WELCOME

Who's to Blame?

High up on the list of a small business’s worries is the increasing cost of health insurance. Employers may blame the insurance company, employees might blame the employers and the unemployed may blame the government. The following national study by PricewaterhouseCoopers, Factors Fueling Rising Health Care Costs 2008, may help spread the blame around further:

1. An unhealthy lifestyle is costly. The lifestyle we choose – smoking, eating poorly, not exercising – increases our need for health care.
2. Newer can be better, but it’s often more expensive. New technologies, such as new digital imaging procedures, increase prices because they cost more than existing technologies.
3. We want the latest treatments. Once new, improved treatments come on the market, physicians want to use them and patients often demand them.
4. We’re not getting any younger. As Americans age, we use more medical resources.
5. You and I pay a share of the cost of caring for the uninsured.
6. If Uncle Sam does not pay, you and I do.
7. Our health care providers get pay increases too.
8. Fear of malpractice suits.

I’m sure there are more. But how to find the answers is the hard part.

Libby Beatty, Chair
MBA Board of Directors

INSURANCE

MBA’s endorsed health care administrator, The Administrators, Inc., has supplied the following Independence Blue Cross article:

The Blues Commitment in Fighting Childhood Obesity

Childhood obesity is a critical public health issue. As the prevalence of childhood obesity has tripled over the past 30 years, its impact on children's health risks has increased. Cases of type 2 diabetes has risen among children and adolescents who are obese. Although diabetes and glucose intolerance, a precursor of diabetes, are common health effects of adult obesity, only in recent years has type 2 diabetes begun to emerge as a health-related problem among children and adolescents.

Combating this troubling trend and improving the health of our children require concerted efforts by local neighborhoods, schools, families and physicians. The Blue Cross and Blue Shield Association (BCBSA) and the 39 independent, locally operated Blue Cross and Blue Shield companies recognize the urgent need to support these efforts and have established numerous programs to educate and empower children, as well as their families, teachers and physicians, toward healthy lifestyles.

To read more about the Blues' support in fighting obesity and educating communities towards healthier lifestyles are the Blue Cross and Blue Shield Association program The Good Health Club and local programs outlined in Commitment to the Next Generation of Healthy Americans report.

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MARKETING

Tips for Social Media Marketing

Social networking can be an effective outlet for businesses to gain notoriety, but like any tool there’s some technique in how it is used. Here are some tips to get the most from your efforts:

In-Bound Links: By creating blogs or posting tips and industry news on your Facebook page or any social networking portal you have the opportunity to create an in-bound link that brings readers directly to your main website.

Web Events: Contests and giveaways that are hosted from portals like Twitter or Foursquare give people incentive to check out your site and get involved.

Stay Current: People that frequent social networks typically keep up with tech trends so your social marketing page needs to stay fresh and up-to-date. Check out this article about Facebook enhancements to your business page.

The Facts about Your FAQ

By creating a FAQ (frequently asked questions) for your customers you will save time, free up your resources and create a valuable internal marketing conduit. Here are some suggestions to get started:

The Questions: Collect as many commonly asked questions as you can by going through old emails, polling your staff/salespeople and coming up with new ones that help explain a service or price structure. Next, organize the questions into relevant sections to help people find answers quickly and easily.

The Answers: Make sure that your answers are clear and complete. If the FAQ is on your website you should create links to pages or items that help answer the question.

More Uses for FAQ: If done with tact and precision, the language of your FAQ answers can double as marketing copy that portrays the value and benefit of your services/products. Include questions that address how-to issues like: how to use the product effectively/correctly and how to contact the business. Also add your FAQ link to your e-mail campaigns for more exposure too.

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YOUR FINANCES

Trim the Fat off Your Retail Space

One successful strategy small business retailers are using to cope with the struggling economy is downsizing retail space. These businesses are finding that smaller spaces not only reduce rent but also create more efficient and effective sales settings. Streamlining retail space also means streamlining inventory, which means you can place smaller orders and keep more cash in hand to run your business.

Another advantage is that more focused product offerings make it easier for busy shoppers to make a choice instead of feeling overwhelmed. Smaller space also means cutting payroll because a smaller space means fewer employees. When all these factors combine, less time and money are spent.

