How Small Businesses Can Capitalize on Cyber Strategies for Profit
Yes, it’s become important for small businesses to capitalize on cyber strategies for profit.
Small and even regional retailers should be cognizant of three realities. Potential customers probably think that national chains have easier-to-shop Web sites with lower prices. This also means that until a national Internet sales tax is passed, many consumers will prefer to shop online.
So, with all retailers depending so heavily on Q4 sales to stay in the black and record numbers of shoppers continuing to buy online each Cyber Monday, cyber strategies are increasingly important.
Nonetheless, a cursory search on the Internet in every sector shows many small retailers and professional service firms, especially law firms, don’t have a strong Web presence.
Many suffer from the following:
- Many have only simple landing pages
- Most don’t have social media acumen
- Even those with Web sites are difficult to navigate
- Poor SEO – search engine optimization
By comparison, large companies have terrific e-commerce sites and display good judgment in social media.
It’s important to understand how marketing has developed in the digital age.
True, traditional media is important. But it’s vital to do something about online consumer trends. A McKinsey study indicates more than four out of five Americans use the Internet to search for information or to buy products.
The Internet has given them more control over their spending with reviews, enhanced abilities for comparison shopping and for moving from an advertiser’s monologue to a dialogue with prospective customers.
Small businesses must create a marketing strategy for a strong presence on Google, which has a 66 percent market share in the U.S. and 90 percent worldwide.
So understand Google’s reasoning for best Web site rankings. Here’s a checklist with 14 Strategies to Rock on Google.
However, in my experience, strategies for optimizing your Web site’s presence on Google also work on Bing and Yahoo.
Expertise in mobile marketing is becoming increasingly valuable for small businesses. Use of smartphones by shoppers is becoming widespread. So make sure your site is compatible for mobile marketing.
Facebook pros and cons
Not to mention the impact of social media playing a role. There are 11 ways to make money on Facebook. However, beware that Facebook can cannibalize and make losers out of small business Web sites.
Further, there are 8 tools to optimize sales with social media, but beware of a red flag.
So, small businesspeople should remember that the key to internet dominance is to think integration.
That often doesn’t include advertising with daily deal sites. They don’t work for substantial numbers of small businesses. Beware of daily deal sites and pricing principles – what’s sustainable and what isn’t.
Meanwhile, the evolving Internet also means it’s important to take safeguards to protect your brand’s image. Poor customer reviews and public relations can kill a company. So understand the best practices to optimize your brand and manage your Web reputation.
Success in sales depends on trust.
To build trust with Internet users, here are three key reminders:
1. Be transparent. List a description of your business including contact information, products, services, location and the names of company principals. That includes your telephone ID numbers for when you make outgoing calls, and disclosing your customer-service policies.
2. Privacy policies are necessary. If you sell online, take every security precaution, respect customer contact preferences, and don’t share customer information.
3. Develop an online media kit. An online media kit is helpful to dialogue with advertisers, clients, customers, journalists and prospects. To make it easy for Internet users to learn about your business, explain your company using the five Ws – who, what, where, when, why and how.
Depending on your sector, there are probably other principles to heed and utilize, but these are the basics for on how small businesses can capitalize on cyber strategies for profit.
From the Coach’s Corner, here’s another resource link:
Why B2B Marketers Like Content Marketing – Study
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”
-Peter F. Drucker
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Small Business Options for Year-End Cash Flow, Tax Benefits
Dec. 2, 2011
December is the month for small business owners to reflect on options for year-end cash flow and tax benefits.
In general, here are items to discuss with your accountant and tax advisor:
Your first concern should be to reduce your tax obligation next April. Unless you already know you have too many write offs, you can further accomplish it with legal strategies to delay income and accelerate your expenses.
Decide what equipment, furniture and supplies you can buy this month.
Unless you have cash flow issues, and if your calendar year is your fiscal year and you run your business on a cash basis, delay mailing your invoices.
