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Small business owners wondering how they can harness the power of Twitter to increase sales and build their business connections can find several great lists floating around the web. For example, check out here, here and here.

Almost all of these tips essentially boil down to one point: success with Twitter as a business tool revolves around building and maintaining your relationships- something which on the surface seems surprising given that posts are limited to 140 characters. How much can one actually do in 140 characters?

 

As it turns out, quite a lot.

 

Twitter is a dynamic online social experience that provides a real-time wellspring of business networking, and customer interaction, as well as critical information and insight from industry leaders and experts. But underlying all this, Twitter allows a community of users to engage with each other in a quick and easy way.

 

Below is a summary of the most essential tips for small and home business owners looking to break into the Twitter scene for the first time. In a following post, I will examine several Twitter apps which can significantly enhance your Twitter time and information management.

 

1. Develop your business’ profile page. If you are new to Twitter then your first order of business is to build up your profile page. This is the page that other Twitter users (i.e. your potential business contacts and customers) will consult to find out what you and your business are all about. One of the biggest pieces of advice regarding this page is to let your personality or your business’ brand image shine bright. For a few stunning examples, check out @idesignstudios, @sitepointdotcom, @spurrachel, and @Doubleolee. If you are not the creative type, there are several web apps available, such as, Free Twitter Designer, that can help you create a customized profile page background.

 

2. In the beginning… silence is golden. Some new to Twitter may be tempted to jump right in and start tweeting away. But before you seriously begin offering any comments, ancedotes, links, or responses, it is a good idea to spend a couple of weeks just following a few of the conversations. Getting used to the tone and flow of a thread before posting will help you to keep your tweets focused and relevant.

 

3. Build up your followers list slowly. Don’t start following a hundred people on your first day. Begin adding friends and family, then work your way out. By slowly adding people or businesses to your followers list, it gives them the time to get to know who you are and maybe reciprocate by following you.

 

Another tip: If you are specifically looking to add a certain group of people to your followers list, for example, other business owners in your state or county, then it is also a good idea to send out a tweet letting people know that this is your intention. That way, if you add anyone from this group they will know why they were added.

 

4. Stay away from spam, and over self-promotion. Though advertisement and self-promotion have their place on Twitter, it should be done carefully and in moderation. One of the biggest turn-offs in the Twitosphere (followed by a quick click on the “unfollow” button) is being bombarded with sales pitches.

 

5. Focus on building relationships. One of the best ways to build connections and increase visibility on Twitter is to take some time to scan the message stream and retweet or reply to the posts of other users. Specifically look for places where you can offer help or advice. Engaging with your followers is also important. Don’t forget to acknowledge anyone who took the time the RT one of your tweets.

 

6. Keep your flow of tweets interesting, consistent, and well-balanced. Ideally, your tweets should be a mixed bag of links, “status” updates, responses to other users, interesting retweets, and even a bit of chatter. The goal is to be approachable, engaging, and genuine. If you have a good sense of humor, use it as long as it is tasteful.

 

7. Use Twitter with time and content management tools. Twitter can be a really big time guzzler. After setting up your profile page and adding a few people, businesses, and/or communities to your follows list, you will want to put some controls in place to ensure that you are not spending too much time with the site. Your “tools” can be as simple as having a daily schedule with your “Twitter time” blocked out at set intervals, or you can use Twitter in conjunction with any number of Twitter apps, such as tweetdeck and tweetbeep.

 

8. Don’t be afraid to think outside the box. There are many creative ways that small businesses can use Twitter. Some examples include: running a Twitter contest, offering discounts to Twitter users, sending out real-time updates of what’s happening in your business, as well as tweeting new product and service announcements.

 As the year and a decade come to an end it is time to both reflect on the past and plan for the future…

I recently came across this survey conducted by the Pew Institute which examined popular attitudes on the most notable technological and social changes of the past decade.

According to half of the respondents the current decade is considered the worst in 50 years. This sentiment is further reflected in the expressions they used to describe it- words such as “downhill,” “poor,” “decline,” “disappointing,” “turbulent,” and “chaotic.”

For many small business owners the past few years have been particularly brutal as consumer confidence and spending dropped and the flow of credit was reduced to an almost indiscernible trickle.

