 WELCOME
As noted in the Newsworthy section of this newsletter, the $34 billion unemployment insurance extension has been passed. Not surprisingly, viewpoints on this topic have ranged from "the lazy deadbeat who is unwilling to work" to "Americans want to work, even if it means taking a lower wage."
There will always be the "cheaters," the ones where rules don't apply. Cheaters will search for "under the table" jobs to augment the unemployment funds. Although they may get away with it sometimes, there's more than a slap on the hand in store when caught. In some states, there's jail time. But there's good news:
Our stuggling economy has produced not lazy freeloaders but, for the most part, hardworking Americans who have paid into a system of insurance all their working lives to protect against the pitfalls of being unemployed. According to the Department of Labor, one in three unemployed is jobless for over 27 weeks. That's a lot of time to live on what compensation provides. But at least it's something. And now it will last a little longer.
Libby Beatty, Chair
MBA Board of Directors
NEWSWORTHY
President Signs Unemployment Insurance Extension Bill
Partisan Debate Over
Months of debate over an extension of emergency  unemployment insurance has been settled and now
money will again flow to the millions of jobless needing aid. The bill passed the House
and Senate and the President signed the six-month $34 billion measure last week.
The benefits extension is estimated to add
2 percent to the projected budget deficit of $1.56 trillion. Many analysts agree that this bill alone is not nearly enough to generate
a vigorous recovery of the current recession.
 BACK TO TOP
MARKETING
E-mail Marketing Tactics, Refined
Most small businesses understand that an e-mail  campaign is a powerful marketing tool, but they don't always know how to make the best of their efforts. Here's how:
- Build the List: Place quality over quantity. Regular customers and those who express their interest in your business are key targets that could potentially forward your message to others. Collect
e-mails via your website, in-store guest books and your collection of business cards.
- Content: Use your campaign to build relationships, not sales. The articles, news briefs or announcements in your e-mails should have information that customers will find valuable.
Try signing up for competitors' e-mails and use their efforts to inspire your own. You can use customer questions to help you decide what kind of content is relevant to your audience.
- Respond: When someone responds, don't let that lead fall through the cracks. Create a schedule for checking and responding and be prepared to answer their questions.
Building Customer Loyalty
On average, roughly 80 percent of a business's profits come from 20 percent of their returning customers. It's, therefore, easy to understand the importance of having a solid customer base.
Consider the following techniques for keeping customers loyal:
Customer Awareness: Know your inventory and keep it in step with your customers' needs.
Customer Incentives: Give your customers a reason to return - like a frequent buyer card or simply excellent and reliable service.
Know Your Customer: Make an effort to familiarize yourself with their needs, their habits and especially their names.
BACK TO TOP
YOUR FINANCES
Cash in a Pinch
The following methods of procuring funds for a  growing or struggling business are effective but costly.
Be sure that you explore the terms of each method in full before you commit:
Consumer Installment Financing: This method is similar to factoring, but with a larger time frame. Basically a consumer financing firm will buy your customer contracts at a discounted rate so you can get cash now. You'll need to put cash aside in the event of future unsettled accounts.
Merchant Cash Advance: Recommended as a last resort, financiers give small businesses cash for a percentage of future credit card sales. A MCA will set a target repayment amount based on your business performance that will be paid until the debt is resolved.
Peer to Peer Lending: Commonly referred to as "social lending," these websites arrange loans between two parties and then take a percentage from each of them. Loan contracts typically last three years and rates range from 9 percent to 19 percent.
BACK TO TOP
FOR THE HOME-BASED BIZ
Take Your Business Out of the House for Lunch
As a home business owner, inviting potentia l clients out for meals and entertainment helps your business seem more professional. And it's tax deductable. Criteria include:
- That the meeting is in a "clear business setting" OR
- The main purpose of the meeting is to conduct business
- And business was conducted
- And there was the expectation that there will be a future benefit for your business.
"Associated entertainment" might include an evening show following or prior to your business meal. As long as the entertainment activity occurs within the same day as the meeting, it also qualifies as an expense and half the cost can be deducted.
BACK TO TOP
HUMAN RESOURCES
Growing Without the Pains
When your business starts to grow, you will inevitably  need to hire help. Most entrepreneurs admit to waiting too long to hire help, so if any of the following behaviors relate to you, now is the time to make some hires:
- You are filling more orders than you are marketing and selling.
- You are answering the phone and writing correspondence to clients at the same time.
- You cannot provide the service you sold because you have no time.
- You are disorganized and missing appointments.
- You can't keep good records or keep the books up-to-date.
