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According to several recent surveys, such as NFIB Small Business Optimism report mentioned in my previous post and the U.S. Chamber of Commerce Q2 Small Business Study, small business owners are currently concerned about their tax requirements, a situation that has been exacerbated by the fact that the economy remains listless despite all the stimulus that has come its way.

But as we head towards the second half of the year, a greater tax specter looms large. This is the so called “fiscal cliff”- a challenging collection of tax breaks that will expire at the end of 2012, combined with a set of new taxes that will be going into effect in 2013. According to the Chamber of Commerce survey, a full 90% of small business owners are worried about the impact of these impending tax changes will have.

Barring Congressional action, here are some of the most pivotal tax changes waiting for us at the end of this year:

• Several Bush-era tax breaks are set to expire resulting in a 3 percent increase on individual income tax rates in 2013. Those making more than $388,350 a year, will see a 4.6 percent increase.

• Payroll taxes will increase to 6.2 percent from 4.2 percent. This will be particularly hard for small business owners who are both owners and employees of their businesses.

• The tax break for capital purchases will end. Under Section 179, if you purchased equipment for your business this year, you can deduct half the cost on your taxes right away and it counts as depreciation. In 2013, the depreciation rules will revert to their normal setup allowing you to only deduct the cost of equipment gradually, over the life of the asset.

• The Alternative Minimum Tax (AMT) may tax many middle class Americans, including small businesses. The intention of the AMT is to prevent wealthy individuals from using numerous deductions to significantly drive down their tax obligations so that they are effectively paying too little. But the threshold for those who are subject to the AMT is currently set at $150,000, an amount that will likely affect many middle class workers and small business owners. AMT also affects LLCs, partnerships, and S Corporations.

These tax changes combined with our difficult economy may be a one-two punch that will effectively knock out many small businesses- and that doesn’t seem like such a good move for our country.

A few days ago, the National Federation of Independent Business (NFIB) released their monthly Small Business Optimism Survey, and it ain’t pretty. Not only has optimism among small business owners taken a nose dive, but growth-building activities such as hiring, making capital outlays, and increasing inventory have seemingly slowed down across the board.

For the past few months the NFIB has reported a modest increase in optimism and with it a slow, but positive increase in growth-building activities. So the obvious question over here is: why is this happening, and perhaps more importantly, why now?

It is interesting to note that looking back at the results of the NFIB survey a year ago, some of the key statistics seem to have hardly changed. Namely, the most important business problem cited by survey respondents in June 2011 was poor sales (24%), followed by taxes (20%). This year, the numbers are 23% and 21% respectively. The only significant change was in the third option: government requirements and red tape, which jumped from 15% a year ago to 19%.

Given that most legislative changes on a federal and state level were initiated at the beginning of the year, again the question remains, why the sudden turn about now?

Aside from all the legislative talk that is going on (and has been going on for some time now) regarding health care, taxes, and credit card reform, perhaps this negative attitude can simply be pinned to the fact that many small business owners find themselves battle weary and stuck in a rut. Right now we are in the height of the summer season. It’s a time when the majority of businesses should either experience a typical, seasonal slowdown in sales, or, if they are a seasonal business, they are in the middle of their peak revenue days. We’re also holding in the middle of the year, the furthest point from New Years, when people tend to have a more hopeful and positive outlook.

If sales have not been good and now sales are even slower for seasonal reasons, or if the potentially lucrative summer season is fizzling (all of which are possible given that unemployment has remained stubbornly high while job creation continues to lag), the concerns weighing on a small business owner’s mind can easily become magnified. Taxes and government regulations become more of a problem when there is less money and resources to tax and regulate. Moreover, attitude can significantly dictate the actions being taken.

So, are the NFIB’s survey results really a cry from recession weary small business owners, or are they reacting to other factors? Only time will tell.

