All posts tagged Micro Business Issues

Tips Thursday: Seasonal Demand in Small Business

Since we celebrated Memorial Day on Monday and kicked off summer, the team started discussing how micro businesses experience seasonal demand and how they account for it. For this edition of Micro Business Tips Thursday, we asked our Facebook community if their business relied on seasonal demand. Our favorite response came from Roger Taylor.

Roger says, “Some of our business is seasonal, we cater to the hikers and campers in the spring and summer, in the fall we cater to the hunters. We have been able to bring in more products for year round sale, however, everything we hand make for the most part is spring, summer, and fall. This has forced us to diversify our products for the late fall and winter months. So far it has been successful.”

What do YOU think? Do you diversify your products based on seasonal demand? Tell us in the comments section.

MBR: Cheers, to Tax Freedom Day?

As the weather turns warmer, we are getting ready for summer which means BBQ’s, ice cream and the beach are on our minds. This week we have a variety of articles that peeked our interest, let’s call them a fruit salad of news. Hope you have a great weekend, and here is this week’s edition of the Micro Business Roundup.

New Shopping Habits: When Your Clients Go Mobile—You know that almost everyone has a mobile phone, but what does that mean for your small business? “The question is: What are your customers’ shopping habits and how can you become a more integral part of it?” This article helps you to look at your web presence what is appropriate and what you should be doing

Small Business Owners Ready to Hire, GrowBiz Survey Shows— Considering hiring new employees you are not alone, check out this studythat says small business owners are feeling increasingly optimistic about the economy, and as a result, more than half of them are planning to hire in the next 12 months.

Small Business Pinterest Starter Guide—Great resource for information on how small businesses can use Pinterest. “Pinterest offers a new channel for businesses to connect with existing and new customers. But is Pinterest right for your small business? Should you invest your time to learn yet another social network? How can you best leverage Pinterest to increase sales?”

Employee Benefits Uncle Sam Won’t Tax—Did you know Tax Freedom Day 2012 arrived on April 17 this year? Better yet do you know what that means, According to the Tax Foundation, that means every dollar that Americans earned from January 1 through April 17 went to pay federal, state and local income taxes. Everything earned from April 18 until December 31 is yours to keep. Mike Periu has some suggestions for way reward employees that can’t be taxed, he says “Let them Travel, Let them Call, Let them Eat.”

It’s an image heavy world, just ask InstagramWe all know that imagery is becoming more and more essential in communication channels especially social media. Check out tips on how to increase your use of imagery and what can serve as a good imagery for influential information.

How To Set Smart Goals for Your Small Business

We have all heard the excuses for not setting goals, mainly people don’t see the value in taking the time to really  think about what they want to accomplish in the short-term and how that will affect  their long-term success.  As a small business owner, it is important to set goals as they serve as a guide in making decisions.

The excuses for not setting goals range from I’m too busy,  I know what I need to do, I have been doing it this way and it works or I don’t set goals because I am afraid I won’t reach them.  Here are 7 reasons  why goals are useful and worth creating:

  1. Contribute to the success of the company
  2. Set specific expectations
  3. Create clear measurable performance standards
  4. Self-motivate
  5. Focus on what is important

    We asked our Facebook Fans what their top business goal is for 2012, here is a word cloud of what they said.

  6. Boost job and personal satisfaction
  7. Help to prioritize efficiently

Goal setting might appeal to common sense, but sense in goal-setting isn’t very common. When setting goals make sure they are SMART goals, Specific, Measurable, Achievable, Relevant, Time-bound.

Specific: Goals must be clear and specific. Goals should say exactly what is expected, when and how much. When goals are specific, progress can be monitored.

Measurable: If goals are not measurable, then it is not possible to monitor progress toward successful completion. Milestones are important and should be recognized.

Achievable: Goals must be realistic and attainable, a little stretch is okay but a common mistake is setting goals too high, those types of goals are easy to ignore.

Relevant: Goals must be an important tool in the grand scheme of reaching your vision.

Time-bound: Goals must have starting points, ending points and fixed durations. Commitment to deadlines helps to focus your efforts on completion of the goal on or before the due date.

We’d love to hear why you set goals in the comments.

