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The Janus Month: Looking Back and Looking Forward
Jan 31st
Small business research has been pretty thin over the last couple of months but what little there is happens to be focused on a single big question, “How are we doing?” Or, to be more accurate, “How were we doing?”
The State of Small Business
During the course of 2010, staff from the SBA Office of Advocacy spent some of their time working on the office’s annual report to the President on small business for 2009. (Similarly, they’ll spend a nice-sized chunk of this year working on their report for 2010.) The report was just released a couple of days ago.
It’s a bit mind-boggling to try to send yourself back to 2009, when the economy was busily falling to pieces around us. It seems like a million years ago.
During the first six months of that year, the economy shed about 3.3 million jobs — almost 2 million of them in the first quarter alone. The pace of job losses slowed as the year progressed, but by the time the ball dropped to usher in 2010, we were down 4.3 million jobs.
Small businesses were getting hammered, of course. The report notes that they accounted for 60 percent of net job losses, with the greatest hits taken in the first quarter of 2009.
By the third quarter, small firms were still shedding jobs, but only 33 percent as many as they had lost during the first quarter. That’s not too shabby when you consider that overall job losses, economy-wide, were almost 40 percent of what they had been during the first quarter.
If the employment is not your favorite metric by which to judge the small business sector, perhaps you’re one of those folks who think that small firms will thrive as long as they can borrow money. If so, then you may recall that 2009 wasn’t a good year for that kind of activity, either.
In fact, quite a lot of the small business policy debate we got to listen to was a kind of chicken-and-egg argument about small firm lending.
In this corner, we have the businesses-gotta-borrow crowd, who complained long and loud about banks tightening their lending standards and refusing to lend to small firms. If only we could loosen things up at the banks, these folks theorized, small businesses could borrow what they need and expand their businesses and hire people and save our political careers!
Not so fast, said the folks in the other corner, to whom we will refer as the first-things-first crowd. It doesn’t really matter that the banks aren’t lending because loan demand is down anyway, they said. Small businesses don’t really want to borrow. They can’t afford to borrow because their customers aren’t buying. Think about that before you go standing on the bankers’ necks.
We got to listen to this argument all year lon,g and at no point in time did I hear anybody stop and say, “You’re both right. Nothing you say is going to describe all small firms anyway, so knock it off!”
Another data point that illustrates all that pain is this: The number of nonemployer firms declined in 2008, and Advocacy estimates that the number of employers will also decline for that year. Regarding the year in question, 2009, Advocacy estimates that the number of employer firms fell still further, while nonemployers started to recover their numbers.
We’ll see how accurate those estimates turn out to be. It wouldn’t surprise me to discover that the number of nonemployers increased more than expected. After all, sometimes those vanishing employer firms don’t close, they just revert to nonemployers.
Fast Forward
All things considered, when you think about where we are now, you almost can’t help quoting that old Virginia Slims commercial: You’ve come a long way, baby.
As usual, the various small business employment indexes disagree with each other — mainly because they measure slightly different things.
The December Intuit Small Business Employment Index shows that firms with fewer than 20 employees created 57,000 new jobs that month. The ADP National Employment Report for December indicated that employment increased by 117,000 at firms with fewer than 50 employees.
Meanwhile, according to the Bureau of Labor Statistics, overall nonfarm payroll employment increased by 103,000 in December.
No matter how you look at it, we’re certainly doing quite a lot better than we were in 2009.
As for how things are going in small business lending land, that is still a matter for debate. The most recent Small Business Economic Trends release from the National Federation of Independent Business (December 2010) indicates that the vast majority (91 percent) of small businesses have no interest in borrowing or their credit needs are already being met.
On the other hand, the Pepperdine Private Capital Markets Study was released earlier this month and it shows a different picture. Only 40 percent of private business owners report having adequate capital for growth. The survey also showed that lenders and investors reject 73 percent of applications based on cash flow and 90 percent of those secured by real estate holdings.
That particular argument rages on, but it is raging much more quietly now that economic growth is back with us.
The Janus Month: Looking Back and Looking Forward
View full post on Small Business News, Tips, Advice – Small Business Trends
Just looking
Dec 22nd
The problem with browsers is that they rarely buy anything.
The prospect who walks up to the salesperson and says, “I’m looking for a pinstripe suit in size 38″ is a lot more likely to walk out with a suit than the one who mutters, “No thanks, just looking.”
