Black Friday and Cyber Monday, most people know about those two huge holiday season shopping days, but do you know about Small Business Saturday? This year, in its second year of existence, American Express, which sponsors the event, is teaming with foursquare to offer American Express cardmembers an impressive discount.
Most people know that Cyber Monday is the first business day after Thanksgiving, thus advertised as the biggest online shopping day of the year, as it is the first day that many online shoppers have access to broadband. Nearly everyone knows about Black Friday, the day after Thanksgiving, when brick-and-mortar retailers --- and online retail giants like Amazon.com --- roll out huge sales promotions to kick of the holiday shopping season.
Small Business Saturday is smack dab in between those two dates, and in 2011 is Nov. 26. It aims to encourage shoppers to support their local small businesses, as opposed to the retail and Internet giants they "support" on Black Friday and Cyber Monday.
There are more than 100,000 business participating in Small Business Saturday. foursquare users will be able to find nearby ones by opening the foursquare app, tapping Explore and then Specials.
Then comes the best part: foursquare users who "check in" and spend $25 or more on their American Express cards at a participating retailer will receive a $25 credit on their American Express bill.
Of course, since American Express isn't accepted "everywhere," you'll have to make sure the retailer accepts it, first, but that's a hurdle Amex probably isn't going to broadcast.
A couple of tips: when using foursquare, be sure to expand your radius out to 10 miles to be able to see them all. Also, don't forget to sync your card with foursquare before Small Business Saturday to be eligible for the discount.
Then, when when you check in at a participating business, you'll see a special "load to card" button. Tap it, pay with your American Express card (remember, $25 or more), and you’ll get a notification from foursquare; the credit will show up on your statement about 5 business days later.
Nicely, this is all automated by American Express. You don't have to worry about the business' employees not understand what you're talking about with regard to a foursquare promotion, as sometimes happens.
You can find the official Small Business Saturday website here. At the official site, you can see that more than 2.3 million people have liked "Small Business Saturday" on Facebook, at the time of this writing.
You can watch an American Express video promoting Small Business Saturday below.
After Groupon turned down a $6 billion acquisition offer from Google, an IPO was highly anticipated, and it was announced earlier this week. After looking at the details of its financials as revealed in the S-1 it filed, perhaps it should have taken the offer, and perhaps potential stock buyers should at least think carefully.
Among the details in the S-1 are the following:
Groupon has $290 million in current assets ($208 million of it in cash). However, it also has $520 million in current liabilities, which means they are $230 million in the hole. That's despite a recent infusion of $950 million in a recent fundraising round.
Groupon is bleeding money, which makes point one above worse. It costs Groupon about $1.43 for every $1 in revenue. Much of their costs can be attributed to trying to get more customers --- not necessarily end users, but more deal-giving small businesses.
Their growth sounds amazing, but that's not necessarily a good thing. In Q1 2010, Groupon had revenue of $44.2 million. In Q1 of 2011 they had revenue of $644 million. Amazing, yes, but in Q1 2010 they had net income of $8.5 million. That's right, they had a profit. Meanwhile, in Q1 of 2011 they had a loss of $102 million. In fact, after they shifted gears and upshifted their growth in 2010, following Q1, they had a loss of $398 million on revenue of $669 million.
In addition, an analysis of one of its oldest markets, Boston, MA, shows a worrisome trend. Not only are Groupon's costs to acquire customers rising sharply, its revenue per customer is rapidly dropping. Margins are shrinking, and the site sees a lower number of Groupons sold per deal.
The number of competitors is continuing to rise as well. Not only has Google Offers just launched, though admittedly just in one city, so has AmazonLocal (once again, in just one location).
Minyanville believes Groupon has chosen to IPO now because it is desperately in need of cash. If that's true, that Google deal they passed up in 2010 is looking better and better.
Apple has scheduled a secret meeting for retail employees on Sunday, Feb. 27. The report, emerging on Feb. 22, said that employees were required to sign an NDA in order to attend the meeting.
