What is Your Marketing Resolution?

Marketing to small businesses can be tricky. We have been talking about that all year long. So, I ask you, what one thing will you do differently to reach this audience in a meaningful way?

Here's my resolution: Push harder to discover relevant and better methods to reach small business owners through social media tools/techniques on a hyper local level. It's possible, doable and will drive big results for companies in 2010.

What will you do?

Trying to Read SMBs

A story on Reuters today (http://www.reuters.com/article/idUSTRE5BS11P20091229?type=smallBusinessNews) stating that 20% of small businesses plan on hiring at least one full-time employee in 2010, a number that is up from 16% in 2009, reminded me how hard it is to get a read on the small business market. Some days we read about a survey that shows that SMBs confidence in the economy is up while other weeks it is down. We see that the amount of SMBs planning to hire is up, then we'll read another report showing that SMBs plan on laying of more individuals.

So, how do you read this as a marketer to the small business market? I would suggest that we first acknowledge that small business owners are also individuals. They go home at night and have the same concerns, fears and aspirations as other Americans. They are watching CNN or Fox Business, they are reading news reports in their local papers and online and they see their neighborhood friends lose their jobs or having challenges finding a new one. So it is common that the small business owner's point of view on the economy shifts as does consumer confidence.

As a market, I stress empathy. It is important to understand what these individuals are going through. If there is a lot of talk about additional government regulations that may impact the cost structure of their business, don't be surprised if their confidence is lower. Basically, as marketers, it is important to be aware of the entire environment.

So, back to the original story, will SMBs hire FTEs in 2010? My take: Yes, but look for this in the second half of the year. What does this mean for marketers? More opportunities for sales. Remember a new employee will need health insurance, a computer and software programs, training, a cell phone, perhaps a uniform, etc. There are all sorts of requirements for making the FTE a successful employee and that leads to sales opportunities for companies targeting this audience.

What do you think?

What Will Impact Marketing to SMBs in 2010?

Much like 2009, 2010 will have several things weighing heavily on small business owners that will make marketing to this audience challenging. Here is just three issues that will have small businesses distracted:

1) Finding customers. Each year, small businesses are concerned about finding customers and making sales. In 2010, this will continue to be a chief concern and with less customers, spending less, small businesses have fewer resources for purchasing goods, services and new technologies.

2) Navigating Washington. The health care bill is one issue while the minimum wage increase is another concern for small business owners. 2010 will continue to have small business owners trying to figure out new regulations and the impact/cost to their business. Basically, when small business owners believe there will be cost associated with regulation, it can have a paralyzing effect on their actions.

3) Access to capital. Even with the administration's appeal to large and community banks, lending still has been problematic and SBA loans still hard to come by. With tighter financial resources, it becomes harder to market services to small business owners.

This doesn't mean that small businesses with halt all purchases, but it does mean that the savvy marketer will understand and empathize with this audience. You will need to speak to this audience with full recognition of the challenging confronting this group.

What do you think?

09 Predictions for Small Business

Just read a great article reviewing Jim Blasingame's (http://www.smallbusinessadvocate.com/) 09 predictions for small business. Jim was spot on in 13 of his 16 predictions covering everything from government policy to economic recovery. Read the piece for yourself at http://www.commercialappeal.com/news/2009/dec/28/small-business-advocate-most-predictions-for/.

I certainly am no Jim Blasingame, but will do my best to outline 5 predictions of my own for small business in 2010.

1) Small businesses will continue to struggle to get credit and financing in the first quarter of the year, even with the Adminstrations push with both big and community banks help small businesses.

2) Starting in Q2, small business spending on technologies will rebound. A lot of technology purchases were delayed last year and small businesses are looking for all ways to get every advantage for productivity, etc.

3) Small business owners will disporporationally oppose the democratic party in the mid-term elections citing that not enough was done to help main street businesses during this recession.

4) There will be an increase in M&A activities in 2010 which could benefit small companies looking to cash out. Companies with unique IP and large customer bases will be in the best position.

5) Small businesses will look more and more toward social media to marke their businesses on a local level. Directory services and newspaper advertising will become a much lower priority.

Agree? What are your predictions?

