OPEN Forum Articles

What We Can Learn From Designers

Fri, 06 Nov 2009 17:23:16 -0500

From Matthew E. May:

Warren Berger is the author of Glimmer: How Design Can Transform Your Life and Maybe Even the World, just published by Penguin Press. I found the book to be a breed apart from all of the many design thinking books hitting the shelves, and worth a further look.

Question: Why did you write Glimmer?
Answer: This book started with me trying to answer for myself the basic question, “What is design?” I’d been writing about it on and off for years, for magazines like Wired, and it was always interesting to me that the term was used in so many different ways. As I started collecting definitions, I stumbled upon an intriguing yet anonymous quote: “Design is the glimmer in God’s eye.” That word “glimmer” resonated with me. It’s a word associated with “potential” and “possibility.” To me, that’s what design is all about.
Question: What’s the core concept of the book?
Answer: I can sum it up with a single question: What can we learn from designers? My position is that we can learn a lot from designers about how to face up to problems, look at them with a fresh eye and an open mind, and begin to solve them in a step-by-step manner. A designer’s job is to bring about positive change. To my mind, progress happens by design.
Question: There are a lot of books attempting to answer essentially the same question you raise, so what is unique about Glimmer?
Answer: For one thing, I’m a journalist, not a designer or scholar. I’m more concerned with stories than case studies. I wanted to bring design to life, and you can really only do that by trying to recreate human experiences that have been shaped in some interesting way by design. I particularly love to describe the moment when a designer begins to see that flicker of a new possibility. I call those “glimmer moments.”
Question: As a journalist and outsider coming into the design world, what did you learn about how designers think?
Answer: I learned that designers themselves tend to be outsiders! They often come into a challenge without being overly steeped in the traditions and conventional wisdom of that particular category. Paula Scher told me, “I do my best work when I’m totally unqualified for a job,” meaning she isn’t weighed down by all the mindsets and assumptions of the “experts” so that she can take a na√Øve view of what’s possible. And she can ask what some people would consider “stupid questions”—questions so basic that maybe nobody has bothered to ask them in a long time.

So the first important thing designers do is to just reassess and question everything—but they do this with a great sense of optimism and openness. Then they observe to figure out what people really need, generate lots of ideas in a rather non-linear way, and then create prototypes to see what might actually work.
Question: How did you arrive at your ten principles?
Answer: As I studied a lot of top designers, I discovered that there were common principles they seem to share—even though these designers were working in very different disciplines, from product designers to graphic designers to people who design social services. They seemed to be guided and motivated by similar ideas and creative approaches. I began to distill these core principles and ended up with ten. Some of these principles came directly from Bruce Mau, the designer featured most prominently in Glimmer.

I understand that there are many, many design principles, and I’m not saying these are the best ones. It’s just that they fit what I was looking for—a set of principles that seemed to be widely shared by designers, and also the ones that non-designers could easily grasp. On top of that, I was also looking for guidelines that crossed over from business, to social issues, to personal life.
Question: In the last section of the book you put forth the notion that life can be viewed as a design project. What do you mean?
Answer: Yes, that is a slightly radical notion. Designers like Mau and Richard Saul Wurman treat their own lives as design projects. If you think about it, life is like any complex challenge: it can demand, at times, that you approach it the way a designer might—with a willingness to ask stupid questions, to explore unusual new possibilities and think differently.

Designers have a certain perspective and methodology they bring to challenges. So what I’m saying to readers is, once you’ve absorbed what this mindset and methodology is all about, and you’ve read all these stories of how it works in the real world, you might try applying design principles in various situations in your own life. This is not to say that it offers a foolproof plan or anything; it’s just another way to think about and approach life’s challenges.

Matthew E. May is the author of In Pursuit of Elegance: Why the Best Ideas Have Something Missing, and blogs here. You can follow him on Twitter here.

Market Using Your Grandfather's Business Model: Barter

Fri, 06 Nov 2009 17:15:53 -0500

From Shira Levine:

No overhead is quite the pleasant notion for small businesses struggling to stay alive and profitable in this economy. Often times advertising, marketing and PR budgets are the first to be slashed when times get tough. Yet those are the very legs that bring more business. Businesses that think outside of the box and even a bit Old Country, using the classic old school barter and applying it online and using social media are finding it easier to keep costs down and their communications departments alive. Bottom line: Hustling an online barter can remove the exchange of actual currency from the business transaction while still bringing in potential revenue by getting the word out.

So what's a CEO to do?

Partner with other companies.
Widen your viewership by gaining access to another company’s member base. The men's e-newsletter Thrillist takes advantage of this simple formula well. They throw multi-sponsored events and promote the heck out of said parties with a bevy of partnered sponsor names attached. There’s no money lost when using social media tools and strategic media relationships are prompted to get the word out.

“We talk impressions vs. dollar value, says Marketing Director, John Wiseman. “We offer other companies a co-branding value.” Wiseman estimates that the media value Thrillist gave to their co-sponsors of their annual Jet Mystery trip (this year to Montego Bay, Jamaica) was worth $115,000. Their readership is estimated at 1.5 million across 14 US cities.

By cheerleading each other’s companies and driving traffic and registration to one another’s websites, the companies essentially validate and endorse the other brand. “It’s a quid pro quo model,” says Wiseman. “We help each other get the word out and everyone wins with no money exchanged.

Network with like-minded and cool businesses.

Cold-Eeze CEO Ted Karkus went on Thrillist’s annual Jet Mystery trip. For some guests invited on the free trip, it was simply a chance to get away and have a good time. For Karkus, it was the perfect opportunity to reach new markets and a younger demographic. He realized a potential partnership in Jet Blue: “People get sick on planes, so giving out samples for people to try on the plane was a no-brainer. Younger people are especially savvy about preventative health measures.” He was also inspired by the viral success behind Obama Girl’s video popularity.

Seek out other small businesses.

Bryce Gruber who runs The Luxury Spot, a lifestyle site for bon vivants, coordinates with other small and independent businesses, like yoga teachers and Pilates clothing companies. She sends out viral links promoting events and sales in exchange for potential freebies for Luxury Spot members. Beef jerky aficionados at Perky Jerky doesn’t just focus on being strategically paired in gift bags with fellow caffeinated mega product Starbucks, but also with small-time start ups like Early Bird granola.

Conduct business with the recession in mind.
Well, how can you not if you’re a successful CEO, right? For Thrillist, trading up pay for play is what’s turned the business into a well-known, million-dollar operation. For Cold-Ease, a weekend in Jamaica proved invaluable exposure-wise. The cost to hand out free product samples and Cold-Eeze emblazoned towels to 150 people couldn’t have cost more than $3,000 of Cold-Eeze’s multi million dollar budget, estimates Karkus.

“Everyone has to sell their products during a recession and we have to find ways to expose our brands in an affordable way,” says Karkus. “Being part of a sponsorship was cost effective for us. We were able to put our product with an airline, in a hotel, and in the hands of people who would then tweet and blog about it for a cost that negligible to for a company that’s sold two billion lozenges.”

The 40-30-30 Rule: Why Risk is Worth It

Fri, 06 Nov 2009 17:07:08 -0500

From Michael Schwalbe:

Many of the strategies employed in competitive and recreational sports are often applicable in business and our personal lives. One lesson I learned from alpine ski racing was the "40-30-30 Rule." During training, early on, I tried to go fast and I also focused on not falling. On a ride up the ski lift, my coach told me I was missing the point. He explained that success in ski racing, or most sports for that matter, was only 40% physical training. The other 60% was mental. And of that, the first 30% was technical skill and experience. The second 30% was the willingness to take risks.

With ski racing, specifically, that meant taking the risk of leaning harder into turns, balancing at a steeper angle to the slope, and placing greater pressure on the outside ski edge – all of which increased the chance of falling. My coach explained, though, that if I wasn’t falling at least once a day in training, I wasn’t trying hard enough. Indeed, to improve at anything, we must at some point push ourselves outside our comfort zone. Body builders call it the “pain period.” Only by trying something new, struggling, learning, and then trying again do we improve our performance. It’s a simple matter of acclimating to unchartered territory.

And when we come out the other side, we often can't help but wonder why we were so timid in the first place. Questioning this fear is not unfounded. Harvard psychologist Daniel Gilbert has shown that we deal with failure better than we'd expect. In studies, “when people are asked to predict how they’ll feel if they lose a job… or fail a contest, they consistently overestimate how awful they’ll feel and how long they’ll feel awful.” In other words, “we overestimate the intensity and duration of our distress in the face of future adversity.”

While we tend to focus solely on building our skill sets or expanding our knowledge, the greatest advancement and learning most often comes from action, experience, and taking risk. And our regrets in life reflect this. According to Gilbert, studies show that “in the long run, people of every age and in every walk of life seem to regret not having done things much more than they regret things they did.”

Although playing it safe makes sense in some professions such as financial services and healthcare, for our own individual development, we need to focus on the last 30%. At the same time, as a manager, to foster such development, it’s important to create an environment where it's okay to fail – as long as your team members are pushing themselves. Encourage your employees to learn from their setbacks. And when they fail, be constructive in your reaction – lest they be too hesitant to take risks in the future.

Our inhibitions have evolved to protect us. In many cases, though, they limit us. The challenge is to rebalance our nature. Ultimately, it’s the ones who barrel through the discomfort, are resilient in the face of failure, and master the last 30% of taking risk who reach the highest levels of performance. Confucius put it well. "Our greatest glory is not in never failing, but in rising every time we fail."

*** This article is based on the research and writing of Michael Schwalbe, a seasoned investment analyst and workplace psychology wonk. His work contributes to the knowledgebase of the Behance team, who run the Behance Creative Network, the 99% productivity think tank, the Action Method project management application, and the Creative Jobs List.

Student Entrepreneurs Turn Dorm Rooms into Business Offices

Fri, 06 Nov 2009 16:52:20 -0500

From Jill Fehrenbacher:

Few stages in life are as ripe with learning and experimentation, curiosity and exploration, as one’s college years. College used to be viewed as the last rite of passage prior to entering the ‘real world’ -- the last stop before figuring out what you really wanted to do with your life before taking the plunge. But an increasing amount of enthusiastic college students are pairing their diploma earning efforts with entrepreneurial endeavors, resulting in lofty, passion fueled businesses with dorm room roots.

Boldness is a crucial element required for taking a leap of faith in true entrepreneurial spirit, and college students have a bit of an ‘ignorance is bliss’ advantage, having not yet endured the hard knocks of a dog eat dog business world. Choosing to place the thrill of the challenge and belief in their ideas slightly ahead of the dollar sign puts collegiate risk takers at the top of their game. Two such enterprisers are Katie Shea and Susie Levitt of Citisoles. They put their souls into developing a totable, functional, flat shoe alternative to pain inducing high heels, and a business was born in their dorm room on the NYU campus. During their senior year they found themselves “juggling classroom term papers and corporate term sheets...” and after enlist(ing) the opinions of friends, the help of NYU professors, and the time of many NYC professionals and mentors,” their product was launched nine months after its conception.

I actually launched my website Inhabitat.com - and along with it, my life as an entrepreneur - while I was an architecture student at Columbia University. While you are a student you have the time to spend on research and development, not to mention the invaluable 'finger on the pulse' perspective that comes with being around a lot of other young people all the time. I also believe that the low-budget life that most student lead prepares them to be resourceful and creative about getting by on a low budget - an invaluable tool in business.

According to Christopher Hanks, director of the entrepreneurship program at the University of Georgia, "There is no better time [to start a business]. During a depression or recession, innovation always increases." College students with business venture aspirations should get a jumpstart on their goals so they may pair their degree with having walked in an entrepreneur's shoes on graduation day.

Choose the Right Metrics...or Make the Wrong Decisions

Fri, 06 Nov 2009 16:43:15 -0500

From John Mariotti:

Have you been ill and had a temperature lately? You probably compared your temperature to “normal” which you were taught for years was 98.6 F. Wrong. The correct human body temperature is closer to 98.25F (and that is an average, because there are variations from person to person). The 98.6F reading was developed in 1868, when Carl Wunderlich published a seminal paper on body temperature in 25,000 adults. But his study was done using imprecise measuring devices and techniques of that era, yet it has been widely accepted over 100 years.

Modern measurements and improved research has confirmed Wunderlich’s error, yet many people, and even doctors, still cite the wrong “normal” temperature. And even now, measurements taken incorrectly can yield the wrong temperature. Considering how many medical decisions are made based on this metric, it is downright amazing that this error has not caused huge problems. Or maybe it has, and we just don’t know it.

When the metric or the measurement is wrong—trouble is not far behind.

Have you even used a map that was not to scale and been confused by the distorted perspective it gave you? Have you owned a car with a speedometer was wrong—and you got a ticket for speeding without realizing you were speeding?

Does anyone doubt that one of the major causes of the recent financial collapse was the erroneous ratings given to investments by the ratings agencies like Moody’s, S. & P., et. al? Investments that turned out to be worthless were rated AAA—the top rating. No wonder the crisis became so bad, so fast. When metrics are wrong, what do you trust?

If you read today’s news, it talks of unemployment at near 10%. Using one measure (the Bureau of Labor Statistics U-3), that is correct. But that measure excludes millions who have given up looking for a job or who are grossly “under-employed.” That number is closer to 17% (BLS U-6). The government statistics are also “adjusted” or “revised” a month after being issued, because the initial measure was wrong. What can you believe?

Many years ago, I suffered a great embarrassment when telling a customer proudly about how good our service level was. He told me bluntly, that based on the way they measured it, we were terrible. What a shock. What a revelation. I should have asked that customer how they measured our service before bragging about our service and being embarrassed. Now I know better.

It has been proven time and again that simply observing something causes it to change. So does measuring it. Heisenberg’s Uncertainly Principle in physics warns us that two related things cannot both be measured accurately, simultaneously. Clearly this whole measurement concept is not simple or easy, but measurements are still very, very important. They help us assess progress, know how we are doing, and even let us know what is, or isn’t “success.”

What can we learn from these examples?

When a measurement is done wrong, or measures the wrong thing, or somehow, because of error, provides the wrong result, it is seldom recognized until later (like the government’s revisions). In the meantime, we make decisions based on that measurement—wrong decisions usually. Investors react and often over-react, to government reports on employment, on GDP growth, on the balance of trade, and so forth. Markets soar or plummet from these reactions. And then, 30-45 days later, a revision comes along that says, in effect, “Whoops, we got it wrong.” The same happens everyday in business, in government, and in life.

Now we know—plan measurements and metrics carefully

“Forewarned is forearmed,” or so the old saying goes. The most important message of this brief article is to make sure the metrics you choose are measuring what you want to measure—and doing it accurately (to the best level possible.) Carpenters are well aware of the admonition, “Measure twice, and cut once.” There are ways to verify most metrics and the results they yield. The first is to apply “common sense.” Is that result reasonable? Another is to find historical comparisons. A third is by a “check point” or a reference standard.

For many years, factories and industries kept “standards” in the form of physical objects that had been carefully verified to be correct. The U. S. government even established a “Bureau of Standards.” They did this because gauges and measuring devices can be damaged or simply get out of adjustment. If you weigh yourself, and don’t believe the reading, you usually look for another scale—but make sure it’s an accurate one.

Time for the world is kept on very precise atomic clocks and is called “coordinated universal time” (UTC) and often referred to as Greenwich Mean Time or “Zulu” time. Since communications signals cross many time zones, an accurate, standardized measure of time is critical. There are many other places where critical measures of time, mass, and distance are important: in precious metals or expensive gems, in health related measurements involving vital organs, and on and on.

Somewhere, somehow, all metrics need to be checked and rechecked regularly. Whatever you are doing to meet or to use, some predetermined metric, stop every now and then and check to see that the metric is accurate—and the right one—that it is measuring what is really important. If you base decisions on the right measurements, used correctly, you will be surprised how much better your decision-making becomes.

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About the Author: John L. Mariotti is President and CEO of The Enterprise Group. He was President of Huffy Bicycles, Group President of Rubbermaid Office Products Group, and now serves as a Director on several corporate boards. He has written eight business books and a novel and has been a conference keynote speaker, a radio talk-show host, and a multi-national columnist for IndustryWeek, Management Centre Europe, the American Management Association, Fortune Small Business, Tiempo de Mercadeo, and a contributor to Business - The Ultimate Resource and the Encyclopedia of Health Care Management. His electronic newsletter THE ENTERPRISE is published weekly. His Web site is The Enterprise Group.

Denim Therapy: Re-Visiting a Culture of Repair Instead of Replace

Thu, 05 Nov 2009 10:50:15 -0500

From Jill Fehrenbacher:

In the American culture, the practice of preserving and repairing one’s belongings peaked during the Great Depression and WWI. These lessons lived on as children raised by survivors of these eras learned the value of both stretching a dollar, and darning holey socks to stretch their life. Decades later came a shift in the economic dynamic: ushering in an era of cheaper disposable goods, and with it, a new generation of Americans with a more cavalier attitude towards money that culminated in a throw away society.

Today, Americans are embracing and re-visiting the humbler outlook of yesteryear. The ‘out with the old, in with the new’ mentality has been replaced with ‘repair the old, can't afford the new.’ Denim Therapy is one of many thriving repair businesses that has transcended the ‘lack of business’ curse brought on by the recession. In today's economy, many small businesses like Denim Therapy are capitalizing on people's desire to be thrifty and economical, as well as get extended life out of older products, by offering services to repair old products and make them last longer. "I recently sent my favorite pair of jeans to Denim Therapy for revival, and I was thrilled with the results, as well as the much less expensive price tag that went along with repairing instead of replacing.

