• Don't sneeze on me

    Are you one of those entrepreneurs without a "sick boundary"?

    That's what Rich Sloan, founder of entrepreneurial website StartupNation.com, calls it.

    A sick boundary is a common sense strategy all small business owners should have. Here it is in a nutshell: When you're sick, stay home, don't work, get better.

    This is pretty simple, no?

    "Most entrepreneurs don't set the sick boundary," he surmises.

    I know, how the heck do you make money when you're not working? That's the entrepreneurial conundrum.

    A study by a U.K. flu pill maker found that:

    "Over a third of entrepreneurs would be tempted to return to working for someone else because of the benefit of paid sick leave."

    "The majority (57%) of entrepreneurs said they couldn't afford to take time off work through colds and flu, with 34% saying they would head into work regardless so as not to let customers down. An additional 22% of small business owners worried that taking a day off work due to a cold or flu would set a bad example to their staff."

    Even Sloan himself admits he sometimes losing sight of his sick boundaries.

    "Just having recovered from a bout with the flu, but having recently transformed StartupNation into a home-based enterprise, there was no escape? I couldn't 'stay home' and avoid work. I found myself doing the work, bleary and feverish anyway. In reflecting on that, I'll have to set better boundaries next time."
     
    A lot of small business owners aren't even big on their own employees taking paid sick time off. About 41 percent of you don't offer the benefit to your full time employees, according to a survey by the National Federation of Independent Business.

    I know what you're going to say, people abuse it.

    But come on folks, you know you can figure out who are the scammers pretty quickly.

    There are many reasons why you should stay home. Here's a great post on the issue from a colleague of mine who blogs at the New York Times.

    "It is NOT kosher to go to work sick and infectious. It's not considerate to the rest of the people you work with. That's my view," Sloan adds.
     
    Sometimes even bloggers have to take some time off.

    I started and stopped writing this blog post many times because I'm sick with the flu.

    I have a fever, probably a sinus infection and I spent most of the day coughing up a lung.

    If I had an employee or two, I would have felt pretty guilty about coming to work and spreading my illness. I am going to have an intern working with me soon, and you better believe I'll give her time off when she's sick.

    OK, so I'm not paying her. That's not the point.

    The point is, when you're sick you should stay in bed, right?

    That's where I'm heading right now.

  • Is it cronyism or just an SBA bungle?

    Turns out, the Small Business Administration's training budget went mainly to an inexperienced ex-Bush appointee.

    The SBA has a budget of about $1.5 million to help provide advice to small business owners, particularly minority owned, who don't quite understand the insanely difficult process of getting government contracts.

    The SBA uses that money to essentially hire businesses that have an expertise in teaching entrepreneurs how to compete for government contracts to provide training to disadvantaged businesses on how to navigate the system.

    But, for some reason, Vernon B. Parker, a retired administration official that Bush appointed, got most of the money, $1.2 million to be exact, even though he supposedly had no experience providing such training.

    What the heck happened?

    According to a New York Times article earlier this week, the reason isn't clear cut.

    The SBA administrator Steven C. Preston says he's going to investigate the matter.

    That revelation came after he was questioned by the House Small Business Committee on Feb. 7 about the lucrative contract Parker got for his company VBP Group. (Parker had served as assistant secretary for civil rights in the Agriculture Department.)

    Seems the contract award to Parker didn't raise any red flags at the SBA until House members cried foul.

    In a letter to the Committee's chairwoman, Nydia Velazquez, Preston says:

    "Based on the information provided by your staff, and some research conducted by my staff, I believe there is sufficient cause for concern over the events surrounding this contractor."

    There's a lot of money to be had in government contracts, and often small business owners -- especially those run by minorities and women -- are often left out of the loop.

    A bit of insight on how to get such contracts would go a long way in helping entrepreneurs figure out the process. Obviously the SBA and Congress thought it was a good idea to bring in government contracting experts to help them figure out the machinations.

    I guess no one bothered to do the research and figure out if indeed $1.2 million was actually going to an expert.

    Is it just me? Shouldn't the SBA be doing thorough investigations upfront, before they dole out taxpayer dollars?

  • No Web site? Are you crazy?

    There are far too many small business owners out there without a Web site.

    Why? It's too expensive. It takes too much time.

    These are pretty lame excuses in today's here's-a-free-website marketplace.

    I'm serious folks. There are lots of tech companies out there wanting to give away Web site-building products.  I'm talking free.

    Are they too good to be true?

    The latest product to enter the mix is Microsoft Office Live Small Business.

    (Disclosure here: MSNBC.com is a Microsoft/NBC Universal joint venture.)