Obama & Small Biz

The Obama administration unveiled a series of efforts yesterday to help small businesses. The issue at hand is that small business owners are still having considerable challenges accessing credit and capital. The move from the Administration focuses on:
a) Increasing the maximum loan amounts from the SBA
b) Making it more advantageous for smaller and community banks to provide loans to small businesses

As unemployment rates in the country are nearing 10 percent, President Obama is realizing that limited access to credit for small businesses means fewer jobs to be created. Small businesses still drive job growth and right now these organizations are still not at a point to hire.

My take: There are those out there saying that the President is trying to sway Senator Olympia Snowe's vote on health care reform by outlining a small business plan that is nearly identical to one suggested by the Maine Senator. My take is that this is good for small business. Small business owners have been hit hard in this recession and it has taken its toll with job loss. This access to capital should spur new spending for talent as well as investments that are overdue. AMI Partners is predicting a slingshot effect in 2010 with small businesses spending on IT and other purchases.

Rainy Days and SMBs

Hello and welcome back. My apologies for being away for such a period of time, but I am looking forward to getting back into the groove of things. Since I last posted on May 27th so much as changed and so much has stayed the same. Small businesses are still looking for credit, are being impacted by the economy and feeling the pinch by legislation such as the minimum wage increase or the proposal for universal health care. So, if you would have re-read some of my earlier posts, you would not have missed me at all. :-)

Today, there was a great piece in the Wall Street Journal by Sarah Needleman on small business, the economy and the weather. Their is an interesting correlation between poor weather and poor financial results for small businesses. When there is bad weather such as rain, fewer people leave their homes and go shopping. My father who owns and runs an auto upholstery business can tell me his outlook for the week based on the 5-day weather forecast. If there is rain or snow (his business is in the Chicagoland area) he knows there will be fewer walk-in customers. If it is a rainy spring, he could suffer the impact throughout the entire year.

In Sarah's story, small businesses are not only dealing with an economy recession like never before, but also with consistent poor weather conditions across the country. This combination is causing all sorts of issues for small businesses.

I would encourage all marketers to read the piece (http://online.wsj.com/article/SB125055005447938393.html?mod=dist_smartbrief) as it can help gain some sensitivity to what small business owners go through on a daily basis.

Brad

Social Media and Small Businesses

I just read an article by Gene Marks about small businesses and social media. Gene is a CPA and an author of a syndicated column, "Penny Pincher's Almanac." In the piece he suggest that social media has its costs for small businesses. He makes a good point, but also believe that the article does not go far enough. In a response to the article at http://www.businessweek.com/technology/content/may2009/tc20090522_078978.htm I suggested that there is some good numbers supporting that social media can be an effective strategy. Should it be the only strategy -- no. Are there other tactics/programs that should be considered separately or along side social media -- absolutely.

I would like to hear who is having a good experience with social media as a means to reaching small business owners.

What's Your Channel

You developed a great product, but you are surprised that you are having such a hard time selling it to small businesses. Before you start tinkering with your brand, logo, marketing approach and product development, take a moment to review your channel strategy.

It is important to determine your approach to selling to the small business audience early in your go-to-market strategy. You need to determine if you will:

a) Sell through retailers such as Staples, Office Depot, Office Max, Best Buy, CostCo, Sams or other retail locations.
b) Sell through and indirect channel of value-added resellers who not only sell your products, but also install, customize and train the customer on your solution.
c) Sell direct to customers through direct email/marketing campaigns or via your web site.

Your approach will be determined on how your specific audience segment likes to buy. Today, so many companies resist selling through traditional retailers citing the cost of entry as a barrier. Others complain that it takes too long to establish a strong VAR channel with committed and loyal partners. These two issues often lead companies to try to sell direct and drive small business purchases to a web site. This may work for many products, but often does hit the mark as a sole channel focus.