Taking on Investors without Losing Your Business

Whether you are expanding, downsizing or trying to keep your business afloat, be sure to pick an investor that will help your business grow – not take it away from you. In general, private investors give you room to negotiate and maintain control of your business, while investors from institutions will make more demands and likely try to assume operational control. Feel out the landscape by scouring investor networks for contacts you can cold call. Their feedback will serve as an invaluable source of information, and it will indicate what they hope to gain from a partnership. Here are some other factors to keep in mind:

• If you take on multiple investors, be sure that they represent diverse interests. Let no one party gain a majority
• Avoid agreeing upon milestones and performance indicators until you have a history with the investors
  
• Keep the deals simple: cash for stock or a predetermined percentage of the profits

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FOR THE HOME-BASED BIZ

Tips for Securing a Home-Business Loan

Securing a loan as a home-business owner has its own specific set of challenges as there is still a lingering stigma about the legitimacy of working from home. Here’s what you need to know to overcome those hurdles:

Credibility: Impressive sales figures are often not enough to secure a home business loan unless you own a home as collateral. Create a financing application that includes copies of signed letters of intent from customers to back up your projections and strengthen your position.

Documents: Beyond the requisite tax records and projections of a normal application, consider including a signed lease for your home-office space, a floor plan than illustrates the separation of home and office and any permits and certifications necessary to operate a home business.

Honesty: Many home business owners feel the need to make excuses for working from home. This reveals a general lack of confidence that a banker may take as a reflection on your business. Be honest and project your confidence and skill instead of your insecurities.

Is Your Home Business Insured?

Working from home may allow you to cut certain expenses, but depending on the types of service you provide, business insurance should not be one of them. Some plans cover the loss of business equipment, liability for visitors and business income loss. Typically, service based businesses are the greatest risk.

Homeowners Policy Endorsement: If you have basic homeowners insurance you can add-on more extensive coverage for your business. This is one of the least expensive methods, and it usually won’t cover expensive equipment, home liability or business income.

In-Home Business Policy: This policy offers more coverage than the homeowners policy add-on, meaning that it will cover equipment and liabilities. There is flexibility for this policy that is contingent upon the types of safety features your business requires and if you have any employees.

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HUMAN RESOURCES

Employees: Your Greatest Asset in a Recovering Economy

A recovering economy sounds like a good thing, but it carries the risk of employees wandering off to greener pastures. A recent survey reports that a third of employed Americans say they will look for a new job when the economy recovers. The following techniques can help you retain your flock:

Give Feedback: By clearly stating expectations and sharing plans about your company’s future, employees become instilled with worth and direction.

Reward Feedback: By requesting opinions and ideas, your employees feel valued and inspired to contribute more. You can offer incentives like bonuses, titles or added responsibilities.

Instill Community: Picnics and social excursions can foster solidarity. Being part of a group will help make employees think twice about moving on.

The Importance of Office Ergonomics

Comfort and convenience are the cornerstones of ergonomics and its relationship to positive attitude and productivity. In order to give yourself and your employees the best environment to reach your goals, try implementing the following ergonomically-sound suggestions:

Seat: A desk chair should support the lower back and allow enough room for feet to stay in contact with the ground. Arm rests can help reduce strain on shoulders and neck.

Desk: Most desks are slightly higher than they should be, hence the prevalence of under-hung sliding keyboard trays. The keyboard should be 23-25 inches from the floor to help eliminate carpel tunnel syndrome. Wrist rests are also a good way to combat repetitive stress injuries to the hands and wrists.

Monitor: Your computer monitor should be 20 degrees below your line of site to ease neck tension. Your face should be 13-15 inches from the screen to protect your eyes from glare and screen radiation.

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IT

iMeet: The New Player in Virtual Meeting Marketplace

Virtual meetings are becoming more commonplace in today’s virtual business realm. Preexisting platforms like Skype and WebEx are affordable and easy to use, but iMeet takes user-friendly to the next level.

The interface screens are clean and sleek and can be customized to suit your tastes. Participants are represented by cubes that can be expanded to reveal member profiles which can include photos, bio and links. Meetings can be accessed from computers, phones and mobile devices, and guests can participate via webcam or just by audio.

There is room for up to 15 participants in each meeting room. Guests do not need to download any software. They simply visit the URL of the meeting or receive a free call from iMeet. Hosting a room is $69/month per room and is fully equipped to share videos, documents and other media. iMeet has a 30-day free trial so give it a try.

How to Connect to Local Marketing Networks and Ideas

The web is full of free and fast ways to connect to local businesses to see how they are marketing themselves. Here are some places to look:

Meet Up: Meet Up is a popular way to connect to new social circles with common interests, and it also has a directory that lists peer group networking meetings in local areas. Simply enter your zip code and your area of interest.

Fiverr: The concept is simple and direct. This is a showcase of wares and services that cost $5 and is a great resource for finding cheap labor. For example, you can pay an artist to create a logo for you or have someone wear your t-shirt around town. $5 and then get creative.

Bing: The growing popularity of Bing provides another avenue for local businesses to be listed.

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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.

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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.