade product shops to consulting services, began as small weekend or evening projects.
Before making a full commitment, ask yourself:
- Can I find paying customers without aggressive marketing?
- Does this business model allow for sustainable long-term growth?
- Have I tested my pricing and seen real demand?
Starting small allows you to test different angles, adjust your strategy based on real customer feedback, and determine whether your idea has long-term potential. If demand grows and revenue becomes consistent, you have the green light to scale.
3. Validate your business idea before investing.
One of the biggest mistakes new entrepreneurs make is spending time and money on a business before confirming that people are willing to pay for it. Instead of assuming demand, look for proof.
Here are a few ways to validate your idea:
- Pre-selling. Offer a beta version of your service or take pre-orders before fully launching. If customers are willing to pay upfront, that’s a strong sign of demand.
- Market research. Go beyond friends and family and talk to potential customers, join industry groups, and use market research tools to analyze what competitors are already selling.
- Landing pages and ads. Create a simple landing page describing your offer and run a small ad campaign. If people sign up or express interest, you have early validation.
This approach ensures that when you fully invest, you’re doing so with confidence in your market.
4. Decide on your software.
The right software isn’t just about convenience. It can make or break your ability to scale. Many businesses struggle because they don’t have the right tools in place early on.
Some essential categories to consider:
- Customer relationship management (CRM). Organizes leads, customers, and interactions in one place. A CRM like HubSpot helps track sales and automate communication.
- Financial tracking. Software like QuickBooks or Wave makes it easier to manage cash flow, expenses, and taxes.
- Automation and marketing tools. Email marketing, scheduling, workflow automation, and AI tools save time and keep operations efficient.
While it can be tempting to manage things manually at first, investing in the right systems early can prevent future problems.
5. Create a business plan.
A well-structured business plan serves as a roadmap for your business. Without one, it’s easy to lose focus, mismanage finances, or struggle to position yourself in the market.
A strong business plan includes:
- Executive summary. A high-level overview of your company and its market placement.
- Business model. Who you serve, what you offer, and how your business is structured.
- Market analysis. A competitor assessment and industry outlook.
- Products and services. What makes your offerings unique, and how they meet customer needs?
- Operations and management. Key roles, responsibilities, and organizational structure.
- Marketing and sales strategy. Your approach to attracting and retaining customers.
- Financial plan. Start-up costs, revenue projections, and funding strategies.
Even if you don’t seek external funding, having a structured plan keeps you on track and makes decision-making easier as you grow.
6. Choose the right business structure.
The legal structure you choose affects everything from taxes to liability protection. Here’s a breakdown of common options:
- Limited liability company (LLC). Provides personal asset protection and tax flexibility, making it a popular choice for small businesses.
- Sole proprietorship: This is the simplest structure and requires little paperwork, but it doesn’t offer liability protection.
- Partnership. Suitable for businesses with multiple owners, where profits and liabilities are shared.
- Corporation (S Corp, B Corp). Offers legal separation between business and owner but involves more regulations.
Your decision should be based on liability protection, tax implications, and long-term business goals. The Small Business Administration offers resources to help you determine the best fit. Pick one structure then go ahead and register your business.
7. Open a business bank account.
Keeping business and personal finances separate is crucial for tax purposes, expense tracking, and financial clarity. A dedicated business bank account also adds professionalism when handling client transactions.
Consider these factors when choosing a bank:
- Low or no monthly fees.
- Online banking capabilities.
- Access to business credit options.
A business checking account allows unlimited transactions, while a business savings account helps manage reserves and emergency funds. Many banks also offer integrations with accounting software to streamline record-keeping.
8. Assess whether your business works well from home.
Not all businesses are suited for a home-based setup. If your idea requires specialized equipment, in-person client interaction, or a retail storefront, you may need a different approach.
For example, if you want to start a dog boarding business but live in a small apartment, a dog-walking or pet-sitting service may be a more practical alternative. On the other hand, businesses like content writing, digital marketing, or consulting can operate seamlessly from a home office.
Consider whether your business can:
- Be run effectively with a laptop and internet connection.
- Avoid zoning restrictions or home-office limitations.
- Provide a professional customer experience without a physical location.
9. Set up a dedicated workspace.
Even if you’re working from home, having a structured workspace is critical for productivity. A dedicated office area reduces distractions, creates a professional environment, and helps with work-life balance.
If a full home office isn’t possible, set up a designated area in a quiet corner of your home. If you need a more professional setting for client meetings, explore coworking spaces like WeWork or PeerSpace, which offer conference rooms and networking opportunities.
10. Take action.
Many entrepreneurs get stuck in the planning stage, tweaking their logo or perfecting their website while avoiding the real work of selling and testing.
Instead of waiting for everything to be perfect, start small:
- Reach out to potential customers.
- Make your first sale, even if it’s just to a handful of people.
- Gather feedback and improve as you go.
The sooner you start, the sooner you’ll know whether your business has real potential.
Starting a Small Business: FAQ
How do I implement a business idea?
Start by listing your skills and passions. What do you love doing? Next, assess market demand using tools like Google Trends and industry reports.
Finally, assess feasibility: Do you have the budget, time, and resources to make this idea a reality? Balancing passion with practicality ensures a business that’s both enjoyable and profitable.
How do I fund a small business?
Here are a few funding options:
- Bootstrapping. Use personal savings to retain full control.
- Small business grants. Free money from government or private sources.
- Angel investors and venture capital. In exchange for equity or a return.
- Bank loans and SBA loans. Traditional financing options with repayment terms.
- Crowdfunding. Use platforms like Kickstarter and Indiegogo.
How can I protect the copyright of my creations?
Copyright protection is automatic for original works, but you can take extra steps:
- Include copyright notices. Label your work with “Copyright © [Year] [Your Business Name].”
- Register your work. Formal registration can strengthen legal claims.
- Consider licensing. Let others use your work under specific terms.
The Smart Way to Start a Business
Just as my journey from struggling salsa instructor to freelancer taught me, starting a small business isn’t just about following your passion — you need to create something sustainable that meets real market needs.
But I have to admit, I was shocked by what I discovered while researching this guide.
Traditional brick-and-mortar businesses are reinventing themselves. Who would have thought tattoo studios would offer virtual consultations or that local art studios would thrive on subscription models?
It challenged everything I thought I knew about “traditional” business.
What really hit home was seeing that successful businesses often start much smaller than I imagined. Just like my own path from a dance instructor to freelancing, sometimes scaling down is actually scaling up.
Success comes from careful planning and strategic execution rather than passion alone. The key is to start small, test your assumptions, and be willing to adapt based on what you learn.
Managing Partner: Who They Are and What They Do
Being a managing partner isn’t just about having a leadership title — it means balancing ownership, strategy, and daily operations in a way that directly shapes the success of a business. And in partnerships and LLCs, where leadership structures differ from traditional corporate models, this […]
SalesBeing a managing partner isn’t just about having a leadership title — it means balancing ownership, strategy, and daily operations in a way that directly shapes the success of a business. And in partnerships and LLCs, where leadership structures differ from traditional corporate models, this role is even more critical.
While writing this blog post, I spoke with plenty of managing partners who never planned on becoming one — it just happened. Some started as lawyers, others as marketers or financial experts, but at some point, they found themselves making high-level decisions, driving business growth, and taking on more responsibility than ever before.
That unexpected shift into leadership is common, and many managing partners learn the role on the job. So, what does it actually take to succeed in this position? This guide breaks down their key responsibilities, career paths, and what it takes to lead successfully.
Table of Contents
- What is a managing partner in an LLC?
- Managing Partner vs. CEO
- Why is a managing partner important for a business?
- Managing Partner Role and Responsibilities
- How to Become a Managing Partner
- Managing Partner Agreement
- Managing Partner Compensation
- What It Really Means to Be a Managing Partner
What is a managing partner in an LLC?
A Limited Liability Company (LLC) is a business structure that separates personal assets from business liabilities. In other words, if an LLC is being sued or goes bankrupt, the owner’s personal assets are not at risk.
This makes it different from other business structures like a sole proprietorship — a business structure with one owner who is not legally distinct from his or her business (most freelancers fall into this category). It’s also different from a corporation (e.g., Microsoft, Dominos), which has a different management structure and taxation scheme.
Within an LLC, owners are called members, and management can be structured in two ways:
- Member-managed LLCs where the owners (members) actively run the business.
- Manager-managed LLCs where members appoint a manager (who may or may not be a member) to handle operations.
In some cases, a managing partner (or managing member) is a member who also takes on leadership responsibilities, overseeing operations and guiding strategy. Unlike corporations, which have CEOs and boards of directors, LLCs often rely on managing members or partners to balance ownership, leadership, and daily business operations.
Mark Donnolo, managing partner at business consultancy SalesGlobe, describes the role as a mix of leadership and hands-on strategy. “I think of a managing partner as a first among equals,” he says. “It’s the person that’s leading the charge strategically.”
While many LLCs have a single managing partner, others share leadership responsibilities. For example, Beth Sherman and Nathan Palmer, co-founders of digital marketing firm Signify Digital, both act as managing partners, splitting management duties equally.
Managing Partners in Partnerships
A partnership, like an LLC, is a business structure where ownership is shared among partners. While all partners have a stake in the company, a managing partner typically takes on leadership duties, such as:
- Overseeing daily operations.
- Managing finances and strategy.
- Representing the business in key decisions.
Some partners may be actively involved in operations, while others act as silent partners, providing capital but taking a less hands-on role.
Managing Partner vs. CEO
I used to think managing partners and CEOs were basically the same thing — they both lead companies, right? But after diving into this, I’ve discovered some key differences that really matter.
The BasicsManaging partners are actually owners of their business (usually LLCs or partnerships), while CEOs are appointed by boards of directors to oversee a corporation’s strategic direction. This changes everything about how they operate.
Power and Decision-MakingManaging partners have real skin in the game. They own part of the business and make decisions alongside other partners. They usually report to an executive committee but have a lot of freedom in day-to-day decisions. CEOs, on the other hand, might get some stock options, but they’re ultimately answering to the board about every major move they make.
Money and Job SecurityThe pay structure really shows the difference. Managing partners live and die by the company’s profits — their income is directly tied to how well the business does. CEOs typically get a salary plus performance incentives like bonuses and stock options, all decided by the board.
What’s really interesting is what happens if things go south. A CEO can get fired by the board if they’re not meeting performance goals, plain and simple. But removing a managing partner? That’s way more complicated because they’re an owner. You’re usually looking at complex buyouts or restructuring the whole partnership agreement.
A 2024 report from the National Association for the Self-Employed (NASE) found that 58% of LLCs in the U.S. operate as member-managed, meaning the owners — often including managing partners — are actively involved in daily operations. In contrast, corporate CEOs are typically hired rather than being owners themselves.
In some cases, a person may hold both titles — legally designated as a managing partner but operating as a CEO in daily business functions. Whether “managing partner” is purely a legal designation or an active leadership role depends on the company structure.
The right leadership structure depends on the company’s needs. LLCs and partnerships thrive on direct ownership involvement, while corporations often prefer a separation between ownership and executive leadership. Managing partners have more job security but take on more financial risk, while CEOs have defined salaries but can be replaced at any time.
Managing Partner vs. Owner
In my conversations with managing partners, I’ve learned that ownership alone doesn’t define leadership — it’s the level of responsibility that sets managing partners apart.
- Managing partners don’t just own part of the business — they run it. They oversee operations, hiring, strategic growth, and decision-making.
