Mason Area Chamber of Commerce

A Smarter Business in Three Simple Steps

2012-02-16T10:51:00.000-08:00

By: Brent Barnhart on Sunday, January 29, 2012
chamberofcommerce.com

We're always trying to find bits of knowledge here and there to make ourselves a little bit wiser. Why can't we adapt the same attitude for our small businesses? As businesses continue to suffer a seemingly uncertain economy, it's not surprise that only the strong will survive. Such survival will come to the business that makes wise choices and looks before it leaps. We've detailed three smart business strategies that will pay off this year based on what we've learned from the trends of the year prior. Start this year off right by starting off smart.

Smarter Selling

When we talk about “smart selling,” we're not talking about selling at the best product or selling the absolute best product. In fact, it's not much about “selling” at all. It's about giving something away for free.

How does giving something away for free equal smart selling? Because free trials and free products result in profit. There are a number of products and services out there today that are seeing huge returns by “giving a taste” to the public for free and saving the best features for paid customers.

Consider the new streaming music service Spotify which just saw its release in the United States last year. The service offers a massive music library of just about anything you could imagine, available to you absolutely free. The paid version of the application removes the occasional commercials and allows you to access the service on your phone in addition to your computer. Once the customer has had a taste of the paid service, it'd be quite difficult to go back to the free version. Spotify knows this and offers a free trial of the paid version for one month. If you offer your customers enough value, they'll want to hang on to your product.

Free applications and software are immensely popular and for good reason; there's no barrier to entry. If you can offer something up for free to your customer base this year, do it. If you're selling a more concrete product, this may seem like a difficult task. Don't be afraid to get creative. There are always ways to harness the power of “free” that will help you out in the long-run and result in sales.

Smarter Social

Speaking of free, you can't talk much about “free” and “small businesses” without Social Media coming up as a buzzword. To some companies, however, Social Media is anything but “free.” It's not uncommon for companies to have Social Media specialists these days, and pump tons of cash into campaigns that result in few or no long-term customers. Letting cash slide down the drain isn't smart. So what can you do as a small business owner?

Once again, harness the power of “free” and sell smart. Don't get caught up in the sexiness and hype of Social Media; do what works for you and your business and only spend the time and money necessary. In fact, a smart social strategy can be done by yourself for absolutely free. No gimmicks, no “experts.” How?

Facebook? Free. Twitter? Free. Google Plus? Free. Analytics? There are free options.

Now, how much is your time worth? What about your “free” time? You can integrate a smart selling strategy with your social strategy by giving something away for free. But we're not talking about products and services here; we're talking about content. Producing and distributing content about your business and industry through Social Media and blogs is invaluable. Why? Because it spreads the word about your business and helps you and your business get found through the major search engines. It could take some advice and expertise to fine-tune your strategy, but you don't need to hire a specific “expert” or pump a bunch of money into campaigns.

Test the waters of Social Media before diving in and see what you find. Have a plan. That's what “smart social” is all about.

Smarter Sustainability

A final way you may make your business smart this year is by investing in sustainability. This may seem somewhat off-topic, but more and more businesses are getting on board and for good reason. Customers are becoming more and more eco-conscious and want the businesses they frequent to do the same. It's another way that you can win over a new customer base, meanwhile also doing good for the environment. There's no better time to start than now.

Make your sustainability goals clear and take them one step at a time. Flying blindly and trying to overhaul everything in your office to be eco-friendly simply won't work. Take small steps. Consider your building's lighting. Shipping supplies. Paper usage. Tackle these obstacles one-by-one and you'll make sure to get them done and not put yourself in financial ruin in the process. It may seem daunting, but your efforts will pay off in the long-run, either to your wallet or in the eyes of your customers.

Choose to be the “smarter” business this year. Don't be afraid to take risks, but make sure to look before you leap. Be optimistic, but also be mindful and cautious. It's a tough climate for small businesses out there right now, and only the smart may survive. Will you be one of those survivors?

Your Extreme Makeover

2011-12-29T10:35:00.000-08:00

Your Extreme Makeover

By: Tony Rubleski, Mind Capture

At the end of each year, before I set my annual goals for the upcoming year, I take stock and look back on what I’ve learned, good and bad, in the preceding year. I can tell you that 2011 was a wild year full of many closings and promising new beginnings within my own life.

This ability to self-reflect is powerful, yet so few people do it consistently beyond a few New Year’s resolutions that are often broken or forgotten within 2-3 days into the New Year.

To help inspire and keep you motivated long beyond the first week of January, I’ve included a ‘Mind Capture Nation’ favorite from the article archives written six-years ago that I’d like to share with you as we wrap up the final days of December. Enjoy!

What if you had only one day to live?

What would you do? Who would you call? What would you say to those you love and trust the most? These are heavy questions, but I encourage you to stay with me and read onward.

I’m often baffled by how unhappy most people seem these days. I use “seem” because far too many people let others dictate their attitude and outlook on life. When you wake up each day, ask yourself this simple yet profound question: what am I thankful for? By asking this, you’ll quickly develop a habit of building positive energy and productive thoughts.

I’m not Dr. Phil or Oprah by any means, and I’m thankful to be who I am. While these two people are wildly successful and living life fully engaged and at full throttle, I can’t imagine how plain and routine the world would be if we were all exactly like them.

In the business world, where I spend most of my waking hours, I often find the most successful people have three common characteristics from which we can all learn from and apply to our everyday lives.

#1. They are problem solvers, not complainers. For every problem they solve, they are aware that new ones can quickly sprout up like weeds. These successful people look at problems as temporary roadblocks that are a natural part of life. The key difference with them is that they ask positive questions to solve the issue at hand.

Most people would rather give up, complain or simply turn around and ignore the problem. Winners know that this is not a productive or solution-based strategy to employ.

#2. They strive to learn and improve each day. School is never out for the pro. Each day is a new world of people, experiences and knowledge from which to learn and gain perspectives. In life, not everything stays the same; change is the only constant. Stability is a good thing, yet to ignore the changes and new information is to live in a perpetual state of denial.

#3. They realize the present moment is valuable and not to be wasted. Yesterday is in the past, and tomorrow is only a dream. Time is finite and cannot be replaced. Each day they strive to get better, serve others and live life to its fullest.

These three characteristics share an important commonality: the ability to take life one day at a time and treasure the importance of each new sunrise. Planning ahead is necessary, but taking action each day is central to making gradual and long-term positive change a reality.

In closing, I’d like to issue a challenge: imagine that each day could be your last. Again, arise each day by giving thanks and counting your blessings, not your problems. Build momentum to help yourself and those around you.

The world has a never-ending need for your skills, talents and leadership abilities. It would be a tragedy to live most of your life regretting the past or endlessly thinking about your future. Spend more of your precious time on today.

Yours in Success,

PS. If you know someone who would benefit from the Mind Capture E-Letter send them to www.MindCaptureNews.com

2012 Social Media Business Trends

2011-12-08T11:34:00.000-08:00

Is Social the Future of Business?

by Cheryl Burgess

As the end of the year draws near, it’s time to start looking at social media trends for 2012. Businesses should get ready for seismic shifts on the digital landscape.

Competition will intensify as the rules of marketing are further altered by social media, mobile web and all in real-time. For businesses that don’t start embracing social media, 2012 may mark the beginning of their declining growth and profit.

According to Nielsen’s “The Social Media Report,” social media use is commonplace, with over 4 to 5 Internet users engaging in social activity across a wide variety of platforms. Social networks and blogs are the top online destinations, accounting for 23% of time Americans spend online. Pew Internet and American Life Project’s August 2011 report states that nearly two-thirds (65%) of all adult Internet users now use social networks. The skyrocketing growth of social media has broad implications–beyond consumer behavior.

While some businesses are evolving or even transforming how they buy and sell products, many are fast becoming social businesses. In a Fast Company article by Drew Neisser, “Move Over Social Media; Here Comes Social Business” he explains the reasons why every company should be thinking about becoming a social business. According to Neisser, IBM is moving themselves and their clients “well beyond social media into a new era of collaboration, insight sharing and lead generation it calls social business”.

One of the hottest business social trends in 2011, leveraged by both large and small size businesses, has been social commerce. Social Commerce is essentially word-of-mouth applied to e-commerce. According to Brian Solis, “Social Commerce is rising quickly, but this isn’t a story about technology, it’s a story about how and why people make decisions.” Take a look at this amazing Infographic Social Commerce Timeline created by Useful Social Media that depicts the evolution of this new process. Social Commerce is redefining the way brands and consumers interact.

One of the best examples of Social Commerce is the mobile YP.com app which lets you share deals with family and friends via Facebook, Twitter, email and SMS. According to David Williams, vice-president of product management at AT&T Interactive, “Gas is just one of many everyday essentials where a few simple factors: location, price and brand, brought together in a thoughtful design can help direct users toward smarter choices and quicker decisions.”

The process for migrating from social media to social business will vary depending on the nature, size and strategy of your business. But you should be aware of some of these emerging social trends and tools as you consider how to capitalize on opportunities and achieve your business goals.

