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August 26 Recovering From (and Avoiding) BurnoutAccording to today's featured article from BusinessWeek Small Business, "Burnout" is defined as, "a reaction to constant, relentless, day-in, day-out stress, the kind that starts as soon you get up in the morning and doesn't stop until you put your head on the pillow—and probably not even then. "It's a psychological syndrome that occurs in response to chronic stress in the work environment..." So, how can you diagnose whether or not you are suffering from burnout? Per the featured piece, some of the symptoms include: (i) exhaustion—a fatigue you just can't kick (much more to it than being tired); (ii) loss of enthusiasm for your work; (iii) a loss of faith in your abilities; (iv) short-temperedness and overreaction; and (v) you may start making more mistakes than usual or allow things to fall through the cracks. Any of these sound familiar? My answer: a resounding "YES!!"
According to the BusinessWeek piece, if your level of burnout is high, there is a strong likelihood that you may become physically sick or worse, become clinical depressed ("characterized by a general feeling of hopelessness, trouble sleeping, and eating too much or too little.") So, how can you combat the burnout blues? Work even harder in the 1980s mode of "no pain no gain"? Answer: NO. What you need to do is work less; and, if you can, take time off on a regular basis to recharge. Let's not forget that stress results in the damaging "fight or flight" andrenaline rush in your body. Exercise uses up this extra adrenaline. So, try to get in some exercise daily. Next, take some time to find out your passion and work toward pursuing it. Finally, to ensure that the burnout does not recur, find out the cause of the stress in your life and eliminate it. Yes, this might be extremely difficult but it is necessary.
For me, trying to counteract burnout is a daily exercise in self-disciple but I've actually put together a list of non-pharmaceutical ways to beat the stress. I would say it works 90% of the time. So,why am I still suffering from burnout? Well, that's because I do not yet have the courage to eliminate the stress causing factors in my life. But I'll do what I need to do soon.
And so should you. First step? Read the featured article and start making your own burnout busting plan of action.
BWSmallBiz -- Managing August 7, 2009
Beat BurnoutRecognizing the signs and taking action can save your sanity and your businessBy Ann Field A little bit of stress can be a productivity booster, an extra push to help rev up your performance. Then there's the acute short-term strain that can be caused by anything from a family emergency to unexpectedly having to make a major presentation. Burnout is different. It's a reaction to constant, relentless, day-in, day-out stress, the kind that starts as soon you get up in the morning and doesn't stop until you put your head on the pillow—and probably not even then. "It's a psychological syndrome that occurs in response to chronic stress in the work environment," says Christina Maslach, a pioneering researcher in burnout and a professor of psychology at the University of California at Berkeley. Business owners, who typically work nonstop, juggling many balls at once, may be more susceptible than many others, says Michael Leiter, a professor of psychology at Acadia University in Nova Scotia and an expert on burnout. "Most entrepreneurs experience a bout of burnout at some point in their careers," says Leiter. And a bad economy can make the day-in, day-out pressures of running a business even worse. That's why it's imperative for small business owners to understand what burnout is and how to deal with it. The signs are not that hard to recognize, but it's important not to confuse them with symptoms of other conditions, such as depression. If you're burned out, you first need to find a way to reenergize yourself. It can be a bit trickier to diagnose the underlying cause of your burnout and devise an effective response. Here's how to get started. August 17 A Standard $1,500 Deduction For Home Offices?Yeah, I know, these days there doesn't seem to be much to give small business owners hope. News reports say there are signs of recovery but we have yet to see any confirmation of this on our bottom line.
There are, however, some signs that this bad economy might lead to even more positive changes in the tax code. According to today's featured article from CNN Small Business, there is a bill circulating in Congress that would allow the owners of home businesses ("nearly half of America's firms") to opt for a standard $1,500 deduction for their expenses. Anyone who has calculated this deductions based on "measuring the office as a percentage of home size and multiplying relevant expenses by that fraction" will understand why most business owners find it easier to bypass this process and forego any associated tax benefits.
Well, according to the featured article this new standard $1,500 deduction for home offices is gaining support in Congress. So, full steam ahead people - it's time to contact your representatives!
A bill circulating through Congress aims to ease the process of writing off expenses for a home office.
By Ian Mount
August 14, 2009: 1:32 PM ET
The deduction process -- which involves measuring the office as a percentage of home size and multiplying relevant expenses by that fraction -- is just too complicated, the survey found.
To ease the process, Reps. John McHug, R-N.Y., and Kurt Schrader, D-Ore., introduced the Home Office Deduction Simplification Act last spring. The bill would create a standard $1,500 deduction, which owners could opt for over the messier version. It would translate into a tax savings of about $500 for those who aren't currently taking the deduction, says Keith Hall, tax adviser for the National Association for the Self-Employed. August 11 Obama's Small Biz Report CardI'm BACK!! What a month it has been! Let's hope I don't find myself in a similar position anytime soon...
Today's featured article comes from CNN SmallBusiness and it focuses on the steps the President Obama has undertaken to assist the small business community. Though the author does not provide letter grades (A, B, C, etc.), she does a pretty good job of comparing and contrasting the steps the President has taken versus the promises he made. In so doing, the author focuses on the issues that are of deepest concern to small business owners. These include: (i) the credit crunch; (ii) health care; (iii) taxes; and (iv) job loss.
