In case any small business owners have had any doubt about the president’s priorities when it comes to the economy, President Obama has stated that small businesses are essential the American economy and has noted the problem that small businesses have nowadays in getting credit.
Obama’s weekly radio and Internet address gave the President the opportunity to urge America’s banks to step up their lending to creditworthy small businesses, stating that it is the banks’ responsibility to finance the small business engine. He also announced several programs that would spur lending, such as capital injections into community banks that would allow …read more

Small businesses are all but starving for cash after the financial crisis has left many of the largest banks unwilling to lend money. President Obama hopes to reverse this trend by introducing a series of initiatives that will hopefully increase bank lending to small businesses, the cornerstone of the American economy.
Among the programs that Obama plans to incorporate is a program that would increase the maximum amount of money that businesses can borrow through the Small Business Administration’s main loan program, which currently stands at $2 million.
The Federal Reserve will also allow wider access to the TARP program, which will …read more

There is strength in numbers, but only if those numbers join together.  The U.S. has about 26 million small business owners (defined as having under 500 employees) but there is very little in common between these businesses.  Of the 26 million, most (about 20 million) were solo businesses, with no employees.  That is a lot of one-person businesses!
The average income for these solo small businesses is under $10,000 in annual receipts.  Not a wealthy group, by any means.  Small businesses struggle in the best of times, and these certainly aren’t great times for business.  And it is difficult for small …read more

Every small business owner has had to contend with “nightmare” employees.  For example:

The young man who had his mother write a note for him “excusing her” from working a business event.
The young woman who showed up for her interview with her mother in tow.
The father who berated the business owner for giving his daughter a poor evaluation, because it “damaged her self-esteem”.
The woman who showed up for work at a health care office smelling like smoke, and who said she was “into” health (whatever that means).
Or how about the charming young man who shows up with a multi-color mohawk?!
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While …read more

Today’s Sunday Saying: Think before acting; and whilst acting, still think. Dutch Proverb (courtesy of Quotations.About.com)
IBM has a famous slogan: THINK.  That’s it.  That was the slogan.  It was developed by IBM founder Thomas J. Watson back in the 1920’s.  Watson said in explanation: “THINK. Think about your appearance, associations, actions, ambitions, accomplishment.”
What does “THINK”mean? I am guessing it means something like what the Dutch proverb says: Think first, then act, but keep thinking.
In a small business, you really have to keep thinking.  Case in point: A business lawsuit resulted from the owner’s thoughtless comment to employees …read more

After 101 years, General Motors is ending its journey of being the largest automaker in the world. When we look at a company like General Motors, we think about how big it is.  We forget that it once started out small. All businesses start with one location, one small group of employees (or even NO employees) and they grow.  Here are some examples of large companies and their humble origins
Some well-known examples of companies that started from humble origins.
Wal-Mart. A photo of the first Walton’s 5&10 in Bentonville, Arkansas. This store is actually a converted Ben Franklin that Sam Walton …read more

Consider this: The global market for ringtones in mobile phones is estimated at $1 billion.  That’s right.   People pay over $1 billion a year to get special ringtones on their phones, iPhones, and iPods.  Don’t tell me there isn’t a market for what you are selling.  You just have to find it.
The Long Tail Theory. In 2004, Chris Anderson wrote a piece for Wired about “The Long Tail.“  His theory: “The future of entertainment is in the millions of niche markets at the shallow end of the bitstream.” The key word here is “niche:” a small segment of the market …read more

As the economy takes its toll on small businesses, many are finding it economically difficult to continue to support retail stores, so they are moving back home to avoid rent and overhead.  The Wall Street Journal recently profiled several such small businesses which found that moving home with their businesses also caused some issues to be uncovered.
Checking For Moving Home:

Zoning regulations. Check on zoning regulations for your home. If you are running an online business, it shouldn’t be a problem, but if you want your current customers to come to your home, you might have to get a variance.
Announcements. How …read more

Today’s Sunday Saying:
“Smiling makes you feel better about yourself, even if you don’t feel like it. And it always makes other people think better of you.”
Are you having a bad day?  Don’t let your customers know.  Case in point: I am helping a friend manage some rental properties and I had to call the cleaning service this morning to report that one of her cleaning crews was not doing their job.  When I called, she answered in an unfriendly manner.  I have known the owner for several years, so I identified myself and said cheerily “Hi Darla.  How is your …read more

Health care reform is the hot topic on “The Hill” these days.  Most of the discussion focuses on individual health care, and big businesses have health care plans, but what about small businesses?  Will they be treated like individuals? Or like big businesses?
A recent NYTimes article discusses the question many are asking: How will small businesses be affected by health care reform? I did some research a while back for a  blog post on health insurance for small businesses, and I got a ton of responses from insurance companies, so I have been asking questions.  I found out why …read more