You may wish to take a multi-channel approach where you are implementing several strategies from direct to indirect models. This can be a strong method. Additionally, you may wish to evaluate less traditional methods for reaching your audience, via:

a) Trade Associations - more and more, trade associations are becoming a marketing and sales channel for companies selling to small businesses. Trade associations are looking for more and more ways to provide value to its members and special pricing and discounts on desired products can satisfy that strategy.
b) Less Evaluated SB Channels - Companies such as UPS Stores, FedEx Office, PakMail, PostNet, SOHO Hero and others specifically target the small business owner and home office user with shipping, copying and other services. These stores have retail storefronts and could be a good location to sell your products. I am convinced that some companies is going to figure out the value of these companies as a channel distribution partner and drive significant sales.
c) Portals - We outlined a couple days ago the value of portals as a co-marketing vehicle. Sites like AMEX, Intuit, SageSpark and others can provide a good distribution channel for reaching your target audience.

Whichever approach you take, recognize you will have to provide incentives and margin in order to secure committed engagement from your channel partner.

What do you think?

Memorial Day - Tweet to Remind

I am taking the day off from posting a perspective on how to best market goods and services to small businesses. Instead, I would like to encourage everyone to remember our fallen heroes, our great veterans and today's brave men and women in the armed forces. One great way we can support them is through Bob Woodruff's foundation and Tweet to Remind. Please go to tweettoremind.org and participate in the campaign.

Go Hyper (local)

Companies selling products and services to small businesses have to think about the approach they wish to take. Many organizations execute national campaigns whether via Internet, direct marketing, advertising or public relations. Companies often argue this approach for three primary reasons, including:
1) Don't want to miss a sales opportunity. There is a belief if you do not get your campaign nationally you are avoiding a number of good potential markets.
2) I don't have enough market research on my prospects to know where they are, who they are and how to get them to act.
3) Isn't this more costly?

The objectives are worth consideration and these often become real arguments and debates among senior executives. However, there are often real strong reasons to execute campaigns on a local or hyper local level. First, let's explore what these campaigns may look like so we are all on the same page. Here are just some examples:

Direct marketing. Purchase lists by zip code to match your target audience directly. We worked with one company selling to home businesses with the owner having an average income of $150k per year and lived in a particular location. Finding a prospect list to match can take some work, but marketing to the right prospects delivers a greater ROI in the end.

Advertising. When you are advertising on a local level you find out where your target audience (small business owner) spend her time. IYou ask if the audience is it at the Chamber of Commerce, at local high school sporting events or at particular restaurants/plazas. Armed with this information you can advertise to this audience. An advertisement in a local community newsletter or banner at the high school is a very low cost.

Public Relations. So often, companies are looking to get into USA Today or on CNN. Of course, coverage in these outlets can drive big business results, but don't forget the local media and consider the hyper local media. For example, a company in Alpharetta, Ga will have a better chance of getting coverage in the Johns Creek Herald v the Atlanta Journal Constitution. And, if your audience is in Alpharetta, this could be a great strategy.

Get Involved in the Community. It may seem challenging or hard to participate at local fairs and in local membership organizations, especially when you are the size of HP, Dell or Microsoft, but think creatively on how you can do this. It is good to sponsor the local chamber of commerce organizations, but can you be involved too? Often, companies targeting small businesses have a partner channel. Can you get this group mobilized to build your brand on this local level?

One company, CBeyond (www.cbeyond.net), is doing hyper local extremely well. CBeyond sells broadband and telephony services to small businesses. They have been growing in strong double digit figures over the course of several years. There are several reasons for CBeyond's success, but one contributing factor is that the organization is building based on a hyper local approach. Today, it serves just a few markets but is really knows those markets and is making significant inroads as an alternative to telecom and cable companies offering the same services. What this company as it continues to demonstrate how to market locally. Recently, it is adding to its local market approach with a national brand campaign. I really like this strategy as CBeyond now can communicate true successes vs potential.

If you couldn't tell, I am a big proponent of targeted marketing and when marketing to the small business audience, hyper local is a strategy well worth considering.

What are your thoughts?

Bonus Tips for Securing Media Coverage

Inc. Magazine has a great piece on how small businesses can secure media coverage. Eleven tips are outlined, including these:

11. Be Reachable
10. Get Online
9. Perfect Your Pitch
8. Show Your Face
7. Establish Yourself as an Expert
6. Don't Send Sloppy Copy
5. Know Your Audience
4. Tell the Whole Story
3. Plan Ahead
2. Use Distribution Channels
1. Respond Promptly

These 11 tips are very good and would encourage you to check out the details at: http://bigtweet.com/c/b/twitter/teammakerain/N7XKN. However, I would like to recommend two additional tips that could serve you well for securing your story in print or on a broadcast show. These include.