- Other owners may be passive investors who contribute capital but don’t participate in daily management.
- Some businesses have multiple owners in executive roles, but only a few take on the title of managing partner, leading the company’s direction.
This leadership structure can be a game-changer for scaling a business. Daniel Snow, managing partner at TRAFFIX, a logistics company that scaled from $71 million to over $1 billion, credits their three-managing-partner model as a critical factor in their success.
“One of the key factors behind TRAFFIX’s remarkable growth… was the strategic leadership structure of having three managing partners, each with unique and complementary skill sets. This approach created a well-rounded leadership team that filled in skill gaps, ensured diverse perspectives, and eliminated decision-making deadlocks.”
He also emphasized that great managing partners know their weaknesses and rely on others to fill the gaps. Instead of trying to do everything themselves, they focus on building a strong leadership team and investing in people.
According to the IRS’s Statistics of Income Bulletin Fall of 2024, with partnerships filing 4.5 million returns and representing over 28 million partners in the 2022 tax year, it’s clear that defining leadership roles within these structures is crucial for sustainable growth.
For many businesses, the difference between an owner and a managing partner isn’t just about title — it’s about who steps up to lead.
Managing Partner vs. Limited Partner
Before speaking with managing partners, I assumed all business partners had similar levels of involvement. However, I quickly learned that limited partnerships are structured to separate management control from financial investment.
Limited partnerships have two types of partners:
- General partners. Actively manage the business and assume liability for debts.
- Limited partners. Provide capital but don’t participate in daily operations and aren’t liable for business debts beyond their investment.
A managing partner is typically a general partner who takes on leadership responsibilities, such as setting strategy, overseeing daily operations, and making key financial decisions.
According to the IRS, limited partnerships represent only 9.9% of all partnerships, yet they account for over 36% of total pass-through income — showing how financially impactful they can be despite being a smaller portion of business structures.
For example, venture capital (VC) firms often follow this model. The general partners (GPs) manage the fund and make investment decisions, while limited partners (LPs) — such as pension funds or wealthy individuals — provide capital but have no direct control over day-to-day operations.
Want to understand how a general partner differs from a managing partner? Check out the next section for a full breakdown.
General Partner vs. Managing Partner
While the terms general partner and managing partner are sometimes used interchangeably, they have distinct roles depending on the business structure.
A General Partner:
- Is found in limited partnerships (LPs).
- Takes on full liability for the business’s debts and legal obligations.
- Actively manages the business but may not be the sole decision-maker.
A managing partner:
- Is common in LLCs and partnerships.
- Is always an owner in the business.
- Has strategic and operational leadership responsibilities.
- May also be a general partner in a limited partnership.
Key Distinction: A general partner is responsible for managing a partnership, but in some cases, partnerships designate a managing partner to lead strategic direction and decision-making. In LLCs, managing partners function similarly but often operate within a more flexible structure.
Why This Matters: If you’re structuring a business partnership, understanding the difference between a general partner and a managing partner can help you determine the right leadership setup for your company.
Why is a managing partner important for a business?
One theme that stood out in my conversations with managing partners is that this role goes beyond a title — it requires making high-stakes decisions that directly impact the business. Managing partners drive strategy, make tough decisions, and ensure the business runs smoothly while balancing long-term growth.
From my perspective, a strong managing partner creates stability, fosters innovation, and sets a company apart from competitors.
1. Steering the Ship
From what I’ve seen, managing partners are right in the thick of every major decision, making sure everyone is pulling in the same direction. Whether they’re figuring out how to grow the business, handling risky situations, or adapting to industry changes, they keep things moving forward.
Take Jennifer Compton’s story at Shumaker. As the first managing partner of a law firm that’s been around since 1925, she puts it perfectly:
“When I started my career, I never set out with firm management as my specific goal. I just wanted to be a great lawyer. But each step — associate to partner, and eventually to leadership — was built on trust, accountability, and the desire to contribute to the firm’s long-term success.”
What hits me about Compton’s journey is what it reveals about great managing partners — they’re not just running the business today. They’re building something that lasts, creating opportunities and developing future leaders along the way.
2. Improved Decision-Making and Growth Potential
With their deep understanding of the business, managing partners ensure that decisions aren’t just reactive but aligned with long-term success. Their ability to navigate complex challenges is especially crucial for businesses aiming to scale.
First Round Capital’s research supports this, revealing that teams with more than one founder outperformed solo founders by 163%, and solo founders’ seed valuations were 25% lower than teams with multiple founders. These findings highlight how shared decision-making — like having a managing partner alongside other leaders — contributes to stronger business performance and financial outcomes.
I’ve seen firsthand how managing partners dive deep into the money side of things. They’re not just glancing at spreadsheets. They’re making tough calls about where every dollar goes and how to keep the business profitable. From haggling over contract terms to figuring out how to boost revenue, they’re the ones making sure the numbers add up.
In my conversations with managing partners, they consistently emphasized one thing: If you want your company to grow and stay profitable, you need someone at the top who really understands the financial side of the business. I’ve watched companies struggle when they don’t have this kind of financial leadership, and thrive when they do.
3. Talent Development and Employee Retention
A managing partner’s leadership extends beyond financial and strategic decisions — they also shape company culture. Prioritizing employee growth and fostering a collaborative environment leads to better retention, productivity, and overall job satisfaction.
I think Richard Branson, CEO and founder of Virgin Group, put it best: “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Strong leadership at the top creates a ripple effect throughout the organization, leading to a more engaged and high-performing team.
4. Adaptability in a Changing Business Landscape
Industries evolve, so managing partners must stay ahead of trends and embrace change. Those who are willing to pivot, innovate, and adapt tend to be the most successful in leadership roles.
McKinsey’s 2024 report on business agility found that companies with adaptable leadership structures are 1.5 times more likely to outperform competitors in rapidly changing markets. This aligns with what I’ve heard from managing partners who emphasize long-term strategy over chasing short-term trends.
Rafikuzzaman Khan, managing partner at Microters Germany, shared how he approaches this challenge:
“Since I have to make crucial decisions, I’m now focusing on creating long-term strategies where we can integrate these changes in a sustainable way.”
Khan’s insight reinforces an important lesson — managing partners who stay ahead of industry shifts and technology trends position their businesses for long-term success.
Managing Partner Role and Responsibilities
A managing partner isn’t just another executive; they’re an owner who’s got their own money and reputation on the line. Unlike a CEO who might just be hired to run things, they’re personally invested in making the business work.
Here’s what they actually do:
- Strategy & Vision. These folks handle the big-picture stuff while getting their hands dirty with day-to-day operations. When the market shifts or new opportunities come up, they’re the ones making the calls on where the company needs to go, because their own success depends on it.
- Problem Solving. They’re problem solvers, plain and simple. If something’s not working — maybe the operations are a mess, money’s tight, or growth has stalled — they’re in the thick of it. They can’t just pass it off to someone else because, ultimately, it’s their business at stake.
- Financial Oversight. Money matters fall squarely in their lap. They’re watching the budget, deciding where to invest, and making sure the company’s actually making money. It’s their own wallet on the line, so they tend to think twice about every major financial decision.
- Team Building. Good people make or break a business, and managing partners know it. They’re constantly thinking about who to bring on board, how to keep their best people around, and what kind of workplace they’re building. The culture starts with them.
- Relationship Management. When it comes to dealing with important clients or keeping everyone in the loop, that’s their job, too. They’re the ones schmoozing with clients, updating investors, and making sure their team knows what’s what.
How Managing Partners Divide Responsibilities
Managing partners don’t always oversee every function directly — they often delegate responsibilities based on their strengths, background, and business needs.
For example, Mark Donnolo, managing partner at SalesGlobe, takes a hands-on approach to business development, intellectual property creation, and content marketing. His focus stems from his background and expertise in these areas. Other managing partners may emphasize different priorities.
At Signify Digital, a U.K.-based marketing agency structured as a limited company (similar to an LLC in the U.S.), Beth Sherman and Nathan Palmer split responsibilities based on their strengths.
“Having two partners suits our business well,” says Sherman. “While we have the same passion and vision, we each bring a different skill set to the company.”
Sherman leads client management and business development, while Palmer focuses on work delivery and campaign strategy.
Using Tools to Manage Growth
Since managing partners are responsible for business growth and client relationships, having the right tools can make all the difference. Platforms like HubSpot’s Sales Hub help managing partners:
- Streamline sales operations.
- Track business performance.
- Nurture client relationships.
By leveraging automation and analytics, managing partners can spend less time on manual tasks and more time driving strategy.
I’ve learned that this flexibility is a key benefit of the managing partner structure. Partners can tailor their roles based on what best serves the company. Some managing partners take an active leadership role, while others act more as investors or strategic advisors. The key is ensuring that all core responsibilities are covered, whether through delegation or direct oversight.
[alt text] managing partners, HubSpot Sales screenshot showing Prospecting dashboard
Get started with Sales Hub today.
How to Become a Managing Partner
Through my conversations with managing partners, I’ve learned there’s no single path to this role. Some rise through the ranks in their firms, others transition from entrepreneurship, and some find leadership after unexpected career shifts. I think what stands out in each journey is a mix of expertise, adaptability, and a willingness to take on responsibility.
Here’s how four managing partners built their careers — and what aspiring leaders can learn from them.
1. Moving From Specialist to Leader
For many managing partners, the first step is mastering their field before stepping into leadership. Jennifer Compton, the first managing partner of Shumaker law firm, spent years specializing in employment law counseling and litigation before taking on firm-wide leadership.
She initially served as vice chair of Shumaker’s management committee and managed the firm’s Sarasota office before becoming the first person to hold the managing partner title.
Her journey highlights an important truth: Leadership opportunities often emerge for those who build deep expertise and earn the trust of their peers.
2. Scaling a Business as a Managing Partner
For some, the path to becoming a managing partner happens through growing a company strategically. Daniel Snow, managing partner at TRAFFIX, helped dramatically scale the business, but his journey began long before that.
Growing up in a family-owned logistics company, Snow was immersed in the business from an early age. After completing university, he launched his own company and later merged it back into TRAFFIX. This blend of entrepreneurship and operational experience positioned him for leadership.
“I learned early on to ask myself two key questions: ‘What can I do better?’ and ‘What can the company do better?’” Snow explained. “By acknowledging my limitations and investing in the growth of others, I helped foster an environment where the business could expand well beyond the initial vision of its founders.”
Looking at his story, I’ve realized that scaling isn’t just about watching revenue grow — you’ve got to have the right leaders steering the ship.
3. Reinventing Leadership After Setbacks
Not every managing partner starts with a clear path to leadership. Yusef-Andre Wiley, managing partner at Timelist Group, turned his life around after a period of incarceration, proving that leadership can emerge from unexpected places.
“Once I began taking courses related to self-help and business management, my lifestyle began to change,” Wiley said. “Empathy became my landing place, which enabled me to deal with people where they are at — not to harm, not to judge, and to believe in second chances.”
His work in re-entry housing and rehabilitation programs for former felons led to partnerships with funders, elected officials, and nonprofit leaders — eventually growing Timelist Group into a recognized organization.
When I look at Wiley’s path, I’m reminded that technical skills only get you so far. What really matters is having a vision you believe in, pushing through the tough times, and using your past experiences to make a real difference.
4. Leaving Corporate to Build Something New
Some managing partners step into the role after realizing they want to lead differently. Yvette Schmitter, managing partner at Fusion Collective, spent years in corporate tech leadership, working her way up at a Big Four consulting firm before making a bold decision: to leave and build something of her own.
