07.31.08
Band together
In this era of cutbacks and alternative ways of saving, I think it is necessary to remind small business owners to band together. Although we are not bound by an official union, we can become our own union of sorts. We can rely on each other for strength, ideas and innovation. If a business owner comes across an innovative method of advertising or marketing that is more cost effective than what they are doing now, why not help others who might be in the same boat? As a business owner myself, I find that the more information I can share with my colleagues the more strong and confident I become.
Small businesses seem to be faring remarkably well in this unavoidable economic curve-ball. A report in CNN’s Small Business column stated that small businesses seem to be gaining from big business closures because of their ability to restructure cost effectively. Read more at: http://money.cnn.com/2008/07/30/smallbusiness/job_creation.fsb/index.htm?postversion=2008073016
I think it is more important now than ever before to build our networks, rely on our external sales force and build our alliances. Even if you can’t spend your usual dollar amount on advertising, use the time to do some cost effective marketing. Get yourself and staff out into the community. Attend luncheons held by area businesses. Involve yourself in community networking opportunities. All of these will prove valuable tools and resources when the economical dust has settled and we can once again return to our sense of “normal.”
04.28.08
Why Marketers Love Small Social Networks
I came across this article which I found interesting since I’ve just started a small business community for social networking at www.mainesmallbiz.ning.com
This article was retrieved from Brandweek.com at their website: http://www.brandweek.com/bw/news/spotlight/article_display.jsp?vnu_content_id=1003794853&imw=Y
Why Marketers Love Small Social Networks
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April 27, 2008
By Betsy Cummings
Marketers who think bigger is better may want to reconsider, at least when it comes to social media. Ad spending on those sites is predicted to top $1.6 billion this year, according to eMarketer. However, much of it will be plunked into smaller, emerging social networks.
While My Space and Facebook get all the attention, social media focused on topics as remote as knitting or bird watching can be a strong branding target these days, said Anthony Acquisti, strategy supervisor with emerging media at OMD, New York. His running tally of emerging social networks, now up-wards of 7,000, is evidence of an explosive market.
These more focused audiences should be popular with brands because “relevance,” he said, “trumps size.”
By 2011, eMarketer estimates, half of all adults in the U.S., and 84% of online teens will use social networks. That’s both a golden opportunity and a colossal headache for brands trying to nail down the best new network for their campaigns.
Sites like imeem, an emerging market leader, are carving out their niche now, making their case for advertising dollars. The site, dedicated to music, videos and photos, works with Burger King, Scion, Nokia and T-Mobile, which sponsored a “content capture” in the fourth quarter of 2007. This involved artist Jay Holiday texting his thoughts on tour to imeem members through his T-Mobile sidekick. “We tend to skew younger and edgier,” with a demographic of 13-24, said Steve Jang, imeem CMO.
That these sites are so segmented means they can offer unique campaign opportunities to brands. But how brands execute social media campaigns is as important as where they do it. And keeping new sites hip and unencumbered by advertising is a balancing act for both the brands and the networks.
At Twitter, a site that integrates text messages with social networking, companies like shoeseller Zappos.com are jumping on board. The footwear e-tailer is sending its own text messages to the site about products and “tweepstakes,” giveaways the company offers to Twitter members.
“The real way of getting into social media is you don’t advertise, you participate in the community,” said Pawel Szymczykowsky, Zappos’ software engineer.
Up and coming networking sites are also forming alliances through programs like OpenSocial, Google’s common API program that allows brands to build applications, like games, to engage users. Currently more than a dozen emerging sites belong.
Hi5, an OpenSocial affiliate with 44 million unique users a month, is heavy on international members, particularly the Hispanic market, which is 41% of its U.S. demographic, said Ramu Yalamanchi, Hi5’s CEO. “The benefit of OpenSocial is to get your application on other networks as well,” he said. “If you want to repurpose it for MySpace, you can do that easily.”
New sites also tout the viral spread of information from one site to the next. But skeptics say users on niche networks keen on that site’s focus aren’t likely to jump around. “I think ‘viralability’ gets spun a bit,” Acquisti said. In fact, a 2007 InVision study of emerging media by Initiative found that 47% of those who visit social networks visit only one site actively.
Plus, going viral isn’t always of value. “Social networks offer consumers the unfettered ability to write what they want,” said Debra Aho Williamson, senior analyst at eMarketer. “Sometimes [they write] about the brand, and sometimes it’s not very good.”
