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Posts Tagged ‘small business’

Is Starbucks Really A Small Biz Killer?

Thursday, June 25th, 2009

Here’s an interesting question to consider: are big chains like Starbucks and Wal-Mart actually as harmful to mom and pop shops as common wisdom dictates? Not so fast, says Temple University prof Bryan Simon, who tells Reuters that that it least when it comes to Starbucks (sorry, Wal-Mart), the assumption is flat wrong:

“‘In fact, Starbucks created the market for the small coffee shop,’ says Bryant, whose new book ‘Everything but the Coffee: Learning about America from Starbucks’ is due to be released in October.

Simon argues that 20 years ago you couldn’t find a ‘good’ cup of coffee anywhere, until Starbucks came along and ‘created a desire and a taste for specialty coffee’ that eventually gave birth to the corner specialty coffee shop.”

So the guy’s got a book to sell, and those kinds of statements make headlines because they fly in the face of what most entrepreneurial types believe to be true. But what do you think? Does the argument hold water? For once we’ll refrain from commentary until you weigh in. More tomorrow…

evilstarbucks

Kiva Funds U.S. Business Plans.

Friday, June 12th, 2009

Kiva, the Internet-based micro-lending site that lets people give money to small business owners in developing countries, has an announced an exciting new program for entrepreneurs seeking funding with their business plan here in the U.S. Starting earlier this week, people can contribute cash to small businesses that are based stateside, reports Read Write Web:

“The test will start with 45 U.S. businesses, ranging from baked goods deliveries to child care and taxi drivers. For now, the loans are limited to New York and California, though Kiva is actively seeking new Field Partners to move in to more regions in the U.S.”

And here’s how Kiva works:
“The Kiva platform works basically as a middle man, providing profiles of entrepreneurs for lenders to choose from, collecting the funds to be distributed through Kiva partners, and giving the capital back to lenders (either to re-lend, keep, or donate to Kiva) once a loan has been repaid. To date, more than $75 million for entrepreneurs in the developing world has been raised through the site.”

So far, it appears that the lending program in the U.S. actually works as well. Some of the start-ups on the site, including a child and elder care facility and a catering business, are almost fully-funded. If you’re interested in a Kiva loan, you must contact the company’s two partners for its U.S. loans, ACCION USA, a non-profit microfinance institute, and Opportunity Fund, a community development fund in California. To apply for a loan via ACCION, click here and for the Opportunity Fund click here.

kiva

Twitter’s Fancy, But Stand-By Marketing Tricks Work Too.

Monday, June 8th, 2009

Sure, when it comes to small business marketing these days it seems like all you hear about is Twitter this and Facebook that. While those Web 2.0 gizmos have their place in your business plan (if you know what you’re doing), so to do the old tried-and-true marketing methods that often get overlooked. Take this example, from the Pittsburgh Business Journal: “Who’s on first? Softball leagues prove to be big marketing hit.”

“Softball teams can help a company market itself to the outside world in a couple ways. Wearing the company name and logo on shirts and caps turns every player into a walking – or in the case of catchers, crouching – billboard. Anyone watching from the stands or passing the ballpark gets an eyeful. If the opposition is another company, it creates the potential for connections that could lead to new business.”

Stop laughing. We’ll admit that sponsoring a local sports team or emblazoning your logo on a kid’s soccer jersey might seem a little silly as far as being a worthwhile marketing outlet. But it’s a tactic that’s stuck around for as long as it has because, well, it works. And not only does slapping your business name on some else’s hat serve a good marketing tool, but so too does getting out there and hitting around the ball yourself:

“Service firms get 80 percent to 90 percent of new clients through referrals. If a law firm’s team competed against, say, banks or accounting firms, those are gold mines in terms of referrals,” says Rick winter, former dean of the University of Pittsburgh’s Katz Graduate School of Business, who’s currently a marketing prof with a focus on sports.

The best part about strategies like these is that no specialized knowledge is required like it is, say, with Twitter or even search engine optimization. For regular Joe entrepreneurs who just want to start a local burger joint or car wash, it’s a simple and cheap form of marketing that gets the job done. And when you think about it, you really can’t ask for more when it comes to advertising your small business.

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How Not To End Up Like “Iminlikewithyou.”