But not all is doom and gloom. The last few years have brought to small businesses a wide range of technology that allows them to significantly improve operations and successfully compete with bigger companies. The recessionary economy has also created a crucible of sorts giving rise to new business ideas and opportunities. Moreover, the spate of corporate bankruptcies that occurred toward the end of the decade left gaps for nimble and advantageous small businesses to fill.

Given all of these trends, I have composed a list of what I feel are the ten most important resolutions for small business owners in 2010.

 1. Acquire healthy business habits: The healthier the core business operations, the better the chances that your business will survive and thrive. This means proper cash flow management, disaster planning, content management, and theft prevention. Where growth is a possibility, look to diversify what your business offers, add more value for customers, and make sure that the level of growth is sustainable.

2. Invest in an Internet presence. Having and sustaining an online presence is an important tool in marketing and image branding. But, small business owners should keep in mind here that quality is more important than quantity with all the bells and whistles. To be effective, your web presence does not have to cost you a fortune in either time or money. Maintain a simple, up-to-date website. Make sure that your business is listed in the major and local online directories, as well as Point of Interest databases. Where appropriate you might want to initiate an email marketing campaign or upload informative videos on to YouTube.

3. Get on the social networking bandwagon: Social networking sites, such as Facebook and Twitter, have been generating a lot of buzz over the past couple years by providing an easy way for people to connect and share information. Many businesses big and small have joined the fray, by for example, maintaining their own Facebook and Twitter profiles.

Now, with Google’s recent announcement of its new personalized search results, social networking sites are poised to play a more prominent role in bringing traffic to your business website. One cool feature: enter a Google search query and you will see relevant updates and suggestions from your friends in Facebook, MySpace, and Twitter. It’s definitely a trend worth noting and incorporating into your online marketing strategy.

4. Bring on the gadgets: From smart phones, such as RIM’s Blackberry series or the ubiquitous iPhone, to netbooks and pocket projectors, the market is literally flooded with some really powerful and handy electronic devices. Where budgets are tight, look to bring in multi-functional equipment.

5. …And load those gadgets up with some good apps: Your equipment is only as good as the tools and programs you put on it. Make sure to check out any free open source versions of popular software programs as well as a slew of low-cost apps that can turn your phone into a powerful business tool.

Though the next four resolutions fall under good business practices, they deserve specific mention:

6. Don’t skimp on security: Make sure your sensitive business information is protected from would-be thieves and hackers-especially if you conduct business online.

7. Be selective in your hiring: The job market is currently flooded with qualified individuals seeking employment. But even if your applicant pool has grown don’t shy away from conducting standard background checks such as calling references and conducting online searches.

8. Build good business credit: With the credit markets holding at a virtual standstill, maintaining a good business credit history has become all the more vital to accessing financing. It also paves the way for future business-to-business transactions.

9. Revamp your debt collection policy: Times are tough, and it may be affecting the ability of your valuable customers to pay up on time. It is therefore all the more important to re-evaluate and refine your debt collection policy to ensure that your cash flow is even and your customers remain loyal.

10. Look on the bright side: Even if your business has been forced to cut back or put off growth opportunities, look for ways to maximize the situation, such as seeking out cost reductions and redefining your company’s product or goals. 

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Online banking may offer a great deal of ease and convenience, especially for owners of small and home-based businesses, but it exposes the account holder to a sea of unscrupulous fraudsters and hackers. In one fell swoop, a business’ entire financial health can be compromised and a business owner’s personal assets can be decimated.

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Many small business owners may not be aware that according to federal law losses in private consumer accounts due to fraud are typically covered by the banks that hold them. The Federal Electronic Funds Transfer Act (EFTA) requires banks to reimburse consumer fraud victims within 10 days of a reported incident of fraud. Commercial accounts on the other hand receive virtually no protection from fraud or theft.

If your small business relies on online banking, then pay attention to the following tips to help keep your assets and your business safe:

1. Know your bank’s policies. Make sure that you are clear about what your bank is doing to protect your account and what it will do if your account is compromised by hackers. You should also know how your bank wants you to report any unauthorized charges or suspicious activity.