It is clear that this economy is still in a deep recession. However, the President did campaign on "Change" and since inauguration, he has taken some steps to alleviate some of the problems small businesses are facing. Now that we are six months into his presidency, we can now judge the effectiveness of the President's policies.
Credit Crunch: the President promised a bailout of "Main Street" and though the stimulus bill provided incentives for banks to issue loans to small businesses (See February 18th post), banks are still wary of participating in these government programs because, despite the government guarantee, they "still see small business loans as a huge risk."
Health Care: The President promised to diminish health care costs by providing a 50% tax credit on health care premiums paid by small businesses. However, healthcare is still being hotly debated in Congress with multiple bills in the house and the senate. As such we cannot make a determination as to whether or not the President is following through on his promise until we have a clearer picture of the final health care bill.
Taxes: the President promised not to raise taxes on small businesses that make under $250,000 per year. So far, it seems that he is following through on his promise. The stimulus bill provided tax breaks (by allowing businesses to carryback losses for five years). The President also froze the 2009 estate tax at 45%. However, unless Congress intervenes, the Bush estate tax will expire in 2010 and will revert to 55% in 2011.
Job Losses: The President planned to extend credit and reduce taxes to small businesses in an attempt to encourage job creation. However, given the banks' reticence to extend loans, small businesses do not have the access to credit they need for growth. As such, there is very little job creation going on at the present time. On the brighter side, reports do show a slow down in the rate of job loss - partially due to companies that benefitted from government contracts issued under the stimulus plan.
So yes, the economic outlook is still very grim. And, many days it seems as if things are not changing - but they are. These first steps are miniscule but at least they show that we are finally moving in the right direction.
Small biz promises: Where Obama standsPresident Obama has pledged to help Main Street where it is hurting the most. Here's a look at where he's followed through -- and where he hasn't.Aug 07 2009 By Emily Maltby July 10 Overview of the Kennedy-Dodd Public Healthcare PlanYes, I am still EXTREMELY busy. However, after I discovered today's featured article from BusinessWeek, I knew I had to take the time to write this post.
As I stated in my April 14th post, I am passionate about healthcare reform. I think it's safe to say that most Americans agree that we need to find a way to reign in the prohibitively high cost of premiums individuals and businesses face. Despite the national consensus regarding the need for reform, there is a big divide over whether or not it should include a government-controlled health insurance agency a.k.a. the "public option". The detractors of the "public option" fear that the private insurance companies would not be able to successfully compete with the government (because of the government's access to unlimited funds). Further, there are additional concerns regarding goverment in the role of government in the doctor-patient relationship, reduction in the quality of health care that provided, the increase in deficit spending if the "public option" was enacted and fear that most employers would use the public option (insead of using private heath insurance) to provide heathcare for workers.
Though there a few proposals floating around, the featured article focuses on the healthcare plan co-sponsored by Senators Kennedy and Dodd. Though this plan includes a "public option" it will cost less than $600 billion and would cover 97% of Americans. ("By contrast, an earlier, incomplete proposal carried a price tag of roughly $1 trillion and would have left millions uninsured..."). The author of the featured article also offered insight into how this plan would work via comparison with the government mandated health insurance plan currently in place in the Commonwealth of Massachusets. (See April 14th post an overview of the Massacushtts plan).
I know that closely monitoring health reform is not at the top of your agenda at the moment. But, we should not be short-sighted about this. You and I both know that the annual double-digit percentage increase in healthcare premium is unsustainble. How can business people turn a profit when this expense is so incredibly high? So please, take a stand. Now is the time to make your voices heard. I know that I will do everything in my power to see change in this area. I am encoraging you to join me in this effort.
New Dem health plan has public option, lower costBy DAVID ESPO, The Associated Press July 2, 2009, 12:29AM ET The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee. The AP obtained a copy. By contrast, an earlier, incomplete proposal carried a price tag of roughly $1 trillion and would have left millions uninsured, CBO analysts said in mid-June. July 07 Simple Steps To Ensure That Your LLC's Creditors Do Not Get Access To Your Personal AssetsYeah - Still Busy With The "Day Job". Actually, I will be making minimal posts for the rest of July. Hopefully, August will be a little slower.
Today's post features an article from BusinessWeek that show you the many ways in which your LLC's creditors may get access to your personal assets despite limited liability protection. Under a regular "C" corp this would be called "piercing the corporate veil". I first learned of this concept when I was working as a summer associate at a national law firm as a law student. Our client was in the process of changing its legal structure and wanted to be aware of the steps it needs to take to ensure that creditors could never get access to the owners' personal assets. So, it was my job to research the reasons why courts sometime smash through the corporate veil of limited liabiity.
A review of the featured BusinessWeek articles show that the rules pertaining to LLCs are almost carbon copy of those for "C" corps. Courts may allow creditors access to your personal assets if you do not treat the "LLC as a separate entity" - i.e. you have been "treating [it] as an extension of [your] personal affairs." To avoid this, do not undertake the following:
Yes, this information is common knowledge, but it cannot hurt to take a moment for a quick refresher. Remember, as my June 16th post shows, creditors are extremely desperate and are now willing to use whatever leverage they have to get paid. Now that we know they are willing to put business loans on our personal credit report, we cannot give them any other reason to go after our other personal assets. As such, I'm advising you to take the time to read today's featured article - given everything that is at stake, I would say it's well worth your while.
