Category Archives: Small Business
This is my baby…Facebook!
Here’s a trivia question to pull out at your next cocktail party, “Which website generates the most traffic?” Unless you’re chatting with a social media fiend, your friend will most likely guess Google. Wrong. Facebook not only generates more traffic than Google, but accounts for 50% of the mobile internet traffic in the UK. If you’re unsure of the effect social media has on your business, Erik Qualman will convince you with his mind-blowing video. Of all the astounding facts Qualman shares in the video and on his website these are our favorites:
- If Facebook was a country it would be the 3rd largest nation in the World. Hmm wonder what the national anthem would be?
- How long have you been reading this blog, 1 minute? Well, in the past 1 minute 60 people joined LinkedIn.
- There must be a lot of smart shoppers out there because Groupon will reach $1 billion in sales in less time than any company before it.
- Don’t even try to read everything on Wikipedia. If Wikipedia was a book it would take you 123 years to read the whole thing.
- Looking for baby names? In Egypt newborns have been named “Facebook.”
- If you’re not worried about monitoring what social media users say about your business, you might be in big trouble. 90% of people trust their peers for recommendations (compared to 14% of people who trust paid advertising.)
- You may have seen in commercials that 1 out of 5 relationships begins online, but Facebook is blamed for 1 out of 5 divorces.
If you haven’t jumped on the social media bandwagon yet, it’s past time to join the 93% of marketers using it. Qualman will convince you that social media is a tool that can make or break your business. So update that Facebook page, tweet at your followers, and maybe be the first to name your child LinkedIn!
“The Declaration of Innovation”
With Independence Day and the 235th birthday of the United States right around the corner, it seems appropriate to celebrate a trait we Americans pride ourselves on…innovation. For over 200 years many American businesses have eclipsed those abroad by delivering novel ideas and products.
The Consumer Electronics Association (CEA) hopes to further stimulate American innovation by advocating legislation that would encourage innovation and return it to “to its rightful place at the center of America’s economic policy.”
CEA’s efforts include the publication of a book, The Comeback: How Innovation will Restore the American Dream by CEO Gary Shapiro, and the launch of “The Declaration of Innovation.” At http://declareinnovation.com you are prompted to “add your John Hancock” and support policies to boost innovation in America. Currently there are more than 132, 000 signatures supporting CEA’s movement.
The legendary American dream promises anyone with enough dedication and hard work the chance to do and be whatever they imagine. Have you been inspired by the American dream? This concept has encouraged many to create and produce the backbones of the American economy: the Wright brothers and the plane, Edison and the light bulb, Bell and the telephone, and Ford and the assembly line to name a few.
CEA argues that we need to rediscover innovation to grow our economy and obtain the American dream. It is worth your time to visit “The Declaration of Innovation” site and read CEA’s argument. Decide for yourself if the United States is beginning to lose sight of one of the characteristics that made us a superpower.
The Time is Right for Small Business Loans
Good news is here after several frustrating years of small business owners struggling to find loans to finance their dreams. If you’re ready to call it quits, don’t give up just yet. This might be the perfect time to finally get the money your small business needs.
Where should you begin the hunt for a loan? Start with the obvious. Huge national banks are increasing lending this year. The economy is recovering and everyone is feeling more optimistic. In April JP Morgan Chase, the current leader in SBA loaning, announced plans to boost loans to small businesses by 20% in 2011. Does your business need a piece of the $12 billion that JP Morgan Chase will be lending to small businesses this year? JP Morgan Chase and other huge nationwide banks are a promising place to start looking for your loan.
If a visit to a mega bank was futile, don’t feel down…think smaller. Go to a local bank and see if you can spark curiosity in your business. In September 2010 the Small Business Jobs Act passed legislation. This act provides a $30 billion Small Business Lending Fund to be distributed among qualified community banks. There may be a local bank benefiting from the Small Business Jobs Act that will love your business ideas.