Which is relevant to your quest for a new product or business or job or mate or project worth working on…
If you’re still looking around, making sure you understand all your options, getting your bearings or making sure you’re well informed, you’re most probably browsing.
You missed the first, second and third waves of the internet. You missed a hundred great jobs and forty great husbands. You missed the deadline for that course and the window for this program.
Quit looking and go buy something already.
View full post on Seth’s Blog
Small Business Marketing Outlook for 2011 Is Looking Up
Nov 3rd
Small businesses are feeling optimistic about the economy— so much so that they’re increasing their 2011 marketing budgets. That’s the result of a new survey my company, GrowBiz Media, conducted with the help of Zoomerang, a leading provider of online survey and polling tools.
The Small Business Marketing Practices Survey polled small business owners to find out about their marketing plans for next year. Entrepreneurs plan to increase their online and offline marketing budgets, with the biggest increases going towards e-mail, websites and social media marketing.
Alex Terry, Zoomerang’s General Manager, says the survey reflects business owners’ ability to adapt and use “different technologies to make the most effective and creative use of their budgets.” Social media, in particular, is in the spotlight: “This area of marketing is poised to see an incredible uptick in the next year,” Terry notes.
More than one-third of business owners responding to the survey already make social media part of their marketing mix. Of those who use social media tools, Facebook was the most popular, used by 80 percent. Next came LinkedIn (37 percent) and Twitter (27 percent).
Overall, 13 percent of business owners plan to increase their social media spending next year. Here’s where else they will be spending more:
- Website + 17 percent
- Direct mail + 15 percent
- E-mail marketing + 15 percent
- Print ads + 10 percent
- Online ads + 9 percent
- SEO + 4 percent
The bulk of small businesses’ spending increases is slated for their online marketing avenues. However, the one method most entrepreneurs say they rely on above all others is good old word-of-mouth. Eighty-six percent of business owners said word-of-mouth is important to their companies. Asked what specific kinds of word-of-mouth marketing matter to them, 70 percent cited in-person networking, 50 percent said customer referral rewards, and 34 mentioned cited social media. Also significant: event marketing (21 percent) and public speaking (20 percent).
One fact that saddens, but doesn’t surprise me: Just 54 percent of businesses surveyed have a company website. I’m still amazed how many small business owners fail to take advantage of this crucial marketing tool. With word-of-mouth increasingly being spread online, entrepreneurs who rely on it will fall behind if they don’t have at least a basic business website.
Of those respondents who do have a business website, 80 percent use it to provide “general information,” 45 percent use it for customer service, and 30 percent use it for e-commerce. Just 13 percent blog on their site.
How does your business stack up against these numbers? What tools are you using—or planning to add to your arsenal in the coming year? Get more details from the Small Business Marketing Practices survey and see how you compare to similar companies at the Zoomerang website.
Small Business Marketing Outlook for 2011 Is Looking Up
View full post on Small Business News, Tips, Advice – Small Business Trends
LGN Prosperity Report Offers Unique Marketing Perspective To Struggling Internet Marketers Looking To Create Momentum…
Oct 12th
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I’m looking for Affiliate Marketing company and/or Affiliate Advertising Network focused on the Christian Market in the…
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Social Gaming Market Reaches Its Final Stage…and It’s Not Looking Pretty
Sep 17th
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Looking for a Job on Social Networking Sites
Aug 25th
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View full post on Home Wealth Project Riot!
Looking for a Simple Bookkeeping Solution? Try Cashflow Manager
Aug 16th
Keeping accurate accounting records can seem a little daunting to many small business owners. It is one of those things that you know you should do but many don’t. So you either leave it up to your accountant or try to use a more sophisticated accounting software package that takes a while to learn.
Cashflow Manager is designed for those of you who have limited accounting knowledge and want to get control of your bookkeeping records. I have been using the trial version of the software and I found it very easy to use. The setup process takes just a few minutes, and the design of Cashflow Manager makes it very simple to see what information you need to put in and how to do it.
The software is an Australian product and helps small businesses get control of their accounting records using what is called the single entry method. Using the software helps you keep accurate records, which is vital for a healthy business as well as ensuring compliance with the tax office. This is important as the Australian Tax Office no longer offers e-Record.