If you don’t have a retirement account, establish a qualified plan. It’s important for diversity in a downturn or when times are good. This will help your tax picture, as well.
If you’re considering updating your bookkeeping and technology systems, do it before the end of the year. In this way, you’ll make it easier to start fresh for the New Year. You’ll want to segregate your old records from the new.
As for financing any new equipment purchases, do your due diligence. Determine your best options for financing, as well as for your tax situation.
Understand how the IRS will view your situation in terms of Section 179 depreciation deductions and bonus depreciation.
In addition to understanding the pros and cons of possible tax incentives, know your credit situation. For the best credit worthy businesses, lease financing might be a viable option. But it’s getting more complicated with financial institutions than in past years.
Weigh the possible benefits for acquiring new equipment. You’ll need to make a financial forecast.
If you do buy or lease, it also goes without saying to comparison shop all fees, rates, and terms. Avoid paying so-called application fees.
Should you decide to buy from different vendors, consider grouping all the purchases into one package, which means you’ll benefit from lower fees and rates.
Consider these options small business options for year-end cash flow and tax benefits. But remember it’s not tax advice for your situation. Again, see your accountant and tax advisor for counsel as part of your decision-making.
From the Coach’s Corner, here are related resource links:
Tax Tips for Your 2011 Year-End Tax Planning
Budgeting Basics for a Micro Business
Why Accounting, Finance Can be Ideal Careers for Women
12 Tips for Profits to Keep Your Business Dreams Alive
“If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don’t get wet you can keep.”
-Will Rogers
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Beware: Small Businesses Lose $2.9 trillion to Worker Fraud
Fraud is reaching epidemic proportions at small companies, which are fleeced by an aggregate $2.9 trillion. That’s the estimate in a 2011 study from the Association of Certified Fraud Examiners (ACFE).
ACFE reports the median loss is $150,000, or 5 percent of the annual revenue. Some 30 percent of the companies have 100 or fewer workers.
To add insult to the proverbial injury for such businesses, 25 percent of the persons responsible for the fraud had been trusted employees for at least 10 years.
Credit and cash challenged employees in the economy is partially attributed as a cause for the epic fraud numbers. Unfortunately, some long-time employees seem to have a sense of entitlement when working at small companies that probably pay less than large firms. Small companies are probably more trusting of workers and are likely less sophisticated in financial controls while being focused on marketing for survival.
ACFE indicates it takes a company about a year and a half before discovering the shortages. More than 85 percent of the perpetrators didn’t have records of committing fraud.
The fraud trend suggests the need for financial controls and insurance protection against losses. That means taking steps to prevent such opportunities among your accountant, bookkeeper, office manager, sales manager – anyone who might have access from your billing records to checking account.
It also means getting an outside participant to review your finances, and explaining your controls to your insurance company. Your insurer will likely have suggestions, and provide premium discounts as a result of your financial controls.
Yes, marketing and other issues are problematic in this economy, so stay focused on them, but secure your finances, too.
From the Coach’s Corner, as is the custom on these pages, we typically discuss the solutions to problems.
Here’s a resource link: Embezzlement – Tips to Protect Your Nonprofit or Company Assets.
“Trust, but verify.”
-Ronald Reagan
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
The Eight Best Practices in Small Business Marketing
True, the constant drumbeat of bad economic news can be disconcerting. For many small businesspeople, the news can be so unnerving it leads to fear. But fear can be healthy if used as a motivator to act. And act you should.
In small business marketing, here are the eight best practices:
1. Market your business every day. Avoid complacency. Even on the bad-hair days, don’t let up. Even when revenue is good and you’re busy, don’t get complacent. The point is this – decreasing your marketing investment to save money will hurt you short and long term. Be relentless. Attack, attack and attack (Secrets to Success in Recessions: Expand Marketing).