Instead, “a lot of social networks have been embracing letting companies and brands become users of the site where users can choose to be friends with them,” said Leah Culver, founder of Pownce, a social network created in June 2007.
That’s true at Classmates.com. Last quarter, the Renton, Wash.-based company worked with Applebee’s to create a profile for the “talking apple” seen in TV spots. Through the profile, users could engage with videos, photos and a link to Applebee’s site, said Jeremy Helfand, executive vice president and chief sales officer for Classmates.com.
With creative messaging on “profile pages, we see significant increases in response rates.” Helfand said in certain cases the response was ten-fold.
Subtle branding messages are key and a big part of what emerging sites are offering to brands, said Kelly Twohig, senior vice president and digital activation director at StarCom USA.
“Especially in a community environment where the bulk [of content] is provided by users,” Twohig said, “people want it to remain pure.”
Article regarding switching to LLC from Sole Proprietorship?
CNNMoney.com’s column Ask Fortune Small Business had this interesting article regarding becoming an LLC from Sole Proprietorship. I find that many people I come in contact with feel that becoming an LLC is the best way for small businesses to go. Although for some small businesses, the upfront expense may be a lot to budget, the long term benefits are well worth it.
Enjoy the article:
Many online legal services will file the paperwork needed to set up a limited liability corporation at prices ranging from $10 in Delaware or Nevada to $149 in other states.
For example, LegalZoom charges $139, plus state filing fees (usually about $500), for a basic LLC registration and $369 for a “deluxe package,” which includes express delivery of your finished paperwork within seven to ten business days. Some sites, such as mycorporation.com, also clearly explain the nature of an LLC and its pros and cons.
But if you’re worried only about paperwork, Anthony Mancuso, a lawyer who has written books about LLCs, asks, “Why pay a service when you can file yourself for the cost of state filing fees?”
To do so, go to the website of the secretary of state for your state. Mancuso notes that it is wise to hire a lawyer to help you weigh the pluses and minuses of forming an LLC – especially the effect on your tax status – but the paperwork is fairly easy to complete without paying extra legal fees. In many states you can file online. In others, including Indiana, the secretary of state’s site gives clear directions for filing by mail.
Online legal services have drawbacks.
“You can find good legal help on the Internet,” says Marc Lauritsen, head of the American Bar Association’s e-lawyering task force, which sets policy for lawyers practicing online and writes guidelines for consumers seeking online legal help. “But nobody vets the websites to ensure their advice is sound. And in most states communications with an online legal service aren’t protected by the attorney-client privilege, which means they aren’t necessarily confidential.”
However, when it comes to forming an LLC, Lauritsen says, “the process is so standardized that you should be fine if you hire an online service or do it yourself. If you use an online service, check with the secretary of state to ensure your papers were filed properly.”
REFERENCE:
http://money.cnn.com/2008/03/11/smbusiness/biz_law_llc.fsb/index.htm?postversion=2008031210
03.04.08
SBOC = Small Business Online Community
We’ve said it before, networking is an essential part of marketing your business services or product. As many of us are aware, there are many avenues which we can network. Networking groups such as Chamber of Commerce & Business Network International to name a couple. There’s also MySpace, LinkedIn and FaceBook for online networking. About a week ago, I stumbled across another networking community and I have to share it. Small Business Online Community is a community of business people who can get in touch with other business people through online forums, stories and connections. Free to join and just another way of getting your name out into the many caverns of the internet business community.
I invite you to check it out at: http://smallbusinessonlinecommunity.bankofamerica.com/index.jspa
02.23.08
Show me the money!
Hidden money that is. Many small businesses miss available monies which can be taken as credits on their tax return. Fortune Small Business writes that as a business you might be eligible to take additional credits “if your business innovates in areas such as Products, Improving Processes, Better Energy Efficiency and/or Environmental Improvements”.
Products: If your company develops a new product or significant improvement to an old one.
Improving Processes: If your business creates a way to boost their operating efficiency or quality.
Better Energy Efficiency: Designing a better solar cell, boosting a battery’s life, reducing computer energy consumption. (Many companies are jumping on the “green” bandwagon and are getting paid for making their location more energy efficient).
Environmental Improvements: Reducing carbon emissions (on certain levels).
Some companies are able to earn money just by taking the necessary steps to conserve energy during certain parts of the day. Any business owner should check with their local energy conservation council to see how they can “go green”. Check out this website: www.neep.org FMI.