Additional resources for goal setting

Set Goals, WikiHow

SMART Goal Setting: A Surefire Way To Achieve Your Goals, Goal Setting Guide

 

Tax tips for your micro business

As 2011 comes to a close and we look ahead to a new year, it’s time to start thinking about tax season and preparing to either file your own taxes or hire an outside vendor to assist you. If this is your first year filing taxes as a micro business owner, the process can appear daunting.

However you decide to prepare your taxes this season, here are a few tips to help save you time (and more importantly, money!)

Did you become an entrepreneur in 2011? If you started your micro business in 2011, you may be eligible to deduct some of the money you invested to get your business off the ground. Start-up expenses such as advertising, utilities, office supplies, and repairs can be deducted as current business expenses, but not before you have physically opened your business up. There is a catch though… your micro business needs to be losing money. If you are profitable from the get-go (not a horrible situation to be in!), you may not be eligible for this deduction. 

Did you hire friends or family members?  Micro business owners who hire their children (or any child under the age of 18) can deduct their wages as a business expense. To do this properly you should write up a job description, cut them a company check every pay period, and fill out and file a W-2 form. As a reminder, children can earn up to $5,700 tax free during the calendar year.

Does your business require you to drive? If your micro business demands that you drive to different locations for business-related appointments, you can deduct some of those costs on your taxes. To help easily keep track (and file accordingly), be sure to keep a notebook in your vehicle to record the date, mileage, tolls, parking costs and the purpose of your trip. At the end of the year, you have two choices. You can total the mileage and add in the tolls and parking to calculate your deduction. Once you have your mileage total, multiply it by the current amount for deduction. Your other choice is to measure your business usage against your personal driving and deduct that portion of your auto-related expenses. You can also factor in car payments expenses. Be sure to include your payments if you are leasing a vehicle, or if you bought an automobile, factor in the interest on your loan and depreciation on your vehicle.

Other helpful reminders when preparing your tax returns include:

  • Be reasonable with the deductions you take. Don’t stretch everything you bought in 2011 as a business expense. The more you pile on, the more likely you’ll be asked to prove your deductions during an audit by the IRS.
  • Keep an (updated) filing system. Getting ready for tax season can be bearable and less time consuming when your information is properly filed away. If you haven’t done this in the past, vow to make 2012 the year you create, and maintain, a filing system that helps you keep track of important tax documents. To ensure you don’t fall behind during the year, create time at the end of each month to review paperwork and reorganize as needed.
  • Review your tax return yourself. Even if you had your return prepared by a professional, make sure you understand what’s on your tax return. Ask questions where you are unsure and be confident with the materials prior to signing and submitting. While you don’t need to be a tax expert (that’s why you hired someone), you should have a basic idea of what your provider is doing.

How do you prepare for the upcoming tax season? Any advice you’d share with entrepreneurs going through the process for the first time?

MBR: When a negative can be a positive

Happy Friday all! We hope you had a great week back after the Thanksgiving holiday last week (we’re still working through the turkey leftovers). There certainly is a lot going on within the small, micro business space as many businesses are ramping up for their busiest sales stretch of the year. While you were likely planning your holiday marketing strategy this week, we came across a series of small business articles we thought you may be interested in as you close up for the week. Issues from how negative commentary can be a positive for your business to the importance of building relationships are covered in this weeks roundup. We hope you have a safe and relaxing weekend!

Why Negativity Can Be Good for your Business Blog Did you know that negative commentary can actually be a positive for your blog? Think about it from the consumer side, do you really want to see perfect reviews and feedback at every turn? Wouldn’t you feel better at least knowing there are some possible hiccups to be wary of? This recent Entrepreneur.com article takes a deeper look at why negativity is not always a bad thing, and how you handle those situations can help build stronger ties with your customers.

7 Blogs and Newsletters That Can Help You Sell a Business For many of you, your micro business is your life and the thought of selling it has never crossed your mind. For others, usually called serial entrepreneurs, selling a business is the name of the game. For those interested in selling off their business, the New York Times has put together a list of seven websites that can help you make it a smoother process. Whether you are interested in selling or not, it may be a helpful article to bookmark on your computer.