If you can relate to these signs, hire an assistant to handle the administrative tasks that don't involve making sales.
Mindful Motivation
If the economy or the day-to-day of your business has your employees in a rut and you're looking for inspiration, here are some tips for sparking motivation:
- Get Feedback: Get out of your head and into your employee's by asking for opinions. A suggestion or complaint box allows anonymous expression without fear of retaliation.
- Fair Share: Every bit of good work should be rewarded. By creating a profit-sharing program, employees can align themselves with the success of the business while instilling a sense that their actions really matter.
- Freedom of Expression: Allow employees the freedom to control their tasks or schedules. This allows a feeling of trust and sense of control. Then, a couple mornings a week, hold short, open meetings where employees share their experiences of "bossing" themselves.
BACK TO TOP
IT
Pipejump: Viewing Sales with Simplicity
If you are an entrepreneur who lacks the patience or time to utilize online applications, here's one that will change your mind.
Pipejump is a sales cycle management application that uses a drag-and-drop interface that makes managing sales simple and quick. The homepage gives you a view of all your prospects with four tabs that segment your deals into folders: Incoming, Qualified, Quote and Closure.
With this foolproof method of viewing your prospects you can manage, organize, make notes and analyze the sales at the click of a button. Real time reports use charts and graphs to give you a clear perspective on your investment and their potential.
The price plans range from $14 to $149 and they all begin with a free
30-day trial.
How to Maximize Local Search Engines
It should be no surprise that local search engines are a great way to let locals know about your business - but just because you're listed doesn't mean you are doing it right. Here are some pointers for maximizing your efforts:
- Know Your Engine: Search engines like Google Maps, Window's Live Search Maps and Yahoo Local have extensive local search engines that are updated regularly. This means that you should make a habit of checking your listing to ensure its accuracy and see what new tools can help you reach customers.
- Happy Customers: Ask a satisfied customer to write a review for you on one of the engines like Yelp or Citysearch. Customer reviews go a long way when it comes to brand receptivity.
- Details, Details: Don't just list your store on an engine without exploring all the options that engines have to offer. Most sites allow you to upload photos and give you the opportunity to display articles or customer testimonials (hint, hint).
BACK TO TOP
COMMENTARY
Now for the Reality Check
By Stephen Markowitz
Now that we are finished watching Congress being congratulated by the Administration for their intelligent passage of health care reform, it is time for some sober reality checks from the carriers.
Some early elements of the Obama Administration's health reform legislation will be:
- the extension of coverage for dependents through age 26,
- prohibition of lifetime maximum insurance payments by carriers to subscribers and providers,
- prohibition of annual maximum insurance payments by carriers to subscribers and providers,
- loss-ratio mandates, i.e. rebates provided if the expenditures by the carrier is less than a certain percentage of total premium (for small groups that would be 80 percent of premium paid in).
Are these the initiatives that will bring about the changes you hoped for?
Well, here are some early calculations by carriers: They estimate additional increased annual premium cost up to 4.5 percent for the first three items above. Carriers can only promise to "evaluate" the impact of # 4 based on future additional premium increases. My conservative estimate is that the total increase to premiums will be about 5.5 - 7.5 percent total based on that "evaluation."
Businesses that opt-out of offering insurance will have to pay fees to the government significantly lower than the new costs associated with premium plus the additional increases to premium.
While small business takes far better care of employees than one would expect from the portrayals of this Administration, its resources to do so are being seriously depleted by this same Administration. We can expect to see many businesses taking the lesser of the two evils at this juncture and simply paying the fee to the government.
The current occupant of the Oval Office needs to stop casting blame on the business community and his predecessor and roll up his sleeves for something other than a photo op. He can start to implement real hope and change for America, or America will take matters into their own hands and address the source of so many of these problems in November.
Stephen Markowitz is chief executive officer of The Administrators, Inc. His column Commentary appeared for 15 years in The Alliance Report, MBA's printed newsletter. His comments reflect his views and not necessarily the opinions of the board and staff of Midlantic Business Alliance. Contact him at SMarkowitz@TheAdministratorsInc.com.
NEW MEMBERS
When our member base increases there is more of everything: more creative networking, more benefits and more experienced, enthusiastic business owners. All move our members toward growth, success and the entrepreneurial spirit.
Click here to meet our newest small business partners.
BACK TO TOP
Unless specifically indicated, MBA does not intend mention of companies, products or services discussed in this publication to be construed to be endorsements. The information in this publication is offered as examples that may be useful to our small business readers. Please consult with an industry professional before implementing any of the tips or subscribing to any of the services described above.
|
