tag:blog.entrepreneur.com,2008-09-29://12 2009-11-05T17:05:17Z2009-11-04T16:42:40Z2009-11-06T20:00:51Z2009-11-02T19:15:05Z2009-10-29T18:00:46Z Movable Type Pro 4.21-en 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.]]> tag:blog.entrepreneur.com,2009://12.418test 2009-11-04T23:54:06Z 2009-11-04T16:42:40Z

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 With the filing of a Chapter 11 bankruptcy reorganization petition late last week, the parent company of giant small-business lender CIT is hoping for a speedy trip through bankruptcy court. Small businesses that need loans, however, face a more uncertain future.]]>
While the company has assured the public their lending units will operate normally during the bankruptcy process, not everyone seems convinced: Reuters headlined its story on the filing "CIT Failure To Leave Small Businesses Floundering."  On the other hand, American City Business Journals site Portfolio.com titled its story "Bankruptcy Business As Usual." Only time will tell which is right.

CIT's financial woes aren't good news for the U.S. government and taxpayers, either--we lent CIT $2.3 billion we likely won't see again. Many fingernails are likely being bitten from the White House to Main Street, as CIT was the top provider of short-term loans against receivables, a loan type known as factoring.

Business that seek a factor loan are often in pretty dire straits. Getting an advance against receivables is roughly the business equivalent of going to a payday lender, in that rates are higher than for traditional loans. Translation: these businesses have tapped out their credit line, credit cards, and Aunt Mary, and have nowhere left to turn--and they need money fast. They can't wait another month or two for their clients to pay their bills.

If CIT's lending capability dips, some businesses may need to quickly find a new place to get factor loans. But smaller factor lenders (the Internet is crawling with them--JustInTimeCash, IFGNetwork, SolveCashFlowProblems and so on) have limited lending capacity, and it's unclear if even major CIT competitors Wells Fargo and GMAC can absorb all the potential CIT refugees. GMAC focuses on mid-sized businesses, so they may not be an exact fit for CIT's small-business lenders.

In any case, if a small business can't get a CIT loan anymore, it means starting all over establishing new banking relationships. It's unclear whether that can be done fast enough to keep the doors open for businesses on the edge.

If you have CIT loans, weigh in with your take on what the giant lender's bankruptcy is going to mean to you. Think you'll be affected? Are you making other plans? Or is it business as usual, as some hope?]]> tag:blog.entrepreneur.com,2009://12.417test 2009-11-04T00:29:25Z 2009-11-06T20:00:51Z

When contributing writer Carol Tice wrote about the ROI of networking online, comments from readers revealed their uncertainty over the value of sites like Twitter and Facebook. So when LinkedIn--a site specifically designed for networking purposes--changed its user policy to...

Jennifer Wang http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=13 When contributing writer Carol Tice wrote about the ROI of networking online, comments from readers revealed their uncertainty over the value of sites like Twitter and Facebook. So when LinkedIn--a site specifically designed for networking purposes--changed its user policy to limit the number of connections a person could have to 30,000, Entrepreneur.com investigated its potential effect on small-business owners and entrepreneurs.

Can LinkedIn's recent cap hurt entrepreneurs? Pick a side.
]]> Yes
Sure, hardly anyone is directly affected. Fewer than 20 users (a minuscule fraction of total membership) are over the limit, and even President Obama claims only about 25,000 connections. But the real problem is what you lose indirectly, says "super connector" Steven Burda, who has more than 37,000 connections, at least 15,000 pending invitations and around 2,500 personal recommendations.

"The cap matters a lot to entrepreneurs and small-business owners," Burda says. "I have used LinkedIn to help multiple small businesses secure funding with venture capitalists, and over the years that I've been on the site, I've probably facilitated thousands, if not millions, of dollars worth of business deals."

But apparently, no good deed goes unpunished. The limit blocks Burda's ability to create more of these deals, and he suspects the change was partly motivated by the fact that LinkedIn is losing out on fees they charge unconnected members for introductory "inmails" ($10 a pop).

"The real victims are the people who lose out on joining a wider network, and miss a potential connection," Burda says. "If the platform really is for helping people, its users need to be able to network with each other." He adds that he just wants to start a dialogue with LinkedIn about preventing more restrictions from being implemented in the future. So far, he hasn't heard back.

No
The LinkedIn representative we reached declined to comment, but asked us to contact other members who were willing to provide an opposing perspective.

Enter Sheilah Etheridge, founder of SME Management and one of LinkedIn's earliest adopters. She views the value of Burda's networking method rather differently. "LinkedIn has its flaws, but the one flaw it does not have is limiting entrepreneurs from helping one another or themselves grow," she says. "There are countless members who help other people find opportunities, and none of them try and take credit for it or expect anything in return. That is the nature of networking."  

