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Archive for December, 2010

As Analysts Look Back on 2010, a Year of Innovation is Seen

Posted on December 31st, 2010 by The BizFilings Team
Category: Business Inspiration, Grow a Business, Small Business, Start A Business, Work For Myself

Looking back on 2010 shows a year rife with technological innovations – the Apple iPad, the rise of Groupon, the Android Phone and new mobile devices such as near-field communications – as well as indications that the economy may begin to grow in strength in 2011.

For one, 2010’s holiday shopping season was a tremendous success over previous years, breaking records and suggesting vast improvements in consumer confidence, while a number of key small business confidence indexes foreshadow growth in that sector as well.

There has also been the emergence of the New York City startup scene – a highly tech-focused market that has even come to rival Silicon Valley, with bigwigs such as Google and Facebook swooping into to pick up real estate and talent.

Still, California will remain a tough contender when it comes to tech and entrepreneurship and LLC formation, as John Babcock, founder of venture capital firm Rustic Canyon Partners, told SoCalTech.com.

“I think the top influencers of 2011 are secretly working on the next great applications of the internet that will drive disruptive new business models,” he said. “We’ve seen a lot of innovation come out of Los Angeles in the past few years, with Demand Media, Socialvibe, Zag, ShoeDazzle, Factual and many others. Pay attention to what Los Angeles entrepreneurs are doing, it’s going to be an interesting 2011.”

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A Stalled Economy Does Not Imply Stalled Entrepreneurship

Posted on December 31st, 2010 by The BizFilings Team
Category: Business Inspiration, Small Business, Start A Business, Work For Myself

As U.S. small businesses employ nearly 50 percent of the private workforce, many analysts are predicting that economic recovery will come primarily from this sector.

However, unemployment remains leveled at a stubborn 9.8 percent, and many economists such as Federal Reserve Chairman Ben Bernanke have claimed it may take several years for unemployment to drop to pre-recession levels.

As a result, many Americans who are fed up with being unemployed and unable to find a job are launching their own businesses to get back to work. And they do not have to do much research to find success stories of adverse entrepreneurial conditions. Howard Schultz of Starbucks, Mark Cuban of Broadcast.com and Steve Jobs of Apple and Pixar are just a few sources of inspiration.

“With the majority of jobs created by small businesses (and all businesses start small), you may find that you and several colleagues can come together to create financial independence for yourselves – and jobs for others,” writes Lea Strickland in The Street. “Even in tough economic times, new businesses and smart businesspeople can succeed, grow and thrive. It takes planning, realism and hard work.”

Forming a company is not a simple task, but given the right attitude and ample effort, adverse economic conditions can make for just the right entrepreneurial circumstances.

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Tips for Launching a Restaurant in a Down Economy

Posted on December 31st, 2010 by The BizFilings Team
Category: Business Inspiration, Grow a Business, Small Business, Start A Business, Work For Myself

In a down economy, there are a number of challenges to starting a business. For one, banks tend to tighten their lending policies when times are tough, as do most investors. There is also weakened consumer spending and confidence to consider – a problem that will likely limit any startup’s revenue potential.

For the restaurant industry, there are even more obstacles, as the budget-heavy and transportation-dependent nature of restaurants leads to unpredictable fluctuations in spending and overhead costs.

But Cecelia Washington managed to grow her franchise, Cecelia’s Bakeshop, right through the recession. Launched in mid-2006, the company specializes in vegan, gluten-free and other intolerance-based baked goods and sweets.

“I think that people with gluten intolerance, food allergies or other health issues need treats, too,” she told the Atlanta Journal Constitution.

As living proof of her values, Washington argues that with devotion and the right mindset, a down economy can be an opportunity to grow, especially for restaurant entrepreneurs.

“If you start a business when the economy is down, you have time to build your brand. You could do the farmers market circuit,” she added. “Then you’ll benefit when the economy takes an upswing.”

But ultimately, Washington points out, it is about the service itself. “Having a unique product distinguishes you … If it tastes good, people will follow.”

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Small Businesses Discover Value in Paying it Forward

Posted on December 30th, 2010 by BizFilings Team
Category: Business Inspiration, Marketing, Promote My Business, Small Business

Just because the holiday season (a.k.a. the season of giving) has passed, doesn’t mean you have to give up on giving.donations

In fact, goodwill is timeless. And for small business owners, supporting charitable causes goes a long way.

The Los Angeles Times recently released a story on how many businesses are pursuing a charitable tie-in “that makes sense for their business and helps their bottom line.”