#12. Fit Within a News Cycle. There are certain stories that become hot and almost take over a newspaper or television program. One example is Swine Flu or H1N1. There was nearly 10 days of intense media coverage. If you have a relevant story, these times could be opportune for you. If you sell solutions making it easier to work from home, your company could be included in a story on how employees may be asked to work from home if a co-worker has been idenfitied with Swine Flu. You have to think creatively.

#13 (baker's dozen) Dedicate the Time. Trying to get media to cover your story takes time and real dedication. For those businesses that think getting into the local paper will take one quick email or phone call, they will be disappointed. Also, you may wish to engage with a public relations expert, consultant or agency that have trained resources and often have worked with your media targets on previous stories.

I hope this is helpful. What tips do you have?

Tweet to Remind

Today, I am taking time off from talking about small business issues and the opportunities to market to this audience segment to instead focus on a great cause called Tweet to Remind (http://tweettoremind.org/).

The following is from the Tweet to Remind web site:
Tweet to ReMIND is a celebration of support for the United States service men and women created by the Bob Woodruff Foundation’s ReMIND.org. ReMIND.org is ensuring our heroes return home with the assistance they need to successfully integrate back into society. Through the power of the social web, Tweet to ReMIND aims to raise $1.65 million by Memorial Day, May 25, 2009.

More often than not, the injuries we can see are coupled with the injuries we cannot. Hidden injuries, by their very nature, routinely go unnoticed. ReMIND.org is bringing these hidden injuries to light, so that we can care for all our wounded—and address all of their wounds.
1.65 million U.S. service members have been deployed to Afghanistan and Iraq since 9/11. More than 35,000 service members have been physically wounded. It is estimated that more than 320,000 have sustained traumatic brain injuries and more than 300,000 have psychological wounds.

Tweet to ReMIND empowers Twitter users to donate dollars and tweets in service of our injured service members, veterans and their families the local support and resources they deserve as they heal and reintegrate into their communities.

Disclaimer: Porter Novelli is working pro bono with Bob Woodruff to promote Tweet to Remind and raise money for the organization.

Portals are Good

Portals dedicated to reaching small and medium sized businesses seem to be all over the place. Companies like Intuit (http://community.intuit.com/start_and_grow), Sage Software (sagespark.com), Microsoft (http://www.microsoft.com/smallbusiness/hub.mspx), American Express' Open Forum (http://www.openforum.com/) and CapitalOne are doing a lot to bring a host of resources to small business customers even delivering solutions beyond what they sell.

Locations such as BNet (www.bnet.com), Bmighty.com and several others are often run by publications or 3rd parties and tend to focus more on tips, how-tos and feature articles on marketing and business management. These sites can be a tremendous resource to the small business owner.

So, are these sites effective in delivering a tighter, stronger relationship with customers? Do they promote additional sales of products and services? I argue that they indeed are valuable. They can be especially valuable as a marketing tool to reach your audience segment. If you are in the marketing department of an organization selling to small businesses I would encourage you to look at partnerships with these organization. Get your brand and services in front of your target audience. By being included or features on these portals, you are gaining credible third party implied endorsement, critically valuable if you are a small start-up firm.

Being included on these portals may not drive intense revenue opportunities at first, so please do not start counting on cashflow in the first months. Instead, you are placing your brand and products in locations that are completely target on your audience.

There is a way to make more of portals -- committed co-marketing. Like any initiative, you have to put some creativity and emphasis around an initiative in order to drive greatest potential. It is ideal if you can strike a deal to be on American Express' Open Forum, but also what are you doing to maximize this opportunity? Did you do a joint press announcement? Are you doing marketing to American Express's customers letting them know your firm/product is not available? Are you writing articles? Are you blogging about it? Are you driving traffic via twitter? Are you letting your own customer know?