2. For cost-effectiveness, continually evaluate your marketing and related internal factors. Evaluate your messages. You should have five influential value propositions with a three to five word branding slogan. Don’t forget a logo. It should effectively tell your story and be simple. Don’t forget a favicon a small-business must for instant credibility – small enough to be condensed in 16×16 pixels for your Internet identity. If the ROI is insufficient, find out why and use an alternative. That goes for using the right mediums, too. Research what’s working and what isn’t. Make changes where necessary, including in customer service (Checklist for Success in Business Planning for the New Economy and Think 1930s for Business Success. Consumer Attitudes are Changing.).
3. Strive to reach your target economically five times. In messaging, frequency counts with quality. In most cases, the buying decision is reached after the prospect experiences five positive messages. For the best return on your hard earned dollars, see Checklist to Build Your Brand on a Budget and Marketing Essentials on a Shoestring Budget.
4. Use a diversified approach. Whenever possible, remember a single marketing medium should not eat up the entire budget. You should have a marketing mix of public relations and paid advertising. This is necessitated by consumer overload – customers act on messages from a variety of sources. Social media takes a lot of energy, too, but do your best (The Key to Internet Dominance: Think Integration and Key Steps to Make Your Social Media Work).
5. Have a social conscience. Don’t under-estimate the power of cause-related marketing (Cause-Related Marketing Can Increase Sales by Double Digits).
6. Get the right marketing help. Enlist the aid of an objective expert who is focused on getting you an ROI. Use the right mediums, which might not be what your gut-instinct tells you about products, pricing and promotion. Small business owners often make the mistake of spending money in the wrong places, not as investments in where their best prospects are ( Checklist: 19 Quick Marketing Tips for New Entrepreneurs).
7. Keep focused on winning the gold medal. Many small business owners, especially startups, are too-concerned about the competition. Remember, you’re in a marathon race. Don’t look over your shoulder (Hottest Tactics to Beat Your Competitors).
8. Be defensive – protect your turf. Remember how much time and energy it took for you to get your best customers. When faced with a choice – whether to chase new business or to take care of lucrative, repeat customers – remember loyalty is usually rewarded and leads to good word-of-mouth advertising (Invigorate Sales with Customer Retention, Referral Strategies and How to Profit: Word-of-Mouth Advertising, Customer Service).
Stay focused for success. Good luck!
From the Coach’s Corner, here’s How to Win Your Major Marketing Campaign.
Advice for consultants: Consultants – Strategies to Build Trust with Clients and Your Dream is to be a Consultant? Here’s How to Develop Your Vision Plan.
“Business has only two functions – marketing and innovation.”
-Milan Kundera
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Solutions for 3 Dangers to Small Business, Travelers’ White Paper
More than 50 percent of small businesses report they face three dangers – tax regulations, healthcare costs and poor disaster planning – according to an insurance company study. Nearly 33 percent cite government regulations as a salient obstacle to their success.
However, most respondents now say they’re optimistic about revenue growth and hiring workers.
That’s according to a nationwide study by the Travelers Institute, which is the Washington, D.C. public-policy arm of the Hartford-based Travelers Companies.
The organization embarked on a campaign: To spotlight the public-policy issues that are perils to small businesspeople; as well as the solutions in March 2011. It’s worth noting that senior Travelers’ management is staging panel discussions throughout the nation for the remainder of the year.
“Travelers is committed to being a constructive participant in the public policy dialogue with regard to important issues facing our industry,” wrote Jay Fishman, the Travelers chairman and CEO on the institute’s Web site.
“We hope to contribute to solutions on a wide range of issues that face our customers, our agents and brokers, and the communities we serve,” he added.