Reportedly, this is typical of Apple. It generally holds its retail all-team meetings at the company's retail stores after closing on Sunday evenings. It was also reported that the meeting was originally scheduled for last week, but was pushed back for one week, for unknown reasons.
It's expected that Apple will update its MacBook Pro line this week, on Feb. 24, but that would come prior to this newly reported meeting. Instead, AppleInsider thinks the retail meeting could be related to some new in-store initiative or service.
Could that be a new move toward a free MobileMe service? That has been suggested as a way for Apple to "rescue" MobileMe for some time. A recent report from an Apple retail employee indicated that upselling MobileMe was pretty much an impossible sell.
Update: It now appears it's not as sexy as a product launch. BGR says that a new service known as "Joint Venture" will be launched, allowing small businesses and prosumers to use Geniuses to address issues via telephone consultations and on-site visits. Currently, Apple’s Geniuses don't provide support over the phone or via on-site visits.
If you can't buy 'em, clone 'em. Google, which earlier failed to buy Groupon despite a $6 billion bid, is preparing its own competitor, which will be called Google Offers.
While not as snazzy a name as Groupon, the idea is the same: a deal-of-the-day site that senda an email to daily to end users with a local deal. If enough users sign up within the trigger period (we would assume 24 hours), the Google Offer becomes valid.
The evidence it pretty clear: Mashable has received a fact sheet (embedded below) for Google Offers, one that the company is sending to businesses. More evidence has been found in the form of a Google Offers logo, hosted on a Google server, no less.
The capper is the following: Search Engine Land received an email that seems to confirm the project. Although the email does not confirm the name as Google Offers, and it uses the word "test," it seems pretty clear:
Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program. This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.
How is this going to affect Groupon, and Living Social? It's going to affect them, but both companies are well-established, and Google Offers won't kill them.
Living Social just had a huge Amazon.com gift card deal that ended with 1.3 million sold. Groupon is preparing a Spring IPO that could value it at $15 billion.
Some smaller players may fall by the wayside, but it's not as though deals such as these overlap. People will go to Groupon, Living Social, or Google Offers, or other sites, depending on whichever has the best deal. Not everyone wants an Amazon.com gift card or a deal at the Gap (to reference two huge Living Social and Groupon deals).
Although people used to fear that Google entering a market would kill off other products, it's not as though Google Checkout has dented PayPal's market share much, and Google Places hasn't killed Yelp.
What Google Offers will mean is more reason to check your inbox every morning, in hopes of a deal.
I am quoted in a FOXBusiness small business article on how employers can protect their intellectual property rights in a Facebook/Twitter social networking world:
In an age of way-too-much information and widespread social-networking addiction, businesses are finding it increasingly difficult to protect trade secrets and practices. It’s important to know your rights as an employer and/or as an employee.
If you are neither of the above at the moment, and are instead on the job hunt, you should keep in mind that potential employers have the right to (and will) research your online living activities. In one quick Google search, what might a recruiter learn about you? It’s important to always keep your professional goals in mind when posting personal details on sites that are publicly accessible.
If you pass the test and find yourself employed, you’ll then have to follow company policy regarding Internet activities. Because privacy is often a top concern for employer and employee, companies are adjusting to the new online environment and adopting rules and regulations accordingly to ensure protection.
Anita Campbell, founder and CEO of Smallbiztrends.com, said there’s a major difference between large corporations and small businesses when it comes to social media sites. Large corporations are more likely to block all social media sites, such as Facebook and Twitter, from being accessed on the company network.
However, she said most small businesses do not block these sites at work and, in some cases, require employees to participate in them for company benefits. Jonas M. Grant, a business attorney and expert, said some employers rightfully worry about the disclosure of confidential company information by employees who are either posting on Web sites under their own names or anonymously. But he said employers do have the right to legally prohibit certain social-networking activities involving the business to avoid a slip of an idea or secret.
