Missouri Small Business and Technology Development Centers Blog

So Facebook is changing again, according to this morning’s news. The timeline will no longer be optional. Every action users take will be visible unless certain criteria are specified that block the posting of the information.

In other words, what was never really private is even less private than before.

Having done some research recently on social media policies for businesses, I am reminded by this Facebook change about the importance of monitoring not only what information you personally provide through social media, but also what information your employees, partners, customers, vendors and business associates share about your company.

Put another way, what conclusions will others make about you and your company based on those you are connected to via social media? It reminds me of the caution our parents always gave us about hanging out with the “wrong kids.”

That’s why it’s always a good idea to investigate anyone who reaches out to you or your company via social media. Whether they should or not, social media users form impressions of you based on your connections and followers.

For instance, if your connections include users who contribute worthwhile content, positive comments and thoughtful insights, it’s good to keep them close. They will likely lead you to other similar connections, and those can be good for your reputation as well as your business.

Steer away from users with strong opinions. You may agree, but is it worth the risk of having your organization associated with controversial issues?

A professional social media presence is not usually the place for humor. It’s easily misconstrued, and could inadvertently be offensive to other users. And we’ve all seen the users who repost or re-tweet virtually everything they receive, whether it’s relevant to their circle of not.

And then there are those who are only in it for the numbers, setting elusive goals to have 5,000 followers by noon tomorrow! They could easily clutter up your social network if you don’t monitor things carefully.

All of this leads to a recommendation to think your social media strategy and presence through carefully. Consider where you want to be seen, by whom and WITH whom.

The American Consumers Newsletter, released regularly by New Strategist Publications, is a goldmine of consumer behavior information. These folks are really skilled at spotting trends by studying all of the latest demographic and buying behavior sources and distilling that into quick reads that provide the latest information on who is doing what with their money.

For instance, in a recent release, we found these highlights:

In a study of the fastest-growing states, Washington, DC, tops the list at 2.7 percent growth in the past year, well ahead of the second fastest-growing state – Texas. Researchers believe the reason for the growth in DC is the capital’s “wired” culture, with plentiful jobs and even more plentiful opportunities for social connections.

Evidently our search behavior online is a leading indicator of consumer spending and could lend a hand to those working to spot consumer trends, particularly those that appear to be slower in evolving, such as weddings, having children or buying homes. It’s early in this field of study, but it appears that our internet searches can give retailers and others a “heads-up” about where we will spend our money.

The Census Bureau has released data that indicates full-time enrollment in four-year colleges is declining. Private schools are seeing an even greater decline. What’s up? Enrollment in two-year colleges and in graduate schools. (more…)

Now, from the category of feeling the customer’s pain, comes the following.

This time of year we all make resolutions to exercise more, but the weather in many parts of the world makes it difficult to get outside and maintain our running, walking or biking routines. The most common answer is the treadmill or bike in a nearby gym or in our basement. But, oh, the boredom. At least when you are running through your neighborhood or biking on the trail, you have something interesting to look at as you go by. On a treadmill or stationery bike, you have limited choices among something to read or a handful of television stations.

Now, Virtual Active and Bit Gym are providing another option. They have created a free app that allows users to travel virtually through famous cities at their own pace as they walk, run or bike in one place.

After choosing a workout type, users will see videos shot from a first-person perspective as they move through well-known locales. If the device is then placed on a bike or treadmill, the app monitors the speed at which the user is “moving” and adjusts the video display accordingly. Ten different videos are currently available at the cost of $7.99, but the app is free.

This is a great example of entrepreneurs identifying a common need among the millions of us who try to maintain a consistent exercise routine and then finding a way to meet that need in an economical and unique way. They have helped us treat the pain of boredom that comes with indoor stationery exercise, offering us another option to break up the routine and keep moving – virtually – through places we’ve always wanted to visit.

You can learn more at www.bitgym.com or www.vafitness.com.

With the advent of the New Year, millions of Americans make predictable resolutions to take better care of themselves. The advertising industry rakes in billions of dollars in revenue promoting a wide array of lifestyle approaches, more natural products and tips for healthy living.