“The turning point came when I realized two fundamental truths: The organizational culture I was in no longer aligned with my soul’s purpose, and there were entire communities being overlooked that I knew I could help transform,” Schmitter said.
She launched Fusion Collective with a mission to make technology more accessible and equitable, proving that sometimes the best way to lead is to create the kind of business you want to see in the world.
Common Steps to Becoming a Managing Partner
While each of these managing partners took different paths, I noticed some common themes in my research and conversations. If you’re looking to step into this role, here are some key steps that can help.
1. Educational Foundation
While there’s no formal requirement, most managing partners start with a bachelor’s degree in business, law, or finance. An advanced degree like an MBA can further set candidates apart — particularly in finance-heavy industries. About 22% of the world’s top CEOs hold an MBA, highlighting its value in leadership roles.
2. Gaining Practical Experience
Before stepping into leadership, building experience in management roles is crucial. This might involve:
- Internships or early career roles in business management.
- Climbing the ranks from entry-level to partner.
- Gaining operational experience in a specific industry.
Many managing partners start as specialists in their field before expanding into business management.
3. Strategic Networking
Managing partners often rise through strong professional networks. Relationships with mentors, industry leaders, and business partners can open doors.
According to findings from a 2022 survey, 42% of professionals found their current jobs through some form or effect of networking, including referrals, applying to openings shared in their network, and more.
4. Taking on Leadership Roles
Most managing partners serve in leadership capacities before they officially get the title. Whether it’s:
- Managing an office location.
- Leading a department.
- Running major firm-wide initiatives.
Compton’s career is a great example of this. She served as vice chair of Shumaker’s management committee and managed a regional office before stepping into the managing partner role.
5. Understanding Business Operations
A managing partner isn’t just a high-level executive — they’re often directly responsible for a firm’s financials, hiring, and operations. Learning how a business runs from the inside out is key to success.
6. Continuous Learning and Adaptability
Since industries evolve, it’s imperative for managing partners to stay up on trends to make strategic decisions. Those who continuously learn will innovate and adapt, leading to success in leadership roles.
Key Takeaways From Managing Partners’ Career Paths
While no two paths to becoming a managing partner are identical, some common themes emerged:
- Build deep expertise first. Becoming an expert in your field creates credibility and trust.
- Take leadership opportunities early. Managing partners often serve in leadership roles long before the title is official.
- Help scale a company strategically. In growth-oriented firms, managing partners play a direct role in business expansion.
- Adapt to change. Staying ahead of industry shifts is critical to long-term success.
- Develop a strong leadership style. Managing partners shape not just business strategy but also company culture.
Whether you work your way up within a firm or launch your own business, the path to managing partner requires a mix of skill, strategy, and opportunity.
Managing Partner Agreement
A partnership agreement is a written agreement between business partners or LLC members. It lays out important information about the company, such as:
- Capital contributions — how much capital each partner has contributed.
- Equity agreement — how much of the company each partner owns.
- Operating details — the responsibilities of each partner.
- Compensation agreement — how each partner will be paid.
- Disputes — how they will be resolved.
- New partners — if, when, and how someone can become an owner.
- Exit agreement — what happens when a partner leaves the partnership.
- Decision rights — whether decisions require consensus or a majority, for example.
Sometimes, you need to draw up this agreement early on, especially if there are seed investors who want to contribute capital and need to know their rights and ownership share.
At other times, if you are starting a new venture, you may not know who will be involved and whether you will raise investment. In that case, you might want to let the idea shape out a little before you formalize things.
That being said, it’s very important to get things on paper.
“Teaming up with people always seems fun and rosy and optimistic in the beginning,” says Donnolo, “but when things really get tough, that’s when personalities and differences start to show. Operate on the assumption that we need to make sure everybody’s gonna be protected, just in case.”
Donnolo recommends speaking to an attorney and, if you can afford it, an executive compensation consultant when you write up your agreement. However, there are some simple templates you can start with if that’s out of your budget. The agreement should be reviewed and tweaked as your company grows and evolves.
Managing Partner Compensation
Compensation structures for managing partners can be complicated, as they can take different forms and will vary from one business to the next.
Distributive Share
Partnerships (as well as some LLCs) are flow-through tax entities, which means the company’s income (both profits and losses) passes directly on to the owners. This is called a distributive share.
Most of the time, partners receive a distributive share that is proportional to their ownership percentage. For example, if one partner owns 80% of the business and the other owns 20%, they will split any profit 80-20.
Partners can also choose to divide their income however they like by outlining the arrangement in their partnership agreement. This can be done for tax purposes or for any other reason, such as if one partner is taking more of a reputational risk.
Guaranteed Payment
According to IRS rules, a partner cannot be considered an employee or be put on the payroll. However, if a partner contributes services or capital to the business, they may receive a guaranteed payment in lieu of a salary.
This is a fixed payment that ensures the partner has predictable income even if the company doesn’t make a profit. Guaranteed payments differ from a salary in that they are not subject to payroll tax. Instead, they will be taxed as ordinary income as part of the partner’s individual tax return.
Managing partners and any other active partners may also receive an additional payment in lieu of a performance incentive or bonus, but again, this payment is not taxed via payroll and is not technically classified as a paycheck.
In Sherman and Palmer’s case, they split everything 50-50. They take a fixed amount from the business each month and review that figure every six months. Any excess profit is reinvested in the business or kept in a fund for future use.
“We have found that an equal share of decisions, challenges, and rewards keeps us both motivated and on our toes at the same time,” says Sherman.
Equity
Of course, the owners’ biggest advantage is owning a portion of the business. If the business grows and succeeds, the owners’ equity portion will become an increasingly valuable asset.
Compensation in an LLC
By default, an LLC with multiple members is treated by the IRS as a partnership. This means the managing partner’s compensation will be paid (and taxed) in the same way as if the business was a partnership.
However, an LLC can also choose to be treated as a corporation, which is sometimes done for tax purposes. In that case, members must be hired as employees and paid a salary to earn an income. They can also earn a share of the profits in the form of dividends.
If your business is an LLC, it’s a good idea to consult an accountant to work out salary and dividend amounts, as there are regulations and tax implications.
What It Really Means to Be a Managing Partner
Before writing this piece, I assumed a managing partner was simply a business owner with leadership responsibilities. But, after speaking with managing partners across industries, I learned the role is far more strategic and adaptable than I expected.
For some, like Jennifer Compton at Shumaker, leadership was a natural next step after years of earning trust and honing expertise. Others, like Daniel Snow at TRAFFIX, scaled their businesses into industry leaders. And then there’s Yusef-Andre Wiley, whose path was shaped by personal transformation and a drive to create real change.
I learned there’s no single path to becoming a managing partner — some rise through the ranks, others start their own businesses. While an MBA or business degree helps, real-world experience, leadership skills, and strategic thinking matter just as much.
And despite their different backgrounds, every managing partner I spoke with emphasized the same thing: You can’t do it all alone. Success comes from building the right team, focusing on strengths, and leading with intention.
Customer Feedback Management — Turning Desperate Comments Into Strategy
The companies I work with care deeply about their customers, and it shows. That’s especially true when I’m updating the UX of a site or overhauling knowledge base content. However, customer feedback management is often lacking. Companies either think they know their customers so well […]
ServiceThe companies I work with care deeply about their customers, and it shows. That’s especially true when I’m updating the UX of a site or overhauling knowledge base content. However, customer feedback management is often lacking.
Companies either think they know their customers so well that they don’t need to formalize the feedback loop, or they’re collecting a lot of feedback and have no way to understand the data. That’s why a structured approach to managing feedback from customers is essential.
Below, I’ll discuss the approach I recommend for recording and acting on customer feedback. I’ll also share helpful channels to keep and eye on, as well as best practices.
Table of Contents
- What is Customer Feedback Management?
- How to Implement Customer Feedback Management
- Customer Feedback Management Software
- 5 Customer Feedback Management Best Practices
- 3 Examples of Customer Feedback Management
- Get Started with Customer Feedback Management
At its core, CFM is a customer-centered approach to doing business that uses customer feedback as a means to deliver a better service experience and product. It’s helpful to visualize customer feedback management as a loop that includes the following steps:
- Ask — solicit customer feedback.
- Categorize — sort feedback into separate groups.
- Act — share feedback with relevant parties and develop solutions.
- Follow-up — Follow up with customers to gauge the effectiveness of your efforts.
You can use customer feedback software at each stage of the loop. This can be really useful if you have a large amount of data.
Now you know how customer feedback management works, let’s talk about the types of feedback. There are two distinct categories I think about — direct feedback and indirect feedback — which I’ll discuss below.
Types of Customer Feedback
Direct customer feedback comes from explicit requests that you send to customers. For example, I might ask customers to complete surveys post-purchase or leave reviews. Indirect feedback is given but not asked for, like social media posts, comments, or even product returns.
Other types of customer feedback include:
- Product or service sales.
- Support tickets.
- Technical issues and bug reports.
- Requests for product or service walkthroughs.
- Customer complaints.
- Suggestions.
With the feedback gathered from CFM, I can work cross-departmentally to identify key customers, streamline improvements, and increase revenue.
Customer feedback management is not just about finding ways to keep customers satisfied. It’s also about turning negative experiences into opportunities for positive engagement. After all, more than half of customers will switch to a different brand after just one negative experience.
The Difference Between a Customer Complaint and Customer Feedback
Before I move on, let’s look at the differences between a customer complaint and customer feedback. This distinction makes a difference when you go to put your customer feedback strategy together.
A complaint is delivered after a customer experience and is — by definition — negative. Meanwhile, feedback can be solicited before, during, or after a customer experience. This information could be bad, good, or neutral.
Customer complaints are mostly due to product or service issues, a lack of empathy in interactions with support staff, and inadequate responses to reviews or appeals for assistance. On the other hand, customer feedback can include praise, suggestions for product improvements, or comments on the effectiveness of a customer service interaction.
Companies need to be sensitive to the power of customer complaints, as rage-filled customers are more vocal than satisfied ones. In fact, 56% of customers don’t complain at all — they just quietly switch to another brand without so much as a “goodbye.”
The sad truth is that most customer complaints never get reported, which means that complaints aired publicly are just the tip of the iceberg. It’s part of the reason I advocate strongly for structured feedback requests in any company — you don’t know what you don’t know.
Why is Customer Feedback Management Important?
Customer feedback management benefits include:
- Reduced churn.
- Increased revenue.
- Improved products and services.
- Stronger customer relationships.
- Data about key customer groups.
I’m all about growth, and I’d be the last person to deny there is value in acquiring new customers. But there is even more value in retaining existing customers. A 2022 research study found that ecommerce brands lose $29 for every customer they acquire — a 222% increase in just eight years.
Customer feedback management is also critical to letting customers know that you care about their satisfaction. People leave companies for many reasons. However, two-thirds of consumers who feel a brand cares about their emotions will likely turn into repeat customers.
Customer Feedback Management Channels
No matter what you sell or how customers buy, there are many avenues to gather customer insight. Here are some of the most common customer feedback management channels:
- Focus groups.
- Customer interviews.
- Surveys.
- NSA.
- Third-party reviews.
- Email.
- Live chat.
- Text.
- Social media.
- In-product requests.
In the past, focus groups and customer interviews formed the backbone of most CFM efforts. I think they still have their place, especially for gathering qualitative information about a specific product or aspect of your company.