Conclusions from the small-business survey:
- More than 60 percent are over-burdened by tax-related issues, government compliance and mounting healthcare requirements
- Half of them cited health insurance
- 47 percent said licensing, permitting and inspection issues are an unnecessary weight
- 52 percent indicated government regulations depress small business
- More than half aren’t prepared for a disaster
More insights from the institute:
- Regulatory costs for small businesses are 36 percent greater per employee than big business
- Regulatory burdens — 33 percent of respondents cite the federal government; 34 percent for state and 16 percent for local or county
- Costs for coping with federal regulations – companies employing fewer than 20 workers spend $10,585 per employee per year but companies with 500 or more employees spend $7,755 per employee per year
- Tax compliance costs to small business – $18 billion annually
- The nation has 27.3 million small businesses
- 600,000 new businesses are started each year
- The tax code has four times more words than the Bible
The study included the opinions of 600 small-business owners, employing 50 or fewer people, from Feb. 18 to March 11, 2011. (Read the Travelers Institute White Paper.)
My sense: Travelers is on the right track, and is to be commended. Over-zealous government regulation is a threat to our collective political liberties, which is also a menace to our economic liberties. Let’s wish the institute luck, and remember we must all participate in the public-policy process.
From the Coach’s Corner, here are four resource links:
11 Strategies to Keep your Small Business Floating above Water
How to Ease Debt-Collection Headaches
Step-by-Step Solutions for a Company Turnaround
19 Tips to Protect Your Core Assets from a Disaster
“If you have ten thousand regulations you destroy all respect for the law.”
-Winston Churchill
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Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complementary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
11 Strategies to Keep your Small Business Floating above Water
If it’s a challenge to keep your small business from drowning in the current economy, you’re not alone. Profits are problematic everywhere — from advertsing firms to tech startups.
The good news is not all small firms have cash flow issues. You can be confident in knowing that as a small businessperson, you’re an important part of the nation’s economy.
The Small Business Administration’s Web site provides some salient data about the accomplishments of small business:
- They comprise 99.7 percent of all employers
- Employ more than 50 percent of all workers
- Account for 44 percent of the private-sector payroll
- In the last 15 years, created 64 percent of the jobs
- Hired 40 percent of all high-tech employees
- 52 percent are home-based, 2 percent are franchisees
- Responsible for more than 50 percent of the nation’s nonfarm private gross domestic product
- Constitute 97.3 percent of all exporters and 30.2 percent of the dollar value
- Generate 13 times more patents than their big-business counterparts
For successful small firms, strong cash flow doesn’t just happen. They’ve got a system. They plan and swim with precision.
Here are tips to stay afloat:
- Start by writing a gratitude list. Digest and relish what’s working in your career and life. Beleaguered business owners spend too much time worrying about what’s not working. This includes little things like consistently saying thank you to your customers, vendors and employees. Forget the hackneyed phrase, “Have a nice day.” An attitude of gratitude will help brighten each day and will make you more receptive to new ideas.
- Chances are you’re feeling disorganized. Write a to-do list of day-to-day priorities. Focus on just one thing at a time. Scratch each accomplishment off the list.
- Feeling burned out is also a common symptom. Start an affirmation list of your qualities – personal and business. Daily review it and remind yourself of your qualities. No item is too small to list.
- In cash flow, practice the two Ms – monitor and manage. Take inventory of your situation. Assess where you are by performing a break-even analysis. Predict spending and what trivial expenses can be cut. Make sure, though, you don’t cut muscle – marketing and human resources. Treat your employees as human capital. And make sales and marketing an important part of every day.
- Understand how your business should profitably function with business processes, and what is truly necessary for your survival. That, of course, includes key performance indicators (KPI), setting goals and measuring results. KPIs will range from products to customer satisfaction.
- Network. Develop strategic partners to save costs and to promote your business. Be seen as a team player. Promote your industry. By building up your profession, you will help yourself. Become the go-to person in the eyes of the community and news media. Besides, it’s true that rising tides raise all boats. Do something positive when your public officials compensate for revenue decreases by creatively increasing fees and taxes, which hurt the economic climate. With like-minded businesspeople, speak out. By brightening your small-business economic environment, cash flow will turn green for everyone, including you. Picture yourself not being uptight about money – there’s enough to go around. Just look out for your industry and company.
