Entrepreneur.com - Daily Dose tag:blog.entrepreneur.com,2008-09-29://12 2009-11-20T20:59:40Z2009-11-20T17:14:20Z2009-11-18T19:51:08Z2009-11-18T00:31:49Z2009-11-16T17:00:25Z Movable Type Pro 4.21-en Goldman Sachs and Warren Buffett to the Rescue! tag:blog.entrepreneur.com,2009://12.428test 2009-11-18T19:09:15Z 2009-11-18T19:51:08Z Small businesses have been crying for help getting loans for two years now. And finally, help arrives from an unexpected quarter: global investment banking and securities firm Goldman Sachs is teaming with savvy American investor-icon Warren Buffett to offer $300... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 Small businesses have been crying for help getting loans for two years now. And finally, help arrives from an unexpected quarter: global investment banking and securities firm Goldman Sachs is teaming with savvy American investor-icon Warren Buffett to offer $300 million in financial aid to small businesses, coupled with $200 million more for college-level training for entrepreneurs.]]>
The initiative, dubbed 10,000 Small Businesses, will pump the funds into Community Development Financial Institutions, or CDFIs. CDFI managers will then make the loans.

The program kicks off in New York, with first funding going to CDFI Seedco Financial Services, and training at the Small Business Development Center based at La Guardia Community College in Queens.

CDFIs have already been in the news recently, as the stimulus bill jacked up the federal funding contribution to these community lending institutions from the $50 million level of the Bush era to $400 million. Large lumps of cash granted to CDFIs see their impact greatly magnified in the marketplace, as each dollar tends to leverage another $17 or so of private investment.

There's been plenty of cynical reaction in the blogosphere to the announcement. Is Goldman's plan simply a PR move to help distract the public from the billions in bonuses they gave their execs shortly after taking federal TARP funds? Do business owners care if the new funds will actually help small businesses? Will it really help small businesses? Weigh in with your opinion.

]]> Business Spotlight: The Dish's Dish tag:blog.entrepreneur.com,2009://12.427test 2009-11-17T20:35:30Z 2009-11-18T00:31:49Z Growing up in Cincinnati, Ohio, Jill Donenfeld cherished the time spent with her family around the dinner table every night. Those times inspired her to launch The Dish's Dish--a customizable, health-conscious home chef service. When Donenfeld moved to New York... Kara Ohngren http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=12 Growing up in Cincinnati, Ohio, Jill Donenfeld cherished the time spent with her family around the dinner table every night. Those times inspired her to launch The Dish's Dish--a customizable, health-conscious home chef service.

When Donenfeld moved to New York City to attend Barnard College she simultaneously immersed herself in the City's vibrant culinary scene. Just three days after graduation she began writing her business plan.

After garnering quite the following in NYC and the Hamptons, The Dish's Dish went bi-coastal in the fall of 2009--offering its services to Los Angeles residents too. Now only 25, Donenfeld's mission is to cultivate personal satisfaction and healthier living through home cooking.

Entrepreneur recently sat down with Donenfeld to chat about pursuing her passion, creating a brand and her decision to expand in the middle of a down economy. ]]>
You've created an entire lifestyle brand. Why do you think it's important to go beyond the in-home chef service?
This is a very 21st century business. Businesses, like people, need to operate on many different platforms to stay relevant. From Twitter to web videos to an e-mail newsletter, it's all about getting the message across in a way that will resonate with a wide variety of people. The weekly home chef service isn't for everyone--after all, we are only in LA and NYC at the moment. However, maybe someone wants to learn our once a week cooking technique to cook for themselves. So, we made a DVD series to sate that need.  

Additionally, expanding the brand and myself-as-brand to encompass more of a general food knowledge/food world/food fun scope is something that feels true to myself and natural. If I was only working on the weekly home chef aspect, I'd be bored.

How do you market your home chef service?
Word of mouth is best for this type of service. It's all about getting a core group of happy people with big mouths. Satisfied clientele is always the best way to get more satisfied clientele.