All of this is important. Portals are great and securing your product and brand on some of the high profile/high traffic sites could be a game changer for you, but also remember it will take significant creativity and work to make the most of it.

What do you think?

Disclaimer: Porter Novelli has worked with several of the brands listed above.

Stimulus and SMBs

There is a great blog post today on US News & World Report by Steve King (no not the author of scary stories) that takes a look at the American Recovery and Reinvestment Act of 2009 and how it impacts/benefits small business. President Obama predicted that the stimulus package would create or save 3 to 4 million jobs. Steve King's research shows that within this number approximately 1.6 million of those jobs created or saved will be within the small business industry.

Already, there are 2,600 road construction initiatives being started as a result of the stimulus package and the majority of these contracts are going to small to mid sized construction companies. There is belief that the industries that will benefit the most from the package will be construction, clean and renewable energy and information technology.

Within the construction projects to be funded these are falling into broad categories including road and bridge, building and renovating, wastewater treatment facilities, military and other fed offices.

Within the renewable space, there is concentration on solar and wind projects.

And for info tech, the focus will be around infrastructure including broadband, medical records, education, etc.

There also is an area of the stimulus package that allows small businesses to take tax deductions on equipment purchases.

Finally, another way the administration is trying to jumpstart the economy and support small business is through freeing up credit.

So what does all this mean to marketers trying to sell products and services to small businesses? There are a couple things to consider, including:
1) Target small businesses that will be benefitting from stimulus money (construction companies, health care, etc) to sell your goods especially if you have services that will help support business growth, management, etc.
2) For companies that sell equipment, be sure you have knowledge of the tax deducations/credits your customers may be eligible for and make sure you have this information a click away.
3) Be patient. It is going to take some time for all the stimulus money to reach its destination.

Steve King, Barbara Weltman and Erik Page wrote a nice summary piece on the stimulus package and how it impacts SMBs. This can be freely downloaded at: http://myventurepad.com/submitform/stimulusebook50509/?reference=smt_sking


Steve King
blog: smallbizlabs.com
twitter.com/smallbizlabs

Small Business Seminar Alert

Disclaimer: Porter Novelli works directly with Capital One Small Business. The following information is being posted here b/c there is value in this webinar for small business owners as well as those marketing to this group.

Attn SMBs: CapitalOne bringing SmBizWeek 2 u: practical tips on finance, HR & mkting/social media in 5/20 webinar: http://budurl.com/55av

What a Pickle

There is momentum around a new bill that would allow employees to take up to seven sick day of paid leave. This bill has been around for some time, but during the Bush administration did not get much momentum. Now, President Obama and First Lady Michelle Obama are putting new energy around this initiative. There is a fundamental belief that it is not only the right thing to do, but a potential pandemic like swine flu, you do not want to have workers making health decisions based on their weekly income.

Opponents to the bill, including the National Federation of Independent Business, also cite the current environment specifically economic conditions as a reason not to pass such a bill at this time. Small business owners believe this measure will be too costly during a time with revenue constraints.

There is a great article on this topic by Steven Greenhouse of the New York Times. Check it out at: http://www.nytimes.com/2009/05/16/health/policy/16sick.html?_r=2&bl&ex=1242619200&en=f6b83c745499e551&ei=5087%0A

Small Business IT Spending Taking a Hit

Today, Charlene O'Hanlon authored an article for Channel Insider (visit: http://www.channelinsider.com/c/a/News/Small-Business-Taking-the-Biggest-Economic-Hit/?kc=CITCIEMNL02242009STR1) that focused on IT spending among small and mid-sized companies. According to Channel Insider's 2009 Market Pulse survey, IT spending among SMBs is down 28.3 percent. Essentially, companies are extending the life of their current technology solutions or redeploying older technologies to get through this economy.

So, what should value-added resellers and systems integrators targeting the SMB market be doing during this time of penny pinching? Here are some thoughts:

1) Look at growth segments? Really. Yes, there are still some growth segments. If you do not currently sell solutions to the government sector, you may wish to evaluate this audience.

2) Follow the stimulus package. I would encourage you all to find out where the stimulus money is going? What will be funded in the coming months/years? Green/alternative energy. Public works. Biotech. Research. Etc. If you do not target these sectors, look into it.