- When feasible, use the three Rs – recycle, reuse and reduce. Unlike a large business, you don’t have big cash reserves and customer base. Leverage all the possible money-saving tools in your business and personal life.
- Stay focused. Fine-tune as you go, but in general, stick with your roadmap. Don’t panic and steer off course. There are no magical miracles or detours. If you’ve done your strategic planning, don’t engage in worry or self-doubt. Do the planned footwork.
- Look for opportunities to multiply your sources of revenue. That includes buying out competitors, especially, if you get a favorable price, terms, and valuable talent. Check with your CPA to see if a leveraged buyout is workable. You’ll save cash flow.
- Take advantage of technology. Staying current on technology will help you save time and money while increasing revenue. The more mobile you are, the more competitive you’ll become.
- Look around to help someone less fortunate than you. It will help you keep a smile on your face. Customers, vendors and employees will love it.
Use these basics, and you, too, will stay afloat. Moreover, you’ll enjoy the swim.
From the Coach’s Corner, here’s more on how to Make Money: Four Options for Soaring Profits.
“I don’t like money actually, but it quiets the nerves.”
-Joe E. Lewis
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Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Economic Climate for Small Business – Has Obama Misread the 3 Ms?
Sept. 8, 2010
Using the 3 Ms as criterion, it’s report card time for the “summer of recovery,” as predicted by President Obama last June. From the perspective of most small businesspeople, the three Ms can be defined as the mandate, moment and mood. Based on his strategies, has Mr. Obama misread his 3 Ms?
Clearly, after President Obama’s election nearly two years ago, the nation appears uncomfortable with his strategies for hope and change. There are worries about the economy and dissatisfaction with the nation’s leadership coupled with a huge lack of confidence – Americans see too little action – too late.
Consider President Obama’s recent Gallup Poll ratings:
- Job approval – 42 percent (only 39 percent among Independents)
- Economy – 38 percent approval rating
- Obama on Healthcare reform – 39 percent approval.
- Country – right direction – 32 percent say yes.
Why such bleak approval ratings? Well, when it comes to Main Street, the Obama Administration has a tin ear.
Bailouts, heavy spending, healthcare overhaul, and cap-and-trade legislation have been the misguided priorities for the Obama Administration. He has not been confused with President Lincoln. As a result, Mr. Obama has been off-target with assessing strengths, weaknesses, opportunities and threats. He has accomplished little regarding the economy and job creation, as the 9.6 percent unemployment rate is poised to climb higher.
His message is also off-base – really missing the target. The nation’s confidence is sinking. He needs to understand why President Roosevelt was widely respected during the depression years.
Admittedly, his proposed tax breaks are welcome – accelerated write-offs for investments in plants and equipment – and tax credits for research. Companies could deduct investment expense in one year instead of the current provision for three to 20 years. But they will not yield a quick fix for struggling businesses.
The tax breaks should have been proposed 20 months ago – businesses do not have an incentive to take risks, and they will not add to their payrolls. Even for a beleaguered construction industry, Mr. Obama’s proposed $50 billion spending for roads, railways and runways is seen as a political payoff to unions.
Government policy should be focused on alleviating uncertainty for employers – not creating chaos. For businesses to increase spending, it starts with confidence. So, they’re not likely to buy machinery or high-tech, which would create jobs.
Big companies can borrow at lower interest rates. Even though small businesses comprise the lion’s share of the nation’s economic engine for job creation, most small businesspeople feel as though government has declared war on them. Many have suffered severely and have lost their positive credit ratings – making it impossible for them to borrow at decent rates. That’s a shame.
Small Business Administration (SBA) figures show small companies represent 99.7 percent of all employers, and employ more than 50 percent of the private-sector workforce. The SBA says account for 44 percent of payrolls, and more than 50 percent of the nation’s non-farm gross domestic product. They comprise 97.3 percent of exporters, and are responsible for 13 times more patents per employee than big companies. But the patent-application process takes more than half a decade (see this column: “Is the U.S. in Danger of Becoming Second-Rate in High Tech?”)
