New Fed credit card rule doesn’t apply to small business cards
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
The Fed adopted new rules yesterday that would crack down on some practices by credit card companies in an attempt to make credit card agreements fairer and more transparent. Issuers won’t be able to raise interest rates on existing balances or apply payments to the portion of the balance carried at the lowest interest rate, and they’ll have to give 45 days notice when changing terms (instead of the current 15). The changes take effect July 1, 2010. (More details in the Fed press release.)
Big catch: the rule change does not apply to small business cards. So if you have a commercial card, it will still be subject to the old rules. Even though many small business credit cards function exactly like personal credit cards, and many people (especially self-employed or those in non-incorporated businesses) use them interchangeably.
Many small business owners also use personal credit cards for business needs, and they’ll benefit from this change. The National Small Business Association, which has been an aggressive advocate for strengthening credit card regulations, praised the rule change in a statement:
Although NSBA is disappointed that the rule will not go into effect until July 2010, it is gratifying that federal regulators recognize that small business owners need more than just increased disclosure, and are—for the first time—exercising their ‘unfairness’ authority to address a host of practices that defy free-market capitalism.
There’s clearly a lot of interest among consumers and advocates in changing how credit card issuers do business. The Fed got more than 60,000 comments on the rule change when it was proposed in May, more than it ever got on any other issue. Why the rule excludes commercial cards remains a mystery to me.
New Orleans business plan competition draws entrepreneurs
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
A few months ago we got a heads up about a business plan competition in New Orleans called 504ward (after the city’s area code). The competition will give $100,000 in seed money and as much in donated business services to fund the business idea that can retain talented young people who went to New Orleans during the recovery and rebuilding after Katrina.
The contest, spearheaded by entrepreneurial nonprofit Idea Village, drew 141 business ideas from 14 states. Now the group will choose 20 semi-finalists, with a winner chosen from the top five in April. (You can check out short videos of some of the business ideas here.)
This kind of economic development that fosters new businesses and new industries is particularly important during a recession. Louisiana, heavily dependent on the oil industry, now faces big budget gaps since oil prices have plunged. Other places depend on tourism, which suffers in a recession. (Here in New York, we lean heavily on Wall Street for tax revenue.) States should value entrepreneurs who can create jobs, diversify the tax base, and provide some growth and stability for areas that that traditionally rely on industries vulnerable to boom-and-bust cycles. So keep an eye on the ideas that come out of 504ward.
A Job Matchmaker for the Newly Laid-Off Masses
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
Reader Scott Barham wrote in response to my recent story What Layoffs Meant for Small Businesses:
“It’s true there is a lot of talent available for hire at the moment - great news for smaller businesses who are hiring.”
Then in true entrepreneurial fashion he pointed out a new site — layofftalent.com — a kind of matchmaker for the recent waves of laid off workers and the unemployed looking for work.
According to the website’s founders:
We started this website so people who have been laid off can say “here I am and this is why you should hire me”. Companies looking to hire can find experienced, talented people who are hungry for a new opportunity. We’re not saying everyone on here is a gem, but we think this will be a good place for talent shopping.
Talented people can also find each other here and work together on the next big thing. During the tough times, many talented people go it alone and innovate ready for the next boom cycle.
Predicting the Success of a Startup
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
How do you predict the success of a new company? One approach is to look at the amount of money its founders have raised from venture capitalists and other equity investors. To get a sense of what the VC community thinks is promising right now, you can check out our slide show profiling a selection of seed and early-stage companies that received the most investment over the past four quarters.
Of course, the ability to land funding is just one indicator a startup’s potential for success. And these days, it’s obviously hard to raise money in either equity or debt form, with little expectation things will get better any time soon. So I’d like to hear about the other factors you use to weigh whether or not a new venture will make it. Let me know in the comments section below.
Holiday Shoppers Say They’re Going Green — But Are They Really?
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
This holiday season, more people are thinking about spending more to gift green, but with the economy tanking and unemployment levels at their highest in 15 years, there’s likely to be even more of a gap between consumer attitudes and actions than …
Go to Source
The Myth of the Active Investor
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
Most people think that angels are active investors in start-ups, which is understandable given the description of angel investing that is provided in most books and articles. While some angels are active investors, many are not.
Professor Rob Wiltbank of Willamette University studied accredited angel investors involved with organized angel groups - people who had an average net worth of $10.9 million, had founded an average of 2.7 companies, and had averaged 14.5 years as an entrepreneur. That is, Professor Wiltbank studied the cream of the crop of angel investors.