But these days, things are mostly digital. CFM is no exception. I find more and more companies are hyper-focused on digital channels because they cost less to analyze, and the data is easier to synthesize at scale.
For example, net promoter score (NPS) surveys make it easy and affordable for companies to automate CFM. They help businesses understand how customers feel overall about their brand. Although different software score their results differently, all NPS surveys measure customers’ loyalty to a brand.
Live chat, text, and email are the most direct customer feedback management tools. With the increasing digitalization of customer service experiences, people want to be able to communicate with businesses quickly and efficiently when a problem arises.
Let’s not forget third-party reviews and social media sites. Here, people air their grievances and discuss their favorite brands. I love how organic these channels are. You can see what people say without any solicitation. So, if you’re a beginner to CFM, I recommend starting with review sites and social media to gauge customer sentiment.
How to Implement Customer Feedback Management
Good customer feedback is important for everyone from sales and marketing to product and customer success. This information can help inform everything from day-to-day operational changes, right up the chain to strategic financial decisions.
With the whole organization clamoring for customer feedback data, it’s easy to go overboard. So, before you implement a customer feedback management strategy, I recommend taking a step back and ensuring you plan a structured approach. Here’s how.
1. Set clear objectives.
It sounds like an obvious step, but I’m always amazed at how many teams jump straight into data collection. This is how I’ve ended up sifting through disparate customer feedback for hours. In these scenarios, I’m looking at information from multiple channels, trying to make sense of it.
Basically, if you don’t have objectives, it’s more difficult to make your customer feedback actionable.
I recommend defining what you want to know and why. This could be broader business objectives or relate to something highly specific. For example, you might want to:
- Improve the features of your product.
- Understand whether your brand resonates with the target market.
- See if your pricing is too high or too low.
- Validate a new product line or feature before launch.
- Optimize the user experience.
- Get an overall sense of how happy your customers are with the company.
You might already see how these objectives might then feed into my next step.
2. Select your feedback channels.
Some feedback channels, like social media and review sites, are always worth keeping an eye on. I sometimes use social listening or sentiment analysis tools designed to automate data synthesis on these sites.
Other channels need a bit more consideration. Some objectives, like validating a new product, might be best met with a focus group. Others are broader and better suited for one-off mass surveys.
The other item I recommend thinking about here is frequency. How often should you gather fresh data? It depends on what you’re gathering. For example, some SaaS brands I’ve worked with send quarterly surveys to gauge their NPS. Other channels, like a “how did we do” email, can be sent continuously to new customers.
3. Use automation.
There are lots of methods and tools you can use to automate the collection of customer feedback.
Let’s say I’m looking at a site with an ecommerce store. I might recommend implementing a drip email sequence so customers receive a purchase confirmation and a couple of follow-ups asking how they like the product. Each of these emails can include links to surveys, opportunities to leave a review or quick star-rating apps. Now, customer feedback management is fully automated.
Other areas I recommend you consider for automation include:
- Chabots on your website to ask people about their experience (like HubSpot’s Breeze).
- In-app surveys if you’re working with a software product.
- Requesting reviews on platforms like Google or Trustpilot.
Remember to automate when to request feedback. Right after purchase is one obvious trigger. However, there are plenty of other interactions worthy of feedback. For example, if a new feature is released on a SaaS platform, I recommend triggering a request for feedback when a user first interacts with the feature.
4. Set a schedule for focus groups.
I think focus groups still have their place in CFM, regardless of industry. They don’t have to be formal affairs conducted through two-way mirrors. I’ve run focus groups over video calls that provided tons of really valuable, qualitative feedback.
But here’s the thing: Your customer’s time is valuable. Finding available participants who represent your target personas can be difficult. If you run them too often, you might run out of worthwhile customers to interview, particularly if you work with a smaller customer base.
Instead, I recommend planning focus groups that are in line with your overall strategic planning. They should coincide with significant events in the calendar, like a new feature release or the launch of a new service portal.
5. Centralize and categorize the data.
Where you have control over the questions you ask your customers, try to keep them consistent. Let’s say you have a website chatbot and a post-purchase survey email. They should both direct customers to the same survey with the same set of questions and response options.
I’ve seen companies collecting simple star ratings from one platform while using detailed questions in surveys elsewhere. It’s all good data, but it makes analysis to get to the heart of your customer sentiment extremely difficult.
There are also tools available, like MonkeyLearn or Chattermill, that use AI to help you synthesize sentiment and survey data from multiple channels in one place.
Either way, make sure you can compile your data. But remember that, without insights, data is just words and numbers on a page. Try to align how you categorize and organize the feedback closely with the objectives I spoke about earlier.
6. Make a plan for implementation.
When I get to a place where I can take objective-focused insights from feedback, the time comes to transition to decision-making. This often means compiling and passing reports to other departments that use the feedback in their own strategic decision-making processes.
During this phase of customer feedback management, you’ll uncover room for improvement. Internal stakeholders might request more information moving forward or deeper insights into a particular area. In those cases, I recommend revisiting the structure of a survey or seeing if a focus group or one-off survey is worthwhile.
Customer Feedback Management Software
Customer feedback management software helps you automate feedback collection, aggregate data, and analyze metrics to form actionable decision-making. Here are a few high-quality software tools I recommend beginners check out.
1. Service Hub
HubSpot’s Service Hub features a customer feedback software tool that helps you truly understand customer perception and uncover areas of opportunity for taking action to satisfy your audience.
Service Hub also allows you to automate customer surveys, making it easier for users to gather feedback after every interaction. Being able to define clear survey triggers allows me to gauge how customers feel at key moments in the customer journey. Beyond that, sentiment analysis tools have helped me find feedback patterns I may have otherwise missed.
What I find most helpful? Service Hub helps teams see what feedback looks like in context. I can see other products a customer has purchased and other feedback we received from that buyer before
2. Survicate
Survicate helps you reach customers where they are most engaged, allowing you to deploy surveys on desktop, mobile, in-app, or via email. With multiple touch points, you’ll have visibility into the experience at every step of the customer journey.
However, what I like the most about Survicate is its real-time feedback dashboard. I can see how customer sentiment is changing at any time. So, if there’s ever a dip, I can more easily investigate what happened in our ecosystem that caused the shift. There’s even a visualization tool that makes seeing this information even easier.
Beyond that, this platform seamlessly integrated into my tech stack. Actionable customer feedback automatically synchs with our CRM and ticketing system. I can then make sure a member of our feedback team can follow up, ensuring a better service experience.
3. SurveyMonkey
You’ve probably interacted with SurveyMonkey at least once before. It’s one of the most common surveying tools. In the world of customer success, SurveyMonkey can help you create surveys for different areas of your business (products, customer loyalty, service interactions, etc.), allowing you to gather information about the customer experience.
My favorite thing about SurveyMonkey is the interface’s simplicity. I can create a survey in a matter of minutes intuitively. I just choose what type of question I want to ask and how I want to elicit a response (open-ended, sliding scale, multiple choice).
When results come in, I can filter by demographic information or customer segment. SurveyMonkey also offers sentiment analysis and a word cloud feature, making information easy to understand.
5 Customer Feedback Management Best Practices
1. You need both quantitative and qualitative data.
Quantitative data typically tells me the “what,” but qualitative data backs that up with a “why” that makes feedback from customers actionable.
Net Promoter Score is a good example. A three out of ten rating is concerning, but not knowing why a customer feels that way makes it almost useless information. It’s best practice to leave space for customer comments along with the rating request to get more context. I’ve uncovered issues with user experience this way, where the data revealed customers just didn’t understand how to use certain features optimally.
Essentially, quantitative data gives you something to investigate. Qualitative data helps you solve the case.
2. Make it easy for your customers.
Time is precious for everyone, and your customers are no different. Plus, the more people I get to fill out a survey, the more reliable the data. So, I recommend making feedback collection as simple as possible for your customers.
Written reviews take time, but a couple of multiple-choice questions with a short open text field for more details takes no time at all.
The best part of this strategy is you’re more likely to capture your middle-ground customers. Highly satisfied and highly unsatisfied customers are likely to leave a review. But what about people in the middle who find your product or service fine but have valuable insights about what to improve?
Easy feedback methods make it much easier to capture feedback from this segment.
3. Track patterns and trends.
Patterns or trends in your customer feedback data can provide really useful insights to pass along to other departments and improve business outcomes.
Maybe I notice that increased levels of customer dissatisfaction correlate with recent pricing increases, or customers who buy a product online have more negative (or positive) feedback than in person. A new competitor might be getting more mentions than before, causing customers to churn.
If you aggregate your data well, these types of trends can help you get ahead of those that can have pretty severe consequences for the business.
4. Keep customer data protected.
This is true of all interactions, of course. But if you’re collecting customer feedback, you’re often collecting personal or sensitive data along with it. When it comes to using this information, even internally, make sure you’re staying compliant. Include opt-ins for storing customer data.
5. Use A/B testing.
It can be difficult to compose feedback questions. I’ve often wrestled with deciding how many questions to include and at what point I’m asking too much.
Just like in marketing campaigns, you can A/B test certain aspects of your CFM strategy. Here are some things I would consider testing:
- Survey length (and question length).
- Timing and frequency of feedback requests.
- Format of surveys (multiple choice, open text, or star ratings).
- Delivery channels.
- Personalization.
Acting on the test results can greatly improve the quantity and quality of responses from your customers.
3 Examples of Customer Feedback Management
Let’s take a look at some customer feedback examples to see how global brands do it efficiently and effectively.
1. Uber
Ridesharing startup Uber has made measurement-based customer feedback a core part of their CX design.
After each trip, users can use in-app surveys to rate their driver between 1 and 5 stars. They then choose from several preset categories to explain their rating. What I like best is that, if a driver goes above and beyond to deliver an exceptional customer experience, customers are encouraged to give a specific compliment.
It’s a quick and easy mechanism, but it allows Uber to quickly identify a problem driver and take corrective action. It also provides insights into what customers like when a driver performs well. This helps Uber maintain the quality of its driver base and reduce the likelihood of negative experiences.
2. Zappos
Ecommerce giant Zappos is well-known for responsive and helpful customer service. The online shoe retailer makes it easy to get in touch by offering 24/7 chat, text, and phone service. By keeping multiple lines of communication open both day and night, Zappos ensures that it can nip problems in the bud before they escalate into full-blown complaints.
But what I particularly like is the feedback options under “Help & Support.” Not only is customer service easy to access but there is also a “Give Us Feedback” link. Customers then get a detailed survey so the brand can collect all feedback, not just get ahead of complaints.
Zappos’ commitment to free delivery and returns for 365 days demonstrates its willingness to innovate based on customer feedback. This, in turn, has ensured that the company enjoys a dedicated following, even in the crowded online retail marketplace.
3. Apple
Few companies took product and service innovation more seriously than Apple. Over the years, the tech giant has built up a rabid fan base, largely because it knows what its customers want.
Apple consistently ranks highly in customer satisfaction surveys because of its reputation for continuously seeking and employing customer feedback. After every purchase, Apple sends the buyer an email to gather feedback related to the sale.
Apple also relies on NPS surveys to measure customer satisfaction related to products, services, and in-store or online shopping experiences. It then uses these scores to tailor features for new products to satisfy the widest number of consumers.
Get Started with Customer Feedback Management
I’m a big believer in using customer feedback management in a way that works best for your brand. If you’re a beginner to CFM, take a look at your existing channels, even if it’s just your social media or presence on review sites. Then, see how you can aggregate the data for worthwhile insights.
