House Republicans Hope to Remove Obstacles for Small Businesses

According to a recent Gallup poll, more than one quarter of small business owners said an increase in revenues what would be what stimulates them to hire new employees in the coming year. One in five said an overall improvement in the economy would lead them to hire, while 17 percent reported that expansion plans would cause them to create new jobs.

In essence, if the economy picks up and people start spending, small businesses will create new jobs. Consumer demand is crucial.

This week, House Republican leaders plan to vote on several bills that seek to remove obstacles to small businesses seeking capital. The proposals aim to help small businesses by lifting regulations that make it difficult for entrepreneurs for to obtain investment financing.

One bill would lift a Securities and Exchange Commission (SEC) regulation that discourages small companies from using advertising and direct mail to solicit private funding from wealthy investors. Another measure would enable investors to fund startups up to $10,000 via the Internet without requiring the firm to register with the SEC. (This would benefit companies seeking to raise capital through crowdsourcing.)

A third proposal would double the number of shareholders that firms could have before requiring that they register with the SEC. A fourth bill would boost the number of shareholders allowed for small banks to 2,000.

While these proposals aren’t enough to kick-start the economy on their own, they are a good sign that government leaders are looking at innovative ways to help small business growth. Since companies that employ 500 people or fewer create the lion’s share of new private sector jobs in the U.S. economy, the measures also may help lessen the U.S. unemployment rate.

About the Author

A frequently quoted expert on small business lending and recently named the “Top Entrepreneur of 2011” by Crain’s New York Business, Rohit Arora is CEO of Biz2Credit, which connects small business owners with 400 lenders, credit rating agencies and service providers. Since 2007, Biz2Credit has secured $400 million in funding for small businesses across the U.S. via its safe, efficient online platform.

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How Software Certified Partners Help Small Businesses

If you’ve added new software to your daily operations, you know how frustrating it is to stop everything to learn the system. Who has time to spend hours setting it up and learning all of its intricacies? Companies like Infusionsoft, HubSpot and even Google AdWords understand the pain point this causes small business owners, and they’re doing something about it.

Companies like these train and partner with consultants who can assist small businesses in ramping up on the software quickly. Infusionsoft recently launched its Certified Consultants directory, a list of partners that Infusionsoft has trained on its marketing/CRM platform.

While Infusionsoft provides substantial training and support, sometimes small businesses want more.  Kara Barney, Program Manager for the Certified Consultants program at Infusionsoft, says:

“What happens is that we just hit the tip of the iceberg in this time frame and many of our customers are super excited about the capabilities of the software and elect for more advanced ‘Done for You’ help or customizing of the software. Again, we can refer with confidence to this group of experts we consider an extension of the Infusionsoft family.”

Google recently announced its new AdWords Premier SMB Partner Program, which connects small business owners with certified AdWords partners. It’s clear that these companies see benefit to working more intimately with small business owners.

Do You Need a Certified Consultant?

If you have the time or initiative, you certainly can learn the ins and outs of any software program, but the point is: do you want to? Working with someone who has been trained in the minute details of a program may help you find new ways to use the software that you wouldn’t have found on your own.

Travis Campbell is one of the Certified Consultants for Infusionsoft. After working with different contact management software programs as a marketing consultant, he was pleased with Infusionsoft’s ability to streamline marketing and CRM functions, and now he helps small business owners implement the software. He knows his clients are strapped for time and don’t have the ability to explore all of Infusionsoft’s features on their own:  

“…some marketers have held off on moving forward with Infusionsoft because they didn’t want to implement themselves. This program solves that problem.”

For the consultants, the benefit of being trained and certified is exposure to thousands of small business clients who may be looking for extra help. Infusionsoft’s directory allows clients to rate and comment on a consultant’s profile, which can help them get more exposure. And having “certified partner” on your resume never hurts!

Many of the consultants for Infusionsoft and other platforms are entrepreneurs themselves, so they appreciate what small business owners are looking for when it comes to software solutions.

Where to Look

If you’re looking for a new software provider, check to see if the company has a network of certified consultants. Look for reviews of the provider, either on that site or others, and make sure they have the knowledge you’re looking for.

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How Many Jobs Do Small Businesses Create?