He found that these angels spent an average of twelve hours per week investing in start-ups, of which only 30 percent is spent on businesses in which they have already invested. This works out to 3.6 hours per week on post-investment involvement with portfolio companies. But because the average investor was invested in 5.16 companies at a time, each angel averaged 41.9 minutes per week per venture!
Moreover, the third of the sample in Wiltbank’s study spent only two hours per week on their ventures. That translates to a little under seven minutes per week of post-investment involvement per venture! In other words, one third of a group of angels with an average net worth of $10.9 million, had founded an average of 2.7 companies and had averaged 14.5 years as an entrepreneur, spent seven minutes per week on the companies in which they had invested.
That’s hardly active investing.
* * * * *
About the Author: Scott Shane is A. Malachi Mixon III, Professor of Entrepreneurial Studies at Case Western Reserve University. He is the author of nine books, including Fool’s Gold: The Truth Behind Angel Investing in America ; Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By; Finding Fertile Ground: Identifying Extraordinary Opportunities for New Ventures; Technology Strategy for Managers and Entrepreneurs; and From Ice Cream to the Internet: Using Franchising to Drive the Growth and Profits of Your Company.
The Myth of the Active Investor
Not Just the Yellow Pages Anymore - How People Find Local Businesses
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
How do people find your small business? Are they familiar with your business, or do they find you by doing research?
In the past, people went to the Yellow Pages to find local businesses. If you wanted someone to cut your hair, you look under “beauty shops” and call a salon. Yes, businesses still get leads from the Yellow Pages, but it’s no longer the first place they look.
A large study of behavior by Comscore, Local Search Marketing in a Multi-Tasking World, shows a fundamental shift in the way people are looking for local businesses. Today, more people who are unfamiliar with your business are going to a search engine and typing in words like, “haircut, Houston, Texas.”
Here are the top 5 ways people find local businesses according to Comscore:
- 31% Visit a search engine - most research without a specific brand or business name in mind and a specific location (i.e. a plumber in Tampa, Florida).
- 30% Look up a business in print in the Yellow Pages or White Pages.
- 19% Use Internet directories - often to find a phone number.
- 11% Look at local search sites like Google Maps or Yahoo Local (usually to get driving directions).
- 3% Get information from a newspaper or magazine.
No wonder print advertising is suffering – three out of the top five ways people find business information involve the Internet. This is why I’m always surprised how much businesses seem to value print ads, or TV as a method to drive people to their store or company. I also get lots of questions about marketing on social networking sites. The study said that just 1% of people find local businesses through social networking sites. Sure, social networking is a great way to build brand recognition, but it’s not the first place consumers go when they’re ready to buy.
From the study it appears the best way small businesses can capture new business is by improving their results in search engines. Yes, you can pay someone to build links and improve your site’s chances of ranking well in the search engines. However, there’s not a fixed cost, and it’s possible to rank well without spending any money.
After looking at hundreds of web sites for small businesses I see that most need to focus on the basics. Things like making sure your business is findable online and that your title tags are optimized. Also, make sure it’s easy to find … details such as the business name, phone number, address, hours of operation, specials, promotions, products carried, payment types accepted etc. on your site.
Online marketing may not seem as glamorous or rewarding as seeing your name in print. But who’s going to complain when sales are going up?
* * * * *
About the Author: Janet Meiners Thaeler is an SEO Evangelist for OrangeSoda Inc. and the principal blogger for their corporate blog and Twitter account. She has worked with clients like Novell and Tahitian Noni and regularly advises clients on blogging and social media strategies. Thaeler has freelanced for numerous online and offline outlets such as Podango, Marketing Pilgrim and her own blog – Newspapergrl.com (and Twitter account @newspapergrl). She is passionate about online marketing and is always looking for new insights, resources and trends to help her clients.
Not Just the Yellow Pages Anymore - How People Find Local Businesses
Introducing Janet Meiners Thaeler
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
Janet Meiners Thaeler has joined the Expert lineup here at Small Business Trends.
I know Janet from Twitter — maybe you do, too.
Janet goes by the name “Newspapergrl” at Twitter, where she is very active. Newspapergrl is also the name of her blog.
By day Janet is employed by Orange Soda, a Utah-based Internet-marketing firm, where she advises clients on blogging and social media strategies.
Here first article here is about how customers are shifting away from the Yellow Pages as their primary source to find local businesses, but instead are turning to the Internet in increasing numbers. As of which suggests that if you are still relyin primarily on the Yellow Pages for visibility, it’s time to get your online house in order.
Read more about Janet’s background here. And give Janet a warm welcome!