Boston Beer Co.’s Jim Koch on Self Reliance As many of you know, we like to share interesting entrepreneur stories that we come across. Entrepreneur.com this week featured the founder of the Boston Beer Company, Jim Koch, who left the financial world to follow his dream of owning his own brewery. Among a variety of intresting points made, we were drawn to Koch’s thoughts on competition. He states, “As a craft brewer in America, after 27 years we’ve (the craft beer industry) finally gotten to 1 percent market share, so my competition is not craft brewers because we’re all going to succeed or fail together.” It’s an interesting concept that micro businesses can take into their own thinking. A group of small business owners bound together are more effective to the overall good of the small business economy than competition among each other.

Why We’re Afraid to Talk Pricing It’s an on-going issue that businesses of all sizes deal with on a day to day basis: pricing. No matter how well you market your product or service, or how efficiently you are at selling your business proposition to a potential customer, a few numbers ultimately can make or break your sale. In this SmallBizTrends.com piece, the author looks at different reasons why a business won’t provide those scary numbers and how your business can help get away from this phobia.

It’s Always Been About the Relationships As many entrepreneurs can attest to, building a business starts with the relationships you form. What’s going to make your business stand out from the bigger box stores who will likely be able to win the price game. As this DuctTapeMarketing.com article notes, social media can be an effective tools towards building relationships with many potential customers while flexing your knowledge within your businesses industry.

Looking back on Small Business Saturday

If you are a micro business owner, you are likely familiar with the celebration of Small Business Saturday which kicked off its second year this past weekend. For those not familiar with the newly formed “holiday,” Small Business Saturday is a day dedicated to supporting small businesses
on one of the busiest shopping weekends of the year (weekend after Thanksgiving). The day encourages consumers to think small as they plan the holiday gift buying and shop at their local, independently owned small businesses. 

While you were likely busy planning your Small Business Saturday strategy in between Thanksgiving and family activities, you may have missed some great small business articles that came out. Here are a couple articles we found interesting from over the weekend:

Small Business Saturday In this guest reporter piece in the Baltimore Sun, one woman relives how she spent her Small Business Saturday within the greater Baltimore area. Take a look at what small business specials stuck-out to this consumer, perhaps there is an idea  that you can incorporate into your future marketing plans.

Next Year, Small Should Go Big Do you think Small Business Saturday could be even bigger? This Portfolio.com article would agree with you. Take a look at how this reporter would change next years celebration to help get even more exposure. While we’re throwing out ideas on how to improve Small Business Saturday, we’d be interested to hear how you would improve the overall event. Please feel free to share your comments below!

Some small business owners fear holiday competition As many small businesses are able to thrive in a down economy, the unfortunate reality is that many are failing for a variety of reasons. This recent KRMG.com piece looks at one flea market shop that is in the midst of hard times due to growing competition from new “big box” stores and consumers taking less advantage of small businesses. Who do you consider your biggest competitor? The big box stores, or other small businesses?

How One Entrepreneur Promotes ‘Cultural Commonality’ Through Tea Outside of the obvious “generate revenue” and “be my own boss,” what do you want to get out of your micro business? For one entrepreneur, featured on Forbes.com, she wanted her tea shop to “promote international tea arts that enhances cultural commonality, health awareness and quality leisure.” Pretty impressive goals for a small business start-up. But the article showcases an important message that your micro business is exactly that, yours. You have the control to guide the business how you envision it and provide services with your own unique flair and creativity.

We’d be interested to hear how you spent your Small Business Saturday! Please share your comments below!

Global Entrepreneurship Week: American entrepreneurs driven by necessity, not opportunity

In case you missed our post on Monday, we are currently celebrating Global Entrepreneurship Week (GEW) across the World. Whether you’re interesting in taking your business globally or are simply curious in how other entrepreneurs act across the globe, this is a great week to get out there and find out what global entrepreneurism is all about. To take a look at what GEW events are happening in the United States, be sure to check out the GEW USA dedicated page. 

While we were taking a look around at different GEW happenings, we came across this interesting National Entrepreneurial Assessment for the United States from the Global Entrepreneurship Monitor. We were surprised to read that while entrepreneurship activity declined slightly in recent years, those who were creating a small, micro business were doing it out of necessity and not opportunity. In the United States, the percent of early-stage entrepreneurship activity that resulted from individuals searching for some source of income rose from 23 percent in 2009 to 28 percent in 2010. To put that figure in perspective for GEW, the worldwide average for necessity-driven entrepreneurship is 20 percent.