How many jobs do small businesses really create? It has been an important question in the small business community for some time now ever since Washington started touting small businesses as the engine of economic recovery. Critics hit back with some conflicting figures, but it all comes down to the way we ask the question. See more discussion of this and other important small business news and tips in our small business roundup below:

News & Trends

How many jobs do small businesses create? Depends what “small” means. The title tells the whole story. If you want to say that small businesses create most new jobs, you use the number 500 employees. If you listen to the number the European Union uses, less than 50 employees constitutes a small business. Bloomberg BusinessWeek

Small businesses lead the way in green technology innovation. SBA reports that small businesses lead the way in the use of green technology. One of the methods used in determining this is through the amount of patent activity and how much of this activity is in the green technology field. These same companies that are working in the green technology field are found to be more profitable overall. PR Newswire

Better Business

Make things happen. You can never sit back, do nothing and expect to get ahead. The only way to be successful is to make things happen. Even a good education doesn’t guarantee success. This post looks at the success of one entrepreneur who was not afraid to take a risk. You’re the Boss

“Talent magnet” reveals the truth about the new job market. In the new job market, there are new guidelines and there are new techniques to be used in the hiring process. in a small business you may have to be satisfied with 90% of what you want and trust the other 10% will fit in. Specialization is the key because more and more small businesses are looking for people who will have an immediate impact. BusinessNewsDaily

Policy & Strategy

Generous small business tax deduction is shrinking. The deduction for equipment used by small businesses is being lowered from $500,000 to $125,000 next year. This deduction can be taken up front rather than being depreciated. Further reductions in these deductions are scheduled for future years. The other deduction that is being curtailed is the bonus depreciation which allows employers to deduct more than the amount normally allowed. This is being cut in half next year. Boston Globe

Five lame excuses for a company strategy. What exactly is company strategy? The simplest answer quoted is “you know what you are doing and why.” Strategy is making choices about what you will do and what you will not do. In small businesses many heads either just have something on a piece of paper so they can say they have one or they do not use what they do have. Forbes

Tips & Tricks

Why does your small business need social media? You’ve heard the buzz and, of course, we’ve reported on it here on Small Business Trends but the question continues to be asked by many. Is social media really worth the time and effort that small businesses must put into it to create a success? Yes, say some advocates. Here’s more on how top get started. CBC News

Not really a sales person at heart? It’s common problem for many entrepreneurs, especially when starting out. Fortunately sales doesn’t have to be rocket science. Here are some pretty simple approaches for those of us non-salespeople who need to learn the ropes for our own business in a hurry. Buzz Small Business Magazine

Marketing

Getting back into the conversation. If you’re not talking to your customers, your business could be in trouble. This might be common sense to most entrepreneurs and small business leaders, but did you know that it is also important to have the right conversation at the right time? Here are some ideas to consider. Partners in Excellence

Twitter tricks to get your site noticed. It’s no secret that Twitter has become a major small business tool. But are you using this incredible microblogging platform to its full effect? Twitter can be a huge help when marketing your small business online. But you must know how to make it work for you.Birdie’s Typing Services

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Women Owned Businesses Have Come a Long Way But It’s Not Far Enough

How do women-owned businesses differ from companies owned by men? Not as much as they used to, according to a recent study from the SBA’s Office of Advocacy. “Business ownership no longer can be analyzed simply on the basis of the owner’s gender; businesses owned by women and men more and more share the same general development patterns,” write the authors of “Developments in Women-owned Business, 1997-2007.”

Between 1997 and 2007, the report found, women’s share of total U.S. firms increased from 26 percent to almost 29 percent; during the same time frame, men’s share dropped from 55 percent to 51 percent. As of 2007, the top four revenue-generating industries were identical for businesses owned by women, men, and by women and men together; they were construction, manufacturing, wholesale trade, and retail trade.

But there is still one area in which women-owned businesses differ from those owned by men: Women-owned firms were less likely to have employees. In 2007, more than 88 percent were non-employer firms.

Employment is on everyone’s minds right now, and a separate report from the Ewing Marion Kauffman Foundation, “Overcoming the Gender Gap: Women Entrepreneurs as Economic Drivers,” suggests that with the right kind of help, women-owned businesses could become drivers of employment and stimulate the economy.

The Kauffman report found some similar gaps between men- and women-owed companies. For starters, while startup companies, especially high-growth startups, are the biggest source of new U.S. jobs, only about 35 percent of startup business owners are women. In addition, their startups are less likely to grow than those owned by men: Just 36 percent of women-owned startups in the report had employees, compared to 44 percent of those owned by men.

Lesa Mitchell, Kauffman Foundation vice president and author of the report, says that while women are breaking through the glass ceiling, they seem to be encountering “glass walls” that keep their businesses from expanding. As a result, three years after startup, just 19.8 percent of women-owned businesses in the Kauffman report make over $100K annually, while 32.8 percent of men-owned companies do.

