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Small Businesses Seeking Fast Cash Turn Away From Traditional Lending

May 8th, 2012 ::

By Karen Axelton

Small business owners in a hurry for funding are increasingly reluctant to apply to banks for financing for their small businesses, the Merchant Cash and Capital Small Business Finance Survey found. According to the study, many small businesses are not bothering to apply for financing from traditional lenders because they didn’t think they’d be able to qualify. Others were reluctant to apply again after having been turned down for financing in the past.

The study polled entrepreneurs who had applied for a merchant cash advance from Merchant Cash and Capital, a merchant cash advance provider, and found that 42 percent of respondents who had applied for their first merchant cash advance did so because they didn’t think they could qualify for a traditional bank loan.

More than half (57 percent) of those surveyed said they had applied for a small business loan in the past. However, a whopping 76 percent described the process of getting a small business loan from a traditional lender as either “difficult” or “extremely difficult.” And of the 57 percent who had previously applied for a small business loan, 80 percent said they were either declined or had withdrawn their application.

Merchant cash advance companies such as Merchant Cash and Capital provide unsecured financing for businesses including restaurants, retail, service, legal, medical, franchises or ecommerce businesses. The money can be used to cover needs such as inventory, cash flow, expansion, overdue payments and more.

The survey found that small business owners typically use merchant cash advances for short-term needs, including purchasing inventory, payroll, paying taxes or bills, and marketing. Financing expansion was another popular use for the funds.

Clearly, when small business owners are seeking sources of capital quickly, they aren’t looking to traditional lenders as often as they used to. “It’s no surprise that small businesses are suffering from an extreme lack of available financing from traditional lenders and their tight qualifications,” said MCC President and CEO Stephen Sheinbaum in announcing the survey results, “but the depth to which the problem has gone should be of great concern.”

Image by Flickr user myphotosshare blogspot (Creative Commons)

How and Why to Use Mobile Marketing to Reach Your BtoB Customers

May 7th, 2012 ::

By Rieva Lesonsky

We’re hearing a lot about mobile marketing these days, with the proliferation of smartphones and tablets. But while most of the talk is about consumers and their changing shopping habits, it’s equally important for BtoB marketers to realize their customers’ behavior is changing, too.

For years, business decision-makers have relied on smartphones to get stuff done on the go. The advent of tablets, and their increasing adoption with the introduction of the latest iPad over the holiday season, has only accelerated the trend. Enterprises are adding tablets for their teams or, if they aren’t, a growing number of employees and executives are just showing up with their tablets and expecting to use them for work purposes (BYOD, or “bring your own device”).

Busy execs, in particular, are taking to tablets and using them for all types of purposes, from catching up on their industry reading to giving presentations to watching videos to taking notes during meetings. How can you take advantage of the fact that decision-makers are spending more time on their tablets?

Make sure your website is optimized for mobile viewing. You’d be surprised how few entrepreneurs do this. According to Web.com‘s recent Small Business Mobile Survey,  only 26 percent of small business owners have a mobile-friendly website ( the same layout/content as standard site adjusted to suit a smartphone screen), and just 14 percent have a stand-alone mobile site. Of those who do have a stand-alone mobile site, however, a whopping 84 percent saw an increase in sales as a result. Consider both tablets and smartphones, and be sure to include all platforms. Although the iPad is by far the dominant tablet, when it comes to smartphones, the market is less clear-cut and, especially in big business, many execs still rely on BlackBerry smartphones.

Consider adding a mobile app. BtoB apps need to be useful and solve a problem your customers have by making a process more fun, easier or faster. Think about how typical activities your customers engage in could translate into apps, or how apps can make it simpler to communicate with your business.

Look into mobile advertising. With more execs reading and researching on the go, you may want to move part of your ad budget into mobile. True, you might not be able to afford an ad in the mobile version of The Wall Street Journal, but think about running ads in the mobile versions of your industry’s key trade publications or in their mobile apps.

Get visual. The popularity of video online is skyrocketing, and today’s tablets with their crystal-clear displays are ideal for video viewing. Think about creating short videos demonstrating your product or service, providing customer testimonials or talking about a key issue in your industry.

Whatever tactic you choose, keep in mind that when it comes to BtoB marketing, it’s all about relationships. How can mobile marketing improve your relationship with customers and prospects? How can you provide answers to their questions or solutions to their problems? Make yourself a mobile resource, and your relationship can continue wherever the customer is.

Image by Flickr user Siddartha Thota (Creative Commons)

RunRev: App Creator for Non-Techies: Small Business Resource

May 4th, 2012 ::

RunRev

If you’ve ever wished there was an app for your specific business need, your wait is over. RunRev has created an easy way for the no-way-am-I-a-developer people to quickly make their own mobile app. The Small Business App Academy teaches small business owners to create a mobile app in 30 days, or whatever you need, with no stress and no degree in computer science needed. The Academy just kicked off May 1, 2012, and the courses are free. Simply sign up and get instructional videos delivered directly to your inbox daily on such topics as database and cloud access, working with rich media, deployment devices and creating user interfaces.