Read the entire article posted by Fortune Small Business at: http://money.cnn.com/2008/01/22/smbusiness/found_money.fsb/index.htm
02.22.08
Yes folks, it’s tax season!
It’s difficult to say whether anyone other than accountants truly enjoys tax season. I have no thoughts either way because to me it’s just another tedious necessity that must be dealt with once a year. I found an article on LegalZoom.com that I thought would make an interesting post. The article entitled “The complete download on Business Deductions: Cars, Food & Entertainment” is a good resource for those of us in the small business industry who may not utilize an accountant for their taxes. For me, any help is good help, although I use an accountant. So I thought I would include a list of things here in hopes that it might give another business owner insight as to what they can take (and might be missing) for deductions, according to the Godfather of Taxes, the IRS.
According to the article, the Internal Revenue Code allows that you can deduct all “ordinary and necessary” expenses incurred while operating your business. “Ordinary and necessary” is fairly vague term but LegalZoom states that a good guideline to use is “an expense is ordinary if it is ‘common and accepted’ in your industry and necessary if it is ‘helpful and appropriate’ to your business. Let’s break this down a bit:
EXAMPLE DEDUCTIONS:
- Automobile Expenses
- Entertainment and Meal Expenses
- Travel Expenses
- Rent
- Certain taxes
- Legal and professional fees
- Bad debts
- Interest
- Insurance
- Advertising
- Employee expenses
- Donations to business organizations
- Educational expenses
- Licenses and regulatory fees
- Pension plans
It is always best to ask for guidance from a tax adviser, even if you don’t plan to work with an accountant to file your taxes. Almost all of the deductions listed above have certain restrictions which define whether they are actual to your business structure. The complete article can be viewed at: http://www.legalzoom.com/legal-articles/The-Complete-Download-on-Business.html?WT.mc_id=EM_NEWS_FEB08_FINAL&WT.mc_ev=EmailOpen&spMailingID=1474783&spUserID=ODA5MzAyMDUxNgS2&spJobID=45242822&spReportId=NDUyNDI4MjIS1
The IRS also has many helpful resources on their website at: www.irs.gov
02.15.08
Trademark vs. Copyright
I came across an article on CNN’s Business site this morning that struck my interest and had actually been a topic of conversation with a client a few months back. What would you do if you found out that your business domain name and the url to your business website had been sold to another company (worse, a competitor) who was now legally using it? I know I’d be irritated as heck trying to figure out what my next step was going to be.
The article is sparked by a man who writes to ask what recourse, if any, his company has toward the registration company who sold the domain name and URL to his company’s website. According to Christine Johnson who is the general counsel for GoDaddy.com, unless your company has a trademark on the domain name, there’s little that can be done. She further states that it is important to first distinguish the difference between copyright and trademark. A copyright protects the originator or author of a particular piece of work whereas a registered trademark is a word, symbol or device used to distinguish a specific product or good from others in the market. A servicemark can be used to protect a name or logo associated with a service offered by a company.
According to the article, if the business name is a registered trademark then a dispute can be filed under the Uniform Domain Name Dispute Policy which is governed by the Internet Corporation for Assigned Names and Numbers (ICANN). If the business name has been trademarked and registered and proof can be shown that the company who acquired the name (your competitor) acted in bad faith by achieving the name to compete with you directly, then you may have luck getting the name back. However, if the domain name has not been trademarked and/or the business has let the domain expire, then you are more likely “out of luck”. Once the name has expired, it’s anyone’s game as to who can pick up the name to use for their own business. This is not to say that you shouldn’t try to fight the company who bought the name, because if you are willing to put in the leg-work it might just pay off in your benefit, but it won’t be easy. There will be a lot of work to prove that you have had the business in effect and that the domain name uniquely identifies you and your company, prior to the competitor taking ownership of the name.
Obviously, the key is to remain aware of your domain expiration dates and do not let them expire if the business name and website is still active. Depending on the registration company, there may be allowances or a grace period between the actual expiration date of a domain name and the release date of a “dead” domain name. It is best to make yourself aware of your registration company’s guidelines and policies regarding domain renewals.
The costs associated with a Registered Trademark and a Copyright can be found at the United States Patent and Trademark Office and their 2008 Fee Schedule has been added.
REFERENCE: Lawinski, Jennifer; A Trademark can help corporate identity; Fortune Small Business; Feb. 12, 2008, retrieved from website at: http://money.cnn.com/2008/02/11/smbusiness/copyright_URL.fsb/index.htm?postversion=2008021211
United States Patent and Trademark office
01.15.08
Couples in business, good practice or not?