Beyond that, we put postcards at places where our clientele might go--children's stores, yoga studios, hair salons, etc. I've also developed a few partnerships that match our brand--Equinox, CitiBabes, Homegrown LA and Quintessentially are a few. They help to get the word out to the right people and in return, their members get a little bonus.

You're only 25 years old but have already accomplished so much. Did you always know you wanted to be your own boss?  
I've never ruled out working for someone else--I just had my own ideas first and was driven to act on them.

When I was 14 years old, I figured out one pattern for a sort of scarf-tank top on my grandmothers Singer sewing machine. I made about 50 in my bedroom and sold them to a boutique. So I guess there is sort of a precedent for working for myself. I've always liked to work and I've always liked to create. Sometimes working for someone else interferes with the creating part. So I guess it wouldn't be the most natural path for me.

What's the best part about owning your own business?
My business is my passion and that's essentially the best part. I truly believe that mindful eating will lead to a happier, healthier life. And I believe that cooking your meals once a week will aid in that consciousness. The weekly home chef service, and the greater message of the other outlets, point to this concept. It's uplifting to spread a message/system that is genuinely helping people lead more fulfilling lives.  

What advice do you have for aspiring entrepreneurs who might be nervous to take the leap?
If you truly believe in your idea, you shouldn't be nervous. And if you are nervous, you're either not the right person to follow through or you should rethink your idea. No one should become an entrepreneur because they want to own their own business. You should become an entrepreneur by fault--because you have an idea that drives you and that needs to live. Then again, I'm only 25, so what do I know?

What does the future hold for The Dish's Dish?  
The message is mindful eating for mindful living, so it's all about spreading that. The weekly home chef service will be available in many more cities. The DVD series will become a TV show. I have a few more shows in the works and some other tricks up my sleeve.
]]> Obama's Small Business Forum Examines Lending Logjam tag:blog.entrepreneur.com,2009://12.426test 2009-11-19T22:08:58Z 2009-11-20T17:14:20Z Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 Yesterday, President Barack Obama held a small-business financing forum to discuss what more should be done to help break the lending logjam small business owners have experienced the past two years. Before it even began, Obama was being criticized for keeping the guest list under wraps. Interested parties such as the American Small Business League issued a press release about their displeasure with not getting an invite. Others, including the International Franchise Association president/CEO Matthew Shay and Indiana Statewide Certified Development Corporation executive Jean Wojtowicz, got a ticket to the ball.

But while many squabbled about the timing, the format, and the lineup of speakers, the bigger question is: With Goldman Sachs, Warren Buffett, and JP Morgan Chase stepping up lending to small businesses, does small business still need this help?]]>
There have been several positive developments in the world of small-business lending in the past week. Chase Bank said last week it planned to increase small-business lending by a hefty $4 billion next year, hiring more than 300 additional small-business bankers to focus on companies with under $10 million in sales. The company said it sees the economy improving next year. Certainly smells like a harbinger of changing big-bank attitudes towards making small-business loans that could help many get the funding they need.

That was a pretty interesting development, given that parent JP Morgan Chase in September introduced a new Ink line of four different small business credit cards with interest rates up to 30 percent. Apparently the bank wants to be there for small-business customers whether they can qualify for a loan or not.

Then Goldman Sachs and Warren Buffett pumped $500 million into Community Development Financial Institutions for small-business lending.

Providing a small break for small-business owners who may be hitting the ATM to keep their company afloat, the Federal Reserve set new restrictions on overdraft fees from such cards that begin next year.

On the down side, an attempt to get small-business credit cards included in federal consumer protections for consumer cards recently went down to defeat, the New York Times' Robb Mandelbaum reports. The bill sought to get businesses with fewer than 50 employees included in the definition of a consumer. This is bad news at a time when many small businesses are relying heavily on plastic: A Small-Business Credit Card Survey released by the National Small Business Association showed nearly 60 percent of members were using credit cards to fund their business, and half of those had their card racked to $50,000 or more.