Etheridge says she connected to Burda in 2006 and found him to be a good networker. But she began to suspect he was abusing the user policy by connecting to people he didn't know; now, he's "networking" by collecting names and making surface introductions (that rarely pan out) in exchange for endorsements. "It's quantity rather than quality, so how does that help an entrepreneur grow or succeed?"

LinkedIn is within its rights to set a cap, she continues, and 30,000 is a generous one, especially when accounts can be free. "People put in a lot of time to make this a real networking site with real value, but Burda's method cheapens and dilutes the experience."
__

In the end, it probably boils down to your personal view of how online networking is supposed to work, but there's one thing we can all agree on: There's no way a measly 30,000-connection cap can stop an entrepreneur from doing what needs to be done.


Update: It's been brought to our attention that at least a dozen comments in reply to this particular post have been lost. While we try to figure out what the issue is, please email comments (or re-posts) to jwang@entrepreneur.com. We will get them published as soon as we're able. 
]]> tag:blog.entrepreneur.com,2009://12.416test 2009-10-30T20:40:56Z 2009-11-02T19:15:05Z

Last night I was watching the HBO documentary Schmatta: Rags to Riches to Rags, which chronicles how Jewish and Italian immigrants created the New York garment district soon after the turn of last century, and built it into the largest...

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 Last night I was watching the HBO documentary Schmatta: Rags to Riches to Rags, which chronicles how Jewish and Italian immigrants created the New York garment district soon after the turn of last century, and built it into the largest employer in the city. It goes on to show how, after more than 70 years of being a thriving source of good-paying union jobs, it all disappeared as trade protections ended and NAFTA ushered in a new era of global free trade.

The film repeatedly asks the questions: How will we rebuild the American middle class? Where will tomorrow's living-wage jobs come from?]]>
In the 1970s, the film reports, 95 percent of American clothes were made here. Today, it's 5 percent. The days when an unskilled laborer could learn to be a cutter or machinist on the job, make a good living, and be able to afford a house, a car, and other middle-class trappings seem gone. Just ask Detroit. Or ask Boeing workers in Everett, Wash., who learned this week that their company will build a new 787 assembly line in cheaper, nonunion South Carolina, instead of next to their existing union-staffed plant.

Despite the current gloomy headlines, I believe these moves don't spell the end of good, living-wage jobs in America.

Why? I look to my own family story. My grandfather originally sold buggy whips, working as a salesman for another company. When people started driving cars, he switched to automotive parts and started his own business, which thrived and left my grandmother well-fixed after he died. When his living-wage job disappeared, he looked at how the world and markets were changing, and figured out how to create another job--by building a successful business of his own, that offered others good jobs, too.

Yes, it's true that clothes are mostly made elsewhere now, and that the American public no longer seems to care to "look for the union label," as the old jingle went. Change has come, and it's wrenching, and there are workers who are the losers.

But all across this country right now, there's a surge of entrepreneurial energy as more and more workers strike out on their own. Having closely covered the rise of Amazon.com, I think that tomorrow's American living-wage jobs are going to come from new ideas, new businesses, and new entrepreneurs, who are out there right now, creating products, services and ways of doing business that will revolutionize how we even think of work and define a "good job."

I also think of American Apparel, which is seeing smash success making its clothes here in the USA. I think it's possible that as the "eat local" and "buy local" movements progress, we might see more consumer pressure to bring manufacturing back to our shores. Geopolitics may also drive a trend back to domestic manufacturing--think how nervous garment makers with factories in Pakistan probably are about now.

Where do you think tomorrow's living-wage jobs will come from? Comment and let us know.]]> tag:blog.entrepreneur.com,2009://12.415test 2009-10-26T22:57:45Z 2009-10-29T17:53:07Z

If you're hoping to connect with venture capital firms to pitch your company story, a new contest may help--but you'll need to be ready to catch a plane to Seattle. This year at Northwest Entrepreneur Network's signature networking event, Entrepreneur...

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 If you're hoping to connect with venture capital firms to pitch your company story, a new contest may help--but you'll need to be ready to catch a plane to Seattle.

This year at Northwest Entrepreneur Network's signature networking event, Entrepreneur University, six lucky companies will get to make their pitch before a media panel and conference attendees. How do you qualify? A Twitter contest.

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That's right--boil your business idea down to 140 characters and tweet it, using the hashtag handle #EUidol. Better get busy, as entrepreneurs are already pitching away in Twitterland. Winners will be decided by the editors of TechFlash. In addition, five more winners will be picked by members of Northwest Entrepreneur Network.