So what are the social media trends for business in 2012 for….[building communities, brands, mobile, etc.]? I posed this question to several industry experts (crowdsourced the community) and here is what they had to say:

….for building communities?

Jason Falls (@JasonFalls), author of No Bullshit Social Media: The All-Business, No-Hype Guide to Social Media Marketing and CEO of Social Media Explorer.

“Businesses are more and more looking at social media marketing as a strategic business driver now, so you’ll see a lot more insistence on accountability, measurement and quantification of what social media means for companies. From a community building standpoint, that means community managers are going to be challenged to delineate the value of those community members versus non-community members, make logical arguments for why and how a community’s growth is positive for the business and illustrate how they affect the bottom line revenue of a company. It’s going to challenge many to think beyond the comment, like and fan. But it will make us all better.”

…for mobile?

Chuck Martin, (@ChuckMartin1) CEO, Mobile Future Institute and Director, Center for Media Research, MediaPost. Author of the Third Screen: Marketing to Your Customers in a World Gone Mobile

“In 2012, mobile will move to center stage in social, as everyone has a phone, with close to a majority of those being smartphones. Location-based messaging between people, and especially between people and businesses of all sizes, will increasingly be initiated by individuals as they tap into their personal networks and networks of those around them to seek and share information. Besides being highly personal, mobile will become the social conduit.”

…for customer service?

Porter Gale, (@portergale), Marketing Consultant

“In 2012, more companies will consider use of social monitoring and analytics to help them understand sentiment, key influencers and the types of people chatting about their brand. In addition, growth of the social space will raise the importance of dialog between customer service groups and social media teams. This improved collaboration can lead to an integrated plan to better handle inquiries via the various channels.”

…for crowdsourcing?

Peter H. LaMotte, President, GeniusRocket, Inc.

“2012 will be the year that “Crowdsourcing” stops becoming a buzzword and starts becoming one of the most cost effective ways for small to medium sized business to engage their stakeholders. The term too often associated with contests, is actually a reliable means of message virality and real-time engagement. Marketing, customer service, sales, and PR can all be given a huge boost through the use of their crowd, especially via their social media platforms.”

…for small businesses?

Jim Joseph (@JimJosephExp), President of Lippe Taylor, Author of The Experience Effect for Small Business

“Biggest trend in social media for small business? One that has already started but now many are getting the fruits of their labor: networking. Finding each other to share stories and learning. Finding talent to join the business. Finding prospects to try to convert to customers. For networking, social media is the small business owners’ best friend.”

…for retail?

Doug Stephens ( @RetailProphet) President, Retail Prophet

“With the advent of in-network apps like Spotify, Hulu and Netflix directly within Facebook, users are going to rapidly gain a sense of comfort with the idea of Facebook as a marketplace. In 2012, the trend will be toward the addition of other non-digital shopping apps on Facebook, allowing consumers to literally buy goods and services directly from their Facebook Timeline. Things like gym memberships, vacations, cleaning services and more will become available on Facebook.”

…for B2B?

Billy Mitchell (@BillyMitchell1) Billy Mitchell- MLT Creative, Partner/Senior Creative Director

“2012 will further separate the pretenders from the purposeful. B2B marketers that don’t take ownership of social media as part of a strategic inbound engine will be an endangered species by the end of 2012. Small businesses will realize Social Media is far from free and the trend will be serious budget increases for creating content, automating tools, and the human resources to sufficiently scale engagement with their marketplace.”

…for technology?

Scott Brinker, President and CTO of Ion – Author of Chief Marketing Technologist blog

“In 2012, marketing technology will continue to converge. We’ll see social media features embedded into more products, from CRMs and marketing automation systems to web content management and landing page optimization platforms. These technologies that reach deeper into the customer experience lifecycle will reveal more nuanced metrics for tying social influence to business value. Likes, follows, and +1′s will be more meaningful in the context of specific customer experiences rather than an abstract performance measurement unto themselves.”

…for marketing?

Michael Brenner (@BrennerMichael) – Sr. Director, SAP Global Integrated Marketing – Co-Founder of Business 2 Community

“’The social media trend for business in 2012 will be less media or marketing and more social. Social media will move beyond marketing, PR and customer service and will become an extension of an entire businesses employee, customer and partner base. Real-time response management, tracking and alerts will be the tools of choice. Response managers will be on the hiring plans of many more companies and social selling will begin to become a reality in many more organizations. In effect, we will start to see businesses truly engaging with the market in a people-to-people model.”

…for advertising?

Michael Ancevic (@mancevic) Senior Vice President – Creative Director at Mullen

“Social media is truly now the mainstream media. So one of the big trends next year is that social will continue to become nearly everyone’s primary source of content and interaction. Because of this, we will see early adopters who have learned along the way to make their advertising content relevant and interesting finding that it becomes easier and easier to ride this trend and get their customers to pass content along for them. Of course like any successful marketing campaign if that content accurately reflects the strategic business objective, it’s a huge win with positive long-term implications.”

…for PR?

Wendy Marx, (@WendyMarx) President – Marx Communications

“Social Media for PR is evolving from a listening post and ratings game to a strategic tool that provides insight and analytics into customers, prospects, competitors and thought leaders. Never before have PR practitioners had the opportunity to gain real-time insight into customer, prospect and competitor behavior and be able to shape conversations based on that data. We will see more data crunching and analysis and more strategic and targeted responses. As more and more content moves to mobile, we will also see more creative uses of content, more app development and more use of the comment function for thought leadership. New forms of press releases optimized for mobile readers will evolve. PR will also embrace new types of content marketing geared to mobile. All in all, it will be a productive time as PR rises to meet the technological opportunities.”

Is Your Business Ready to Evolve?

2011-11-03T06:33:00.001-07:00

From: www.chamberofcommerce.com

By: Jennifer Hice on Tuesday, October 25, 2011

For many small business owners, the terms rebrand, reinvent and redesign may as well be evil, four-letter words. However, the world is constantly changing, and as such, a business should be built to evolve in such a way that they can weather the storm. Change is always going to be difficult and will cause even the most successful entrepreneur to experience a burning case of anxiety. Yet, one’s ability to adapt is absolutely necessary in order to foster and sustain growth, both personally and professionally. While the idea of dismantling and rebuilding a brand you have spent years creating may sound like the worst idea of all time, doing so could mean the difference between watching your company fail and seeing it continue to succeed. When done correctly, rebranding can be the very change needed to spark new life back into your business. In fact, there are always going to be reasons you need to adjust and tweak your business plan. After all, a business’ brand is its identity, and as strange as this may seem, it has a certain personality, or life, of its very own. As such, it could easily perish if left stagnant and unchanged for too long. A successful brand has the ability to evoke a positive response in its audience. So, given the limited resources and capital you may be managing as a small business owner, how do you remain on top amidst this ever-changing economic climate and corporate environment?

Businesses change for a number of different reasons, including advances in technology, an increase in competition and the like. Consider the introduction of the Internet for a moment. The web has dramatically transformed the world of business marketing and communications as a whole. A business’ ability to reach out to their current and potential customer base is virtually limitless. Moreover, in today’s technology-driven environment, information about you and your company is available on demand.

For example, let’s say that you own a small dry cleaning business. You’ve always had a fairly steady stream of regular customers, until a chain store, offering discounted dry cleaning services, opens in your area. There’s no question that both your level of service overwhelmingly outshines that of your new, corporate competitor. However, ABC Corporate Dry Cleaning utilizes a number of different technology-based communication platforms in order to drum up and even steal your business. For instance, they utilize Facebook, Twitter and LinkedIn to frequently post status updates featuring coupons and perks for new customers, establishing a relationship with the very customers you are desperate to reach. Also, they’ve written the content on their website in such a way that it is now “optimized”, allowing search engines like Google and Yahoo to recognize their site’s domain name as a credible and valuable. This credibility prompts Google to rank your competition’s website above your own when search results are displayed. With just a few quick strikes of the keyboard, a potential customer has already found and interacted with your competitor. I know what you’re thinking…Not cool, Google. Not cool! So, make Google work for YOU instead! Take a moment and research the term, Search Engine Optimization, or SEO. Read more about the simple and affordable things you can easily do to help your business remain relevant, searchable and competitive.

Also, consider the recent commoditization of cell phones. A large percentage of the population now communicates almost exclusively using their smartphone. Gone are the days that business use flashy and expensive direct mail pieces to capture the attention of their target audience. Today, companies are reaching out to consumers with text messages, e-mails and smartphone-friendly applications that can load fully functional websites with just a tap on a touchscreen. It’s incredible. Regardless of the size of your business, there are so many ways in which you can take advantage of technology and make it work in your favor. It doesn’t have to be expensive or elaborate. Let’s use the example of the dry cleaning business again. Remember, you run a small, family-owned dry cleaning business that’s been serving the local community for almost 10 years. So here’s an idea…when people come in to drop off or pick up their garments, ask if they’d like to receive coupons and information on weekly specials via email. You’ll be amazed by how many people will gladly opt-in to receiving your messages. Before you know it, you’ll have your very own e-mail distribution list. Moreover, your customers will feel as if they are receiving valuable and relevant communication pieces from your business. You’re will not be deemed “junk” mail. You’re 10 percent off e-mail coupon will be saved, printed, utilized and appreciated. Plus, in today’s economic climate, many consumers select their service providers based not only on financial value, but also on how valuable they feel as a customer. As a small business owner, you are truly the backbone of America’s economy. You employ locally based employees, and your business supports the local community. You’d be surprised to know how many consumers will go out of their way to support you, wanting you to succeed. Just be sure you’re giving them the chance to do so by continuing to adapt and evolve in such a way that you’re able to communicate effectively and remain accessible.

