Surprise! Small businesses are working longer hours
By Barry Moltz
Here is a news flash: Small-business owners are working longer and harder to keep up with a still unpredictable economy. Sage North America recently announced the results of its Reinvention of Small Business Study, a survey focusing on how small businesses are changing the way they conduct business to keep up in this economy.
The study found that many small-business owners are putting in longer hours, extending their workweek and taking less vacation compared to before the Great Recession. In order to get more work done after hours, many indicated that they are using more mobile tools.
“Owners have not only had to reinvent their business model during the past five years but have also made significant personal sacrifices to keep their operations afloat,” says Connie Certusi, executive vice president and general manager of small business accounting solutions of Irvine, Calif.-based Sage North America.
More findings:
Seventy-eight percent stated that they use a mobile device to access work-related information while away from the office or their computer.
Sixty-six percent of businesses with employees said their employees use mobile devices to work remotely. Sixty-one percent of these businesses supply the devices themselves.
The top three work-related activities that employees are utilizing mobile devices for are: email (89 percent), text messaging (63 percent) and maintaining contacts and schedules (62 percent).
Customer experience is important to small businesses, with 70 percent of owners saying they actively promote a unique customer experience. However, 85 percent do not offer a formal customer loyalty program.
How do these stats compare to the latest trends in your own business?
Barry Moltz is a Chicago-based business consultant and a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
It’s still a recession for many small businesses
By Barry Moltz
Is the recession over yet? Apparently not for most small-business owners.
According to a 2012 U.S. Bank Small Business Annual Survey, 71 percent of small-business owners still think the U.S. economy is in a recession. The annual survey polled 2,202 small business owners in states where US Bank has operations (Midwestern and Western states) with $10 million or less in annual sales.
Despite thinking we are still in a recession, 69 percent of small business owners said the financial health of their business was “good,” “very good” or “excellent.” This is up from 64 percent in 2011. “Small business owners are creating ways to succeed, despite lingering concerns about the economy,” Rick Hartnack, vice chairman of consumer and small business banking at U.S. Bank, said in a press release summarizing the results. “Business is rebounding, especially among businesses with at least $1 million in annual sales and five or more employees. For those businesses, prospects for growth are particularly strong, as are their plans to hire.”
Economic uncertainty remains the No. 1 issue for small business owners, though sales volatility is less of a concern now than in the past. Twenty-nine percent said their sales increased over last year, which is up from 26 percent in 2011.
And, closer to home: Businesses from Illinois thought their state was in worse shape than the U.S. economy. Twenty-two percent thought they would increase their payroll in 2012.
A recession can be as much a state of mind as it is a state of business. So, do these findings reflect your view of the economy? Weigh in below.
Barry Moltz is a Chicago-based entrepreneur and business consultant. He is also a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
Get capital by posting on Facebook and Twitter
By Barry Moltz
In the search for cash for your business, forget about going to a bank and bringing your financial statements. A new company now makes it possible to get capital based on Facebook and Twitter activity.
Kabbage Inc. has a new program called “Social Klimbing,” which gives small online businesses access to capital based on their social network activity. This is the first time a financial services company has provided benefits to its customers as a result of their social media activity.
Kathryn Petralia, Kabbage co-founder and COO, said, “With Social Klimbing, small businesses can benefit from maintaining and growing relationships with their customers through Facebook and Twitter. While other companies are ‘talking’ about customer engagement, Kabbage is actually quantifying and utilizing it as a means to give small businesses more capital to grow.”
The company reportedly reviews marketplace data, such as seller ratings for online merchants, to underwrite its business customers. According to their press release, Social Klimbing allows customers to connect their Kabbage accounts to Facebook fan pages and Twitter feeds, which is “immediately analyzed and translated into additional capital. As customers increase followers, activities and chatter on Twitter and Facebook, they will automatically gain access to more funds.”
Who says that social media doesn’t pay?
Barry Moltz is a Chicago-based serial entrepreneur, business consultant, marketing expert, mediator, speaker and author of several books on small-business success. Look for his advice on Crain’s blog for entrepreneurs every Monday. Barry is also a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
Listen to podcasts of Barry’s “Business Insanity” radio show here.
Join Crain’s LinkedIn group for Chicago entrepreneurs. And stay on top of Chicago business with Crain’s free daily e-newsletters.
Crain’s small-business editor Ann Dwyer is on Google+.
What keeps small-business owners up at night?
By Barry Moltz
“As a small-business owner, I sleep like a baby. I go to bed at 8 p.m. and wake up at midnight screaming my head off.” — Unknown
The latest Small Business Barometer from Western Union Payments reveals what keeps owners up at night. There are no surprises here.