According to Campbell, small businesses using social media networks can have advantages and disadvantages. Recommending your employees take full advantage of the power of social media for “free” marketing is a definite plus. But allowing employees to have access to social media all day can deter them from actually working, decreasing productivity.
“But the stickier issue is one of inappropriate communications by employees,” Campbell said.
Grant recommends companies have an employee manual and training program in place specifying acceptable workplace use of the Internet in general. He said employers should expressly tell their employees what they can and cannot talk about, especially in an age with constant Internet communication.
“Employers are also wise to have employees sign employee loyalty and confidentiality agreements at the time of hire,” Grant said.
Experts agree that prevention is key for small businesses, and preparing for “what-ifs” is the best protection. Grant said communicating concerns with employees, outlining company rules and restrictions, while implementing appropriate policies and agreements in conjunction with employment law counsel, is the best method of prevention.
WASHINGTON (Reuters) – U.S. President Barack Obama will announce steps on Monday to make it easier for small business owners to borrow money, using $730 million in stimulus funds to cut lending fees, boost loan guarantees and expand other programs, officials said.
“We know that small businesses are the engine of growth in the economy,” said Christina Romer, chair of the White House Council of Economic Advisers. “We absolutely want to do things to help them.”
Romer, speaking on the NBC program “Meet the Press” on Sunday, said the government would pump “a significant amount” of money into encouraging small business lending but did not give a total figure.
Lawrence Summers, head of the White House National Economic Council, told ABC’s “This Week” the small businesses plan was part of the president’s overall effort to “put in place a program that addresses the crucial problems and permits (economic) stability to be regained.”
The Obama administration believes small businesses, which accounted for about 70 percent of new job growth over the past 10 years, will ultimately drive the recovery from the current recession, one of worst in decades, a U.S. official said.
The programs being announced on Monday build on the $730 million for small businesses included in the $787 billion economic stimulus package approved by Congress last month.
“There are already a lot of things to help them in the recovery package,” Romer told NBC. “Some of what will be coming out are things that were in the recovery package — increasing the SBA (Small Business Administration) loan guarantees, lowering fees.”
Do you need cash to help jump start your small business? Well, you are in luck, because help is on the way! Bank of America Corp. just issued 40 grants worth more than $3.7 million (part of a $10-million plan they announced in July) to organizations that lend to small businesses. The bank said that their plan, over the next year, should release about $100 million in low-cost, long-term capital for small business micro loans over the next year.
Through Fractional-Reserve Banking, the nonprofit lenders are able to release an average of 10 times the amount they receive. The money is expected to make 2,000 loans to small businesses and start-ups through December 2011. With an average size of $13,000, the loans are expected to help roughly 8,000 small and rural businesses.
Find out more about the SBA loans and grants by visiting SBA.gov. Also, for specific information on microloans and to see if your business qualifies, visit their micro loans page.
Today I want to share a few thoughts on small business financing. If you are new to entrepreneurship, you may not be too familiar with terms like Venture Capital (VC) or Angel Investors. In this small business article, I want to briefly explain these terms and share with you a few creative ways to get the money you need to get your small business started or to take it to the next level.
As part of your business plan, you should consider how much money your business will need, when it will need that money, and how you are going to get it. This will help you stay focused and not be wasteful. Depending on the amount of money you need and when you need it, you may want to use various types of small business financing for your venture. The methods I list below certainly aren’t your only options for financing, but just a few of the main ones. Consider the following types of financing and their pros and cons:
Bootstrapping
This is when you start a business with only a minimal amount of capital (maybe a few thousand or even just a few hundred dollars) and continually reinvest the company’s earnings to provide additional capital investments. Bootstrapping is probably my favorite type of small business financing. This is because it lets the business grow naturally and keeps you, the business founder, in charge of the direction of the company. Bootstrapping means that the company grows and expands on its own without an outside infusion of capital. If you need something for the business, you have to wait until you generate enough money to buy it!