Friday, June 5th, 2009

Trying to come up with a good name for business can either be incredibly easy (that is, you name it after yourself) or really, really hard. Not only do you want it to sound good, but it shouldn’t be a blatant rip off of someone else’s business name either. ReadWriteWeb (via Lifehacker) has a few useful tips to get you started, even if you’re only just starting to write your business plan. RWW’s first suggestion is obvious, but useful: Check out the U.S. Patent and Trademark Office to make sure that you’re not swiping something that’s already been taken. If the business name you choose already exists (and chances are that it already probably will) as long as you’re not in the same industry as said business, you you’re usually okay. We say “usually” because businesses like eBay have gone after companies (DepoeBayRealty.com, for instance) who’ve only used parts of their name, although such suits are typically unsuccessful.

Once you’ve determined that you’ve chosen a name that won’t land you in court, try tossing out the name to trusted friends, family members, and other entrepreneurs. See how they respond to the name. Do they cringe? Do they laugh (and that’s not your intended response?)? If only the suits at the start-up Iminlikewithyou had done that before launch—they might not be on their second name, OMGPOP. In other words, if you’re not getting a positive response, back to the drawing board.

Finally, Lifehacker offers upon one more useful suggestion when it comes to finding a name for your business—check out BrandBucket’s Choosing a Name series, which has an incredibly helpful chapter on the importance of pronunciation: “You’ve launched your site. Your first customers loved it…but growth has slowed. Wait…what?! Why?! Well, you’ve seriously disabled your word of mouth when you create a brand that people cannot pronounce correctly.” Enough said.

Does anyone else have any helpful tips for naming a business?

badbizname

Twitter Gone Wrong.

Friday, May 29th, 2009

When it comes to social media, we have a mantra for small business owners: if you don’t know your Facebook from your Twitter, or if you just plain don’t know what you’re doing, tread lightly when it comes to using it as a marketing tool. Not only can it be a giant time suck that diverts your attention from more proven marketing tactics, but it can also go horribly, horribly wrong. Just check out this recent exchange between a Time Warner Cable employee and a customer, who was trying to give the rep advice on how to improve customer loyalty. That’s exactly how Twitter should work for small business (or any business, actually): it allows businesses to connect with customers in a new way. Apparently TWC got it twisted. Here’s the exchange, via Consumerist. jchrisetenbury is the customer and jeffTWC is Time Warner’s official Twitterer:

“@jeffTWC: Please RT: working on customer loyalty programs and would love your ideas/input—raffling an iTouch on Thurs to constructive suggestions

jchristenbury @jeffTWC I have a whole handful, where do I send them?

jchristenbury @jeffTWC I want to choose and pay for the channels I want. (I know this is not a TWC decision but TWC has the clout to push it)

jchristenbury @jeffTWC I want the CS reps to listen when I tell them I have already rebooted my computer and its not on my end. #customerloyalty

jchristenbury @jeffTWC I want a bill that I can understand that doesn’t have cryptic misc. charges. I want to know what the charges are #customerloyalty

jchristenbury @jeffTWC I want Higher internet speeds. the US has the lowest speeds of all.

jeffTWC @jchristenbury Thanks for your tips here – but we’re not really addressing industry problems with this, just creating a marketing tool”

Er, just a marketing tool? At least pretend that you’re using Twitter to connect with customers, because if you don’t, you (and your company) end up looking like opportunistic half-wits. Here’s the screengrab:

consumersit

We’re guessing TWC has learned their Twitter lesson…

GOP Says Gay Marriange Is Anti-Small Biz. Right…

Tuesday, May 19th, 2009

It’s safe to say that business plans aren’t the most inflammatory topic. Small business is only a marginally more riveting. But the two got tied up in an infinitely more interesting kerfuffle this week when Republican chairperson Michael Steele made the statement that the GOP should “recast” gay marriage as being bad for small business because it will increase entrepreneurs’ benefits costs:

“Now all of a sudden I’ve got someone who wasn’t a spouse before, that I had no responsibility for, who is now getting claimed as a spouse that I now have financial responsibility for,” Steele told Republicans at a Georgia convention. “So how do I pay for that? Who pays for that? You just cost me money.”

