A few weeks ago, a new clothing store opened across the street from my house. The first time I went in, I balked at their high prices and never went back -- until they threw a huge neighborhood party, that is. Conscious that my section of town has been suffering from the down economy, the shop started throwing parties every Thursday night with free refreshments, food and live music for anyone who wants to come. The next thing I knew, I decided their vintage belts weren't as expensive as I had originally thought and left with a full stomach and a new purchase.
Nice gestures like these are great for consumers, but also serve as a great marketing and customer-relations strategy, says this Wall Street Journal article. Donating services to charity groups, churches, schools and other nonprofits can "increase local visibility, deepen local business ties and create opportunity for new business," says Christine Banning, vice president of marketing and communications at SCORE, a Washington-based group that provides free counseling to small businesses.
Tuesday, December 15, 2009
Using a Blog to Bring in Business
So you finally did it: You started a blog on your company Web site, and you're trying to update it daily, weekly or monthly. Congrats! You've taken the first step. If you're going to spend the time and energy to blog, though, you better make sure it's paying off. To avoid the most common mistakes that first-time company bloggers make, check out this Newsday article. If you want your blog to succeed, the article states, don't be:
1. Inconsistent. Update your blog regularly. You have to keep providing useful information to your audience to keep them interested. 2. Too elusive. People need to see more than just your company logo when they visit your blog. Give them a name and face, along with contact info. 3. Overly self-promotional. It's OK to brag a little in posts, but don't just tout your company. Instead point your audience to helpful links, studies and other relevant information. 4. Focused only on business. Don't be afraid to get personal in your posts. Show your human side. This will help you create conversations and relationships. 5. Reclusive. Ask for and encourage feedback from your audience. Post content that will spark conversation and debate.
The article also makes an important note about readers, friends, followers, ect: It's not how many you have; it's about how much community you build around your brand.
1. Inconsistent. Update your blog regularly. You have to keep providing useful information to your audience to keep them interested. 2. Too elusive. People need to see more than just your company logo when they visit your blog. Give them a name and face, along with contact info. 3. Overly self-promotional. It's OK to brag a little in posts, but don't just tout your company. Instead point your audience to helpful links, studies and other relevant information. 4. Focused only on business. Don't be afraid to get personal in your posts. Show your human side. This will help you create conversations and relationships. 5. Reclusive. Ask for and encourage feedback from your audience. Post content that will spark conversation and debate.
The article also makes an important note about readers, friends, followers, ect: It's not how many you have; it's about how much community you build around your brand.
Beef Up Your Blog Content
If you've set up a blog for your small business but are having trouble coming up with new, relevant ideas for posts, you're not alone.
"Generating ideas for fresh, original, high-quality content is difficult, especially for those new to blogging," according to this article on OpenForum.com.
To help you brainstorm for ideas, OpenForum suggests five different types of posts to consider writing for your business' blog, including:
Advice or tips: Share your expertise, whether it is with your peers or your customers.
Behind-the-scenes: Help strengthen the relationship with your customers or clients by letting them see a side of your business they normally don't. If you're not up to writing a full entry, take some pictures and post them as a peek into a day in the life of one of your employees—or you.
Interviews or profiles: Talk to one of your employees, an expert in your field, or one of your most loyal customers for a different perspective on issues relating to your business.
"Generating ideas for fresh, original, high-quality content is difficult, especially for those new to blogging," according to this article on OpenForum.com.
To help you brainstorm for ideas, OpenForum suggests five different types of posts to consider writing for your business' blog, including:
Advice or tips: Share your expertise, whether it is with your peers or your customers.
Behind-the-scenes: Help strengthen the relationship with your customers or clients by letting them see a side of your business they normally don't. If you're not up to writing a full entry, take some pictures and post them as a peek into a day in the life of one of your employees—or you.
Interviews or profiles: Talk to one of your employees, an expert in your field, or one of your most loyal customers for a different perspective on issues relating to your business.
Twitter Helps Business Owners Out of Jams
Forget the old 1-800 number. Twitter is becoming the tool of choice for some small business owners who find themselves in a customer-service or public-relations jam, according to this Wall Street Journal article.
The social media and micro-blogging service—where users send "tweets" to followers who have signed up to receive the messages—proved to be a lifeline for Innovative Beverage Group Holdings, Inc., after its Web site crashed due to a surge in online traffic. "Twitter gave us an up-to-the-minute ability to take what would normally be a crisis situation and make it just another event," said Peter Bianchi, who notified customers via Twitter that the company was working to resolve the problem. Twitter also came in handy when a Bartlesville, Okla.-based business, United Linen & Uniform Services, was hit by an ice storm. Instead of e-mailing customers about the status of their orders, the business notified them through tweets.
But Twitter can only help you communicate with customers if you use (and update) it regularly, author Shel Isreal, of Twitterville: How Businesses Can Thrive in the New Global Neighborhoods, told the WSJ. Using Twitter only in a crisis will give you no credibility, he noted. The key is using it to "build trust with people who are relevant to your business."
The social media and micro-blogging service—where users send "tweets" to followers who have signed up to receive the messages—proved to be a lifeline for Innovative Beverage Group Holdings, Inc., after its Web site crashed due to a surge in online traffic. "Twitter gave us an up-to-the-minute ability to take what would normally be a crisis situation and make it just another event," said Peter Bianchi, who notified customers via Twitter that the company was working to resolve the problem. Twitter also came in handy when a Bartlesville, Okla.-based business, United Linen & Uniform Services, was hit by an ice storm. Instead of e-mailing customers about the status of their orders, the business notified them through tweets.
But Twitter can only help you communicate with customers if you use (and update) it regularly, author Shel Isreal, of Twitterville: How Businesses Can Thrive in the New Global Neighborhoods, told the WSJ. Using Twitter only in a crisis will give you no credibility, he noted. The key is using it to "build trust with people who are relevant to your business."
Why Small Business Needs Social Networks
You've probably heard this statement before: Small business owners need to use online social networks. But maybe you've never heard statistics that tell you why. This study by Wetpaint and the Altimeter Group spells it out pretty clearly: The study shows that small business owners who have engaged in social media have boosted their sales significantly.
In fact, the study indicates that businesses that utilize online communities like Facebook and LinkedIn have increased their revenues by 18 percent in the past 12 months. It also finds that social media efforts tends to build on themselves.
What does that mean to you? The more you put your name out there through social networking, the farther your brand will reach.
In fact, the study indicates that businesses that utilize online communities like Facebook and LinkedIn have increased their revenues by 18 percent in the past 12 months. It also finds that social media efforts tends to build on themselves.
What does that mean to you? The more you put your name out there through social networking, the farther your brand will reach.
Capitalizing on the 'Buy Local' Trend
I'm planning a big trip for February, but I haven't pinpointed where I want to go yet. All I know is it will definitely be somewhere in the U.S. Why would I spend my money overseas when my own country could use the boost? OK, so that's not exactly the best example of buying local, but you get the point.
Consumers are wanting to boost their own economies, and they can offer no greater impact than in their own communities. Want to encourage shoppers to look no further than down the street? Then read this Wall Street Journal article, which offers strategies for showcasing your local roots.
Consumers are wanting to boost their own economies, and they can offer no greater impact than in their own communities. Want to encourage shoppers to look no further than down the street? Then read this Wall Street Journal article, which offers strategies for showcasing your local roots.
Small Business Optimism on the Rise
I know what you're thinking: Not another post about the economy. But I couldn't help myself when I saw this Yahoo! news report that small business owners are feeling optimistic about economic growth in the next three to six months. On top of that, these small business owners are making plans for aggressive growth in the next few months. Still, there's room for entrepreneurial optimism to grow. Here's what the Tennessean's Jeff Cornwall suggests will ease the burden on America's small businesses:
Cut tax rates. Entrepreneurs need to see that their risk-taking can lead to the opportunity for income and wealth down the road.
Decrease regulation. The Small Business Administration estimates that when compared with large businesses, small operations must spend four and a half times more per employee to comply with environmental regulations and 67 percent more to comply with tax regulations. It's time to cut some of the red tape.
Stop trying to steer the economy. Markets have proven to be pretty good at picking economic winners. Rather than trying to use tax policy and other forms of government incentives to support one industry over another, now is the time to let markets work.
Cut tax rates. Entrepreneurs need to see that their risk-taking can lead to the opportunity for income and wealth down the road.
Decrease regulation. The Small Business Administration estimates that when compared with large businesses, small operations must spend four and a half times more per employee to comply with environmental regulations and 67 percent more to comply with tax regulations. It's time to cut some of the red tape.
Stop trying to steer the economy. Markets have proven to be pretty good at picking economic winners. Rather than trying to use tax policy and other forms of government incentives to support one industry over another, now is the time to let markets work.
Small Businesses Make the Best Out of Bad Times
Needing an extra dose of inspiration? If you feel like the recession will never end for your business, and the policymakers in Washington D.C. have forgotten all about you in their plans for economic recovery, check out this Fortune Small Business article posted to CNNMoney.com. The year ahead may not be the best for small business, but one thing is certain: Many small business owners out there are making the best out of the situation. From discovering how to run their businesses more frugally to picking up clients and customers left behind by corporate America, entrepreneurs are finding creative ways to survive—and even thrive—in these difficult times, as this article illustrates.
Fighting the Recession Together
Whoever said that people didn’t care about people was dead wrong. They obviously haven’t met this group of generous small business owners. In this article on CNNmoney.com, meet five businesses that are helping the jobless get back on their feet and prepare for interviews by giving away free services. Among these services include free haircuts, dry cleaning and shoes.
It hasn’t been bad for business either, especially with all of the press coverage these companies are getting for their extraordinary acts.
It hasn’t been bad for business either, especially with all of the press coverage these companies are getting for their extraordinary acts.