2. Choose a bank that has a solid fraud monitoring system and policy. One way to reduce your chances of becoming a victim of fraud is to do business with a bank that takes a proactive approach to online banking fraud. It should have a reliable monitoring system in place to detect suspicious account activity and should have a history of responding quickly to suspicious behavior.

3. Keep your anti-malware software and firewall protection current. Make sure that your system and browser software is up-to-date, and that you have installed reliable anti-virus, anti-spyware, and firewall protection.

4. Monitor your accounts for suspicious activity. The sooner you catch and respond to any irregularities and missing funds in your account the greater your chances of recouping the lost money. If your bank offers transaction alerts, then make sure to sign up for this service.

5. Don’t easily give out sensitive information. Be on alert and act with caution if either your bank or credit card company asks you to verify your account information. Keep in mind that they already have this information on record.

6. Be mindful of your paper trail. Printed banking and credit card information should be disposed of properly (i.e. shredded or rendered unreadable). To be safe, where possible you can opt to receive electronic statements instead of paper ones.

7. Conduct transactions from secure computers. Use your own computer and where possible avoid conducting sensitive transactions on the go over a wireless Internet connection. You could also have one computer that is specifically dedicated to online banking transactions and purchases to reduce the chances of picking up a virus.

8. Pay attention to the what you open on your computer. Only open emails from people you know and trust, be careful with emailed links, and pay special attention to email attachments. Make sure to scan attachments even from people you know before opening them. Make it a practice of avoiding and even blocking pop-ups.

9. Pay attention to the look and feel of your bank’s online system. If the logo suddenly seems out of place or the bank seems to be asking you for seemingly irrelevant information then it could be a red light signaling that something is off.

10. Personalize your security controls. Some banks allow their account holders to customize their online transactions (i.e. disabling some of them, while enabling others, or placing certain restrictions or requirements) so that actions, like international wire transfers, for example can only be done in person.

 

Earlier this year I posted a series on credit card reform and suggested that it would be a rough road ahead for many small business owners… unfortunately I was right.

Though the credit card reform act of 2009 may have put a spotlight on some of the obscure and outright abusive business practices embraced by the credit card industry, most of the attention has been duly heaped upon the consumer. But the truth is that small business owners are getting the worst of the credit reform fallout, and unlike consumers, they are being hit on all sides.

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In October, the National Small Business Association presented the results of a survey it conducted to determine the usage of credit cards among small businesses as a quick source of financing. It also provided a telling snapshot of the way credit card companies are treating their small business clients.

According to the NSBA survey, in April of this year 59% of small businesses have used credit cards to finance their operations in the past 12 months; this is up from 49% in December 2008. Underscoring the struggle of most small businesses to get adequate financing in an economy that has gone belly-up, this increase in credit card usage is occurring even as more small businesses report that credit card terms have gone from bad to worse. In fact, according to the NSBA survey in the last six months alone, 75% of the small businesses reported that their credit card terms had worsened.

One of the most difficult changes to swallow has been a flurry of credit limit reductions. In the past year, 41% of the small businesses surveyed stated that their credit limit was reduced- often without any overt reason. Not only do these credit limit reductions effectively reduce the amount of available financing, but they can also negatively effect a business’ credit score by creating a higher outstanding debt-to-credit ratio. Since the business is then considered to be more risky, it prohibits financing from other sources.

Other reported changes in credit card terms include: an increase in the interest rate (63%), switching from a fixed to variable interest rate (23%), and increasing the minimum amount due each billing cycle.

All of this comes at a time when fewer small businesses are paying off their credit cards each month. This year 40% reported paying their monthly credit card balances in full, down from 50% a year ago. And this is exposing countless small businesses to the same unscrupulous business practices that have gained so much attention over the last few months. Of those who carry a balance: 33% reported receiving statement after due date, 48% reported that the due date seems to randomly change, and 57% reported receiving statements too close to the due date to have it mailed on time.

What’s more, since some companies advertising business credit cards are in fact (according to the fine print) offering little more than a fancy personal credit card, such practices can be devastating to the business owner’s personal credit rating.