Who Pays a Failed LLC's Debts?In theory, if a limited-liability company cannot pay up, then landlords and other creditors cannot come after the owners' personal assetsSmart Answers June 30, 2009, 9:39AM EST By Karen E. Klein Entirely Separate"The most important factor in ensuring liability protection is to treat the LLC as a separate entity. If a court feels that the owners have been treating the LLC as an extension of their personal affairs, then the court will often find that the LLC never really existed and that the owners were doing business as individuals. In that case, the court may find that, despite the fact that an LLC was in place, the individual owners are personally liable for the LLC's debts," Rahlfs says. June 30 Get Exposure; Improve SalesSTILL BUSY WITH THE DAY JOB!!!
I know, I owe you all a few posts, but apparently, just as everyone is slowing down for the summer, my life is speeding up! To make up, I've decided to feature 2 articles from Small Biz Trends on Marketing. Hopefully, I'll get back on track with more frequents posts soon.
FEATURED ARTICLE 1
This first featured article is one of the most interesting pieces I've read in a while. It provides insight into the psychology of selling. To be honest, it reminds me of the many debates I've had with my Dad on this topic. He believes you should first find out what your target audience's needs are and try to meet them. I believe you should first decide what you want to do then figure out how to "sell" your audience on the idea by showing them how your product service can fit in their lifestyles. The author's verdict: Dad wins; I lose.
This piece shows how my Dad's aproach, by being the "path of least resistance", will almost always lead to success. Am I convinced? It's possible. Note, however, that either strategy can only succeed if is based on solid market research. So, remember to take the time to do this.
Sales: It’s About Them, Not You Posted By Diane Helbig On June 28, 2009 In Small Business Advice So you have a product or service that you think is the greatest thing yet. You believe that people should really want it. And they will as long as you do a good job of explaining why. You think that sales is persuading and convincing. Sales is really about matching your product or service with someone else’s needs. It’s not about trying to fit your product or service into their world, or about convincing them that they should have your product or service. I see too many salespeople and small business owners who have this backwards. They think they are supposed to ‘sell’ their product/service...That can be a costly mistake. FEATURED ARTICLE 2
This second featured piece relates to using the media to increase exposure for yourself and your venture. It provides advice how you can establish yourself as an expert in your field by:
"1. Write a comment or rebuttal whenever you see an article regarding your industry or a situation that impacts on your business.
2. Contact television and cable news producers with timely information that makes you their only choice for an interview.
3. Speak at trade and public events where your topic attracts many who attend and on-site sales."
I personally think that the extroverts among us should really give serious thought to utilizing this approach.
How to Become the Center of Everyone’s Attention Posted By Shirley Frazier On June 29, 2009 In Marketing Tips It’s easy to watch someone else get all the glory. All you have to do is stand and listen. But if you’re an entrepreneur who craves media attention, you may ask yourself, “Why isn’t that me in front of the camera?” Molding your business into an industry and media darling takes time and planning. If you truly want free publicity, it’s up to you to start and maintain the process of becoming an industry leader. Here are three painless steps to begin. June 24 Is The President Fulfilling Your Expectations?So, once again the day job is intruding on my ability to post as frequently as I'd like BUT
I couldn't resist posting this article from BusinessWeek that discusses the results of a poll of small business owners conducted earlier this year. The questions were centered around entrepreneurs' reaction to the President's policies relating to:
Again, I don't have time to go into much detail but I really thought the responses were really interesting and it also allows you to view the president's policies from different perspectives - and that's always a good thing. NB: That this is a second in a two part series by this author. If you follow the link to the "first column" in the Editor's Note, you will get more information regarding the credit crunch and the details of the poll discussed. What Small Business Owners Want from ObamaAn end to the credit crunch, less talk of tax increases, and health-care reform without coverage mandates top entrepreneurs' listsSmart Answers June 23, 2009 Editor's note: This is the second of a two-part series about small business owners' reactions to the Obama Administration's policies. The first column and its accompanying slide show were published on June 19. Along with resentment about billions in government bailouts to large corporations deemed too big to fail, the issues most commonly mentioned as troubling for small business owners as they contemplate life under the new Obama Administration are the persistent credit crunch, the Administration's plans for health-care reform, and the possibility of tax increases on top-tier income brackets, experts say. June 18 Google Dashboard and YouFirst, let me start with my often-repeated caveat - I know very little about technology so it is really important for you to take the time to read the tech-focused articles I feature before forming an impression about the usefulness of the content. That being said, I am really excited about today's featured piece from Small Biz Trends. It discusses a new service Google is offering to small businesses called "Google Dashboard".
Quoting from the Small Biz Trends article, "this customized dashboard [will reveal]... stats like how often people visit your site, your top search queries, how many times people asked for driving directions and the cities the people who ask are from." After reading this description, it still was not totally clear to me how these stats could be helpful in any useful way to small business owners. After watching the youtube video describing this new "dashboard" feature, however, I must admit that I am impressed. (See the video presentation embedded below).
