The Small Business State of Your State

For those of you interested in working with other small businesses in some capacity, or needing small business knowledge to help with the development of a business and/or marketing plan, some very useful information has recently been issued by the U.S. Small Business Administration. The data is provided in a national and state-by-state format. A brief overview of the report is shown below. Click on the "compiled data" link and it will take you to a PDF document which provides you with that state-by-state information. Additionally, the links at the bottom of the article will take you to additional small business resources that may be helpful to you.

The Small Business Administration's Office of Advocacy has compiled data for each U.S. state and territory, giving an excellent snapshot of each region's small business activity (in 2006, the most recent year for which data is available).

For example, California had 718,220 small businesses in 2006 and created 87.6 percent of the state's net new jobs from 2004 to 2005. (The SBA defines small businesses as employing fewer than 500 people.)

The health care and social assistance industry was Louisiana's largest small business employer in 2006, while the construction industry was Virginia and Maryland's biggest small business employer that year.

The report pulls together information on each region's number of firms, demographics of business ownership, small business income, banking, business turnover, industry composition and employment gains and losses by business size.

It's worth a visit to check out that status of small business in your state.

By Sharon McLoone, The Washington Post January 27, 2009; 8:00 AM ET Data Points
Small Business Resources

The Value of Social Networking – An Example at Work – and a Challenge for Social Network Members

Since joining the LinkedIN community I have often made note of postings in many groups I belong to about the members' frustration with the "self-serving" type of postings that don't appear to meet the criteria of networking. As someone who has been a strong in-person networker throughout my career, I acknowledge that my opinion has been in agreement with this frustration. However, I found myself absent of an idea that could serve to change things – and then came along a posting by J. Michael Warner of Genesee Crest Ltd.

Michael has started a small business in which he provides online marketing services to help his clients build their brand on the Internet. Because his company is fairly new, Michael put his marketing skills to work and developed a promotional idea he posted on LinkedIN. His promotion involved offering his skills at auction for LinkedIN members – even if the bids were nominal; his thinking being that he could use the auction winner's marketing campaign as a high-profile way to prove the value of his services, thereby serving as a marketing campaign for himself as well.

SOCIAL NETWORKING AT WORK

When I saw Michael's posting I was immediately struck with the thought that this was an opportunity for the type of networking I'm used to seeing – networking that can benefit both parties involved in a very useful way. I responded to Michael's posting with a proposal of my own – if he would select me as the winner of his auction and use his expertise to help me build my company's brand, I would also use my tools (my website, my blog, my LinkedIN postings, my webinars, and my clients) to help promote his services.

I'm happy to report that Michael has accepted my proposal and we will begin immediately helping each other grow our respective firms – all this being done without any exchange of cash in an effort to help each other, and thereby, help our own businesses - the ultimate in effective networking, and the essence of small business in America, in my opinion.

THE CHALLENGE

In today's economy it is critical for small business to take up challenge of creating jobs to help, in the words of our new President, "pick ourselves up, dust ourselves off, and begin the work of re-building America". Given that the largest percentage of small businesses are started on a shoestring, networking plays a vital role in that revitalization. Therefore, I'm issuing a challenge to the members of LinkedIN – and every other social network – I challenge you to come up with a way to utilize these social networks to develop a means by which you can help another small business that then results in helping your own business grow. If each of us does this just once, think of the tremendous impact this could have on our U.S. economy and that of our global community!
Will you meet this challenge? If you decide to take up the challenge, please send me your stories so I can share them with others in the online community. I look forward to seeing the impact of small business and social networks on re-building our nation's economy and hope that the members of LinkedIN will play a pivotal role in this endeavor! Let's see the REAL power of small business and social networks!

5 Tips to Maximize the First Appointment with a Prospective B2B Customer

It's often said that you don't get a second chance to make a first impression. It's definitely true when it comes to B2B sales. When you set up an appointment with a prospective customer, you should leave no details to chance.

1. Research:

Know your customer and their needs as much as you can prior to the meeting. It personalizes your customer service, and your potential customer will be pleased that you took the time to find out about their business.

2. Have passion and confidence:
Remember that every appointment is like a job interview. You may be invited back or eliminated from the competition. Remember to show your passion for the business and your confidence in your ability to fulfill their needs.

3. Ask qualifying questions:

Have a list of "qualifying questions" prepared to take with you. Some of these should be specific to their industry, and some to their specific business, so you can identify the problems they are having and come up with solutions to solve them.

4. Sell solutions and benefits, don't push product:

Don't try to "sell them" at the first meeting. Use this as an information-gathering session. Take a "consultative" selling approach. Your job is to pull information out of them and then educate them on the solutions and benefits your company can provide.