The notion of Denim Therapy is especially symbolic because blue jeans have been the literal fabric of American culture since their invention in 1873. A classic, staple apparel item coveted worldwide for pairing comfort with style, the folks at Denim Therapy re-stitch your holey, worn out jeans to make them look good as new -- a service that will leave customers all patched up, minus the telling patch.

Cobblers are also keeping busy riding the fix-it wave. One cobbler reports a 25%-30% increase in business explaining, “People are deciding to patch up their loafers and pumps rather than splashing out on a new pair. We are seeing people come in for jobs that they wouldn’t have bothered with before.”

Sending one’s jeans to therapy is an ironic act as Americans are trying to hold their lives together by the seams. Just as poignant, extending the 'sole' of shoes to keep walking the difficult path ahead. We may not have any control over fixing the economy, or the trillion dollar deficit, but at the very least we can salvage our trusty jeans and kicks and opt to repair not despair.

How to Avoid the 'Bah Humbug' Spirit From Consumers This Holiday Season

Thu, 05 Nov 2009 09:11:59 -0500

From Janet Thaeler, Small Business Trends:

A new study from Shop.org shows that not only are consumers looking to save money this Christmas, but retailers are starting marketing efforts early. Most are offering free shipping along with getting an early start by promoting their products on social sites (and so should you).

“Of those intending to run free shipping offers almost 80 percent will make them conditional, which usually means a customer must purchase a specific item or spend a set dollar amount to qualify.”

They are also getting their social networking sites ready for the holidays – especially their Facebook fan pages (60.3 percent).

Here’s what else retailers are doing to make this holiday brighter and improve profits.

Discounts and Coupons
Discounting isn't exactly a small business's favorite marketing method right now, but this year coupons are king. Online shoppers are hunting for deals. The second annual Benchmark Survey on Consumer Coupon Behavior said 30 percent of shoppers go for the retailer who offers coupons. More than 20 percent will leave one store for another if the second store offers a coupon.

A positive part of offering coupons is they're an easy to sell to bloggers and coupon sites. Announce it in a press release and blog about it yourself. Then send short pitches to bloggers, people who tweet about deals on Twitter and coupon sites. That will get the word out quickly.

Focus on a DIY Christmas
I consulted my favorite tool to identify trends online – Google Insights for Search. If this isn’t telling about people’s mood…Google searches for “homemade Christmas Gifts” – are up 80 percent. That means if you can offer guides, tips or directions for the DIY crowd, you’ll be a hit. Martha Stewart is especially well-positioned to help with this, and searches for her ideas are up too.

Here’s what else is hot this year:

Here’s another telling sign. Christmas hasn’t come yet and people are already searching for after Christmas sales (+70 percent).

The Benefits of Outsourcing Your Billing

Wed, 04 Nov 2009 15:39:21 -0500

From Michelle V. Rafter:

When it comes to his law practice, Nashville attorney Mark Daly admits he does what he likes and puts off what he doesn’t.

Daly, president of Immigration and Naturalization Attorneys, PC, likes helping clients with immigration and deportation cases and advising foreign nationals looking for visas to open businesses here.

He doesn’t like the billing that goes along with the 50 or 60 open cases he works on at any given time. Until last year, Daly avoided sending out invoices for services rendered, sometimes for months. Not surprisingly, that led to major cash flow problems for his five-year-old, three-person firm. “With the downturn in the economy even really good customers that didn’t need to be reminded were falling behind,” Daly says.

It was also an ego thing. “I thought, I’m an attorney, I don’t do collections. But that was holding me back,” he says.

Small business owners wear a lot of hats, but when trying to do everything themselves starts affecting your ability to make money, it can pay to hire someone to take some of that work off your hands.

Daly had taken steps in the right direction by billing through Quickbooks, the small business accounting software, customizing it to fit the specifics of his practice. But he still needed to review bills before sending them to clients and couldn’t justify hiring someone full-time to take on the work.

Eventually he realized if he wanted the business to grow he had to find an outside firm to manage billings and track cash flow.

That turned out to be easier said than done. Between the particular needs of his legal practice – clients often submit one check to cover his fees as well as immigration filing fees but the funds can’t be comingled in a single bank account – and local firms misrepresenting how much they knew about Quickbooks, Daly went through five outside bookkeepers before finding one that stuck. The keeper was Tennessee Business Services, a husband-and-wife team based in a Nashville suburb that specialized in Quickbooks and got rave reviews from customers.

Over times, Tennessee Business Services’ owners Ken and Merry Ann Lewellyn took over making Daly’s bank deposits, paying bills, managing accounts receivables and handling all his Quickbooks entries and billings. They developed a cash flow program to help him project revenue and expenses on a weekly basis.

Today, Daly meets with the Lewellyns every Wednesday morning for two hours to go over billings, cash flow and projected spending. “I tell all my clients no matter who you have doing it or how they do it, you have to stay involved so you know everything’s on the up and up,” Ken Lewellyn says.

Daly’s happy with the arrangement too. “They coach me on how to run my money system and how to time spending,” he says. “With billing going out more consistently I have better faith in the accounts receivables coming in that I can make purchases with more knowledge of whether or not I have the money to cover them, which I never had before.”

The service isn’t cheap. Quickbooks pros such as the Lewellyns who have gone through advanced training and certification can charge retainers of $1,000 to $1,200 a month.

But to Daly it’s worth every penny. By going with an outside service, he estimates annual revenue will jump from $250,000 to $320,000 or more this year despite the economy, mainly because he can devote more time to marketing. “They work with other businesses so they can take a step back and say, here’s what this other business is doing that’s applicable,” Daly says. “It’s totally worth it for me.”

Network-Attached Storage Is the New "Multifunction Printer" for SMBs

Wed, 04 Nov 2009 15:18:22 -0500

From Jon Stokes, Ars Technica: An OPEN Forum exclusive provided by Ars Technica.

When multifunction printers were introduced in the early 1990's, they promised way more than they delivered, especially if you were relying on one for a small business. A multifunction fax/copier/scanner/printer was not very good at any of those functions, so its main appeal was that it could do all of those things more cheaply than a collection of separate but better-performing devices. Over the years, MFPs have improved to the point where they're so popular that you have to actually hunt to find a printer that isn't multifunction in many office supply stores. It might surprise you to learn that network-attached storage (NAS) is taking that same route from single-function to multifunction.

NAS actually started out in the enterprise before the technology migrated down to SMBs and consumers, and for much of their lifespan they've focused on filling the task for which they were created: file hosting, serving, and backup over the network. Initial SMB NAS offerings used relatively small amounts of RAM and low-power processors (often ARM-based) ran very lightweight operating systems. There was just enough software and computing horsepower on the typical NAS to enable it to do its job, and nothing more. NAS vendors competed on the basis of RAID features, protocol support, and ease-of-use.

More recently, though, thanks to Moore's Law, NAS devices have been blessed with an embarrassment of computing power riches. Powerful processors and memory modules have gotten so cheap that they no longer add very much to the price of the NAS hardware, so that the typical SMB-oriented NAS of 2009 has more horsepower than the typical business desktop of five years ago. This is way more horsepower than is needed to serve files, so NAS boxes have steadily begun to accrue new features via regularly released software updates.

Many NAS offerings in the range of $200 to $600 (sans drives) have a feature set that looks something like the following:

A web-based interface that lets users with minimal networking skills fully administer the NAS
Support for CIFS, AFP, FTP, rsync, iSCSI and other common file protocols used on Windows, Mac, and Linux networks.
RAID
Streaming media services
Web-based photo galleries
Backup to USB drives and/or a cloud storage service
Time Machine support (for Mac backups)
Bittorrent client
Ability to add new software via a plug-in architecture
Print server support (for USB printers)

The above list, though extensive, is just the basics; individual NAS offerings will have many more features model-specific features, like IPTV camera support, volume-level encryption, Active Directory Services support, and so on.

Because the functions above, as varied as they are, are now essentially "basic" parts of NAS functionality, they all work very well on most NAS devices from top vendor brands. This makes the typical NAS a very good deal for almost any SMB or home office, regardless of the amount of data that it actually needs to host. Very few IT offerings can boast this much integrated functionality that actually works as advertised. So for SMBs who need some networked storage and who are looking for an alternative to the traditional (and expensive) file and print server, it's hard to go wrong with NAS, especially given all the added features.

Proper Credit Policies & Procedures Can Help Minimize Your Cash Flow Risk

Wed, 04 Nov 2009 14:10:54 -0500

From Denise O'Berry:

Along with slowing sales, many small businesses are encountering difficulty collecting on money that is owed to their business. A recent Intuit Payroll Survey of over 1000 small businesses indicated about 50% are having this problem. Is your business one of them?

It's hard to keep your cash flow on an even keel when people won't pay you for the work you've done. To have good cash flow in your business, it's important to have good credit and collection policies. What percent of your accounts receivable are currently overdue? If you have a lot of outstanding receivables, it's time to take a hard look at what action you can take to minimize your risk. Here are some steps you can take to make sure you get what you deserve.

Have a Credit Policy and Procedure Manual

Your credit procedure will define how you implement offering credit to your customers. Credit procedures should include who will get credit, how much credit you will extend and when it's necessary to get a credit report for the customer.

Your credit policy will define what steps you will take to collect money when the customer has not paid. This should detail when the customer will be contacted, how they will be contacted and what steps to take at what intervals to get the highest return from the customer.

There are a lot of issues you need to consider depending on what type of business you own. You can find a good checklist of questions at the CoveringCredit.com website.

A good credit policy and procedures won't do you any good if your contract negotiation and accounts receivable processes are a mess. Here are some things to consider.

If you must issue invoices to collect your fees, make sure you get them out the door as soon as the work is done.

When you negotiate a contract to complete work, set it up so you get paid by deliverable. That way you have cash coming in the door periodically rather than waiting until the project is done.

If you provide a service where you can place the deliverable in a transition state before final delivery to the client, do it. Give them an opportunity to give the project a final okay followed by payment before you release the product.

Provide an incentive for your customers to pay their bills. If you normally require payment within 30 days, offer a small percentage off (5% to 10%) if they make the payment in 15 days.

Give your customers options for paying you. Offer check, credit card, PayPal, money order, and cash (yes!). The more options you offer, the less excuses people have for paying.

Your business can't survive if you don't have enough money coming in to pay your bills. Having to spend time chasing down money can be a huge expense you just can't afford. Taking the time to put the proper credit policies and procedures in place to ensure you get what you deserve will save you a lot of time and hassle in the long run.

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About the Author: Denise O’Berry is a small business expert who provides tools, tips and advice to help small business owners be successful. O’Berry is the author of “Small Business Cash Flow: Strategies for Making Your Business a Financial Success.” Her blog can be found at Just for Small Business.

Digital Marketing Facts: What's Working?

Wed, 04 Nov 2009 14:04:16 -0500

From Ann Handley:

How US consumers spend their time online has shifted significantly in the past five years, according to Online Publishers Association (OPA) data presented in the Digital Marketing Factbook recently published by MarketingProfs.

Five years ago, US consumers spent 42% of their online time on communications-related activities such as reading and sending email, whereas now they spend only 27% of their time doing so, according to the OPA data cited in the Factbook.

What's filled the gap? Community-focused social networking sites such as Facebook, which now account for 13% of users' time, up from virtually nothing in 2004:

Key findings:

· In addition to devoting more of their online time to community sites, consumers today are spending more time on content sites and search, and less time on commerce sites, than they were in 2004.

· As for what specific activities US adults perform online today:
—90% send or read emails
—88% use search engines
—76% check the weather
—75% buy a product
—72% get news
—66% to make or buy a travel reservation
—60% to look for news or information about politics
(According to April 2009 data from the Pew Internet & American Life project included in the Factbook.)

Senior marketers were asked which components of their current digital marketing programs—search, email, display advertising, social networking, and mobile advertising—delivered the best results. Only 11% cited social networking—an especially striking figure when you consider that consumers spend 13% of their online time on social networks, and this percentage is likely to grow.

Here's what senior marketers said of the results they get from components of their campaigns:

Key findings:

Search marketing delivers the best results (33%); search and email still constitute the core of a solid online media plan.
Nearly everyone uses email, and this medium is repeatedly ranked as one of the most cost-effective (and effective) forms of marketing. Elsewhere in the Factbook, almost 50% of 623 email marketers report that sending emails at midday (10 a.m. to 2 p.m.) is the best time of day to do so. The start of the business day (6 a.m. to 10 a.m.) is considered second best at 31.5
Mobile marketing is barely on the radar; it'll be interesting to see what happens in the next few years with mobile.

About the data: The MarketingProfs Digital Marketing Factbook, designed to be a comprehensive source of data and research for online marketers, includes chapters on email, search, and social media—with 144 pages of findings, including 110 charts and graphs from 60+ sources.

Photo credit: extranoise

BIO: Ann Handley is an 11-year veteran of creating and managing digital content to build relationships for organizations and individuals. Currently, Ann is the Chief Content Officer of MarketingProfs, which provides strategic and tactical marketing know-how for marketing and business professionals through a full range of online media and live events. She also blogs at her acclaimed personal web log.

Five Keys to Sales When You Hate to Sell?

Wed, 04 Nov 2009 13:27:24 -0500

From Susan L. Reid:

Sales.

I can already hear you groaning.

But before you dismiss this article as something you're sure you don't want to read, consider this: Sales is the most important job in every business. And there has yet to be any successful business that has survived with zero sales.

"Yeah, but, I don't like to sell," you may say. Fair enough. I don't like selling either, but I do like making sales.

What if I were to tell you that I have a way to help turn your assumption, "I can’t do sales" into the excited affirmation, "I can sell!"

Do I have your attention now?

You are Not a Sales Professional

The first thing you need to understand is that you are not and probably never will be a sales professional. What you are is, first and foremost, a business professional.

True sales professionals are trained to sell. You are not.

They know the difference between a "take-away" and a "tie-down." They are trained to overcome objections, deal with a 70% rejection rate, and close a deal as if it’s an art form. Are you?

Of course you aren’t! As a professional business owner, that's not your job. Nor should it ever be.

Slimy Sales People are Not Sales Professionals

Here’s the second thing you need to realize. Sales people who pretend to be your best friend, chumming up to you by giving you free tickets to the game and schmoozing you with false flattery to get you to buy something are not true sales professionals.

They are desperate people willing to say and do anything because they have neither the skill nor the training to make an "honest" sale.

These are the sales people who give sales a bad reputation. And you may be relieved to hear that their approach is about as far away as you can get from the kind of sales you will do as a professional business owner.

Sales 101 for The Professional Business Owner

The professional business owner's approach to sales has nothing to do with selling and everything to do with connecting and creating a buying relationship. It's about getting your product or service into the hands of those who appreciate its value and see how it will make their work a whole lot easier and their lives a whole lot sweeter!

Five Keys to Making a Sale

1. Treat your clients with respect, dignity, interest, and care.

This is the best approach to keep from looking like a slick sales person out to make a buck. Treat your customer, as you would like to be treated. When you do so, you attract the customers who are aligned with developing a buying relationship with you.

2. Forget about rejection.

It's not about you. It's about whether your product or service is aligned with what your customer wants. Remember, for the professional business owner, selling and sales is first and foremost a connection job. Forget about rejection and focus on connection.

3. Shine your light.

Your job is to make sure your product or service stands out above the rest. You can't just hope that your clients will see the value of your product or service. You have to make it glaringly obvious.

4. You have to believe.

You have to believe strongly in yourself. You have to believe solidly in your product or service. And, most important, you have to believe in your confidence to deliver the sale. Because, if you don't, the money simply won't flow to you.

5. Take the stress out of sales.

You are a professional business owner showing, demonstrating, and presenting your product or service. Money will flow to you not because you’re good at selling, but because you are aligned with the right customers. Focus on connecting with them and creating buying relationships.

As a business professional, you know sales are important to the success of your business. However, you can't have an aversion to sales and expect to sell anything. Therefore, you must learn to approach sales in a new way. You must be perceived, first, as a professional business owner and, second, as someone who has a product or service to sell.

Approaching sales from this perspective means that you will be looking for alignments, creating connections, and forming buying relationships with your customers. After all, the best sales person is the one who takes immense pleasure in the customer’s satisfaction. Who better to do that than you?

* * * * *

About: Dr. Susan L. Reid is a business coach and consultant for entrepreneurial women starting up businesses. She is the author of “Discovering Your Inner Samurai: The Entrepreneurial Woman’s Journey to Business Success.” Her website is Alkamae.com.

6 Desktop Apps for Better Organization & Focus

Wed, 04 Nov 2009 13:14:27 -0500

From Behance Team:

Given our focus on organization and productivity here at Behance, we recently decided to pool our knowledge to create a shortlist of the latest and greatest desktop (and iPhone) apps that have revolutionized our workflow. Here’s what we came up with:

Evernote. A one-stop system for visual filing.

With the rise of YouTube, digital cameras, etc, we are becoming much more “visual” in the way we process information. Rather than keeping all of your important bits and bobs tucked away in a filing cabinet, Evernote allows you to document anything and everything visually, and access it from anywhere. You can quickly centralize everything from post-its, business cards, and receipts to excel spreadsheets, PDFs, snippets of web research, and voice memos – ridding yourself of paper clutter and creating a single access point. There’s also an integrated iPhone app for capturing data and images on-the-go.

Price: Free!

Pathfinder. A turbo-charged version of the regular Mac finder.

Sometimes we just accept the way things are: When I need to transfer a file from one buried folder to another on my Mac, I have to open up two finder windows. Or do I? CocoaTech’s Pathfinder app is like a regular Mac finder on efficiency steroids. The best feature is the “dropstack” – a sort of holding pen for images and files, from which you can compress/zip, burn to disc, or drag them elsewhere. You can also open up “tabs” in the finder, just like in Firefox or Safari, to quickly navigate between different folders without ever opening multiple windows. Depending on how much you like to nerd out about organization, the features Pathfinder offers are fairly limitless.