Note, however, that this dashboard feature is only available to customers who sign up to Google's Local Business Center (don't worry it's free and it takes as much time as signing up for an email account). In addition, there is a concern that Google "will probably mine the information SMB owners offer up to for the dashboards to serve them better ads in the future." Despite these potential drawbacks, the author of the featured article believes you should go ahead and sign up anyway as the benefits outweigh the costs. Personally, I also think it's a pretty amazing tool - but I'm always a sucker for new technology. I will, however, advise you to watch the video and read the featured article before deciding whether or not this move is right for your business.
Google Offers Free Business Dashboard for SMBs Posted By Lisa Barone On June 17, 2009 @ 9:00 am In Small Business Advice The dashboards offered by Google give businesses a quick lesson in Google Analytics without overwhelming them with too much information. They provide a small amount of strong analytical data to help people understand what is happening on their site and which queries are bringing them traffic. Knowing what queries searchers are using (or are not using) to find your Web site, and which zip codes they’re from, is valuable information for anyone thinking of starting a local paid search campaign. This data can very easily be used to create targeted ads that hone in on a very small group of searchers to help you maximize your ad budget and not waste dollars on frivolous clicks. If empty traffic is one reason why SMB owners have been reluctant to adopt local search, this helps solves that. June 16 Watch Out! Business Loans Are Now Showing Up On Your Personal Credit ReportIn law school we are taugh that a "C" corporation is a legal entity onto itself; i.e. as far as the law is concerned, it's like a person. It is totally separate from its owners and can have it's own assets and liabities. In a C corp., the owners can only lose their invesment in the company - their personal assets are totally protected. (This is called "limited liability"). Sole proprietorships and partnerships, on the other hand, are inextricably linked to their owners. Though they can have assets, liabilities, etc. like the typical C corp., the owners' personal assets are also at stake in every transaction. Despite this drawback, in the past, many business people (especially small business owners) chose the sole proprietorship / partnership model over the C corp because they wanted to avoid "double taxation". This is because, as a separate legal entity, the C corp. has to pay its taxes just like you and me. Any remaining profits that is distributed to the shareholders (owners) is also taxed a second time when these individuals file their personal income taxes. For sole proprietorships / partnerships, distributed earnings pass through the entity and are only taxed once upon - on the personal level.
So why the boring legal/tax back story? Well, I wanted to give you some insight into the motivation behind the decision to establish the Limited Liability Company ("LLC"). The government wanted to give business owners (mostly small business entrepreneurs) the benefit of limited liability (of a C corp.) along with the option of the pass through taxation (of the sole proprietorship / partnership). That means an LLC, like a "C" corp. is a legal entity in its own right - separate from its owners. Similarly, the only thing that should be on the line is the owners' investment in the company NOT their personal assets.
As such, imagine my surprise when I read today's featured article from BusinesWeek describing Capital One's decion to report business loans on the owners' personal credit reports?! From a lawyer's point of view, one can see how that would be legal with sole proprietorships or partnerships but seeing that an LLC is a separate legal entity, shouldn't it be off limits? Apparently not. Now, let's be clear, the article did state that so far this only affects business loans where the owners acted as personal guarantors. In addition, the author emphasized that this is still an extremely rare practice in the industry; actually, so far, it seems as if Capital One is the only perpetrator.
While this is relative good news, with mounting default rates other banks may decide to engage in similar measures. As such, I am advising you to take active steps to inquire about your lenders' policies and don't forget to read those notices they send out ever so often. Yes, the print is barely legible but invest in a magnifying glass. Your credit rating is an asset that is worth its weight in gold in these economically depressed times. You have to do everything in your power to protect it.
Small Business Financing June 12, 2009
When Your Business Loan Affects Your Personal CreditSmall business debt hasn't traditionally been reported to consumer credit bureaus, but the rules of the game are changingBy John Tozzi The third sentence in the letter Gary Kerr received earlier this month about his $50,000 loan from Capital One (COF) surprised him: "We'll begin reporting your loan status to business and consumer credit bureaus from July 15, 2009." In more than 20 years as an entrepreneur, Kerr says business loans had never affected his personal credit score. Small business borrowing is generally not reported on owners' consumer credit reports unless they fail to pay on time. But with banks facing rising defaults, at least one lender is moving to add small business loans to borrowers' consumer credit files, meaning small business owners could soon find that their business debts are affecting their personal credit. Any debt that owners personally guarantee—including many business loans and credit cards—could be reported. June 11 Social Networking Cheat SheetBack on January 30th, I encouraged you to capitalize on the social networking craze by signing up for Facebook, LinkedIn and Twitter. I continued to promote the use of these sites in subsequent posts. (including my last technology-oriented blogpost titled, Implementing An Effective Marketing Strategy Online). However, as I have stated in all of these blog entries, I am not an expert in this area (I didn't even know about Facebook until last November!). As such, I was very happy to run across today's featured article from Forbes Small Business that highlights the pros and cons of the different social networking tools that are currently available.
According to the author, the featured piece provides a "breakdown of the complex world of social networking, beginning with separating external and internal applications, depending on whether the connections occur inside or outside your company." After providing a summary of the internal and external appliations, the author went on the describe the varios social networking functions (which include blogs, microblogs like Twitter, discussion forums, Wikis, etc.) and the advantages and disadvantage sassociated with each. Finally, the author provided a list of Do's and Don'ts to follow when implementing a social netorking strategy.