As you progress, I recommend exploring new channels and formal feedback mechanisms. Don’t forget to use software to automate your processes, too. You’ll be surprised how much time you can save and how having a formal strategy can work wonders for strategic decision-making.
Editor’s note: This post was originally published in January 2022 and has been updated for comprehensiveness.
Making the B2B Customer Funnel Work for Your Team — Proven Strategies
If you run a SaaS business, you may have hit a wall where your network and initial traction aren’t enough to keep growing. Maybe you’re generating leads but struggling to convert them into long-term customers. Or worse — you’re bringing in new customers, but they […]
ServiceIf you run a SaaS business, you may have hit a wall where your network and initial traction aren’t enough to keep growing. Maybe you’re generating leads but struggling to convert them into long-term customers. Or worse — you’re bringing in new customers, but they don’t stick around.
This is where a strong B2B customer funnel comes in.
Many companies focus too much on lead generation without considering what happens after someone signs up. A good customer funnel helps at every stage, from first hearing about you to becoming loyal fans.
In this guide, I’ll break down the five key funnel stages, outline proven strategies for each stage, and share some examples to help you optimize your funnel and accelerate your growth.
Table of Contents
- What is the B2B customer funnel?
- Why the Customer Funnel Matters in Customer Service
- The B2B Customer Funnel Explained in 5 Stages
- How to Use the B2B Funnel in the Customer Journey
- B2B Customer Funnel Strategies
- How I Think About Customer Funnels
What is the B2B customer funnel?
A B2B customer funnel is the journey a customer takes from learning about your business to becoming a long-term user.
It’s different from a sales funnel, which only focuses on getting new customers. The customer funnel goes further, making sure those customers:
- Stay engaged.
- Get value from your product.
- Recommend you to others.
P.S. You might also see terms like a marketing funnel and customer acquisition funnel. While these all share similarities, each will differ slightly by the end goal and what exact metrics you’re measuring for.
Key Differences Between the Sales and Customer Funnel
|
Sales Funnel |
Customer Funnel |
|
Focuses on lead generation and conversion |
Continues through the entire customer lifecycle |
|
Ends at the point of sale |
Focuses on retention, loyalty, and expansion |
|
Managed by sales and marketing teams |
Managed by customer success and support teams |
Why the Customer Funnel Matters in Customer Service
A well-structured B2B customer funnel improves customer satisfaction, reduces churn, and increases lifetime value.
What the data says:
- Better upsell & cross-sell opportunities. Companies focusing on post-sale engagement see up to 30% higher revenue per customer.
- Consumers are loyal. 95% of consumers say that customer service impacts their brand loyalty.
- Personalization is key. 78% of reps agree that customers expect more personalized experiences than ever before, and consumers are more loyal to brands that offer those experiences and value their opinions.
- Saves you money. Acquiring new customers is five times more expensive than retaining existing customers. Additionally, customer-centric companies are 60% more profitable than companies that aren’t.
Knowing your customer journey matters more than ever. Too often, I see startups that focus too much on acquisition alone and ignore the post-sale experience.
Pro tip: If you’re looking to improve your customer journey, start with a customer journey map. I recently wrote a guide on how you can use AI to level up your entire process. (It’s easier than you think!)
The B2B Customer Funnel Explained in 5 Stages
Every customer moves through five key stages:
- Awareness. They realize they have a problem.
- Consideration. They explore possible solutions.
- Onboarding. They buy your product and need help getting started.
- Retention. They actively use your product.
- Advocacy & Expansion. They tell others about your product.
Each stage requires tailored customer service strategies to keep users engaged and drive long-term success. What makes this successful, I’d argue, is being able to take a step back and look at the big picture. How do customers flow between each stage? Why do they take the next step, and what factors influenced them? All of these things will help you zero in your customer funnel.
Below, I’ll go over each stage in more detail so you can see examples in action.
How to Use the B2B Funnel in the Customer Journey
Meet AcmeTech, a fictional company that sells AI-powered customer support software.
Their problem? They get lots of leads, but many customers don’t stay long-term. Here’s how AcmeTech could use the customer funnel to solve this problem.
P.S. I used ChatGPT here to illustrate some of these examples!
Awareness
At this stage, your goal is to make potential customers aware of your brand and educate them about a problem they may not even realize they have. This means:
- Publishing high-quality SEO-driven blog content.
- Running targeted LinkedIn and Google ads.
- Partnering with industry influencers or guesting on podcasts.
- Offering free tools, templates, or research reports that attract potential buyers.
Business Example: AcmeTech’s Approach
AcmeTech realizes that many customer support teams don’t know how much time they waste on repetitive queries. To raise awareness, they create an interactive AI ROI Calculator that helps companies estimate how much money they could save by automating responses.
They also publish a thought leadership article titled:
👉 “The Hidden Cost of Slow Customer Support — And How AI Can Fix It.”
This educational-first approach positions them as a trusted expert rather than just another software company pushing a product.
Consideration
Once potential customers know about your solution, they start evaluating their options. This is where they compare vendors, request demos, and read case studies. At this stage, businesses should:
- Offer free trials or personalized demos.
- Provide case studies that show measurable success.
- Engage in conversational marketing (e.g., live chat, webinars).
- Address objections with comparison guides and FAQ pages.
Business Example: AcmeTech’s Approach
Since AcmeTech struggles to keep customers around long-term, leads may not fully understand AcmeTech’s value or how it stands out from competitors.
To solve this problem, AcmeTech decides to strengthen engagement by publishing a case study from one of their most successful clients. They begin to offer regular webinars and free trials for interested prospects. They also give the sales team sales enablement materials to effectively communicate ROI and success stories.
Onboarding
Onboarding is where many B2B companies lose customers. A confusing setup, lack of training, or slow implementation can lead to frustration and high churn rates. A smooth onboarding experience should include:
- A structured onboarding sequence (checklists, welcome emails, guided walkthroughs).
- A dedicated customer success manager (CSM) for high-value accounts.
- Access to self-service resources (knowledge base, video tutorials).
- A kickoff call to define success metrics and usage goals.
In my experience, great onboarding is what separates my favorite tools from the rest and what makes me a long term customer. Make it extremely easy to get started, help me see the value of your product, and give me a “quick win” — it’s that simple.
As Patrick McKenzie, a strategic advisor for Stripe, says, “I can tell you with a fair degree of certainty that no matter how great your product is, 40-60% of your free trial users never see the product a second time. Which makes that first use of the software really, really freaking important.”
Business Example: AcmeTech’s Approach
Optimizing the onboarding process is key for AcmeTech to retain their customers once they convert. They decide to revamp onboarding with hands-on training, personalized setup, and proactive support to ensure customers see immediate value.
- Gamified Tour. AcmeTech installs a guided tour with gamification features so new clients can learn how to use the software quickly.
- Access to Knowledge Base. They provide easier access within the software to their already-established wealth of self-service resources so customers can find an answer to any question.
- Milestone-Based Engagement. They start sending emails when users reach key actions (e.g., “You’ve handled 100 tickets with AI — see your impact!”).
- First 30-Day Health Score. AcmeTech starts tracking engagement metrics (logins, features used, response time improvements). If a customer isn’t engaged, they intervene early with personalized training.
Retention
Once a customer is onboarded, the next challenge is keeping them engaged so they renew their contract or expand their usage. This requires:
- Proactive support (regular check-ins, feature updates, success reviews).
- Exclusive training (invite-only webinars, advanced user groups).
- Community engagement (forums, Slack groups, networking events).
- Usage-based nudges (automated alerts when engagement drops).
Pro tip: If you want to learn more about retention fundamentals and best practices, check out HubSpot Academy’s course on the topic. It’s a great starting place to refine your strategies.
Business Example: AcmeTech’s Approach
AcmeTech already has a customer success team available for any questions their clients might have, but they decide to implement a more proactive approach by having reps reach out to clients on a regular basis.
They also integrate AI-driven insights to optimize clients’ use of the software and provide ongoing educational content that is delivered monthly to users’ inboxes.
Advocacy
Loyal customers can become your biggest growth channel — if you give them a reason to advocate for your brand. Key strategies include:
- Referral programs (offering discounts or perks for successful referrals).
- Customer spotlights (featuring them in blog posts, podcasts, or events).
- Co-branded content (partnering on whitepapers, webinars, or case studies).
- User-generated content (UGC) (testimonials, LinkedIn shoutouts, customer success stories).
Business Example: AcmeTech’s Approach
Because AcmeTech has been struggling with retention, they have few referrals and testimonials, but are missing out on this key part of the customer funnel.
They decide to go the classic route and create referral incentives. They further encourage satisfied customers to share reviews and case studies.
B2B Customer Funnel Strategies
To optimize each stage of the customer funnel, I recommend trying some of these key engagement strategies.
Awareness: Using Educational Content to Build Brand Authority
At the awareness stage, our goal is to educate and engage potential customers. Content marketing is a powerful way to do this, providing value upfront without asking for anything in return.
At HubSpot, that’s our secret sauce — and likely the reason you’ve arrived at this post.
We focus heavily on inbound marketing, using SEO-driven blog posts, free courses, and downloadable resources to attract potential customers. The HubSpot Academy, which offers free certifications in marketing, sales, and CRM management, helps people learn valuable skills while also introducing them to HubSpot’s ecosystem.
My takeaway: If you consistently provide high-value content, you create a natural inbound funnel where potential customers seek you out rather than being chased down. No matter what company or industry you’re in, you can easily replicate this playbook.
Consideration: Personalized Demos and AI Chat Support
When potential customers are in the consideration stage, they’re actively comparing solutions. A frictionless, personalized experience can be the difference between a sign-up and a lost lead.
Drift revolutionized B2B sales funnels by replacing static lead forms with AI-powered chatbots. Instead of asking customers to fill out a form and wait for a demo, Drift’s chatbot instantly connects them with a sales rep or provides an interactive, personalized demo experience based on their needs.
My takeaway: Using AI chatbots and real-time demos reduces friction and guides potential customers faster toward a purchase decision.
Onboarding: Structured Plans and Guided Walkthroughs
The onboarding process is where many potential users drop off if the experience is frustrating or overwhelming. A well-structured onboarding flow ensures users quickly see value from your product.
Asana, a platform I use almost daily for project management, provided a straightforward onboarding experience that helped me understand how to use it and start getting value from it immediately. I learned how to create projects from scratch or using a template. I can then break the project down into specific tasks with assignees and due dates.
My takeaway: Having a clear onboarding plan is vital for customer success. Use a template or make a plan with experts to ensure your customers succeed.
Retention: Proactive Customer Support and Exclusive Training
Customer retention is everything you do to keep existing customers coming back. Customer success and support teams play a significant role in customer retention as they continually nurture relationships and ensure the customer’s ongoing success with your brand.
According to our research, a 5% increase in customer retention can increase company revenue by 25-95% and ultimately grow your customers’ lifetime value (LTV).
When asked in a survey about what “customer loyalty” means, 74% of respondents said it’s about feeling appreciated and understood rather than receiving special offers. Additionally, 64% mentioned that they are willing to spend more on a brand that remembers them and offers a personalized experience.
My takeaway: Customer service software like Service Hub makes it easy to provide timely and proactive customer support that keeps track of all interactions in one place.
Advocacy: Leveraging Referral Programs and Community Engagement
Turning satisfied customers into brand advocates creates a powerful organic growth engine. One of the best ways to do this is through referral incentives and an engaged user community.