Small Business Gift-Giving Shifts From Employees to Customers
American Express OPEN just released its Small Business Holiday Monitor, an annual survey of small business owners that details their spending plans for the holidays. According to the survey, roughly the same percentage of small business owners (47 percent) plan to spend the same amount of money ($455) on customer gifts this year, compared to last year. That's the good news.
The bad news is that many of them plan to fund these customer gifts by cutting back on employee bonuses and gifts. The survey found that fewer small business owners (35 percent) are giving employee gifts this year (vs. 46 percent in 2008), fewer to give year-end bonuses (31 percent vs. 44 percent in 2008) and fewer will give raises (16 percent vs. 30 percent in 2008).
If you're sacrificing employee bonuses and gifts for showing appreciation to your customers, just remember to thank your employees for all of their hard work in some other way, be it an extra day off over the holidays or some other gesture of gratitude.
The bad news is that many of them plan to fund these customer gifts by cutting back on employee bonuses and gifts. The survey found that fewer small business owners (35 percent) are giving employee gifts this year (vs. 46 percent in 2008), fewer to give year-end bonuses (31 percent vs. 44 percent in 2008) and fewer will give raises (16 percent vs. 30 percent in 2008).
If you're sacrificing employee bonuses and gifts for showing appreciation to your customers, just remember to thank your employees for all of their hard work in some other way, be it an extra day off over the holidays or some other gesture of gratitude.
When Firing A Client Pays Off
With the economy still not improving as much as we'd all like, you wouldn't thinks any businesses would be shedding customers--no matter how much of a headache they can be. But these days, small business owners are cutting ties with customers who make late payments, expect special treatment or ask for discounts, says this Wall Street Journal article.I know what you're asking yourself: What's the up side of losing business? According to Kishau Rogers, owner of Websmith Group LLC in Richmond, Va., dropping high maintenance or late-paying clients boosted her business in the end. According to the article, "By eliminating 5% of her clientele this year, [Rogers] is saving 20% more of her time while the Web-site development firm's 2009 revenue is on track to rise 10%."
Bartering for Business
“I’ll trade you!” It’s a phrase we all know well. It’s certainly a staple in every elementary lunchroom across the country. But who knew that small business owners could use this concept to trade one set of goods for another in order to grow their business?
The brains behind the Barter Business Unlimited's Annual Business and Holiday Barter Show, that’s who. This year’s annual event attracted business owners from all over who traded warehouse space for fine jewelry, advertising for clocks, and other products and services.
The brains behind the Barter Business Unlimited's Annual Business and Holiday Barter Show, that’s who. This year’s annual event attracted business owners from all over who traded warehouse space for fine jewelry, advertising for clocks, and other products and services.
Britain economy remains in recession
LONDON -- Britain's statistics office says the domestic economy shrank 0.4 percent in the third quarter of the year - dashing hopes that the country may have exited recession.
Friday's update from the Office for National Statistics shows that gross domestic product - which measures the total amount of goods and services produced by a country - was dragged lower in the July to September quarter despite recent gains in Britain's dominant services sector.
The British economy has not recorded growth since the beginning of April 2008 - it officially entered recession at the turn of the year after two quarters of negative growth.
Economists had expected the report to be a close call between growth and contraction.
Friday's update from the Office for National Statistics shows that gross domestic product - which measures the total amount of goods and services produced by a country - was dragged lower in the July to September quarter despite recent gains in Britain's dominant services sector.
The British economy has not recorded growth since the beginning of April 2008 - it officially entered recession at the turn of the year after two quarters of negative growth.
Economists had expected the report to be a close call between growth and contraction.
Monday, November 16, 2009
Struggling to Afford Health-Care Costs?
After years of hard work by NFIB members, a Senate vote has finally been scheduled for Small-Business Health Plans in May. SBHPs level the playing field for small-business owners, and a big push is on to encourage your senators to vote in favor of this important legislation. In the current issue of MyBusiness magazine, we profile two small-business owners who are living through the nightmare of escalating health-care costs—and desperately need relief soon.
In the Spring there will be growth
This morning, the U.S. Labor Department released the latest snapshot of the U.S. labor market and the picture looks good. Employers boosted payrolls by a sizable 211,000 in March in a springtime hiring burst that pushed the unemployment rate down to 4.7 percent. "The American economy has now added jobs for 31 months in a row," President Bush said. As usual, the report is in line with earlier predictions of NFIB chief economist and MyBusiness columnist Bill Dunkelberg. Here's his take on recent economic news from the current issue of the magazine.
Before You Sign a Lease
After almost 17 years in the same building, my mom and dad (who own a small business in Alabama) have decided to move to a new office complex that's under contruction in the town where I grew up. It's been so long since they've negotiated a new lease that I'm sure they'll be extra careful and cautious. In the April/May issue of MyBusiness, the NFIB Legal Foundation's Beth Gaudio lays out key points for small-business owners to consider before signing a lease on commercial space. If you're considering new digs for your office any time in the near future, it's a must-read.
Small-business optimism tumbles
Optimism among small-business owners took an unexpected tumble in March. The NFIB Small-Business Optimism Index lost 3.5 points, falling to 98.0 (1986=100), two points below the 30-year average. While profit trends improved, inventory investment and reported sales trends remained strong (virtually unchanged from February), labor market indicators sagged and capital spending plans faded along with weaker expectations for gains in real sales. Declines in job creation plans and job openings accounted for 30 percent of the drop in the index, weaker real sales expectations 40 percent, and the decline in the outlook for overall business conditions contributed 20 percent of the drop. “Although the first quarter will be very strong, something spooked small-business owners in March about the future course of the economy,” said NFIB Chief Economist and MyBusiness columnist William Dunkelberg. “The decline could indicate that owners think the economy is strong, but they don't expect it to get any better, or the economy is weak and they expect growth will slow substantially. The April survey could provide the answer.”
Retire With Options
With millions of Baby Boomers reaching retirement age, planning for one's financial future is a hot topic these days, prompting a feature in this week's Newsweek. Just this year, a new kind of 401(k) was added to the list of retirement savings options. Small-business owners might consider offering employees the new Roth 401(k), which allows participants to invest with after-tax dollars, which means the tax bill has already been paid on these funds. The new plan isn't for everyone, so see the current issue of MyBusiness for more details.
Preparing for a Disaster
One-hundred years ago tomorrow, the Great San Francisco Earthquake struck, touching off fires that burned for three days and destroyed more than 500 blocks of the city. Damage was estimated at $8.2 billion by today’s standards.
Small-business owners in this century certainly have witnessed their share of disasters in recent years. Yet a recent study by MasterCard found that the majority of small-business owners don’t believe a natural disaster will affect their business in the next 12 months. You know the old Boy Scout adage: Be prepared. Take a few minutes to check out the Small Business Administration’s disaster preparedness site to make sure you're covered.
Small-business owners in this century certainly have witnessed their share of disasters in recent years. Yet a recent study by MasterCard found that the majority of small-business owners don’t believe a natural disaster will affect their business in the next 12 months. You know the old Boy Scout adage: Be prepared. Take a few minutes to check out the Small Business Administration’s disaster preparedness site to make sure you're covered.
Stand Up and...Be Seated?
The New York Times' (registration required) Tuesday edition reports a potential uncomfortable option for travelers: Airlines are looking at new standing-room-only seat designs to maximize profits. Mobissimo has the details on its travel blog. Incidentally, the competition between travel search engines Mobissimo.com, SideStep.com and Kayak.com is heating up, resulting in even better bargains for business and leisure travelers. Before you book your next trip, check out the travel short in the February/March issue of MyBusiness and in the Web Extras section.
Are Gas Prices Driving You Crazy?
John Mann’s fuel costs have almost doubled in recent months, and the owner of Buffalo, N.Y.-based 1-2-3 Delivery may have to his raise prices to keep up. With 52 delivery vans and three large trucks, Mann, like so many other small-business owners, has been hit hard at the pump.
If you’re worried about absorbing higher fuel costs in your business this summer, it might be time to think about trading in some of your vehicles for cars that get better gas mileage. CNNMoney.com picks the most fuel-efficient cars in five categories. The article also includes easy ways to pinch a few pennies when you’re picking out a new car, like opting for a smaller V-6 engine over a V-8 and passing up the four-wheel or all-wheel drive option.
If you’re worried about absorbing higher fuel costs in your business this summer, it might be time to think about trading in some of your vehicles for cars that get better gas mileage. CNNMoney.com picks the most fuel-efficient cars in five categories. The article also includes easy ways to pinch a few pennies when you’re picking out a new car, like opting for a smaller V-6 engine over a V-8 and passing up the four-wheel or all-wheel drive option.
SBHPs Now
Health-care initiatives were the focus of President Bush’s speech to members of the American Hospital Association Wednesday. President Bush has long advocated for Small-Business Health Plans, which allow small firms to join together across state line to buy insurance at the same discounts as larger companies.
The Senate is expected to vote on Small-Business Health Plans in early May. Find the current status on the legislation and ways you can help pass SBHPs on the SBHPs Now! Web site
The Senate is expected to vote on Small-Business Health Plans in early May. Find the current status on the legislation and ways you can help pass SBHPs on the SBHPs Now! Web site
A Woman's Job
The Christian Science Monitor today reports on an emerging trend in Afghanistan: entrepreneurship among women. Good news out of the Middle East is rare these days, and this article offers hope that conditions are improving for everyone in a country ruled by the oppressive Taliban until just a few years ago. The article points to a report from Microfinance Times that found 75 percent of all active microcredit borrowers in Afghanistan are now women, many of whom use their loans to start businesses.
Like their American counterparts, Afghan small-business owners—and women in particular—are leading the way in rebuilding their country’s shaky economy. Reports indicate some 10,000 women have started businesses in that country during the past few years. “Businesspeople are the ambassadors of peace in the world. If we've got women entrepreneurs, other women will feel that business can help them make a better life. This creates an atmosphere to create a factory or an industry, and brings in investors,” says Suraya Parlika, founder of All Afghan Women’s Union.