Another loan option to pursue is credit unions. Although legislation currently limits the percentage of business loans in credit unions to 12.25%, they provide lower interest rates and are often easier to qualify for. In addition politicians are pushing a bill to increase the cap to 27.5%. It is estimated that a 27.5% cap would provide an extra $13 billion in small business loans.
The past few years have been disheartening for many small business owners and aspiring small business owners. Don’t let recent frustration cause you to resign your efforts now. You may be unbelievably close to getting the loan you need to open, maintain or expand your business. Legislation and a healthier economy have created an encouraging environment for lenders and borrowers.
David Magee signs off for the last time
David Magee has signed off Biz Television for the last time. David will provide his Wall Street to Main Street business approach in other ways.
Thanks, David.
You can visit David’s website here.
Babson College offers entrepreneurial courses
Babson College is offering three new Summer Study Programs for outstanding high school students starting this summer 2011.
High-achieving teens entering their junior or senior year in high school may take one of two 
courses in a seven-week, residential program from July 5 – August 19.
* Babson Entrepreneur Development Experience: for the current or aspiring entrepreneur who wants to discover how to fit his/her business idea into the greater world picture through lessons of corporate citizenship and business development.
* Babson Idea Generation Program: for the aspiring changemaker who wishes to create innovative, real-world solutions to social, economic, and environmental issues — now. The student must want to develop his/her problem-solving skills and work in a challenging and fun team environment.
Tuition for either course is $7,380 and includes housing, meals, activities, and 4 college credits.
Each of these courses is taught by top-ranked faculty in a challenging campus environment. Students will earn 4 college credits and they may opt to take a second 3-credit class in courses that may include: macroeconomics, accounting, business law, calculus, printmaking or a foundation class in arts & humanities. They will differentiate themselves from their peers for college applications and have the opportunity to build their network in meeting with business leaders and industry experts, all while exploring the city of Boston.
High-achieving teens entering their sophomore year in high school may participate in a one week nonresidential experience from June 27 – July 1.
* Service Learning Experience: a non-residential program for rising sophomores who are passionate about social outreach and want to spend their summer experience helping some of the world’s biggest changemakers locally to make an immediate difference. No college credits are earned for this program.
Tuition for Service Learning Experience is $400 including materials and lunch.
Babson’s Summer Study Programs for High School Students provide a living/learning laboratory for students to focus on applying and advancing their knowledge in business and entrepreneurship. In this collaborative community, students will gain the tools and experience to impact and reshape organizations, industries and the world. Each program will introduce students to Babson’s way of Entrepreneurial Thought and Action and provide resources and strategies for students to think about company and world issues through their classes, cases, speakers and scheduled activities.
The application deadline is March 1, 2011. For more information visit: www.babson.edu/summerstudy.
Babson College in Wellesley, Mass., is recognized internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate program, and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programs to experienced managers worldwide. For information, visit www.babson.edu.
Small Business isn’t Celebrating Health-care Reform
In March, Congress enacted the Patient Protection and Affordable Care Act (PPACA), a 2,000-plus-page law designed to dramatically change how health insurance is provided in this country. The law might have been more aptly named the Small Business Health Insurance Act because its effects—both good and bad—will fall most heavily on small companies.
That’s because we have an employment-based health-care system and small businesses are less likely than large ones to provide employee health insurance. In 2010, the Kaiser Family Foundation, which keeps tabs on health insurance coverage, reported that 99 percent of businesses with 200-plus employees provided workers with health insurance, as compared with only 68 percent of businesses with 3 to 199 employees. Given these numbers, it’s fair to focus on small businesses when looking at the impact of the new law.
Read the complete story at Business Week
Intuit Inc. reports Small Business Employment Index Shows 0.3 Percent Job Growth for December
Small business employment continued to show growth in December with hours worked up and wages flat.
“We might expect that after months of high hours per employee, that businesses would hire and hours would fall back to normal. Instead, we see hiring up and hours worked up also. These are good signs for the recovery.”
