Keeping Connected in a Mobile Business World

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?

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

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

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"

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

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

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.