July 30, 2009

Employee Loyalty

Business Week states "Many companies can't afford Humanix's approach of lending workers money directly, especially in a slump. Mitch Bolnick, CEO of security company BCD Low Voltage Systems in Phoenix, let several employees borrow from the company in the past for emergencies like car repairs. But with sales slow this year and his staff of 16 already taking pay cuts, Bolnick has held off on new loans. "This year we've had to explain to them what the situation is and why, and they understand," he says. Still, he says assisting employees when possible helps BCD build loyalty among workers: Two have told him they turned down higher-paying offers."

What does this mean to other small businesses? It doesn't mean you should start providing private loans or funds for your employees today, but to think about their needs outside the office also because, "a financially unstable worker can cost a business as much as $480 per month in lost productivity and absenteeism."

July 29, 2009

Online Advertising

Google is the number one search engine in the US with a market share of 65.0%. Yahoo has 19.6% and Microsoft has 8.4% of the market share. Since Yahoo and Microsoft don't have even 25% of the market share, many advertisers were not willing to work with them. The solution, Microhoo! CNN states, "This deal is really about scale," said Yahoo Chief Executive Carol Bartz on a conference call. "By combining the ... technology of both companies, we can create a real, viable alternative for advertisers."

What does this mean to small business owners? Additional medium to effectivey advertiser and reach your customers.

July 27, 2009

Partnership


Some of the biggest companies were started by partners; Ben and Jerry's Ice Cream (Ben and Jerry), Apple (Steve Jobs and Steve Wozniak), and Google (Larry Page and Sergey Brin).

If you're thinking of starting a new business or already have started a small business but need that extra bit of support why not turn to someone your trust and ask them to be your partner.

USA Today states, "With a partner, you have someone to share the excitement and risks of running a company; someone to bounce ideas off of; to help shoulder the financial and work-load burden. Face it: starting and running a business can be a lot more fun when you're working with someone you like and respect. It's important to think through and formally structure your relationship."

July 24, 2009

Federal Minimum wage increases to $7.25


In 2007, before the recession started, Congress signed a legislation that increased the minimum wage to $5.85, followed by another increase in 2008 to $6.55, and now the final hike to $7.25. Secretary of Labor Hilda Solis says, "Between 3 million and 5 million people will be affected by the minimum wage rise from $6.55 per hour to $7.25 per hour"

If you are a small business owner, how does this affect you during this recession? According to "Robert Mayfield, who owns five Dairy Queen restaurants in central Texas, 'don't expect any increased spending to offset the added salary expenses.'"

To check exactly how much the minimum wage increased in your state, click here.

July 23, 2009

Press Release


One of the most important tools available to a small business is Press Release Distribution. Associated Content states 8 reasons why Press Releases are important including, Increases name recognition, Gain free visibility, and You will be viewed as an expert in your field. Websites such as freepressrelease.com, pr.com, and pitchengine.com allowing everyone to submit press releases that can be distributed for free. Not only is this cost effective, this is also one of the most effective Marketing tools!

July 21, 2009

Your share of the Stimulus Money


The American Recovery and Reinvestment Act has almost $800 million to spend in various sectors including State Fiscal Stabilization, Transportation, Energy, Infrastructure, Education, Health care, Housing, and Other projects. MSNBC states, "If you have absolutely no experience selling to government at any level--federal, state or local--the likelihood that you'll land any significant money is minimal. "significant money", in government terms, this is seven figures and up. If you have no experience, can you still be involved? Possibly, but it will take time, effort, homework and persistence."

Whenever dealing with the government, there is always a significant amount of paper work and more red tape to cross than when you are dealing with the private sector. Click here to continue reading on detail steps on how you can get your share of the stimulus money and keep your small business going.

July 20, 2009

CIT


MSNBC states "CIT Group Inc.’s board approved a deal with major bondholders to keep the company out of bankruptcy with a $3 billion rescue loan, according to published reports. CIT’s failure could pose a major threat to the economy, industry representatives have warned. A collapse of CIT could cut off financing just as businesses need it most during the ongoing recession. Its failure could force thousands of companies to drastically cut costs or shut down — driving up unemployment and dashing hopes for a swift economic recovery"

Now that CIT has secured $3 billion to keep it's doors open for at least the rest of the year, one question small business owners should ask their state representatives is why the federal government doesn't see it necessary to bailout CIT when it bailed out all the big corporation from wall street?

July 15, 2009

Google Voice


Most people these days have more than one phone they are required to return calls from, for example, home phone, cell phone, business phone, business cell phone, ect. To help with this problem, Google has developed Google Voice. "Google Voice is Google's attempt to remake how we think of the phone. It lets you use one new phone number to tie together your various numbers: cellphone, home phone, business line. Friends call your Google number, and all the other phones ring — you choose which one to answer. Voice mail flows to all of the phones, along with a free transcription by Google." states Jeffery Graham of USA Today.