As a micro business owner, we thought you’d be interested to also learn from the Global Entrepreneurship Monitor that:

  • Early-stage entrepreneurs are positive thinkers — 23.3% expect to create more than 10 jobs with 50% growth over the next 5 years.
  • The gender gap is narrowing due to a slight increase in the activity of women combined with a big drop in the activity of men.  Entrepreneurial activity of women increased to 5.6% up from 5.0% in 2009, while men dropped from 8.8% in 2009 to 6.7% in 2010.
  • The U.S. rate of early-stage start-ups, when compared to innovation-driven economies around the world, was markedly lower than in the past. Historically, the U.S. has been the global leader in taking a start-up to the next level.

We’d be interested to hear your thoughts on some of these findings including if creating your micro business was more out of necessity or driven by other factors. Looking at the first bullet point, and having conducted research on the typical micro business owner, we’d say very few of you are part of the 23.3 percent who expect to grow their business beyond ten employees. In particular we’d be interested to hear from our Midwest micro business owners, whose region was part of the greatest rebound in entrepreneurship since 2009.

MBR: What Makes Entrepreneurship Work?

Hello everyone and happy Friday! We hope you had a great week. In this edition of the Micro Business Roundupwe’ve pulled together some great articles for you around what makes entrepreneurship work and why content is king of marketing; among other items . Also if you haven’t had a chance to check out our most recent Small Business Happiness Index results, be sure you do and let us know what you think. Have a great weekend!

A Short, Thoughtful Video on What Makes Entrepreneurship Work — Earlier this week Tim Berry, president and founder of Palo Alto Software shared this great short video (rounghly three and a half minutes) from  the Kauffman Foundation. The video, titled “We are looking for the Magic Sauce” is a great video about how small businesses can help grow their businesses. Take a look and let us know your thoughts! 

Why Content Marketing is King — Do you produce a lot of content, whether it be videos, blog posts, or posts/tweets, around your micro business and the industry you serve? Many feel that content marketing has surpassed other mediums as the preferred marketing tool for entrepreneurs. This recent Entrepreneur.com article takes a look at why content has been named “King” and how it can help grow your business effectively.

Sheldon Yellen: Why I Went on Undercover Boss – Many of you may know the popular show “Undercover Boss” that takes a high ranking official of a large company and places him in disguise among his peers to get a better sense of how his or her company is run “within the trenches.” Sheldon Yellen, CEO of $1 billion Belfor Holdings recently went on this television show and received a lot of valuable information about his company. Here’s a Q&A he did with Inc.com discussing his time on the show and why he was happy to have had the experience.

As Jobless Claims Rise, Businesses Try to Manage the Burden of Benefits — As a micro business owner, have you ever had to unemployment claims from an employee who left your company? Chances are you haven’t but it’s important to know the ins and outs of this complicated system so you know your rights and help protect your asset’s. This helpful New York Times article can help get you up to speed and provide a better understanding of how unemployment insurance work.

How Many Jobs Do Small Businesses Create? — There’s no secret that there are a ton of stats floating around about how influential small business is around creating jobs. But how many jobs do they really generate? According to John Tozzi in his recent Businessweek.com article, it depends on who you ask. Interestingly the U.S. government counts companies with fewer than 500 employees as “small businesses” its 65 percent statistic. As a reminder, Vistaprint measures a micro business as a company that has ten or fewer employees, including the owner.

Behind the Scenes of a Micro Business: YouBar

From time to time, Micro Business Perspectives likes to highlight a micro business to get a better understanding of how they came to fruition. This entry comes from Anthony Flynn, owner of YouBar (www.YouBar.com), an online custom protein bar company. You may recognize Anthony from the newest Vistaprint television commercials running live now. 

The idea behind YouBar’s custom protein bars was hatched in 2006 on a chair lift at California’s Mountain High Ski Resort.  My mom, Ava Bise, and I were both snowboard instructors back then (my mom still is!), and we ate a lot of protein bars up on the slopes so we wouldn’t have to stop for lunch. One day, while we were riding the lift together to the top of the mountain, we started talking about how neither of us had found the perfect  protein bar — and we started discussing what that would be.

We discovered that our ideal protein bars were totally different. My mom wanted nutrition bars that weren’t too sweet with lots of protein to fuel her days teaching snowboarding and belly dancing. Meanwhile, when I got off the slopes, I did other athletics, like marathon-running, so I needed high-carb, lactose-free bars (I’m allergic). We both wanted fresher bars with far fewer preservatives than any of the bars we could find on the market. 