Of course, some women (and men) may prefer to keep their companies small. But for those who want to grow, what steps would help them? Mitchell says:

1.) Establishing support networks early in the startup process is one way to position your business for growth. Joining the board of a company in your industry is one way to do this.

2.) She also urges successful women entrepreneurs to become role models and mentors for younger ones.

3.) And she urges more networking and collaboration between startups and bigger, more successful firms.

Networking seems to be a common thread when it comes to helping women-owned businesses thrive. In Forbes’ latest list of the best cities for women in business, the cities that topped the list had several things in common: a supportive legal environment, government procurement goals for women- or minority-owned firms, resources like the SBA’s Women’s Business Centers, and the presence of women’s business organizations to provide networking and support.

Women are often called “naturals” at networking, and most women business owners I know are pretty good at it. But to power your business to the next phase, you need to take networking to the next level. Don’t just network within your comfort zone: Get out of it.

Depending on your business’s needs, that might mean hobnobbing with angel investors or even venture capitalists. It might mean getting comfortable at male-dominated industry events or conferences, or meeting key people at companies that are much bigger than yours. Whatever you’re hoping to achieve with your business, there is someone out there who can help you do it—but not if you don’t get out there and meet them.

Image from Christian Kieffer/Shutterstock

About the Author

Rieva Lesonsky is CEO of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Visit her blog, SmallBizDaily. Visit her website SmallBizTrendCast to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.

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6 Lead Generation Strategies for Local Businesses

Small businesses advertising in their own local market often operate under the “big local lie.” It’s common to see small business owners who have tricked themselves into believing that they don’t need to advertise at all and can rely solely on referrals for lead generation and repeat sales.

These small businesses will quickly discover that relying on referrals alone will cause them to get stuck in a growth holding pattern.

Let’s look at six ways smart local businesses can get more leads. As you can see, it doesn’t take a big marketing budget for small businesses to increase new leads and get more referrals.

1. Focus on Lead Capture—Establish a standard process for your business to capture lead information during any interaction with a potential customer. Train employees on the process and emphasize its importance for future business growth. When you’re interested in direct responses, you need to ask the right questions. You need to gather useful information that allows you to make business decisions that add up to profits. Coupons, discounts and trials are effective offers for capturing lead information in person. Forms, white papers and demos are effective ways to engage with your website audience and capture useful information.
2. Use Local SEO—Establish a Web presence for your business and optimize your website. Tools like Google Places are essential for getting listed and found online. Use the Google keyword tool to research common phrases people use to find your product or service. Make sure your page titles use those key words, and write page copy with those key words. Also, find and engage with local, influential bloggers. Build a relationship with them, or even offer to write a guest blog post twice a month. It’s never too late to get involved in social media and use it as a mechanism to drive traffic to your website. Make sure you’re using lead magnets across your social properties to capture information.
3. Segment Your Contact Database—Get the right message to the right person at the right time by tracking behavior. Monitor who visits your website, what Web forms they fill out, what emails they open and what links they click. Demographics and psychographics allow you to target your message and offering. Clearly outline the benefit your product or service offers based on your potential customer’s needs.
4. Create Partnerships—Build relationships with businesses that offer complementary products and services. Build your partner’s business into your business and yours into theirs. Make lead capture and your partner’s offering part of the entire sales and delivery process. The key to a powerful partnership is to create added value for your customers.
5. Promote Local—Local consumers want to benefit their local community. Consumers will buy local when it is convenient, when they have a relationship with you, and when they are informed. Consumers will even be willing to pay more for a product or service once they are loyal to a local business. There are numerous coalitions and organizations that support locally owned businesses, which form the backbone of the local economy. Join your local chapter of Local First and chamber of commerce to stay informed and visible to local consumers.
6. Develop a Referral Strategy—Create a methodical way to generate referrals. Outline a systematic referral process and incentivize your employees for collecting referrals. The best time to ask for referrals is at the time of purchase, shortly after a recent purchase or after a customer satisfaction survey. Caution: Never ask for a referral when a customer is not happy. Track referral volume and conversion rate month-to-month.

Lead generation does not have to break the bank. Established processes and focused execution have the power to grow and sustain a small business. To hear about more strategies for increasing local lead generation activities, check out this previously recorded webinar.

About the Author

Tyler Garns, Director of Marketing for Infusionsoft, has over 10 years of experience in the field and is a recognized expert in Internet marketing. Tyler focuses on building the Infusionsoft brand via marketing, communications and social media. Tyler blogs at the Infusionsoft Blog.

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