There's also the theory, recently discussed in Time magazine's Curious Capitalist column, that the small business sector has been harder hit and is recovering slower than the economy in general...possibly pointing at continued need for additional small-biz funding relief.

On to the meeting meat: Treasury secretary Timothy Geithner basically gave banks a pep talk about upping their lending to small businesses (the President was actually in China). Geithner's key message: "The credit crunch is not over." (I'm thinking you probably knew that.) Treasury's monthly survey of bank lending showed the top banks that got TARP funds continued to tighten up their lending, with oustanding balances falling 1 percent in September. Others including IFA's Shay got a chance to give testimony on their point of view.

Ever the social-media administration, after the forum concluded there was follow-up chat with SBA Administrator Karen Mills over on Facebook. When I looked the comments seemed to have vanished, replaced by a healthcare debate--it would be great to look them over and see what people said.

What can Obama do at this point to help small businesses get better access to credit? Should he do anything? Weigh in and let us know what you think.

]]> How Will You Celebrate Global Entrepreneurship Week? tag:blog.entrepreneur.com,2009://12.425test 2009-11-15T21:24:50Z 2009-11-16T17:00:25Z A sort of We Are The World moment for young entrepreneurs happens this week--the second annual Global Entrepreneurship Week. Founded by busy U.S. business-stimulators the Ewing Marion Kauffman Foundation and U.K.-based Make Your Mark, the week aims to bring together... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 A sort of We Are The World moment for young entrepreneurs happens this week--the second annual Global Entrepreneurship Week. Founded by busy U.S. business-stimulators the Ewing Marion Kauffman Foundation and U.K.-based Make Your Mark, the week aims to bring together young would-be business owners from around the globe to learn and get inspired to make their business dreams a reality.

In 90 countries around the world, events will be held to mentor, teach and stimulate the next generation of entrepreneurs. More than 3 million people are expected to participate in over 5,000 events.]]>
The week offers activities galore--the Global Student Entrepreneur Awards given out by Entrepreneurs' Organization will recognize its undergraduate business owners, and the documentary Ten9Eight by Mary Mazzio, about 35 business-plan competition finalists, will screen in major U.S. cities. The Cleantech Open Ideas Competition will hand out its awards for better-technology solutions. The "Apprentice"-style Global Innovation Tournament will select local winners from their 3-minute video entries during the week.

In the U.S. alone, more than 688 activities are planned for the week.

It's the busy season for many business owners, and the economy has many down if not out. But if you can possibly do it, make the time to participate in the week. Reach out, mentor a student, speak on a panel, hire an intern, visit a school. Alfa Demmellash, CEO of Rising Tide Capital, is sponsoring a series of events in New Jersey. What will you do to foster this explosion of young entrepreneurial energy?

A newly released analysis of job creation by the Kauffman Foundation shows that young and brand-new companies are "the primary drivers of job creation in the United States." Companies less than five years old created nearly two-thirds of the net new jobs in 2007, the study found. So there may be no better way to ramp up our economy than to reach out to young entrepreneurs this week.

What will you be doing during Global Entrepreneurship Week? Leave a comment and let us know.]]> Black Friday and Cyber Monday...Will They Rock? tag:blog.entrepreneur.com,2009://12.424test 2009-11-20T20:48:31Z 2009-11-20T20:59:40Z The oddsmakers and forecasters are already at work calculating how much we'll spend on Black Friday--the day after Thanksgiving--and Cyber Monday, the Monday following the holiday weekend. In our internet age, these two days form the official opening the Christmas... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 Black Friday--the day after Thanksgiving--and Cyber Monday, the Monday following the holiday weekend. In our internet age, these two days form the official opening the Christmas shopping season and usually are a strong predictor of how much shoppers will buy for the holidays generally. This season there's a few new wrinkles--aside from the economy--so it'll be interesting to see how it plays out. ]]> Over at online betting zone Bookmaker, they've put out their oddsmaking team's predictions. The majority of the team says between 161 million and 180 million of us will hit the stores and websites on Black Friday, and we'll spend between $300-$400 per shopper. Second-best odds were for 131 million to 161 million shoppers spending $250-$300 apiece.