Just like today, back in 2006, there were seemingly a million different protein bars available at stores. But strangely, as the number of different types of mass-produced protein bars on store shelves increased, the number of commercial bars that my mom and I wanted to eat actually decreased.  We were both fed up with having to adjust what we ate to fit the bars on the market, and felt that food should be designed for people’s appetites — not the other way around.

So my mom and I took the bar by the horns (apologies for the cheesy pun!), and we began making our own protein bars at home. “It was as though we’d died and gone to heaven,” my mom used to say, “Except for the dishes we have to clean!” We finally had protein bars with the exact ingredients that we wanted — free from preservatives and high fructose corn syrup. And they tasted delicious too.

Once we started making our own protein bars we found out we were not alone in our frustration with the mass produced bars. Almost everyone we knew lit up at the possibility of creating custom protein bars tailored to their own tastes and dietary needs. Before we knew it, we were making bars for all of our friends and family.  And so YouBar was born.

In early 2007, YouBar set up shop in an 800-square-foot kitchen in Hollywood and sold bars through a simple website that was created by one of my best friends from college, Garett Wenig.  Then, In February 2008, we had our breakthrough as a company. YouBar was featured in The New York Times, National Public Radio’s Marketplace and Daily Candy — all in the same week! Overnight, YouBar went from a couple orders a day to hundreds.

YouBar expanded its product line to include custom protein shakes in 2008 and custom trail mix and cereal in 2009 — giving our customers full control over three more on-the-go foods.  This last summer, we moved to a new 8,000 square foot facility in Downtown Los Angeles.

Today, YouBar is still exploring new ways of empowering our customers to customize their lives. We now feature dozens of organic, gluten-free, high-protein and low-calorie ingredients, and we always listen to our customers suggestions. At YouBar, our customers aren’t just customers, they’re the creative spirit behind the whole company: the recipe designers. As my mom always told me: “You are what you eat, so choose!

How to deal with unhappy customers on social media

One of the biggest benefits of social media is that it allows companies to interact with their customers in a real-time and personal manner.  Many of these engagements will be mutually positive and beneficial to both customer and business owners, but there are times when the feedback left on a social outlet can be negative.

Responding to positive commentary is easy. Dealing with criticism on the other hand, can be scary and challenging. While deleting the comment might seem like an easy way out, it is something that you should not do unless the posting is offensive, profane or defamatory. Before responding it is best to take a deep breath, take a step back and put yourself in the customer’s shoes and how you would feel in the situation.

When crafting a response or comment, our team has found the following three practices to be beneficial and can implement today when dealing with an angry customer. 

Have clear rules of engagement – Perhaps one of the biggest assets for any kind of outward communication is to have a clear set of engagement rules for your business and stick to them. For example if you decide that pricing or new product development is not something that you will not discuss publicly, let your fans or followers know that. It is also important to keep an even keel and treat all customers with the same tone. Talking to happy customers in one way and negative ones in another can put off your community.

You can see the Vistaprint rules of engagement on slide 11 of this social media presentation.

Resolve the conflict if you can – While all companies would love to have 100 percent customer satisfaction, the fact of the matter is that there will always be a handful of customers who are not happy with your services. When a customer comes to your social media channel for problem resolution it is important to help resolve the issue if you can. This can be anything from offering a complimentary meal if their steak is over-cooked or coming back to repaint a wall where a spot was missed.  Keep in mind that you don’t have to air all of the dirty laundry on your Facebook page. Sensitive issues or general customer service can still be managed efficiently with a personal call to the unhappy customer.

Let customers know you value the feedback – Both positive and negative feedback is a form of customers letting you know what you do well and areas that you can improve upon. It is important to let your customers know that you’re listening and value their feedback. A great way to show this is to inform them when their feedback has been put into action with your company. For example if a customer was annoyed at the checkout lines in your shop, you can send them a message or call them when you add express lines or quick checkouts for loyal patrons.

One thing to remember at the end of the day is that the negative feedback can often be more impactful for your business than the positive overtures left from your super fans. We’ve seen many examples where unhappy customers turned into vocal advocates after we helped sort out their issues over our social channels.

Have you interacted with unhappy customers on your social media properties? We’d love to hear how you interacted with them in the comments below.