Given my very limited knowledge of technology, I will not elaborate further. But please, don't let my technological illiteracy deter you from checking out this piece for yourself. Though it has been six months since I joined Facebook, I'm still constantly amazed by this application's ability to bring people together. I have even been using it to promote this blog! Also, it is important to note that the featured article is clear and concise. As such, it is an easy read and I believe it will make an excellent blueprint for those who are still lost in the social networking wilderness. As always, print and review the piece, develop a social networking strategy, then get started on the implementation process! Good Luck!
Frederic Paul, 06.05.09, 12:08 PM ET
Next to mobility and cloud computing, social networking was the talk of Interop this year--especially at a conference session devoted to social software tools and a portion of the Unconference, where real SMB users talked about how to make the most of it. But perhaps the best thing I learned about social media came in a meeting with security vendor ESET. Just as at a recent Intuit town hall where I discovered Social NOT-working, at Interop, ESET director of marketing Liz Fraumann shared the abbreviation for Social Media as "So Me." Perfect, isn't it? Anyway, Social Software Tools: A Critical Evaluation offered useful insight into the choices SMBs need to make when moving into social networking. Tony Byrne, founder of CMS Watch, started with a useful breakdown of the complex world of social networking, beginning with separating external and internal applications, depending on whether the connections occur inside or outside your company. June 09 Loan Guidelines For Small Biz Emergency LoansBack on May 8th, I featued an article that gave an overview of the Small Business Emergency Loan (aka "America's Recovery Capital" or "ARC") that was authorized under the economic stimulus bill enacted earlier this year. On May 19th, I featured a follow up article regarding the availability of these loans on June 15th. Well, thanks to CNN Money - Small Business, I am able to feature a piece that gives a relatively detailed summary of the SBA guidelines for these loans. Though I would normally give synipsis of the featured article in my post, I am quite limited on time. So, for those of you interested in applying for one of these loans, this piece is a MUST read. Good Luck!
Government readies emergency small biz loansStarting next week, struggling companies will be able to apply for up to $35,000 in debt-relief loans through a new stimulus program.By Emily Maltby, CNNMoney.com staff writer
Last Updated: June 8, 2009: 6:13 PM ET
NEW YORK (CNNMoney.com) -- One week before its emergency loan program is slated to launch, the Small Business Administration issued guidelines for banks and borrowers on how the new loans will work. Called "America's Recovery Capital," ARC loans are designed to make up to $35,000 available to struggling small business owners to temporarily help them keep up with payments on existing loans, including credit card debt. Authorized as part of February's stimulus bill, the program has been under development for four months. Many banks were waiting for the SBA's procedural guidance, released Monday, before deciding whether or not to participate. Here's a primer on how the emergency loans will work. June 05 Using Customer Testimonials To Help Market Your BusinessIt seems as if I don't buy anything these days without first reading customer testimonials on the internet. Don't get me wrong, I've always been an extremely conscientous shopper. But before, I would only rely on expert opinions to guide me when making major purchase. However, after a while, I realized that my experience with the product / service was usually completely different from that of the experts. Seriously, I cannot tell you how many times I've had to sleep in subpar hotel rooms that received glowing endorsements from travel books like Fodors or Frommers. The same can be said for my experience with products that were recommended by Consumer Reports.
As such, I now rely on customer reviews to give me the inside scoop on the product or service. According to today's featured article from Small Business Trends, "Customer testimonials help establish trust because they come from someone who has direct experience with your product....They believe that the average person is “like them” and isn’t offering the recommendation with an ulterior motive, which is what makes them incredibly powerful." Let's not forget that their reviews are usually spot on.
Given all of this, small business owners should use positive customer testimonials to help them market their businesses. The question is, how does one go about doing this? This is where today's featured piece comes in - the author discusses five ways to get the reviews without annoying your customers. The plan of action allows you to get access to your clients through the following means: (i) Company Emailings, (ii) Order Confirmations/Follow Ups, (iii) Create an Event Around It, (iv) Offer Incentives At Checkout, (v) Challenge Them To Create Their Own. Based on the information provided in the featured article, these are all low cost solutions that are very easy to implement.
So, read the featured article, develop your own plan of action and start gathering those testimonials! Just remember, that this project is NOT time consuming; and it is almost certain that these positive customer reviews will give you an edge over your competition.
How to Solicit Testimonials Without Being Annoying Posted By Lisa Barone On June 4, 2009 @ 9:00 am In Small Business Advice I mentioned yesterday how powerful customer testimonials can be as a method of [2] establishing Web site trust and credibility. But how do you ask for them without sounding needy, annoying or flat out driving people away? The truth is, it’s really not that hard. Happy people like sharing their experiences. They like being part of something exciting and cool. Sometimes they just need to be reminded to say something. We’re the ones that typically make it awkward.