Those were among the results of this month’s update of the Intuit Inc. (Nasdaq:INTU) Small Business Employment Index. The monthly report found that small business employment grew by 0.3 percent in December, equating to an annual growth rate of about 3.4 percent. This translates to approximately 57,000 new jobs created nationwide. The Index is based on figures from the country’s smallest businesses that use Intuit Online Payroll.
“Small business is still the most vigorous sector of the employment picture,” said Susan Woodward, the economist who worked with Intuit to create the Index. “We generally see a rise in employment for all businesses in December, but this year it is unusually strong. We can hardly see the recovery in overall national employment, but among small businesses, the recovery, albeit slow, is unambiguous.”
Based on this latest data, the employment growth rate for November was revised upward to 0.4 percent, equating to 73,000 jobs added for the month and a 4.4 percent annual growth rate. Since the growth trend first began in October 2009, small business jobs have increased by a revised estimate of 880,000.
Compensation Flat, Hours Worked Up
Total compensation per employee was flat in December while hours worked were up, compared to November.
Average monthly pay for all small business employees was $2,607 per month in December, a nearly 0.1 percent decline, which is considered flat, from the revised November figure of $2,609 per month. This translates to wages of about $31,300 per year, which is part-time work for many small business employees.
“The weakness of the overall employment picture is still reflected in small business compensation,” said Woodward. “Though small businesses are hiring and asking their people to work longer hours, they don’t have to pay more to get people. While compensation is flat, these numbers don’t mean that people didn’t get overtime and bonuses in December – they did. But on a seasonal and trend adjusted basis, compensation is not up.”
Small business hourly employees worked an average of 107.5 hours in December, translating to a 24.8-hour work week. This is a nearly 0.2 percent increase from the revised November figure of 107.3 hours.
“Hours are still strong,” added Woodward. “We might expect that after months of high hours per employee, that businesses would hire and hours would fall back to normal. Instead, we see hiring up and hours worked up also. These are good signs for the recovery.”
Small Business Employment by Geography
The Intuit Index also breaks down employment by census divisions and states across the country.
“All divisions continued to show employment growth except for the West North Central division, which continued to see job losses for the sixth month in a row,” said Cameron Schmidt, vice president of Intuit’s Employee Management Solutions division. “Most states saw increases in employment with Washington seeing the strongest increase month over month.”
| U.S. Census Division | Percent Change in Employment | ||
| East North Central | +0.2% | ||
| West North Central | -0.2% | ||
| Middle Atlantic | +0.3% | ||
| Mountain | +0.2% | ||
| New England | +0.4% | ||
| Pacific | +0.3% | ||
| South Atlantic | +0.3% | ||
| East South Central | +0.3% | ||
| West South Central | +0.4% |
Small Business Employment by U.S. Census Division continues to grow in most parts of the country except for the West North Central division. The data reflects employment from nearly 60,000 small business employers who use Intuit Online Payroll. The month-to-month changes are seasonally-adjusted and informative about the overall economy.
| State | Percent Change in Employment | |
| Arizona | +0.5% | |
| California | +0.2% | |
| Florida | +0.4% | |
| Georgia | +0% | |
| Illinois | +0% | |
| Maryland | +0.5% | |
| Massachusetts | +0.4% | |
| New Jersey | +0.5% | |
| New York | -0.1% | |
| North Carolina | +0.1% | |
| Texas | +0.5% | |
| Virginia | +0.4% | |
| Washington | +0.6% |
Small Business Employment by State is up for many states across the country with the highest increases month over month in Maryland and Washington. The states above reflect those for which Intuit Online Payroll has more than 1,000 small business firms represented. The month-to-month changes are seasonally-adjusted and informative about the overall economy.
About the Index
The Intuit Small Business Employment Index is based on aggregate and anonymous online employment data from nearly 60,000 small business employers, each with fewer than 20 employees. These small businesses use Intuit Online Payroll from Intuit, the No. 1 payroll provider with more than 1 million customers. These smallest employers are important to the economy as they comprise 87 percent of the total U.S. private employer base and employ nearly 20 million people. More information is available at: www.intuitinc.com/payrollindex.