Another way to ensure your business survives the rough seas of change is to focus on your existing customer base. They are your “bread and butter,” so don’t lose them! Customer retention and satisfaction is key! Think about creating and providing some value-added products or services, expanding your current offerings. For instance (using the dry cleaning business example again), you could develop a safe and cost-effective way to provide 24-hour drop off and pick up service for your customers. You could create a Refer-a-Friend Rewards program. You could even develop a VIP Program, providing customers with a unique and fun way to earn their way to achieving Bronze, Silver, and Gold status based on frequency of visit or dollars spent. Don’t be afraid to take calculated risks and expand the vision of your business. Sit down, brainstorm and develop new and interesting ways in which you can engage current and potential consumers. Network with the local business community and strategic partners in order to foster an environment of mutually beneficial growth and support. For example (yup, another example using the dry cleaning business)…your store is located next to a popular clothing boutique, heavily frequented by local shop-a-holics. Business idea: Why not partner with said boutique, which happens to sell many items that are dry-clean-only, and have them staple a coupon for cleaning services to their customer’s receipt at the time of checkout?

It really doesn’t take a lot of extra time or money to keep your business thriving. Maximize your resources. Ride the winds of change on to new horizons, rather than allowing them to knock your small business down. In today’s ever-changing business environment, adaptability is key. Embrace change…make it work for you, rather than against you!

The Small Business Balancing Act

2011-10-19T10:26:00.001-07:00

By: Jennifer Hice on Sunday, September 25, 2011

From: www.chamberofcommerce.com

By definition, America’s small business owners are self-employed, sole-proprietors, contract employees, freelancers and the like. They do not have the luxury of running to the human resources department to ask a question about their health insurance. They are the human resources department. They can’t simply submit an expense report to the accounting department for processing. They are the accounting department. They don’t call the marketing department when they need a new sales brochure. They are the marketing department. It’s no secret that in order to succeed, small business owners must possess the ability to wear all of the hats necessary to keeping their business afloat.

As the owner of a freelance writing company, I can easily shift from researching content ideas and completing a project, to balancing my quarterly budget and submitting my estimated taxes to Uncle Sam. As a creative writer by trade, I am happy to admit that crunching numbers is simply not my strong suit, yet as a business owner, it’s still a hat I must happily wear. Little did I know that when designing my business cards using a free website, that I should include the additional titles of Marketing Director, Sales Director, Creative Designer, Web Designer, Accounting Manager, Computer Tech and Customer Service Representative below the Owner and Principal Writer section of my card! Managing multiple job functions can be overwhelming amount of work at times, several elements of which are often outside the scope of my preferred areas of focus and expertise. However, the additional responsibilities provide me the luxury of additional freedom, greater flexibility and larger opportunity for growth. The trick, however, is finding a way to juggle the ever-expanding list of duties and creating a method by which to tame the madness. Striking a reasonable and attainable balance is the key to success.

First, it is important to take an “inventory” of all the current duties you’re managing on behalf of your business. This includes both your income-generating activities (providing your service, selling your product, business development, etc.), as well as your operational tasks (accounting activities, filing insurance claims, etc.). Once you’ve compiled a list of duties, it is fairly simple to identify attainable goals within each category. For example, when creating my own list of business-related tasks, I set a goal regarding my accounting duties. I created a reminder on my calendar to input my expenses into QuickBooks at the close of each month, a goal which is both attainable and helpful, especially when it’s time for me to review my quarterly numbers. Just like anything in life, a little organization and some realistic goal setting can go a long way.

Second, it is incredibly important to set aside equal time for working “in” your business and for working “on” your business. For instance, it’s incredibly easy for me to get sucked into a writing project. I can spend hours refining my words, researching clever new angles for a piece and the like. However, while I’m spending valuable time writing (working “in” my business), I often neglect vital tasks like responding to client e-mails (working “on” my business), which will ensure the continued growth of my company. I need to make a point to take a few moments out of each day to engage with current clients, to research potential new opportunities and to set new client meetings on a regular basis. While my talent for writing may be the “bread and butter” of my business, my skills are rendered useless if I don’t have any projects or new clients in the pipeline.

Speaking of new clients and project pipelines, no matter how large your portfolio of clients and no matter how promising your sales projections, always remember the importance of customer service. Maintaining strong, meaningful and one-on-one relationships with your clients and/or customer base is essential for the long-term success of your business. People do business with those they trust, those they like and respect. If you lose that personal relationship, you run the risk of losing the customer all together. Remember, maintaining this relationship is not as cumbersome as it may seem. Small, genuine gestures, like a handwritten ‘thank you’ note can go a long way.

As your client / customer base begins to flourish and business grows, you may also begin to contemplate hiring employees. If this is the case, be sure to take a close look at the various aspects of your business and identify those tasks you enjoy, as well as those you would prefer to hand off. For instance, my time is better served forging relationships with new clients and completing writing assignments than it is managing the accounting activities of my business. That said, before I impulsively hire someone to take over the accounting functions of my business, I have to analyze my current budget to see if the expense of a new-hire is even feasible. The numbers won’t lie. If I can’t afford to bring additional help on board, then I’ll get to enjoy another year of managing my own books. However, if I can still remain in the black after hiring a full-time or even a part-time employee, making such a move could ultimately provide me the additional freedom to take on more writing projects, which ultimately yields an increase in revenue.

Despite the sometimes comical need for small business owners to be skilled in the art of juggling, the ability to run a successful business, effectively and efficiently, is incredibly empowering. Moreover, for the small business owner, the phrase, “I’m bored,” is essentially impossible to utter. The ability to perform multiple job functions across a variety of disciplines affords small business owners the unique opportunity to make their dreams of success become a reality…on their own terms and at their own pace.

The Shift Towards Self-Employment: America’s New Economy

2011-09-09T11:10:00.001-07:00

From: chamberofcommerce.com

By: Jennifer Hice on Thursday, August 25, 2011

America’s independent workers, otherwise known as the country’s small business owners, freelancers, contractors and consultants, account for approximately 31 percent of the total labor force in the United States. Not only are the contributions of this ever-expanding group of individuals essential to rebuilding the nation’s economy, their ability to thrive is contingent upon much-needed changes to current legislation. At present, federal and state labor and tax laws favor big business and tend to place heavy burdens on the backs of America’s small business owners. Given the obvious necessity for small businesses to succeed, why then are the more than 40 million Americans who are currently self-employed struggling to stay in the black, even when business is booming? Simply stated, it’s time to repeal the outdated regulations that continue to stifle their growth and hold them back!

First and foremost, it is important to understand that as a nation, we are functioning within an extremely obsolete employment system, one that finds its roots in the 1930’s, a time in which companies were forced to offer healthcare, pensions and other benefits in order to retain its workforce. Today, this outdated system is hindering more Americans than it is actually helping, and a growing number of small business owners and up-and-coming freelancers are left unprotected, overtaxed and unable to thrive. Within the past decade, the United States has experienced a massive shift towards self-employment within its workforce, a trend which suggests that the country’s economy is becoming more mobile and decentralized. In fact, close to one-third of the country’s workforce is now comprised of self-employed freelancers, contractors and consultants. While the nation’s workforce structure has changed dramatically, its federal and state laws regarding matters of business have remained the same. Dated legislation has left the self-employed, a sizable segment of the U.S. economy, unable to take advantage of crucially important protections and benefits routinely enjoyed by “traditional” employees working for larger corporations.

At 42 million-strong and growing, the nation’s freelance workers have the unique ability to influence important legislation essential to their success. Their ability to thrive is contingent upon necessary changes to tax and labor codes, which are currently impeding their growth. The self-employed are, in effect, bearing all costs and risks that were previously shouldered solely by larger companies. Consider this scenario: Amy and Christy are both accountants, both of whom have earned the same undergraduate degrees and certifications necessary to provide the same services to their clients. However, Amy is employed by a large accounting firm, while Christy, who was recently laid-off due to corporate budget cuts, is now self-employed and offers her services as a freelance consultant. According to the IRS, consultants like Christy earn, on average, about a third less than people in similar positions employed by larger companies. In fact, the self-employed contractor, Christy, is responsible for paying both the employer and the employee portions of Social Security and Medicare taxes, totaling approximately 15 percent of her total income. Moreover, as an independent worker, she is unable to receive unemployment insurance or file for worker’s compensation. Worse still, Christy is taxed as if her small company was a medium-sized business, yet she cannot write-off health insurance premiums or other reasonable business expenses that larger corporations deduct with ease. All the while, Amy, still offering the same services at the same level of skill, enjoys the protections offered by her corporate employer, complete with affordable health coverage, a tax-exempt 401K retirement savings plan, as well as many other benefits associated with her employment. What incentives, assurances or protections does Christy have to ensure her ability to remain solvent or even make it out of the red all together?