Just like during the Bush Administration, the SBA in the Obama tenure has decimated government-contract opportunities for small businesses. Twenty-three percent of all federal government contracts must be allocated to small businesses. This year, the Obama Administration admitted it failed to achieve the goal, even though it claims to have given $96.8 billion in government contracts to small business. Or did it? No.
A study released in June by the American Small Business League (ASBL) concludes that a whopping 60 percent of the top 100 contracts resulted in welfare for big companies.
To name names: Boeing, British Aerospace, Dell, General Electric, Honeywell International, Lockheed Martin and Raytheon all received corporate welfare – government contracts intended for small entrepreneurs.
Small businesses are getting a raw deal in other ways. Consumers have been so hammered, they can’t buy goods and services – even if they want to do so. Financial reform did nothing to help consumers and small businesses long pillaged by predatory credit card companies. New cars and trucks continue to be parked at dealerships.
Because this isn’t a nurturing economic climate, there’s also been a decrease in self-employed businesspeople. Recent Labor Department figures show there are 8.68 million self-employed persons. That’s down 13 percent from four years ago, December 2006, when there were 9.98 million people working for themselves.
It’s small business that creates jobs in this era of corporate-bailout largesse. However, small businesses are being choked because they can’t get credit and they’re facing a slump in demand.
They’re also facing a health reform law that favors bigger companies. Other government-forced paperwork will increase. Plus, every company must produce a Form 1099 to each vendor when annual purchases total more than $600. The SBA says employers with 20 or less workers now have to spend 45 percent more of their hard-earned resources to stay in compliance with federal mandates. IRS audit hours for small firms are up 30 percent in just five years. You guessed it – audit hours for their big-company peers are down by a third over the same period.
Summer of recovery? No. Every economic report has delivered bad news. President Obama has misread his 3 Ms.
The bottom-line: Small businesses want a healthy economy. They want to hire workers when feasible. But they do not feel expansion of government, high taxes and new regulations will help them succeed.
Small-business success is our best hope. Public policy should reflect this reality. Mr. Obama should emulate President Lincoln in deciding policies, and Franklin Roosevelt for delivery of the right message to inspire confidence.
From the Coach’s Corner, from a more macro perspective, it’s also been alarming to watch American officials scold the Germans for not spending enough. But it’s Germany with the healthiest economy in Europe.
An article in Forbes explains it well: “The U.S. Killed The Summer Of Recovery – We did it by framing the wrong problem,” by scholar Thomas F. Cooley.
SBA Web Chat: Tips on Healthcare Tax Credits
Aug. 4, 2010
If you need up-to-date information on healthcare for your small business, the Small Business Administration is holding a Web Chat. The SBA’s Web Chat will highlight small business health care, with a focus on how the Affordable Care Act will benefit small business owners through available tax-saving incentives.
Participants can learn about the newest tax credits they can take advantage of, and additional tax provisions to be implemented during the next several years.
John Tuzynski, chief of Employment Tax and Specialty Programs for the Small Business Self-Employed (SB/SE) Division at the Internal Revenue Service, will host the August web chat on “Healthcare and Small Business.”
SBA’s Web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants will have direct, real-time access to the Web chats via questions they submit online in advance and during the live session, with instant answers.
WHEN: August 12, 2010, 2010, 1 p.m. ET. Mr. Tuzynski will answer questions for one hour.
HOW: Participants can join the live Web chat by going online to www.sba.gov, and clicking “Online Business Chat.” Web chat participants may post questions before the August 12th chat by visiting http://web.sba.gov/livemeeting/Aug10/ and posting their questions online.
To review archives of past Web chats, visit online at http://www.sba.gov/tools/monthlywebchat/index.html.