Remember, during these times it is as important to play offense as it is to "wait it out" and cut your costs.

What do you think?

Wearing New/Many Hats

Small business owners have always been required to wear many hats -- owner, cfo, hr, etc. Drew De Silver, business reporter for the Seattle Times, had an interesting story about how small business owners take on new responsibilities as they need to reduce staff overhead costs. Check out the article at: http://seattletimes.nwsource.com/html/businesstechnology/2008771277_bizfinance22.html

As these small business owners have even more on their plates, what things can you be doing to market to this group? Here are some tips to consider:

1) Increase productivity message. Small business owners (SBOs) will be willing to listen to how they can get more done in less time.

2) Has to be easy. Now is not the time to be selling products or services that require an investment in time, resources or energy. SBOs want a solution that is seamless and not complicated. If you have a solution that requires a lot of commitment, you'll have to strongly communicate that the end benefit will be worth the pain.

3) Little cost. Right now, SBOs are having a challenging time getting an increase in their line of credit or even a small business loan. Therefore, future returns on their investment will be a harder sell than a solution that is less costly up front.

What are you seeing that is working today? Give us your views.

What have you been doing?

How have companies been marketing to small business owners during this recession? Well, companies have seemed to fall into a few categories, including:

1) Some marketers have disappeared. Even though times are tough, it is not wise to stop all marketing efforts. Small business owners may have slowed their purchasing of goods, services, technologies, etc, but they will come back.

2) Nothing different. In this category we are seeing some financial institutions are treating this economy as business as usual, but just reducing their external marketing efforts. This is an interesting tactic and one that may be a bit foolish. As a marketer, it is important to demonstate that you know what your audience is going through.

3) We'll help you through it. This approach has strong merit as long as you can deliver your marketing campaign/strategies through genuine concern and interest. Some companies have changed messaging, others reduced prices and some have come up with specific programs to navigate these trying times.

The smart companies will balance the need for short term profits with building long term market share.

Implementing a Local Market Campaign -- Start in NC

Some many marketers targeting small business owners are taking a local or hyper-local approach to their campaigns. Just a few years ago, marketers were taking a less sophisticated approach by dividing small businesses by employee size. The thought was that the size of the business would dictate purchasing habits for products and solutions from technology to insurance.

Since that time, marketers have become more intensely focused on understanding small business owners and what motivates them. They want to know what organizations they below to, where they network, where they shop, the type of entertainment they seek and so much more. This has driven a lot of marketers to spend more time in the small business owner's backyard.

Based on a recent survey from bizjournals (http://www.bizjournals.com/), marketers may find gold in North Carolina. Two cities, Raleigh and Charlotte, ranked #1 and #2 in the bizjournals survey of best place for small business. These cities have seen significant growth in population, small business ownership and general employment.

During a challenging economy, knowing where to market is critical to drive best ROI in the shortest period of time possible. Many marketers tend to pick the top populated cities like NY, Chicago and LA when crafting local campaigns. Certainly, these cities deserve considerable evaluation, but also look beyond the large locations and you may just find some gems like those in the South.

What local campaigns have you implemented recently? What are your best practices?

Keep Marketing During Tough Times

There was a great article in the NYTs yesterday that talked a bit about keeping your visibility consistent even during tough times. The premise of the piece by Paul Brown (http://www.nytimes.com/2009/02/03/business/smallbusiness/03toolkit.html?_r=1&ref=smallbusiness) is that the economic downturn will not last forever. When we come out of this period of time, there will be pent up demand for goods and services. He discusses the importance of making sure that your brand and products are top of mind when consumer start spending again to take full advantage of the recovery period.

What do you think?

Did Marketers Forget Small Business Owners during the Big Game?

I love watching the big game. I am crazy about professional football and love that the NFL doesn't leave naming a champion to some convoluted system like is done in the college game. And, of course, I look forward to all of the advertising breaks inbetween all of the on-field action.

Did you know that 46% of small business owners describe themselves as a fan of the National Football League? That is nearly 1 out of every 2 business owners. Now, that 46% also tracks to the general population at large, so there may not be a huge insight just yet.