In an economic climate that no longer revolves solely around an employer and its employee, America’s independent, self-employed community desperately needs the same basic securities currently offered to large businesses. For example, freelancers must be able to buy unemployment insurance in order to stabilize their income. They must also have a way to legally protect themselves from late or unpaid payments from clients. Most importantly, they MUST have access to affordable healthcare. In fact, this particular need is the subject of one of the largest and seemingly most insurmountable hurdles for America’s self-employed community. Freelance workers are often unable to afford staggeringly high healthcare premiums, and even now, despite the promise of healthcare “reform,” access to quality, reasonably priced coverage continues to elude the average contract employee.

So, what can be done to ease the burden currently placed on the backs of America’s self- employed? Well, for starters, Congress should restore the Small Business Jobs Act that was passed in 2010. The legislation, which expired at the end of last year, allowed freelancers to fully deduct the amount of their healthcare premiums, before assessing Social Security and Medicare taxes. Additionally, it would be wise to amend labor laws in order to provide consultants with legal recourse through which they can pursue issues of non-payment for services. Such an amendment would provide much needed relief for freelancers, shifting the burden of proof away from them and on to the company from whom they did not receive payment. Moreover, it would be wise to encourage cities to postpone or even eliminate unincorporated business tax for contractors, especially during the beginning stages of their new business venture.

It is clear that the economic future of this country rests in the hands of its small business owners, its entrepreneurs and its up-and-coming self-employed communities. This self-starting group currently generates the largest source of new job creation in the nation today. In fact, their positive influence on the job market will only continue to rise in the coming years. Supporting and strengthening their ability to function and thrive is paramount to economic recovery. More importantly, helping small business owners and freelancers build a strong and viable foundation for their start-up businesses will ultimately allow them to grow, creating more jobs along the way. The strength of America’s capitalistic system is based on the premise that anyone with a good idea and a willingness to work has the opportunity to succeed! To those who are currently self-employed, know that you are a catalyst for change. Defeat the odds and continue to save this nation’s economy, one successful small business at a time!

Keeping Connected in a Mobile Business World

2011-08-19T09:21:00.000-07:00

From: chamberofcommerce.com

By: Javi Calderon on Sunday, August 07, 2011

Keeping the Company Connected in a Mobile Business World:

There is no question that today’s business landscape calls for businesses to be flexible and mobile. With more work getting done outside of the office, the demands on a company’s communications systems are higher and more diverse than ever before. In any competitive business environment dependable communication is a must.

Data and voice service providers have developed a myriad of solutions to meet the ever-growing and unique needs of their customers, aiming to provide communications solutions that help expand a business’s capabilities instead of constricting them.

Certainly, the days of rigid job descriptions are over; instead of focusing on one task, employees in today’s businesses are constantly asked to coordinate with different groups, colleagues and clients on a variety of projects -- and they rely on communications tools that are as adaptable as they are.

As much as the Internet may be one of the underlying causes of this shift to mobile business, it is also the tool that has allowed the telecommunications industry to keep up with (and facilitate) the mobile worker. Innovations like broadband Internet, and VoIP (voice over Internet protocol) provide companies from micro businesses to billion-dollar corporations with reliable service, a litany of useful features to help them stay connected, and flexible options to fit the solution to the need.

For example, the innovation of cloud computing can be used to simplify IT processes -- in order to free up man-power, do more with fewer employees, or simply reduce costs -- or as storage for company files: as a backup or a way to grant mobile workers with access to necessary documents.

In terms of flexibility, not only does VoIP provide a long list of features like conference calling, virtual receptionist, and “follow me” features, but it even allows for business owners to chose whether they would like to have the service connected through their old phone systems (integrated voice service) or replace them with one that will be fully managed and maintained by the service provider (hosted voice service).

If efficiency and flexibility are the keys to business success, they begin with reliable and responsive communications and equipment. The business world is a battle of the survival of the fittest, the only way to succeed is to adapt and evolve.

Will Google Plus Be the New Small Business Frontier?

2011-07-27T11:36:00.000-07:00

From: chamberofcommerce.com

By: Brent Barnhart on Wednesday, July 20, 2011

Small businesses owners are often pulled in many directions when it comes to how to market their business online through Social Media. We’ve heard about how Twitter can help you engage and acquire new customers. We’ve been told the importance of getting into peoples’ Facebook feeds. We understand how LinkedIn helps small businesses network and create new partnerships. The Social Network as we know it seems incredibly diverse with lots of moving pieces.

Yet now it appears that the game has changed thanks to Google.

With the release of Google Plus, there’s a whole new component to the social web that will inevitably have a lasting impact solely because it belongs to Google. Realizing that Google represents the king of search and the cornerstone of how businesses get found online, what will their Social Media platform have in store for small businesses? Will the king of search also become the king of social?

Regardless of what we don’t yet know, we do know that Google Plus is here to stay. The numbers don’t lie; with over 10,000,000 users confirmed within the first two weeks of release, there’s no denying that people are strongly interested in what Google has to offer in the social space. Those numbers are doubly impressive when you take into consideration that the service is still invitation-only.

There’s great speculation that Google Plus will emerge as the ultimate Social Media content-sharing platform. Businesses more or less cater their websites and content specifically to what works best in the eyes of Google in order to increase their search rankings. Now that Google have presented us with their own Social Media platform, we can only assume that Google Plus will play a role in search engine ranking factors as well. As experts have been racking their brains to figure out the importance of links on Facebook and Twitter for years, we can also assume that content and links shared on Google Plus will have significant impact on search rankings as well.

But as the game continues to change, we can only assume. Content marketers are still experimenting with Google Plus in its early stages, but small businesses should definitely take notice. If you’re blogging or producing content for your business, look into Google Plus as a platform to begin sharing.

Speaking of sharing content for your business, there’s one very noticeable aspect of Google Plus; there are no business-specific profiles…yet. Google is, as of now, discouraging businesses to get on board immediately but have assured the business community that something is coming from them.

What exactly that something is remains up in the air, yet Google Plus’ Product Manager, Christian Oestlien, claims that Google understands that their “product as it stands now is not optimally suited” to the needs of businesses. Oestlien further elaborated in a recent video, explaining what businesses may look forward to including “rich analytics” and possible integration with Google AdWords. Such integration is seen as having huge potential for both Google and businesses utilizing pay-per-click advertising, as AdSense ads have been unable to reach Social Media users on Facebook and Twitter. The Google Plus business platform is supposedly scheduled to be released later this year.

Yet a huge hurdle for Google Plus remains, both in the business and consumer world; incentivizing users to come and join. Many people have already spent years growing their followings on Twitter and Facebook, and for a business to attempt to take one or both followings into a whole new Social Network is a rather daunting challenge. This holds true for consumers as well, who’ve invested hours and hours to finding and reconnecting with contacts through Facebook. What’s going to make people move to Google Plus? Businesses may surely be incentivized to join so that they may be part of “the next big thing,” but what about consumers? The initial buzz is impressive, but will the following continue to grow at such a rapid pace? Likewise, will either Twitter or Facebook take a hit as users find it difficult to manage so many different Social Media platforms?

Businesses have committed a lot of time, effort and research into sharpening their Social Media strategies. Google Plus is definitely throwing a wrench in the machine, and businesses may have to really rethink their social strategies in order to succeed. We’ll see later this year what Google Plus offers directly to small businesses, but the future is looking bright as Google appears to be focusing ample time and energy on making sure that businesses get an optimized social experience. Time will tell whether or not Google Plus will dominate the Social Network, but small businesses will surely be taking notice as the platform continues to evolve.

Small business borrowing surges

2011-07-14T08:36:00.000-07:00

By Ann Saphir REUTERS

(Reuters) - Borrowing by small businesses rose at a record pace in May, data released by PayNet Inc on Thursday showed, a sign that economic growth is poised to pick up in coming months. The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to U.S. small businesses, rose 26 percent in May from a year earlier, PayNet said. The index is now at its highest since July 2008, two months before the collapse of Lehman Brothers and the near derailment of the world financial system.

Borrowing by small businesses is seen as a harbinger for the broader economy because they account for as much as 80 percent of new hiring. The loans PayNet tracks are typically used to buy or update plants and equipment. The Federal Reserve has kept rates near zero since December 2008 to try to pull the economy from the worst downturn since the 1930s.

Last week Fed officials reiterated their promise to keep rates low for an extended period, but predicted a slower-than-expected Spring would give way to faster growth later this year. Dallas Fed President Richard Fisher on Tuesday said he expects 4 percent growth in the second half, more than twice the 1.9 percent pace in the first quarter.

Thursday's data on small business borrowing bears up that optimistic view. Changes in the index typically signal developments in the overall economy two to five months in advance. "If small businesses are taking these kind of chances, taking risks, making long term investments, they are seeing some long-term opportunities on the horizon," PayNet founder Bill Phelan said in an interview. "That's got to be a big positive sign for the economy."