Friends and Family
Another way some small businesses get the capital they need to get start or expand quickly is through the entrepreneur’s network of friends and family. Although this may seem like an easy and safe route to take for small business financing, I issue an extremely harsh word of caution before you consider such a thing. Your friends and family are the most important relationships you have in your life and if by some means you are not able to repay the money, this can cause large problems in every area of your life. While there have been many example of friends going into business together where both friends succeeded, there are countless untold stories of business partners ruining their relationships because of failed businesses and unpaid debts.
VC (Venture Capital)
If you study business in school, say by getting your MBA (Masters in Business Administration) or even an undergraduate degree in Business Management, like me, you will learn about Venture Capitalists. My advice would be that if you have big plans for your little business and don’t want to be bossed around, you should seriously consider against going to a venture capitalist. That being said, VCs can still provide a good source of capital and great business skills and resources to help your business grow. However, they can be very demanding and very picky on which of all of the many businesses that are presented to them they will actually invest in. I’ll write a blog post later to expand on the world of VCs as this small paragraph certainly cannot do it justice.
Angel Investors
Many people new to entrepreneurship aren’t familiar with exactly what angel investors are. Many times Angel Investors work in small groups or networks and they invest their own money, as compared to Venture Capitalists who invest their investors’ money. Angel Investors typically invest less money than Venture Capitalists and don’t take on as much control but act more as advisers. Angel investing seems to be on the rise in recent years and is definitely a good source of small business financing.
Online Investing
OK, so this last area of financing is going to be one you may not hear about too often, but depending on your needs as a small business owner, could be extremely valuable. One website, Prosper.com, has set up a peer-to-peer marketplace where investors and borrowers meet. While the website isn’t restricted to purely business uses, many small business investments are made all the time. Prosper.com is a great alternative to getting money from friends and family and could be the answer you’re looking for.
I hope this helps answer some of your questions about how to obtain financing for your small business. As I have more time, I will expand further on these topics and provide more small business resources to connect you with small business financing. Let me know if you have any questions as I would be happy to answer them in upcoming articles!
“90% of all new small businesses fail within the first few years!” You may have heard that statistic before. Well, it seems that there isn’t much in available data to support it. Maybe it’s a scare tactic or maybe it’s just people exaggerating. Either way, just because a lot of businesses fail, it doesn’t mean that yours has to be one of them.
But, since we’re on the topic, let’s examine the small business failure rate a little bit closer. According to data available on the US Small Business Administration’s website, about 34% of new employer firms are still in business 10 years after opening. That often won’t even include businesses that may change entity types or reincorporate. So, I think it’s safe to say that about 1/3 of new businesses survive their first 10 years. Now, if we were talking human survival rate, that’s pretty bad but for a small business survival rate that isn’t too bad.
Data from the SBA website states that 7/10 new firms survive at least 2 years, ½ at least 5 years, 1/3 at least 10 years, and ¼ at least 15 years or more. They also stated that small business failure rates were similar across states and major industries.
So, after looking at that data on the US small business failure rate and going to see what other people out on the net thought of this rate, I found a post from 2008 on Small Business Trends that also shares more data. According to their figures, about 29% of the small businesses they were tracking were still in business 10 years later; a little lower that the SBA numbers. Also, their data showed that about 25% of the small business that fail, do so within the first year. So, if you are past your first year in business, your chances of survival just got a lot better!
I hope this small business resource was helpful to you. Please leave a comment and let me know your thoughts on the small business failure rate. Also, be sure to pass this article along to your friends using one of the social media or email links below!
In a previous blog post, I shared some insight on how to find small business software. Today, I want to expand on that and share with you the top 10 must-have small-business software applications. Depending on your business and industry, you may not need all of these software applications; however, I think each is important to consider.