Price: Free 30-day trial, then $39.95

Tungle. Schedule meetings without the excess back-and-forth.

Scheduling meetings for large groups can be like playing a game of Battleship – you send Google Calendar invitations like shots in the dark until you finally get a hit. Tungle makes the process transparent and painless, synching with your preferred calendar app and allowing you to propose numerous times simultaneously. Then, invitees tick off the times that work for them, and voilà, you’ve scheduled a meeting without seven emails.

Price: Free!

FocusBooster. Extend your attention span, with a 25/5 regime.

One of our contributors, Tony Bacigalupo, recently wrote about the effectiveness of the Pomodoro Technique in helping him be more focused and productive. The technique involves working on just one thing for 25-minutes—no checking email, no Twitter, etc—and then breaking for 5 minutes. FocusBooster takes the classic Pomodoro tracking mechanism (a timer and paper) and brings it online for those of us that work at a computer all day. The app keeps track of each timed work session, and sounds a brief alarm when it’s time to take a break.

Price: Free!

Synchronize Pro! Seamless desktop/laptop mirroring for frequent travelers.

It’s easy enough to copy files by hand from your desktop to your laptop, but inevitably you find yourself traveling and (oops) you don’t have that latest version of an important document you need at your fingertips. Synchronize removes the element of human error, allowing you to specify key desktop folders that will always be mirrored on you laptop. The app also allows you to archive old files, so you know your information's backed up and safe.

Price: $99.95

Instapaper. The perfect on-the-go reading list.

How often has it happened that you’ve found an article that you’d really like to read on the Internet, but you just don’t have time to do it right now? So you leave a tab open, or email yourself the link, but 9 times out of 10, you never get back to it. Instapaper solves this problem by allowing you to integrate 1-click article saving functionality into your web browser. Then, when you have some downtime, your catalogued reading list is waiting for you. And with the additional iPhone app, you’re covered in transit, waiting at the doctor’s office, or on line at the post office.

Price: Free!

***This post by J.K. Glei is based on research by the Behance team, much of which will be captured in CEO Scott Belsky’s forthcoming book “Making Ideas Happen”. Behance runs the Behance Creative Network, the 99% productivity think thank, the Action Method project management application, and the Creative Jobs List.

How Fashion Sense Can Outweigh a College Degree

Wed, 04 Nov 2009 13:00:59 -0500

From Jill Fehrenbacher:

Most wouldn't value a sharp fashion sense over a hard earned college degree, but in the cases of Anna Wintour and Tommy Hilfiger, not having a diploma under their perfectly accessorized belts was no hindrance to successes in life. It is common practice for employers to use diplomas a baseline yardstick to gage ability to succeed on the job, but these two fashion icons prove that one doesn't always need higher education in order to prosper, if you've got the drive and talent to succeed.

What Wintour and Hilfiger lacked in formal education, they made up for in passion and boldness, innovation and originality. Success doesn’t always come in tandem with a paper certificate, as many unemployed people with degrees may unfortunately attest to in today's economic climate.

Anna Wintour is infamous for her twenty plus year reign as the queen bee and Editor-in-Chief of Vogue. She dropped out of school at age 16, but she went on to build a fashionable empire on the pages of a magazine, where her word can make or break careers. On the job training and calculated ladder climbing delivered her to the top of her game.

Tommy Hilfiger also shot to fashion fame without any formal training as founder of his eponymous clothing line. Armed with the notion that he could design apparel better than current market leaders, he launched a collection that catapulted him to household name status, where his brand encompasses everything from clothing to bedding to perfume.

There has long existed the division between those who are street smart and those who are book smart -- perhaps we need to add a third category for fashion smarts to the fold.

Credit Unions - Another Option for Small-Business Borrowers

Wed, 04 Nov 2009 12:36:31 -0500

From Knowledge@Wharton:

Credit unions may not be the first source you'd think of for small-business loans, but checking out these no-frills bank alternatives can often be worthwhile. Credit unions have increasingly reached out to small-business borrowers in recent years, and the U.S. Small Business Adminstration (SBA) is looking to use them to build a bigger base of SBA lenders.

In the current tight credit environment, few small-business owners in need of funding can afford to leave this stone unturned. "Right now, there is no normal," says Therese Flaherty, director of the Wharton Small Business Development Center in Philadelphia. "Shopping around is even more important than it was last year."

Some small-business owners have found credit unions to be an attractive alternative to traditional lenders. Why?

Many credit unions are still actively lending to small companies. Many credit unions sidestepped the credit crunch, having largely avoided subprime mortgages and other risky lending practices that led so many of the bigger banks into trouble. Loan growth has actually risen at credit unions in 2009 while declining at commercial banks. Some credit unions are stepping in to fill the lending gap, aggressively courting small-business customers to pick up market share.

You may be able to get a better deal on a business loan. Credit unions often charge lower fees and interest rates than banks. While they lack the economies of scale of the megabanks, these not-for-profit, member-owned cooperatives are exempt from federal taxes and typically are more conservatively managed, so they often have lower costs to cover. Because they are not chasing profits, they don't have to charge as much as banks and don't have to pay taxes on the income they bring in.

You may have a better chance of getting a loan approved. For borrowers with good credit, underwriting standards at most credit unions hasn't changed. They can be more understanding than big banks if your credit is less than stellar and they may take the underlying circumstances into consideration. Even so, nowadays some credit unions are demanding more proof of income than they once did, such as tax forms and pay stubs.

Many credit unions are relative newcomers to small-business lending and didn't even begin participating in SBA lending programs until 2003. Look for credit unions to become even more aggressive in their marketing to small-business borrowers. They have been lobbying to raise their cap on business loans, which they view as unfair and arbitrary. They want it raised from its current level of 12.25% of assets to 20% or higher. (SBA loans don't count under the cap.)

So what's the catch? OK, there is one.

You can't just walk into a credit union and apply for a loan. You have to join as a member. This means being part of the group around which the credit union is formed. This might be a specific geographic area, trade or profession. If a family member belongs to one, you may be able to join, too. And it's usually “once a member, always a member,” so keep your account if you change jobs or move.

There can be misconceptions about credit unions, so you should keep a few things in mind when looking into one. Don't be put off by any of the following:

The name. Some started out affiliated with a particular group, company or profession and have expanded beyond that niche to encompass a larger community or region.

The size. Smaller outfits often get a hand from larger industry players in the front- and back-office.

A local focus. Many credit unions share branches and ATM networks.

An outdated Web site. No frills often means lower costs.

The Design of Business, an Interview of Roger Martin

Wed, 04 Nov 2009 08:55:51 -0500

From Matthew E. May:

Roger Martin is the dean of the Rotman School of Management at the University of Toronto. In 2007 BusinessWeek named him one of the ten most influential business professors in the world. I have used several of his articles in classes I teach on creativity and innovation. One of my favorites is his 2004 article entitled “The Design of Business.” His new book, carrying the same name, is based on it.

Roger was kind enough to send an advance copy of his book to me, and here are the questions I had for him.

Question: What is your definition of design-thinking?

Answer: Let me start with what it isn’t. Most companies today rely on analytical thinking, which centers on the exploitation of current knowledge, simply refining current knowledge, and producing small improvements to the status quo. In analytical thinking, you look to the past for proof of concept before moving forward. Maybe it’s a rule, or a set of historical observations based on what’s already happened.

To innovate, companies need to employ more of the characteristics of great design: a deep understanding of the customer or user, creative resolution of opposing goals and tensions, rapid and collaborative prototyping, and continuous modification of ideas and solutions. That’s design-thinking! It’s about seeing possibility, about exploring problems where solutions cannot be found in past experience or proven by data.
Question: Can you give us a thumbnail sketch of what a design-thinking organization looks like?

Answer: A design-thinking company is one that employs a fluid, project-based activity system to tackle big initiatives. And that project-based work style emphasizes collaboration. There’s flexibility, because although the projects are typically assigned to teams rather than individuals, each team may have its own unique internal and often temporary structure. The solution to whatever challenge is being addressed comes from the team, not a “captain” or “leader.” Finally, autonomy is key, because the design-thinking organization picks the style of work that best fits the task.
Question: What’s the key to becoming a design thinker?

Answer: I think everyone can hone their design-thinking skills and work to produce more innovative outcomes. You do that by leveraging and developing what I call your personal knowledge system. There are three elements: stance, tools, and experiences. They all influence one another.

By stance, I mean answering the question, “Who am I in the world and what am I trying to accomplish?” Your stance guides the acquisition of tools.

Tools help you answer the question: “With what tools and aids and models do I organize my thinking and understand the world?” Acquiring the right tools guides the accumulation of experiences.

Experiences help us answer the question, “What experiences can I build my repertoire of sensitivities and skills?” Experiences in turn inform the acquisition of more tools. With these new tools, we add depth and clarity to our stance.
Question: Can you give me an example?

Answer: Sure. A. G. Lafley developed advanced skills and sensitivities for more than twenty-five years at Proctor & Gamble before he took over the top job. Beginning as a brand assistant, he acquired a set of tools over his career: supply-chain management in the Navy, general management theory from Harvard Business School, and brand-building techniques from the masters at Proctor & Gamble. This multitude of experiences developed Lafley’s skills and sensitivities as he moved up the corporate ladder.
Question: What’s the one thing you want your readers to take away from The Design of Business?

Answer: It’s that today’s businesspeople don’t need to understand designers better; they need to become designers.

Matthew E. May is the author of In Pursuit of Elegance: Why the Best Ideas Have Something Missing, and blogs here. You can follow him on Twitter here.

Cardmember Profile: Consultants 2 Go

Tue, 03 Nov 2009 19:43:11 -0500

From OPEN Forum Connectodex: Sandra Webster is the principal of Consultants 2 Go, a strategic consulting and marketing firm in Newark, New Jersey. With extensive experience in strategic planning, direct mail, email and database marketing and a proven ability to develop and deliver winning direct marketing programs to extremely targeted populations, Sandra Webster leverages her skills to lead, develop and motivate cross-functional teams and individuals to work in a cohesive manner.

Since 2002, Consultants 2 Go (C2G) has provided marketing and analytic consulting services to Fortune 1000 companies mainly in the Telecom, Financial Services and Insurance industries and recently expanded into Pharma and Consumer Packaged Goods. C2G’s PR and marketing campaign efforts have earned them the following accolades: 2009 National Business Incubator Client of the Year, 2009 Diversitybiz.com Top 100 companies in NJ, July 2007 cover of Money Magazine, Oct 2007 NJ Biz Entrepreneur Award, and the 2006 Make Mine a $Million Business Program awardee.

Here is how Sandra describes a few of C2G’s extensive strategic capabilities: “Clients call us when a marketing manager is about to go on maternity or family leave; they lost a key person on a critical project and don't have anyone on staff that can fill the gap; when they launch a new product in a new area and need a seasoned professional to provide the experience and know-how to get the job done; or when they need an expert analyst to evaluate program results and campaign performance.”   

Furthermore, Webster states, “We pride ourselves in providing affordable consultants that fit within our clients’ budgets. All our consultants have a minimum of 10 years experience in marketing. Our motto is ‘on budget, on time, every time.’ We are a certified minority and women owned/operated firm located in New Jersey and New York.”

Launch profile for Consultants 2 Go in the Connectodex.

4 Easy Low Budget Ideas to Market Your Small Business

Tue, 03 Nov 2009 17:19:02 -0500

From Ivana Taylor:

Marketing your small business doesn’t have to be expensive or a long drawn out process. In fact, it’s never been easier to build your image or your customer base on little or no money. The most you’ll have to invest on this list is about 30 minutes of your time and some bold and creative thinking.

Here’s how to get started:

Focus on customers critical to your success. We’re often so busy serving the customers we have and selling to new ones, that we often don’t take the time to put our customer list into perspective. As you go down the list write down those customers that could be critical to the growth of your business in the next year. If you haven’t seen them in more than 90 days, if they haven’t heard about any new changes, products or services, if you don’t know what the most important projects for them are – put them on the list and start making appointments to see them.

Creating the list will excite you about the new opportunities, calling these customers to set an appointment will be an additional personal touch in your sales and marketing program. Having the meeting is touch two, following up after the visit with a thank you is touch three, actually doing something with what they’ve said is touch four and more. Simply focusing on those customers that can make all the difference is an easy, natural and inexpensive way to grow your business.

Set a marketing theme and follow-it with every customer interaction. A really fun way to build your brand is to create a fun and versatile theme and then apply it to all your customer communication. For example, if your product is easy to use, then focus on that attribute. You might decide to create an article entitled “101 Reasons [Your Product] is Easy to Use” you could have serious reasons such as ”24/7 live online support”, or funny reasons like “You can use one hand to use the product and the other to eat an ice cream cone.” Either way, take a simple competitive advantage and keep repeating it in as many communications as you can. You will save money and your customers will remember you and what sets you apart.

Celebrate unusual holidays. There are a variety of fun, creative holidays that you can celebrate and adapt to feature a product or a service. No one takes the time to do this – and your customer will get a kick out of it. Send a Thanksgiving card or gift with a special offer if they display it at their office. Some creative days of the year include Elvis’ Birthday on Jan 8, National Hat Day on January 15, April 22 on Earth Day, and of course there are the standard Independence Day, and St. Patrick’s Day. The point is to actually MARK these holidays and use them to promote your small business.

Build a customer community. After you’ve developed your list of targeted customers, keep the communication lines open by giving them a space to connect with you. If you haven’t already, start a blog. Wordpress.com is free and you can set up a blog in as little as 5 minutes. Give the blog address to your customers and spend the first 30 minutes of your day writing something to them. In the beginning, you’ll have to remind them to visit and see what’s there. But if your content is good enough, you’ll soon have a loyal following AND get inexpensive and valuable feedback to your ideas. Think of a blog as a publication. It’s like creating your free advertising that goes direct to your customer’s mail box! Move your online community into the real world and schedule customer events. If your customers are scattered across the country, make a point to visit each region and schedule a customer event focused on helping them do their jobs better.

Marketing doesn’t have to be expensive. In fact, the best and most effective marketing programs come straight from the heart. A couple words of advice; have fun! People make decisions, not buildings, industries or titles. So try these low-cost, high impact marketing strategies for your small business and you will find yourself having fun getting and keeping customers.

* * * * *

About the Author: Ivana Taylor is CEO of Third Force, a strategic firm that helps small businesses get and keep their ideal customer. She’s the co-author of the book “Excel for Marketing Managers” and proprietor of DIYMarketers, a site for in-house marketers. Her blog is Strategy Stew.

13 Ways to Network Beyond Facebook and LinkedIn

Tue, 03 Nov 2009 15:58:22 -0500

From John Jantsch:

Building branded profiles, engaging prospects and connecting with potential employees and strategic partners are all powerful ways to tap into Facebook and LinkedIn.

But, for the typical small business, there may actually be some equally important social networks you may not be so familiar with. The big networks get all the press, but small networks, say for instance, like the connectodex found here at OpenForum may prove tremendously valuable for small business folks due to the small size and targeted focus of the membership.

The list below represents some of the more active networks I’ve encountered when it come to small business social networking.

Visit a handful of these sites and choose several that feel right for your business. Once you build a profile, taking full advantage of the opportunity to link to your primary business offer full descriptions of your products and services, spend enough time to go a bit deeper.

Write or republish some articles or blog content, search and identify a dozen or so people to connect with, and give some advice, point to someone’s great content or answer questions from other members.

Don’t try to jump into every new network you can find, but do jump into a few outside of Facebook and LinkedIn and make yourself a bit of a larger fish in these smaller ponds.

In addition to OpenForum check these networks out:

Biznik – this network for small business folks is blending online and offline by allowing members to collect by city and host and promote local events

StartUpNation - a wealth of information focused on startups and very active community

Wall St Journal – community build around subscribers and geared, as one might suspect to professionals and financial folks

Small Business Brief – heavy dose of search engine related content but very active small business focus

Inc magazine – another popular business related magazine with community of entrepreneurs

StartUp Biz – very fast growing network with lots of tools to promote yourself

PartnerUp – small business focus and big on helping people find answers and connections for the things they need

BizSugar - allows you to submit, share and vote for the best business information links on the Internet.. Great place to promote and discover your small business content

CoFoundr – Programmers and designers use the site to find co-founders, build teams, and get advice.

Entrepreneur magazine – Entrepreneur magazine’s community site has a lot of activity and content

Business Week Exchange – Site from Business Week magazine is a great place to promote and find content on the web, tends to be a bit larger business focused

Naymz – one of the better sites for those focused on building personal brands – highly indexed in the search engines

Image credit: andresmh

John Jantsch is a marketing and digital technology coach, award winning social media publisher and author of Duct Tape Marketing.

'Eco-Angst' Joins 'Buyer's Remorse' in Consumer Regrets

Tue, 03 Nov 2009 15:08:14 -0500

From Jill Fehrenbacher:

We’re all familiar with the term 'buyer’s remorse' -- a regretful response to making a purchase that is either too expensive or was a bad judgment call. Consumers may now add 'eco-angst' to the list of psychological maladies that may strike on a shopping venture. Unlike buyer's remorse, an individual issue which takes hold on a personal or family level, the anxiety produced by eco-angst, defined as "the moment a new bit of unpleasant ecological information about some product or other plunges us into a moment (or more) of despair at the planet’s condition and the fragility of our place on it" may have a global affect on consumerism and manufacturing.

Conscientious consumers are now faced with plenty of guesswork when it comes to making purchases. Those wishing to lead an eco-friendly lifestyle must sidestep greenwashing and research the ingredients of products and the ecological impact of a company's manufacturing process as well as their labor practices. Buyer's remorse may soon be alleviated by eco-angst as people start investing knowledge in what they want to acquire long before handing over their money.