From the Coach’s Corner, however, please note these columns:
Healthcare Reform Increases Costs to Workers, Study
How Healthcare Law Would Affect Small Business
Oxymorons: ‘Healthcare Reform’ and ‘Public Servants’
Why Small Business Prospects Are Trending Up
May 8, 2010
Two studies about small businesspeople provide inspirational insights.
A new “Signs of the Times” study by FedEx Office shows 72 percent of responding U.S. businesses believe they’ll help lead the charge to business recovery. Conducted in April, 2010, it included small businesses with five to 100 employees with minimum revenue of $100,000.
The temporary help company, Kelly Services, funded a global study which revealed 20 percent of respondents are working as entrepreneurial independent contractors and another 50 percent aspire to work for themselves. It was a survey of 134,000 people in 29 nations in Asia, Europe, and North America.
The FedEx study:
Fifty-one percent of responding businesses indicate they’re already recovering or will be in great shape by the start of 2011. That’s quite a change. In 2009, 54 percent were worried about the economy.
Eighteen percent are now looking to hire workers compared to just 9 percent in 2009.
Marketing will have a bigger priority – 42 percent will budget for marketing this year. Thirty percent will increase budgets for sales activities.
“Small businesses are definitely getting it right when it comes to identifying and investing in the tools that will help them bounce back from a difficult period,” said Randy Scarborough, vice president of marketing for FedEx Office. “From print ads and direct mail campaigns to online marketing programs and a social media presence, small business owners today are smart and savvy about how to maximize their budgets while connecting effectively with new and existing customers down the street and around the world.”
The FedEx study highlights the wisdom of small businesses on the importance of marketing.
In the early stages of the recession back in 2008, a previous FedEx study revealed relatively few small businesses were fully aware of the effects of the downturn. That’s when 41 percent said they anticipated increasing their marketing budgets. But in 2009 when virtually every business felt the negative impact of the downturn, 44 percent were looking to increase their marketing budgets.
The current study indicates 34 percent slashed their marketing in 2009, but 31 percent regret making the cutback.
Eighty-seven percent believe in the importance of print marketing collateral, and 61 percent believe traditional marketing tools will yield a better return on their investment than the Internet.
Ironically, 51 percent of the 18 to 34 year-old demographic advocate banners, posters and signs vis-à-vis 36 percent of those aged 55 and older.
But many of the respondents say they will embrace the Web more – 46 percent online and 36 percent on social media.
But the study’s red flag: Many small businesses have not designed a cohesive logo and tagline. Sixty-four percent admit their messaging is “somewhat consistent,” 23 percent can’t afford to design messaging and branding, and 13 percent admit spending too much because they don’t have the ability or time to research possible deals.
The Kelly Services survey:
It’s not just about companies cutting back to save on employee benefits, according to Kelly Services. Uncertainty about economics is what is really triggering the trend for entrepreneurship or independent contractors.
The increase in free agency: Twenty-six percent in North America,19 percent in Asia and 17 percent in Europe.
Nearly 25 percent of all respondents indicated a desire to launch a business, especially 48 to 65 year-old males.
“The economic downturn has resulted in a new way of thinking about careers and job security. Many people have watched their jobs disappear and now want to do something that puts them in more control of their career,” says Kelly Services Executive Vice President and Chief Operating Officer, George Corona. “These are often people with many years of experience, who may have been displaced and who have taken an entrepreneurial approach to marketing their skills.”
Other results:
- Some 20 percent are freelancers, consultants, independent contractors or free agents. That’s 28 percent of baby boomers, 20 percent of Gen X and 18 percent of Gen Y.
- Another 12 percent would love to be independent.
- Younger people are worried about failing and older folks fear healthcare costs.
- Thirty percent of Gen Y would like to start their own business, but only 22 percent of Gen X and 14 percent of baby boomers would like to do so.
- Forty-eight percent feel they abilities are adequate. Fifty-four percent of baby boomers and Gen X and 40 percent of Gen Y feel confident.