5. Offer to hold the meeting at their office:
Be on time, well-researched and prepared for any questions. Meet the client at their business location. They will appreciate you taking the time and saving theirs.

Forbes – Entrepreneur’s Guide to Public Resources

Interesting article in Forbes magazine recently about a wide variety of resources for entrepreneurs. Includes information about gaining access to Angel Investors, programs from the SBA (Small Business Administration) that can assist you with loans and other services, a group that can direct you to the best Venture Capital firms, and information about city and state grant and tax incentive programs. Also links to 11 sectors of business still being invested in by Venture Capital firms and 9 ways to make money online. Click on this link to go directly to the article

http://www.forbes.com/2009/01/09/small-business-sba-ent-manage-cx_mf_0109publicresources_print.html or get a PDF version of the article on our website at http://www.strategicgrowthconcepts.com/marketing.php?info=Marketing+Information+Resources_I12

Learn to Use Mobile Advertising for Your Business

Given the high level of interest in, and reader commentary on, this week's earlier posting about Kroger's new mobile coupons, I thought I would continue our exploration of this exciting new media opportunity. Based on my review of the many comments made in the LinkedIN groups where I posted a reference to the Kroger article, as well as the many direct messages I received, it appears to me that there is a strong level of interest in mobile messaging – as well as a distinct lack of information, and a hunger for learning everything possible. Therefore, I did a bit of searching to locate materials that can provide some basic information and resources.

Attached to this posting you will find a link to a white paper written by IDC Information and Data entitled, "Common Short Codes: The Time Is Now for Mobile Marketing and Outreach". This document provides a good overview of mobile advertising opportunities, explains the technology, and gives excellent examples of how the technology is being utilized effectively. http://www.usshortcodes.com/docs/Mobilize_with_CSCs.pdf

The second link you will find in today's posting is to the Common Short Code Administration which has engaged a firm called Neustar to operate the Common Short Code Registry on behalf of the CTIA – The Wireless Association®. Follow this link and you can learn all the steps needed to register a Common Short Code (CSC) for your firm's use, as well as gaining a broad range of information on the technology and the industry. http://www.usshortcodes.com/.

Take the time to explore mobile advertising; along with all things web-based, mobile advertising is another great technology to give small businesses the same advantages as larger firms. It's a way to level the playing field to provide small businesses access to customers and opportunities they would not have been able to access just a few short years ago. Make sure you learn how to use this technology to YOUR firm's best advantage!

If you like this article and this topic and would like me to continue to provide additional information and resources about it, make sure to let me know by leaving a comment on this blog or sending me a message via my LinkedIN profile at http://www.linkedin.com/in/lindadaichendt.

Kroger Offers Mobile Coupons Nationally

As someone who has worked within the mobile industry, I have been fascinated to watch the continuing evolution of wireless technology applications. I have long felt that the wireless equipment manufacturers and retailers have not been doing a very good job of educating consumers about the applications available, how to utilize the applications, and how the applications can benefit them. I'm a strong believer that in the not very distant future our cell phones will be as useful to us as our laptop computers in that they will have all sorts of software on them that we use as part of our everyday lives. Today, this is simply not the case; while consumers are purchasing increasingly high-function cellphone devices, most have no idea how to use that functionality.

However, at long last a major national grocery retailer is making available a mobile coupon program and since everyone needs groceries, I believe if enough people find out about the program it can go a long way toward increasing the awareness of consumers on this convenient, useful application for their cellphones. In the following link you can read about Kroger's new mobile coupon program. http://www.mobilemarketer.com/cms/news/commerce/2417.html

Once I read the article, I decided to try it out to see how well it worked and I have to say, I was quite impressed! It took about a minute and a half to register for the program, about 30 seconds to download the software into my phone, another 10 seconds to register my Kroger card into the program, and VOILA! I began receiving coupons that were valid in my zip code! I then scrolled thru the offers, selected those I wanted and opted to save them. Once saved, they were automatically loaded onto my Kroger card and I saw photos of the product selected on my phone. Now when I go to the grocery store this weekend and purchase those products, the discount coupons will automatically register from my Kroger card as I am checking out! In this economy where every penny counts, what could be easier?

As you read this article, do yourself a favor and start thinking of ways that your company might be able to start utilizing mobile technology to your advantage – and your customers!