For instance, the article references restaurant owner, Jim Roman, “who said he has given away hundreds of meals of barbecued ribs and chicken to support neighborhood charities and school clubs in the 18 months his small eatery has been open, even though he is barely breaking even.”

So why does he do it?

Jim responds, “But you know what, it’s always harder to give when you can’t afford to, but it’s the right thing to do and it’s opened a lot of doors for us.”

That’s right. Giving can be a part of creative marketing.

I personally appreciate what a regional fast food restaurant down South did to support community while promoting their business.

They joined forces with a local Christian radio station to launch their goodwill campaign. The local Christian radio station then posted a “note” on their website in a PDF format. Participants would then print it out and hand it to the drive-thru teller at the fast-food place. The certificate tells the cashier that you, as a participant, are paying for the car behind you. The cashier then hands that piece of paper to the car behind you which explains why he or she receives a free meal and about the radio station. It encourages him or her to call the radio station and record a response to what happened.

And here’s why it’s a win-win situation:

  • The restaurant is advertised on a local radio station with an attentive audience
  • The restaurant gives away nothing
  • You, as a participant, could promote your small business as the buyer of a customer’s meal – small investment for free publicity
  • Patrons as well as non-regular customers will go there in the hopes that they will be the lucky receivers of a free meal
  • The radio station has its name, call letters and phone number handed to someone who just received free food
  • The note promotes engagement, inviting the customer to call the station to share the experience.

Try adopting one of these methods to work for your small business and share in the pay-it-forward phenomenon.

P.S. Did you know Random Acts of Kindness Week is Feb. 14-20?

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Startups Should Outline Their Company Goals from the Beginning

Posted on December 30th, 2010 by The BizFilings Team
Category: Business Inspiration, Form My Business, Grow a Business, Small Business, Start A Business, Work For Myself

Forming a company is a complicated process, but it is usually guided by a founding goal, principle or ambition that inspired the entrepreneur to start a business in the first place.

These “missions” serve to highlight a company’s purpose, beyond profits and bottom lines. They remind owners and employees alike what their company is about, and can even help guide the decision-making process, as money is not always aligned with the aims of its foundation, especially in the wake of the U.S. financial collapse of 2008.

Google accurately represents this challenge with its mission “to organize the world’s information and make it universally accessible and useful.” Meanwhile, the multi-billion corporation has also been known to more facetiously tout the mantra “Don’t be evil.”

What most defines the culture and purpose of a company is decided by the entrepreneurs who founded it. Author and venture capitalist Randy Komisar argues that there are basically two types of modern entrepreneurs.

“Mercenary entrepreneurs – today disproportionately running consumer-web businesses – are young, aggressive and ambitious people, which are all good qualities, but they have no broad picture or purpose,” he told Inc. magazine.

“Missionary entrepreneurs – more often found running life sciences, green technology, infrastructure or deep sciences businesses,” he continued, “have a bigger goal beyond just making money.”

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Selling a Startup to a Competitor

Posted on December 30th, 2010 by The BizFilings Team
Category: Form My Business, Small Business, Work For Myself

When an entrepreneur reaches the point in the development of a business that it is ready to be sold, he or she then faces a number of challenges in determining the value of the company, deciding on an exit strategy, finding potential buyers and negotiating the transaction.

But all those obstacles are nothing without good timing. Forming a company is dependent on market conditions for sure, but selling a company is even more so. There are also the recent activities of competitors and, especially, potential acquirers to consider.

If the timing is right, selling to a competitor may actually be a quick means of exiting a business. For one, it ensures the transfer of the company over to a party that already understands how the industry works.

“We sold the greeting card part of our business to a competitor because we knew they could take care of our customers,” Andrew Warner, co-founder of Bradford & Reed, told Inc. magazine. “We basically got a little bit of money up-front, a percentage of sales in the future and a guarantee they would take good care of our customers. I was able to walk away 30 days after the deal closed.”

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5 New Year’s Resolutions for Small Business Owners

Posted on December 29th, 2010 by BizFilings Team
Category: Business Inspiration, Grow a Business, Incorporation, Small Business, Start A Business, Work For Myself

Are you going to hit the gym more often in 2011? Or are you going to quit smoking when the clock strikes midnight Dec. 31?2011_opt

Well, good for you.

But what are you going to do to improve your small business in 2011?