Intuit reports data for three categories: small business employment, compensation and hours worked. Intuit analyzes and publishes the data at the beginning of each month. The Index also includes employment data broken down by geography. As with the government data, there may be revisions to the Intuit Index numbers. These revisions are partly due to calculations using the latest month of new Intuit data. These calculations include re-computing seasonal factors and the moving average process used to obtain the curve, which can change the values for previously reported months. Changes to the data are also due to revisions to the government employment data, which is used to calculate the Intuit Index.
While the Intuit Small Business Employment Index offers macroeconomic insight about the economy generally, it does not indicate or represent changes in Intuit’s business results for any period.
The Index data reflects monthly employment activity in small businesses, and is adjusted to account for changes in Intuit’s Online Payroll customer base. The percent change is measured monthly using the change in employment for existing Intuit Online Payroll customers from one month to the next. The set of customers changes each month so the measurement is the change, for each pair of months, for customers who are present in both the earlier and the later month.
Performance Reviews
Performance reviews are a trying time for both management and employees. How do you survive a performance review?
This is a time to focus on what you and your employees can achieve in the future.
- Don’t focus on what they’re doing wrong. If all they do is wrong, then why do they still have a job with you? Every employee must be doing something right. Spend a little time on that.
- Develop performance criteria that you can apply to all your employees, not just a few. This makes it easier on you, but it also can find where some employees excel and where some don’t.
- Encourage self-review. You can see what your employees believe are their strengths and weaknesses. Your evaluations should be similar. If not, something is wrong.
- If your business is small enough, you may be able to avoid reviews by encouraging feedback and communication. Make sure everyone knows that performance is critical to success.
For more insight on running your own business, tune in to Your Business Success on Biz Television.
A step in the conservative direction?
While the Obama administration was marked by expansive government over the past two years, Obama must now take conservative action.
The Obama administration is considering a range of new measures to boost economic growth, including tax cuts and a new nationwide infrastructure program, according to people familiar with the discussions. Conservatives have long supported tax cuts, as it is a direct way to stimulate the economy.
The president’s economic team has met frequently in recent days to list ways to bolster the struggling recovery, according to government officials.
On the list of possible actions: additional tax cuts for small businesses beyond those included in a $30 billion small-business lending bill before the Senate. It’s not clear what those tax breaks would target or how much they might cost in lost revenue to the government.
Also in the mix: a possible payroll tax cut for businesses and individuals, as well as other business tax breaks, according to people familiar with the discussions. Currently, income taxes are scheduled to rise with the expiration of Bush-era tax cuts at the end of this year.
Regardless of politics, the economy works in predictable ways. More spending from the public sector does little to bolster the economy, apparent with the failure of Obama’s stimulus plan.
Efforts to boost growth have taken on urgency as the economy has shown signs of flagging and is among voters’ chief concerns ahead of November’s midterm elections.
The White House is struggling with whether to propose ideas that would appeal to Republicans, and thus get support on Capitol Hill—such as tax cuts—or whether to promote ideas that officials believe could have more economic impact but might hit political resistance, such as more aid for states and more infrastructure funding.
Starbucks developing new strategy
Some surprising statistics say that Starbucks accounts for less than 10% of coffee consumption in North America and less than 1% in the world. With the familiar logo plastered everywhere, how is that possible?
Folgers is the largest producer of retail packaged coffee in the US. It also manufactures Dunkin’ Donuts retail coffee.
Kraft food, owner of Maxwell House coffee, reported high profits in the first quarter of 2010.
Starbucks does not have the edge on the home brewing market. Their coffee is overpriced and often flavorless. They plan on changing that. Starbucks Fusions, flavored with vanilla, caramel, and cinnamon, will hit shelves this summer. Starbucks is also pushing VIA Ready Brew, their instant coffee. Do people really prefer instant coffee to brewed coffee?
I guess Starbucks is about to find out.