If your online business marketing strategy includes a business blog, then you may want to consider bringing in multiple authors for your content. Now, here I’m not talking about having the occasional guest poster, though there are definitely many benefits to such a setup. What I’m referring to is a team of writers, who may or may not be directly affiliated with your business, but they possess some expertise or knowledge that compliments your content production. They may offer multiple posts and even become regular contributors.

I recently came across this video at Social Media Examiner that describes several aspects of running a multi-author blog. It’s definitely a model of contant creation and management that some small business owners should consider.

Perhaps you don’t see the need for multiple authorship, or you may be reluctant to give away a part of your platform so that others can come and take away the spotlight. But if your business relies heavily on your online branding and marketing efforts, then you may want to think again. There are many benefits to running a multi-author blog:

• Writers will be more invested in your site (and your business) and will readily share content with their own followers and circles to both promote your business and their contributions.

• Having multiple authors creates a greater sense of community. They and their followers will be more invested in your site. There’s a sense of ownership because they have contributed towards it. This means not only more social sharing, but also more visits and quality commenting.

• Multi author blogs also come with some serious SEO benefits. If you have an active, contributing community then it ensures that your website is constantly being refreshed. These days, any known expert in search engine optimization will tell you that constantly producing quality, fresh content will give your website a leg up in the search results.

• By bringing in other writers it means you will be able to offer your readers and customers insight and expertise that you may be lacking. Outside writers also bring a different writing style and perspective which can give your content some balance and freshness.

• You will also have more time to run your business. Aside from having to look over posts that have been submitted for review, most of the process of having contributing authors upload content can be automated. With blogging platforms, such as WordPress, setting up a multi-author blog is relatively secure and easy to set-up and manage. Even an initial, automated screening process can be put in place.

In short, there are many compelling reasons to consider opening up your business blog to outside authors. If it is not something that would benefit your particular site, then consider hosting a forum or encouraging comments from your readers. Either way, your goal is to build an engaged community who will also be engaged with your business.

Last week, the Obama Administration announced that it is taking a series of “immediate actions to help small businesses” survive and thrive in the challenging economic conditions we, as a nation, continue to find ourselves in. But many small business owners are left wondering if Obama’s efforts are either immediate or enough to make any significant difference.

 

 

 

 

 

 

 

 

 

Many are quick to point out that some of the initiatives included in the supposedly new package were part of an already established executive order. Others, maintain that most of these moves will only benefit a relatively miniscule population of small companies, such as construction contractors.

Here’s a quick rundown of the Obama Administration’s small business initiatives:

• Paying government contractors quicker in hope that “those prime contractors will similarly accelerate payments to their small business subcontractors.”

• Recommend that Section 179 expensing remains at $250,000 for one year. This will allow small businesses to write off up to $250,000 in capital investments in 2013. If the extension is not approved by Congress then the expensing limit for small businesses is scheduled to decline to only $25,000 in 2013.

• Re-launch the SBA’s Small Loan Advantage program (now called SLA 2.0). Obama is pushing to raise the maximum amount a small business owner can request for an SBA loan from $250,000 to $350,000. Obama is also seeking to streamline the loan process, so it will be easier and quicker for lenders to extend loans to small businesses.

• For companies that need surety bond guarantees under $250,000 the SBA will be initiating the “QuickApp” streamlined application. This will reduce paperwork in the hope that small companies, particularly in the construction industry, will have an easier time competing for and winning additional business.

• Reduce paperwork for SBA’s Disaster Loan Program so that families and businesses will be able to more quickly and easily access support for rebuilding after a disaster.

• Make it easier for community development entities (CDEs) to bring in private investors for start-ups and small businesses operating in lower‐income communities by revamping the New Markets Tax Credit.

Will these moves truly help small businesses? I’m skeptical; but I guess only time will tell.

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It’s amazing how many small businesses (and even some of their customers) still cling on to old-fashioned, dusty, musty loyalty programs that fail to increase revenues and customer loyalty. Being weened from those cardboard punch cards and plastic loyalty cards takes some serious re-wiring.