Customer testimonials help establish trust because they come from someone who has direct experience with your product. Thanks to the heavy hands of marketers, consumers place more trust in testimonials than they do in most other marketing messages. They believe that the average person is “like them” and isn’t offering the recommendation with an ulterior motive, which is what makes them incredibly powerful. Asking your customers to submit a testimonial to your Web site doesn’t have to be a painful process. In fact, you should be working several natural ways into everyday business. June 02 Avoiding The Seven Deadly Sins That Affect Small Biz OwnersAlmost everybody in western culture (especially those of us who are christians) are familiar with the seven deadly sins. You know, lust, gluttony, greed, sloth, wrath, envy and pride. Well, according to today's featured article from CNN Small Business, there are seven deadly sins that primarily affect small business owners. They are as follows:
1) Sloppy accounting
2) Unrealistic pricing
3) Naive hiring
4) Fear of firing
5) Lack of standards
6) Lack of controls
7) Poor branding
As you know, this blog focuses on providing actionable solutions to you. Sometimes, however, we need that "mirror piece" that gives us a reflection of the effects of our bad habits. Personally, I know I'm guilty of sins # 4 and 5 (fear of firing and lack of controls, respectively). I know it's not pretty, but to find solutions, we first have to accept and acknowledge the problems.
So take a quick look at the featured piece. Yeah, I know it's written in that slide show format that can be annoying, but trust me, it's worth your while.
Seven deadly sinsFrom sloppy accounting to poor hiring, here are the business-killing traps that every entrepreneur must avoid.
SLOPPY ACCOUNTING Done properly, accounting is a diagnosis of everything that's right and wrong with your company. You should be able to complete a pro forma income statement at the beginning of the year that shows your recipe for making money. Crucially, you need to understand the ratio of sales to expenses that will result in profitability. You want to be able to say, "This business needs to gross $800K for me to have a $100K profit," as opposed to merely saying, "I hope I can make $100K one day." May 28 Survivial Through DiversificationDiversification - it's a concept that's based on old-school common sense: can't we all remember our mothers and/or grandmothers advising us against "putting all of our eggs in one basket"? This advice, is of course, rooted in the belief that we minimize our probability of loss if we spread our assets across areas that have different (and oftentimes counter-balancing) exposure to risk.
Recently, however, we've seen the limitations of diversification in the finance industry (apparently it doesn't work as well when the system is dogged by corruption). For those who have seen their savings disappear in front of their eyes, there might be some reservation about putting your faith here again. As our featured article from Small Business Trends show, however, many small business owners are finding success in the pragmatism surrounding this concept. As such, these business owners (instead of being rooted to their existing product / service lines or "the way they've always done things") are stepping back and taking a fresh look at ways in which they can provide "value" to customers. In essence, they are giving serious thought to how they can "adapt [their] process to open up another potential client pool?"
As you can imagine, the featured article highlights small business owners who were able to successfully do just that. To see diversification in action, however, you need to look no further than your local Target store. Target built its reputation by being a higher-end version of Walmart. However, with the economic downturn, they understand that their customers would not have as much disposable income to spend on a lot of their existing wares. Their solution: open a dollar store section that provided similar high-end quality for the low, low price of $1 to $2. Next, use economic principles like economies of scale to provide non-perishable household goods and groceries for 66% of the price charged in the normal supermarkets and pharmacies. As such, Target is in the process of diversifying into product lines that provide for their customers' day-to-day needs.
It is understandable if, after years of seeing our business through a certain light, we eventually develop tunnel vision. But, read the featured article - you'll be surprised as the creativity of some of these business owners. Hopefully, these stories will give you the inspiration you need to apply diversification (and potentially profitable) principles to your own going concern.
Posted By Diane Helbig On May 27, 2009 @ 3:06 am In Retail Trends, Small Business Advice The companies that seek out different market segments are the ones that will survive this environment. How do they do it? They look at their product or service and then at their current client/market base. Then they take a step back and ask - Is there another segment that could use my product or service? Can I adapt my process to open up another potential client pool? According to a May 4, 2009 [1] article in Crain’s Cleveland Business, companies like Wright Tool Company are exploring different market segments like advanced energy and medical technology. Retail locations like Next Energy Store of Kirtland, Ohio are looking for new products to sell. These companies are looking for ways to continue to provide value. When their current prospect base started to dwindle they stepped outside of their situation and considered alternatives. They got creative and found other markets to prospect in; they found new prospects. May 26 Implementing An Effective Marketing Strategy OnlineBack on January 30th, I wrote a post titled, Optimizing Your Website to Increase Sales. One of the articles I featured in that post was from CNNMoney wherein,the author helped a brick and mortar retailer "make the transition online". In responding to her plea that she is averaging only one sale per month on her website, the author advised her to totally overhaul her web presence. As such, they redeveloped her website to make it more appealing and buyer-friendly; next came the advice about search engine optimization and marketing; and finally, she was told to also told to start a blog to keep her site updated and her clientele informed.
Today's featured article from Small Biz Trends builds on the January 30th post by proving a simple, but more detailed, primer on search engine marketing for small business owners. The information in the featured piece was based on a webinar from Anita Campbell about the five ways in which small business owners can increase their web presence. The headings for the information discussed were: (i) starting with a solid home base, (ii) getting found in search engines naturally, (iii) increasing findability offline, (iv) amplifying your online presence with social media, and (v) knowing when to bring in a professional. After reading this piece, I can honestly say the information provided in this article is common-sense practical advice that just about anyone can implement.