Luckily, websites such as GoodGuide.com and the Environmental Working Group's Skindeep.com (and of course, my website inhabitat) arm consumers with more information than they may ever need about a product's toxicity or safety level as well as a company's social and environmental performance and impact on natural resources. Good Guide even has an iPhone App so there's no excuse for a greenie to have buyer's remorse brought on by eco-angst.

Tapping Your Way Into a Loan

Tue, 03 Nov 2009 14:55:21 -0500

From Julia Rogers, Wise Bread:

Matthew and Marnie Brannon, co-owners of Midwest Fiat in Columbus, Ohio borrowed $110,000 earlier this year to help them expand the vintage Italian car parts and service shop they have run for five years. The process took six months of very diligent work, but the Brannons learned some valuable lessons about what it takes for small business owners to beat the odds and get funding during a downturn. Two of their most important tactics for securing a coveted business expansion loan included making their plight known by publicizing their loan search through the press and other outlets as they were struggling through the process. They also worked on building relationships with potential funders by using contacts within their business network with ties to the banking industry. Combining different tactics helped them eventually attract investors and fulfill their dream of expansion.

Maybe you are a small business owner who was rejected for a loan in the past year; or perhaps you want to approach a lender for the first time; or you may simply have aspirations of launching a new business. Regardless of your loan goals, the following tips can help you achieve the Brannons’ success by navigating the current economic climate and getting the money you need to thrive.

Never stop networking. Join and become active in a couple different types of organizations where you can meet other small business owners and managers who can potentially introduce you to their trusted business advisors, as well as financial organizations. Targeted business organizations or trade groups can help you really fine-tune your focus because they will introduce you to those with financial interest in your industry that might be able to help you with funding. Regardless of the actual organizations you join, make sure they are good fits for your type of business and that you don’t join more than one of each type so you’re not spreading your time too thinly.

Make your funding and expansion plights known. One thing the Brannons learned is that publicizing your search for funding can potentially bring interested parties and potential investors out of the woodwork. According to Laurel Delaney of Small Business Trends, a recession can be a great opportunity for small business owners to attract investors and clients alike because it presents an opportunity for these owners to show they have the “guts to press on, even in the face of insurmountable obstacles” (Small Business Trends). Keeping a public profile can help anyone seeking funding look very attractive to lenders and approach them from a position of great strength.

In the end, building a profitable business is about building key relationships. Ultimately, the products or services you provide to clients or how great you are at your job are not going to make or break your business or increase your chances of being successful at getting a loan, starting or expanding your company. As with marketing your business to potential clients, you need to focus on building relationships with key contacts in industries related to finance that can actually bring you closer to those that can and will give you a loan.

Good times or bad, small businesses must fund their growth if they want to stay healthy and competitive. Continue to build important relationships with other small business owners, stay diligent about networking, and approach those that can help you secure funding from a position of strength.

Becoming a Collections Expert: A Resource Guide

Tue, 03 Nov 2009 09:47:55 -0500

From Polly Schneider Traylor:

Fortunately, billing and collections is a topic close to the heart of many small businesses. There are many resources on the Web and in the bookstore to pursue for advice, experts, legal information, and service providers. See our list for starters.

Advice articles, books, and websites

10 steps to effective collections

Top 10 Account Collection Mistakes

Secrets to Getting Paid

Sample Collection Letter

What Is Accounts Receivable Factoring?

Protect Your Business with Credit Insurance

Finding Money—The Small Business Guide to Financing (book)

Why Most Small Businesses Don't Work and What to Do about It (book)

Profits Aren't Everything, They're the Only Thing (book)

Legal Guide for Starting and Running a Small Business (book)

Collections agencies and attorneys

How to choose a collections agency

Commercial Collections Agency Association

The Association of Credit and Collections Professionals

Commercial Law League of America

Find Billings and Collections Attorneys near You

Regulations, laws, and government resources

The most important regulation concerning small-business collections is the Fair Debt Collection Practices Act (FDCPA) which requires debt collectors to treat the consumer fairly by prohibiting certain methods of debt collection. The first two links below relate to this Act.

Small Business Notes overview of FDCPA

Federal Trade Commission resource page for FDCPA

Small Business Debt Collection Law Cheat Sheet

Collections Law overview (AMEX Open)

Small Business Association financial assistance resources

Doing Business Law Library (free online collection of business laws and regulations sponsored by the World Bank Group)

Bureau of Labor Statistics (useful for searching US industry-related economic indicators)

Outsourcing services

Accounting outsourcing resources on BNET

Accounting Outsourcing -- Weigh Pros and Cons before Hiring the Services

Top 10 Accounting Outsourcing Tips

Trends: New Luxury

Tue, 03 Nov 2009 00:00:00 -0500

From OPEN Book: Trends, American Express OPEN: Consumers are eschewing traditional status symbols in favor of authentic products and services – a story to tell means a story to sell.

Over the past century, rising disposable incomes have brought goods once considered “luxury” within reach of an increasing number of people. Now, a new breed of consumer is challenging the classic definition of luxury by seeking out a fresh form based on authenticity and exclusivity. A growing band of committed craftspeople – those who make beautiful, handcrafted products and those who offer tailored services requiring skill and time to achieve – are spearheading the new luxury movement.

Quality Not Quantity

New luxury can be characterized by one or more of the following: a single point of sale; the use of specially sourced materials to make the product; detailed consultation to ensure the customer’s exact specifications are matched; a curated shopping experience; a limited product range or supply of the product; and a trained, skilled workforce. Small businesses are ideally positioned to apply their working practices to providing quality rather than quantity, and will find that promoting great craftsmanship can pay dividends.

Business owners who already supply handcrafted goods should consider capitalizing on their existing operations by promoting their products’ provenance. The new luxury consumer appreciates the time and effort that goes into the manufacture of such products, so consideration should be shown to every aspect of production. The carefully constructed website displays its product range in between testimonials from satisfied customers. Carving hardwood toys from a wind-powered workshop, the one-man band behind the venture plants trees to compensate for the raw materials he uses (which are native to the area), and even writes to his child customers to explain the origin of their new toy. A green business before it became fashionable, the enterprise is naturally limited by the number of hours devoted to the craft.

The story behind the product is an attractive feature for the new luxury consumer. We Love Jam in San Francisco, California, produces limited quantities of its Blenheim apricot preserve each year. The owners discovered that the Blenheim apricot is an endangered variety and the orchard they use is one of the last remaining in the region. Each batch of jam is meticulously prepared using the finest ingredients and is only available for purchase via their website. Customers join a waiting list to alert them when the new batch becomes available every August. We Love Jam has redefined luxury by successfully navigating the fine line between elitism and quality, turning something as humble as jam into a luxury product for food lovers around the country by limiting the supply and keeping standards high.

From Supplier to Buyer

Business opportunities are also available to those who provide a curated or immersive retail environment for customers. In Portland, Oregon, Craig Olson and Sean Igo own Canoe, which stocks an eclectic mix of office and homewares that are united by a commitment to provenance, craftsmanship and quality design. Each product is accompanied by a mini-history, which makes the link from supplier to buyer and reinforces the Canoe brand values of timeless design and functionality. Olson comments: “In many ways it is a very Scandinavian or Japanese approach – the idea that products are to be used and enjoyed every day, not placed on a shelf only to fulfill some status role.” Canoe represents the growing breed of retailer mindful that, in an increasingly homogeneous world of Main Streets, discerning luxury consumers are becoming more demanding in their search for authenticity and are rejecting the mundane – whatever the cost.

The fragile economy has given rise to a segment of consumers who are reassessing mass consumption and traditional status symbols in favor of authenticity. Whatever the product, the central tenet is that new luxury goods should have a story to tell and offer an experience that goes beyond the price tag. Small businesses that take pride in combining quality materials, highly skilled craftsmen and a made-to-measure service are naturally in the best position to leverage this trend. Many of them are already proving that adopting new luxury practices is the perfect way to retain existing clientele – and to find fresh customers too.

For more articles and profiles on the trends shaping today's business landscape, download OPEN Book: A Practical Guide to Essential Trends.

A Shaky CIT-uation

Mon, 02 Nov 2009 17:31:42 -0500

From Steve Viuker :

CIT Group Inc. filed for Chapter 11 bankruptcy protection Sunday in New York after months of struggling to avoid collapse. The company provides badly needed credit to thousands of small and mid-sized businesses, and is a critical part of the flow of capital in the retail sector. CIT said in a statement that its bondholders overwhelmingly opted for a prepackaged reorganization plan which will reduce total debt by $10 billion while allowing the company to continue to do business.

“The positive is that CIT has a pre-packaged bankruptcy; which is a positive for the company and their customers in the long term,” explained consultant Emanuel Weintraub. Prepackaged bankruptcy refers to a plan for financial reorganization that a company prepares in cooperation with its creditors that will take effect once the company enters bankruptcy.www.investopedia.com

“My comments are geared to the CIT factoring business,” Weintraub continued. “That part of the firm is extremely well run. It is run like a small banker would run it. They know everyone they deal with.”

“But companies do not like uncertainty,” said Weintraub. “And if they feel the CIT situation isn’t resolved, they will seek other avenues.” And they have. CIT factors 65% of all apparel retail ending. Most retailers and vendors are sourcing internationally. And international business is done by letters of credit. And on either side of the transaction, you want certainty.

CIT is involved with all aspects of small business financing. The figure given is one million customers. Weintraub said there aren’t enough of the CIT-type firms to pick up the slack. “If you’re a strong company financially, another lending source or bank will pick you up. If your not, you are stuck with CIT.”

In comments to Associated Press, Craig Sherman, Vice President of Government Affairs at the National Retail Federation, believes the industry "dodged a bullet on the holiday season.” This is because most merchandise is in stores' distribution centers. He did say “CIT's woes could throw a wrench in ordering for the 2010 spring season.”

However, small businesses have options regarding financing and loan sources. CIT's competitors include larger commercial banks, such as Wells Fargo & Co. and Bank of America Corp.; General Electric Co.'s General Electric Capital Corp.; and some regional and community banks. Another source are credit unions.

The Credit Union National Association (CUNA), a trade association, said that nearly 2,200 credit unions (27 percent of the nation’s 8,000 credit unions) reported outstanding business loans at the end of 2008. Larger credit unions are more likely to make business loans. Businesses must be aware that credit unions can only lend to their members.

The Independent Community Bankers of America represents 5,000 community banks of all sizes and charter types throughout the United States.

And then there is the US government itself. Programs are available through the US Small Business Administration.

Becoming a Collections Expert: The Small Claims Options

Mon, 02 Nov 2009 14:40:41 -0500

From Michelle V. Rafter: The party went off without a hitch.

Two hundred people sipped wine, nibbled on artichoke tarts, risotto balls and veggie spring rolls and raised thousands of dollars for the American Cancer Society at an April 2009 fundraiser held at an upscale retail store in a central New Jersey town.

It was only 30 days later, when the evening's host still hadn't sent The Devon Group the final third of the marketing agency's fee for orchestrating the event that owner Jeanne Achilles realized there was a problem.

According to the host, a local commercial photographer, the agency hadn't made good on its promise to collect sales leads at the party along with donations, so he didn't feel obliged to make a final payment.

But Achilles knew the contract she signed didn't stipulate anything about sales leads. After a month of phone calls and emails failed to resolve the issue, Achilles did what she's done before in similar situations - she headed to small claims court.

There are gentler ways to go after clients who don't pay their bills, including sending demand letters and negotiating payment plans. Sometimes they work. But sometimes you can just tell when a customer isn't going to respond to anything but the harshest measures - and this was one of those times, says Achilles, who's taken a handful of clients to small claims court in 15 years running the business. "I've found it's a huge waste of time to be nice or sit back and wait," she says.

The Devon Group has locations in New Jersey, Massachusetts and London, routinely works with multi-million dollar clients and bills more than $1 million a year for marketing, public relations and direct mail campaigns. But the company is still only a 15-person operation and Achilles says she can't afford to pay an attorney to go after every deadbeat.

She can, however, afford an hour of her lawyer's time for coaching on how to take collections matters into her own hands.

On the advice of her lawyer, small claims court has become Achilles' recourse of choice for collecting from particularly recalcitrant customers. In some instances, the mere threat of a lawsuit has been enough to get paid. Only once did Achilles go all the way to mediation and walk away with nothing.

In this instance, Achilles says keeping meticulous records of the agency's communications with the party host regarding the contract worked in their favor, as they had plenty of evidence showing there was never a mention of generating sales leads. "He was trying to use that as justification for not paying," she says.

In New Jersey, filing a suit in small claims court is a relatively easy process. Along with filing, Achilles used her secret weapon: paying $50 each to send subpoenas to witnesses, in this case, party guests who subsequently agreed to testify on her behalf. Subpoenas are great, if only for the intimidation factor, she says. "Some of those people were local politicians, the head of the chamber of commerce, the head of the American Cancer Society of the state - you wouldn't want to be airing your dirty laundry in front of them," she says.

Initially, the fundraiser host refused to negotiate. But the night before the case was to go before a small claims court judge, his attorney called and asked what it would take to make the lawsuit go away. Achilles asked for - and got - 100 percent of the $5,000 she was owed.

Even though she got the money, Achilles still rankles at the attitude some clients have toward service providers like hers. She says: "It drives me wild people expect you to deliver work product, you jump through hoops to do it, and yet when it comes to getting paid they think it's a negotiable aspect of the relationship."

Navigating Small Business Rewards Cards

Mon, 02 Nov 2009 11:55:42 -0500

From Linsey Knerl:

With more cards available to small business owners than ever, it can be difficult to choose the rewards system that will be most beneficial to your business. Will you go with cash? Credit on your account? Airline miles? Gifts? Picking just one way to go isn’t always easy (or possible). Luckily, there are practices you can follow to be sure you are getting the most from your rewards card.

1. Ask about rewards.

Rewards change all the time, and while you may have signed up for a card years ago with the intention that you will always be redeeming them for airline miles, new products and offerings are being developed each day. The next time you find yourself on the phone with your card’s customer service rep, ask them if they have any new rewards options that may help meet your small business goals. You may not even have to switch cards to get them.

2. Prioritize your needs.

How would you like to see your rewards work for you? Would you like them to be directly returned to your bottom line? Or are you more interested in seeing them shared with the organization in the form of incentives for employees?

Popular options for putting those rewards back into your pocket include:

Applying cash rewards directly to your next month’s charge account.
Applying cash rewards directly to purchase orders for vendors you use regularly.
Earning percentage discounts for future purchases with your most regular vendors.

Small business owners with an interest in rewarding employees directly like to:

Use reward points for merchandise and gift cards to be given as employee incentives.
Use airline miles and travel bonuses for company anniversary recognition gifts.
Give cash rewards as bonuses for high-performing employees.

(Note: among the American Express OPEN Cards for small business, the Plum Card is best if you prefer cashback, while the OPEN Business Gold and OPEN Business Platinum cards are best for getting rewards like airline miles, exclusive event tickets or access to business lounges around the world.)

3. Build opportunities to earn.

Since some employees will try to use their own credit cards for business expenses (thus having the chance to earn rewards through their own cards), it is beneficial to communicate a company-wide policy on how expenses will be reimbursed and how using company-issued charge cards are preferred. If there is no set policy on such practices, devise one that not only ensures that employees consistently use the company account (and help build the rewards that will keep charging profitable), but that also pays back a little to employees who follow good policy and turn in expense reports in a timely manner.

As card companies flex to compete for your business, there is always an opportunity to earn more value for your expenses. Ask your credit card what they can do for you, and keep looking for the perfect partnership that will help grow your company.

How I Tweet

Mon, 02 Nov 2009 10:32:26 -0500

From Guy Kawasaki:

Way back in July of 2009, I explained how I used Twitter. Lots has changed since then, so this is an update to explain how I tweet. As a small business owner, you can adopt my techniques to use Twitter as a marketing tool.

General

Question: How can you follow more than 180,000 people?

Answer: I don’t read the timelines of all the people that I follow. Instead, I only deal with @s, direct messages, and tweets that contain “guykawasaki,” “alltop,” or “guysreplies.” I answer almost every @ and direct.

Question: Then why do you follow everyone who follows you?

Answer: I follow everyone for two reasons: first, common courtesy; second, so that people can send direct messages to me. I like direct messages because they are more efficient than email.

Question: Why do you use both @guykawasaki and @guysreplies?

Answer: Originally, I created @guysreplies to reply to @s that all my followers do not need to see. Subsequently, Twitter changed the way @s work so that only people who follow both parties will see them. However, there are ways that people can still see all the tweets from @guykawasaki, and I don’t want to waste their time.

Also, I like a high signal/noise ratio from @guykawasaki, so I don’t want a bunch of “Thanks for reading my book” in it. The downside of what I do is that people might think that @guykawasaki is not responsive and “engaged,” but I’m willing to take this risk.

Work Flow

Question: What Twitter applications do you use?

Answer: For reading, I use TweetDeck on my Macintosh and Tweetie on my iPhone.  For posting, I use Objective Marketer and Posterous.

Objective enables me to create marketing campaigns and then schedule, frame, repeat, and track tweets. (Disclosure: I am an advisor to Objective.) It is the foundation of my Twitter efforts.

Posterous powers a part of Alltop called Holy Kaw; this sub-domain is a collection of summaries of the third-party sites that I am tweeting about. (Disclosure: I am an investor in Posterous.)

Finally, I use SocialToo to automatically follow people who follow me and to kill spam direct messages. (Disclosure: I am an investor in Posterous.)

Question: How do you find so many links to tweet?

Answer: I use three principal sources: Alltop, StumbleUpon, and SmartBrief. These sites curate and aggregate information to make the hunt for quality links much, much easier.