Normally this blog isn’t one that necessarily gets embroiled in hot button topics like gay marriage or abortion, but given that Steele’s comments relate to small business, it’s hard to ignore. What it appears Steele is arguing (um, we think) is that if a gay employee were to be married, it would increase a small business owners’ insurance burden if that spouse were to join their partner’s policy. Whether you agree with gay marriage or not, the argument doesn’t seem to make much sense. Straight employees get hitched all the time and regularly bring their spouses on their insurance policy, so is Steele just anti-marriage? We have to agree with U.S. News and World Report’s entrepreneur columnist Matt Bandyk on this one:

“The argument basically is ‘more marriages are bad for small businesses.’ In no way does it single out gay marriage–if a straight employee decided to settle down, the employer would face the same increased costs.

Does Steele really want to argue that marriages for small-business employees (and small businesses are the largest type of employer in the country) should be discouraged? That doesn’t sound like the stance the Republican Party—the same party that bemoans the horrors of single motherhood and the death of the family–wants to be taking.”

Does anyone else have thoughts on the matter?

michaelsteele

National Small Business Week: Meeting Our Expectations.

Tuesday, May 19th, 2009

So, as noted yesterday, this week is National Small Business Week, which means a bunch of business and government-types are holding court in D.C. As far as we can tell, that doesn’t translate into a whole lot for those of you out there working on your business plan or for entrepreneurs actually running a small business. It’s not that we want to hate on NSBW, it’s just that they make it so easy. Take the talk held at the event yesterday: “Strengthening Small Businesses In a Challenging Economy”—in other words how to stay afloat and continue securing capital. Trouble is, the panel didn’t cover any new ground. The entire discussion can be summed up by the following: have good credit, build a relationship with your banker or investor, create a solid business plan, tap into Small Business Administration resources.

They may as well have advised you to comb your hair and brush your teeth before you meet with your banker too. Can’t wait for a recap of today’s talk on social media. Perhaps they’ll suggest using Twitter and Facebook!?

It’s National Small Business Week! (So What?)

Monday, May 18th, 2009

Hey everybody—did you know that it’s National Small Business Week?! Oh wait, you mean you’re not that excited? It’s okay, we can’t entirely figure out the use of the week-long event in Washington D.C. ourselves, but then again we’re not entirely ready to write it off yet, either.

While there’s plenty of glad-handing, awards ceremonies, and cocktail hours on the official schedule, it appears that a few interesting talks are scheduled—including presentations on social media, business strategies for the recession, and the keynote address from new Small Business Administration Karen Mills on the future of the SBA. No, none of the speeches really cover any new or exciting ground. But if you’re interested any of these topics (or just bored), you can check them out via webcast (which you can access on the National Small Business Week’s homepage).

We’re hard-pressed to find any value in the event beyond those talks, although plenty of other media and organizations are celebrating the week with coverage of small business-related topics that may be useful. The Washington Post is featuring a series—starting today with a discussion on their site about managing a company’s growth and several other news organizations are doing the same. We’ll keep our ear to the ground for any truly riveting advice or news that results. Not to sound too cynical, but don’t hold your breath.

Come to think of it, maybe we are writing off National Small Business Week.

nationalsmallbiz

SBA To Offer Emergency Bridge Loans.

Friday, May 15th, 2009

Are you one of the scores of entrepreneurs who needs a capital infusion right away to keep your business above water? The Small Business Administration announced this week that help may be on the way—potentially within two weeks.

Speaking to a group at a recent SCORE event in New York, SBA Director of Marketing John Miller said that the SBA will soon announce that availability of $35,000 “bridge loans” for small businesses in immediate need of cash, reports BusinessWeek. The loans will come with a 100% government guarantee, although no word yet on which banks will be providing the loans.

Expect the official announcement during National Small Business Week, which starts on Monday. If you’re in immediate need of cash, get your business plan ready.

bridgeloans

Perspective.

Thursday, May 14th, 2009

Sure, times are tough for small businesses right now, particularly those of you entrepreneurs trying to seek funding with your business plan. But while it might not be the easiest time for your business, just remember it could always be worse. From CNBC:

“MGM Mirage Looks to Raise $2.5 Billion in Capital.”

Okay, so that may not make you feel much better. But still—ouch.

MGMmirage

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