But with all of this interest in football, I counted just a couple of commercials targeted specifically to business. Yes, there were those ads by the job search companies (Monster.com and Careerbuilder) but that was targeting you the worker not the small business owner. There was the advertisement just before kick-off by Avon encouraging people to take control of their life and own their business.

I didn't see a lot of advertisements specifically targeted to the small business owner. What this a missed opportunity? I would have thought we would have seen something from marketers of computers, shipping services, banking services, loans.

So, what do you think???

This week starts off great wtih the Small Business Summit 2009 on Tues, Feb 3 in New York. There is an all-star cast of presenters and speakers with content aligned with how small business owners can navigate through these tough economic times. From managing customers to sales tactics this conference covers a lot of ground. For more information, please visit:
http://www.smallbiztechsummit.com/2009/agenda.html

Economic Stimulus Does Little for SMBs

Representatives from several organizations including the National Federation of Independent Business, National Small Business Association and The Small Business and Enterpreneur Council voiced concern in a Wall Street Journal post (http://blogs.wsj.com/independentstreet/2009/01/29/the-economic-stimulus-bill-whats-in-it-for-you/) stating that the economic stimulus program will do little to help provide relief to small businesses. Specifically, these organizations and small business owners were looking for tax certainty and relief in the areas of payroll and health insurance.

Small business advocates are concerned that the stimulus program is aimed too squarely at big business and industry bailouts with little focus on the market that drives job growth. Others were concerned that the package didn't do enough to get cash in the hands of consumers who can then purchase goods and services.

If small businesses are struggling, it makes our job as marketers to reach this group. What are you seeing? What are small business owners buying?

What do you think of the proposed SBA chief?

Karen Gordon Mills is President Barack Obama's nominee to become the head of the Small Business Adminstration. Ms. Mills currently is the president of private equity firm, MMP Group in Brunswick, Me. Early word on Ms. Mills is that she is an extremely intelligent and capable woman who will passionately promote the needs of small businesses. Others believe that she will help promote woman-owned small business.

What do you think?

More or Less Small Businesses in 2009?

Interesting debate here around the idea of the number of businesses that will go out of business this year and that will start. According to leading analyst firms such as AMI Parnters and IDC, in any given year approximately 400,000 new businesses will start while 200,000 will shut its doors.

Personally, I think these numbers will be exaggerated in 2009 on both sides. First, I think that small businesses are feeling the pressure of consumers who have reduced their spending. You read stories on a daily basis about small businesses trying to lure people into their stores or restaurants with amazing deals (buy one dinner, get one free). It is becoming harder and harder for businesses to make payroll on a weekly basis. There will be causalties.

On the flip side, the number of people who have been laid off from major organizations (GE, Dell, others) first go into the job market looking for a new company to work for only to find that jobs are harder to find and competition for those jobs even greater. After a few months, the job seeker turns to looking at alternative methods for making a living. This often leads to an increase in consultants, new businesses and people buying into a franchise.

I think we will see countless small businesses start in 2009. That will give many organizations who target/market to small business owners significant opportunities. There are so many needs when starting a business including getting a loan or capital, securing legal advice and an accountant, incorporating your business and purchasing technology from accounting software and CRM solutions to point of sale and telecommunications. There will be the need to market your business through directory services, development of a web site and so much more. This will lead to many opportunities for many types of companies targeting the small business market.

What do you think?

Small Business Owners and Social Media?

Alright, social media and digital media seems to be all the buzz these days. And, why not? Implementing digital campaigns to reach your target audience online is cost effective and can stimulate that peer-to-peer influence we hear that is so important when marketing to small business owners.

But when it comes to implementing programs, I often hear companies say that social media and digital campaigns are for marketing to consumers. They say, small business owners simply do not spend time on social media sites or blogging. They challenge the notion of developing and implementing programs that may only reach 5 to 12% of the target audience. Reasonable?

However, we know for certain that small business owners are spending at least 2 hours a day on average outside fo work on the Internet. They get there news here. They connect with business customers, familiy and friends here. They do research on products and services to buy here. And, they get away for a few minutes of there busy day here.

The point is that organizations who desire to reach small business owners should truly consider social media and digital campaigns. What do you think?