Five Ways to Fail at Attracting and Retaining Customers in 2009

Earlier this week I offered an article written by Paul Segreto which focused on ways to overcome your fears of business failure and not let them paralyze you to inaction. Today I thought we would explore business failure from another perspective – those business owners who choose to believe that they have all the answers, that the customer should learn to properly appreciate them instead of the other way around, and that their business is so successful that it's not possible for anything to cause its' failure. Do you know any of these business owners? Have you worked for any of them? How many businesses do you know that are (or were) successful until the owner's ego got in the way?

For those of you who can relate to these questions and are right now thinking of a certain business that you are currently aware of (or one that used to exist), you are likely to enjoy the irony of the article I read in a recent issue of the MarketingProfs newsletter; the article was entitled, "Five Ways to Fail at Attracting and Retaining Customers in 2009". This article takes a sarcastic approach to trying to help you understand the actions you need to take to insure that your business continues to grow and achieve success. I know as I read it I was reminded of several companies in my history that could have been case studies for the article. Read for yourself at the following link and see how many companies you know that could use this reminder – hopefully you're not one of them! http://www.marketingprofs.com/9/ways-to-fail-at-attracting-retaining-customers-difrisco.asp?sp=1

Facing the Fear of Business Failure

Recently on LinkedIN I posted a request in my groups to receive submissions for various topics of interest that group members would like me to write about in this blog and elsewhere. One of the topics that had a high level of interest was 'what to do if you think your business is in trouble', likely a topic of wide-spread interest given today's economic climate. However, before I could even start thinking about what I would write to address this request, one of my networking friends sent me an article that he had written which I believe to be a very strong first step to saving your business. This particle article is directed toward franchisees, however, it equally applies to any small business owner and I think all will find it of value.

Facing Failure

I can personally relate to the trials and tribulations of owning a small business as I have "been there and done that" and have experiences on both ends of the spectrum from achieving overwhelming success to dealing with bitter failure. I have definitely come to understand the fine line between success and failure in trying to nail down the American Dream.

I know it is sometimes counterproductive to even mention failure which is why the subject is always avoided and never discussed. Yet, it's out there and it's real. Once business owners face the possibility of failure and its very real consequences they can be motivated to understand that failure is not an option and commit 100% to a plan that addresses immediate problems and provides solutions accordingly. Even if it's necessary for the plan to be quite drastic or aggressive due to prevailing circumstances, business owners that unequivocally realize that failure is not an option are prepared for immediate action.

Let me emphasize one point. Business owners (entrepreneurs) should not view poor sales and disappointing profits as either potential or immediate failure and stick their heads in the sand. I made that mistake in the past and suffered the consequences. Instead, they should build upon the courage it took to become a small business owner and recommit to success as they did when they first took the entrepreneurial plunge.

They need to remember their wishes, hopes and dreams that prompted the decision to own their own business? They need to remember the admiration of family and friends when they heard about the new venture? They need to remember the excitement when they actually signed their first lease?

Let me clarify something. I failed in business ownership as a franchisee. Not because of anything the franchisor did or didn't do but because I put and kept my head in the sand and did not face reality. I could go on and make excuses about things that happened around me but at the end of the day I could have turned things around if I got my own head out of the sand, made some difficult decisions and took full, immediate responsibility.

Unfortunately I was scared of failing. I was afraid of what people would think. I was ashamed at what other franchisees, ones I put in business, would think of me. I couldn't even think of facing my family. All lame excuses for not taking responsibility. Maybe a hard swift kick you-know-where would have helped.

Did I mention that I previously ran the franchise company where I failed as a franchisee? Did I mention I was elected by fellow franchisees, President of the National Advisory Council? Did I mention that I owned and operated five franchise units?

If I had clearly understood the implications and consequences that were looming on the horizon and if I was able to get my big ego out of the way and address things head on, maybe I could have survived. Maybe I could have at least implemented an exit strategy that would have, in some small way, paid back the loyalty and support of my employees, family and friends.

In the end, I may not have survived because it may very well have been too late when and if I finally took action and responsibility. But maybe I could have at least exited with some dignity. Also, I could have saved many innocent people a great deal of hardship, embarrassment, wasted effort and ill-spent resources if I did face reality. This includes my family, my employees and yes, my franchisor; all who believed in me. Yes, it was a tremendous learning experience but not one I would bestow or wish on anyone.

As we've entered 2009 in the realms of economic uncertainty, I'm certain already difficult situations have been compounded but I'm confident a snap back to reality could only help. By facing the failure head on, the path to success will be clearer than it's been for some time. I once read "the greatest achievement in life is to stand up again after failing." How very true.