Accounting Software – One of the first software packages any small business will purchase is the accounting software. The #1 rated accounting software for small businesses is Intuit’s QuickBooks. There are various different types of QuickBooks depending on your needs and budget. QuickBooks is one small-business software application that can grow with your business. If you are looking for your first real accounting software, I recommend QuickBooks Pro 2011, you can purchase it directly from Intuit on their website or from one of their many resellers. QuickBooks Online is also available for those of you wanting to avoid hosting your own data and wanting the ability to access everything in the cloud.
Customer Relationship Management Software – A CRM, as they are known in the business world, helps you keep track of your prospects, leads, customers, vendors and other relationships. A CRM is a great tool for helping your employees track their interactions with customers for support, sales, marketing or management. Many small businesses elect to build their own CRM and while this can work, I would advise against it unless you really have a unique business. You should stay focused on your core competency and let other businesses do theirs. If you want the best CRM in the industry, SalesForce.com is your answer; however, you will pay for it. If you are looking for a cheaper solution, you may want to go with SugarCRM, which is an open source software application. However, you may need to pay to get it set up and to train your employees on how to use it.
Point of Sale Software – If you have a retail element in your small business, you will need a Point of Sale small-business software application. If you are already using QuickBooks for your accounting, I suggest looking into QuickBooks Point of Sale. This will allow you to scan items at the point of sale and make direct updates to QuickBooks. But remember, you will need a merchant service provider to accept credit cards. Also, you may get a Point of Sale Software application included with your ERP or inventory management software.
Web Analytics Software- You may not think of web analytics as being a small-business software application, but it is something you should consider. If you are running a website, a web analytics software application is a must. Most small businesses should stick with Google Analytics as it’s free and has more features than most users will ever need. However, if your business grows to the point that Google Analytics is no longer enough, Omniture, recently acquired by Adobe, is the leader in large-business web analytics software.
Content Management System – A CMS is used to host a website in order to make it very simple for anyone to quickly update content. This can be useful if you continually need to update your website but don’t want to involve your development or IT department. Drupal is an open source application that is widely used and recommended.
Word Processing Software – We all know that we need basic word processing software when it comes to running our business. Things like Word, Excel and PowerPoint seem commonplace now a day. So, when you are considering your small-business software applications, don’t forget the Microsoft Office Suite.
Enterprise Resource Planning and Inventory Management Software – In big business, many companies turn to Microsoft Dynamics for their ERP solutions. However, this can be expensive and oftentimes overkill for many small and mid-sized companies. If your business carries inventory, manufactures items or needs to create and fulfill orders, I suggest looking into an inventory management software application. If you are using QuickBooks for accounting, I suggest using Fishbowl Inventory for your inventory management software. It integrates with QuickBooks and lets you track inventory across multiple locations.
Remote Access and Web Conferencing Software – If you need a small-business software application to remotely view customer or prospect computer screens, consider a remote access or web conferencing application. You can use industry-known software such as Go To Meeting or Log Me In Rescue to remotely help customers solve issues or show prospective clients how your business can help them.
Email Software – If you want to stay in contact with your customers, a great way to do that is via email blasts and promotions. Constant Contact is a small-business software application that lets you easily create professional email campaigns without the technical knowhow. Also, if you have employees that travel, you may want to consider SMTP Server software. SMTP2Go is an SMTP Mail service that lets your employees send emails from anywhere worldwide. This is valuable for traveling salespeople and other employees as ISPs often prevent emails from sending if you are not connect to the Internet via their connection.
Graphic Design Software – If you have a need to create and edit graphics, whether for your website or other marketing purposes, you should consider some graphic design software. While these software applications can seem overbearing at first, with a little time watching instructional videos on YouTube and a little practice, you can get what you need done. The most widely known graphic design software application is Adobe Photoshop. But, depending on your needs, you may want to consider Adobe InDesign as well. Also, if you are looking for the low-budget option, Gimp is a free small-business software application that will satisfy most of your graphic design needs.
I hope this list of small-business software applications is helpful to you. If it is, please leave a comment and let me know. Also, if you think I missed a good application or have additional ideas, let me know that too! And as always, please forward this along to your friends using one of the social media or email links below.
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