I’m not sure that I understand the recent hype over couples going into business with one another. Speaking purely as one half of a couple owned business, we enjoy being able to work together and feel each individual outlook on the business structure makes it a stronger business. CNN posted a story on January 14, 2008 “Unlimited Partnership: Couples in Business” which states that couples going into business are one of the ‘dynamic and unexpected forces in small business today.’ Personally, I consider this to be a compliment. The number of women owned (at least 50% ownership) businesses are rising, counting 10.4 million in 2006 alone! Twenty six percent of businesses owned are partnerships, however the report states it is unknown how many of that 26% are spouses. In the year 2000, 3 million out of 22 million small businesses, were couple owned.
The report also states that most of the (what they call) mom and pop shops are professional rather than retail, global more than local and likely that “mom” derived the business idea solely. This is a definite turn of events from older generation businesses owned by husband and wife. The trends also show that the days of the man starting the business and bringing the wife in to run the office and/or handle the billing are gone. Most couple owned businesses are 50/50 across the board with as many men running the office as women.
So, what is the appeal? Isn’t it difficult to be around your significant other 24/7? Don’t difficult business decisions get in the way of friendly and casual conversation? Not if the limits are set from the beginning. As with anything you do, there need to be limits and boundaries with which things happen. For us, we rarely talk about business outside of the business. I mean, sure a subject might come up now and then which needs prompt attention or discussion, but when we leave the office, everything stays there. Most couples state the boundaries are what keeps everything in order without thinking about it. Does it always work? Not always. In fact, some couples need to break themselves away from the business in order to salvage their relationship. We believe that it can be as successful as you both want it to be and it adds another dimension to the relationship.
So, what the answer? If you are a couple wanting to go into business together, speaking from experience – set the ground rules ahead of time. Factor in all the “what ifs” so that there are no false expectations or surprises along the way. Sure there is bound to be things that come up that you hadn’t thought of beforehand, but you are both less likely to get stressed or frustrated if there’s an occasional thing or two that you need to figure out over time. Be yourself. Your relationship is probably something you are very proud of and that will shine through in EVERYTHING you do, whether personally or professionally. My husband and I get complimented all the time on how well we appear to work together and respect one another. We set our boundaries such that I don’t tell him how he should perform his part of the business and he doesn’t tell me how I should perform mine. We set up bi-monthly meetings to go over status and updates and business issues and when we are done – that’s it. For us it works.
Resources:
CNN Report: http://money.cnn.com/2008/01/08/smbusiness/entrepreneurial_couples.fsb/index.htm?postversion=2008011414
01.07.08
Career Fair
On Friday January 4th, Mainely Technology was a presenter at the Androscoggin County Chamber of Commerce Career Fair held at Central Maine Community College in Auburn Maine. It was the first time presenting at such an event and it was very interesting. Sophomore students from the area high schools attended, which was nice that it wasn’t just students from any one particular school, and were invited to sit in on presentations of careers they were interested in pursuing. As a presenter, we were to provide the students with an insight as to what the career entails, education needed to get there and any other information we deemed pertinent in their decision-making. We encouraged the students to ask questions as we held our presentation extremely informal. We presented in two separate sessions, the first session had three students in attendance and the second session had eight. I must state that these kids for the most part, had a good idea what they wanted to do AFTER high school with a couple of the students in attendance stating they chose our profession because they didn’t really see anything else interesting to them (and they already knew what they would be doing after graduation.)
There was one student in particular who had already been designing websites and earning money for it. He also won a website development contest. It was good to talk with him and gather information on his approach and try to stress the importance of diversity in the field. Diversity in the workforce will reward in many different ways. I tried to stress that when I am looking at a prospective employee, I am not only looking at how well I think he/she will fit into the scope of the organization, but how much value is he/she able to bring to my organization. We tried to stress that especially in this field of work, learning never stops. We stressed the value of continuing to learn new things and stay up to date on the new techniques and applications coming into the technological field, because they will be your friend when you least expect them to be.
Never brush aside the opportunity to be a mentor to today’s youth. Even though you may not see that twinkle in the eye or the spark of interest when you carry on the conversation – but you will generate an added value they didn’t have before they walked through your door or sat down at your table. Out of the three or four students that were there “just because”, we received some excellent questions related to the different types of development that can be done as well as the different types of graphic arts that can be incorporated into a design. Oh yes, we also received the question on everyone teenager’s mind …. “how much does it pay?”