One complicating factor this year that Bookmaker's team may not have taken into account is that some major chains including Walmart, The Gap and Banana Republic are taking the unusual step of staying open on Thanksgiving Day, as the Seattle Times reported. We'll see if that takes some of the wind out of the Black Friday sails, or if folks stay home Thanksgiving out of habit...or because they're busy eating turkey with family. I'm also curious to see if there's any negative backlash to that, or if shoppers don't find Thanksgiving a sacred occasion where stores should be closed.

More traditional sources of retail intelligence have a glum outlook on the holidays. For instance, the National Retail Federation is expecting total holiday sales to rise just 2.2 percent, compared with the historic average of 4.4 percent  annual growth. Another forecaster, TNS Retail Forward, says it'll be just 1.5 percent growth.

On the Cyber Monday front, performance-measurement company Permuto has put together an interesting chart, "The Myth of Cyber Monday Explained." The chart offers historic Cyber Monday sales compared with other top sales-day figures, demonstrating that Cyber Monday is not, in fact, the busiest online shopping day of the year. The day has varied from Dec. 9-13  in the years since 2005 when the phrase was first coined. For instance, last year Tuesday Dec. 9 was the biggest sales day with $887 million rung up, while Cyber Monday took in $846 million. In '07 and '05 the busiest day was a Monday, but in '06 it was  Wednesday. 

Takeaway? Stay on your toes if you have an online store, and be ready for big volume anywhere in that second week of December.

I've always thought it a funny quirk of our American mindset that news of modest growth such as the NRF forecast depresses retailers. If there's 2.2 percent growth, that means there will be more sales than last year! Yet all we can do is mope.

The key thing for small businesses to bear in mind is that averages do not have to be your personal reality. A small business represents such a tiny slice of the overall marketplace that your results can vary widely--they could be zero, or this could be your best year ever. 

Sharp readers will notice that my links for Black Friday and Cyber Monday are to coupon sites...an opportunity to get some marketing play out of any deals you're offering for those key days. What are you doing to make those days special for your shoppers? 

What's your strategy for driving holiday sales and standing out from the crowd? Leave a comment and let us know.
]]> Franchises Love Veterans tag:blog.entrepreneur.com,2009://12.423test 2009-11-14T01:18:27Z 2009-11-16T16:30:59Z Back in July, I blogged about Maid Brigade's Veterans Franchise Giveaway. This week, to coincide with Veterans Day, the company announced the results of the contest, after narrowing the field down from over 100 entries to six finalists. The winner... Tracy Stapp http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=17 Back in July, I blogged about Maid Brigade's Veterans Franchise Giveaway. This week, to coincide with Veterans Day, the company announced the results of the contest, after narrowing the field down from over 100 entries to six finalists. The winner of Maid Brigade's "Gold Award"--including waived franchise fees, equipment, training, and $27,500 in working capital--is Major Philip Thomas Piaget, a retired Airborne Ranger.]]>
Piaget is no stranger to being honored for his military service--over his 20-year career, he's been awarded a Bronze Star, a Purple Heart and numerous Meritorious Service Medals. He retired from the Army in September, and entered the contest the same month, writing in his application: "I think that my life as a leader of infantrymen and that of a quality Maid Brigade franchisee have very much in common. Trust that my subordinates and superior officers have in me was unquestioned, and my integrity was neither for sale nor up for negotiation. This same uncompromising standard will help to develop dedicated, loyal, and trustworthy employees who understand what we stand for as a company."

Maid Brigade isn't the only company to recognize the value that veterans can bring to a franchise. In fact, this week also marked a milestone for the International Franchise Association's VetFran--a program reinstituted after the September 11th attacks through which almost 400 franchisors offer special discounts for honorably-discharged veterans. Brian Gadson, another Army veteran, became the 1,500th person to purchase a franchise through a VetFran discount. His chosen franchisor, Meineke, reports that it has now provided $500,000 in VetFran discounts.