Tweriod: Online Twitter Scheduling Program: Small Business Resource

May 3rd, 2012 ::

Tweriod

When should you Tweet to get the best results? That is the question on every entrepreneur’s mind. But the answer may not be the same for every entrepreneur in every industry. Tweriod personalizes your results by checking for the best periods throughout the day to tweet based on your followers. Tweriod tracks retweets, replies and the engagement level of your followers, then analyzes your account to figure out your optimal posting times. You’ll get an email or Direct Message once your analysis is ready. Oh, and did we mention, it’s free?

Small Businesses That Use Mobile Marketing See Their Sales Soar, Survey Shows

May 3rd, 2012 ::

By Rieva Lesonsky

Is your small business using mobile marketing yet? In celebration of National Small Business Month, Web.com today announced the results of its Small Business Mobile Survey. The study found that while 69 percent of small businesses consider mobile marketing crucial to their growth in the next five years, and plan to increase their spending on it, a majority of them still haven’t taken full advantage of mobile marketing.

With 82.2 million Americans using smartphones, according to comScore figures, the benefits of mobile marketing are clear. Out of the 500 small business owners surveyed, 14 percent have a stand-alone mobile website; 84 percent of those entrepreneurs say they have seen an increase in new business activity due to their mobile marketing efforts.

Why are small business owners eager to invest in mobile marketing? Their top motivations were:

  1. Provide better service to existing customers (38 percent)
  2. Attract more local customers (36 percent)
  3. Gain competitive advantage (34 percent)

“With more and more consumers specifically searching for local businesses on their mobile devices, it is imperative that small businesses invest in a mobile presence,” said David Brown, chairman and chief executive officer of Web.com, in announcing the survey results. “Having a mobile presence can be a huge competitive advantage for small businesses trying to attract local customers by instantly introducing a potential customer to their business’ products and services in a mobile-enhanced way.”

But for most small businesses, there is still a long way to go when it comes to adding mobile marketing to the mix. While 60 percent of small businesses surveyed have a website, only 26 percent have a mobile-friendly website (the same layout/content as standard site adjusted to suit a smartphone screen). There’s also a large gap between the rapidly increasing number of mobile searches and small businesses’ mobile search strategy. Over 61 percent of small businesses currently do not have a mobile search strategy, meaning they’re missing out on consumers trying to find them via mobile device.

As a small business owner, you probably know that the biggest hurdle to embracing mobile is lack of time and resources. Some 64 percent of small business owners in the survey said they are their own one-person marketing team. It’s tough to wear multiple hats and find the time to build a mobile presence as well as running other aspects of your business.

Still, it looks like 2012 might be the year when mobile-savvy small businesses step it up. Some 64 percent of small business owners surveyed plan to increase their mobile investments this year.

You can find a full copy of the Web.com Small Business Mobile report and Infographic on in our Small Business Resources secton. Help your friends in the small business community go mobile during National Small Business Month by sharing this report on Twitter, Facebook and LinkedIn using the hashtag #smbmobile. Presenting on Small Business Mobile please see our handy Powerpoint presentation on the side bar here.

Image by Flickr user Mikigo (Creative Commons)

 

Grab Your Share of Mother’s Day Spending

May 2nd, 2012 ::

By Rieva Lesonsky

Mother’s Day is coming up May 13, and the 86.5 percent of consumers who are celebrating the day will be shelling out more money than they have in the past few years, reports NRF’s 2012 Mother’s Day consumer spending survey conducted by BIGinsight.

Consumer spending is up in general this spring, and Mom is going to benefit. NRF’s survey found that the average person celebrating the holiday is expected to spend $152.52 on gifts, up from $140.73 last year. Total spending is projected to reach $18.6 billion.

What are consumers spending on?

  • Two-thirds (66.4 percent) will buy flowers, spending a total of $2.2 billion.
  • Almost one-third (32.8 percent) will buy clothing or accessories, spending a total of $1.6 billion.
  • Electronics such as tablets and digital cameras are the gift of choice from 12.7 percent, who will spend a total of $1.6 billion.
  • More than half (54.3 percent) of those celebrating Mother’s Day will treat mom to dinner or brunch, spending $3.4 billion.
  • Finally, a total of $1.8 billion will be spent on gift cards and $1.3 billion on personal services such as spa or salon services.

Who are they buying for?

Almost 65 percent of respondents will buy gifts for their mom or stepmom; others will buy for their wife (22.4 percent), daughter (10.5 percent), grandmother (8.2 percent), sister (8.4 percent), friend (7.6 percent) or godmother (2.1 percent).

Where are they buying?

Although department stores are the most cited place to shop, specialty stores including jewelers, florists and electronics stores will attract 36.3 percent of consumers, and specialty clothing stores another 8.2 percent. One-fourth of shoppers will buy gifts online, an increase from 21.5 percent last year.

Whether they buy online or off, more consumers this year are using mobile devices such as smartphones and tablets to research their options, comparison shop or even buy.