The deadline is this Friday, Oct. 30! So get cracking if you'd like to play Entrepreneur Idol in Seattle next week. Create a snappy pitch and you could be winging your way to the Bellevue Hyatt Regency, east of Seattle, for Entrepreneur University on Nov. 5.

May the best tweeter win!]]> tag:blog.entrepreneur.com,2009://12.414test 2009-10-29T19:05:03Z 2009-10-29T18:00:46Z

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 If you're a retailer who sells online, and you'd like to give your sales a free, end-of-season boost, you might want to join in on the second annual Free Shipping Day.  

Created last December on a whim by Luke Knowles of free-shipping coupon site FreeShipping.org, Free Shipping Day was designed to help retailers on the last day when virtual shops can guarantee delivery before Christmas. Apparently, online shopping starts to decline around Dec. 12, as customers get nervous about whether packages will arrive, and Knowles thought this might help keep the online sales going.]]>
The response from retailers was overwhelming -- Bloomingdale's, JC Penney, Kohl's and Macy's were among the major retailers that jumped on board, along with many smaller retailers. In all, 250 companies participated, and more than 250,000 shoppers visited the FreeShipping site to browse the deals. Many saw a big one-day spike in sales on the event day.

This year Free Shipping Day is back and bigger than ever--Knowles is expecting more than 500 retailers to get on board, which should translate to even bigger traffic. If you can afford to eat the shipping costs for a day, it should be great free marketing exposure--your company logo and free-shipping offer gets posted on the FreeShippingDay.com site merely by visiting the site and filling out a form.

Have you seen any other good free-marketing offers for this holiday season? Comment below and let us know.]]> tag:blog.entrepreneur.com,2009://12.413test 2009-10-26T17:01:19Z 2009-10-27T16:47:14Z

Entrepreneurs typically have a passion for the business they've created. With the economy down, many business owners are facing tough decisions about how to keep their business afloat until sales improve. What would you be willing to do? For instance,...

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 Entrepreneurs typically have a passion for the business they've created. With the economy down, many business owners are facing tough decisions about how to keep their business afloat until sales improve. What would you be willing to do? For instance, would you liquidate personal assets to keep your business alive?

A recent study shows more small-business owners are contemplating doing just that -- dipping into their own funds to keep their business going. The Discover Small Business Watch survey of 750 small-business owners found nearly two-thirds--61 percent--of owners thought it likely they would tap into personal assets to stay afloat within the next year.]]>
Forty percent said it was "very likely" they would use their own cash, while another 21 percent said it was "somewhat likely." These owners mostly don't plan to hit up friends and family, either--67 percent said it was "not very likely," or "not at all likely," that they'd get more operating cash that way.

Just a month ago only 46 percent of small-business owners surveyed said they were experiencing cash-flow issues.

Reading this study made me think about the businesses I see struggling in my own town. Some are trying hard, marketing everywhere--on city-specific online forums, sponsoring events, using Val-Pak. But many others have become invisible.

Right now the main strip mall in my town is home to a large, empty former Pizza Factory space that went independent, and then shut down--which no one has wanted to lease for more than a year. Next door is a crepes shop that went bust. Across the parking lot is a large empty space that was a mom-and-pop coffeehouse. And down from that, perhaps saddest of all, is a new yogurt shop that opened at the end of summer, too late to catch its prime season in my chilly Seattle-area market. I've seen zip in marketing from that new store, which also doesn't bode well.

Other local businesses I know are likely shoveling their own money in hand over fist right now to keep going. Which would you do--put in your own cash, or close your doors? Are you thinking about tapping your personal assets to survive?

That's always a risky proposition, as you don't know if you're throwing good money after bad. What are you willing to do to make it through the downturn? Leave a comment and tell us your strategies for keeping your cash flowing.

]]> tag:blog.entrepreneur.com,2009://12.412test 2009-10-22T05:14:07Z 2009-10-23T17:16:15Z

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 President Barack Obama's small business rescue plan, which has been around for more than a year, came back into the spotlight Wednesday, when Obama announced three specific proposals aimed at funneling more loan money to small businesses.

The big questions: Can he get these initiatives passed anytime soon? And if so, would it help?]]>
While big banks got billions in Troubled Asset Relief Program (TARP) funds in the past year, little of those funds were used for small-business lending. Instead, small business has been caught in an unprecedented lending and credit crunch for two solid years. 

The new initiatives aim to change that by:

• Granting community banks with less than $1 billion in assets new power to borrow at a lower rate -- 3% instead of the 5% currently offered. In return, participating banks would be required to submit a lending plan demonstrating how they will use the funds to expand their small-business lending.