But the credit card industry does not stop there when it comes to small businesses… According to the survey, 57% of small businesses accept credit card payments from their customers. Each time a customer swipes a card to pay for goods and/or services, the merchant pays a small processing fee to the banks and and credit card networks. These so- called merchant interchange fees have tripled in cost since 2000 cutting into profit margins at a time when every cent counts.

Bottom line for small business owners: when it comes to the credit card industry, the cards are stacked against them.

In a previous post, I listed my picks for the top small business blogs. But as the economy continues to sputter along and the credit markets remain tight (especially for small businesses), I wanted to highlight those blogs that are specifically targeted to those small and home-based business owners committed to bootstrapping- those who seek to avoid outside financing, while focusing on how they can use their available resources creatively and efficiently.

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The following business blogs offer a vast collection of techniques, advice, and knowledge on cost-cutting, raising capital, creative marketing, and efficient operations:

1. SOHO Tools, News & Technology. This blog hosted by Wendy Piersall offers a a collection of ideas, business book reviews, product reviews, technology tips, coupons, and freebies to help the aspiring entrepreneur build and run a business on a shoestring budget.

2. The Entrepreneurial Mind. Hosted by Jeff Cornwall, director of the Center for Entrepreneurship at Nashville’s Belmont University, this blog discusses various topics in entrepreneurism such as, Bootstrapping, Global Entrepreneurship, and Learning from Failure.

3. Toilet Paper Entrepreneur. Mike Michalowicz offers a “get real” approach to starting and running a new business with a collection of helpful tips and resources.

4. Duct Tape Marketing. Hosted by John Jantsch the founder of Duct Tape Marketing, this site focuses on marketing techniques and methodology for small businesses operating on a shoe string. The blog contains insightful articles and commentary by several small business marketing gurus.

5. Neville’s Financial Blog. Follow Neville Medhora as he documents his business goals, strives to increase his net worth, and even conducts “experiments.”

6. The Simple Dollar. The Simple Dollar is an insightful personal finance blog offering advice on managing debt and living cheaper.

7. Productivity501. This site offers an abundance of information and tips and help people increase their personal productivity.

8. Free Money Finance. This comprehensive personal finance blog offers information and advice, commentary, news, resources, tips, and tricks.

9. Wise Bread. Wise Bread is a valuable forum for personal finance including tons of advice on frugal living, consumer deals, as well as a section dedicated to small businesses.

10. How to Change the World. Guy Kawasaki, co-founder of Alltop, offers on practical tips on technology, marketing, and innovation.

11. Vest Pocket Consultant. Blogger Rosalind Resnick offers her expertise and insight in the areas of business planning, finance, and marketing to start-ups and growing small businesses.

12. College Startup. This blog offers advice for entrepreneurially-inclined college students trying to make money while they study.

13. FiveCentNickel. A clear, and highly informative blog about personal finance and general money matters.

14. Mint Life. This blog offers a lot of useful information on personal finance tips, trends, and news.

15. I Will Teach You to be Rich. Ramit Sethi offers advice and tips for saving, investing and negotiating as well as how to live a richer, happier life.

16. Practical Ecommerce. This site offers blogs and articles on a variety of topics affecting online merchants.

17. Gulliver. Gulliver is a valuable source of business travel news, service reviews, and thoughtful discussion

18. Seth Godin’s Blog. This blog written by marketing expert, author, and entrepreneur Seth Godin, is in itself a lesson in branding and image development. It will challenge the way you think about marketing yourself or your business.

19. Small Business Growth Strategies. Blog Hosted by Stephanie Chandler provides thoughtful commentary, advice, tips, and news related to running and growing a small business.

20. The Frugal Entrepreneur. This blog, by Adam Gottlieb, offers a wealth of information, tips, and resources to help the cash-strapped small and home-based business owner. Be sure to also check out Adam’s collection of essential free business forms and templates.

For numerous small business owners who are being heavily affected by the current economic turmoil, the road ahead remains tough. Though the Fed (with a lot of help from the media) has been all too happy to call an end to the U.S. recession, the statistics paint a grimmer picture: the rates of unemployment, home foreclosures, and bankruptcy filings are all soaring. This comes as the credit markets remain tight and the cost of health care continues to prohibitively climb.