Here are 10 suggestions to help you start the New Year off right:

  1. Toss it. Walk over to the trash. You can do it! I am a firm believer in getting rid of things. My philosophy: if you don’t miss it, don’t wonder where you put it or don’t know that it even exists – toss it. Toss or file that mound of paper; enter those business card contacts and then expose of them; and audit your inventory for throwaways.
  2. Educate yourself. Research free online courses that many websites offer. Look into taking classes at your local community college or through community groups. You might even learn something useful along the way!
  3. Prepare for it. Take precautionary measures for your small business in the New Year. For instance, if your small business is not incorporated, consider forming a company to protect your personal assets and to possibly benefit from tax savings.
  4. Save money. Take a long, hard look at your finances – even reducing transaction costs – ecommerce charges and bank fees – can make an impact on your bottom line.
  5. Learn from your employees. Listen to what your employees have to say. Everyone has something to bring to the table whether it be money-saving tips or creative campaign ideas.

So what about you? What would you like to improve upon for 2011 for your small business?

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Venture Capital Expected to Surge in 2011 as Startup Scene Expands

Posted on December 29th, 2010 by The BizFilings Team
Category: Angel Investors, Cash Flow, Financial Services, Finding Money to Start a Business, Form My Business, Grow a Business, Lines of Credit, Start A Business, Venture Capital, Work For Myself

Venture capital is often considered a funding option only at a significantly developed stage – above angel investment and beyond initial bank loans or personal financing. Since the recession began, VC funding has declined substantially, despite a boom in a number of highly regarded tech and web startups.

In fact, the total amount of money raised by U.S. VC firms dropped year-over-year for 2008 and 2009, according to a statement by Mark Heesen, president of the National Venture Capital Association, to Reuters. And that number is expected to drop for 2010 as well.

However, improving market conditions, as well as a surge in the startup scenes of California and New York City, may contribute to an upswing in VC funding over the next few years. There is also the much-anticipated initial public offerings of companies such as Facebook and Groupon that is expected to occur sometime in the next two years.

Other major venture capitalists such as Merus Capital of Palo Alto, California, are upping their investment funds to meet the anticipated demand. Merus, founded by a former Google mergers and acquisitions executive, is now preparing to raise a new $100 million fund for tech startups and later-stage development companies starting next year.

For entrepreneurs forming a company in one of these startups hubs, it may be a good time to begin floating around ideas for your next round of investing.

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Healthcare Bill May Be Spurring Small Businesses’ Purchase of Coverage

Posted on December 29th, 2010 by The BizFilings Team
Category: Benefits, Small Business, Start A Business

The healthcare reform bill passed earlier this year may be prompting many small businesses to sign up to provide their employees with health benefits, according to the Los Angeles Times.

The surge in accounts from small businesses among the nation’s insurers may indicate that the reform bill is working to help provide a greater percentage of Americans with healthcare coverage.

A major incentive for the hike is likely a tax credit stipulation in the new healthcare bill that insurance marketers have been touting aggressively as a reason to buy. The credit is targeted at small businesses as a means to offset the price of the coverage and is also one of the first laws from the reform bill to have already gone into effect.

“We certainly did not expect to see this in this economy,” Gary Claxton, who oversees an annual survey of employer health plans for the Kaiser Family Foundation, told the Los Angeles Times. “It’s surprising.”

Healthcare coverage has been a matter of great contention among small businesses in recent years. As costs skyrocket – due largely to the country’s declining health – small firms have been pressed to foot a bill that many simply cannot afford.

With greater financial incentives to purchase coverage, it may become easier to start a small business.

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Amid Significant Improvements in Confidence, Economy Looks to Improve in 2011

Posted on December 29th, 2010 by The BizFilings Team
Category: Form My Business, Grow a Business, Incorporate a Business, Small Business, Start A Business, Work For Myself

Although the recession ended in mid-2009, its effects have lingered throughout the economy and will likely continue to do for some time. However, 2011 is poised to be a year of substantial economic recovery, as a number of key studies and surveys show improvement among various market indicators.

Small business confidence has recently reached levels not seen since before the recession, with recent indexes from the National Federation of Independent Business and Wells Fargo/Gallups showing significant improvements.

The recently passed Small Business Jobs and Credit Act aims to provide new credit opportunities to small businesses through greater lending incentives to community banks, hopefully freeing up what the Federal Reserve estimates to be $1.9 trillion in liquid assets currently being sat on by private businesses.

Yet, unemployment remains the must stubborn problem. U.S. Federal Reserve chairman Ben Bernanke recently told the CBS news program 60 Minutes, “It may take four or five years before we are back to a more normal unemployment rate.”

Still, consumer activity is improving, as indicated most aptly by this year’s record-breaking holiday season. ComScore has reported that total spending this season is up 12 percent from a year ago, while Cyber Monday reached a record $1 billion in online sales.

For entrepreneurs forming a company or small businesses seeking incorporation, 2011 may turn out to be a better year than 2010. Still, the national economy has a ways to go before reaching pre-recession levels.

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