Like their American counterparts, Afghan small-business owners—and women in particular—are leading the way in rebuilding their country’s shaky economy. Reports indicate some 10,000 women have started businesses in that country during the past few years. “Businesspeople are the ambassadors of peace in the world. If we've got women entrepreneurs, other women will feel that business can help them make a better life. This creates an atmosphere to create a factory or an industry, and brings in investors,” says Suraya Parlika, founder of All Afghan Women’s Union.
Small Business Optimism Rebounds in April
After an unexpected slump in March's NFIB Small Business Optimism Index, the long-running survey bounced back up more than two points in May. With a return to a range considered historically optimistic, NFIB researchers indicate they believe the March figures were a "fluke." Among the highlights found in the April numbers: Profit trends and sales gains moved to historically high levels, capital spending was strong, inventories appeared lean and labor-market indicators, especially job creation plans, surged to wipe out March declines. One troubling sign: Inflation, "forecasted by a 9-point spike (seasonally adjusted) in the net percent of firms raising average selling prices."
Close, but no cigar
Just five votes. That’s how close small-business owners were to real health-insurance reform last week. Unfortunately, the Senate acted as roadblock yet again to Small-Business Health Plans, crucial legislation that would help make health insurance more accessible and affordable to small-business owners and their employees.
In a sometime-confusing procedural vote, SBHP supporters fell just five votes short of the 60 votes needed to invoke cloture, which basically would have cut off debate and allowed the bill to move forward to a vote. Because of the Senate schedule, it is unlikely, although not impossible, that this legislation will come back to the Senate floor again this year, according to NFIB’s President Todd Stottlemyer. Read more of his comments on last week’s vote on NFIB.com.
Despite defeat this time, small-business owners won’t go away quietly. November’s midterm elections are the perfect chance to send packing those senators who didn’t support the much-needed reform. NFIB is mobilizing members of its Political Action Team. Go here to learn how you can get involved.
In a sometime-confusing procedural vote, SBHP supporters fell just five votes short of the 60 votes needed to invoke cloture, which basically would have cut off debate and allowed the bill to move forward to a vote. Because of the Senate schedule, it is unlikely, although not impossible, that this legislation will come back to the Senate floor again this year, according to NFIB’s President Todd Stottlemyer. Read more of his comments on last week’s vote on NFIB.com.
Despite defeat this time, small-business owners won’t go away quietly. November’s midterm elections are the perfect chance to send packing those senators who didn’t support the much-needed reform. NFIB is mobilizing members of its Political Action Team. Go here to learn how you can get involved.
Welcome Relief
A record $2 billion in disaster loan applications have been approved by the Small Business Administration for the hurricane-devastated Gulf Coast region. Another $685 million in conventional business loans have been delivered to small businesses in affected areas.
"Putting money into the hands of businesses in the Gulf Coast communities remains our top priority," said SBA Administrator Hector V. Barreto. "These businesses are the economic foundation of the region's renewal and spirit, and we are going to stay on the job until it’s done."
For more information on the SBA’s disaster assistance programs, click here.
"Putting money into the hands of businesses in the Gulf Coast communities remains our top priority," said SBA Administrator Hector V. Barreto. "These businesses are the economic foundation of the region's renewal and spirit, and we are going to stay on the job until it’s done."
For more information on the SBA’s disaster assistance programs, click here.
The two-handed economy
Harry Truman is credited with saying he wished for a "one-handed economist" because his economic advisors were always prefacing advice with, "on the one hand...but on the other hand." Apparently, having two hands still comes in "handy" for economists. Today, USA Today includes an article indicating that several statistics point to a sluggish economy in the coming months. However, the story also notes that slow growth may be good as it will discourage the Federal Reserve from continuing its interest-raising pattern. Small business optimism is up, according to NFIB's most recent survey. But on the other hand, a month earlier it was down. Fuel prices are up, but on the other hand, they're moving lower. I guess having two hands is always good for economists: one to hold the glass that is half-full, the other to hold the one that is half-empty.
Land of the Free (Enterprise)
The Land of Opportunity provides a pathway to business ownership for many immigrants, according to a Kauffman Foundation study highlighted in this American City Business Journals article. The study found that immigrants are more likely to be entrepreneurs than native-born Americans, an interesting stat to consider regardless of which side of the fence you fall on in the immigration debate.
An article in the current issue of MyBusiness profiles a business owner born in Vietnam who followed her dream of entrepreneurship when she came to the United States at the age of 17. Today, Luna Howard runs a successful salon on Capitol Hill and was even tapped by the First Family to style hair during Bush's most recent inauguration.
An article in the current issue of MyBusiness profiles a business owner born in Vietnam who followed her dream of entrepreneurship when she came to the United States at the age of 17. Today, Luna Howard runs a successful salon on Capitol Hill and was even tapped by the First Family to style hair during Bush's most recent inauguration.
Inflation jitters (and how to cope)
Professor Jeff Cornwall (and Entrepreneurial Mind blogger) notes that jitters regarding inflation are spooking the stock market -- and small business owners. "Many entrepreneurs have never had to do business in an age of inflation. In fact, the last bad inflationary period we had was almost thirty years ago. Since then, careful control of the economy with interest rate policy has helped to keep things in check," he notes. Here is some of his advice for coping with inflation:
· Keep overhead low.
· Build cash reserves to buffer short term price increases that precede higher prices on your part.
· Watch your margins carefully. Worry about growing profits, not sales.
· Don't lock into long-term contracts that have narrow margins with large customers.
· When inflation heats up even a little, be aggressive with frequent small price increases rather than waiting and trying to catch up at some point with one big jump.
· Pay down variable interest loans ASAP. As long as there is inflation, interest rates will keep going up.
· Keep overhead low.
· Build cash reserves to buffer short term price increases that precede higher prices on your part.
· Watch your margins carefully. Worry about growing profits, not sales.
· Don't lock into long-term contracts that have narrow margins with large customers.
· When inflation heats up even a little, be aggressive with frequent small price increases rather than waiting and trying to catch up at some point with one big jump.
· Pay down variable interest loans ASAP. As long as there is inflation, interest rates will keep going up.
Follow the bouncing small business optimism index
After being down in March and back up in April, NFIB's Small-Business Optimism Index slipped again in May, down 1.6 points. This suggests the March decline may not have been a fluke, but the beginning of an oscillation in the outlook that is signaling a peak for economic growth. "It's hard to beat the first-quarter performance, so a 'slowdown' is definitely going to happen," said NFIB Chief Economist William Dunkelberg. "The only question is how far and how fast." Triggering the slide were a reduction in job openings, capital spending plans and an increase in the percent of small-business owners who believe business conditions will be worse in six months than they are now. Current economic activity was strong in May, Dunkelberg said, adding that reports of higher sales volumes rose and the share of owners expecting higher volumes was unchanged. Additionally, few signs of problems arranging financing have been found and inflation news, while not improving, was somewhat muted. Stay tuned.
eBay's CEO Joins Small-Business Owners "Taking It to the Hill"
eBay's CEO Meg Whitman is joining several hundred small-business owners "taking it to the Hill" today, visiting their lawmakers as part of the NFIB Small-Business Summit. What? eBay is a multi-billion dollar international corporation so what's the company's CEO doing hanging out with a bunch of small-business owners? In an early-morning address to the group, Whitman explained that more than 700,000 eBayers are operating either their primary or part-time businesses through eBay. While she admitted that eBay founders and executives were slow to realize it, eBay has become one of the primary e-commerce platforms for small businesses--"It has leveled the playing field of the Internet," she said. Issues like access to affordable health-insurance coverage and tax simplification are concerns that eBay sellers and NFIB members alike are working on in Congress, so Whitman is here representing eBay's small-business sellers, she explained. (See full coverage of Whitman's address at NFIB.com.)Posted by Rex Hammock on June 20, 2006 07:22 AM
Second-Half Economic Outlook: 2006 Will Wrap Up OK
What will the economy look like for the rest of the year, and what will that mean for small business? It's not going to be as bad as many small-business owners expect, according to NFIB Chief Economist Bill Dunkelberg and Wayne Best, senior vice president of business and economic analysis for Visa, who offered their economic forecast at the recent NFIB National Small-Business Summit. Still, small businesses should brace for a slowdown in the coming months.
How many new jobs do small businesses create?
Here's one of those topics that gets debated in policy-wonk circles that's fairly obvious to the rest of us: Most new jobs are created by small businesses. Via USA Today's Jim Hopkins comes a link to a .PDF newsletter from the SBA's Office of Advocacy that highlights the job-creation numbers from the most recent year with data, 2003. Writes Jim: "Employer firms with fewer than 500 employees created 1,990,326 net new jobs, whereas large firms with 500 or more employees shed 994,667 net jobs. In other words, small businesses created nearly two million jobs after you subtract those they eliminated. On the other hand, big companies -- defined as those with 500 or more workers -- cut far more jobs than they created."
Small-Business Optimism Index Continues to Fall
According to June's NFIB Small-Business Optimism Index, "pessimism is on the rise among the nation's small-business owners." In the most recent monthly survey, respondents confirmed their views that a slowdown is coming in the second half of the year. Sales-growth expectations declined dramatically. In addition, weaker job-creation plans, declining inventory purchases and fading expansion hopes peeled 1.8 points off the index, which settled at 96.7 (1986=100) for the month. "Although June's sales, profit gains capital spending were solid as May's, that month wasn't very strong," said NFIB Chief Economist William Dunkelberg. "Taking a realistic view of the easing economy, owners are scaling back plans to spend and hire."