With all the focus being heaped on government-sponsored economic stimulus, it would seem that the issue of small businesses should be front and center. After all, small businesses in the U.S. account for half of the GDP and over half of the nation’s employment. Shouldn’t the Administration in the White House be concentrating on easing the burden for the nation’s smaller companies?

So far real help has been slow in coming, and this raises an important question: Is President Obama really concerned about the plight of small businesses?

The answer, in my opinion… not enough.

Let’s look at the facts:

In a previous post, I pointed out that government money did not seem to be reaching the small businesses who needed it the most. But underlying this article was the fact that it was Senators John Kerry (D-Mass.) and Olympia Snowe (R-Maine) who worked to secure the 45% funding increase for the SBA’s core small business programs in the first place. Under the President’s plan, several small business loan programs were effectively reduced or nixed completely.

And then there is the recent annoucement that the Administration will ask Congress to raise the loan limit on the 7(a) lending program to $5 million; on the 504 program from $4 million to $5.5 million, and on the microloan program to $50,000.

This was a blatant nod to Republican Senator Snowe, whose support is crucial to the Administration in the area of health care reform- President Obama’s pet project. This seems more like political maneuvering rather than a serious commitment to helping small businesses.

In order to truly hasten an economic recovery, Obama may need to re-evaluate his interests and start showing small business owners and their employees that he cares.

As the year begins to wind down, it’s time to turn our attention to the 2010 tax season. For many small business owners emerging from such a difficult economic year, the mere thought of taxes may conjure up a hearty serving of distress and anxiety.

 

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But the truth is that the IRS has been offering some flexibility lately when it comes to fulfilling tax obligations. Being aware of these leniencies and knowing how and when to use them beforehand can reduce a great deal of pressure, and can help you to plan out the most appropriate payment strategy.

Here are some options for those small business owners who think they will be unable to pay their taxes on time:

Filing for an Extension

If you are lacking the full amount owed come tax time, then you have the option of filing for an extension on April 15. You should make every effort to pay what you can at this time the IRS asks that you give a good faith estimate of the amount you expect to owe and pay whatever you can at that time since interest and late payment penalties will be added to any additional amount due.

Approximately 45 days later the IRS will send an invoice for the remaining amount, and will go through two or three more billing cycles before requesting a formal payment schedule.

Installment Payments

For those who will need to pay their tax obligation slowly over time, filers have the option of requesting a formal installment agreement using IRS Form 9465. This form can be filed separately or sent with the tax return in April. Here you can indicate how much you can afford to send the IRS each month and on what day you want to make these monthly payments. The IRS will usually accept an installment agreement if the amount owed is less than $25,000 and the balance is to be paid within five years. For those who owe less than $10,000 and fulfill other requirements, acceptance is guaranteed.

You will be charged about $50 to set up the installment plan, and interest as well as other penalties will be assessed until the tax obligation has been completely repaid. Moreover, the The IRS may even allow a skipped payment or a reduced monthly payment amount without automatically suspending the Installment Agreement, if the filer is experiencing financial hardship.

Tax Settlements

For those who will be unable to repay the amount owed even with an installment plan, the IRS may accept an Offer In Compromise. Much like a regular debt settlement that one would obtain on an outstanding credit card bill, for example, the tax payer would offer to pay an amount that is less than the actual sum owed in order to settle the bill immediately. Those seeking this option will need to complete a financial statement along with other important paperwork and send it to be reviewed by the IRS. To be accepted, however, you must have significant proof of your inability to cover the total outstanding liability.

For more information on delayed or partial payment of tax obligations, be sure to check out the IRS website. You might also want to take a look at the “What If’s” of An Economic Downturn page which answers some of the questions people have during the recession.

The cost of business travel can really add up, especially when travel is a frequent part of doing business, and it can put a great deal of strain on tight budgets. Here are a few simple ways your small business can save money on business travel expenses without cutting back on trips:

Renting Cars

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• See if your business can sign up for a frequent-rental program to take advantage of free rental days or rental discounts.

• Instead of renting cars by the well-known companies, such as Hertz, Alamo, or Budget, seek out the smaller companies that operate away from the airport or travel center. (Many of these companies may even provide a courtesy shuttle to the airport).