Just like most products Google launches, Google Voice is available by invitation only. Because of the limited number of invitations issued by Google thus far, these invitations are being auctioned for as much as $100! What is an alternative if you are a small business owner? Click here to register for your invitation, and with Google releasing up to 10,000 phone numbers in the coming months you won't have to wait long.

July 14, 2009

Webinars


Have you been hearing how social media is the new face of marketing, but you don't know how to make it work for your small business? Or have your heard there is a great way to get press at almost no cost? Why not view one of the many FREE webinars that are offered almost everyday but almost everyone! Startup nation is hosting "Strategies to Save Time, Save Money, Win More Customers". PR Web, the press distribution website is hosting a webinar on a weekly basis related to press releases.

Next time you are at a professional website, search to see if they are offering a webinar. And the best part, you can view and listen to it from the comfort of your own office!

July 13, 2009

For the Customers, by the Customers


The Wall Street Journal reports, "All sorts of start-ups and small companies are using the Internet to involve customers in decisions on everything from what to sell, how products look and work, how much they cost, and even how the company operates, like what hours a store should be open or how its floor space should be laid out. For business owners who are short on cash and have little margin for error, there are two big advantages to using consumers as advisers: They’re cheaper than the professional consultants that bigger companies routinely employ."

If you are a small company, considering how to remodel your website, or your store's display, start by interacting with your customers. Host a live chat session on your website, create a contest for a free giveaway to the customer that has the most direct impact on your end result, or start a forum discussion. At the end of the day, your customers will enjoy your service more because they helped create it!

July 10, 2009

It's the small things the matter


The Wall Street Journal reports, "Despite the economic slowdown, downsized small businesses are offering rewards to remaining employees to boost morale and compensate them for doing additional work. Employers are sponsoring office sports teams, hosting postwork social hours and permitting flexible work schedules. In return, some are seeing savings on overhead costs or increases in revenue."

Therefore if you have noticed that your employees are on edge, why not help boost their moral by sponsoring team activities outside of the workplace and put their minds at ease. And with them not having to worry that they are the next to go, they will work hard and help increase your revenues.

July 9, 2009

No Cash, No Worries


Are you running low on your liquid capital but you still need to update your business? Have you considering Bartering? "Even in modern times, bartering remains a practical choice for small businesses. It's a cash preservation tool, something that's especially useful in a tough economy. It can also help move unsold inventory or put idled staff to work. Done right, bartering can even drive new cash business." stats Justin Martin from CNN Money.

For starter register with the International Reciprocal Trade Association (IRTA) and become one of the 250,000 small business who formally exchange their goods and services.

So the next time you need to fix equipment for your small business, instead of calling a service that will require cash, why not think of someone who is will to fix it in exchange for something you already have.

July 8, 2009

Personal Credit and Small Business Loans

If you have a small business loan from CITI Bank, you are likely to see that loan show up on your PERSONAL credit report. But not to worry, according to Sharon O'Connor Clarke, a principal consultant with FICO, "Business owners generally won't see their credit hurt if they're current on payments. Borrowers with strong repayment histories could even see scores improve" This doesn't mean for the sake of improving your personal credit you start taking out business loans but it does mean even though banks are changing the rules of the game, for now, you don't have to worry.

July 6, 2009

Freelancers

Looking to grow a specific part of your business but you can't afford to hire an agency that specializes in that industry or bring that department in-house and staff it? Not to worry, "A new generation of online service marketplaces is giving small companies more opportunities than ever to find specialized expertise and affordable labor." Websites such as Guru, Elance, and oDesk to name a few are "'leveling the playing field between small and large businesses,' said Thomas W. Malone, a professor at the Sloan School of Management at the Massachusetts Institute of Technology. In some cases, the cost savings can be substantial: the hourly rates of programmers in Russia, India or Pakistan are a fraction of those in the United States. These freelance marketplaces also allow companies to assemble teams quickly, find specialized expertise, begin new initiatives and drop everything when it’s no longer needed. Organizations can remain flat and focus on their core missions."

To get started simply visit the website, create an account, and submit a project!

July 1, 2009

Small Business Contracts

Every year 23% of all Federal contracts are suppose to be awarded to "small businesses". But according to Eagle Eye, a Virginia research firm that tracks federal spending, "at least 16 companies with more than $1 billion in annual revenues were among the top 100 small business contractors in 2008".Recently Republican Hank Johnson has introduced The Fairness and Transparency in Contracting Act of 2009, "which prohibits publicly traded and foreign-owned companies (or their subsidiaries) from being classified as U.S. small businesses for government contracting purposes."

With the large companies out of the running for the federal contracts, start contacting your local, county, state, and federal agencies to see what type of contracts they have coming up and most importantly find out how you can qualify to bid for the contract.