According to Jeff Hilton, cofounder of Integrated Marketing Group, an agency that specializes in the natural health products industry, those clients are appealing to the demographic he refers to as LOHAS – the Lifestyles of Health and Sustainability market. Hilton says that nearly one-third of the nation’s consumers fit this demographic – well-educated and willing to spend sometimes substantial resources on sustainable living, healthy lifestyles and ecological products. These are the folks who shop at Whole Foods markets as opposed to the more traditional Kroger’s or IGA-type stores. They buy more organic products, and they appear to like more natural approaches to ingredients and packaging.

This comparison reveals a strategic marketing decision that offers an important lesson. When you enter a Whole Foods or Trader Joe’s store, you immediately sense the difference. These stores – and most any health-food store you might visit – have a more rustic “feel.” The packaging of products is not as slick as in a traditional food store, and the walls and colors and textures in the store displays evoke a rough and outdoor setting. All of that plays into the consumers’ desire to have a closer encounter with natural products. And they are willing to pay the price because they feel they are doing something good – and more authentic — for themselves and their families. According to Ron Torossian, author of a great new book on public relations, For Immediate Release, a traditional grocery store will sell about $400 per square foot, while Whole Foods will sell more than $800 a square foot.

The lesson is that when attempting to appeal to a specific demographic such as LOHAS, the message has to be fully integrated not only into the product, but into the packaging, the environment, the advertising, the social media and the buying experience itself.

Who is your LOHAS? How can you reach them more effectively in the message you send? Are you consistent on all of your messaging platforms?

Make a New Year’s resolution to ensure that your products – and your communications to promote them – are well-integrated and true to your mission and values. And prepare for a prosperous 2012!

One of my favorite things during the holiday season is the number of stores in our community that go all-out in terms of creating a wonderful, warm, welcoming and often nostalgic shopping environment. I tend to frequent shops that offer something special just for coming in. That something special might be mulled cider to sip while I shop, carolers, holiday give-aways, partnerships with a local non-profit seeking assistance during the holidays or a special discount for bringing in a food item for the local food pantry. Features like that might be especially important this year.

Although there was only a 1.1 percent uptick in retail sales in September, a research firm specializing in the retail industry foresees only a possible 3 percent increase in retail sales this coming holiday season compared to 2010, according to the website Main Street. That projected improvement would be lower than the 4.1 percent retail sales increase in holiday sales nationwide between the 2009 and 2010 seasons.

“The persistently high unemployment and fuel rates along with consumers’ conservative purchasing attitudes will affect spending this holiday season more than in recent years,” says Bill Martin, co-founder of the research firm ShopperTrak, based in Chicago.

With an increasing number of shoppers relying on online connections, the trend in shopping via the keyboard is expected to put a 2.2 percent dent in the number of people shopping in stores from a year ago. This trend will be accentuated by fuel costs and unemployment.

To counter this expected drop in traffic, store owners who want to build relationships with clientele should consider scheduling more in-store special events and themed promotions such as those mentioned above.

In our work with small businesses, we see all kinds of small business clients. They are as diverse as their ideas. Some are great. They work hard, do their “homework” and respect the time and expertise we use to assist them.

Others … well, not so much. They may be over-demanding, disrespectful of our time or unreliable. They may fail to show up at the appointment time, expect us to do everything for them instead of learning to do something themselves or simply waste our time in what engineers sometimes call “scope creep” – following rabbit trails and getting lost on tangents.

So, we talked the other day about how sometimes we need to “fire” a client. You may have the same experience in your business. Do you ever feel like you need to “fire” a customer?

Perhaps a customer is too picky, fails to pay on time, is never satisfied, doesn’t return calls or calls all the time. Is there someone who is more trouble than all of your other customers put together? Is there someone in whom you invest untold hours and unlimited energy in return for few or very low sales? Perhaps the best thing you can do is help them find another option for their business. (more…)

The leaves are turning, and taxes are the last thing on our minds. After all, we have the holidays to get through first, right?

Every year I promise myself that I will do a better job with my record keeping, and every year I wind up with the same toppling stack of file folders, post-it notes and paper clips. My system would give the most laid-back IRS auditor a heart attack.