    The New York Times David Pogue gave the product some kudos:

    Office Live Small Business is a centralized Web site where you can set up all of those small-businessy things — a Web site, an online ad campaign, e-mail promotions, in-company communications — all by yourself, even if you're not very technical. For the first time, these big-league tools are within your reach, partly because you don't have to hire somebody to set them up and partly because many of them are free.

    The changes from the original 2006 version are apparent immediately. Internet Explorer used to be the required Web browser to set up your online presence, but now Firefox is O.K., too. And that means you can take advantage of Office Live even if you use (gasp) a Macintosh. That's the New Microsoft, baby.

    OK, that sounds pretty good, but the bottom line is, whichever free Web site-building service you use, use one already.

    A website can only enhance your business.

    "My opinion is that any way for a small business to get online is good," says Matt Sarrel, the Tech Advisor for AllBusiness.com.

    "Many small businesses ask me if they really need to be online. What if they are a small retail store in a small town?  My answer is that customers turn to the Web today find goods and services the same way that they turned to the yellow pages 10 years ago.  If you're not on the web and your competitor is, then you just lost a sale."

    He's big on these free Web products, especially for smaller operations.

    As for Microsoft's product, he thinks it's OK and basically like "an online brochure.  It's not the best way to go, but it is a start and it is better than nothing."

    A step up would be a low-end hosting product offered by companies like Yahoo or GoDaddy, he adds. "For under $10/month a small business can set up a fully customized website.  Something like this will look much better, especially if they hire a web designer to make it look good and work well," he notes.

    But if you're going to be buying and selling stuff online and want serious ecommerce capabilities, get ready to pay upwards of $50 a month, Sarrel maintains.

    Here's link to a webcast he gave on why small business should get into cyber space already.

    Have you guys tried any of these free web offerings. What's been your experience?

  • The bright side of a recession

    I love that scene from Monty Python's "The Meaning of Life" where a bunch of guys are tied to crucifixes, and suddenly Eric Idle launches into the song, "Always look on the bright side of life."

    Here's one of my favorite parts of the song:

    If life seems jolly rotten
    There's something you've forgotten
    And that's to laugh and smile and dance and sing.
    When you're feeling in the dumps
    Don't be silly chumps
    Just purse your lips and whistle - that's the thing.

    And...always look on the bright side of life...
    Always look on the light side of life...

    Who's singing in today's economy?

    Bad economic times don't always have to spell doom for small business owners. Sometimes a bumpy road can be a boon for business.

    Let's think outside the box for a second. What type of companies will do well in a recession?

    First one that comes to mind – pawnshops.

    OK, I admit it. I once used the services of my friendly, local pawnshop when I was a young struggling journalist.

    It's not that these businesses are taking advantage of bad times. It's just that people turn to them during the rough spots. That's why liquor stores tend to do well.

    Also, collection agencies coming after deadbeats probably see an uptick in business. And I would think movie rental shops see more customers since no one can afford to eat out.

    I recently got an email about a small business that is prepared to make a killing now that the bottom seems to have dropped out of the economy.

    Speedemissions, a vehicle emissions testing and a safety inspection company with 38 emissions service centers in Georgia, Texas, Utah and Missouri.

    I know, you're all probably scratching your heads, but listen to this logic.

    In tough times consumers tend not to buy new cars so…

    "The longer consumers hold on to their aging cars, the more it literally drives business to my emission centers," says Richard Parlontieri, CEO of Speedemissions, based in Tyrone, Georgia. "New cars won't help my business. They don't need to be inspected. The older the car, the greater the need for mandated emissions testing."

    Based on Parlontieri's numbers there are 239 million cars and light trucks in the US, 71.7-million of them, or 30 percent, were made prior to the year 1996. What does that mean? Big time polluters, he says. Supposedly cars and trucks that have been on the road 11 plus years are the biggest culprits, he adds.

    "Older cars help drive my business," says Parlontieri.

    So, what's driving your business during this recessionary period? Come on, let's look on the bright side, or should I say the polluted bright side, like Parlontieri is.

  • The good news and bad news in Bush's budget

    You can't ever make everyone happy.

    President Bush's FY2009 budget appears to be a boon or disaster depending on the small business advocate you talk to.

    "This President is turning his back on small businesses at the very moment our economy needs them most," says Nydia Velázquez, chairwoman of Congress' Committee on Small Business.

    "We think it's a substantial win for small business," says Bill Rys, tax counsel for the National Federation of Independent Businesses.

    Funding cuts here. Tax breaks there.

    It's like a bad Ginsu knives commercial from the 1970s.

    Velázquez is upset Bush is slicing and dicing the Small Business Administration's funding by 15 percent and the agency's programs that serves entrepreneurs like you.