Separate data also released on Thursday showed small business loan defaults at their lowest in five years, tying records set in April and May 2006. Accounts in moderate delinquency, or those behind by 30 days or more, fell in May to 1.95 percent from 2.06 percent in April, PayNet said on Thursday. Accounts 90 days or more behind in payment, or in severe delinquency, fell to 0.59 percent in May from 0.63 percent in April.

Banks with improving asset quality outnumbered banks with deteriorating asset quality by four to one, Phelan said. Accounts behind 180 days or more, or in default and unlikely to ever get paid, fell to 0.75 percent of total receivables in May, from 0.77 percent in April, according to PayNet, which provides risk-management tools to the commercial lending industry.

Diversification: One Path to Increasing Revenue

2011-06-30T11:15:00.000-07:00

FROM: SBTDC

- Nancy Boese, Growth Group Consultant –

Companies have different stages of development and the decision to diversify into new markets or new products can be daunting. Several situations provide indications a company may be ready to diversify. Companies should consider diversifying for any of the following reasons:

One customer exceeds 50% of the total revenue
One industry exceeds 50% of the total revenue
Company has reached a plateau in sales and the market is saturated
Company has reached a plateau in sales and opportunities are available in new markets
Company has excess cash and can purchase a business to expand its markets

Many options exist to solve these situations. One factor to consider is the level of risk the company is willing to take for diversification. A renowned business tool, the Ansoff matrix (below), identifies the options for expansion and the related level of risk.

The Ansoff Matrix provides four options for diversification:

Market Penetration: The company increases revenue with existing products in existing markets. The intent is to increase its market share.
Market Development: The company sells existing products to new market segments.
Product Development: The company develops new products/services to sell to its current customers.
Diversification: The firm grows by developing new business opportunities with new products for new markets.

There is risk involved with each quadrant also. The Market Penetration quadrant with existing products and existing customers is the least risky, takes the least amount of money, and provides the quickest results. The highest risk section is Diversification. This area takes the longest to develop, requires extensive investment of time, people, resources, and money. The Product Development and Market Development both have a higher level of risk than using the Market Penetration strategy. The level of risk for these two areas is dependent on development time, financial commitment, and company resource requirements.

To determine which opportunity the company should pursue, several steps need to be completed. The first is to conduct market research. This can include any or all of the following: Primary research, which could include surveying current or future customers, in-depth interviews, focus groups, and various other techniques. A wealth of information is also available through secondary sources. Research conducted by various government offices, trade associations, or private companies can help provide a base for discussion and analysis. For example: If the company decided to use the Market Development Strategy and wanted to diversify geographically, information could be gathered on the area’s economic situation, number of customers in the area that meet the target market definition, and other pertinent information.

Once the information has been gathered and analyzed the company needs to establish what they want to accomplish with their diversification strategy. Establishing realistic goals to accomplish the outcomes desired by the company is vital for determining if the diversification strategy is working. The outcomes should be easily extracted from the accounting system or customer relationship management system.

Reaching agreement on which diversification strategy to use can be the most challenging step. There are different decision making models which can be utilized. In general, the company wants to determine which opportunity will best help accomplish the goals already established. In addition, the company may need information on costs, staffing, new infrastructure requirements, etc. to identify the best diversification strategy.

Once the decision is finalized regarding the diversification strategy, a detailed implementation plan needs to be developed. The implementation plan provides a road map for what tasks need to occur, who is responsible for accomplishing the task, and deadlines. This road map helps hold individuals accountable for moving the diversification initiative forward. The plan and accountability is critical to the success of the diversification initiative.

The opportunities to diversify a company are varied. Companies may decide not to complete all the background work before setting up a diversification strategy. This can be dangerous to the company if they do not have all the internal players in agreement that this is the right move. It’s crucial that the management team fully supports the diversification strategy, so they need to be included in the decision-making process, and make sure they understand the implementation as the company moves forward. This will be instrumental in the overall success for the company’s diversification efforts.

Mason is "Beyond Cool"

2011-06-30T06:27:00.000-07:00

The article linked below shows we were on the right track with not being so "cool" and pushing MSU students to settle here after graduation -- like other communities around here did. Instead we continue to emphasize the idea of pulling people back here to raise a family in the Mason area or settle here as the get older. http://www.thecenterformichigan.net/no-trend-seen-on-cool-cities/

FROM: Vince Dragonetti

2011-06-28T08:10:00.001-07:00

http://www.lansingstatejournal.com/article/20110628/NEWS01/106280319/Ingham-County-explores-tax-increase-economic-development?odyssey=mod|breaking|text|FRONTPAGE

Entrepreneurs Likely to Lose Tax Break

2011-06-01T11:06:00.000-07:00

FROM chamberofcommerce.com

By: Tess Taylor

The 2010 Small Business Jobs Act allowed self-employed individuals including freelancers the ability to deduct their health insurance premium costs on last year’s taxes. However, this may be short-lived as there are two bills currently fighting it out on the floor of Congress at present. One bill may extend this tax break permanently for small business owners, while the other may remove this entirely as justification for the home office deduction. Which one wins depends on several factors, including the push for a more level playing field between the self-employed and traditionally employed individuals who already benefit from having their health insurance premiums deducted on a pre-tax basis.

Early in May, Kristie Arslan, the proactive executive director of the National Association for the Self-Employed (NACE), spent time in Washington lobbying for the extension of section 2042 of the Small Business Jobs Act of 2010. Hoping to get a positive response from senators who are champions for the small business community, she is determined to make sure that freelancers and entrepreneurs get a fair break. “Our policy isn’t focused on new businesses and only when they are successful are we going to give them preferential tax treatment through tax deductions,” Arslan stated. “We have to shift our focus on helping businesses at the start up.”

In the last ten years, it’s a fact that the majority of job creation has directly come from newly formed small businesses, many of which are in the hardest hit areas of the nation. One positive aspect of the Small Business Jobs Act was that it gave entrepreneurs a leg up by allowing them to make an impact on their bottom line with a full health insurance deduction. Taking this away will only further denigrate the efforts that small business owners have made to restore the US economy and the livelihoods of millions of American citizens.

According to the most recent figures from the Joint Committee on Taxation, the Small Business Jobs Act has saved an estimated $1.9 billion just in 2010 alone. For many small business owners, these savings were considered to be more desirable than even the home office deduction that has been around for some time. A survey conducted by the Small Business Administration earlier this year indicates that less than half of all small businesses claimed the generous $1,500 home office deduction for fear of being audited or because they didn’t want to deal with the complexity of filing for this deduction in the first place. It seems that the health insurance premium deduction was more favorable because it made a bigger impact with self-employed individuals as a whole.

However, what will Congress do when faced with a steep deficit in the USA right now? With such appeals from SMBs in progress such as the 1099 reporting requirements of 2011, which looked to complicate the lives of many entrepreneurs, it seems as if our government may be forgetting the very bedrock on which this nation was formed. If we are to see any positive changes in the economy and a way to cope with the overwhelming debt that the United States has found itself in, we must do what it takes to back bills that protect the well-being of the small business community. Look for a continued gridlock as lawmakers squabble over this dilemma in the coming election season.

How Are Gas Prices Impacting Small Businesses?

2011-05-25T11:34:00.000-07:00

From: chamberofcommerce.com

By: Tess Taylor

Gas prices have consumers hurting and small businesses alike feeling the hurt. How long will it be until gas prices begin to fall?

Around the nation, oil and gas prices are edging up and small businesses are increasingly feeling it. The cost of oil has gone up over 700% over the last ten years, due to supply and demand challenges. According to AAA, gas prices are averaging between $3.00 to $4.00 per gallon, particularly in remote areas of the US. For small businesses who rely on transportation to conduct business, and those who have employees trying to get to work, the impact is significant. For other businesses that provide consumer goods and services, the impact is also being felt as more consumers are cutting back to pay for fuel.

The price of gas has changed the way many small business owners are making decisions. In an economic environment that is already stressed due to high unemployment, stagnant wages, property value declines and rising inflation, small business owners are often the first to experience declines in revenue. This makes it tough for small businesses to stay afloat without suffering losses of sales and being forced to let go of employees – an action that has a disparaging affect on the economy as a whole. When small businesses cannot make it, larger businesses begin to fail, and things spiral out of control much like a domino effect.

From the point of view of a small business owner struggling to provide services and goods at affordable prices, when the cost of doing business increases, typically some of these costs are passed onto consumers. In today’s climate, however, this is impossible because consumers are refusing to make unnecessary trips and purchases. Small business owners have no choice but to absorb these costs and cut back wherever they can. Small businesses that heavily rely on fossil fuels to get the job done have no place to turn and many just cease operations because they can no longer be profitable.

There is light at the end of the tunnel, however. According to CNN News analysts, the cost of oil has reached it’s peak and has now dropped almost 30% in recent weeks. Experts are saying this is a sign that gas prices will begin to fall over the summer months in most regions. In some major cities like Atlanta, Georgia and Los Angeles, gas prices have already begun to drop over the past few weeks and the word is that gas will be at a national average of about $3.50 USD by the end of the summer. This is good news for small business owners who are trying their best to tread water while the economy starts to rebalance itself following the gas crisis.