Spinning the deficit
This morning, the White House released new figures projecting a much lower deficit than it had predicted just a few months ago. Doesn't that sound like good news? However, when it comes to deficit statistics, no good news is left unanswered. Indeed, spinning statistics for political purposes is an art: For example, in the AP article, the "positive" spin on today's announcement is this: "When measured against the size of the economy — at 2.3 percent of gross domestic product — the 2006 deficit would be lower than the deficits of 17 of the past 25 years." The negative spin: "The 2006 deficit may be lower, but it represents a $600 billion swing from the surplus projected in 2001. And a deficit of $296 billion is still a large deficit. In nominal terms, it's one of the four largest in history." Half full? Half empty? Apparently, it depends on who's looking. Perhaps we can all agree the deficit is heading in the right direction.
Crunching the Numbers
Last Friday's monthly jobs report from the Labor Department was hardly good news. Analysts expected the new jobs number to be higher. So why are the government numbers so weak when other economic indicators appear positive?
The problem lies in the way we measure it, according to a post today on USA Today's small-business blog. Pointing to comments from TV commentator and blogger Lawrence Kudlow, USA Today asks: "Which of Labor's two employment measures -- the household survey or the payrolls survey -- more accurately measures changes in jobs?"
It's a long-standing debate among those who try to monitor this stuff. Kudlow argues that the smaller household survey captures small-business job creation that the larger payrolls survey misses. But critics take issue with the household survey's methods: Its figures are based off what indviduals report, while the payroll numbers draw from hard data.
The problem lies in the way we measure it, according to a post today on USA Today's small-business blog. Pointing to comments from TV commentator and blogger Lawrence Kudlow, USA Today asks: "Which of Labor's two employment measures -- the household survey or the payrolls survey -- more accurately measures changes in jobs?"
It's a long-standing debate among those who try to monitor this stuff. Kudlow argues that the smaller household survey captures small-business job creation that the larger payrolls survey misses. But critics take issue with the household survey's methods: Its figures are based off what indviduals report, while the payroll numbers draw from hard data.
"O" No!
Dream of having your product mentioned on Oprah? For some small businesses who lived through a mention on Oprah's Favorite Things, the dream becomes a reality--fast. An article on CNNMoney tracks a few to see what their instant success taught them.
Given just five days notice before its product appeared on the show, Pete Seltzer, CEO of Kashwére, anticipated a challenge. But after a Kashwere robe was mentioned on Oprah's Favorite Things, "for six consecutive weeks we could not get a call out, the phones were hammered and we did thousands and thousands of Internet orders."
MyBusiness tackled a similar topic when we found several businesses who'd spent 15 minutes in the spotlight. Read how fame affected their bottomline.
Given just five days notice before its product appeared on the show, Pete Seltzer, CEO of Kashwére, anticipated a challenge. But after a Kashwere robe was mentioned on Oprah's Favorite Things, "for six consecutive weeks we could not get a call out, the phones were hammered and we did thousands and thousands of Internet orders."
MyBusiness tackled a similar topic when we found several businesses who'd spent 15 minutes in the spotlight. Read how fame affected their bottomline.
Saturday, October 31, 2009
Conducting the Perfect Interview
With unemployment at a low level, you're probably noticing how hard it is to find skilled and qualified workers. For a small business, hiring a new employee is a huge step. Not only does the person need to fit the job description, she also has to fit into your office. But how do you determine whether a candidate is a good choice? Everyone is on his best behavior during interview.
Small Business Trends blogger Anita Campbell recommends the best questions to ask to dig deeper into the person in your interview chair. If you're bored with the typical "tell me about yourself..." responses, try some of her tips.
Small Business Trends blogger Anita Campbell recommends the best questions to ask to dig deeper into the person in your interview chair. If you're bored with the typical "tell me about yourself..." responses, try some of her tips.
A Capital Idea
Most small-business owners spend about $10,000 to start their own companies, according to results from a Wells Fargo/Gallup survey announced this week. The poll of 600 business owners found that 73% funded their business with personal savings, while the rest got loans and lines of credit.
Sometimes going into debt to start a business can make sense. For tips on how to know when it's smart to borrow start-up money, check out this recent MyBusiness story.
Sometimes going into debt to start a business can make sense. For tips on how to know when it's smart to borrow start-up money, check out this recent MyBusiness story.
When Temporary Became Permanent
Last week, we pointed to a story about business owners who were struggling to survive in New Orleans a year after Hurricane Katrina's devestating blow. Today, a story in the Salt Lake Tribune highlights a different kind of survival: In the weeks following the disaster, these owners packed up their businesses and got out of New Orleans. Though some had plans to return, all of them ended up finding permanent homes for their businesses in new cities.
The panic of the early days is still fresh on their minds. "You think, this can't be happening, when you slip and fall in the grime and you're covered with who knows what, and there's no running water to wash it off with," says Christine MCAtte, owner of Adventures in Adveritising/Insignia Marketing, which is now based in The Woodlands, Texas. Greg Mangiaracina moved his business, A-Pro Home Inspection Services, to San Antonio, Texas, and hasn't looked back. "I can't put my family through this again," he says.
Relocating wasn't easy, but facing the choice of a city without basic services and sky-high real estate costs, these business owners say they made the only choice they had.
The panic of the early days is still fresh on their minds. "You think, this can't be happening, when you slip and fall in the grime and you're covered with who knows what, and there's no running water to wash it off with," says Christine MCAtte, owner of Adventures in Adveritising/Insignia Marketing, which is now based in The Woodlands, Texas. Greg Mangiaracina moved his business, A-Pro Home Inspection Services, to San Antonio, Texas, and hasn't looked back. "I can't put my family through this again," he says.
Relocating wasn't easy, but facing the choice of a city without basic services and sky-high real estate costs, these business owners say they made the only choice they had.
State of the Small-Business Economy
A new survey about the small-business take on the U.S. economy reveals similar findings to what we've been hearing recently: Things are OK, not bad, not great. According to a survey by Discover Business Card, small-business owners are more optimistic about the overall economy than the general population: 39 percent of business owners rate the economy as "excellent" or "good," compared to 34 percent for the general population. But in looking into their crystal balls, almost 60 percent of small-business owners surveyed feel economic conditions are getting worse.
This recent news is in-line with results from the monthly NFIB Small-Business Economic Trends. While small-business optimism took a dip in May and June, it crept back up again in July signaling that business owners aren't quite sure what to make of the current market. Luckily the Fed is responding by raising interest rates in hopes of slowing demand enough to keep firms from raising prices, thus staving any worries of rising inflation.
In the meantime, small-business owners will keep plugging away--and serving as the most reliable indicators to where the economy is headed.
This recent news is in-line with results from the monthly NFIB Small-Business Economic Trends. While small-business optimism took a dip in May and June, it crept back up again in July signaling that business owners aren't quite sure what to make of the current market. Luckily the Fed is responding by raising interest rates in hopes of slowing demand enough to keep firms from raising prices, thus staving any worries of rising inflation.
In the meantime, small-business owners will keep plugging away--and serving as the most reliable indicators to where the economy is headed.
Do's and Don'ts of Selling to Women
If you have customers, don't miss the guest columnist's post on the Small Business Trends blog. Author Mary Hunt offers 5 Do's and 5 Don'ts when selling to women small-business owners. Most of the advice is common sense but it's always good to be reminded of basic selling tips.
Hunt urges sellers to protect their "cyber karma" since women use word-of-mouth referrals far more than men. "Email and blogs have upped that communication ante. Make sure they leave your office, phone call or website happy--or at least not ticked," she writes.
She also offers a good piece of advice when selling to any customer (male or female): Don't overlook the power of "thank you."
Hunt urges sellers to protect their "cyber karma" since women use word-of-mouth referrals far more than men. "Email and blogs have upped that communication ante. Make sure they leave your office, phone call or website happy--or at least not ticked," she writes.
She also offers a good piece of advice when selling to any customer (male or female): Don't overlook the power of "thank you."
The Business of Security
Five years and one day ago, Chuck Call, CEO of Albuquerque-based ICx MesoSystems, could have never guessed how his business would change. In the five years since the terrorist attacks of Sept. 11, the company has sold about 600 of its air-sampling devices, which are capable of sniffing out bioterrosim agents, to federal, state and local agencies, driving up ICx’s sales this year to $7 million.
According to a story in USA Today, the events of 9/11 caused the homeland security business to boom. The industry now accounts for more annual revenue than the movei-making or music industries.
Though corporations have been the big winners of government contracts, small businesses have gained their share of new business as well. In the last fiscal year (which ended in June) small businesses accountd for 33 percent of all contract dollars spent by the U.S. Department of Homeland Security. That exceeds the U.S. Small Business Administration's goal of having 25 percent of all contracts go to small companies.
According to a story in USA Today, the events of 9/11 caused the homeland security business to boom. The industry now accounts for more annual revenue than the movei-making or music industries.
Though corporations have been the big winners of government contracts, small businesses have gained their share of new business as well. In the last fiscal year (which ended in June) small businesses accountd for 33 percent of all contract dollars spent by the U.S. Department of Homeland Security. That exceeds the U.S. Small Business Administration's goal of having 25 percent of all contracts go to small companies.
Small-Business Optimism Faltering
As the weather cools off, so does the optimism of America's small-business owners. In August, NFIB's Small-Business Optimism Index fell more than two points to 95.9, the lowest reading recorded since March 2003.
Borrowing difficulites seem to be the main trigger of the downward turn. Regular borrowing activity was reported by 46 percent of owners, up eight points from July, and the highest level recorded in the survey's 20-year history.
"Credit has become more expensive. It's significant that more owners want it and a higher percentage of owners are having a tougher time getting it," said Bill Dunkelberg, NFIB's chief economist. "Owners expect the coming months to bring increased borrowing difficulties."
Two positive signs in the monthly survey: the percent of firms with unfilled job openings and the percent of owners planning to create new jobs.
Borrowing difficulites seem to be the main trigger of the downward turn. Regular borrowing activity was reported by 46 percent of owners, up eight points from July, and the highest level recorded in the survey's 20-year history.