Here’s how I – and millions more like me – can do better:

1. Have a designated place to keep all tax-related information. My system of just putting it somewhere in my office is not a very refined one.
2. Keep these records and the supporting documentation for at least three years: bills, credit card receipts, mileage logs and all proof of payment (including canceled or imaged checks).
3. Regarding property, keep any documentation of home purchases or improvements, stocks and other investments, IRA transactions and rental property records for at least three years after you sell or dispose of the property.
4. Small business owners have a bit longer burden. They are required to keep employment tax records for at least four years after the tax is due or paid, whichever is later. Other important records for business owners to keep include:
   • Gross receipts — cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
   • Proof of purchases — canceled checks, cash register tape receipts, credit card sales slips and invoices
   • Expense documents — canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
   • Documents to verify your assets — purchase and sales invoices, real estate closing statements and canceled checks

There’s a good video on recordkeeping on the IRS website at:
www.irsvideos.gov/SmallBusinessTaxpayer/StartingaBusiness/GoodRecordkeeping

We had a communications team meeting here yesterday, and I was reminded once again about why blogs are important.

People read them.

That says a lot about how people prefer to get their information. I read an interview with a small business owner recently, and she indicated that more than 40 percent of her customers tell her they came to her company through its blog. That same article repeated a statistic I had seen at least two other places in recent months – about 65 percent of small businesses now use a blog as part of their marketing efforts. And 57 percent of those report that their blog had definitely increased sales leads and helped them acquire customers.

Blogging is a cost-effective way to get the word out about your products and services. It enables you to leverage search engine optimization to lead customers to your website. And it offers a platform on which you can position yourself as an expert in your industry, which can lead to media inquiries, another promotional opportunity. If you add the ability to make comments on your blog, it helps you form relationships with your customers and adds personality to your brand. Market research reveals that customers who feel they “know” the company and the people in it will buy more and buy more often than those who do not have a sense of who the company is.

One cautionary note: while blogging is cost-effective, it is not without cost. The time to compose an entry and post it regularly takes time, planning and commitment.

But blogging is an easy way to add fresh content to your website on a routine basis, so it can add greatly to your marketing strategy. It can be a powerful tool in your toolbox.

I’m a fan of reality television. I probably shouldn’t be so free to admit that, but it’s true. However, when I say reality television, I’m not talking about Big Brother or The Bachelorette. I am a fan of the reality competition shows, like Iron Chef, The Next Food Network Star and Cupcake Wars. If you knew how poorly I perform in the kitchen, you would find that especially ironic.

I also love Pawn Stars, American Pickers and Gordon Ramsey’s series of cooking shows. In particular, I enjoy the ones in which he visits a restaurant and works to turn it around through a series of culinary and staffing modifications. What I find fascinating in these Kitchen Nightmares is the business lessons he teaches as well – lessons that may not seem apparent in the midst of menu changes and Gordon’s outbursts.

But now, there is a new kid on the block. Jon Taffer has a new show called Bar Rescue, which is being compared to Ramsey’s Kitchen Nightmares, only the show takes place in bars that are in need of a rebirth. The difference, apparently, will be that while Ramsey spends a great deal of time on the menu offerings, Taffer spends significantly more time on the business aspects, including management, marketing and HR.

For instance, Taffer shares that if a menu item has a box around it, sales of that item will automatically increase a minimum of 20 percent. He knows that customers’ eyes are drawn to the brightest spot in the room, so he advises shining lights on the liquor assortment rather than the fine art.

Taffer’s primary advice is to form connections with customers and employees. He reminds owners that what they think customers and employees want is his opinion; what customers and employees tell you they want is fact, and to clearly know the difference. He says he’s in the business of selling human reactions – to food, to environment, to atmosphere — and if something fails to illicit a reaction, you’ve failed. He hires people who are able to create those reactions, regardless of their resume or experience.

These are things an MBA will never teach you. They are the result of Taffer’s 20 years in the business, launching or salvaging 35 restaurants or bars.

Who says you can’t learn anything from television?

IBIS World, a terrific source for industry and market research, has just released its list of the top five industries to watch for business opportunities in the next five years. After analyzing 700 industry sectors for financial performance, growth trends and profitability, the following are the ones the researchers believe are best positioned to grow into this decade:

With the drive to extend broadband access to every part of the country still lacking the technology and with the continuing growth in the wireless market, the need for technological innovations continues to increase. This might take the form of new company formation focused on creating the new technology, or it may take the form of supplying technology support to other firms. Either way, there is rich opportunity for those who would consider IT support and consulting, fulfillment, data mining, online payment processing and lead generation. (more…)