Question: What is your workflow?

Answer: I find interesting links and write-up a short summary using BBEdit that I post to Holy Kaw, and then Objective checks the Holy Kaw RSS feed once per hour and tweets new articles.

Question: Isn’t that a long, complex process just to tweet something?

Answer: Twitter is a marketing tool for me. It’s not a “social” activity or a game. This process is what it takes to make Alltop successful.

Question: How long do you spend on Twitter every day?

Answer: Asking me this is like asking Tiger Woods how much he plays golf. “It’s what I do.” If I’m on the computer, I’m on Twitter, and I’m on a computer eight hours per day.

Question: If a company wants an active, aggressive presence on Twitter, how many people does it take?

Answer: One person working really hard, unencumbered by a clueless boss and a Luddite legal department, can do it. Certainly one person can get things going enough to prove that Twitter makes sense for a company to add more people to do it even better.

Repeat Tweets

Question: Why do you repeat your tweets from @guykawasaki?

Answer: I repeat my tweets because no one’s followers are on Twitter 24 x 7 x 365 nor do they scroll back to see what was tweeted already. This is the same reason that ESPN and CNN repeat news stories throughout the day—can you imagine a news network assuming that everyone has seen a report after running it once or that everyone has recorded the news and will look back?

I have tracked repeated tweets, and the amount of click throughs on the second and third instances of a tweet is almost as high as the first one.

Question: Do you recommmend that companies repeat their tweets?

Answer: Yes, if they want to ensure that as many followers see their tweets as possible. There will be tiny number of people who will complain, but you cannot make all your followers happy.

In fact, if you’re not pissing someone off on Twitter, you’re not using it to its fullest potential. Companies should not let a few angry people dictate their marketing practices.

Question: What if I don’t want to see the repeats?

Answer: The easiest thing to do is unfollow @guykawasaki and follow @alltop because it contains only one instance of my tweets. You can think of @alltop as @guykawasaki on Tivo.

Ghostwriters

Question: Do you use ghostwriters?

Answer: Yes, four people contribute to my tweets: Annie Colbert, Gina Ruiz, Noelle Chun, and Catherine Faas.  I use ghostwriters because I want to provide as many interesting links as possible, and five intelligent people (assuming you think I’m intelligent) looking for interesting stuff will find more than one intelligent person. At the end of every Holy Kaw post, you can see who created it if you’re curious.

Question: Do your ghosts respond to @s and direct messages for you?

Answer: Never. They only tweet outgoing links to interesting sites and blogs. They never respond for me or as me.

Question: Why did you hide your use of ghostwriters?

Answer: I didn’t hide this fact. As soon as I started it, I disclosed it. My attitude is: “As long as the tweets are good, why does it matter who wrote them?” Do you think Ralph Lauren himself designed every article in his store?

Question: Why do some people attack you for using ghostwriters?

Answer: Because they are angry, little people who cannot generate content, so they try to generate controversy to get attention. They also assume that I have to cheat and use ghostwriters to respond to people because they are incapable of dealing with the volume of @s and direct messages that I get.

Question: Do you recommend that companies use ghostwriters?

Answer: Most companies are “brands,” so this isn’t an issue unless people are so dumb as to think that Richard Branson is @VirginAmerica. Issues arise when the Twitter account is a person’s name.

For example, should @Lancearmstrong use a ghost? For some tweets, I’d say it’s perfectly okay—tweets about cycling news and information, for example. However, if @Lancearmstrong says his bike was stolen, he pulled a hamstring, or he can’t stand the color yellow, it has to be him.

Let’s say the Twitter account is for the CEO of a company. I’d rather read the interesting tweets of a good ghost than a clueless CEO. It’s the same reason politicians have speechwriters. As my mother used to say, “Behind every successful politician is an amazed speechwriter.”

Alltop Promotion

Question: Why do you constantly promote Alltop?

Answer: Twitter is a means to an end: Alltop’s success. This is why I put so much time, energy, and money (my ghosts don’t work for free) into it. The Alltop promotion justifies and pays for the efforts all five of us. You can think of my tweets as PBS content and the accompanying Alltop promotion as the fundraising telethon.

Question: OK, but what if I don’t want to see Alltop promotions?

Answer: You can UFM (unfollow me) just like you can change the channel from PBS.

Question: How much promotion can a company get away with?

Answer: It depends on several factors: How much do your followers love the company? How good are the deals that you offer? How much “real” content and “interaction” do the company’s tweets contain? For sure, the answer is not “None.”

Twitter is far beyond Trixie telling Biff and Carly that her cat rolled over. It’s now a “platform.” As such, there is no wrong or right just as there is no wrong or right way to maintain a website or blog—Is Zappos “wrong” for using the Internet to sell shoes? Forty years ago, some Arpanet scientists might have said so.

The bottom line is that there’s only what works and what doesn’t, and you won’t know which is which until you try.

Additional Resources

If you have questions about how I tweet, you can reach me at @guykawasaki

Redefine Networking: Stop Looking Above, Start Looking Around

Mon, 02 Nov 2009 10:11:06 -0500

From Scott Belsky:

Here are a few thoughts for the young business leaders out there – those under 40 – trying to build their rolodexes.

We all get invited to many traditional receptions and industry presentation events. Most young professionals in the business world make the time to attend these events. You listen to someone remarkably successful speak and then you wait in line with 20 other people to get his or her business card and introduce yourself. Great use of time.

Of course, if the CEO of some established company actually becomes your individual mentor, this is wonderful. But forget accumulating contacts. When you're shopping around your business plan, launching your hedge fund, or raising cash for the next big thing, you will be searching more for partners and likeminded colleagues (and clients) rather than some super-senior contact at a Fortune 500 company.

The unconventional opportunity rests with creating an organic network of peers and recognizing that this, ultimately, will serve you more than any traditional networking ever will. Your future business partners, investors, and star employees are your age, perhaps slightly older, or even (gasp!) younger. If you have a precious night after work to attend an industry presentation, consider gathering a group of friends/colleagues and likeminded individuals instead.

Think strategically (and seek efficiency) when it comes to strengthening relationships that may become synergies. The examples of successful business collaborations in the past prove that long-lasting peer relationships are much more important than a multi-generational rolodex.

Here are a few tips:

Don’t Undervalue Interns!
When the interns come around every summer, recognize that they may not only enlighten you with their youthful insights, but the opportunity to be a mentor is mutually beneficial. If you're good at identifying talent, you never know what your former intern may go on to achieve – they may eventually play an integral role in your career.

At Traditional Events, Focus On the Unknown People In The Room
Rather than buddy up to the superstars, spend time getting to know the ambitious emerging leaders in the room that share similar interests. These are the business cards you want!

***This article is based on research by Behance CEO Scott Belsky, whose book, Making Ideas Happen, will be published by Penguin in April 2010. Behance runs the Behance Creative Network, the 99% productivity think thank, the Action Method project management application, and the Creative Jobs List.

Cardmember Profile: "The Toilet Paper Entrepreneur"

Mon, 02 Nov 2009 09:37:49 -0500

From Linsey Knerl:

You don’t have to read Mike Michalowicz’s (Mi-Cal-O-Witz) entire Wikipedia page to get the notion that this guy knows what it means to “start something from nothing.” Michalowicz’s tale of bootstrapping a business and turning it into quite a success story is what qualifies him to host the business reality show “Bailout!” and has made him an engaging and relatable guest on CNBC’s The Big Idea with Donny Deutsch, ABC News, Fox News and other television programs. We get inside the business mind of the Toilet Paper Entrepreneur to find out how you can actually have an advantage in this tough economy.

How does a small business owner know that they've "made it?" Is there a magic yardstick for performance where you can let up a bit? Or is it important to stay just as driven throughout the life cycle of a new business?

I think entrepreneurs need to be careful about defining a one time goal and measuring success by that. The problem is if they don't achieve it, they will inherently define everything up to that point as a failure. Instead I think we all should have a major "dream scenario" that we are targeting, but move toward it in small measurable steps. Every time we surpass a step, we should celebrate and then determine the next big step we can take toward our "dream scenario". This type of strategy allows entrepreneurs to periodically adjust their approach to success and not get bogged down in the one definition they may have of achievement.

No matter what -- and I know this from years and years of being an entrepreneur -- no matter how far you get, you will always want to go further. So, celebrate every success no matter how small or how big, because there will never be a finishing point.

Your small business message really helps to put those professionals with fewer resources on the same level (if not an advantage) as those with many resources. How do you explain this phenomenon/fact?

It is the great paradox of entrepreneurship. All the things we were "taught" about what determines success is, in fact, the opposite. I discovered that it DOES NOT take money to make money. In fact, it is the lack of money that forces innovation and out-of-the-box thinking. And when you are a startup entrepreneur with no money, you starting finding new, unexpected ways to get things done. Ironically, if you had a fat wallet, you would be blinded to the innovations you could bring about.

Can you tell us a little about how you use charge cards or credit in your business?

Charge cards are the core to any business, and mine is no different. The Amex card is particularly important for what I call "rapid transaction cash management." Basically I receive frequent orders for products and services, but won't receive the actual payment for a few days. So once I secure an order, I use the good ol' Amex card to purchase the raw materials. I consider Amex the "bank in my pocket"... it is always there, 24x7, and ready to make a business loan any time and every time.

The start up of my business required some traditional outlays, such as buying office supplies and such. But Amex really was critical when it came to publishing my book, The Toilet Paper Entrepreneur. Instead of going the traditional publishing route, I decided to start my own publishing company - talk about a nerve racking decision! Starting a publisher required, among other things, a big purchase order to the book printer. A quick call to the Amex 1-800 number and the book printer got right to work. Fast forward one year later, and my book is in the hands of more entrepreneurs then I even knew existed. It has been a wonderful success, and it truly all got started with an Amex card and the 800 number on the back.

What AMEX cards do you and your business utilize the most? What benefits or perks are your favorites?

Hands down, there are two Amex cards that I love! First the Plum Card is a MUST for my "rapid transaction cash management", since I get money back when I pay off the statement within a week or so... I LOVE THAT. But there is another Amex card that has to be in my pocket, and it is the Platinum card. I travel a lot, sometimes more than I like, and nothing is better than having the Platinum card. It gets me into all the reserved clubs at the airport (think quiet, free internet, free food and drink, and privacy), and it has a concierge service that can pull some serious ropes!

Do you have any last words of wisdom for AMEX small business users?

I am a HUGE advocate for women entrepreneurs and am always looking to speak to women entrepreneur groups, partner with the groups and do collaborative projects. It is my emphatic belief that the next generation of entrepreneurs, is in fact NOT the next generation. The next generation of entrepreneurs is the female entrepreneurs, particularly women who are in their 30's, 40's and 50's. Watch out world! They are taking over! (And that is a good thing.)

The Financial Plan: Your Guide to Future Business Success

Fri, 30 Oct 2009 15:59:44 -0400

From Polly Traylor:

As the CEO or founder of a growing small business today, you are likely swamped meeting customer needs, dealing with inventory, shipping or customer service problems, pleasing investors, watching your budget, and looking for the next big opportunity. Wait: did you forget about your financial plan? While you might consider this a time-consuming business school exercise with little value for a hands-on small business owner like yourself, former Wall Streeter Tim Ferguson and others say that financial plans are in essence a roadmap to your future success.

As an example, a client of Ferguson’s, founder of Boston-based merchant bank Next Street, not long ago approached a bank for help financing a real estate deal. The bank declined to provide a loan, in part because it didn't understand the company's growth model--even though the client was a profitable business. "It makes a huge difference to have a financial plan," says Ferguson, whose company provides advisory services and financing assistance for inner-city small businesses generating between $5 million and $100 million in revenues.

According to Ferguson, the business plan is not much different than a financial plan, but it has a much tighter focus on metrics. Ferguson says that his company spends on average three months with a client developing a financial, or "growth" plan, which includes a fact-based analysis of the business--typically covering customers, segments, profitability models and margins, number of employees, and costs. After the plan is developed, it gives the company a roadmap for a monthly budget, and also includes specific growth strategies, according to Ferguson: "You would want to develop list of possibilities such as, expanding from a local region to interstate, or beefing up your business line or making acquisitions, and then you would need to narrow all those ideas down to three or four options."

Part of the plan needs to cover execution, he says: how are you going to finance your growth? This long-term view, put down in writing, can help managers focus on what's most critical to compete, and help drive the business toward those goals.

It may also be helpful, if you work in an established industry, to look at benchmarks of other companies to help you understand your own strategy, says Dileep Rao, author of two upcoming books on small business financing including: “Finance Any Business Intelligently(TM); Handbook of Business Finance (5^th Ed.).” But keep it real, he advises: "Many people write business plans for financiers, but I suggest that you write it for yourself and your company’s goals."

It all sounds straightforward, but of course it's not. Rao, who is also a financial consultant and teaches courses on VC financing at the Carlson School of Management (University of Minnesota), predicts that the U.S. economy will continue to limp along for the foreseeable future largely due to the trade imbalance.

"For small business it means if they learn how to be more efficient, they can take market share away from other people and maybe dominate and export to the rest of the world," he advises. "Focus on doing that instead of waiting for the rising tide to float your boat."

You will need to focus on your metrics, of course. "The cost of sales and timing of sales are things people usually screw up," warns Dileep. "They don't measure that carefully and end up losing a lot of money." Adds Ferguson: "What you don't measure is not managed. If you want to increase sales in a particular channel, you need to measure and show that."

Finally, flexibility should not go out the window when you develop a financial plan. The document should be something that you revisit quarterly, if not more often. If something's not working, change it fast. The founder of Minneapolis-based Aveda originally opened up salons and trained people for free, recounts Rao; when those newly-skilled workers left him for other jobs he decided to train beauticians and employ them at the same time. That led to the opening of more salons and eventually a highly-successful product line. "He switched his entire business model and later sold the business for $300 million," remarks Rao.

A Journey Into (Office) Space

Fri, 30 Oct 2009 13:37:28 -0400

From Steve Viuker :

It was the best of times; it was the worst of times. Dickens said it as he was looking for office space.

“The market in New York hasn’t hit bottom yet,” explained Bob Stella, Executive Vice President & Principal at Cresa Partners. (www.cresapartners.com) “We believe that will occur in late first or early second quarter of next year. This drop began nearly 18 months ago. It picked up speed after the Lehman collapse. Whereas top rents were $200 psf in class A space, they now can had for $80. Then, B and C space began to feel the impact. In major markets, you’re seeing concessions offered upfront to attract tenants.”

“How leases are structured in terms of flexibility is another factor,” said Stella. “If you are taking 4,000-7,000 psf of space, you can walk into a pre-built unit and sign a short or long term deal. In some cases, you can also relocate within a landlord’s portfolio if you need to expand.”

Bob Stella has these tips for small businesses looking for space and what landlords require:

Look for a sublease? Subleases are discounted anywhere from 15-25%. Plus, you get turnkey space, possibe furniture and a phone system already in place. Six months security deposit is usually the norm.

Also, be prepared for the landlord to ask, “How are you funded,” “Do you have a business plan,” and “Who are the people running your firm?”

A report by Cushman & Wakefield said sublease space has been more heavily discounted over the past year. The average asking rent for sublease space at the end of the third quarter was $49.54 per square foot, a 27.7 percent or $19.04 year-over-year decline from $68.58 at this time last year. The report also points out that tenants who were previously weighing their options, or extending their current leases for a short term, are starting to make long-term decisions to lock in leases at rental rates that haven’t been seen in several years.

(source- Cushman & Wakefield www.cushwake.com )

Major market office rents from 2nd quarter to 3rd quarter-2009

San Jose ($23.95) 5.0%

New York City ($47.16) 4.4%

Seattle ($24.47) 3.5%

San Francisco ($30.14) 3.5 %

Denver ($17.06) 3.2 %

Oakland ($20.54) 3.2 %

Nashville ($15.52) 3.2 %

Tampa ($17.52) 3.2 %

Orange County ($21.53) 3.1 %

San Diego ($23.80) 2.9 %

Source: Reis Inc. (www.reis.com )

The New Social Google: What it Means for SMBs

Fri, 30 Oct 2009 13:00:59 -0400

From Jennifer Van Grove:

On Wednesday, October 21, at the Web 2.0 Summit in San Francisco, Google's Vice President of Search,Marissa Mayer, made two important announcements regarding search.

The first big piece of news is that Google will integrate real-time Twitter search into search results. The second ground-breaking tidbit is that the search giant will be unveiling Google Social Search in just a few weeks.

These aren't your everyday announcements. Both have major implications for social brands and present huge opportunities for small businesses. Let's take a look at why.

Tweets Matter

Twitter search tools have always been important resources for finding out what people are saying right now on any given subject matter, product, service, or brand. But tweets have been largely irrelevant to online users not using Twitter. That's about to change forever, as both Google and Bing have announced integrated real-time Twitter search. Bing's product is a separate webpage, but Google confirmed that their offering will include tweets integrated into standard search results.

Essentially this means that tweets matter more than ever, because they will be exposed to mainstream searchers. All the good, bad, and ugly things ever said about your small business or your competitors are now ripe for perusing by the common web searcher. Having a social presence, especially on Twitter, is now mandatory.

Say, for instance, you have a disgruntled customer who decides to tweet their frustration. Somewhere else in the world another individual is searching Google for a service provider in your industry, but their search returns the aforementioned negative tweet, replies, and retweets. You've now lost that sale. The situation is exacerbated if the Twitterer in question happens to be highly influential.

But, should you be using Twitter for your SMB, see the negative tweets pop up, and engage with the naysayers to try and remedy the situation, your customer service tweets will also become a part of the search experience. Since it's a real-time integration, your tweets are actually much more likely to catch the eye of a searcher over the older tweets from the disgruntled customer. you can actively change the real-time dialogue about your business.