 

 

This flies in the face of the fact that most customer loyalty programs these days fall flat precisely because the methods used are out of touch with today’s consumer habits. There’s none of the engagement that many consumers are so used to now.

Tying a traditional loyalty program to social and location-based check-ins can change that. But, just keep in mind, what most social media-niks and gurus won’t tell you is that in order to capitalize on all these “free” platforms you will need to invest a great deal of time and resources. Don’t expect the revenues to increase overnight, either.

Once you are open to changing the way you reward repeat customers and your “brand advocates,” and you are willing and able to set aside enough time and effort to initiate these changes, then consider the following five tips:

1. Understand social networking. Sounds simple. Yet many business owners plunge into various types of social media marketing without having ever used any of the services they are targeting. Each social network has its own flavor, its own population of users, and its own use. To fully understand the unique characteristics of any social media platform, you need to use it- and not as a business owner, but as an individual. Only then will you really understand how to use the platform in ways that will generate customer interest and reward your loyal patrons.

2. Decide which networks to focus on. In addition to the “marquee” networks, such as Facebook, Twitter, and LinkedIn, there are many, many social media platforms out there that small business owners could use to vamp up their loyalty programs. Some examples include: social recommendations sites, such as Gowalla and Yelp; social check-in sites, dominated by Foursquare; daily deals sites, such as Groupon and LivingSocial, and smaller, new kids on the block, such as Belly. If you are just starting out, pick two or three networks for your business where you will invest some time and money.

3. Deciding what actions to reward. The next big decision to make is determining which of your customers’ actions you would like to reward, and how you will reward them. Again, there are many directions that you can take, so it really depends on your specific business and the makeup of your target market. Some examples include: “checking-in” to your business at a specific time, tweeting a message about your business or leaving a review, coming into your business several days in a row or several times in one week.

4. Take a look at tools to help reward brand loyal customers. As you go about developing your new loyalty program, keep in mind that there are numerous tools and services out there specifically designed to help you with the process. This article offers a nice list of six such options.

5. Monitor analytics. Regardless of what platforms you are focusing on, your customer loyalty program is only as good as your monitoring of it. Why? Because often the information you can glean from monitoring the success of the program as well as how your customers are responding, who is responding, and when, can give you vital marketing clues. Your data has value because you can use it to make profitable business decisions. If, for example, you see that certain customers tend to check-in at specific times, then you can create specials geared towards them. Many social media platforms, such as Facebook and Foursquare have their own analytics systems. Others, such as Twitter, may require a third party app.

In short, to run a successful loyalty program these days you need to foster engagement- the kind of engagement that can only come about via social networks. Learn how to tap into this wave, and you’ll be in the best position to create a loyal customer following who will keep coming back for more (with their friends.)

When it comes to the latest and greatest in tech gadgets, there’s plenty to ogle at these days. But as a small business owner operating on a small budget, deciding which of these devices to invest in can be dizzying. With so many “must-have,” feature-rich products out there, where do you even begin?

 

Here is where the following five products step in. What I like about these devices is their versatility. To make the list, the device can either be a stand in for several other devices, or it allows you to multitask from many places and situations. None of the following products will break the bank, either.

Tablet Computer

A tablet computer is fast becoming a must-have tech device for a diverse population of small businesses. The touch screen, small size, and high-definition, media-oriented interface make these devices suitable for a whole range of tasks including: point-of-sale transactions, video conferencing, presentations, web surfing, and data production and management. Both the iPad 2 and the Kindle Fire offer a lot of value for a reasonable price. The iPad 2 is already “old news” for staunch Apple customers and that means you can get one for cheaper, typically $350 to $400. The Kindle Fire, may be lacking some of the features of the iPad, such as a webcam and microphone (though that may change soon), but at $199 a pop, it’s the cheapest option out there if you are in the market for a tablet computer.