• Increasing the lending limit on major SBA-guaranteed loan programs from $2 million to $5 million. SBA's micro-loan program would also expand its limit, from $35,000 to $50,000.

• Also calls for the convening of a Treasury Dept.-SBA small business lending conference, to work on ensuring small businesses have access to credit.

The National Small Business Association weighed in immediately with its opinion that time is of the essence in passing these type of reforms, and that more needs to be done to make sure banks increase their small business lending.

Most of this we've heard before, and bill drafts for them have been introduced before. And were introduced again Wednesday, by Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu (D-La.)

Can Obama get this done? If so, is it too little too late? Or would it help your business? Voice your opinion in the comments below.]]> tag:blog.entrepreneur.com,2009://12.411test 2009-10-21T16:42:32Z 2009-10-21T23:10:52Z

Most of us believe there's no way to prepare for Murphy's Law but wouldn't it be nice if you could? Enter The Worst-Case Scenario Business Survival Guide, a guide for surviving the most dangerous business situations. This isn't some thick...

Kimberlee Morrison http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=20 Most of us believe there's no way to prepare for Murphy's Law but wouldn't it be nice if you could? Enter The Worst-Case Scenario Business Survival Guide, a guide for surviving the most dangerous business situations.

This isn't some thick theory heavy business text. Instead, the authors David Borgenicht and Mark Joyner have teamed up to provide a step-by-step guide for dealing with five core business emergencies: finance, HR, productivity, sales and marketing and executive.]]>
Using a reference guide format, each chapter of this survival guide takes on several possible scenarios--the worst-case--and maps out a plan for the best course of action. This is not a book you need to read cover-to-cover, however, it is intended to be a quick-reference tool for addressing common business problems and other unforeseen emergencies. Things like avoiding "death by meeting," fending off an employee coup and surviving when you can't make payroll.

While most of the time, the claim that "this book could save your business" would certainly be eye-roll worthy, this book is all about practical application. Even if you think your business is doing well, you'll want to keep this book handy. Who knows, one day you might find yourself facing the possible demise of your business and The Worst-Case Scenario Business Survival Guide could be just the tool you need to ensure your business gets through the crisis without being crushed.]]> tag:blog.entrepreneur.com,2009://12.410test 2009-10-21T04:18:58Z 2009-10-22T15:41:00Z

I'm always fascinated by companies that present potentially disruptive new ways of communicating that could transform how we reach out to customers and find clients. This week, I've collected three interesting startups that are combining existing communication forms to create...

Carol Tice http://mt.entrepreneur.com/admin/mt-cp.cgi?__mode=view&blog_id=12&id=19 I'm always fascinated by companies that present potentially disruptive new ways of communicating that could transform how we reach out to customers and find clients. This week, I've collected three interesting startups that are combining existing communication forms to create new modes for reaching out. They may not all be quite ready to use yet, but consider these concepts brain food to expand your idea of what is possible.

The U.S. Postal Service may want to watch out for Zumbox--it's providing a way for companies (and everybody, ultimately) to send formatted PDF mail direct to customers' computers, saving the postage stamps. The company's technology enables them to create a computer inbox--or Zumbox--for every street address in America. So companies don't need to know customers' e-mail addresses--with a street address (and the customer's permission) the company can electronically deliver their mail. Besides saving on postage, this will also allow companies to send interactive, multimedia mail with clickable links, videos, you name it.]]>
Powerful idea, eh? Not a surprise that the company recently landed $8 million in venture capital from a high-powered array of individual investors that includes former Disney chief Michael Eisner. It's also attracted a high-powered lawsuit from Pitney Bowes over its technology. (The story of how Zumbox put its funding deal together is slated for the January issue of Entrepreneur magazine.)

In a similar vein, web-based international phone-service provider JaJah has figured out how to link customers' Twitter addresses to their phone numbers, so if you both have Twitter names, you can call each other on any landline or celphone. Could be handy for those who do direct marketing and cold calling. Currently in Beta, the feature allows Twitter users to tweet @call @twittername, which causes both your phones to ring. 

Since I'm always advocating for business owners to unplug and talk to live humans a bit more, I like this. After all, there's only so much you can get across in 140 characters. On the other hand, could be a bunch of junk phone calls in my future. But that's what my Caller ID box is for.

Finally, TwirlTV brings the create-your-own-playlist ethos to television, online. Currently in a limited Beta, TwirlTV is aimed at Gen Y TV viewers, who can browse shows and share their favorites with friends online. Their site says they've got over 375 shows and 4,800 episodes available. Lastly, have to mention that their corporate "About Us" page is a link to their Facebook fan page. Now that's a company that knows where to reach its audience.

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