    Here are some problems she has point by point:

    Increase fees for the 7(a) Program: This is the SBA's primary loan program, providing loan guarantees to eligible small businesses unable to secure affordable financing from other sources.
    Raises interest rates for the Micro loan Program: Micro loans are a crucial source of capital for entrepreneurs who don't have strong credit histories. These loans have been particularly successful in helping women and minorities build businesses in their communities.
    Cuts Funding for the Women's Business Centers:  Despite a demonstrated need for this resource, funding is cut nearly 10%. The centers provide crucial counseling and development support for women entrepreneurs. This inadequate level of funding will prevent any new centers from opening.  
    Cuts Funding for Small Business Development Centers: Even as he charges SBDCs with additional responsibilities, the President cuts their funding by 10%. These centers have a proven record of achievement and provide crucial technical assistance to entrepreneurs—especially with respect to weathering an economic downturn such as the one the nation is experiencing.

    Rys, on the other hand, likes the increase of small business expensing for things like computers, office equipment and vehicles from $125,000 to $250,000.

    "Small businesses can now reinvest back into their businesses," he says.

    The increase in expensing goes into affect this year so all you business owners should take advantage of it as soon as possible because it may not be around in 2009, he adds.

    A one-year repeal of the estate tax and alternative minimum tax, or AMT, relief is also a plus in the budget, small business supporters contend.

    "The lower rates are especially important to small businesses, since the majority of small businesses pay their taxes at the individual level," says Michael Diegel, a spokesman for the NFIB. "Permanent relief from the estate tax means that family owned businesses will not have to pay this tax to pass their business on to future generations."

    Well, permanent relief of the estate tax may be a long shot, especially if a Democrat ends up taking over for Bush next year.

    But as for the last Bush budget, what's your take?

    Here's a link to some details.  Take out your Ginsu knife -- I know you have one -- and slice it up yourself.

  • Look beyond Super Bowl ads

    Just because companies shell out millions of dollars to advertise during the Super Bowl doesn't mean you have to buy the products or services they hawk.

    A Pepsi, okay.

    But business owners should be doing their due diligence when it comes to deciding whether to plop down their hard-earned cash on something that's going to cost more than a can of soda.

    Take the Salesgenie.com ads. I'm sure many small business owners out there had never heard of the sales lead Internet company until the firm's slick ads appeared during the battle between the Giants and Patriots.

    The ads probably got a lot of people surfing over to their site. How could they resist a cartoon panda?

    The one ad was about the trial and tribulations of Ling Ling's Bamboo Furniture shop.

    [YouTube:dsk3fZc2J_I]

    It was funny I must admit, although I thought it might rub some Asians viewers the wrong way.

    Is Salesgenie.com, a division of InfoUSA, worth it for small businesses?

    I figured I'd ask some people who have used the service and find out if indeed they would be a good resource for sales leads.

    I got a mixed bag of opinions:

    "We've tried leads from Salesgenie.com and InfoUSA in the past and they just don't work for our small business," says Corey Donovan, vice president of marketing for Vibrant Technologies, a reseller of IT hardware that employs 40 and is based in Minneapolis.
     
    "The leads I've seen from SalesGenie.com are generally fairly generic and could use further qualification.  If you're a small-business owner that just wants to get a name and number of the C-level execs at a company, I'm sure it works great, but most small businesses like ours try to serve up more sophisticated lead info to our sales reps.
     
    "We typically choose to buy targeted leads from companies such as Harte Hanks, where more information is provided about the account such as IT infrastructure detail.  The ideal leads provider can offer a wealth of contacts that don't regularly get to use the corporate jet.  Vibrant's typical client is a decision-maker seated down the ranks from the C-level totem pole, such as an IT manager or IT buyer and Salesgenie.com does not deliver strong leads in that area."
     
    Robert Smith, owner of Champion Media Worldwide, a search engine marketing firm in Rockton, IL., disagrees.

    He pays $180 a month for a package from Salesgenie.com, after putting off signing up for two years. Once he increased the number of sales people at his firm and was in need of lots of sales leads, he signed up. And? "Sales Genie has paid off big time," he says.

    He bought leads on authors and speakers to promote his business, and ended up securing 10 clients in six month and made $63,000 as a result.

    Another thing to think about is there are other services out there that are similar to Salesgenie.com

    Keith Rosen, author of "The Complete Idiot's Guide to Cold Calling, Time Management for Sales Professionals" suggests taking a look at the following as well:

    www.idexec.com
    www.goleads.com
    www.netprospex.com
    www.jigsaw.com
    www.hoovers.com
    www.dnb.com
    http://www.listengage.com/emarketing.asp
    www.maxprodata.com

    But he's not recommending any of these sites, which all have their advantages and disadvantages. Your job is to figure out which ones work for your business.