1. Revenue generation: Most businesses never have enough customers. Their dreams are full of ways to keep the ones they have and get new prospects for their sales pipeline. The cure: Implement a systematic method that always has the company creating relationships with future prospects.
2. Positive cash flow. Cash flow is king. Remember that sales are vanity, cash flow is sanity. Companies go out of business simply because they run out of cash. It adds up to many sleepless nights. The cure: Understand how to read a cash flow statement. Is there more cash at the end of the month than the beginning? What items affect the company’s cash flow?
3. Forgetting to invoice a customer. The work was done, but you forgot to bill the customer (and you are surprised they haven’t paid?). The cure: Have a method to regularly bill customers either biweekly or monthly. Better yet, get paid when the product or service is delivered!
What keeps you up at night?
Barry Moltz is a Chicago-based serial entrepreneur, business consultant, marketing expert, mediator, speaker and author of several books on small-business success. Look for his advice on Crain’s blog for entrepreneurs every Monday. Barry is also a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
Listen to podcasts of Barry’s “Business Insanity” radio show here.
Join Crain’s LinkedIn group for Chicago entrepreneurs. And stay on top of Chicago business with Crain’s free daily e-newsletters.
Crain’s small-business editor Ann Dwyer is on Google+.
Why your business still needs a lawyer
By Barry Moltz
“The first thing we do, let’s kill all the lawyers” – William Shakespeare
There are days when small-business owners feel this way. Whether it’s all the legal complexities of running a business boiling over or being sued by a customer, dealing with lawyers can be frustrating. But lawyers serve many valuable purposes for entrepreneurs. Even with all the valuable resources on the web, there are five key areas where lawyers still need to be included in your management mix:
1. Incorporating a company. This can be done online through Incorporate (www.incorporate.com) or Legal Zoom (www.legalzoom.com) if something very simple is required. Multiple classes of stock will require an attorney.
2. Shareholder, partnership and employment agreements. It is critical to understand that good fences (agreements) make good neighbors (partners). When the company becomes valuable, these will be referred to often.
3. Seeking investors. This is a complicated area with many trap doors. Employ an excellent attorney for this type of work.
4. Valuable adviser. Lawyers work with a lot of businesses. They can be an important source of advice with their ability to make connections.
5. Selling the company. Lawyers need to construct a contract that provides an insurance policy for the business owner when things go right and wrong with the transaction.
In fact, the Entrepreneurship Law Center at Northwestern University helps to educate entrepreneurs and wannabe-entrepreneurs about the legal challenges that business owners and lawyers face while running their businesses. The center is holding a special seminar on March 3 that will cover the key areas.
How have you effectively used your attorney?
Barry Moltz is a Chicago-based serial entrepreneur, business consultant, marketing expert, mediator, speaker and author of several books on small-business success. Look for his advice on Crain’s blog for entrepreneurs every Monday. Barry is also a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
Listen to podcasts of Barry’s “Business Insanity” radio show here.
Join Crain’s LinkedIn group for Chicago entrepreneurs. And stay on top of Chicago business with Crain’s free daily e-newsletters.
How to build a network one business card at a time
By Barry Moltz
Most business people realize that it’s not what you know, it’s who you know. What you know may get you invited to an opportunity, but who you know will get you the business every time. Just think what you could do if you had a network of 50,000 contacts in Chicago.
Mary McFarlin, founder of Linked N Chicago, has built such a network over the last five years. In 2005, she returned from Europe to look for work and realized that she did not have a network to help navigate the business landscape and connect with people that could help in her search for a job. Mary decided to start her own network on Yahoo as a Listserv group with 150 of her own contacts. In 2007, when LinkedIn developed the “groups” functionality, she migrated her network to this social-media tool. In the past five years, it has evolved, as Mary says, into almost 50,000 members “one business card at a time.” She attributes her success to a basic philosophy of “Be the gift first. Receive second.”
Linked N Chicago’s monthly networking events for members takes this online community and brings it offline in a comfortable atmosphere to make connections and grow companies. Her plans include a new business website to be launched in March. It will enhance the group experience and provide new opportunities to the membership. These will include additional workshops,webcasts and special offers.
Check out videos from Linked N Chicago’s YouTube channel, including this interview with Ms. McFarlin, uploaded in June:
What do you think are the best networking groups in Chicago?
Barry Moltz is a Chicago-based serial entrepreneur, business consultant, marketing expert, mediator, speaker and author of several books on small-business success. Look for his advice on Crain’s blog for entrepreneurs every Monday. Barry is also a regular contributor to the American Express Open Forum.
Follow Barry on Twitter: @BarryMoltz.
Listen to podcasts of Barry’s “Business Insanity” radio show here.
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