I can think of so many companies that have done referral programs really well — Dropbox, beehiiv, Morning Brew.
Referrals are an awesome approach for several reasons:
- They help build trust and social proof. Buyers trust peer recommendations more than marketing materials.
- They lead to higher close rates. Referred leads convert 3-5x more than cold outreach.
- They have a lower CAC. Referral-driven customers cost significantly less to acquire.
A great example of the power of referrals is Slack. Slack initially scaled by encouraging users to invite teammates, leveraging network effects. This organic approach helped them grow to $1M ARR within 8 months before layering in paid acquisition — and eventually became the fastest-growing business app of all time by relying on word-of-mouth.
My takeaway: If you make referrals easy and rewarding, your customers will sell for you, creating a cost-effective, scalable growth loop.
How I Think About Customer Funnels
If there’s one thing I’ve learned, it’s that customer acquisition is only half the battle. A steady stream of leads won’t get you far if those customers don’t see value, stay engaged, and ultimately advocate for your brand.
That’s why I always look at the full customer journey — not just the sale.
- If you focus only on awareness and lead generation, you’ll struggle with conversions.
- If you don’t invest in onboarding, customers will churn before they ever see value.
- If you neglect retention and advocacy, you’ll always be chasing new customers instead of growing through referrals and renewals.
I’ve seen time and time again that companies that prioritize the full funnel — especially retention and advocacy — outperform their competitors.
At HubSpot, we’ve built our entire strategy around this. Try Marketing Hub to get more leads and build your client acquisition, use Sales Hub to close more potential customers, and use Service Hub to earn loyalty and keep those valuable customers.
The Buyer Motives Every Salesperson Should Know (+Tips from the Field)
As a small business owner, I’ve learned firsthand just how important it is to understand buyer motives. After all, if I know what motivates my customers, I can tailor my sales pitch to match their unique interests and inclinations. Of course, it’s impossible to read […]
SalesAs a small business owner, I’ve learned firsthand just how important it is to understand buyer motives. After all, if I know what motivates my customers, I can tailor my sales pitch to match their unique interests and inclinations.
Of course, it’s impossible to read people’s minds — but by learning to recognize some of the most common buyer motives, you can maximize your chances of understanding what drives your clients’ purchase decisions.
Does this sound intriguing? Read on to learn more about the eight buyer motives every salesperson needs to know, as well as my own top tips for how to navigate emotional and rational buyer motivations.
Table of Contents
- Buyer Motivations
- What is buyer motivation?
- Emotional vs. Rational Buying Motivations
- When can rational and emotional buying motives overlap?
What is buyer motivation?
If I’ve learned anything over the course of my marketing and sales career, it’s that people are complicated. The people buying your goods or services are motivated by a complex range of thoughts, feelings, and instincts, and these buyer motivations work together to influence your customers’ purchasing decisions.
It’s also important to note that these diverse buyer motives come into play throughout the customer journey.
The Customer Journey
Specifically, there are three main stages in the customer journey:
- Awareness. When the prospect becomes aware of a need or problem.
- Consideration. When the prospect gathers information about different ways to solve their problem.
- Decision. When the prospect makes a buying decision to solve that problem.
At each stage of this journey, it’s up to you as the salesperson to understand your customer’s motivations. Then, you can use that understanding to effectively communicate the value of your offering, guiding the customer through their journey toward a closed deal.
Pro tip: If you’re not sure where to start, these free Customer Journey Map Templates can help you outline your company’s customer journey and experience from start to finish.
Below, I’ll walk through eight of the most common buyer motives to consider, including both emotional and rational motivations.
1. Need
Need might be the most immediate buyer motive. After all, if a prospect has an urgent problem and you can solve it, they’re inherently going to be motivated to consider your offering.
Of course, people aren’t always aware of their needs. You’re more likely to be able to capitalize on your buyer’s needs if they recognize the full spectrum of potential issues that can stem from their situation.
If you approach interactions with prospects assuming that they already have a comprehensive understanding of everything they need, you’re liable to miss out on a lot of opportunities.
Pro tip: Steve Jobs once said, “A lot of times, people don’t know what they want until you show it to them.” The same principle applies to what people need: Prospects don’t always recognize a need until you show them one.
Some buyers will already have a clear-cut picture of their problems and how your product or service could address them … but others might need a little more guidance. As a salesperson, it’s my job to raise my prospect’s awareness of an issue, explain how that issue applies to their situation, and demonstrate how my offering can address it better than anyone else.
2. Imitation
Imitation may be the greatest form of flattery, but it’s also an important buyer motive. When a buyer doesn’t have a direct need for a product, but they’re still motivated to buy it because everyone around them seems to want it, that’s imitation at work.
Pro tip: You may think of peer pressure as exclusive to young people, but research from Washington State University shows that people of all ages are susceptible to FOMO, or “fear of missing out.”
Imitation is the underlying buyer motive that drives many consumer fads. When a certain product or service rapidly becomes popular, people won’t want to miss out on the movement, so they’ll be motivated to buy it out of the desire to imitate those around them.
3. Fear
Beyond fear of missing out, there are many other ways in which fear can serve as a powerful catalyst for action. That’s why so many companies lean on scare tactics — whether subtle or overt — to create urgency behind their messaging and sales efforts.
While this may seem unethical, there are contexts in which speaking to people’s fears can be entirely justified.
For example, the National Highway Traffic Safety Administration recently launched an ad campaign with the slogan “Click It. Don’t Risk It.” to encourage people to buckle up when driving. The campaign emphasizes the very real danger of car crashes, using scary images and statistics to illustrate the importance of wearing a seat belt.
Pro tip: I’ve learned that it’s important to balance leveraging buyers’ reasonable fears with avoiding unethical, manipulative marketing strategies.
As with other motives, buyers may not initially realize that they’re facing a risk that they should be afraid of. While I never recommend stoking fears unnecessarily, effective salespeople can highlight the real downsides of not buying their product or service to raise valid concerns that their prospects may not have recognized otherwise.
4. Health
According to a recent study, health and wellness is the number one driver of Americans’ home-related purchasing decisions. Many consumers prioritize their health above all else — and they’re willing to buy products and services that promise to protect it.
As such, if you can emphasize that your product or service will help people live healthier, longer lives, that can help you capitalize on this important buyer motive.
Of course, you can’t just say that your product will make people healthier. The key to selling based on health is to offer a concrete, legitimate demonstration of the health benefits. Whether it’s a testimonial from a doctor, statistics from a study, or some other form of evidence, you’ll need compelling proof to establish exactly how your product benefits consumers’ well-being.
Pro tip: If you show that your offering addresses a relevant, urgent health concern, you’ll be in an excellent position to sell effectively.
5. Impulse
Take it from me: People don’t always give a ton of thought to the purchases they make. While some decisions are the result of careful deliberation, we all fall under the spell of impulse purchasing now and then.
When consumers get caught up in the heat of the moment and buy for the sake of buying, that’s the result of the impulse buyer motive.
Impulse buying is rooted in excitement. Luckily, as a salesperson, you don’t have to just sit around hoping that your prospects will get excited about your offering — you can take steps to generate that sense of urgency proactively.
Pro tip: Promotional pricing tactics like flash sales or limited-time-only deals can be powerful tools to drive impulse buys.
In addition, I’ve found that imitation and impulse can often go hand in hand. After all, if buyers see their peers embracing a product or service, they might be inclined to jump on the bandwagon without fully considering whether they really need what they’re buying.
6. Pleasure
Some purchases are driven by needs. But, in other cases, people are motivated to buy products or services simply for entertainment or pleasure. These nice-to-have purchases may be less essential, but buyers can still be highly motivated to make them.
After all, we all like to enjoy ourselves. So, from time to time, we all like to buy things just because we want to.
In general, I’ve learned that this buyer motive is most relevant for products or services that are seen as luxuries. Of course, what counts as luxury can be highly subjective, but most of us can at least make a pretty solid guess based on intuition.
Pro tip: To sell to buyers motivated by pleasure, it’s often helpful to cast your product or service as a luxury.
For example, if someone is shopping for home decor or a new pair of designer sandals, their priority is probably pleasure. The same can’t be said for someone looking for insect repellant to deal with their house’s ant problem or for a plumber to deal with a flooded basement.
7. Financial Gain
Especially when it comes to B2B sales, buyers are more willing to spend money if the solution lets them make money. In these cases, the prospect’s main motive is to leverage your product or service to improve their own business operations. For example, they might be looking to purchase a tool that will help them boost employee productivity, generate more revenue, or eliminate unnecessary expenses.
If you’re selling to a prospect with this motive, you should share quantitative metrics that illustrate the results and outcomes you can offer. Remember: Show, don’t tell. I’ve found that referencing similar businesses or current customers that have seen significant financial gains by leveraging your product can be a highly effective strategy for financially motivated prospects.
Pro tip: Put financially-driven buyers at ease by sharing cold, hard facts that illustrate exactly what they can expect if they do business with you.
Prospects motivated by financial gain typically have more at stake than those who are just buying a product to avoid missing out on a hot new trend. That’s why it’s so important to convince them they’ll be in good hands if they invest in your product or service.
8. Aspiration
The last buyer motive that I think is important to consider is aspiration. Some consumers are driven to buy because they aspire to improve themselves. They want to change for the better, and they are willing to spend money to make it happen.
Purchases like gym memberships and subscriptions to online courses, for instance, generally aren’t made out of fear or the pursuit of pleasure. On the contrary, they are motivated by people’s sincere ambition to better themselves.
Pro tip: If you’re selling to a buyer motivated by aspiration, the key is to emphasize what they could achieve — and who they could become — if they opt to make a purchase.
For example, if you’re selling online coursework or paid online certifications, let your prospects know how your product can help bolster their resumes. You can even share testimonials from satisfied customers that highlight how helpful your offering has been for their career development.
At the end of the day, self-improvement requires determination. So, if you want to capitalize on this buyer motive, you’ll need to show your prospects something to be determined about.
Emotional vs. Rational Buying Motivations
Clearly, there are many different kinds of buyer motives. But in general, I’ve found that motivations for buying can be grouped into two main categories: emotional motives and rational motives.
Emotional Buying Motives
When prospects are driven primarily by emotional buying motives, it means that they are motivated to buy something because of how they think the purchase will make them feel. For example, a buyer motivated by the need to feel respected among their peers would be considered emotionally motivated.
Pro tip: To sell to emotionally-motivated buyers, it can be helpful to focus on the emotional benefits of your product or service.
In my experience, emotional marketing tactics such as telling a compelling story and creating a sense of community can be great ways to engage with more emotionally-motivated buyers.
Rational Buying Motives
In contrast, rational buying motives are driven by logic and reasoning. What are examples of rational buying motives? These buyers are likely to consider factors such as durability, safety, and price before making a buying decision.
Pro tip: Rationally-motivated buyers are more likely to be convinced by quantitative facts and evidence than by a more emotional sales pitch.
There are a wide range of sales tactics that can be effective when selling to more rationally-driven buyers, from doing extensive research to understand the prospect’s needs to quantifying the benefits of your offering in terms of time or dollars saved.
Example: Two Kinds of Car Buyers
To illustrate the differences between emotional and rational buying motives, it’s helpful to consider a pair of examples. So, let’s imagine a consumer looking to purchase a car.