Introducing Janet Meiners Thaeler
Toilet Paper Entrepreneur, A Book Review
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
When the going gets tough, the tough get going. When the tough get going - they had better bring “Toilet Paper” with them!
This is my sorry attempt at potty talk and if you’re offended by it, then you might pass up The Toilet Paper Entrepreneur. And that would be a real mistake.
First off, it’s a really short book (175 pages) — so short in fact, you could read this business book while doing your business. There I go again! There are a lot of potty references (like just about every chapter name) — but in between laughs, you will get some straight-talk and in-your-face advice on what to do to grow your business and how to do it.
But first, let me introduce you to the author, Mike Michalowicz. You might have seen him on “Big Idea” with Donnie Deutsch - he was one of the expert panelists.
Maybe you know him from one of the several companies he’s launched, grown and sold for mega millions like: Olmec Systems, a computer network integration firm or PG Lewis & Associates, a data forensic firm that does computer crime investigation.
I didn’t know him, but after reading the book, watching some videos and chatting with him via e-mail and phone - let me tell you. He’s knowledgeable. He’s practical. He’s brilliantly, refreshingly funny.
What You Can Learn From “Toilet Paper”
- Yes, you can do it with three sheets – Who needs a business plan when you can get the job done with these 3 sheets: Prosperity Plan, Quarterly Plan and Daily Metrics.
- Pick up Cool Tools using the TPE Tips – Just like that pesky toilet paper that sticks to your shoe, Mike throws down these wonderful tips for how do get the job done on as little cash as possible (many of them are free) like these: Use eBay as your e-commerce site. For web meetings, try Dimdim. Use the library. Find retired people or students who can help.
- The right way to get rid of 90% of your customers and make (that is KEEP) even MORE money — One of the consistent lessons in the book is to FOCUS. Instead of giving everyone some of what they want - focus on the few, loyal, profitable customers that are taking you to where you want to be - and say YES.
What I LOVE About “Toilet Paper Entrepreneur”
Mike doesn’t just give advice — he actually tells you what to do and how to do it. If you’re at the stage of your entrepreneurial journey where you’ve hit a wall or are feeling depressed about your life, the economy or your future — get this book. You will laugh, you will learn something. But most importantly, you will actually do something, even if it’s just to go online and explore some of the tips and tools he shares.
The book is flush with action items at the end of each chapter. He also guides you through some actions within certain chapters such as the Prosperity Plan. In addition to that, you can see examples of Mike’s 3-Sheets at The Toilet Paper Entrepreneur site. In addition to the book, it’s a good idea to subscribe to the blog because he’s forever updating it with really terrific articles that are useful and fun.
Who Can Best Use “Toilet Paper?”
Mike initially thought the ideal audience for this book was a 20-something, college-age guy who wanted to be an entrepreneur. Not so. He’s getting rave reviews from WOMEN entrepreneurs over 35! Apparently we’re not scared away by potty references as long as they are backed up with low-cost (no-cost) ways to start and grow a business that we feel passionately about.
Here’s the deal with Mike’s book and process. It’s not your college’s MBA or Academic Entrepreneurial Program. This book takes building a business from a very human perspective. It assumes that you are NOT a wunderkind genius with access to venture capital. It assumes that you are a regular person, with access to every day resources and helps you combine your passion, resources and action into some results that will make you happy.
* * * * *
About the Author: Ivana Taylor has spent over 20 years helping industrial organizations and small business owners get and keep their ideal customers. Her company is Third Force and she writes a blog called Strategy Stew. She is co-author of the book “Excel for Marketing Managers.”
Toilet Paper Entrepreneur, A Book Review
Even Snowmen Read the Fine Print
December 23, 2008 by Aristocrats LLC
Filed under Running a Business
The holidays are hard for cartoonists.
Sure, you have the run of the mill crazy schedules, mall brawling, and cabin fever, but there’s the added pressure of trying to come up with fresh cartoons.
Some holidays give you a lot to work with, but even so, you’re going up against a hundred years or so of people doing seasonal gags, so trying to find new material is rough.
This one came after mulling over Frosty the Snowman’s “two eyes made out of coal.” I remember thinking that it must be great to just throw on two pieces of coal and, POP!, vision! Throw in about an hour of staring out the window, surfing the web, and a little nap, and you get a cartoon that I’m pretty sure hasn’t been done before.
* * * * *
About: Mark Anderson’s cartoons appear in publications including The Wall Street Journal and Harvard Business Review. Anderson is the creator of the popular cartoon website, Andertoons.com, where he licenses his cartoons for presentations, newsletters and other projects. He blogs at Andertoons Cartoon blog.
Even Snowmen Read the Fine Print