If you are a small business owner struggling because of gas prices, there are some things you can do to keep your business alive and well. Start by cutting back to the absolute necessities in your business and focus on what needs to stay in place to maintain production and quality. For solo-entrepreneurs, this can mean combining business travel into one or two days a week instead of five, or cutting back on expensive client meetings and lunches. For larger companies, this can mean cancelling corporate events and focusing on increasing employee productivity through smart incentive plans. Remember, our grandparents survived the Great Depression by being frugal, smart and waiting things out.

There are also some other creative ways to cut back on gas costs as a small business owner. Consider allowing staff to work part time from home offices to complete some routine tasks. Since the beginning of the recession, there has been a dramatic shift in small businesses attitudes about working from home offices. In March of 2011, the Telework Exchange put out a report that indicated that some 39,694 federal employees who were allowed to work from their homes just two days a week, saved an astounding $2.7 million in commuting costs alone. In addition, those who work from home claim to save 148,000 hours by not spending them on the roads. Can you imagine the impact this could have on your business if you implemented telecommuting as part of your business strategy?

During this challenging time in the US economy, take heart that there has actually been an increase in the numbers of new small businesses in many regions. Small businesses account for over 65% of all business activity in the world, so you are part of a movement of strong souls who will get through this brief hiccup in gas prices. For the best chance of surviving, maintain quality and a commitment to your customers, whatever it takes.

Governor signs law reinventing Michigan business taxes

2011-05-25T10:13:00.000-07:00

Brought to you by the Michigan Economic Development Corporation, a public-private partnership between the state and local communities promoting smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC's initiatives and programs, visit the Web site at MichiganAdvantage.org

On Wednesday, May 25, 2011, Gov. Rick Snyder signed into law $1.7-billion in business tax cuts effective next January 1, spurring new job creation and making the state competitive once again for new business investment.

Michigan's tax ranking is vastly improved, from 48th to 22nd on the Tax Foundation's state Corporate Tax Index and to 13th overall from 17th previously.

"The Michigan Business Tax was a disaster - it was not only unfair, it was a dumb tax," Snyder said before signing the new tax bill into law. "This is going to make us competitive, this will create jobs. And that's exciting."

Currently about 136,000 businesses pay the MBT, but the Department of Treasury estimates only about 41,000 businesses will pay the 6 percent corporate income tax that will replace it.

The new business tax will be flat with minimal exemptions and exceptions. It will be the first time in decades that Michigan business owners and managers will be able to calculate their taxes on the back of an envelope.

Celebrating National Small Business Week

2011-05-17T11:19:00.000-07:00

FROM: chamberofcommerce.com
by: Brent Barnhart

It often feels that small businesses get the short end of the stick when it comes to appreciation. There’s plenty of talk amongst politicians who claim small businesses are the backbone of the country, yet their talk proves to be cheap as more and more businesses go under. Yet no politician or piece of legislation can dampen the spirits of small businesses during National Small Business Week, May 16-20^th. With official ceremonies taking place in Washington, DC, National Small Business Week looks to honor the movers and shakers representing the working heart and soul of the country.

National Small Business Week represents a tradition, with the first event taking place in 1963 under President John F. Kennedy. Recognizing the special impact made by outstanding entrepreneurs and business owners, this year’s event looks to honor an estimated 27.2 million businesses. A number of awards are presented to various businesses, with honors ranging from “Small Business Lenders of the Year” to the “Entrepreneurial Development Awards.”

“Small businesses are major contributors to the strength of the American economy,” notes the SBA. “More than half of Americans either own or work for a small business. They also create 60-80% of new jobs in the country. Small businesses drive innovation, create 21^st century jobs and increase U.S. competitiveness.”

While National Small Business Week honors small businesses, the celebration sports some huge names in terms of sponsors. Google, Sam’s Club, AT&T and Visa are just a few names co-sponsoring the event.

Undoubtedly, the celebration and spectacle raises some speculation amongst SMBs. Shouldn’t small businesses be celebrated year-round? What does the amount of massive corporate sponsorship say about the event? Does any of the spectacle and celebration actually mean anything for small businesses facing tough times?

Of course, small businesses and the spirit of entrepreneurship should always been celebrated. The perseverance of Main Street businesses, fighting to survive the economy and doing everything they can to keep business going, is something to honor and admire.

As the country struggles, its people struggle, and small businesses bear a massive burden to keep this country moving. Events such as National Small Business Week do well to remind us exactly how many small businesses are out there and why they should be rewarded and remembered. As the week continues and eventually passes, the struggle will continue. Yet as more and more small businesses gather to get the country back on its feet, we may take comfort in the fact that we’re all in this together.

Obama Repeals Hidden Healthcare Tax Law

2011-05-10T14:49:00.000-07:00

By: Tess Taylor

Source: chamberof commerce.com

Recently, President Barack Obama signed a repeal to the widely feared 1099 tax form requirement for small businesses, sending waves of relief to thousands of small business owners around the country This requirement, which was part of the Affordable Care Act of 2009, would have required that all business owners file an IRS form 1099 for each and every vendor that they work with for transactions over $600. The 1099 requirement may have resulted in the loss of millions in revenues and even less opportunities for job creation – something the healthcare reform bills did not intend.

For the average small business, having to deal with the nagging 1099 requirement could have been an administrative nightmare. Not only would it require careful consideration of every small business owner to set up an internal system for tracking of all purchases and sales, it would have called for more man hours focused on accounting. Instead of looking at ways to expand the business and create jobs, the 1099 requirement would have forced business owners to get mired in tax mumbo jumbo.

It is also very possible that the 1099 requirement would have caused major delays in the entire tax system with thousands of tax forms being sent out year after year. Not to mention the difficulties of filling these forms out correctly throughout the year, on top of all the other administrative red-tape that the government requires. It is difficult enough for small businesses to deal with the ridiculous amount of financial reporting that the IRS requires, so having an additional burden like this would have driven many over the top.

The majority of 1099 filings are done by the small business community, so being mandated to report transactions at the $600 level would have been a daunting task for all. It was estimated that without this repeal, the amount of 1099 forms being processed would exceed 200% over previous years! This would have cost additional time, most companies would have been forced to outsource this process, and it would have taken the focus off the daily operations of running a business for many.

In a recent statement released by the White House, the word came that the repeal was put into action by Obama in efforts to “repeal the expansion in the Affordable Care Act of requirements for businesses to report information to the IRS on payments for goods of $600 or more annually”. This was due to an effort to increase the number of premium assistance tax credits for consumers and businesses that choose to purchase health insurance as part of the healthcare reforms.

That repeal is good news for many small businesses who have limited means by which to provide health insurance to their employees. This also goes for entrepreneurs who have not been able to afford health insurance or choose not to purchase it due to economic factors. Having to worry about reporting cash sales over $600 annually to the IRS could have been detrimental to many small business owners who are struggling to stay afloat in troubled times.

Business Blogging and Building Your Audience

2011-05-05T05:17:00.000-07:00

FROM: chamberofcommerce.com

04-18-11 - Posted By: Brent Barnhart in Social Media

You’ve probably heard the phrase “content is king” in reference to having a strong website that ranks well in search engines. While perhaps it sounds a bit cliché, there’s some truth to it. Take into consideration Google’s recent Farmer Update. This update rocked the search engine world as changes to Google’s algorithm punished a number of “content farms” and other sites with poor, spammy content. What happened? Those sites’ traffic went down significantly. On the flip side, sites producing fresh content on a regular basis via business blog marketing saw a boost in traffic.

What’s the lesson here? Content is crucial. It’s how you get found online, plain and simple. Having content, let alone good content, goes far beyond simply having a site that’s considered “well written.” Think about the sites you visit. What keeps you coming back? What compels you visit them more than once? New, fresh content. Additionally, search engines such as Google absolutely love sites that are consistently putting out new articles and information, and they’ve said it themselves. Your small business can get your own share of this love through effective business blogging or a home business blog.

You may think that your small business or your industries aren’t worth blogging about. Think again. Regardless of your niche and regardless of your business, there’s always something to say. Think about news and issues affecting your industry. Think about how new legislation could be impacting small businesses such as your own. Consider challenges you’ve faced as a small business owners and how you managed to overcome them. Whether they’re readers within your industry or simply other small business owners, your audience exists.

Because your audience exists and will relate to what you have to say, they will therefore be inclined to both react to and share your content. This creates a conversation, and this conversation results in more exposure for your business online. You can gain further exposure by sharing your content through Facebook and Twitter, which will incline even more people to do the same. This ability and tendency to share content represents the beauty of blogging, as business blogging is essentially free advertising that gets people talking and makes your business’ site look great in the eyes of search engines.

With all of this in mind, however, writing doesn’t come naturally to everybody. If writing is a challenge to you or you simply don’t feel that you have the time to blog every day, don’t fret. A few times a week, say three, is sufficient to maintain a following. Besides, you don’t want to stretch yourself for new content and write about topics that are boring or irrelevant. You shouldn’t have to write for the sake of writing, but rather write because you legitimately have something to say.