“Many of those who lost their jobs as a result of the global economic crisis have had to reinvent themselves as independent contractors, freelancers and consultants. This self-employment trend may continue as more people become attracted by the autonomy, independence, and flexibility of working for themselves,” Corona added.
In conclusion, these studies demonstrate the ability and fortitude of entrepreneurs.
And, use a metaphor like Reggie Jackson once said about his Mr. October capabilities as a New York Yankee: Entrepreneurs “are the straw that stirs the drink” in economic growth.
From the Coach’s Corner, Jerry Savin, an authoritative consultant at Cambridge Technology Consulting Group, has a reminder about your online presence:
“Today, we received a frantic call from a former client asking why their website was down,” writes Mr. Savin. “As it turned out, their domain registration had expired. Oops.”
His suggestions:
- Check the expiration dates of your current domain registrations.
- Confirm that the Administrative Contact on the Domain Registration is current and the contact’s email address is correct.
- Pay attention to the email reminders. Domain Registrars send out multiple domain registration expiration emails.
- Renew your domain registrations before they expire.
“Google gives slightly more weight to domains with longer registrations,” he adds. “So registering domains for 5 years or longer makes sense.”
His Web address: http://www.ctcg.com
LinkedIn: www.linkedin.com/in/jeraldsavin
Tweet: www.twitter.com/CambridgeTech
Agency Tries to Help Small Business Cope with Federal Government
April 10, 2010
If you’re a small business owner, most likely you’re feeling the pain of overzealous regulation by government.
Small business owners feel the pain – losses in time and money – more readily that management in large companies. They’re closer to the cash register and have fewer resources – especially, micro businesses.
That means, in general, they’re more fiscally conservative and more likely to implement change to improve their cash flow. And in my experience, depending on the locale, the majority of small businesspeople complain of bureaucrats that make profits hard to achieve.
Even a federal agency agrees, according to published reports. The Office of Advocacy at the Small Business Administration (SBA) states that federal rules cost business $1.1 trillion. And it costs small businesses 45 percent more than big businesses to comply.
That costs jobs.
So the SBA’s office says it’s been doing something about it with its regulatory review and reform initiative; what it calls “r3” to target regulations that are “ineffective, duplicative, or out of date” (http://www.sba.gov/advo/r3/).
In 2008, it received 82 nominations for onerous rules that need reform. After two years of study, it whittled down the list. In 2010, it decided to focus on 10 federal rules that need revision.
“Only 10?” you’re thinking. Well, just as it took the SBA two years to decide on 10 finalist rules, getting government to reform anything takes years. So let’s congratulate the agency for its efforts.
In difficult situations, a positive attitude works wonders. The place to start is to chart progress. It’s a healthy exercise to focus on what’s right than on what’s wrong. Relish your progress. So regarding the 10 rules, let’s try to appreciate how far the agency has come.
Here’s a tip of the Biz Coach cap for the 10 federal rules:
- Update Air Monitoring Rules for Dry Cleaners to Reflect Current Technology
- Flexibility for Community Drinking Water Systems
- Simplify the Rules for Recycling Solid Waste
- EPA Should Clearly Define “Oil” in its Oil Spill Rules
- Update Flight Rules for the Washington, DC, Metropolitan Area
- Eliminate Duplicative Financial Requirements for Architect-Engineering Services Firms in Government Contracting
- Simplify the Home Office Business Deduction
- Update MSHA Rules on the Use of Explosives in Mines to Reflect Modern Industry Standards
- Update OSHA’s Medical / Laboratory Worker Rule
- Update Reverse Auction Techniques for Online Procurement of Commercial Items
Here’s the printer friendly version [PDF File].
Do you have questions, concerns or comments?
Here are two options:
- E-mail advocacy@sba.gov.
- Contact the R3 Project Leader, Keith Holman, at (202) 205-6936 or keith.holman@sba.gov.
Now, if state and local governments would see the light.
From the Coach’s Corner, does your small business need economic data or research?
Here’s an SBA source: www.sba.gov/advo/research/.