Customers Rule Search

Google Social Search is equally just as important to understand if you're an SMB. The basic idea is that when you search, you'll now be able to see contextual and relevant search results from your friend connections on the social networks you've added to your Google Profile. While Social Search will be launched as a Google Lab feature, and will be entirely opt-in, it's likely to become one of the most popular extras ever introduced by Google.

I use Google for everything, for quick spell checks, finding restaurants in my immediate city, geeky gadgets, good books, startups and web services, directions, and especially local services. Now when I search, I know I can scroll to the bottom of the page to see what my friends, across all of the social networks I belong to, have said about my search query. Because these social search results are the filtered, uncensored blog posts, tweets, status updates, and photos from people I know, they will serve to guide me in making better decisions about where I spend my dollars both online and off. Your business could be the top result, but if I see that my friend on Facebook thinks your product is mediocre, I'm not buying.

While your ability to rank high in search listings is still important, and don't forget that social media does improve SEO, what really matters will become what your customers say about you online, and my relationships with those customers. Your social media presence, or lack thereof, can drastically alter and affect what get said about you online. And since we know that search will be a contextually social experience, you need to be participating in these online discussions about your products, services, and competitors.

Image courtesy of iStockphoto, DSGpro

Tips and Resources for Finding Stimulus Dollars

Fri, 30 Oct 2009 12:30:12 -0400

From Anne Field:

When it was passed in February, the $787 billion stimulus package—or, more officially, the American Recovery and Reinvestment Act of 2009 (ARRA)--seemed like a promising development for small business owners. But,tapping that money has proven to be a difficult, complex task, especially for small companies. With that in mind, here are five tips for making the stimulus package work for your business.

Scour local agencies for useful stimulus-funded programs. Earlier this year, Dick Shaw, who heads 20-employee Little Colorado, wanted to find government programs that could assist him in hiring two more people for his Denver-based company, which sells hand-crafted furniture and toys. He ended up working with Workforce Development Division; the city agency was using part of the $4.66 million in stimulus funding it had recently received to subsidize half the salary of newly hired employees in selected local companies for six months. In October, Shaw brought on board two people to do everything from sanding to painting. “We would not have hired them without this help,” he says.

If you’re after a government contract, be prepared for homework—lots of it. Trying to win a contract is pretty much the same as it is for any government work. That means filling out long, cumbersome forms and winding your way through a maze of agencies. “You can’t lightly poke at the application process and see results,” says Eric Gillespie, CIO of Onvia, a Seattle-based company with an online database of government contracting information.

What it all means is you have to do a lot of upfront research to determine which agencies to approach and what the procurement process is. (For more resources, see below). Luckily, you can check out federal opportunities over $25,000 at one fell swoop, at FedBizOps.gov. At the state and local level, where most of the money will be allocated, you’ll have to look at state and county, or individual agency, web sites. You also need to find out who the buyers are and get their names, phone numbers, and email addresses. For federal work, register with the Central Contracting Registry (CCR); states have their own individual sites.

Think about sub-contracting or teaming up with another company. Some projects just require a larger work force or a higher volume of production than a small business can supply. In that case, consider teaming up with another small business to bid on the contract (for more about teaming read these stories on http://www.openforum.com/idea-hub/topics/innovation/article/team-to-help-win-government-contracts-open-book">OPEN Forum). Or, you might approach big companies that have recently won contracts about doing sub-contracting. “I’ve talked to large engineering and construction businesses that have so much work, they can’t find enough contractors to do all the drainage and road repair they need to finish,” says Steve King, a partner with Emergent Research, a Lafayette, Cal., small-business research and consulting firm

Start by approaching small-business outreach offices at large contractors. You can also check company web sites for information about current contracts. Or, post your profile on such sites as the Federal Contracting Network, www.tfcn.us, and www.mySBX.com.

Don’t overlook tax provisions. While the ARRA includes a handful of tax benefits, they’re still not widely understood. As a result, “I don’t see a heck of a lot of small businesses taking advantage of them,” says King. For that reason, you should familiarize yourself with the most potentially beneficial provisions. For example, there’s a deduction of up to $250,000 for the cost of such equipment as computers and machinery. The dollar limit begins to phase out when purchases for the year exceed $800,000. Also, you can get a depreciation allowance of 50% of the cost of qualified property.

Other useful provisions include a tax credit for hiring certain unemployed veterans and disadvantaged youths; the ability for some small business owners to pay only 90% of 2008 estimated taxes; and a host of tax credits for investing in alternative energy.

It’s also important to act quickly. One provision allowed small business losses to be carried back for three to five years, instead of the usual two, to offset income in those years. But it was only applicable for the tax years beginning or ending in 2008. “Don’t wait to talk to your accountant or it could be too late,” says Barbara Weltman, a Millwood, NY, tax and business lawyer specializing in small business.

Combine benefits. As Ethan Siegal recently discovered, you can mingle tax incentives. The CEO of Orb Audio, a 10-employee maker of audio equipment in New York City, is thinking of using a new $250,000 line of credit to buy equipment for making binding posts for speakers, instead of outsourcing the task to another manufacturer. He figures he can apply both the deduction and depreciation allowance to the purchase. “That can make a significant change to our business,” he says. “We’ll be less reliant on outside suppliers.”

How to Preserve Critical Vendor Relationships

Fri, 30 Oct 2009 11:19:44 -0400

From Julie Rains:

Cash flow management has always been an integral part of business management. When credit gets tighter and business bankruptcies rise, creditors – including your vendors – start getting very concerned about past due invoices. Monitoring cash balances is essential and withholding payments until the last possible moment may be necessary, but be careful: being slow to pay in order to manage cash reserves may alienate you from vendors that provide mission-critical products, raw materials, or essential services.

All vendors deserve to be paid on time but if you are in the process of making decisions about which vendors to pay, understand which ones have the most impact on your short-term needs and long-term viability.

Slow pay is the new delinquent.

For years, your vendors may have not pressed for on-time payment but accepted that some customers paid late. As long as payments were made within a reasonable timeframe, vendors kept shipping product or providing services. But as credit markets tighten, vendors need the cash to pay their suppliers. As a result, they may place credit holds on any customer that has an outstanding balance, late or not. Limiting exposure is one way of minimizing credit risk.

Establish which vendors are critical to your success.

Start by defining what products, materials, or services are critical to your business. Your company may need a certain raw material with physical properties that differentiate your products from the competition. Outsourced professional services may allow your organization to comply with environmental regulations or maintain information security. There may be brands so dominant in the retail landscape that not offering these in your product assortment would mean a dramatic loss in consumer traffic. Or, you may need a specified level of service to fulfill contractual commitments with your customers.

Then, figure out if those products, materials, or services in the form you need, when you need them, and at the price you need to maintain profitability are widely available from a multitude of vendors or if they are in limited supply.

Critical vendors are likely ones that supply materials or products that are needed nearly every day. But some vendors may offer highly specialized and hard-to-find products or services that are used infrequently. Your company may work with a toy manufacturer just once every year for the make-or-break holiday season or an intellectual property attorney who offers invaluable advice on patenting your inventions on an infrequent basis.

All vendors in a well-managed business should be important, but those that offer specialized products, materials and services not readily available elsewhere are the most critical to your success.

Determine your value to your vendors.

Figuring out your company’s value to your vendors has two main components:

the profitability of the entire relationship, and
your position compared to other customers.

Just as a customer evaluates vendor performance, either through formal scorecards with ratings on categories such as price, on-time delivery and quality, or informally through casual discussions with purchasing agents and end-users, vendors will consider all aspects of a customer relationship.

Customer profitability can be measured not only by considering revenue for each account but also by analyzing costs associated with servicing the customer (such as providing customized product features, packaging, and transportation routing), extending credit longer than intended, and collecting payments.

Your status relative to all of the vendor’s customers isn’t perfectly straightforward but requires some detective work, analysis, and judgment. Begin by considering your competitive position in your industry. Gather market intelligence by shopping retail markets, attending industry events, and reading trade publications to judge where your business stands in relation to competitors. If your company has carved a market niche using commodity materials to create value-added, proprietary products, then you may have no problem keeping vendors. But if your business is a small player in a huge sector, competing with cash-rich companies for limited supplies of a raw material or highly branded product line, then you may not be all that important.

After evaluating your industry position, think more specifically about what your vendors have been telling you, either directly in conversations or indirectly through their actions. Responsive service with account reps who quickly handle problems likely means you are a valued customer. If a vendor regularly shares market intelligence that has allowed your company to capture a new market or increase sales, then the vendor probably adores you. But, if a vendor provides you with unreliable service that has caused you to miss sales opportunities or fail to meet provisions of a customer contract, then your business isn’t all that important.

Summary

Only you can decide the best way to manage your cash flow but taking a long-term view while dealing with pressing issues is what will help your business survive. Right now, make sure you preserve relationships with difficult-to-replace vendors who provide critical products on a day-to-day basis. Pay those vendors within a time frame that is clearly acceptable to them. Otherwise, you’ll likely find yourself on credit hold and unable to get products or services from vendors who hold the keys to your immediate survival and success. But don’t ignore those who you will need later if these vendors have exclusive or extremely hard-to-find products or services that your company needs to continue doing business.

Companies will be more discriminating in working with customers who are the most profitable and pay on time. Vendors may streamline operations and eliminate low-profit, slow-pay customers, abandoning sales growth to focus on boosting the bottom line. Make sure you are positioned to be a part of the future.

Online Invoicing

Fri, 30 Oct 2009 10:34:36 -0400

From Shira Levine:

Online applications cater to our every financial and administrative whim. Invoicing via these programs is a great way to save on postage, faxing paper, time, as well as keeping the hard copy files down to a minimum. When you’re without the benefits of HR and accounting folk, finding a quick and easy way to get the busy work done and of course getting paid is vital.

I chatted with Michael Leone, the owner of Coastline Internet Marketing Group. He’s been using FreshBooks.com for over three years. He pays $39 a month and checks his account once a week to review invoice statuses. Leone is a fan of how simple and easy the application is to use.

“I used to fax my invoices to 20+ customers a month, it took me hours. With Freshbooks, I'm done in 20 minutes,” says Leone. “Even if you're a small company like us, you can brand your invoices to look as professional as you want.”

Leone is a fan of a feature that allows clients to login and review their payment history. There is also the option to send the invoices from the program via snail mail for those who haven’t completely embraced digital.

I took advantage of the free 30-day trials for four other invoice programs in addition to Freshbooks to see how their billing and payment tracking compared. Note: I bill roughly 12 different employers as a freelancer each month.

+ LessAccounting sends and tracks invoices, connects to your banking information, and keeps all that data up to date for you. Cost: $20 a month post free-trial.

+ Cashboard: Besides invoicing, Cashboard also assists with estimation and time tracking. It’s compatible with the iPhone. They also have a very thorough FAQ page on the site. Price is $10 a month.

+ SimplyBill has the jazziest looking invoice templates. Along with time tracking, it also issues out email alerts and saves invoices as pdfs.

+ SimplyInvoices doesn’t limit the number of invoices you send out each month. Pick between 10 templates for $9 or 20 templates for $16! No need to back up your invoices either; they remain archived as long as you keep your account afloat.

I preferred LessAccounting’s format most. But beware: Don’t expect the transition to online billing to be flawless.

“It took a few months for our customers to get used to email invoices,” says Leone. “It is easy for the message to sit in the customer’s inbox. A paper invoice tends to get more attention, but 95% of our clients are billed monthly, so they are getting accustomed to our billing system.”

Federal Grants for Small Business: Chasing Clean-Tech Stimulus Dollars

Thu, 29 Oct 2009 18:06:21 -0400

From Polly Schneider Traylor:

Entrepreneur Kevin Ross is hoping to capitalize on the burgeoning market for clean tech, buoyed by the hopes of winning some funding from the $70 billion earmarked for alternative energy projects in the American Recovery and Reinvestment Act (ARRA).

Ultimately, he says, farmers might be his biggest customer. The idea is to lease part of a farmer's land and make a "solar farm" of ground-mounted panels. The farmer would then receive leasing fees or else partner with SunBanks Solar for revenue sharing, with revenues coming from selling the power to local power companies.

But to build his business accordingly, Ross, who is one of three employees including his wife, needs more resources. He was able to self-fund the company’s launch using about $50,000 of his own money, saved and invested over the years from his civil engineering firm, Land Design Services Inc. “We don’t have to have the money [to survive] but we could hire sales staff and buy trucks and hire a crew,” he says.

To that end, Ross hired CleanTech PR, a national public relations and grant writing firm, to help apply for two federal grants from the National Science Foundation one of which is a joint application with a university for a $1 million grant, according to Christine Harmel, a partner for CleanTech PR based in Austin. (The NSF fiscal year 2009 budget of $9.5 billion includes $3 billion from the ARRA)

According to Harmel, federal grant money is hard to get even when you have an excellent business plan and a sharply-written proposal. She believes at this point, after submitting the application to the NSF in November, SunBanks Solar has about a 50% chance of receiving any money due to stiff competition.

The effort required in applying for such grants is not trivial. She describes the steps: find a grant that is available for the type of business that Sun Banks Solar provides, document work or projects that the company has done in the past that fit with the grant’s requirements, identify partners that would jointly participate to fill in any requirements gaps, identify experts in the field, provide resumes and CVs, and so on.

Even when a company wins an award, there are many strings attached. Gregory Burkart, a Detroit-based managing director at advisory and investment bank Duff & Phelps, has helped clients win ARRA grants in the alternative energy sector. He says that when a federal grant is awarded, clients must meet certain conditions before they can even access the funds. For instance, a government auditor might inspect your manufacturing plant to ensure that it matches the specifications outlined in your application. And, says Harmel, regular reporting of how you are using the money according to the budget that you submitted in your application is required. "The documentation is excessive," she warns.

Burkart’s advice for companies applying for stimulus-backed grants? "You have to remember that it's a recovery act so jobs are very important and you have to be able to demonstrate that," he says. “It requires sophisticated modeling. You just can't pull a number out of the air."

As far as Ross is concerned, the process seems overwhelming and complicated when it comes to his worldview and the goals he has for his company, a newcomer in a promising and maturing clean tech sector. "We could put a lot of people to work [if we got the grant] is the way I look at it."

Becoming a Collections Expert: Seven Basic Tips

Thu, 29 Oct 2009 17:28:56 -0400

From Michelle V. Rafter:

Got a client who won’t pay their bill? Join the crowd. Collecting on overdue bills has always been a challenge for small businesses that can’t afford the legal muscle of bigger companies, and “This economy has made it that much worse,” says Jeanne Achilles, owner of a New Jersey public relations and marketing agency that’s had its fair share of deadbeat clients over the years.

Here are some suggestions Achilles and small business experts have if you’re going after overdue payments, and how to avoid getting into the situation in the first place:

* Put it in writing. Always work with a written contract. By spelling out terms of a project in print, both the service provider and customer know exactly what’s covered, and what isn’t. Achilles, owner of The Devon Group, a Middletown, New Jersey, marketing, PR and direct mail firm with annual billings over $1 million, suggests including language that specifies which legal jurisdiction has authority should a contract dispute end up in court – a simple thing if you and your customer are both in the same state, not so simple if you’re not. SCORE, the nonprofit business self-help group that pairs retired execs with small business owners, also suggests spelling out any surcharges for late payments on invoices.

* Develop credit standards. If you provide goods or services on credit, create standards clients have to meet before you’ll extend it to them, put them in writing and make sure your employees know what they are, SCORE suggests.

* Structure partial payments. Avoid getting stuck doing all the work for none of the pay by arranging to receive a partial payment up front. If you’re working on an ongoing or multi-part project, arrange to receive partial payments at agreed upon project milestones.

* Don’t wait. If your contract states bills must be paid within 30 days of services rendered, don’t feel bad about following up when day 31 rolls around and you don’t have your money. “They’ll pay you if they know you’re going to complain,” Achilles says. “But if you’re passive about it, your invoice goes to the bottom of the pile.”

* Don’t be shy. Some clients get tough, nasty or practice other avoidance behaviors to get around paying what they owe. Fight fire with fire, to a point. Small claims court is the toughest weapon in Achilles’ arsenal. Before going there, she sends email, calls and sends demand letters signed by her attorney. And she talks tough when she needs to. Right now a client is disputing finance charges stemming from an overdue payment. “It’s a big company so they wouldn’t have to let go of anyone to pay it, but he’s trying to arm wrestle me on the issue,” she says.

* Use a collection agency. If all else fails, you can take a delinquent client to court, or turn them over to a collection agency, which may charge a fee or percentage of the overdue amount in exchange for their services.

* Write it off. If the amount you’re owed doesn’t warrant going after a client in small claims court or paying a collection agency to pursue them, write it off as a bad debt. Should you do business with that client again? Use your best judgment, SCORE suggests, but if you do, consider asking for stricter terms, such as up-front payments.

Image Credit: Colors in B&W

What Customers Want for the Holidays

Thu, 29 Oct 2009 16:52:23 -0400

From Julia Rogers, Recession Wire:

As the nation once again surges into the critical winter holiday season, many small business owners are thinking about how their strategies will be different during continued recovery. This fall, experts have finally started to see a marked difference in profit outlooks, particularly for retail stores. Many large industry players such as Target, Kohl’s and J.C. Penney Co. have boosted their projections when events like back-to-school sales in September – major gauges of shoppers enthusiasm for spending – garnered more positive results than anticipated.

Last month’s improvements in sales for retailers signaled the second straight month of better-than-anticipated predictions and the most significant profits since July, 2008. Other sources, including Retail Metrics showed even better returns, with retailers posting a 1.1% increase in profits.