    If you want to do it the old fashioned way, actually finding your own leads, here are five strategies from Rosen: Become an expert voice; Prospect your prospects; Mine within existing accounts; Set up referral agreements with existing clients; and network and partner with other firms.

  • Starbucks' problems are a boost to little javas

    I recently visited a local Starbucks and I knew I was in trouble when the barista handed me my cup of coffee in three seconds.

    OK, I pay $2.80 for a tall latte, so the least the barista can do is take some time frothing up the milk. If nothing else it would help me feel a bit better about the extravagant purchase.

    To make matters worse, when I tasted the latte it turned out the coffee was very weak, and it didn't seem to have that Starbucks kick of yesteryear.

    By contrast, a latte at the local java shop around the corner from Starbucks, Brew Ha Ha, is always something special. The baristas even create works of art on the top of my hot drink, often a beautiful leaf.

    So, where do you think I'll be stopping by for my latte tomorrow?

    Duh, Brew Ha Ha.

    Image: A cappuccino at a Starbucks store
    Andrew Gombert / EPA file

    I have always loved Starbucks, and loved the fact that I could stop in one almost anywhere, get a cup of joe I'd enjoy and also get free Wifi access. But in the past year or so, as the company exploded in growth I was worried about quality.

    My mom, who visits me from New York often, takes the Jersey Turnpike that is dotted with Starbucks at many of the service stations. A few months ago she arrived at my home with an almost full cup of Starbucks coffee ranting about how bad it was. "There's no coffee in here," she said.

    Now, full disclosure here: My mom grew up in Istanbul Turkey, where they drink coffee that is strong as thick mud. It's the kind of coffee that sends you running to the bathroom.

    I figured she was just being hard on good 'ol Starbucks.

    Alas, the last few times I visited the mega chain I found the same problem.

    This is an opportunity for all you little mom and pop coffee shops out there to shine.

    There was an interesting story in the New York Times last week about this very thing, where a local java joint in Kansas City, Mo. eventually overcame the opening of a Starbucks right next store.

    Starbucks seems to be on the defensive.

    Recently, the company brought  back founder Howard Schultz to save the day. And the pioneer of ridiculously expensive coffee is doing the unthinkable…experimenting with a $1 cup of coffee and free refills.

    At a buck a pop, I might try them again. But I'm still expecting some coffee in my coffee please.

  • Don’t be a boob, get on YouTube

    Who would have thought that putting an iPhone in a blender would mean big business for a small company.

    But that's just what happened.

    Blendtec, a blender maker with a 190 employees, has become a sensation on YouTube, and it's all because the firm decided to put videos on the video sharing site of a guy blending outrageous things in Blendtec blenders to show the world how well they work.

    This video of an iPhone meeting an untimely demise has gotten millions of hits:

    [YouTube:qg1ckCkm8YI&feature=related]

    Now, I'm a little worried this video will give my husband some bad ideas. He's been ruing the day I got my iPhone because now I work 24/7. But I just had to share this marketing phenomenon with you.

    Why? Because it's an easy way for you entrepreneurs out there to do inexpensive marketing of your products or services.

    For Blendtec, it's paid off big time.

    "Sales on the web are up 500 percent since we started this," says Jeff Robe, director marketing for the firm.

    The campaign was the brainchild of the former marketing director George Wright who found out that the CEO of the company was privately blending an array of weird things in order to test out his products. Wright figured others would enjoy the spectacle and whammo, the YouTube blending extravaganza and the "willitblend" website were born.

    About 63 videos have been made, at a cost of about $50 each, and the items that have fallen into Blendtec's blender clutches, besides the poor iPhone, include golf balls, a Big Mac, and a broom handle, to name a few.

    "Someone with a small budget can get out there and expose their brand in a way that was never possible before," marvels Robe.

    According to comScore, a digital data company, 75 percent of Internet users in the United States watched videos online in November, averaging more than 3 hours of video watching per person during that month. That translates into 9.5 billion videos being viewed online in November.

    Google sites, including YouTube, were at the top of the list, with 3 billion videos viewed.

    "This exposes small businesses to a massive audience," explains Thomas Harpointner, CEO of AIS Media, an e-business solution provider. "If it's an ad that's well done, and it's at all funny, having a viral aspect to it, then people will share that with friends and family."

    Since YouTube is now owned by Google, he says, there's an added benefit of having your website search ranking increased on Google as well. And who doesn't want that?

    So guys, don't forget to include the name of your company and your website address on the videos you post.

    You wouldn't want consumers blending up an iPhone in some other company's blender.