• Stay away from the “extras,” such as rental insurance, EZ Pass transmitters, GPS systems, and an advance fill-up of gas.

• Pay attention to the fine print for restrictions, such as mileage caps.

 Food

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• If you will be staying in a particular area for more than two nights then you should look into hotels that offer extended stay rooms. These rooms come equipped with a full kitchenette. You could head for the local grocery store and put together your own meal at a fraction of the cost.

• Take advantage of the free breakfast offered at many hotels

• Stay away from using the hotel’s room service to avoid paying unnecessary room service fees as well as exorbitant food and beverage prices.

• Where possible, bring along your own snacks to help stem a munchies attack.

Air Travel

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• Save money on airline tickets by booking trips a month in advance. Where possible, schedule flights for the middle of the week (Tuesday- Thursday), and try to fly into alternative airports. For domestic flights, look into discount airlines, such as Southwest and JetBlue.

• The Internet is a powerful tool in helping small businesses locate low-cost airfare. To make your searches more efficient, go to Kayak.com. This site sifts through airfares as well as hotel rates, and other travel products from over 140 different sources. Choose the offer you want and Kayak.com will direct you to a site where you can buy the ticket.

• If you will be bringing a lot of luggage with you, then be sure to check the luggage fees beforehand and shop around. Where possible try to avoid checking in luggage.

• If you will be driving your car to the airport, then be sure to park it in a long-term, off-site parking lot to avoid an outrageous expense when you come home.

Even as the economy shows subtle signs of a future recovery, many economic experts agree that it is far from over and that spells bad news for small businesses in search of financing. Lenders continue to be tight-fisted when it comes to extending credit, and this dearth of financing has dealt a tremendous blow to many small businesses in desperate need of funding as the recession drags along.

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In such an environment it is important to be aware of what lenders are looking at when they receive a loan request. The following are ten signs that will alert small business lenders to the idea that their may be a serious problem with the business and possibly cause them to reject a loan request. While many of these signs may seem obvious, others may not. So take note. If any of these situations apply to your business then be prepared to have an explanation available for the loan officer.

1. There is a significant drop in sales. Though many businesses (especially those involved in retail) are experiencing a decrease in sales traffic, a sudden drop in sales could be a sign that your business is out of touch with consumer demand or is losing its market share.

2. The business is unable to pay off bills on time. A sudden inability to cover expenses could be the result of lower sales due to the recession and an increase in the cost of materials and supplies; or it could be a sign of poor cash flow management

3. There is a sudden increase in personal expense write-offs. Though claiming personal expenses can be for legitimate reasons, a sudden or disproportional increase in personal expense write-offs can be a sign of fraudulent activity.

4. Insufficient funds are leaving the business. The owner may be trying to cut costs, preserve cash flow, or prepare for later expansion, but it can also be a signal that anticipated financial trouble looms ahead.

5. Critical equipment is being sold. Under-utilized or outdated equipment may be sold to increase cash flow. It could be the intention of the business owner to replace this equipment with newer technology. But lenders may see this as a desperate attempt to bring money into the business.

6. The business has a significant increase in debt. Though the increase in debt may be necessary to cover a temporary cash short fall, or it may be the prelude to an expansion, it can be a sign to the lender that the business is starting to flounder.

7. Cash reserves are plummeting. Like the situations above, this could be a sign that the business is headed for financial trouble.

8. The operating cycle is increasing. A business’ operating cycle is the average time between acquiring raw materials or inventory and receiving payment for the goods/services provided to customers. Business owners need to pay attention to their cash flow, inventory flow, payables and receivables. If the cycle has started increasing then be prepared to offer an explanation.

9. There has been a significant increase in legal fees. Perhaps a business owner needs the assistance of a qualified CPA or attorney to provide counsel on a range of issues, such as taxes, business structure, acquisitions, or intellectual property protection. But it could also mean that a lawsuit is brewing.

10. A change in ownership. A recent change in ownership can also put off lenders. They may want to know if the new owners have management experience.

In short, to secure the decreasing pool of small business financing, business owners will need to start thinking like a lender. By spotting potential problems before hand, you can increase your chances of getting approved for that loan.