Beyond the retail market, small business reports this fall predict that the second half of 2009 and the holidays will look much better than last year for those in other industries. A Small Business Research Board (SBRB) and Investment Promotion Agency (IPA) poll revealed that 66% of small business owners and managers expect their financial outlook to be better in the latter part of 2009 than it was in the first half of the year and last year at the same time. Also, 59% of small businesses surveyed said they had been able to keep revenues steady without having to significantly reduce costs.

Many small company owners and managers are seeing quite a few benefits emerge in 2009 as the result of the recession and recovery that were not present in 2008, that will actually help them keep momentum during the holidays. The following business strategies can help small businesses thrive through the end of 2009.

Take advantage of the high unemployment rate. In the retail industry, many companies are seeking seasonal help thanks to their expectations of improved sales, and having access to many more candidates than in previous years has helped make the hiring process easier for them. In other markets, small business owners and managers are finding that because of improved profit expectations, the holidays are no longer off limits for hiring new staff. The availability of many qualified and even over-qualified workers that are unemployed means small business managers can tap into a larger pool of viable candidates that have much stronger skills than in previous years and are willing to work for less. With stable and even increased budgets, businesses in the retail market and beyond are getting creative with positions. Many are going beyond traditional sales floor jobs and looking for those to help with behind-the-scenes work such as stocking, shipping, maintenance, recruiting and human resources.

Online presence is more important than ever before, so use it. According to survey results released this month by MarketLive and the E-Tailing Group and reported by Web Pro News, 55% of people plan to shop online during the holiday season this year, up from 49% last year. Also, 26% of shoppers plan to buy more gifts online than in previous years, up from 21% in 2008.

Tap into the 88% of online shoppers who continue to do so because of great customer service, the availability of difficult-to-find items and customer conveniences like 800 numbers, online chats and instantaneous e-mail alerts when items are shipped means businesses are going to be focusing this year more than ever on building a stable, professional, pleasant online shopping environment for customers. Even business owners without e-commerce sites are going to have to put a greater focus than ever before on the professionalism of their business Web sites. Many without an online presence will need to consider creating them in order to boost sales.

Social networking is becoming a necessity for small business owners. Facebook now touts 300 million active users, 50% of which log in on a daily basis, with those in the 35 and over demographic among the fastest-growing group of users . This trend in marketing is not going away anytime soon, and even small businesses still watching their budgets during the 2009 holiday season can use Facebook and Twitter as free methods for announcing special holiday promotions and to create a more personal relationship with clients and potential clients.

While the holidays in 2008 were marked by paring back for many small businesses, 2009 could be positively different. Businesses that pay attention to their customers’ needs; tap Internet resources; and understand economic realities like the unemployment of many talented hiring candidates will be able to navigate the recession and recovery and even benefit from it.

Portable Applications Turn Your iPod Into Your Computer

Thu, 29 Oct 2009 16:27:44 -0400

From John Jantsch:

If you travel from city to city or office to office and don’t want to lug your laptop everywhere you go, you might be interested in a concept called portable applications.

Portable applications are versions of software you may use on your desktop or laptop computer that can be stored on your iPod or any removable media, such as a flashdrive and launched on any compatible computer.

The obvious advantage to setting up and carrying around a full suite of applications on your iPod of flashdrive is that you have the ultimate portability. However, there’s another very good reason. If you use another machine to do work, most everything you’ve done leaves a trail on that machine (including password and other sensitive data.)

In addition, your portable applications can be preconfigured with all of your settings, such as bookmarks, so you can plug your portable version of Firefox into a compatible machine (with or without a resident copy of Firefox) and launch your browser with your familiar settings ready to go. Or, you can fire up your version Mail on a borrowed Mac and have all your contact information ready to go. (Portable applications are not cross compatible – Mac versions for Macs and PC versions for PCs.)

The following is what I consider an essential list of portable applications. Every business traveler should download, set-up, and store these on a flash drive or iPod just in case you ever show up for that huge presentation and realize your laptop is sitting on the A-train headed to Poughkeepsie.

Firefox
The browser of choice for many these days

Firefox (Mac)

Open Office – an open source suite of tools that can be used to create, open, and edit documents, spreadsheets, and presentations created in Microsoft Office and other office tools.

Open Office (Mac)

Sunbird – calendar and task application built on the Mozilla Firefox platform

Sunbird (Mac)

Thunderbird- email application built on the Mozilla Firefox platform

Thunderbird (Mac)

Portable versions of Mac default software– Safari, iCal, Address Book, and Mail

Notepad + + - Full featured text editor

Skype– use your Skype set-up on the go

Miranda IM – cross protocol IM client for chat on multiple systems

Adium IM (Mac)

7Zip – File compression and unpacking

Filezilla – Full featured FTP client

Cyberduck (Mac)

MuPDF Reader

(Mac and PC versions) – Open and edit PDF files

FastStone Photo Resizer – Simple image editor, resize, crop and retouch images

Portable Gimp (Mac)

Mojopac – Allows your to clone your PC and take your entire desktop with you

Wikipedia list of portable apps - comprehensive list of portable applications

Great list of mac apps

Image Credit: purplelime

Celebrate Your Customers

Thu, 29 Oct 2009 14:40:45 -0400

From Mark Stevens, Entrepreneur: An OPEN Forum exclusive provided by CEO of Entrepreneur.

Do you ever give your customers a standing ovation? I mean a real flag waving hoopla?

Do you make a fuss over them? Do you go over the top in demonstrating that you see them as the royalty of your business?

Or do you think it's good enough just to have your invoices printed with 'Thank You' at the bottom? Maybe you send a 'Merry Christmas' email dutifully every year because the business-as usual playbook says so.

If you have fallen into this trap reverse your engines.

Mediocre salespeople think it's all about them. And that perfunctory thank you is not enough.

Great salespeople know that it is critical to start with the customer, take a step back to determine what will delight them to make the sale, and then fast forward again to shower the customer with love.

At this point, you may be confusing the idea of celebrating your customers with fawning over them. But I have something else in mind.

Something like actually paying attention to them: caring, thinking, dreaming and wondering enough about what they say and what they are asking, to challenge them. To developing a solution to their needs based on what your analysis tells you is even more valuable to them, instead of just giving them not what they ask for; even if it flies in the face of what they started off thinking they wanted.

You don't serve your customers by dutifully taking orders. That's old school salesmanship and a sure fire way to do the opposite of celebrating your customers. Yes, you may make them happy for the moment but--and this is important--it's at the expense of truly identifying what's in their best interests. You're robbed of the opportunity to influence a change from what they think they want to what it is you discover they really need.

As a CEO and an adviser, I find that my and my firm's best and most productive business relationships are born when a client enters the room thinking they know what they want, and using experience, insight and intuition, we prompt them to change their mind.

The goal is never to be contrarian for its own sake, but to celebrate your client in such a substantive way that you care enough to:

Invest in the development of a wiser solution than what the knee jerk response would be.

Take the risk of displeasing the client at the outset because you don't agree with them.

Engage in something far more powerful than a vendor relationship by transitioning to a collaborator. The fact is, the process of collaboration not only leads to an unusually close affiliation but opens doors of opportunity that are richer and more sustainable than those driven expressly by the desire to make a sale.

Celebrate the customer in the true sense of the word and the economics will take care of itself.

Mark Stevens is the CEO of MSCO, a results-driven management and marketing firm, and the bestselling author of Your Marketing Sucks and God Is a Salesman. He is also a popular media commentator on a host of business matters including marketing, branding, management and sales. He is also the author of the popular marketing blog, Unconventional Thinking.

Small Business Stimulus Program Gets a Boost

Wed, 28 Oct 2009 16:42:09 -0400

From Michelle V. Rafter:

When the $787 billion stimulus bill passed in February, hopes were high that it would, among other things, provide a boost for small businesses hard hit by the credit crunch.

Since then, the Obama administration and Small Business Administration officials say small business lending has risen 70 percent. That’s still short of pre-recession levels “but we’re on the way to getting there,” says David Hall, an SBA spokesman. Small businesses that have successfully navigated the maze of paperwork involved in getting credit backed by SBA loan guarantees have used the funds to create jobs, make capital improvements – and even start companies.

But taking advantage of stimulus incentives is proving challenging, to say the least. If they’re not familiar with them, policies and procedures small businesses must to adhere to when performing work on stimulus-related state or federal contracts is daunting, according to small business advisors and government contracting experts. In addition, credit remains tough to come by as many bankers continue to use old criteria for making small business loans despite government-backed incentives, business owners and advisors maintain.

To ease the situation, the Obama Adminstration this week announced plans to sweetened guarantees for banks that make SBA loans and open up stimulus funds to community banks that make loans to businesses operating in economically disadvantaged areas.

Under the new plans, certain SBA loans will top out at $5 million, up from $2 million. Local banks with less than $1 billion in assets that submit plans showing how they’ll use TARP funds for small businesses could get capital at thee percent interest, instead of the five percent larger institutions pay. Administration officials said they’ll seek comments on the new proposals for several weeks before finalizing the details.

Overall, the American Recovery and Reinvestment Act includes a number of programs that canpotentially benefit small businesses, and it’s not too late to advantage of any of them. They include:

Government contracts - Small businesses can work on wide range of federal, state or local projects funded by stimulus money, though they must adhere to stringent guidelines that apply to all government contractors.

Tax credits – The stimulus bill includes a number of tax breaks for companies of all sizes, including reduced estimated tax payment requirements; credits for hiring veterans and “disconnected youth”; expanded COBRA credits, and energy-related breaks. In addition, businesses with revenue of $15 million or less operating at a loss can get refunds on five years worth of back taxes, up from two.

Loan programs – In addition to increasing loan guarantees and adding community banks and credit unions to the list of institutions eligible for stimulus funds, the stimulus bill created the America's Capital Loan Program. The ARC program lets qualified small businesses get interest-free emergency loans of up to $35,000 to pay off other debts and defer payments for up to 12 months. Through mid-October, approximately $102 million in ARC loan funds had been approved, according to the SBA. The agency also increased the amount of funds available in its microloan program to $50,000 from $35,000.

Of all the stimulus package’s components, it’s the SBA loans that have received the most attention, and complaints.

Small business consultant Joe Abraham says regional bankers still fear potential fallout from bad loans. As a result, they haven’t rolled lines of credit back to pre-recession levels and continue to use old lending requirements as criteria for making new ones, including checking potential borrowers’ FICO scores and using their homes as collateral.

With real estate prices are still depressed throughout most of the country, that means his small business clients are still locked out of credit, says Abraham, managing director at En Corpus Group in Hoffman Estates, Illinois, outside of Chicago. “Even though there may be money to lend, at the end of the day the banker who’s making the decisions is petrified,” Abraham says.

Incentives are working for some. President Obama’s Oct. 20 press conference kicking off the additional SBA loan offerings was held inside a warehouse owned by Metropolitan Archives, a Landover, Maryland, company that stores paper files for law firms. Co-owners Joseph A. Incarnato and Doug Peters used an SBA loan to buy the building and received energy tax credits for replacing the lighting and AC, said SBA Administrator Karen Mills in a call with reporters following the press conference. “It’s this kind of business that’s growing and adding people that’s going to bring us out of recession and into recovery,” Mills said.

Image Credit: Ladybugbkt

5 Tips on How to Emphasize Action Over Inertia

Wed, 28 Oct 2009 16:32:32 -0400

From Behance Team:

At Behance, we’ve observed that the most productive creative professionals typically organize themselves and make decisions with a strong bias towards action. Not surprisingly, actually doing things seems to be more effective than thinking or talking about doing things. In the spirit of doing, here’s five quick tips on how to emphasize action in your work environment:

1. Act without conviction.
It’s a natural tendency to try to plan out everything perfectly before you take action. Yet, nothing ever goes exactly according to plan. We’ve found that the most successful professionals tend to take action even if everything about a project isn’t clearly defined. The next time you’re stuck in a planning rut, unable to envision the “perfect solution,” try to go ahead take action in any way you can. The information that you gather by acting, as well as the momentum you gain, will help you refine your objectives and keep moving forward.

2. Prototype your ideas.
We rarely (if ever) strike upon the best solution right out of the gates. Rather, we get there through iterative development, or trial and error. Although the word “prototype” is largely used in the context of professions like industrial design – the design consultants at IDEO are bullish on transforming ideas into working models as soon as possible – it’s a practice with application for all of us. Writing and rewriting a proposal is prototyping, running and refining a social media marketing campaign is prototyping, and so on. In essence, prototyping just means trying something out, and then making a better version based on what you learned. The sooner we experiment, the more information we have to take further action.

3. Get out of your own way.
The problem with creating hard-and-fast plans is that we often get unduly attached to them, so much so that even when an unexpected opportunity emerges, we are loathe to deviate from the agreed-upon plan. But some of the greatest advances and innovations have emerged from “accidental” or unforeseen insights that had nothing to do with a business plan. If a promising opportunity emerges or momentum wells up unexpectedly, be willing to explore it – even if you don’t quite understand yet how it fits into the big picture.

4. Replace update meetings with “huddles.”
For some reason, when we all gather in the conference room, meetings tend to take a bit longer than they need to. Yet, when everyone remains standing for a meeting, the gathering automatically gains a certain urgency that encourages speedy updates and efficient decision-making. For meetings that do not demand extended brainstorming and/or debate, a quick huddle will usually suffice and has the added bonus of encouraging less idle talk and a swifter return to doing.

5. Create testaments to progress.
When we accomplish the items on our to-do lists, we rarely take the time to appreciate the progress we’ve made – instead, always looking forward to what’s next. While it’s not constructive to rest on your laurels, it can be helpful to integrate testaments to past progress into your work environment – whether it’s a wall of “to-dones,” or an oversized project board that tracks phases of completion as you develop a new product or feature. We are emboldened to take action when we remind ourselves that every little step makes a difference.

***This post by J.K. Glei is based on research by the Behance team. Behance runs the Behance Creative Network, the 99% productivity think thank, the Action Method project management application, and the Creative Jobs List.

Why 'Charlotte's Web' Suddenly Matters to Marketing

Wed, 28 Oct 2009 16:18:09 -0400

From Ann Handley:

The other day I got an email press release from a technology company crowing about a partnership with another organization. It read, in part: "We believe the alliance between xxx and yyy represents a synergistic win-win with significant value add for both solutions, allowing each to utilize and leverage their unique strengths in the market."

Huh? If the news was worth covering, I couldn't tell, because the press release was stuffed to the seams with jargon-filled corporate-speak. I deleted the email almost immediately, sat back in my desk chair, and thought about EB White.

EB White was, of course, the author of Charlotte's Web and Stuart Little. But he was also the co-author, with William Strunk Jr., of The Elements of Style. Actually, in 1959, White edited and updated Strunk's Elements, originally published in 1918. (Strunk had been one of White's professors at Cornell.)

But anyway, The Elements of Style is a sort of classic playbook for writers, and you'll find it in full view on the bookshelves or desks of most writers in the way that—as the writer Richard Ford has said—you'll find the Gideons bible in most hotel rooms, as a beacon to the hapless: "In case your reckless ways should strand you here, there's help."

The Elements of Style doesn't teach anyone how to write. But it does school you about critical fundamentals of the art and science of writing: Clarity. Brevity. Boldness. EB White has been dead for almost 25 years, and it's been 50 years since his version of the Elements first hit the streets, yet the book is more relevant than ever.

And maybe more so. In a newly social world—ostensibly marked by an allegiance to authenticity, and engagement, and trust, and personality, and all that—White's message aptly applies to businesses and how they approaches their marketing and communications. What's more, in an online world where everyone and anyone is able to produce content cheaply and efficiently, you had better be sure that your own stuff is up to snuff. Otherwise, you—and your company—will be easily ignored.

In other words, when you are trying to engage your intended audience, you need to create something that they first can understand. Better yet, you need to create content that's compelling. Something people want to read, or watch, or listen to, or interact with, or otherwise consume. You want them to find it remarkable, even. You want them to love it so much that they'll pass it around, and share it with friends and contacts on the various social media platforms.

I'm guessing EB White couldn't imagine that something like Twitter would one day buttress his rationale for good, clear, interesting writing. But yet, almost 25 years later, it does.

Of course, if I hadn't read The Elements of Style when I was an underclassman at Simmons College, I might be telling you that EB White would inspire "best-of-breed thought leadership that will help your customers and clients track to true north."

And, by the way, a special 50th anniversary edition of The Elements of Style by Strunk and White was recently published. Same book, but elegantly bound. Check it out: The Elements of Style: 50th Anniversary Edition

Ann Handley is an 11-year veteran of creating and managing digital content to build relationships for organizations and individuals. Ann is the Chief Content Officer of MarketingProfs.com which provides strategic and tactical marketing know-how for marketing and business professionals, through a full range of online media and live events. She also blogs at her acclaimed personal web log.

Photo credit: mpclemens

Government Plays VC in CleanTech

Wed, 28 Oct 2009 15:52:29 -0400

From Jen van der Meer:

“If we can get three home runs, that’s terrific,” announced Steven Chu, the DOE Secretary at a press conference on Monday, October 26 at Google’s campus in Mountain View, CA. Chu was at Google to deliver 37 energy technology projects funded by the Advanced Research Projects Agency-Energy program (ARPA-E), the DOE’s first effort at funding $151 million in experimental energy technology grants, focused on high-risk, high-payoff projects.

A 3 out of 37 home run success rate is hoping for an outcome better than Silicon Valley venture capital odds. Yet the DOE’s choice of companies and organizations is starkly different from those selected by VCs. While, 43% are small businesses, 35% went to educational institutions, and 19% to large corporations.