Your actual blogs don’t need to be much longer than a few-hundred words. Typically, longer is better in the eyes of search engines but make sure not to stretch too much. Lists and how-to guides are particular popular in the business blogging world, so if you’re hard-pressed for ideas of what to write about, those are great places to start. If you’re new to blogging altogether, WordPress and Blogger (by Google) are two of the most popular blogging platforms that’ll get you started.

There are plenty of resources out there to help you build your own small business blog. Read other blogs within your industry to better understand what others in your world are doing in terms of business blog marketing. With a bit of Social Media training and knowing best practices of business blogging, you’ll be well on your way to growing your small business’ online presence.

How to Handle Reputation Management Online

2011-04-20T06:54:00.000-07:00

FROM chamberofcommerce.com

03-28-11 - Posted By: Brent Barnhart in Online PR

Handling your business’ reputation in everyday life isn’t always easy. For example, somebody may something negative about your company, whether it’s true or not, and it may get around to few people. On the flip side, it’d be nice to post a notice for the world to see whenever somebody said something positive about your business. Such isolated incidents aren’t easy to spot, but usually don’t mean much to your business’ reputation in the long-run anyway.

The process of managing your reputation online, however, is an entirely different story. Libelous statements are posted for the world to see, and with billions of users online, there are plenty of people out there to trash your business at a moment’s notice. Conversely, the Internet affords many opportunities for your online reputation to shine if people are posting positive comments. Reputation management online is never easy, but is a crucial aspect of online marketing that’s very often overlooked. What are the proper steps for online reputation management, and what can you do to make sure your business remains in a positive light on the web?

Properly handling reputation management online not only makes your business look better to customers, but also to search engines. People looking for services online are heavily dependent on reviews. Think about your own experience online. When you have the choice between a business rated five stars on Google Places versus a business rated only two stars, which do you choose? You’re not in the clear if you have no reviews, either, as this may present your business as being unknown or perhaps inexperienced. For this reason, your business needs reviews. It’s wise to solicit reviews yourself as part of your online reputation management strategy, whether through an email or telling your customers directly after they’ve used your service. While you may only get a few people to actually write something about your company, it only takes a couple of reviews to create value for your business online.

What about bad reviews? People do generally love to complain over the Internet, so don’t be appalled if you get a bad rating during your quest for more reviewers. Some sites such as Yelp allow the owners of a business to respond to negative reviews, and doing so shows that you care enough about your company to take the time to defend it. Some issues, however, are better dealt with privately rather than publicly.
For example, if someone has a bad experience at your restaurant and they complain about an issue concerning a particular employee should probably be dealt with in private. A simple message to the customer to email you about the issue is sufficient.

Complaints that can be dealt with publicly usually involve some sort of misunderstanding, such as if a reviewer makes a claim that is either untrue or can quickly be refuted by facts. For example, if a reviewer complains that you were closed on a holiday or quotes your prices incorrectly and says that they’re unfair, you can set them straight publicly. Always be cordial, though, and offer them some sort of consolation or discount to your service so that they’ll be inclined to buy from you again. Doing this also makes you look humble in the public eye. Reputation management online can take some work and time to master, but it’s worth it in the long run.

As a side note, it’s not uncommon to see businesses leave spam and negative reviews on their competitors’ pages. Never do this, even if it’s been done to you. Almost all review sites allow you and other users to flag such reviews as spam, and anything that’s overly inflammatory will be dealt with accordingly. Also remember that some people just can’t be pleased and negative reviews will happen. Sometimes you may be unable to respond to a review. Don’t dwell on it. As long as you have an online reputation management strategy in place and solicit reviews from your satisfied customers, you’ll get plenty of positive feedback over time.

Additional outlets where you can monitor your reputation online include Facebook and Twitter. Social Media presents an interesting opportunity in that you can directly respond to anyone who mentions your business, positive or negative. A simple “thank you” comment or tweet is sufficient when somebody says something positive, there’s no need to go out of your way to message them privately for every compliment. Follow the same rules stated above in regards to responding to criticism.

Google aggregates a bulk of your reviews across the web, so having a well-reviewed and optimized Google Places page can do wonders for your business in its quest to improve its reputation. You should have a strategy in place for reputation management online, but as you make yourself aware of what people are saying about your business, don’t completely obsess over it. By submitting your business to small business directory sites to be reviewed and having plenty of positive feedback, your business and its reputation online will shine.

Increasing Sales to Small Businesses

2011-04-13T06:27:00.000-07:00

From: chamberofcommerce.com

By: Phillip Johnson

The phrase “time is money” has been embedded into the minds of professionals, especially in the corporate world. Coincidentally, time and money are key components in selling to small businesses. There is a significant difference between selling to large corporations versus small business sales, although some commonalities do exist and both present challenges in their own way. Keep reading to discover how to sell to small business owners, while keeping it simple and being successful!

What it Takes

Large and small businesses have two major commonalities when it comes to your ability to sell: they require a great deal of patience and both have limited budgets. Large businesses can take a lot of time to maneuver through for different reasons, including being able to find the right department, the right manager or getting in contact with the ultimate decision maker. That being said, patience is also necessary when selling to small business owners, however for different reasons.

A small business owner does not usually want to make a decision right away, which often makes the process drawn out over a longer period of time than necessary. The small businesses owner may need more time to round up money before making a purchase or simply be too busy to pursue any type of merchandise or service you are selling.

It’s no secret that small businesses have limited budgets, but why would large corporations have to worry about monetary constraints? Well, the truth is both have to deal with this challenge because they amount to the same issue: buying one thing means they are not buying something else.

Small Business Sale Strategies

In order to speak the small business person vernacular, you have to understand how small business owners think and why they make the decisions they do. Large businesses have a lot of help to get things accomplished, from assistants to co-workers and even legal representation. However, you have to understand that the vast majority of small businesses are one-person shops. Therefore, small business owners often play multiple roles within their company, including president, receptionist, bookkeeping clerk, director of marketing etc. As a result, they are burdened with too much to think about and do.

In terms of expenditures, there is a significant qualitative difference to consider for small businesses. It’s not exactly common for small businesses to consistently receive a biweekly paycheck. If new business is not continually generated, the mortgage may go unpaid, and if small businesses experience a bad month, the employees are also affected. Therefore, cash-flow is a big issue for small business owners.

So, where does all this information leave you as a seller to small business owners? The two major points you have to understand and overcome when pursuing small business sales is lack of time and lack of money. Consequently, the key to selling to small businesses is the ability to show them how the products/services in question will save them both time and money. There are also other selling points to consider, including building rapport with the small business owner and putting yourself in their shoes to better understand how decisions are made from a buyer’s standpoint.

How to Understand, Manage and Reduce Your Business Debt

2011-03-31T08:49:00.000-07:00

From: chamberofcommerce.com

By: Javi Calderon on Wednesday, November 10, 2010

The general public has a very black-and-white understanding of the word ‘debt’. After all, we were raised our whole lives to know that debt is bad. On a personal level, yes, you do not want to owe people money. It is very stressful and constricts your ability to live freely financially. However, from a business standpoint the ability to take on debt gives you the flexibility to spend money that you may not have in order to grow your business. As the old cliché goes, you have to spend money to make money.

Take the United States, for example. Our government is currently over 13 trillion dollars in debt! Yet the World Bank isn’t coming to Americans’ doorsteps and kicking them out of their homes, and we’re still living relatively prosperously. The key is having an income that can support the debt while also being able to put some away in savings. Business debt is a careful and precarious balancing act; the trick is to understand your business’ limits. Taking on too much debt can have absolutely catastrophic affects on your business.

To see where your business stands calculate your business’ debt-to-equity ratio. Take the total amount of debt you owe and divide it by the equity you own in your business. The lower the ratio the better, low ratios mean that your business can comfortably handle the amount of debt. Ideal ratios can vary greatly by market and industry, so research ideal debt to equity ratios for your industry before moving forward with any plans.

As you may expect, not all businesses experience debt as an asset. Many get trapped under a mountain of bills that strangle their ability to succeed, or even worse, force them to close their doors. When you have more debt than you can afford to pay, its time to start taking steps to reduce your debt before it suffocates your business.

5 Tips to Lowering Business Debt

1.   Creditors are not Your Enemy! When creditors come calling people often times try to hide from them in order to avoid confrontation. If you think about it, creditors are really more of an ally than an enemy. Their ideal is for you to be in sound financial standing so that you can pay them. They get nothing if you go out of business, so they are very willing to negotiate if it means receiving some payment from you instead of none at all. Reach out to your creditors and ask if you can negotiate a longer-term payment plan that will be more suitable for you. As long as you are paying them, they will be happy.

2.   Tighten Your Belt. Unfortunately, in times of financial trouble the most effective way to cut costs is to cut personnel. Look for areas that you can reduce spending or improve efficiency without affecting your products or services.

3.   Reorganize Your Assets. Is there a building or piece of machinery that your business owns that you no longer use? Do you own investments or other properties? Sell, sell, sell to reduce your debt.

4.   Loans, Debt Consolidation, Debt Restructuring: In dire circumstances it might be prudent to take out a business loan in order to pay off your debts. This way you can stop paying late fees and fines, be back in the green and have a little breathing room.