A Rational Buyer Example
If the consumer is rationally-motivated, the process might look something like this: They first spend time conducting extensive research on factors like fuel economy, safety, and durability.
Then, they identify a specific used vehicle at a local dealership that meets their ideal specs and budget, and despite its lack of fun features like power windows or a stereo, they buy the car. This purchase is based on concrete need and practical utility, making it a highly rational purchase.
An Emotional Buyer Example
In contrast, an emotionally-motivated purchase might look more like this: A consumer already owns a car, but stops by the local dealership to check out a new line of convertibles. They didn’t plan to buy anything, but they saw a car that they immediately decided was the car of their dreams.
They take it for a test drive, and they love how it rides. They imagine how cool they would look driving along the Pacific Coast Highway with the top down, wearing a scarf, aviator sunglasses, and leather gloves. They get so excited that they buy the car on the spot.
Most purchases fall somewhere between these extremes — but these examples capture the essence of the two categories: Emotional motivations include feelings such as pleasure, vanity, comfort, or prestige, while rational motivations tend to be based on factors like budget, safety, and durability.
When can rational and emotional buying motives overlap?
In my experience, it’s rare for a buyer to be 100% rational or 100% emotional. Instead, real-world buying decisions are most often a combination of both.
As sales expert Sander van Dongen explains, “Rather than viewing emotions and logic as opposing forces, it’s more accurate to consider them as complementary elements that together form a powerful combination in consumer decision-making.”
He argues that “emotions create the initial desire to buy, while logic provides the necessary justification to validate the purchase.” As such, van Dongen suggests that “effective marketing strategies harness both these elements.”
Of course, this can be a tricky tension to navigate as a salesperson or business owner. Restaurant Manager at Deschutes Brewery Ryan McCargo recognizes this challenge in his own work, reflecting that “the balance between rational and emotional approaches within a marketing campaign can be daunting.”
According to McCargo, being rational is best when you want to illustrate the usability and functionality of the campaign.
“When you’re ready to communicate the campaign’s purpose and connect it to its place within the wide world, that is when to clutch your emotional pearls,” McCargo says.
McCargo notes that people like to see rationality when asking, “What makes this product good/quality?.” They need emotional connection to pull the trigger on the question, “Why is this product good for me?”
At the end of the day, we are all only human — and humans are naturally both emotional and rational. Rather than attempting to classify every prospect as motivated exclusively by just one factor, I’ve learned that effective salespeople embrace the nuance and complexity of their customers’ diverse motivations.
Understand Buyer Motives to Increase Sales
Whenever I talk to prospects, my first question is always, “Why?” Why is this person interested in what I have to offer? What drives them? What are they afraid of, or what are they hoping for?
If you take the time to understand why your prospects are considering buying from you, you’ll be empowered to craft a sales approach that’s tailored to their unique buying motives.
Ultimately, understanding your buyers’ motives can help you create campaigns that engage your prospects and nudge them toward buying your product or service. After all, there’s a reason for every purchase. It’s up to you to identify it.
Grants for Black-Owned Businesses and Other Funding Resources for Black Business Owners [+ Deadlines for 2025]
Welcome to Breaking the Blueprint — a blog series that dives into the unique business challenges and opportunities of underrepresented business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their […]
SalesWelcome to Breaking the Blueprint — a blog series that dives into the unique business challenges and opportunities of underrepresented business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their stories can inspire and inform your own success.
You and I both know it: Grants for Black-owned businesses are hard to come by. According to a 2024 State of Black Business Report by the Center for Entrepreneurial Equity — more than any other demographic — Black business owners experience pervasive barriers to accessing capital. That means finding the right opportunities often takes more time, research, and resilience than it should.
In this piece, I’ll share a diverse list of grants and other funding resources for Black-owned businesses, all thoughtfully selected to help you take your dreams to the next level.
Table of Contents:
- Black Owned-Business Statistics You Should Know About
- Grants for Black-Owned Businesses
- Additional Resources for Black-Owned Business Owners
- We Need More Black Businesses, So Start Yours
Black Owned-Business Statistics You Should Know About
Although pursuing entrepreneurship and business ownership as a Black person isn’t easy, it’s not impossible. Despite obstacles, Black entrepreneurs and founders continue to rise, create, and thrive in spaces that weren’t exactly built with them in mind.
That said, I think it’s crucial always to acknowledge the facts. As a Black founder and business owner, knowing how other Black entrepreneurs are thinking/feeling/navigating day-to-day challenges can help you:
- Recognize where Black founders and business owners are in their respective journeys
- Understand the ways in which Black founders and business owners are using emerging tools and technology
- Grow comfortable with your business growth and approach to navigating business ownership
To assist you with staying grounded in the reality of your journey, here are some statistics from Truist’s Q1 2024 Small Business Owners Survey that I think are especially worth noting:
- 32% of U.S. small business owners surveyed view AI as very/extremely important to their business
- 40% of U.S. small business owners who were surveyed are interested in using AI to increase productivity; 34% are interested in using AI to improve customer service experiences
- 59% of U.S. small businesses source materials and products internationally
- Only 48% of U.S. small business owners say their work-life balance is good or perfect
Take a peek at a few more statistics from the Center for Entrepreneurial Opportunity’s 2024 State of Black Business Report:
- 97% of U.S. Black-owned businesses have less than 20 employees
- 94% of U.S. Black businesses are located in an urban area (70% are located east of the Mississippi River, especially large concentrations of Black-owned businesses in the southeast)
- 48% of Black-owned businesses are less than two years old
- 71% of Black-owned business owners say more income was a “very important” reason for owning a business; 69% say wanting to be their own boss was another
Grants for Black-Owned Businesses
Grants for Black-owned businesses are notoriously perceived to be far and few. While it may feel discouraging at times to sift through countless resources and come up short, the key is knowing where to look — and when to look.
Many grants are seasonal, application-only, or promoted through specific networks and platforms, which means staying informed is half the battle. Nevertheless, I’ve got good news to share: there are organizations, foundations, and even corporations that are actively investing in Black entrepreneurs and intentionally working to close the racial wealth gap.
Personally, I think the best grants and funding resources are the hardest ones to find. Why? Because they’re tucked away in networks, industry circles, or lesser-known platforms that most people overlook, which means less competition and a better shot at securing the bag.
Still, I know scouring the internet for resources meant for you feels exhausting and never-ending. So, instead of crawling through Google for hours on end, browse through the list of nearly 20 Black-owned business-specific grants and funding sources I curated below:
1. Shea Moisture Grants
Shea Moisture offers $1M grants annually to small, Black-owned businesses across the health and beauty sector through several grant opportunities.
Each grant provides a funding award (between $10K and $100K), education, access to additional resources, and mentorship for Black entrepreneurs. Its primary grant programs are:
- The Brown Girl Jane Grant: This grant is for Black and women-owned beauty and wellness businesses in the U.S. Typically, its recipients get between $10K – $25K in funding. Applications open in Fall 2025, and you can apply here.
- The Next Black Millionaire Grant: This grant offers $100K, business development services, and retailer distribution support to black-owned businesses in the U.S. You can apply here.
- The Blueprint Grant: This grant is for Black women (aged 13 – 35) who are pushing boundaries across beauty and creative industries. Its recipients get $10K in grant funding and 1:1 mentoring support. You can apply here.
- Community Impact Grant: This grant offers $10K to newly established (at least one year old) Black-owned businesses. Businesses can also be nominated. You can apply here.
2. Hello Alice’s Democratizing the Friends & Family Round Grant
Hello Alice’s Democratizing the Friend & Family Round Grant aims to help women of color overcome the early-stage funding gap they often face.
The program offers $25,000 in grants and mentorship to 20 NYC-based female founders of color.
Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, the application due date has been March 3.
Eligibility: Applicants must identify as a woman of color and own a small business.
3. FedEx Small Business Grant Program
FedEx launched its annual Small Business Grant Contest in 2012 and has given approximately $1.5M in cash prizes since then.
![[alt text] a screenshot of the fedex small business grant “about” page](https://web-stil.info/wp-content/uploads/2025/04/grants-for-black-owned-businesses-12-20250404-6767279.webp)
There’s a $50K grand prize for one business and $20K for the nine others. Winners are also matched with a mentor and can receive $1K in print credit at FedEx.
Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on April 1, 2025.
Eligibility: Applicants must be 18 years of age or older, a legal resident of the United States, own a for-profit business that’s been operating for at least six months, and be current shipping customer with FedEx (using a FedEx shipping account number).
4. Ladies Who Launch
Ladies Who Launch (LWL) is a small business grant and mentorship program for women and non-binary small business owners in the consumer packaged goods (CPG) industry.
LWL aims to remove barriers to access that often prevent these groups from succeeding through $10K cash grants and 6th-month education and mentorship opportunities.
Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on March 31.
Eligibility: Applicants must identify as a woman and/or non-binary.
5. National Association for the Self-Employed Growth Grant
The National Association for the Self-Employed (NASE)’s Growth Grant offers its members business grants of up to $4K. The funds can be used however you see fit.
For example, you could use your NASE Growth Grant to pay for business growth operations, from marketing and hiring to expanding facilities.
Applications are accepted on a rolling basis, and will be reviewed the following quarter. For example, applications submitted in July, August, and September are reviewed in October. You must be a good-standing member for three months prior to applying, and you can apply for the next round here.
Deadline: Applications are reviewed quarterly (i.e., applications received between Jan. and Mar. are reviewed in April).
Eligibility: Applicants must be a NASE member to apply.
6. FedEx Entrepreneur Fund and Boost Camp Program
Hello Alice and the Global Entrepreneurship Network (GEN) joined forces to create the FedEx Entrepreneur Fund and Boost Camp Progra. The program provides 150 small business owners with a 12-week digital growth accelerator experience and an opportunity to receive $10K in funding.
Plus, selected participants for the FedEx Entrepreneur Fund and Boost Camp Program receive education, mentorship, access to expert-led sessions, and tons of other entrepreneurial growth-specific benefits.
Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on December 13.
Eligibility: Applicants must be entrepreneur who is the leading executive (i.e. Founder and/or President, CEO, CFO, COO, or any such other similar title) of a business that meets the below business criteria; and 18 years of age or older.
7. The Coalition to Back Black Businesses Grant
This private small business grant is a joint effort between corporations like American Express, ADP, AIG Foundation, Altice USA, Down, and the S&P Global Foundation.
Businesses that qualify will receive $5,000 in grants, mentorship, and training. Only a select number of entrepreneurs will be tapped for their $25,000 Enhancement Grants.
Deadline: Applications are closed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on September 6.
Eligibility: Applicants must identify as Black/African-American and own a small business.
8. Nike x Jordan Black Community Commitment Grant
Nike, Inc. and Jordan have partnered to offer institutional and grassroots organizations the Nike x Jordan Black Community Commitment Grant.
Since 2021, the Community Commitment Grant has supported organizations driving sustainable change in the fight against systemic racism and working to create more equitable futures for Black Americans.
This funding opportunity offers a one-year grant to selected awardees. Thus far, Nike and Jordan have committed $8.6M to both national and local organizations.
Deadline: Applications are closed; the next grant cycle deadline is to be announced. Check back here for 2025 updates.
Eligibility: Applicants be a part of a 501(c)(3) nonprofit organization that has been established since 2021 or prior with an annual operating budget between $100,000 to $3M. Its mission should align with one of grant’s key focus areas:
- Economic Justice
- Education
- Narrative Change
- Social Justice
Qualified applicants may apply once each year (if they have not received the grant before).