"Credit has become more expensive. It's significant that more owners want it and a higher percentage of owners are having a tougher time getting it," said Bill Dunkelberg, NFIB's chief economist. "Owners expect the coming months to bring increased borrowing difficulties."
Two positive signs in the monthly survey: the percent of firms with unfilled job openings and the percent of owners planning to create new jobs.
We're from the government, and we're here to help
Finally, something from the federal government that is useful for small-business owners. Business.gov, dubbed as "the official business link to the U.S. government," relaunches today, providing one-stop shopping for business owners looking for information on how to comply with government regulations.
Managed by the Small Business Administration, Business.gov compiles information from 21 federal agencies in an effort to improve the way the federal government serves citizens and businesses.
First launched in 2004, Business.gov originally focused on resources for starting, growing and managing a business. But focus groups revealed that what business owners really wanted was help dealing with the all the paperwork and rules about running a business. The easy-to-navigate site is divided into topics and industries.
Managed by the Small Business Administration, Business.gov compiles information from 21 federal agencies in an effort to improve the way the federal government serves citizens and businesses.
First launched in 2004, Business.gov originally focused on resources for starting, growing and managing a business. But focus groups revealed that what business owners really wanted was help dealing with the all the paperwork and rules about running a business. The easy-to-navigate site is divided into topics and industries.
Friday, October 30, 2009
Small Business Optimism Bounces Back
Small business hopes rebounded in September as the NFIB Small-Business Optimism Index rose 3.5 points to a more normal level of 99.4. "This confirms the slowdown in the economy anticipated in the July survey – down, but not out," said NFIB Chief Economist and MyBusiness magazine columnist William Dunkelberg. The Index, bouncing back to near its 30-year average, was lifted by positive movement among six components including the outlook for an improved economy, favorable earnings and higher sales. Inflation pressure also eased.
What Tops Your List?
Are you more worried about the cost of a tank of gas or a visit to the doctor's office? According to a new study by PNC Financial Services, energy has overtaken health-insurance costs as the No. 1 problem small- and mid-sized business owners want to see addressed in the miderm elections.
USA Today's blog points out that the survey was conducted before energy prices fell (before they started to rise again). But as cold weather sets in (and as prices likely continue to rise) energy-cost concerns won't be going away any time soon.
NFIB monitors what small-business owners are thinking in its Problems and Priorities surveys. In the most recent edition, health-care costs still topped the list (while energy came in at No. 4). But the top spots on this survey are a lot like the college football top 25--any number of teams deserve the No. 1 spot (except, unfortunately, my Auburn Tigers).
USA Today's blog points out that the survey was conducted before energy prices fell (before they started to rise again). But as cold weather sets in (and as prices likely continue to rise) energy-cost concerns won't be going away any time soon.
NFIB monitors what small-business owners are thinking in its Problems and Priorities surveys. In the most recent edition, health-care costs still topped the list (while energy came in at No. 4). But the top spots on this survey are a lot like the college football top 25--any number of teams deserve the No. 1 spot (except, unfortunately, my Auburn Tigers).
A Heavy Load
Belt-tightening at the pump takes on a whole new meaning thanks to a study released by the University of Illinois. Researchers found that Americans are using nearly 1 billion more gallons of gasoline each year than they did in 1960 because of expanding waistlines, according to this AP article. More weight makes for lower gas mileage, so your arteries aren't the only thing you'll save if you pass on that super-sized burger combo.
"The bottom line is that our hunger for food and our hunger for oil are not independent," says study co-author Sheldon Jacobson. "There is a relationship between the two."
Recent trends in consumer-driven health plans have some small businesses looking at the value of promoting wellness habits among employees. As gas prices continue to rise, healthy eating habits might not only affect your insurance premiums--they could affect your fleet's fuel bills as well.
"The bottom line is that our hunger for food and our hunger for oil are not independent," says study co-author Sheldon Jacobson. "There is a relationship between the two."
Recent trends in consumer-driven health plans have some small businesses looking at the value of promoting wellness habits among employees. As gas prices continue to rise, healthy eating habits might not only affect your insurance premiums--they could affect your fleet's fuel bills as well.
Small-Business Optimism Spikes in October
With elections just a few days away, one issue that doesn't seem to be bothering small-business owners is the economy. A Discover Small Business Watch survey released today found that during the past month business owners reported big jumps in cash flow and a greater willingness to invest in business development. Forty-four percent rated the economy as "excellent" or "good." Sixty-one percent reported they had no cash-flow issues.
This survey is a little more upbeat than the most recent numbers available from NFIB's Small-Business Optimism Index. In September, NFIB reported that while the labor market was very strong, small-business owners were less confident about the overall economy. The Optimism Index rose from the August reading, but NFIB Chief Economist Bill Dunkelberg remained cautious.
Now with the stock market experiencing robust growth in recent weeks and the Fed keeping inflation in check, business owners seem to be responding with greater certainty about their economic futures.
This survey is a little more upbeat than the most recent numbers available from NFIB's Small-Business Optimism Index. In September, NFIB reported that while the labor market was very strong, small-business owners were less confident about the overall economy. The Optimism Index rose from the August reading, but NFIB Chief Economist Bill Dunkelberg remained cautious.
Now with the stock market experiencing robust growth in recent weeks and the Fed keeping inflation in check, business owners seem to be responding with greater certainty about their economic futures.
Which States Are Best for Business?
The Tax Foundation, a nonpartisan, nonprofit research organization that monitors tax policy, recently named the best--and worst--states for business in its 2007 State Business Tax Climate Index. Wyoming topped the "business-friendly" list, while Rhode Island came in as the worst in the rankings. The foundation measured the competitiveness of each state’s tax system in five different sectors: corporate tax, individual income tax, sales tax, unemployment tax and property tax.
According to the foundation, the 10 best states for business are: Wyoming, South Dakota, Alaska, Nevada, Florida, Texas, New Hampshire, Montana, Delaware and Oregon. The 10 worst states are: Minnesota, Maine, Iowa, Nebraska, California, Vermont, New York, New Jersey, Ohio and Rhode Island. Read the full report here.
With Election Day less than a week away, NFIB is fighting for candidates who can deliver tax relief for small business. Read more about the tax issues that matter most to small-business owners here.
According to the foundation, the 10 best states for business are: Wyoming, South Dakota, Alaska, Nevada, Florida, Texas, New Hampshire, Montana, Delaware and Oregon. The 10 worst states are: Minnesota, Maine, Iowa, Nebraska, California, Vermont, New York, New Jersey, Ohio and Rhode Island. Read the full report here.
With Election Day less than a week away, NFIB is fighting for candidates who can deliver tax relief for small business. Read more about the tax issues that matter most to small-business owners here.
Online Holiday Shoppers Seek Small-Business Sites
I'm already tired of Christmas music, and that makes me sad. For the past few weeks, I've heard Bing Crosby crooning in most of my local retail shops. Can't we eat the leftover turkey before we pull out the Christmas lights? Guess not.
The music, the decorations and the crowds mean one thing: Holiday shoppers are coming. Each year, retailers set their sights (and sites) on topping their previous year's sales records, and the 2006 holiday shopping season is no exception.
The good news for small business is that online shoppers aren't only drawn to national retailers. In fact, 75 percent of holiday shoppers said they are likely to purchase gifts online this year from small businesses, according to a Yahoo Small Business survey conducted by Harris Interactive (press release link). Topping shoppers' wish lists: secure payment systems, easy customer checkout and free shipping.
If you want to find tips on increasing your ecommerce, visit this section of the NFIB.com's Business Toolbox. Better get started soon before Valentine candy boxes fill stores.
The music, the decorations and the crowds mean one thing: Holiday shoppers are coming. Each year, retailers set their sights (and sites) on topping their previous year's sales records, and the 2006 holiday shopping season is no exception.
The good news for small business is that online shoppers aren't only drawn to national retailers. In fact, 75 percent of holiday shoppers said they are likely to purchase gifts online this year from small businesses, according to a Yahoo Small Business survey conducted by Harris Interactive (press release link). Topping shoppers' wish lists: secure payment systems, easy customer checkout and free shipping.
If you want to find tips on increasing your ecommerce, visit this section of the NFIB.com's Business Toolbox. Better get started soon before Valentine candy boxes fill stores.
Small-Business Optimism Continues to Grow
Small-business owners are full of holiday cheer as we enter the last month of 2006. Two recently released surveys show small-business owners' confidence in the U.S. economy continues to rise.
The Discover Small Business Watch survey saw an increase for the fourth straight month, with almost half of respondents rating the U.S. economy as "excellent" or "good." November's spike came from a substantial spike in the number of owners who think economic conditions for their businesses will improve during the next six months.
The latest Small-Business Economic Trends report from NFIB's Research Foundation also measured an uptick in confidence last month, rising 1.3 points to 100.7 (which is close the 30-year average of 100.2). "The domestic economy is hardly on the ropes, even with a weak housing market," the Foundation says.
The Discover Small Business Watch survey saw an increase for the fourth straight month, with almost half of respondents rating the U.S. economy as "excellent" or "good." November's spike came from a substantial spike in the number of owners who think economic conditions for their businesses will improve during the next six months.
The latest Small-Business Economic Trends report from NFIB's Research Foundation also measured an uptick in confidence last month, rising 1.3 points to 100.7 (which is close the 30-year average of 100.2). "The domestic economy is hardly on the ropes, even with a weak housing market," the Foundation says.
Five Ways to Predict Business Success
None of us can see into the future (and that's not a bad thing when you think about it). But if you're working hard, yet feel like you're not getting anywhere with your business, good news. Forget about predicting the future. New research from Six Disciplines Corporation finds that success might can be boiled down to just five attributes.