Webcams and Conference Cams

Though many mobile devices these days come with a back-facing camera/webcam, if you plan on meeting with clients from a remote location, coordinating with multiple co-workers, conducting team presentations or meetings, producing training videos or webinars, then a good webcam and/or conference cam is essential. I personally like Logitech’s line of webcams (they have several options for under $100) as well as their BCC950 ConferenceCam for professional video-conferencing without the “professional” cost (It’s about $250).

Noise Canceling Headset

Want to meet with a client via webcam from your favorite noisy coffee shop, or take an important call while walking down a busy street and be certain that the person on the other end will hear every word clearly without any background noise? Any small business owners who need to make virtual meetings from a noisy location should invest in a noise canceling headset. The Boom is without a doubt one of the best devices out there. There are several different models to choose from with prices ranging from $150 to $250.

Ultrabook

An ultrabook is a cross between a souped-up netbook (remember those?) and a high-end laptop computer. What makes these devices so attractive is that they can carry a lot of computing power comparable to some high-range desktops, but are extremely efficient, compact, and travel-friendly without compromising on comfort of use. One of the most slick offerings is the Toshiba Portege Z830 which sports some really cool features, such as a spill-resistant backlit keyboard, a fingerprint reader, quick start up, 3 USB ports, and a 0.63-inch profile that weighs less than 2.5 pounds. The cheaper models cost $899. For the same price, you can also check out the comparable HP Folio 13-1020us.

Smartphone

Remember when cell phones were only used to make phone calls? These days, most smartphones are so versatile and powerful, that you could forget that they even make phone calls. When the iPhone hit the market in 2007, it changed the game for the mobile phone industry opening the door to a whole slew of competing models and price-points. These days, most small business owners cannot afford to be without smartphone. If you do not purchase any the category of products above, here is where you should not skimp. Your smartphone will pay for itself by as a data management tool, web browser, point of sale device, GPS system, etc. It’s like having a mini tablet computer in your pocket. As I mentioned above, there are many, many models to choose from, so you’ll have to do a little research to see which one works the best for you and your company.

 

These days a lot of attention is being placed on gaining the trust of your site’s visitors and the followers of your brand. But the Internet can be a fickle place. While building and cultivating that trust can take a tremendous amount of time and work, it can be destroyed in an instant by one careless act. To avoid watching all of your hard work come crashing down make sure you stay away from these five credibility destroyers online:

1. Your online profile is a mess. Now, I know what you’re thinking: “which online profile? I have many of them.” Really, I am referring to all of them. It’s the profiles you have on social media platforms, such as LinkedIn, Facebook, G+, and Twitter, it’s the profile on your website and that displays on the websites of others whenever you guest post, and it’s the profiles connected to any commenting system, such as Intense Debate. You should make an effort to ensure that these profiles are complete, consistent, and professional across all platforms.

2. Producing or being associated with low quality content. Content is definitely king when it comes to how people will view you and your business online. And what many people don’t realize is that it will define your online image as much as your profile picture and your stated education and experiences. If you produce low-quality or irrelevant content, then people will see you and your business in the same light.

3. Hanging out in Shady places. If you are trying to be high profile or attract clients online then expect that the majority of people will at least do a Google search for you to see what comes up and what sites you have a presence on. So watch where you hang out online. If you really want to frequent some potentially damaging sites, then make sure it’s with an alias.

4. Inconsistent or professional communications. When communicating with customers, peers, or other businesses, you should make an effort to maintain a consistent and professional voice. Messages that are ms-spelled, laden with bad grammar, or contain street language, may turn away a lot of people. This is all the more important if you are using a virtual assistant to handle some of your emails and social media activity. You should make it a point to screen such people and monitor the messages they posting on your behalf.

5. Claiming to be an expert in areas you don’t know about. Hand in hand with credibility goes the concept of authority- or how much expertise and knowledge you have on a given subject. Just claiming that you are an expert won’t get you very far today online. You have to prove your expertise with quality content, recommendations, and a social network that can vouch for you.