As business people, we all know that there is no point in investing in a great product or service if no one knows it is there. In this information age, many of us are not tech-savvy enough develop a formidable presence on the web. That is why articles like the one featured today are so important - they give us everything we need to imlement an effective marketing strategy online. And, as successful business people understand - marketing is key.
A SMB Owners Intro To Search Engine Marketing Posted By Lisa Barone On May 26, 2009 In Small Business Advice You’ve heard it a million times: The Web has leveled the playing field for small businesses. Great. But what does that mean. The Web is intimidating. How does someone take advantage of that new playing field? Where do you start and how do you get the most bang for your buck?
Last week, [2] Anita Campbell was kind enough to take part in Verizon’s Small Business series webinar and shed light on some of these questions, giving small business owners five ways to increase their Web presence. Got a pen? May 21 Success For Small Businesses in 2008!Hello! I am still in the middle of a my break (I'll have regular blog posts starting the Tuesday after Memorial Day) but I couldn't resist posting this bit of good news.
I always knew small business owners had gumption, but a look at today's featured post highlight's this. It shows that, despite a terrible economy in 2008, most small business owners either had a profit or broke even! Think about it, small business owners, in effect, out-performed the larger corporations (many of whom had severe losses or went bankrupt).
But we cannot rest on our laurels; despite our amazing abilities, there are some things that are outside of our control - like a devastating economy. That is why we have to "keep our ear to the ground" and take advantage of all the resources that we have available to us. However, while we will continue to work hard, a little inspiration is always helpful in pushing us forward. Enjoy!
Small Business Succeeding Despite Economic DownturnEntrepreneurs Blog, From Scott Allen, for About.comWednesday May 20, 2009
A recently released survey of 1,000 small business owners by the University of Maryland and Network Solutions found that small businesses are succeeding in spite of the troubled economy.
May 19 Small Biz Emergency Loans Available in JuneHello! I am still in the middle of a much needed two week break (I'll have regular blog posts starting the Tuesday after Memorial Day). However, I had to post this follow-up to my last post on the small business emergency loan.
In my May 8th post, I featured an article from CNNSmall Business that provided detailed information on the small business emergency loan that the government is providing to small businesses to cover short term cash shortfall caused by the economic downturn. Quoting from the May 8th post, the small business emergency loan (aka "America's Recovery Capital" or "ARC") has a limit of "$35,000 and you don't have to worry about making payments for an entire year. In addition, "businesses will have up to 5 years to fully repay them." As the goal of this loan is to help you pay off outstanding debts, you might be wondering what qualifies? Well, according to the piece, a Congressional staffer is quoted as saying,"[p]rivate loans made for any legitimate business purpose -- including credit card debts, bank loans and real-estate loans -- would be eligible for the program.""
Though these ARC loans were authorized in the February Stimulus Bill, there has been delay in making the much needed cash available to small business owners. Well, good news! Per today's featured article from CNNSmall Business, the Small Business Administration ("SBA"), "plans to release guidance to banks by June 8 and will be ready to accept lender loan packages by June 15. Business owners will need to apply directly to banks for the loans, but the SBA will offer those banks a 100% guarantee on the ARC loans they make."
Now that you will soon be able to apply for these small business emergency loans, preparation is key. As such, read the article, find out the loan guidelines from your local SBA, and start putting your paper work in order. As the article states, even with all the government incentives, banks are still wary of making loans to small business owners. As the saying goes, "the early bird gets the worm". Seeing that one can anticipate that there will be high demand for the ARC loans, you want to be first in line.
Emergency small business loans coming in JuneTo kick off National Small Business Week, the government announced its timetable for a hotly awaited assistance program.By Sharon McLoone, CNNMoney.com contributing writer
Last Updated: May 18, 2009: 4:47 PM ET
WASHINGTON (CNNMoney.com) -- An emergency loan program designed to shore up struggling-but-viable small businesses will open for applications in mid-June, the Small Business Administration announced Monday. The news came during a speech by SBA head Karen Mills kicking off the SBA's annual National Small Business Week program of publicity and networking activities. Known as America's Recovery Capital (ARC), the emergency loans were authorized in February's stimulus bill. The SBA has been working since then to pull together guidance for the new program, which will back short-term loans of up to $35,000 that business owners can use to temporarily cover their payments on existing debt. No repayment on the ARC loans will be due for 12 months, and owners will have up to five years to repay them. May 08 Need $$$ Now? The SBA Emergency Loan Might Be The AnswerYesterday I was talking to a fellow small business owner who was bemoaning his business' lack of funds (as most of his revenue sources have dried up). In my effort to be helpful I asked, "Why don't you just take advantage of that SBA emergency loan Obama provided in the Stimulus Package. You can get $35,000 interest free - that can keep you floating until something pops up." His response: "What loan?" Of course I was surprised by this answer - I mean, didn't I feature information on this loan in one of my past posts?
Well, a quick review of the archives show that, I only discussed this loan program in passing in my February 18th post titled, Breakdown Of Your Cut Of The Final Stimulus Bill. Now it's almost three months later and though the SBA has a new chief and the credit market is thawing slowly, commerce in this country is still not where it should be. Given the economic uncertainty, the demand for most goods and services is almost nil. But who know what the next few months will bring? So far things seem to be going in the right direction. Why not focus on keeping your business afloat until the market picks up?