Grants to independent companies focused primarily on those with strong university research ties, such as MIT spinouts 1366 Technologies, SunCatalyx, FastCap Systems and FloDesign Wind Turbine. Several universities received funds such as MIT for an all liquid metal grid-scale battery low cost energy storage, Stanford for sensors, software, and controls to track and improve energy use patterns, Michigan State for a gas-fueled electric generator, and others to Arizona State, Ohio State, and more.

Large corporations were also included in the grant awards, to companies such as General Motors for an energy recovery device that converts waste heat from car engines into electricity, du Pont for the production of advanced biofuel made from seaweed, and United Technologies for Synthetic enzymes that capture CO2 from coal plant flue gas streams.

Venture capitalists typically focused on early stage companies in order to focus on the potential high growth technologies of the future. The DOE’s mandate is different, choosing technologies that will transform the way we consumer energy in the future. The ARPA-E grant is the first investment in alternative energy technologies since the US began investing in technology R&D after Sputnik. What do you think of the government’s ability to pick winners? What odds would you give the Department of Energy?

Small Business Survival: Become a Collections Expert

Wed, 28 Oct 2009 15:23:42 -0400

From Polly Schneider Traylor:

Despite mounting evidence of an economic recovery, for many small businesses the future is still murky. Quarterly reports on sales reveal 41 percent of small business are experiencing declines, compared to 21 percent reporting quarterly gains, according to the October 2009 Small Business Economic Trends survey, conducted by the National Federation of Independent Businesses (NFIB). Quarterly profit trends are the weakest in survey history, with 50 percent of businesses reporting declines compared to 14 percent reporting gains. Furthermore, weak sales and earnings are bruising the credit worthiness of many potential borrowers, according to the report.

So where's the good news here? It's all about collections. If you can be a collections expert in your business, you can mitigate some of the economic risks. While there's no easy way to prove that collections problems have put more companies out of business in this recession, says NFIB Chief Economist William Dunkelberg, one thing's for sure: slow-paying customers are putting many companies at higher risk today.

Let's say that you have a recession-proof business such as selling toilet paper, explains small-business finance expert Kate Lister. If all the companies that you sell to start to pay slow, then you can’t pay your own bills, and from there it snowballs: companies that have bank loans based on their receivables will begin to disqualify for their loans or line of credit renewals if receivables fall beneath a certain limit, says Lister, a financial consultant, former venture capitalist, and author of small-business financial books, including Finding Money—The Small Business Guide to Financing.

Here are our few guidelines and considerations when managing a successful collections practice:

Choose customers carefully
It’s time-consuming, sure, but the more work you can do up front qualifying your customers, the less risk you assume. Firstly, says Lister, check the credit references of your potential customer before doing business with them - even doing personal credit checks of the business owner or CEO is not unreasonable. Naturally, you also might want to ask around on your social networks to find out if the company has a good reputation. Further, she advises, try to avoid having large concentrations of customers in a single industry - that can be risky to your cash flow if that industry begins to suffer for some unforeseen reason.

Establish credit limits
Many businesses today extend goods and services based on credit. So in essence, your business has become a bank for your customers, Lister warns, and you need to determine your limits for the amount of credit that you will extend and your timeframe for getting paid. These days, some people are even forgoing the 30-day window in favor of payment in 15 days or less, or, requiring 50% of the payment up front. Whatever your strategy, make sure you have terms regarding what happens when the customer defaults. Late fees or requiring collateral at the point of sale are just two ideas.

Be flexible and get creative
If you give your customers a lot of options for payment, you might get better results. As an example, allow customers to pay by credit card, rather than by sending a check, advises an author on AMEX Open Forum. Of course, you want to think about incentives as well for paying early, writes Anita Campbell, blogger with Small Business Trends: "Try this technique to get paid fast: call or email the customer and ask if they can pay that day (or that week) if you give them a discount, and then get the money right away through wire transfer, PayPal or a credit card payment."

Invest in the right systems for your size business
As you grow, you need to adapt your systems accordingly. "When you start to talk about a $500 million business or more, you have grown beyond Quicken," Lister says. "You need a bigger accounting system… and if I'm a business owner, I want weekly reports of what is going out and what is coming in the door." It's especially important to have systems that monitor accounts receivable aging, so that you can be proactive with your customers about payment.

Playing hardball
Some companies have policies to delay payment as long as possible to protect their cash flow. In those cases, you'll need to become a bug in that customer’s ear, until you get paid. "Get on the phone with the CEO and with other vendors to get the story,” Lister suggests. “It's perfectly reasonable to ask the customer to show you how they will continue to pay your bills." If you’re fulfilling a big job for a new or potentially risky customer, require a letter of credit from their bank that guarantees payment. “For instance, the terms might not release widgets from your loading dock until the money is in your account,” Lister says.

Outsourcing: it works
Running a solid collections practice can be time intensive. Until you reach a certain size in which outsourcing is cost-prohibitive, Lister recommends letting someone else take care of this critical yet tedious task for you: “Most business owners may not even be qualified to interview a bookkeeper.” If you do decide to outsource, look for an accountant or service provider that has experience in your industry, and with similar-sized businesses.

For more on this topic, visit our Resources page.

Photo Credit: Skettalee

Small Business Bankruptcies Continue to Rise

Tue, 27 Oct 2009 17:20:30 -0400

From Henry Blodget:

After a steep drop during the boom of 2005 to 2006, small business bankruptcies have risen sharply as the recession has progressed.

The increase accelerates even further starting in Q308. This was likely driven by:

A decrease in consumer and business spending during the beginning of the recession in Q407 (the weakest companies go bankrupt).

Frozen capital markets and less lending by banks following Lehman's collapse in Q308. This caused day-to-day liquidity to become very difficult to obtain (even seemingly strong companies started to go bankrupt).

The rise in small-business bankruptcies should slow as the economy recovers, but they will likely remain high for a while. Although the stock market appears to believe that we will have a "v-shaped" recovery, high unemployment and distressed consumers suggest that a complete recovery will take years.

Additional reporting by Rory Maher

Are You Ready for the Trend Toward Marketing Automation?

Tue, 27 Oct 2009 11:51:04 -0400

From Anita Campbell:

Marketing is becoming automated.

That’s a fast-growing trend illustrated by yet another marketing automation company getting venture money.

Marketing technology company HubSpot just announced a $16 million Series C financing round from three venture capital companies, bringing its total venture pot to at least $33 million, Xconomy.com says.

Started three years ago by two entrepreneurs, HubSpot is an inbound marketing system that helps optimize small and midsized businesses’ Web presence so prospects are more likely to find them online. HubSpot plans to go public eventually.

So, what about this trend? Traditionally, marketing your business was a very hands-on activity, requiring expert knowledge (or paying for expert knowledge). Increasingly, though, business marketing services are being turned into automated tools you can tap into online, using the software-as-a-service (SaaS) model. Big investments like the one in HubSpot prove this approach is likely to have staying power.

In 3 to 5 years, the marketing landscape could look very different than it does today. Marketing strategies that once required considerable knowledge of marketing, lots of labor or the big budget necessary to outsource the job to experts will be available to any small business that can afford a monthly subscription fee. Instead of paying thousands a month for service providers, you could pay a couple hundred dollars a month for an automation tool or system to help you instead.

Of course, marketing services aren’t entirely automated (yet), but they’re getting there. These services walk you through processes that were once entirely manual, simplifying something that formerly required a great deal of time and effort. They turn services into replicable processes that can be done in less time.

Examples of marketing services that small businesses are already using are plentiful—just a few of the more popular ones include:

· SalesForce.com’s CRM tools

· Constant Contact’s e-mail marketing service

· Google’s AdWords system for advertising

· online press release services like PRWeb.com

· LotusJump’s link building and SEO service

· Logomaker’s logo and branding design tool

· Knowem’s social media identity protection system

There’s good news and bad news about this trend. If your business is a marketing agency or marketing consultancy, your industry is changing (aren’t they all?). You need to think about how the expertise you offer fits into this increasingly automated world. When services previously offered only by “experts” are available to everyone, how will you package and sell your own expertise? Can you “productize” your service and turn it into an automated tool? Or will you choose the niche of customers who want “high touch” service rather than automation?

If your business needs marketing services, good news: These tools can help level the playing field and make you more competitive with big companies -- for a far lower price than you’d pay for the old-style services. Of course, there’s a learning curve involved as you’ll have to figure out which service works best for your business. You and/or your staff will have to learn how to do your part in understanding, using and monitoring the automated products and services you choose. But the end result will pay off in cost savings and new profits.

How to Get Found

Tue, 27 Oct 2009 11:36:46 -0400

From Guy Kawasaki:

Brian Halligan is the founder and CEO of HubSpot, an Internet marketing software company that helps small and medium-sized businesses get found on the Internet and converts website visitors into leads and customers. He is also the author of Inbound Marketing: Get Found In Google, Blogs, and Social Media.

It used to be that you could efficiently grow your businesses by interrupting potential customers with outbound marketing methods like cold calls, email spam, and advertising. Today people and businesses are tired of being the targets of so much outbound marketing and they're getting better and better in blocking it out.

At the same time, people and businesses have fundamentally changed the way they shop and learn, turning more and more to Google, social media sites and blogs to find what they want. Inbound marketing helps companies take advantage of these shifts by helping them get found by customers in the natural way in which they shop and learn. The following are Brian’s five steps to help you get “get found.”

Be remarkable. Ten years ago you needed to spend gobs of money on PR and advertising to spread the word about your idea. Today the friction that marketing must overcome is very low for remarkable ideas such that they can spread on their own. Unremarkable ideas languish unfound regardless of how much PR and advertising you do. So make sure you have a unique, remarkable offering as it will spread like wildfire on the Internet if it's truly different.
Create content. Once you have your remarkable product or service, start creating lots of content about it—including blog articles, videos, podcasts, and tweets. Remarkable content about your remarkable product gets hyperlinked from other websites. Those links send you traffic, and they also tell Google that you should be higher in the rankings.
Optimize content. Before publishing your content, you need to “optimize” it for Google and for the people on Facebook, Twitter, YouTube, LinkedIn, etc who will spread it. For Google, you should include some of your “keywords” in the title of your content piece so it will be easier for Google to find it. For readers, you should make your titles as irresistible as possible. A good model for this is this blog that uses titles like “The Art of Schmoozing,” “MBA In A Page,” and “The Top 10 Lies of Venture Capitalists.”
Promote content. Once you have a remarkable piece of content that is optimized, start spreading it. Post it on your blog, email it to your newsletter subscribers, tweet it, update your Facebook fan page and LinkedIn profile with it. If the content is remarkable, others will spread it for you. As that content spreads, you will have more people follow you or subscribe to you, so that the next piece of content you publish will have a wider audience in the future.
Measure results. You need to measure your results for each channel. For example, you should compare your results for Google organic branded search, Google organic non-branded search, Google paid, blog, email, Twitter, Facebook, LinkedIn group, and tradeshow campaigns to each other. For each campaign, you need to track visitors, leads, opportunities, and customers over time. Then double down on the campaigns that are working and kill the ones that aren’t.

The fundamental way in which humans shop and learn has changed dramatically the last five years because of the increased power of word-of-mouth and search. Therefore, you need to change the way you market your products to match the way people learn and find out about them.

Customer Service Sells (No, Really, It Does)

Tue, 27 Oct 2009 10:27:09 -0400

From Michael Port, Entrepreneur: An OPEN Forum exclusive provided by Entrepreneur.

Who doesn't love the pure innate pleasure of buying? Whether it's a magazine in the airport or the art that hangs on your wall, what you buy is an extension of who you are. Your purchases embody your needs, your desires and your unique way of being. They speak to who you are as a person and how you choose to live your life. Every purchase is an unspoken expression of what you value. So, if you're looking for a simple way to increase long-term sales, deliver an outcome that is in direct alignment with your what your customer values.

For me, it's important to have a clean, comfortable and neat home. It's what I value. I recently expressed this value by hiring two cleaning companies--and I received two very different outcomes. As a result, I learned something very important about how companies go about showing you that their products or services meet your needs and values.

I always thought cleaning was just cleaning. You know, simple and straight forward--windows, floors and linens. Bring me home to a fresh, sparkling throne with the toilet paper folded over like those swanky hotels, and I'm a happy man. Both companies satisfied these cleaning needs, but there was one distinct difference. The first cleaning company replaced items like picture frames, candles and art in places different than originally positioned. Not on the other side of the house, but six inches over to the left or at a different angle (which made me freakin' nuts). The second cleaning company put the items back in their original positions.

My assumption was that, even though the good folks from the first cleaning company could clean effectively, they were inattentive, or worse yet, incompetent because they couldn't put anything back where they found it. It turns out, however, that they were actually attempting to demonstrate a job well done--that they had actually cleaned. They were of the mind that if items were moved then I would know that they had been there and done the work. It never occurred to me they were moving things to demonstrate their work. I was shocked. I really just thought they were incompetent.

It turns out that both cleaning companies attempted to serve me in their own way. The interesting part is how they chose to demonstrate their work. The first approach was about the company providing the service. The second approach was about service for customer satisfaction. I favor the second approach--big shocker--and it's not just because I'm obsessive-compulsive about my stuff. No, really, it isn't.

It reminds me of Tony Alessandra's Platinum Rule, the alternative to the Golden Rule. The Golden Rule tells us to treat others the way they want to be treated. The Platinum Rule tells us to treat others the way they want to be treated. Big difference.

If you look at the way a lot of people are selling and serving, you'll see that they're taking the show-as-you-go approach. They're looking for a way to show off something that they think is relevant. Instead, let your customers decide what the work should look like. Go a little above and beyond and fold the hand towels like a flower. That might be a little much, but maybe not. This is all obvious stuff, right? Sure, but if it were that easy, you'd close every sales call and never get a customer complaint for as long as you lived.

When your customers set expectations from the start, you create a successful environment to serve them. In my case, the cleaners now appreciate that the candle wax gets cleaned, but the candle needs to go back where I put it. Once I expressed this to them, they even decided to take photos so they can serve me better and put things back in the same place.

The moment you create buying opportunities with benefits and eliminate distractions, you optimize the pleasure of buying, and who in the heck wouldn't want to minimize this very simple, but powerful pleasure of life? Give your customers a little "buying therapy." Allow them to enjoy every minute of expressing their values with an outcome perfectly suited to them. We can all serve our customers this way--and in the meantime increase sales opportunities to sell them over and over again.

How to Get Free Press by Becoming a Source

Tue, 27 Oct 2009 10:17:04 -0400

From Josh Catone:

You've seen it in both the local and national press: small business owners interviewed and quoted as part of larger stories on topics related to business, finance, or their specific industry (i.e., food preparation, automotive sales, or retail). These quotes amount to valuable free press for those businesses, who get to establish themselves as leaders in their field -- people whom reporters and others will seek out for information in the future, and who get their business name out to potential customers. But how do you, as a business owner, make yourself more attractive and available to journalists?

Social media and the web can be an incredible resource for any business owner trying to become a source and land some free press. Below are three things you should be doing right now to increase your chances of landing interview placements on blogs and in newspapers.

1. Blog

The number one thing you can do to make yourself a more attractive target for journalists in need of a source is to blog. Blogging allows you to get your ideas out there, demonstrate your breadth of knowledge and familiarity with your industry, build credibility, and become more visible. Use your blog as an editorial platform to share your thoughts, opinions, and expertise about the things that are happening in your industry, and about any issues that affect small business owners or consumers.

In order to maximize your visibility, write guest posts for more popular blogs within your business niche, and make sure that you have properly optimized your company or personal blog to best be indexed by search engines. Like the rest of us, journalists working on stories use the web to research and one of the most likely ways they'll find your blog is through search engines.

Of course, making your blog discoverable is only half the job; you also need to make it easy for readers to contact you. Some writers prefer to do interviews via email or instant message, some use Skype or phone, and others prefer face-to-face meetings. You should cater to as many of these options as you feel comfortable with, but always make it easy for journalists to reach out to you.

2. Tweet

Though it is more difficult to demonstrate your expertise in a subject when you have just 140 characters to work with, Twitter is nonetheless an excellent platform for establishing your authority. Writers prefer to quote expert sources, because readers are more likely to trust the words of someone who possesses the credentials to speak authoritatively on a topic. Twitter is a great place to start building that authority by connecting with your peers and sharing information, news, and links in your area of expertise.

You can also use Twitter as a way to connect directly with reporters. Follow and retweet the journalists who cover your industry, and engage them in conversation as a way to get on their radar. Further, writers will often talk via Twitter about the stories they're working on -- many even tweet out regular calls for thoughts, opinions, quotes, and interviewees. By keeping tuned into the reporters that cover your business, you'll increase your chances of being tapped as a source in a story.

3. Help a Reporter Out

Probably the best way to make yourself visible to journalists is to Help a Reporter Out. Help a Reporter Out -- or HARO, as it is known -- is a mailing list that connects journalists to willing sources. Founded initially as a Facebook group, the daily email list allows reporters to put out calls for the types of people they need to connect with for stories they're working on. For example, if a reporter is working on a story about small business owners implementing innovative marketing strategies to cope with the down economy, they'll send out some information on HARO about the types of business owners they'd like to interview. On the receiving end, eligible sources will then contact those reporters directly to tell their story and set up an interview.

As someone who has used HARO as a journalist, one tip I would give to potential sources is to read the reporter's query carefully. Journalists are generally very busy people, often operating under strict deadlines, and they don't appreciate their time being taken up by people who aren't a good fit for the story they're working on. It's in your best interest to make sure all your interactions with journalists are positive, so it's a good idea to make sure you can offer the type of expertise and knowledge about the subject that the writer is seeking, and not be seen as someone who is wasting valuable time.

HARO is a zero risk way to get connected with journalists who are actively seeking your input and help for media stories, and one of the best methods you can use to become a source and score some free press coverage.

Image courtesy of iStockphoto, tacojim