Business debt consolidation is the process of consolidating all your outstanding debts into one and then negotiating with your creditors to reach a reasonable payment plan.

Hiring a debt consolidation service to act on your behalf and negotiate a debt restructuring might be an effective use of your funds. The important thing is to get out of debt before it takes your business.

5.   Worst Case Scenario: If you have exhausted your options and you still don’t see a way out from under your debt then you should file for Chapter 11 reorganization bankruptcy. Research all options exhaustedly before coming to this conclusion; filing for bankruptcy will have disastrous affects on your credit so try to avoid is at all costs.

Chapter 11 reorganization bankruptcy will freeze all your debts while you come up with a new plan of how to conduct business. You will have to find ways to reduce expenses and increase income in order to pay your creditors. Your creditors will then have to approve your new plan.
As you can see, business debt can either be the key to expansion and success, or it could consume your business and force you to shut down. Knowing how to manage debt and understanding your specific financial situation is the key to using debt properly.

LRCC Supports Snyder Tax Plan & International Crossing

2011-03-30T09:39:00.000-07:00

The Lansing Regional Chamber of Commerce announced its support for Governor Rick Snyder's Tax Proposal and the New International Trade Crossing.

"We believe our support for both of these important initiatives is one more piece of Governor Rick Snyder's plan to reinvent the State of Michigan," said Tim Daman, president & CEO of the Lansing Regional Chamber of Commerce. "The Chamber's mission is to support economic growth and sound public policy resulting in business investment and job creation."

Lansing Regional Chamber Backs Gov. Snyder's Tax Plan

The Lansing Regional Chamber of Commerce (LRCC) has come out in support of Governor Rick Snyder'stax reform proposals. Under the Governor's proposal, the Michigan Business Tax (MBT) would be replaced by a 6 percent corporate income tax on C corporations, a 4.25 percent fixed individual income tax rate, and eliminate several business tax exemptions and credits.

"We believe the Governor's plan is the best opportunity to create a strong competitive business climate that will lead to a long-term and sustainable economic climate in Michigan," said Kristin Beltzer, senior vice president for Government Relations and Public Affairs. "We must create an environment that encourages business expansion and unleashes the job-creating power of the private sector in our state."

Lansing Regional Chamber Supports International Trade Crossing

The Lansing Regional Chamber of Commerce is supporting the proposed New International Trade Crossing which will connect Detroit and Windsor, Ontario by creating a new border crossing over the Detroit River. The proposed $5 billion public/private project would assist Michigan in leveraging up to $2.2 billion in much needed federal transportation funding for roads, bridges and infrastructure improvements.

For more information on the LRCC's support click here.

How the Tragedy in Japan Impacts Small Businesses in the United States

2011-03-29T10:41:00.000-07:00

From: chamberofcommerce.com

By: Brent Barnhart on Sunday, March 20, 2011

The current situation in Japan as a result of the Tohoku earthquake and tsunami is a true tragedy, and with so much destruction and so many lives lost, it makes us wonder how long it’ll be until Japan is back on their feet. As we watch from the comfort of our own homes, we can’t help but ponder what we would do if we were forced into such a miserable position. While our hearts are with Japan as the country must endure this devastation, it’s inevitable that this storm will have an impact on our own shores. The economic storm that small businesses may weather in the United States may be minuscule compared to that of Japan, but the potential impact is still very real. Disasters such as these are somber reminders of our need to prepare, as well as to always expect the unexpected.

How will the disaster impact the United States’ economy? Considering that exports to Japan represent only 5% of our total production, the initial impact perhaps won’t be as drastic as some might have thought. Regardless, many small businesses in the states are feeling the hurt, concerned for their Japanese clients as overall business in Japan has come to a standstill. Additionally, there could be a shortage of auto-parts as well as Japanese electronic goods. Businesses relying on such imports will have to wait it out in uncertainly, as it’s difficult to say how long the shortage may last.

The quake-tsunami is taking its most significant toll on Japan’s fishing and agricultural regions; thankfully the storm didn’t have nearly as much impact on Japan’s automotive and electronics production, which represent a much more significant chunk of their GDP.

Gas prices, which had been skyrocketing prior to the disaster, remain a large talking point. Due to the fact that Japanese business has come to a halt, it’s believed that their demand for gas may decrease in the short term. But as the country rebuilds and considers the loss of its nuclear resources, they may have no other choice than to turn to oil. This would inevitably lead to a rise in gas prices, which as of earlier this month; the Department of Energy predicted would average $3.70 per gallon in the United States during the summer.

In addition to economic awareness, the physical disaster behind the Tohoku earthquake and tsunami is increasing awareness for small businesses and how they may protect themselves. If your business was struck by a similar disaster, where would you be? While recovering from something like a hurricane or earthquake is often far from our minds, there’s certainly no harm in being prepared for the worst.

You can’t simply recover a crumbled building from the ashes, but there are some things you can do to have a backup plan in place. Online backup is one way to keep your business’ intellectual property and documentation safe in even the worst of disasters. Having disaster insurance is perhaps a more obvious solution to prepare, especially if you’re in an area prone to earthquakes, hurricanes, or other natural disasters.

While there’s no reason for businesses in the United States to panic in regards to the Japan’s tragedy impacting the United States, the future may tell a different story. Although it’s difficult for us to imagine or even comprehend tragedies such as what’s happened in Japan, there are a number of steps you can take to increase your awareness and make sure that your small business is kept safe.

Is the United States Going Broke?

2011-03-29T10:38:00.000-07:00

From: chamberofcommerce.com

By: Brent Barnhart on Thursday, March 24, 2011

“We’re broke,” John Boehner said last February during a speech in Nashville regarding the United States’ current financial status. “Broke going on bankrupt.” These bold words from the Speaker of the House seemingly affirm the fears of many Americans as the United States quickly approaches its $14.3 trillion debt ceiling. Such monumental debt raises plenty of questions about what President Obama can and will do next to put the country back where it needs to be financially. Yet the question remains; are we really going broke?

Depends on who you ask.

Yes, we’re going broke. Currently, debt held by the public combined with debt held within the federal government exceeds $14.1 trillion. Roughly $9 trillion of the aforementioned debt belongs to the public, representing debt that is owned by individuals, companies, and governments outside of the federal government. The remainder of the United States’ debt is essentially debt that the government owes itself, whether it’s owed to Social Security (amassing $2.6 trillion worth of debt by itself) or any of the other dozens of government “trust funds.” The grand total comes to roughly $14.1 trillion. Such a number is obviously huge and nearly impossible to comprehend, isn’t it?

But it doesn’t stop there. There’s an additional, often overlooked category of debt which Cato Institute writer Michael Tanner describes as “implicit debt.” This debt represents the “unfunded obligations” of programs like Social Security and Medicare in which the benefits of the programs are not legally guaranteed, and therefore represent the “softest form” of American debt. Tanner calculates that Social Security’s unfunded obligations now run more than $16.1 trillion, meanwhile Medicare faces obligations of up to $89.1 trillion. Taking this into consideration, our national debt of $14.1 trillion quickly jumps to $119.5. Can we even to begin to comprehend such an amount, which Tanner points out is over 900% of our GDP? “Maybe President Obama will figure out how to turn lead into gold,” Tanner says. “But I don’t think we should make public policy on that basis.”

Case closed. We’re broke. Right?

Remember, it depends on who you ask. In the wake of so much gloom and doom, there’s an equally passionate notion that the country is just fine. But considering the information stated above, how could there possibly be such a case? The fact that the federal government is able to borrow funds at incredibly low interest rates appears to be a point in the United States’ favor, but the general public doesn’t seem too keen on the notion of the country constantly borrowing from China. How about a long-term solution?

A long term solution exists, theoretically, in the form of raising taxes. Michael Linden of the Center for American Progress points out that the United States is “an extremely low-tax country compared to other economically advanced countries.” Linden also believes that we’re not broke. Far from it, he says.

Based on information compiled over the past five years, the United States ranked 29th of 33 member countries of the OECD (Organization for Economic Cooperation and Development) in total tax revenues. Linden proposes that raising taxes to the level of a country such as Canada (ranked 22nd in OECD’s list of total tax revenues, seven places above the United States), we could see a balanced budget as early as 2015. There’s much to take into consideration with such projections, though, as they are theoretical. Both taxing ourselves further and borrowing more and more seem like unfavorable options for the country, but perhaps it's our only option. Linden stresses that “the government is meeting all of its obligations” financially, and on the other side, Tanner questions how much longer China will continue to let us borrow as they question our creditworthiness.

What’s the answer to our debt problems? It’s up in the air. Who’s going to solve it? It’s up in the air. Are we broke? The answer seems to be both yes and no, but the fact that we certainly have a problem is indisputable and the American small business community is worried. Only time will tell how the country goes about solving its debt crisis, but with the debt ceiling looming over us, it appears that time’s almost up.

Social Media Protocols

2011-02-25T09:32:00.001-08:00

We're still learning social media. If you are a bit more advanced than we are, the info at http://www.chrisbrogan.com/socialmediaetiquette/ might help you refine your efforts.

Welcome to the Mason Chamber Blog!

2011-02-25T07:05:00.001-08:00

Welcome to our blog!