With this in mind, I decided to feature an article from CNNSmall Business that provides indept details on the Emergency Small Business Loan. As previously stated, the limit on this loan is $35,000 and you don't have to worry about making payments for an entire year. In addition, "businesses will have up to 5 years to fully repay them." As the goal of this loan is to help you pay off outstanding debts, you might be wondering what qualifies? Well, according to the piece, a Congressional staffer is quoted as saying,"[p]rivate loans made for any legitimate business purpose -- including credit card debts, bank loans and real-estate loans -- would be eligible for the program."
As with any loan program, there is always the "fine print". So, if you think you might need this infusion of cash, please take the time to read the featured article to see if you would qualify. Then,the next step is obvious - pick up the phone and call your local SBA office.
Emergency biz loans: What qualifiesThe SBA's forthcoming loan-relief program can't be used to pay down existing SBA loans -- but past borrowers will still be eligible for help with other debts.By Stacy Cowley, CNNMoney.com small business editor
Last Updated: March 20, 2009: 4:49 PM ET
The upcoming program, tentatively dubbed the "America's Recovery Capital" (ARC) loan program, is a measure mandated by last month's stimulus bill. The bill requires the SBA to create a new "business stabilization" program to back loans of up to $35,000 to small businesses "experiencing immediate financial hardship." The loans are intended to be used to make interest and principal payments on a "qualifying small business loan" for up to six months.
May 07 Partnering With The Major Players In Your IndustryDo you know how sometimes you read something and the idea is so simple you ask yourself, "Why didn't I think of this before?!" Well, that is my reaction to today's featured piece from the New York Times which deals with small businesses expanding their reach by teaming up with the larger companies in their field. After I read the piece, I also realized that this is a basic tenet for small businesses in the SBA's 8(a) program in that they are always encouraging small businesses to seek subcontracts from larger contractors. Why didn't I think to apply that to the private sector?
Well, better late than never; and ,as you can see from this article, even giants of industry like Microsoft, American Express and FedEx are finding this strategy to be quite feasible. This is because generally, these large companies are able to capitalize on the small business owners' penchant for ingenuity and innovation. For small businesses this partnership is great because they get access to the "expansive reach" of their larger partner and they can also "piggyback to some extent on their marketing power."
Like I keep saying, we have to find a way to turn this crisis into an opportunity. In these tough times, even larger companies are feeling the pinch financially. As such, they are more open to listen to your ideas than ever before! So, read the piece, take the time to identify the major players in your industry, then get started on a marketing plan that shows the ways in which you can add value to them and their clients. It's now or never people! Good Luck!
Partnerships Based on Service, Not SizeBy MICKEY MEECE
April 30, 2009
The eXpresso Corporation, a start-up company in Palo Alto, Calif., followed a well-worn path in technology by aligning with Microsoft, Cisco, Salesforce.com and other big-name companies to market its services. “All of these major corporations, at some point, have a need for new, innovative products and services because they can’t develop them all in-house,” said John Howard, vice president for business development at eXpresso, which offers an online service that allows people to store, edit and share Microsoft Office documents. “They look to start-ups for the next great things they want to add to their product offerings.” May 04 Turn All Your Employees Into SalespeopleI have to admit that I wasn't a believer when I first started reading today's featued article from Forbes. I mean turn everyone of your employees into salespeople? Of course this is great conceptually, but is it realistic to believe that this is even possible? Let's be honest, most people are just not effective at selling things; I know - I was one of them. In business, isn't it more important to capitalizing on people's strengths and leave the selling to the peofessionals?
However, I was intrigued by the featured piece and as I continued reading, I realized that the type of sales skills being promoted were not at all complicated and could be carried out by most employees. First and foremost, the non-sales employees are not required to bring in leads. They are, however, given a huge commission for ever lead that that eventually becomes a client. To help your employees earn this commission, employers need to ensure that they all have a "two minute elevator pitch" that highlights everything the company can do. This ensures they are ready if they come across a potential target client in their daily lives. In addition, it seems that just about everyone is one facebook, linkedin and other social networking sites these days. Train your employees in how to use this for your advantage. Finally, give your employees a voice - check-in with them on what is working and what isn't.
Of course this is just a very brief summary of the ideas offered in the featured article. To get more insight you must read the entire piece. Though I started out a skeptic, I must say I am now a convert. And, if you think about it, in today's economy, don't we need "all hands on deck"?
Put Your Sales Effort On Steroids Miriam Marcus, 04.30.09, 10:00 AM ET
Gifted salespeople--those silver-tongued closers who can peddle saltwater to castaways--are the lifeblood of many a small company, though finding and keeping them can be a real challenge. Here's a thought: What if, with a little training and persistence, all staffers--regardless of task or tenure--could contribute to the sales effort? That's precisely the philosophy at Roundarch, a Chicago-based designer of Web sites and nifty mobile applications. "Every one of Roundarch's 175 employees, from the most senior to junior, is empowered to seek and close new business," says President Jeff Maling. "In fact, we depend on it." Roundarch used to have a dedicated sales team, but five years ago began pushing much of that responsibility to its eight vice presidents and those below. Indeed, some of the company's bigger projects in recent years have originated from junior staffers. |
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