Small Business Trends Blog editor Anita Campbell recently revealed the traits most often shared by successful businesses with 10 to 100 employees. The first four are no surprise: a strong leadership team, the ability to attract and retain quality employees, a disciplined approach to business and strategic use of technology. But like Campbell, you might be surprised by the fifth: the wise use of trusted outside providers.
If you're trying to do it all yourself, relax--and seek help. The smartest businesspeople know that no one knows everything. Find advisors you trust and tap into their knowledge. Your future will look brighter.
Small Business Trends Blog editor Anita Campbell recently revealed the traits most often shared by successful businesses with 10 to 100 employees. The first four are no surprise: a strong leadership team, the ability to attract and retain quality employees, a disciplined approach to business and strategic use of technology. But like Campbell, you might be surprised by the fifth: the wise use of trusted outside providers.
If you're trying to do it all yourself, relax--and seek help. The smartest businesspeople know that no one knows everything. Find advisors you trust and tap into their knowledge. Your future will look brighter.
Give a Gift to Your Community: Shop Locally
I keep thinking I'm done with my holiday shopping--and then I remember a few more things on my list. My goal is to knock it all out this weekend so that I can relax and actually enjoy the last week before Christmas. When I head out on Saturday morning, I'm going to make sure to shop first at locally owned stores. Not only will I avoid the parking-lot madness and massive crowds that overtake the mall and big-box stores, I'll also be supporting a small-business owner who contributes to my community. Need more convincing? Check out NFIB's five reasons you should shop local businesses this holiday season
A Great Year for Small Business, And Many More to Come
Small-business owners around the world may have different views of the current business climate and different challenges to face in the new year, but there is one thing that they all share: optimism.
MasterCard's annual Global Small Business Survey revealed that small-business owners feel hopeful about the upcoming year and confident they will meet financial goals in 2007. While 27 percent named competition as the biggest challenge ahead, more than half believe that globilizing their business will help them overcome this and acheive even more success. One interesting finding: the number of hours that business owners spend on administration is often proportional to the number of employees they manage, with most spending about 18 hours (in a 50-hour week). The survey, which polled 4,000 small-business owners worldwide, also details how regional differences affect small business around the world.
As for us here at MyBusinessmag.com, it's been a great year. Thanks for sticking with us through the changes to our Web site and, as always, thank you for your continued readership. Check back with us on January 2 for more of the latest news, tips and resources to help you run your small business. Until then, have a Merry Christmas and a Happy New Year!
MasterCard's annual Global Small Business Survey revealed that small-business owners feel hopeful about the upcoming year and confident they will meet financial goals in 2007. While 27 percent named competition as the biggest challenge ahead, more than half believe that globilizing their business will help them overcome this and acheive even more success. One interesting finding: the number of hours that business owners spend on administration is often proportional to the number of employees they manage, with most spending about 18 hours (in a 50-hour week). The survey, which polled 4,000 small-business owners worldwide, also details how regional differences affect small business around the world.
As for us here at MyBusinessmag.com, it's been a great year. Thanks for sticking with us through the changes to our Web site and, as always, thank you for your continued readership. Check back with us on January 2 for more of the latest news, tips and resources to help you run your small business. Until then, have a Merry Christmas and a Happy New Year!
Two-Thirds of Employees Consider New Jobs in 2007
No matter how great of a boss you think you are, chances are, lots of your employees would take a better offer if it came along. Two-thirds of all employed U.S. working adults are open to changing jobs in 2007, according to a new Yahoo/Hot Jobs survey. Low unemployment rates and rising wages were the main reasons why 70 percent of those surveyed think 2007 is an ideal time to find a new opportunity.
For small businesses, replacing employees is extremely time consuming. Every position counts--small employers don't have a lot of fluff in their staffs. If replacing a few employees sounds like the last thing you want to do this year, find ways to keep them satisfied before they actually pursue new jobs. We've all read the surveys on how salary isn't necessarily the No. 1 reason people are happy with their jobs, but check out this article from the latest issue of MyBusiness to make sure that money isn't the reason your employees start checking out the want ads.
For small businesses, replacing employees is extremely time consuming. Every position counts--small employers don't have a lot of fluff in their staffs. If replacing a few employees sounds like the last thing you want to do this year, find ways to keep them satisfied before they actually pursue new jobs. We've all read the surveys on how salary isn't necessarily the No. 1 reason people are happy with their jobs, but check out this article from the latest issue of MyBusiness to make sure that money isn't the reason your employees start checking out the want ads.
The Business of Beating Terrorists
The U.S. military thinks your business may hold some secrets about how to win the war on terror. A recent USA Today article suggests that it's not off base to think the solutions for winning the war on terrorism may be found within our country's capitalist society--ironically, the very values terrorists purport to hate.
Why is the military looking to businesses, especially small businesses? Because, as the article explains, "the world of geopolitics has discovered itself to be on the same road that business has been on for some time. That road is flatter, more networked and more decentralized than ever."
By looking at how small companies like YouTube, Skype and Wikipedia are giving old giants in their industries a run for their money, the military hopes to gain some ideas it can use to fight al-Qaeda and other terrorist organizations.
Why is the military looking to businesses, especially small businesses? Because, as the article explains, "the world of geopolitics has discovered itself to be on the same road that business has been on for some time. That road is flatter, more networked and more decentralized than ever."
By looking at how small companies like YouTube, Skype and Wikipedia are giving old giants in their industries a run for their money, the military hopes to gain some ideas it can use to fight al-Qaeda and other terrorist organizations.
Small-Business Optimism Fades
Small-business owners ended 2006 on a serious note, according to the latest NFIB Research Foundation Small-Business Economic Trends Report. Declines in job-creation plans as well as a drop in the number of business owners who expected the economy to improve sent the Small-Business Optimism level down 3.2 points to 96.5 (1986=100).
October readings showed near record-high rates of business owners planning to create new jobs. But by December, that number dropped sharply to just 10 percent. Ten percent of the owners reported that the availability of qualified labor was their top business problem, down two points from November and five points from October, indicating that labor market conditions may be easing.
Read more about what the survey predicts about the first quarter of this year here.
October readings showed near record-high rates of business owners planning to create new jobs. But by December, that number dropped sharply to just 10 percent. Ten percent of the owners reported that the availability of qualified labor was their top business problem, down two points from November and five points from October, indicating that labor market conditions may be easing.
Read more about what the survey predicts about the first quarter of this year here.
Bush Unveils Ideas to Lower Health-Care Costs
Last night was one of those rare occasions in my house where we ate dinner in front of the television. I usually make my husband turn off whatever ball game is on so that we can have a civilized discussion about our days. But we broke the rule last night so that we could watch the president's State of the Union address (we live on the West Coast, so it was on during our dinner time).
In addition to hearing what Bush had to say, it was also fun to watch the sideshows: Obama was seated directly in front of Clinton. Did you notice how that basketball player towered over Laura Bush?! And how cool that the president pointed to a successful small-business owner--the founder of Baby Einstein. Even more impressive: NFIB member Joe Balsarotti and his employee Dan Jones were among the guests included in the first lady's viewing box.
Bush outlined a lot of important initiatives, but none hit as close to home for small businesses as his health-insurance plans. Independent-business owners don't have to be told there's a crisis in this country. Maybe this Congress will finally solve it instead of fighting about it. In case you missed it, here's his speech in its entirety. And check out NFIB's response to the president's health-care plans.
In addition to hearing what Bush had to say, it was also fun to watch the sideshows: Obama was seated directly in front of Clinton. Did you notice how that basketball player towered over Laura Bush?! And how cool that the president pointed to a successful small-business owner--the founder of Baby Einstein. Even more impressive: NFIB member Joe Balsarotti and his employee Dan Jones were among the guests included in the first lady's viewing box.
Bush outlined a lot of important initiatives, but none hit as close to home for small businesses as his health-insurance plans. Independent-business owners don't have to be told there's a crisis in this country. Maybe this Congress will finally solve it instead of fighting about it. In case you missed it, here's his speech in its entirety. And check out NFIB's response to the president's health-care plans.
Forever Young--And Successful
"What did you do this weekend?" "Oh, raised $4.1 million in venture funding for my new Web site." I don't know about you, but I didn't have too many conversations like this in high school. Yet last week, investors announced they were sinking cash--and lots of it--into myYearbook.com, a site created by 17-year-old Catherine Cook that lets teens create their own digital yearbooks.
Teenagers today are proving that age isn't a barrier to the business world if you have a good idea and know how to execute it. The NFIB Young Entrepreneur Foundation hears stories of amazing young businesspeople all the time. Joe Pascaretta, a former winner of the Foundation's annual scholarship award, didn't waste his first semester of college skipping class and eating pizza. Instead, the University of Michigan freshman's landscaping firm grew more than 239 percent to gross more than $1 million in 2006. Kind of puts to shame that "B" in biology that I was so proud to earn my freshman semester.
Teenagers today are proving that age isn't a barrier to the business world if you have a good idea and know how to execute it. The NFIB Young Entrepreneur Foundation hears stories of amazing young businesspeople all the time. Joe Pascaretta, a former winner of the Foundation's annual scholarship award, didn't waste his first semester of college skipping class and eating pizza. Instead, the University of Michigan freshman's landscaping firm grew more than 239 percent to gross more than $1 million in 2006. Kind of puts to shame that "B" in biology that I was so proud to earn my freshman semester.
Somebody's Eyes Are Watching
Small-business owners beware: The IRS is watching you. An article in American Business Daily explains that members of the Senate Finance Committee recently asked the IRS to come up with a plan for closing the estimated $290 million tax gap (the difference between what federal taxpayers owe and what they actually pay). Upon hearing its assignment, the agency pointed to business owners as the biggest source of the problem, claiming that underreported business income makes up one-third of the tax gap.
This issue has NFIB written all over it--the small-business advocacy group refuses to stand by and let the government balance its books on the backs of independent-business owners. A story in the current issue of MyBusiness magazine explains why the IRS is barking up the wrong tree.