You can just do the simple things like keeping track of your payments and receipts, reconcile with your bank statements and when you need to, you can export the data straight to your accountant. The software is ideally designed for small businesses who use the cash based Goods and Services Tax method and do not have any inventory to control.
What I liked about Cashflow Manager
- It automatically calculates your GST and even produces a report that you use to lodge your Business Activity Statement online. This is a huge time saver.
- When you set up your business you can align it to the software that your accountant uses. This means they can do their reports easily saving you money and your accountant’s time.
- It has videos that you can access from the software to help guide you through any of the different sections as well as a comprehensive user guide.
- The software is particularly suited to small service based businesses
- You can tailor the columns to suit your individual business. This means that you can just have the accounts that are needed for your business.
What could be better?
These are minor suggestions as the software is well designed for most small businesses.
- Although in the guide it has an explanation of the terms, it would be good to have these as pop outs on the columns in the software. For example if you scrolled over a column a definition and examples would be quicker for someone new to the software.
- You can add columns for different accounts. However they are only at the top level. It would be helpful to have the ability to add sub accounts that could then be totalled to the higher level.
Cashflow Manager is particularly suited to small businesses with simple needs regarding accounting record keeping. The product has a free trial and more information can be found on the Cashflow Manager website.
Editor’s note: This review was done of the Australian version of Cashflow Manager. For the U.S. version, visit the Cashflow Manager USA page.
Looking for a Simple Bookkeeping Solution? Try Cashflow Manager
View full post on Small Business News, Tips, Advice – Small Business Trends
Looking to Hire? Fire up the Social Networks!
Jul 14th
Careful, SMB owners, it seems social media isn’t just for chatting anymore. According to new research from the recruiting platform Jobvite, 73.3 percent of business owners say they have used social networking channels as a way of recruiting new hires. Even more impressive, 58 percent of those polled said they had actually hired a prospect they discovered through a social network. Newspaper classifieds and online job boards? Oh, the times they are a’changin’.
Jobvite president and CEO Dan Finnigan said:
“While the economy begins to recover, companies looking to make new hires are seeking the most cost-effective, efficient ways to find new talent. Job boards launched a revolution in recruiting more than 15 years ago. And now, social networks are doing the same—but in a targeted way. Through social recruiting, companies are learning they can find the best talent efficiently, without making a major investment.”
For those companies participating in social media, using the networks to scout out and recruit new hires is a natural evolution. The relationships business owners can create with customers also extends toward business contacts. With people sharing their lives on these social networks, it makes it easy for recruiters or business owners to get a feel for a prospect. You can watch how they perform in social situations, how they handle conflict, see their hobbies and interests, get access to their work history, and much more. It’s the perfect head hunting tool for the modern era.
When it comes to the social network that converts the best, not surprisingly LinkedIn came out on top. Nearly 80 percent of companies said they used LinkedIn when recruiting new employees, with 90 percent of those who used it being successful finding and hiring a new employee. Facebook and Twitter were used 55 percent and 45 percent of the time, with 27.5 percent and 14.2 percent leading to hires.
If you want to use a social media net for hiring, where you should start?
- Search for potential job candidates using specific keyword searches: LinkedIn allows you to search profiles based on industry, company, language, company size, or other criteria. If you have a paid account, there are additional breakdowns like seniority level, years of experience, etc. On Twitter or Facebook you can search by company name, industry keywords, or combine your zip code with other job-related keywords.
- Monitor status updates of your contacts: One of the best features added to LinkedIn was the Twitter-like status update because it allowed contacts to share more about what they were doing in their business. Keeping tabs on these updates is a good way to find out who’s looking for a job, who started on a new project, etc.
- Build relationships with candidates: The same way you build relationships with customers, build relationships with candidates you think you may be interested in hiring. By establishing that level of trust and openness right out of the gate, you’ll help each other to learn more about the other and the opportunity to work together.
- Screen candidates: When someone is active on social networking sites, it gives you quite a bit of information to use about that prospect. For example, as I mentioned earlier you can get a glimpse at how they handle conflict situations, how well they engaged people, how they handle customer service issues, the kind of things they’re passionate about, where they went to school, what their hobbies are, etc. Use this information to help you find someone who will be a match with your organization. Befriend the social media background check.
How have you used social media to recruit new employees? Have you hired anyone you “met” on Twitter, LinkedIn or Facebook?
Looking to Hire? Fire up the Social Networks!
View full post on Small Business Trends