Paul Segreto is Founder and President at 21st Century Franchise Coach with over twenty years' senior level management, marketing and development experience exclusively within the franchising industry. Paul can be contacted by email segreto.paul@gmail.com. Company website can be viewed at www.21stCenturyFranchiseCoach.com.

eMarketer’s Predictions for 2009 Online Spending

I read a very interesting article today from eMarketer regarding their predictions for 2009 online spending. The article examines trends in various online advertising strategies such as search, video, display, lead generation, and email. It also examines the viability of targeting demographic segments by age and cultural diversity in online advertising. Lastly, it examines online purchasing trends in retail, and expected trends in eCommerce on social networks. Some of the information contained within the reports may surprise you.

For those that are working on final revisions of their 2009 marketing plans, this article can be helpful in guiding you in your decisions regarding your online strategies and budget allocations. For those that have either concluded your planning for 2009 or don't yet have extensive knowledge on web strategies, this article can serve as a good overview to insure that you have basic knowledge on trends in this channel.

The link to the article follows: http://www.emarketer.com/Article.aspx?id=1006813

After reading the article, I would be interested in seeing comments from you which identify your thoughts regarding the article's content and/or any resulting changes you may initiate in your 2009 Marketing Plans as a result of this information.

Mobile Marketers Guide to Mobile Commerce

I read an interesting article recently in the Mobile Marketers trade association newsletter regarding the use of Mobile Commerce as an advertising channel. The article provided examples of firms that had used Mobile advertising quite effectively, made reference to the fact that consumers took awhile to warm up to eCommerce as an advertising/purchasing channel and that the same was likely with Mobile Commerce, and it also contained links to excellent Mobile Commerce educational tools. Among the tools available via this article is a PDF copy of the Mobile Marketer's Classic Guide to Mobile Commerce, an excellent overview of this emerging industry. The link below will take you to the article on the trade association's website.

http://www.mobilemarketer.com/cms/news/commerce/2173.html

While you're there, I also encourage you to review the website for additional industry white papers and educational materials, as well as a section where you can sign up for a free educational newsletter. I have found this site to be quite full of very useful information and refer to it often.

Now is the time to learn everything you can about Mobile Marketing and Mobile Commerce as it's becoming obvious that this is likely the next big advertising/purchasing channel. Though this channel is still in its infancy, due to the high penetration of cell phone users in the U.S. (approximately 85% market penetration) and higher-still penetration in Europe (140% market penetration – meaning that users have multiple devices), it is highly likely that Mobile Marketing/Mobile Commerce is not going away but rather will become an integral part of our everyday lives.

Let me know if you find this article link of value; if so, I will continue to seek out similar educational tools and opportunities to make available to you.

The Art of Selling at Full Price

Below is an article written by Lawrence Dawood, the Director of Training for Wireless Toyz, a franchised cellular retail chain. The original audience for this article was the Operations Field Staff for the chain who were experiencing significant hardship in weaning the franchisees away from "bargaining" for customers.

As I read this article again recently, it occurred to me that the issue is not limited to the cellular industry, and that Lawrence's thoughts could provide assistance to many business owners in many industries. Throughout my career I've worked with companies and clients in a wide variety of industries and have found this issue to exist in most of them – sales people are afraid of the difficulty of selling "value" so they resort to selling "bargain" to achieve a closed sale, which ultimately harms the business financially. In previous training that I've conducted on consultative selling, this "value" proposition has typically been enthusiastically received, but rarely implemented once they're back in their home environment. I've come to believe over time that the reason is because we haven't started the change in the thinking process where we need to – at the top, with the business owners.

So my thought in making this article available to you is to bring the dilemma to the forefront if it exists in your organization, and to provide you with some "tools" to help eliminate the issue. Therefore, when you read the article below, substitute your industry and product into it wherever it references the cellular industry and products, and I believe you will find benefit in it as well.