In short, if you have to play the credibility game to successfully do business online, then make sure you make an effort to come out a winner.

As the economy continues to struggle, many small business owners are finding that they have to compete more and more for consumers’ attention and wallets. It’s no secret that price can be a huge motivator in people’s minds today as they go about making their purchase decisions. In an attempt to keep their sales levels up, many business owners have slashed prices. But are these deep discounts helping or hurting their businesses?

Should You Lower Prices?

Let’s say that your big box competitor down the street decides to offer their products at fire sales prices. Should you do the same? Before you run to lower your prices in order to match your competitor’s offer, you shoudl first consider if it’s really going to help.

1. Take Stock of Your Business

The key is to understand your place in the market before you decide to change you current pricing.  You should ask yourself the following questions:

• Will a Price Cut Really be Effective in Bringing in More Revenue? Most businesses can categorize their clientele into segments, and each of those segments has different needs. For example, if you own a curtain company, you may have clients who want inexpensive, functional curtains or blinds, as well as those who are willing to pay for more expensive, specialty items. If you have big competitors that can afford to slash their prices, you may be tempted to do the same. But the truth is that you will only be able to lower prices in the category of less expensive products in order to attract price-conscious consumers.
• How Are Your Profit Margins? It doesn’t do any good to sell your products at a loss, no matter what your competitors are doing. Have an in-depth understanding of your cash flow and profit margins, and if a competing business lowers prices below that, then you just have to be real with the fact that you won’t be able to compete on price. In the case of the curtain store mentioned above, your efforts could be focused on either cutting costs, or even better, finding ways to add value to your products. Which brings me to the next point…
• Where are the places where you can add value? Not all consumers care about price alone;  many will buy according to the great customer service and value they get with their purchase. With this in mind, before you lower prices check to see how you can add value while keeping the price the same. With the curtain store, for example, you could hire customer service representatives who can help consumers match colors and plan the decor of a particular space. You could also offer to measure the windows for free, guarantee a quick delivery, or install inexpensive child-proof cord-holders. Just keep in mind, however, that you should do some research before making any offers to be sure that your customers will indeed see it as a value-added feature or service.

2. Consider the Competition

It’s also important to understand why your competitor has lowered prices in order to determine your reaction. The three most common reasons are:

• To Take Over the Market. Many times, fledgling companies think that if they can quickly gain a large percentage of the market share, they’ll set themselves up for future growth. However, many business owners fail to plan for what will happen when they are the biggest company around, but aren’t earning an acceptable profit. A price increase at that point won’t likely go over well with consumers, and they may end up shutting their doors. Those companies that stood firm during the price wars and continued to offer great service and a valuable product reap the benefits.
• To Create Better Purchasing Power. Manufacturers offer better prices to companies that buy more, and a business owner may decide to lower prices in an attempt to have the ability to order more product and get those prices. This can be a dangerous game, because once an owner achieves better wholesale discounts, he or she will have to maintain the volume in order to keep the discount. And to do that, sales may need to continue at an unacceptable profit margin.
• To Grow a Market. Sometimes business owners in a new market will offer low prices in order to make that market grow more quickly. For instance, some businesses offer discounts to new customers, or on new products to introduce them to their customers. This is typically short-lived, and once consumers have been made aware of the new product, prices are adjusted upwards.

Final Thoughts

It’s important to know what your business’s price points are, how your business is perceived by the public, and what your competitor’s motives are before you decide what your response to price discounts will be. Once you take all of these factors into account, you’ll be in a better position to make your pricing decisions. Remember, your goal is to ultimately increase revenue, and if you make a poor choice, you could damage your cash flow in the long run.

Author Bio: Suzanne Kearns is a small business contributor for Money Crashers Personal Finance where she writes about business finances, marketing, entrepreneurship, and more.