About 40 percent of smartphone owners and 51.2 percent of tablet owners say they will to use their devices to research products, compare prices, find or use coupons, look up retailer information and buy gifts. Tablet owners in particular will make the most of their devices, with more than 40 percent planning to purchase items online with their tablets this year.

It’s not too late to take advantage of Mother’s Day spending in your business, whether you sell apparel or electronics, personal services, or own a restaurant. Offering Mother’s Day deals and gift ideas for time-strapped dads is a smart way to capture some of the cash for your business.

Image by Flickr user julian wylegly (Creative Commons)

 

TheSelfEmployed.com: Information for the Self-Employed Businessperson: Small Business Resource

April 30th, 2012 ::

TheSelfEmployed.com

Getting helpful information when you’re running your own show can really put your business on the right track. Small business expert Steve Strauss’s new website, TheSelfEmployed.com, hopes to provide you with the tools you need to make informed decisions on taxes, technology, insurance and more. Strauss writes for USATODAY.com, has authored 15 books and has been featured on a number of high-profile business shows including MSNBC, CNN and CNBC. TheSelfEmployed.com’s blogs and forums can help you connect to other small business owners; a “Water Cooler” section keeps you entertained and informed about what other entrepreneurs are talking about.

Small Biz Resource Tip: TaskRabbit

April 27th, 2012 ::

TaskRabbit

Maybe you need to take on a few lower-paying jobs to get you through a slow season. Maybe you are just starting out and need to get the word out about your services. Whatever the reason, TaskRabbit can help you find customers or people to do tasks for you. Users post their needs on the site, and businesses bid on the job. TaskRabbit doesn’t charge you anything to bid, but makes its money by tacking on a 15 percent service fee for the users who accept your bid. The lowest offer usually gets the bid, but if you want the work and are trying to build a reputation, it may be worth it.

 

The 7 Home Trends Consumers Crave Most

April 27th, 2012 ::

By Rieva Lesonsky

Is your business involved in homebuilding, home remodeling, interior décor or home accessories or furnishings? If so, you’ll want to know about a survey by Better Homes & Gardens, reported in MarketWatch, that reveals the top seven things consumers want most when buying a new home or remodeling an old one.

  1. Separate laundry room. A laundry room doesn’t have to be glamorous or even especially spacious—the key is that it be convenient to the rest of the home. With aging Boomers having more trouble getting up and down stairs, having the laundry room on the main floor or near the bedrooms—instead of in a garage or down in the basement—is a big plus.
  2. Storage space, built-in shelving and walk-in closets. The days of consumers shelling out for more square footage are gone. Instead, people want to maximize the space they do have by organizing it properly. Floor-to-ceiling shelving, hidden cabinets and bigger closets are all on the wish list.
  3. Outdoor living space. The showy outdoor kitchens, built-in grills with pizza ovens and outside fireplaces are less popular in the recessionary fallout. But consumers still want outdoor spaces that connect to the home, giving them more room for entertaining. Front-yard living areas are gaining in popularity too since they often add curb appeal.
  4. An extra bedroom with attached private bath. This can be used as a master suite, mother-in-law suite or even a place to stash a teenager, but whatever it’s used for, it’s one of the most-wanted add-ons today.
  5. Home office/workspace/computing space. With more people working at home at least part of the time, an add-on home office is in high demand. But many consumers simply want ways to make their existing spaces more work-friendly by adding docking stations, more outlets or places to use computers in the existing kitchen or family room.
  6. Multiple eating spaces in or near the kitchen. An eat-in kitchen or bar area isn’t enough today. At the recent International Builders Show in Orlando, Florida, MarketWatch reports, many displays featured  three or four eating areas in the extended kitchen/family room area. Why? More and more, we’re multitasking, which means the whole family might gather in the same general area but not be doing the same thing. Everyone wants to be able to eat, work or do whatever they want, wherever they’re sitting.
  7. Bathroom upgrades. Kitchens and baths are always been the most popular ares to remodel, but until recently, kitchens were the hotter project. However, the survey found bathrooms are taking the lead. Maybe it’s the economy making us seek de-stress havens at home—or maybe it’s boomerang children moving back home and hogging the shower—but 31 percent of consumers this year are focusing remodeling efforts on baths and just 25 percent are concentrating on kitchens.

Whether you build homes, remodel homes or just sell home furnishings and accessories, these trends can point you in the direction of bigger sales.

Image by Flickr user James Thompson (Creative Commons)

Small Biz Resource Tip: Nimble

April 26th, 2012 ::

Nimble

If you’re hooked on social media, it’s a good bet that Nimble’s approach to social CRM is going to be right up your alley. Nimble takes a social network approach to organizing your contacts, sales and activities, and ties into all your communication such as email and social media outlets. Nimble also offers project management (called “Activity Management”), and its sales tools can help you keep track of all your business opportunities in one place. Nimble also integrates with other solutions such as HubSpot and MailChimp, and unifies all your notifications and comments from your Twitter, Facebook and LinkedIn accounts in one place.