Selling Value, Not Price

"Our products have become commoditized and our customers only care about price." This was the opening volley at a recent sales training session when I introduced the idea of Selling Value Over Price. The salespeople's resistance to the idea was strong and quite predictable given what's gone on in our marketplace over the last 5 years. Far too often in the cellular market, we have degraded our value proposition to the point of offering our products for "FREE!" The wireless industry has taken one of the true "miracles" of communication - the cell phone - and systematically stripped the value from it to the point where customers "expect" to get a new "FREE" phone almost every year. Cellular Agents are looking at their bottom lines wondering where it will end and how they can slow the degradation of their business. While we can't sell every customer and prospect at list price, there is still a large percentage open to a well-defined value proposition that begins with the following 3 Steps. 1. First, you've got to BELIEVE! I asked the sales team a question. "Do you believe that YOU and what you offer are worth more than the other guys?" They all chimed "YES!", except one guy who probably should change the title on his business card to "Giveaway Expert". We then set out to answer the following questions. "Why should a customer pay us more than the other guy who offers a similar (or the same) product?" and, "How do we convey this to the customer?" They listed about 2 dozen reasons why the customers should pay more for their services than their competitors. The next key was to transfer these "added values" into a tangible part of what they offer to their customers. If your sales team (from the Owner on down) doesn't believe that you're "worth more" than the competition, then you're not. Game over. Play the discount game and good luck. However, if that isn't where you want to be, then try the above questioning exercise with your sales team and then read on. 2. Define your Value Proposition Building a Quantifiable Value Proposition for your customers begins with the understanding that "value" often comes in the elements that we wrap around the product, and not in the product itself. Products have become so similar, that the focus must shift from the product to "the relationship." Here are some of the elements of value (beyond the product) that can add tremendous value over the life of a customer Relationship: The "expertise" of your personnel at uncovering problems and helping the customer to solve them. The resources and special services of your company on the sales and service sides of the business. Knowledge of Applications-how other customers creatively utilize your products and accessories to improve their efficiency and profitability. Your ability to demonstrate ROI (Return-on-Investment) in terms of how our products, expertise and company resources can help to increase our customer's revenues, decrease their costs, and/or impact their bottom line. Your ability to quantify all of the above in dollars and cents for the customer. 3. Improve Sales Competencies As an industry, the wireless business (at least on the cellular side) has transformed itself from being "problem solvers" to being "promo-pushers." The average cellular salesperson would go into withdrawal symptoms if you took away his/her promo's for the next quarter. Hiring people after they've been in this business for any length of time is almost a guarantee of lower margins. Therefore, upgrade your sales team by hiring reps who are "Problem Solvers" vs. "promo pushers." Hire people who understand Step 2 - how to define and sell "value" beyond the product and a potentially lower cost. For existing reps, it is critical to increase their competency at uncovering what customers will pay extra for and conveying this during their presentations. This takes training and on-going role play on a weekly basis. Look at the deals you sell for the largest margins and dissect the reasons why customers purchased from you vs. going to a cheaper alternative. Selling "Value" is not an easy transition for most salespeople, but an essential one if they want to boost their income... and if you want to boost the profits at your company. So the bottom line is to focus on creating a value proposition for your customers and training your team to package and present along with the product. You'll find this to be the most profitable sales decision you can make... and it'll show up on the last line of your Profit and Loss at the end of each month.

Funding Your Company in Today’s Tight Economy

We've all heard the stories and read the articles in the media – well-established businesses with solid track records can no longer get funding to keep their businesses going thru tight spots or to expand, or stories about people with almost perfect credit scores who can't even get a bank to talk to them about funding their new business – even with collateral. If you read enough or hear enough, it might make you think that now is definitely not a good time to be in business for yourself. That being the case, I am always on the look-out for information that tells a different story – that it IS possible to obtain funding for your business – and it is possible to be successful in business for yourself, even today. So I was very happy when I came across this article on LinkedIN written by Internet technology blogger, Kevin Flood. Kevin offers a wealth of information about sources of potential funding for early-stage businesses that may be of value to you, so I am happy to make that information available via this posting. I encourage you to follow the link below and read Kevin's article. Happy hunting!

http://kevinflood.blogspot.com/2008/12/raising-seed-capital-in-great-recession.html

Personal Characteristics of Successful Entrepreneurs

• An overpowering need to achieve, as opposed to a need to be liked, or to exercise power.
  
• The trait of following through on a commitment, not quitting half-way through when the going gets tough. In short, perseverance.
  
• Positive mental attitude, or the ability to remain optimistic in difficult situations, which essentially grows out of being self-confident about one's abilities.
  
• Objectivity. The ability to accurately weigh and assess risks associated with a particular course of action, as well as being realistic about one's own abilities and limitations.
  
• A respectful attitude toward money, but a tendency to look upon money as a means for accomplishing things, or a way of keeping score in the game of business, rather than as a thing to be sought as an end in itself.
  
• The tendency to anticipate developments and to make things happen, rather than constantly reacting to problems as they arise.
  
• Resourcefulness. The ability to solve unique problems in unique ways, to be able to handle things that come up for which the entrepreneur has no previous experience to rely on as a guide.
  
• Personal relations. The successful entrepreneur usually has an emotionally stable personality, is cheerful, cooperative, and usually gets along well with (without necessarily being close to) employees and associates.
  
• Communication skills are well developed, both in oral and written presentations.
  
• Technical knowledge is usually well-rounded, and the successful entrepreneur generally is knowledgeable about the physical process of producing goods and services, or at least can effectively utilize information regarding the physical process.