This issue has NFIB written all over it--the small-business advocacy group refuses to stand by and let the government balance its books on the backs of independent-business owners. A story in the current issue of MyBusiness magazine explains why the IRS is barking up the wrong tree.
How Current Employees Can Help You Fill Job Openings
Eighty-two percent of business owners surveyed in the most recent NFIB Small-Business Economic Conditions poll said there were few or no qualified applicants to fill open positions within their businesses. Such a tight labor market forces owners to come up with creative recruitment methods.
Some start with proven success stories: star employees. Why not ask them if they have friends or family looking for a job? While this Arizona Republic article points out a few situations to avoid (don't hire someone's aunt just because she "needs a job"), asking reliable employees for applicant referrals might help you fill that open position faster.
Some start with proven success stories: star employees. Why not ask them if they have friends or family looking for a job? While this Arizona Republic article points out a few situations to avoid (don't hire someone's aunt just because she "needs a job"), asking reliable employees for applicant referrals might help you fill that open position faster.
The Six Best Places to Find Funding for Your Business
While running errands downtown this weekend, I found a five-dollar bill on the sidewalk. I hesitated when I saw it--should I pick it up? Am I being watched by some sort of hidden-camera show to see what people will do when they don't know they're being watched? Since it was only five dollars and since no one around seemed to have lost any money, I picked up, chalking it up to a lucky day for me.
Unfortunately for small-business owners, finding capital isn't as easy. But the good news is that funding is available--if you know where to look. Check out SmartMoney.com's special section on the six best places to find capital for your business.If you know you just need a loan, then this article from a past issue of MyBusiness can help. We break down the difference in the loans available from the Small Business Administration
Unfortunately for small-business owners, finding capital isn't as easy. But the good news is that funding is available--if you know where to look. Check out SmartMoney.com's special section on the six best places to find capital for your business.If you know you just need a loan, then this article from a past issue of MyBusiness can help. We break down the difference in the loans available from the Small Business Administration
Changing the Face of Business Education
Small business is all the rage these days, especially on college campuses. Ten years ago, business programs at most universities were preparing students to work for large corporations, but all that has changed, says this article in the Startup Journal. Many institutions are revamping their business programs to appeal to the desires of a new entrepreneurial-minded generation. So what sparked the shift in business education?
“We’ve got a generation coming up that has a very different outlook on life than the one before it,” Belmont University’s Jeffrey Cornwall told the Startup Journal. “They’re more interested in balancing their work with their family life, and that makes entrepreneurship attractive to them.”
Want to help future entrepreneurs with their studies? Consider sponsoring a scholarship or a student for NFIB’s Young Entrepreneur Awards, given annually each spring to set future small-business owners on the path to entrepreneurship. Find out about other ways NFIB is encouraging young entrepreneurs—and ways you can help—at NFIB.com/YEF.
“We’ve got a generation coming up that has a very different outlook on life than the one before it,” Belmont University’s Jeffrey Cornwall told the Startup Journal. “They’re more interested in balancing their work with their family life, and that makes entrepreneurship attractive to them.”
Want to help future entrepreneurs with their studies? Consider sponsoring a scholarship or a student for NFIB’s Young Entrepreneur Awards, given annually each spring to set future small-business owners on the path to entrepreneurship. Find out about other ways NFIB is encouraging young entrepreneurs—and ways you can help—at NFIB.com/YEF.
A Taxing Situation for Business Owners
The month of April is in full swing, and one dreadful word is on everyone’s mind—taxes. With the deadline looming, many small-business owners find themselves adding extra stress to their load.According to the March Discover Small Business Watch survey, 77 percent of small-business owners find keeping up with taxes a stressful and time-consuming ordeal. In order to avoid the distractions, 73 percent hire a tax professional to take care of the hassle instead.The survey also mentions how small business owners prefer to find a trustworthy accounting firm to file their taxes. For an overview on the survey, check out Andrea Coombes’ article
Southeastern Cities Top List of Best Places for Business
When I worked in New York City for a few years after college, one of my colleagues (who was born and raised in Brooklyn) was fascinated by my Southern roots. She'd never been south of Washington, D.C., and often asked me questions like, "Do you have stores in your town?" I'm sure she was imagining a land of cows pastures and dirt roads. While both of those exist in my hometown, so does a lot of booming industry--which is why for the second year in a row, the Southeast dominated the top 10 list of Forbes magazine's best places for business. Raleigh, N.C., snagged the No. 1 spot, while four other Southern cities ranking in the top 10 as well (including Nashville, Tenn., home of MyBusiness headquarters). Lower business costs, a highly educated workforce and affordable housing are just some of the criteria researchers used to rank the cities. Y'all are welcome to visit any time to see what all the fuss is about.
Small Manufacturers Compete by Innovating
With so many corporate manufacturing plants moving overseas, it seems hard to believe that there is much room for small-business growth in the manufacturing sector. But a recent survey by the Kauffman Foundation proves otherwise. The survey found that manufacturing sales have risen 20 percent between 2002 and 2006 and 70 percent of all U.S. manufacturers have 20 employees or fewer.
So how are they managing to grow despite the overseas competition? According to this article by Phaedra Hines for Fortune Small Business, many successful small manufacturers are coming up with creative ways to produce products rapidly and keep customers happy.
So how are they managing to grow despite the overseas competition? According to this article by Phaedra Hines for Fortune Small Business, many successful small manufacturers are coming up with creative ways to produce products rapidly and keep customers happy.
Reinventing Your Business
So, sales are slow? You've hit a dead end with your business? If either of these concerns have been weighing on your mind lately, it might be time to reinvent your business. Easier said than done, right? According to a Newsday article by Jamie Herzlich, pulling off this magic trick isn't as difficult as it might seem—as long as you take the proper steps and don't go changing your business willy-nilly. Herzlich recommends this strategy:
•Keep your eyes and ears open in the marketplace for signs about which direction to go•Talk to employees, customers and suppliers to isolate the growth opportunities in your business/industry•Evaluate your weaknesses and play your strengths, looking for joint ventures and strategic partnerships with complementary businesses•Test new products/services on existing customers, then look for ways to expand your reach
Glean more insight on how to reinvent your business in our Dec./Jan feature, "Changing Lanes." We explore how owners of a bowling alley, a deli and a document storage and retrieval business took their companies from bust to boom.
•Keep your eyes and ears open in the marketplace for signs about which direction to go•Talk to employees, customers and suppliers to isolate the growth opportunities in your business/industry•Evaluate your weaknesses and play your strengths, looking for joint ventures and strategic partnerships with complementary businesses•Test new products/services on existing customers, then look for ways to expand your reach
Glean more insight on how to reinvent your business in our Dec./Jan feature, "Changing Lanes." We explore how owners of a bowling alley, a deli and a document storage and retrieval business took their companies from bust to boom.
Living Life on Vacation
As school starts around the country for many this week, the realization that summer is almost over sets in. Around this time of year, I always wish I'd have taken just a few more trips--to the lake, to the beach, to anywhere really. For a growing number of Americans, the desire to get away has inspired them to do what most of us just dream about: Pack it all up and move to somewhere fun and fabulous.
This New York Times article (subscription required) explains that "as technology enables people to live and work wherever they want, increasingly they are clustering in resort playgrounds that have natural amenities, good weather--and, now, lots of people like themselves."
The advantages to living in a resort town are endless, I'm sure. Yet the realist in me knows the cost of living can be crazy expensive in a lot of these places. It's an interesting spin on an exit strategy though. And if your small business is portable and your banking account supports it, why not?
This New York Times article (subscription required) explains that "as technology enables people to live and work wherever they want, increasingly they are clustering in resort playgrounds that have natural amenities, good weather--and, now, lots of people like themselves."
The advantages to living in a resort town are endless, I'm sure. Yet the realist in me knows the cost of living can be crazy expensive in a lot of these places. It's an interesting spin on an exit strategy though. And if your small business is portable and your banking account supports it, why not?
Fewer Sign up for Unemployment Benefits
Two thousand fewer people applied for unemployment insurance for the week ending Aug. 18, according to this BusinessWeek article. According to the Department of Labor, this marks the first drop in new unemployment claims in about a month.
The NFIB Research Foundation recently released results of a poll measuring unemployment compensation, also finding fewer workers leaving their place of employment. The poll found that during the last year, nearly half of all small businesses experienced no employee turnover. Seventy-three percent of the small businesses did not fire any workers, and 87 percent did not have to lay anyone off for economic reasons.
The NFIB Research Foundation recently released results of a poll measuring unemployment compensation, also finding fewer workers leaving their place of employment. The poll found that during the last year, nearly half of all small businesses experienced no employee turnover. Seventy-three percent of the small businesses did not fire any workers, and 87 percent did not have to lay anyone off for economic reasons.
Small Businesses Feel Hiring Crunch
My mom and dad have owned a staffing firm for almost 20 years. They're some of the few small-business owners who benefit from extremely low unemployment rates (when businesses have trouble filling open jobs, they're more likely to use a recruiting service). It sounds like the owner of this McDonald's franchise in Helena, Mont., could use my mom and dad's help. According to the AP story, John Francis had such trouble finding workers that he outsourced the drive-thru window to a telemarketing service in Texas.
The NFIB Research Foundation's monthly Small-Business Economic Trends survey (which has tracked small-business hiring plans since its inception in 1986) found that 23 percent of business owners had unfilled jobs in August.
The NFIB Research Foundation's monthly Small-Business Economic Trends survey (which has tracked small-business hiring plans since its inception in 1986) found that 23 percent of business owners had unfilled jobs in August.
The Results Are In
Every month, the Discover Small Business Watch compiles information gathered from telephone interviews and surveys with small-business owners and consumers of small-business products and services. This data helps gauge the levels of economic confidence and the status of business growth and spending according to small-business owners. Such information can help you make informed decisions that will help your business grow and withstand adverse economic conditions. Here are some highlights of August's results:
35 percent said recent changes in the housing market have had a significant impact on their business.