According to an IFA survey, Meineke is one of the top 10 VetFran participants (based on number of franchises sold to veterans). Here's the full list:
1. Matco Tools
2. The Dwyer Group (Aire Serv Heating & Air Conditioning Inc., Glass Doctor, Mr. Appliance Corp., Mr. Electric, Mr. Rooter and Rainbow Int'l. Restoration & Cleaning)
3. The UPS Store/Mail Boxes Etc.
4. Dunkin' Brands (Dunkin' Donuts and Baskin-Robbins USA Co.)
5. CruiseOne Inc.
6. Meineke Car Care Centers
7. PostNet Neighborhood Business Centers
8. Sport Clips
9. Mr. Handyman Int'l. LLC
10. Maui Wowi Hawaiian Coffees & Smoothies

Meanwhile, the IFA has been urging Congress to pass legislation that would encourage even more franchisors and veterans to team up. Introduced earlier this year by Representatives Leonard Boswell and Aaron Schock, the Help Veterans Own Franchises Act (H.R. 2672) proposes a tax credit for franchisors that offer discounts to veterans, as well as a tax credit for veterans who open franchise businesses in their communities.

]]> Credit Card Transactions -- Could They Be Free? tag:blog.entrepreneur.com,2009://12.422test 2009-11-12T00:15:05Z 2009-11-11T23:03:41Z If you had told me a decade ago that I could pay $40 a month for all the phone calls I could make coast to coast, I wouldn't have believed it. I used to routinely have $250 phone bills. But... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 If you had told me a decade ago that I could pay $40 a month for all the phone calls I could make coast to coast, I wouldn't have believed it. I used to routinely have $250 phone bills. But now, as a reporter who frequently needs to call all over the country, I am a prime beneficiary of the new all-you-can-eat calling plans.

What if credit cards could work the same way for small businesses--a flat fee per month for all you can charge? In a thought-provoking article on the retail-tech/e-commerce site Storefront Backtalk, Focus Brands vice president of information technology Todd Michaud opines that there could be. The credit-transaction business, he argues, is ripe for a disruptive new model that would radically lower costs for merchants.]]>
As I'm sure I don't have to tell anyone regular readers of the Daily Dose, credit-card transaction fees are the bane of every retailer's existence. Customers are always coming in to buy a $.95 pack of gum, and wanting to charge it. And the fee erases all the profit in the transaction, and more. It'd be sweet if card fees became more affordable.

How could it be done? Michaud suggests finding sponsors and basically turning card transactions into a marketing opportunity that would cover the costs, rather than retailers having to pay a fee. Card providers could sell ad space on charge receipts, or banner ads on card-signing pads. Merchants could agree to sell their data to sponsors in exchange for discounted rates.

Is the credit-card space ripe for a disruptive new model that could help take the fee burden off retailers? Or is it just a pipe dream? Comment and let us know what you think.

Personally, I smell a great business opportunity for someone with banking experience who could bring all the parties together to create a new model.]]> While Feds Debate, Small-Biz Health Care Rates Skyrocket tag:blog.entrepreneur.com,2009://12.421test 2009-11-12T17:00:00Z 2009-11-12T17:18:56Z The whole healthcare-reform debate hit home for me this week. I've been ignoring a large envelope that came from my health insurance agent about a month ago. They left me a sort of ominous-sounding phone message about it, too, but... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 The whole healthcare-reform debate hit home for me this week. I've been ignoring a large envelope that came from my health insurance agent about a month ago. They left me a sort of ominous-sounding phone message about it, too, but I hadn't had a chance to call back. You know how sometimes when you can smell something bad's up, you just want to avoid it? I was in that mode.

Then I started reading news stories about how small-business healthcare plans were all having their rates jacked up to the sky...and I finally got up the nerve to open the envelope. Then I about fell over.]]>
I'm on a health plan through my local city chamber of commerce through my freelance writing business, for me and my three kids. When I signed up two years ago, I was paying about $450 a month in premiums. This year, that became $560 a month. Guess what they'd like me to pay for the same coverage next year? $840 a month. That's a more than 30 percent increase.