9. Joseph Beam Black Gay Men’s Wellness Grant
The Joseph Beam Black Gay Men’s Wellness Grant, offered and sustained by the Black Wellness Fund, is a grant funding opportunity designed for older Black gay men and folks in the health and wellness space.
Recipients of Joseph Beam Black Gay Men’s Wellness Grant receive $10,000; up to three winners are selected. Previous winners of this grant have been WalkGood LA (2023) and The F.I.N.D. Design (2023).
If you’re hesitating to apply for this funding opportunity, here’s a little advice: The nicher the grant, the more inclined you should be to submit an application. A niche grant does not equal a lost opportunity, so if you feel like your venture fits the bill, go for it with confidence — this could be the exact support you’ve been waiting for.
Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due on February 28.
Eligibility: Applicants must identify as gay, Black, and male. Applicants must also apply on behalf of an organization or collective that specifically holds space for:
- Wellness/mental health support groups
- Relationship-building events
- Wellness and healing projects for Black gay men ages 50+ living with HIV/AIDS
Fiscally-sponsored organizations are encouraged to apply as well.
10. Wish Local Empowerment Grant
The Wish Local Empowerment Grant, powered by Wish Local, provides Black entrepreneurs and founders with funding grants (between $500 and $2000) to help build/rebuild their small business.
The Wish Local Empowerment Grant is open to Black-owned businesses only; it’s even advised that grantees use the money they’re awarded to pay rent and operation costs, connect with customers (through events or IRL activations), and provide opportunities for advancement to the communities they serve.
Deadline: Applications are accepted on a rolling basis; folks can submit their application at any time here.
Eligibility: Applicants must be 18 years of age or older, identify as Black/African-American, own a business that’s earned an annual revenue of less than $1M, has 20 or fewer employees and a brick and mortar location. If selected for this grant, you’re required to join Wish Local.
11. Pathway to Opportunity Pitch Competition (formerly known as the National Black Business Pitch)
The Pathway to Opportunity Pitch Competition was made with small businesses in mind. It connects them with interested corporations seeking to expand their supply chain with innovative products and services.
Selected participants will receive cash prizes of up to $5,000. However, those selected to move on from the application phase will transition to a live pitch competition in which they’ll pitch in front of a virtual audience of corporate procurement professionals.
Deadline: The application due date is June 9, 2025.
Eligibility: Applicants must identify as African-American and own a small business within the United States.
12. Just Thrive Grant Program
The Justworks Professional Employer Organization (PEO) assists companies with Payroll, HR, and Compliance, along with access to health insurance, 401k, and more.
In partnership with The Well Work, JustWorks PEO offers one of two credits ($6,000 or $2,000) to eligible businesses that are at least 50% owned by a member of an underrepresented group or 501(c)(3) nonprofits focused on eradicating racism. Grant amounts depend on when your business was formed.
Deadline: Applications are accepted on a rolling basis; folks typically hear back within one business day.
Eligibility: Applicants must be a person of color and own a business with at least two employees OR have founded a nonprofit dedicated to antiracist work.
13. Ulta Beauty’s Muse Accelerator Grant/Program
The Ulta Beauty Muse Accelerator Grant/Program offers eight early-stage beauty brands the opportunity to grow and expand their growth toward retail readiness and business success.
The Muse Accelerator Grant/Program awards $50,000 to selected grantees to help accelerate their businesses; one grantee can receive an additional $10,000 in financial support. All participants will receive 10 weeks of training on how to set up their brand for long-term success and mentorship from Ulta Beauty Merchandising partners.
Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been due in June.
Eligibility: Applicants must identify as BIPOC, be at least 18 years old, and be a U.S. or Canadian citizen currently residing in the U.S. or Canada. Additionally, an applicant’s business must be registered in either country.
14. Black Ambition Prize
The Black Ambition Prize aims to fund bold ideas and help reduce barriers to capital for Black and Hispanic entrepreneurs. However, just like its founder, Pharrell Williams, the process for applying for and receiving the Black Ambition Prize can only be described with one word: Unconventional.
Once moved beyond the application round, selected applicants will compete for awards between $20,000 and $100,000. 150 – 200 semi-finalists will be chosen to participate in the Black Ambitionist mentorship program.
Underrepresented founders who decide to apply for the Black Ambition Prize will also receive support with marketing opportunities, graphic design support, and access to information sessions and webinars (before applying).
If you’re a Black business owner, I urge you to apply for this funding opportunity. It’s designed to feel like an experience, not a competition, which is, in my opinion, extremely rare to see/find in the grant funding landscape. While the pool is more significant than most funding opportunities, this unique reward is designed for anyone to apply.
Deadline: The application due date is May 2, 2025. Winners are announced in November 2025.
Eligibility: Applicants must be Black or Hispanic entrepreneurs and apply as a team (with at least two members). Additionally, all applicants must be building an early-stage venture across one of the five categories:
- Consumer Products and Services
- Healthcare
- Media and Entertainment
- Technology
- Artificial Intelligence (AI)
15. The Black Ambition HBCU Prize
Like the Black Ambition Prize, the Black Ambition HBCU Prize is for Black and Hispanic entrepreneurs from Historically Black Colleges and Universities (HBCUs).
The Black Ambition HBCU Prize is tiered and allows multiple teams to be selected for funding at different levels. However, eligible applicants can only apply to one of the two Black Ambition HBCU Prize tracks. More specifically, the Black Ambition HBCU Early Business track is for ventures that have raised no more than $1M in dilutive funding; these ventures can compete for up to $100,000 in funding.
This funding opportunity may be niche, but it’s for a reason. If you’re a former HBCU graduate/student turned entrepreneur, apply for this opportunity. I believe this grant exists for the HBCU community exclusively, so you won’t have to worry about navigating as large of a pool of candidates as you would for another funding opportunity.
Deadline: The application due date is May 2, 2025.
Eligibility: Applicants must be a Black or Brown undergraduate or graduate student (part-time or full-time), recent alumni (graduated within the last two years), or former student (attended in the last two years, within at least one year of course credits). Additionally,
16. Lenovo’s Evolve Small Grant
Lenovo’s Evolve Small Grant was designed to uplift minority, disabled, and women-owned small businesses.
Over the last four years, the Evolve Small Grant has supported 5,000+ businesses with 750+ hours of mentorship and over $3M in grant funding. Grant recipients receive a $25,000 grant, a customized AI technology package (valued at $10,000), and inclusion in the Goodie Nation and Chantel Cohen mentorship programs.
If you’re a Black business owner, I highly recommend applying for this grant, mainly because, quite frankly, new, free-of-cost technology and money are hard to come by. Even if this funding opportunity doesn’t check off every box, it’s worth giving yourself (and your business) a shot at getting the financial support you’ve always dreamed of.
Deadline: The application due date has passed; the next grant cycle deadline is to be announced. In previous years, they’ve been open from January 27 to February 17.
Eligibility: Applicants must have a small business, have an annual revenue of less than $7.5M, and have 75 or fewer employees. Additionally, an applicant’s business must be located in the following areas:
- Atlanta, GA
- Chicago, IL
- Dallas, TX
- Los Angeles, CA
- Miami, FL
- San Diego, CA
- Houston, TX
- Washington, D.C.
- Toronto, Ontario
17. Start.Pivot.Grow Micro-Grant
Start.Pivot.Grow is a national business acceleration program dedicated to supporting local businesses through delivering research-based, results-driven business education, technical assistance, and access-to-capital programs.
The $2,500 Start.Pivot.Grow Micro-Grant is offered quarterly and allows small businesses to use it in whatever capacity they see fit. Previous grantees have used it for utilities, commercial rent, professional development, and other essential business needs.
Deadline: The application due date is the last day of each quarter, typically on the 30 or 31 of the month.
Eligibility: Applicants must own a U.S.-based for-profit business that has been in operation for at least two years and has 1-2 employees, including the owner. Additionally, the applicant must have made an annual revenue of $50,000 or more.
Additional Resources for Black-Owned Business Owners
Grants aren’t the only way to get resources for your Black-owned business. Support can look like legal aid, networking opportunities, educational courses, financial assistance, discovering new tools that make building your venture easier — the list goes on.
Building and growing a business takes more than just capital; it requires access to knowledge, connections, and infrastructure that can help you make informed decisions and scale with intention.
Whether you’re just getting started or looking to get extra knowledge that’ll help you elevate your venture to new heights, the organizations I’ve listed below offer valuable support beyond just funding:
1. Start Small, Think Big Inc.
Start Small, Think Big Inc. is a 501(c)(3) nonprofit organization committed to advancing equity and inclusion in entrepreneurship through connecting minority-owned small businesses with the resources and community support they need to thrive.
Start Small, Think Big also offers free small business workshops and events as well as expert small business services, from finance services to legal assistance.
I think Start Small, Think Big is a great place to start if you’re seeking a knowledge base that:
- Helps you navigate the legal and financial foundations of running a business
- Offers actionable guidance through free workshops, events, and expert support
- Connects you with a community invested in inclusive, long-term business growth
2. Farm Aid
This nonprofit platform offers an annual grant program that funds family farms and rural service organizations. In 2022, Farm Aid assisted Black and other minority farmers and groups working to demand change for racial justice and social equity.
Farm Aid offers tons of several farmer-specific assistance, from Cultivemos, its Northeast-based network of farmers, service providers, mental health professionals and nonprofit workers, to its Farmer Resource Guides, designed for folks who are navigating challenges in agriculture, business planning, and farmer well-being.
3. Sales Hub
Sales Hub, a core product offering of HubSpot, offers small business owners the technological tools and integrations they need to:
- Streamline sales processes
- Manage customer relationships more effectively
- Drive consistent business growth
![] a screenshot of the hubspot sales hub software info page](https://web-stil.info/wp-content/uploads/2025/04/grants-for-black-owned-businesses-30-20250404-6576003.webp)
[alt text] a screenshot of the hubspot sales hub software info page
I think Sales Hub is a great beginner software for any business owner who wants to get organized, save time, and build better relationships with their clientele — all without needing crazy amounts of training on every single feature.
If this sounds like you, I recommend looking into what Sales Hub can do for your business venture.
4. Venturize
Venturize, powered by the Small Business Majority, supports founders with the unbiased advice, business growth essentials, and workplace benefits guidance they need to start, run, and grow their businesses on their own terms.
I think Venturize is a great place to start if you’re seeking a knowledge base that:
- Breaks down complex topics
- Empowers your informed decisions
- Meets you at every stage of your entrepreneurial journey
5. SCORE
Completely run by a network of volunteers, SCORE has provided resources like education and mentorship to small business owners since 1964. Additionally, SCORE offers free templates, and online events to founders looking to broaden their knowledge in business planning, marketing, finance, and more.
[alt text] a screenshot of the SCORE employee to entrepreneur resource hub site page with a poto of a south asian woman holding her product in-store
We Need More Black Businesses, So Start Yours
The truth is … the barriers to Black business ownership are real — but so is your potential.
Despite the challenges, Black entrepreneurs continue to build, create, and innovate in ways that shape industries and uplift communities. That’s why it’s not just important that you start your business — it’s necessary. We need your ideas, your leadership, and your vision out in the world.
So, know this: your journey matters, and there’s a growing ecosystem of support ready to back you. So don’t wait. Start your business, grow it, and own your power every step of the way. The future of Black business starts with bold moves like yours.
Editor’s note: This post was originally published in February 2021 and has been updated for comprehensiveness.