69 percent of small-business owners said they prefer to have their business remain small.
41 percent said they have experienced cash-flow issues in the last 90 days, an increase over last month’s 35 percent.
36 percent of small-business owners feel that economic conditions for their businesses are getting better, a significant decrease from 41 percent in July.
Visit Discover's business Web site to learn more about the August survey.
35 percent said recent changes in the housing market have had a significant impact on their business.
69 percent of small-business owners said they prefer to have their business remain small.
41 percent said they have experienced cash-flow issues in the last 90 days, an increase over last month’s 35 percent.
36 percent of small-business owners feel that economic conditions for their businesses are getting better, a significant decrease from 41 percent in July.
Visit Discover's business Web site to learn more about the August survey.
How Male and Female Business Owners Are Different
Men and women are different--and driving across the country with my husband only reinforced that idea. While I wanted to turn around as soon as we thought we were headed in the wrong direction, make hotel reservations before we arrived in a town, and stop to use the restroom more than once a day--he didn't. Both of our methods for cross-country travel would take one from point A to point B--just in different ways.
So I wasn't surprised at all to see a study released last week from the SBA Office of Advocacy that found while gender doesn't affect new venture performance in a small business, several factors vary between men and women business owners, including expectations, motivations and reasons for starting a business.
So I wasn't surprised at all to see a study released last week from the SBA Office of Advocacy that found while gender doesn't affect new venture performance in a small business, several factors vary between men and women business owners, including expectations, motivations and reasons for starting a business.
Big Corporations Target Small Business
Doesn't it feel good to be appreciated? For years global companies have touted their strategies to lure small-business customers like you. Last week when IBM announced stronger-than-expected third quarter earnings, the company said its sales to small business are making a big difference, according to USA Today's Small Business blog. "I think that took some people by surprise, since IBM is not really known as a small-business vendor," said analyst Charles King, a researcher at Pund-IT. "But they could really get a toe into this market."
Beating the Talent Crisis
Do you know who your high potential workers are today and who your future leaders will be tomorrow? That's the question this CNet News article asks as it explores how businesses can beat the predicted talent crisis our country faces. "The U.S. is estimated to face a 10 million worker shortage in 2010; the 500 largest companies are expected to lose 50 percent of their senior management in five years and the average tenure at one employer for U.S. employees is only three years," Tod Loofbourrow writes.
"Total rewards" packages (which don’t focus exclusively on monetary compensation) are considered one of the best ways to attract and retain star employees. Using benefits to attract talent might depress some small-business owners, whose sky rocketing health-care costs have forced them to cut back--or cut out--health-insurance offerings. But chin up: The article also touches on several ways companies can use culture to instill loyalty among employees.
"Total rewards" packages (which don’t focus exclusively on monetary compensation) are considered one of the best ways to attract and retain star employees. Using benefits to attract talent might depress some small-business owners, whose sky rocketing health-care costs have forced them to cut back--or cut out--health-insurance offerings. But chin up: The article also touches on several ways companies can use culture to instill loyalty among employees.
Consumers Taking Control of Health-Care Costs
We've been living in a rental house for a few months while we're doing some renovations to our home, and I'm embarrassed to admit it--but renting is different. You don't care as much about the carpet, or the yard, or if it takes three tries to hang a picture as you do when it's your house. (Hope my landlord isn't reading this!) I'm confident that I'm a good renter, but having a stake in something changes your perspective. That's exactly what researchers in a new study on consumer-driven health care found, too.
According to a paper published in the Journal of the American Medical Association, CDHPs are "working as intended." The group Consumers for Health Care Choices, which funded the study, says that "all of the empirical evidence shows they are changing patient behavior, which is lowering costs and improving care, and resulting in a sizzling rate of adoption in the market."
That's good news for small-business owners, who have suffered rising health-insurance costs for years. Learn more about all NFIB is doing to help lower costs here.
According to a paper published in the Journal of the American Medical Association, CDHPs are "working as intended." The group Consumers for Health Care Choices, which funded the study, says that "all of the empirical evidence shows they are changing patient behavior, which is lowering costs and improving care, and resulting in a sizzling rate of adoption in the market."
That's good news for small-business owners, who have suffered rising health-insurance costs for years. Learn more about all NFIB is doing to help lower costs here.
Small Business Boosts Economy
In the face of plunging stock prices, a faltering housing market and the soaring cost of gasoline, the fate of the business world does not look promising—unless you’re a small-business owner. According to this New York Times article, a report released by Automatic Data Processing, Inc., and Macroeconomic Advisers reveals that private sector employment is booming, despite the gloom and doom surrounding America’s economic conditions.
Read on to learn how small businesses are keeping the economy afloat and outdoing box stores and large businesses.
Read on to learn how small businesses are keeping the economy afloat and outdoing box stores and large businesses.
The Challenges of Seasonal Businesses
I interviewed the most interesting NFIB member a few weeks ago. The story I was working on was about the rising cost of health care, but during the interview, I spent lots of time learning about this woman's business, the oldest commercial river touring company in the Grand Canyon. Doesn't that sound like a fun business? I immediately envisioned rafting trips and star gazing and being one with nature. Turns out Joy Staveley and her husband, Gaylord, get to do all that--but they also face the same headaches every other business owner faces--affording health insurance, retaining key employees and dealing with government regulations. If you ever daydream of a business you think might be more adventurous than yours, check out this Q&A with the owner of an Alaska tour operation on the WSJ's small-business blog. It gives some great insight on the ups and downs of seasonal businesses.
Thursday, October 29, 2009
Helping the World's Poorest Entrepreneurs
If doing more good was one of your resolutions this year, here's your chance. Kiva is an organization that lets you make microloans to entrepreneurs in the world's poorest countries. You get to pick the business yourself and then loan the money via a credit card. Kiva handles getting the money to partners in the various countries who distribute the money to the business owners. Throughout the payback period, usually six to 12 months, you can receive email journal updates from the business you're helping. Loaning a little can earn great rewards--mostly in the form of a reality check. Because even though owning a small business is the world's hardest job, aren't we lucky to be doing it in the world's greatest country?
Small Business Will Stay Strong in 2008
Despite the woeful tales of real estate crisis, skyrocketing oil prices and tight credit lines surrounding the end of 2007, experts report that the forecast for 2008 is looking slightly brighter—especially for small-business owners. While some small businesses might feel the pressure of a failing housing market and expensive gas prices, few small-business owners have reported problems with credit conditions, says this Entrepreneur.com article.
Gerald Celente, director of the Trends Research Institute, reports that now is the perfect time for small-business owners and entrepreneurs to find their niche, especially with alternative energy poised for a breakthrough.
Having the flexibility to tailor your business to market trends is one great perk of owning your own business. Check out
this article for more information on the 2008 forecast and how it will affect your bottom line.
Keeping Economic Stress Out of the Office
Maybe your business is booming, but that doesn't mean your employees aren't affected by the continued housing woes or the country's potential economic recession. And, chances are, when your employees are experiencing financial problems in their personal lives, the anxiety and emotional overload that sets in can hurt your business—and your bottom line.
When employees at Schaumburg, Ill.-based Quality Float Works, Inc., start to look stressed, vice president Jason Speer offers interest-free loans to help employees get back on track, says this CNN story. By improving their employees' personal lives, Quality Float Works, Inc., makes their home lives easier—and ultimately, that makes for happier, more productive employees.
Are your employees looking worn out or distracted? Check out the article for more information on how you can tell your employees are in financial trouble and what you can do to keep economic problems from intruding into your workplace.
How to Save Money While You Spend It
You have to spend money to make money--and, it turns out, to save money too. As the economy slows, you're probably looking for some belt-tightening measures in your small business. This AP article offers several ideas--the catch is that all of them require you to spend a little upfront.
The Russo Group, a marketing firm in Lafayette, La., hired a CFO whose strict rules reduced expenses by 18 percent in one year. A PR firm in California outsourced all its HR duties to a professional employer organization--a move that saved both time and money. By outsourcing these time-consuming functions, executives could spend more time on their PR business--the best bet for a business trying to stay ahead of a recession.
Wednesday, October 28, 2009
How to Market During a Recession
With every nightly newscast leading with a story about the nation's imminent economic doom, it's hard not to be discouraged about the coming months. If your industry has started to feel the pinch, your initial reaction as a business owner may be to scrap all unnecessary spending--starting with marketing and advertising.
But this article from Harvard Business School's Working Knowledge newsletter discourages that approach. Instead, it emphasizes retooling your campaigns with a more recession-friendly strategy. The eight tips offered here cover ideas like how it's more important than ever to research your customer (don't waste money marketing to the wrong person) and the need to emphasize family values (since we all tend to cozy up at home when we feel uncertain about our economic futures).
11 Tips for Surviving a Down Economy
If you're in real estate, you felt the pinch of a slowing economy months ago. But for many other small business owners, the only indication of a slowdown is in the news. Yet owners like Carol Yenne, who is profiled in this San Francisco Chronicle article, are thinking ahead and taking small steps to protect themselves from any potential setbacks.
For Yenne, it meant waiting to fill shifts left vacant by employees who cut back their hours. Not a drastic move--just one that makes Yenne feel more cautious. Check out these other commonsense tips on how to be smart in times of economic uncertainty.
Green Jobs Bring Life to Sleepy Industrial Towns
This past weekend I traveled to Ohio to visit my family for Easter. During a family party on Saturday night, the conversation inevitably turned to the jobless economy of the small rust belt town where I grew up. if only I had read this Wall Street Journal article before going to visit.
Small industrial towns all over America are suffering the same job losses as my hometown, but it's not time to throw in the towel just yet. According to the article, environmental jobs could be the future for small towns like Hayfork, Calif., which capitalized on green logging in order to bring jobs back to its residents.
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