Apparently, it's not just me, though mine seems like it's top of the class for ridiculous rate hikes. The Poynter Institute's Al Tompkins reports the average hike is 15 percent--more like what I saw last year.

Obviously, I'm going to be looking for a new health care plan, and I gather I'm not alone. It'll be interesting to see if this small-business healthcare rate spike has any effect on the ongoing effort to create a national healthcare plan.

Are your rates going up? If so, what's your plan--suck it up, or look elsewhere? Cut benefits?

Does it change the way you feel about national healthcare reform? Leave a comment and let us know.]]> Run a Small Business and Win a Prize! tag:blog.entrepreneur.com,2009://12.420test 2009-11-09T22:33:02Z 2009-11-09T17:57:06Z There isn't much glory to running a small business. Day after day, you market, sell, hire, fire, economize, mentor, purchase, envision, order, organize, plan, and pay the bills. And nobody notices. Or you win some totally jokey award that doesn't... Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 There isn't much glory to running a small business. Day after day, you market, sell, hire, fire, economize, mentor, purchase, envision, order, organize, plan, and pay the bills. And nobody notices. Or you win some totally jokey award that doesn't really mean anything, and nobody notices.

Occasionally, there's an exception to the grind--a chance for a few outstanding small businesses to step into the spotlight and enjoy some national recognition for what they've built. One of those opportunities is coming up.]]>
The Small Business Administration is looking for nominees for its annual National Small Business Week Awards. There are a raft of awards, including a Small Business Person of the Year from every state and a national winner, SBA Young Entrepreneur of the Year, and Small Business Exporter of the Year.

On the vendor side, there's also awards for contractors, lenders, individuals and organizations who champion or encourage small business success. You can't nominate yourself--you'll need to get a local organization to nominate you.

My experience is that besides the personal satisfaction of winning, the list of SBA award winners is a great place to be for connecting with media and becoming the subject of news stories. I know I've looked it over many times through the years when I was looking for good small-business stories.

You can download an application here. But you'll have to hurry--nominations have to be in your local SBA office by this Friday, Nov. 13.

There's one other fun contest coming up for would-be small business owners--if you're handy with a video camera, you might win a free, brand-new TCBY frozen yogurt franchise store. You enter by making a two-minute video about why you should win, completing an application form, and send it in. You'll want to get busy making your video, as entries for The Great TCBY Store Giveaway must be in by Nov. 30. More about it on YouTube. ]]> Should Small Businesses Be Allowed to Be Bigger? tag:blog.entrepreneur.com,2009://12.419test 2009-11-06T00:52:23Z 2009-11-05T17:05:17Z Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 For those who don't read the fine print on the Small Business Administration's website, the agency has proposed increasing the size definitions for small businesses in 71 business sectors, mostly within retail industries. It's the first proposed rule change on qualifying size since 1984.

Why should you care? It means bigger businesses would still qualify for SBA loans and other federal assistance to small business.

Now, is that a good thing or a bad thing? I'm of two minds. ]]>
On the one hand, small businesses that are succeeding tend to grow bigger. Should they be penalized for that success by not having access to SBA loans anymore?

On the other hand, if the category of qualified businesses gets bigger, it'll likely mean fewer loans for smaller small businesses--and those are the ones that usually have the hardest time finding capital, particularly as they launch. And if companies are growing and succeeding, shouldn't they be able to go out and get traditional loans without the SBA's backing?

Personally, I liked the analysis of Small Business Trends executive editor Anita Campbell, who opined last week that the SBA should stop tinkering with its arcane list of hundreds of various qualifying size standards and instead establish a single size standard that would apply across all business categories.

Whether you think the size-change proposal is good or bad, you've got until Dec. 21 to weigh in. Visit www.regulations.gov, or email sizestandards@sba.gov to voice your opinion.]]>