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Mid-Life, Small Business and How Goldman Sachs will Help
One of the upsides of this recession is that it gave a wake-up call to many people who were keeping their “inner entrepreneur at bay.” Actual layoffs and the uncertainty of long-term employment was a huge incentive for many people to finally start their own small businesses.
Making the mid-life leap to entrepreneurship is is perhaps a little less stressful in some ways. By your late 30’s or 40’s you likely know what it is you’re good at and where your interests lie. Even if you’re not sure, you’re more likely to ask the kind of meaningful questions you might not have asked as a 21 year old.
Do you have enough in your savings account to cover expenses like the mortgage/rent, utilities, children’s expenses, etc. for at least 6 months?
What will leaving your job mean for your retirement savings plan?
What about college expenses for your older children or plans you had to cover costs associated with weddings, showers, trips?
For many people in this group going rogue and leaving the workplace may mean some changes to some pre-conceived notions about their lifestyle.
Some will decide to downsize and choose the simple, frugal approach to living – at least until their business starts generating a profit.
Others will take loans from family/friends, credit cards or even banks. Of course there has been a lot of talk lately about how difficult it is to get small business financing from banks. From my perspective that’s always been the case for most small businesses, although this recession likely hasn’t helped.
But in a previous post I referred to stories of perseverance that paid off for small business owners. That’s an evergreen truth about the journey to entrepreneurship – perseverance is the foundation. But just yesterday there was some very good news regarding small business financing.
Blue chip investment bank, Goldman Sachs earned a whopping $3.2 billion last quarter and decided to do something to help spread the success around. In light of the public’s huge distaste for the bank bailout provided to that sector by the U.S. government, the bank decided to launch a $500 million initiative called “10,000 Small Businesses.”
According to CNN the initiative is “aimed at unlocking the job creation and economic growth potential of America’s small companies.” Included on the project’s advisory council are some of the nation’s most famous business leaders including Warren Buffett, Goldman Sachs’ largest shareholder.
Here are program highlights as taken from the Goldman Sach press release:
Program highlights include:
• Business and Management Education: Small business owners will receive practical business education delivered through partnerships between local community colleges, universities and other institutions. 10,000 Small Businesses will contribute $200 million to these partners to provide scholarships predominantly to underserved small business owners and build educational capacity.
• Mentoring and Networking: Advice, technical assistance, and networking will be offered to participating small business owners through partnerships with national and local business organizations, as well as the people of Goldman Sachs.
• Access to Capital: Goldman Sachs will invest $300 million through a combination of lending and philanthropic support to Community Development Financial Institutions (CDFIs). The investment will increase the amount of growth capital available to small businesses in underserved communities and expand the capacity of the CDFIs to deliver enhanced technical assistance to small businesses. 10,000 Small Businesses will provide technical assistance to graduates of the program to help them access other sources of capital.
• Advisory Council: 10,000 Small Businesses will be guided by an Advisory Council co-chaired by CEO Lloyd C. Blankfein, Warren Buffett, and Dr. Michael Porter of Harvard Business School. The Advisory Council will assist in the development, execution and evaluation of the program.
Note this initiative is primarily focused on businesses that have been in operation for at least two years. For more information you can visit the Goldman Sachs website.
The time is ripe for small business growth and it’s encouraging to see the small business sector getting the recognition and support needed to boost the creativity, energy and efforts needed to drive this economy upwards.
To your success,
Sharon
Marketing Tips for Green Businesses
No matter what type of business you’re in, adopting “green practices” can increase your bottom line. Switching over to energy efficient power sources and reusable materials are not just smart for the environment we all live in but can save you money and increase your customer base.
When you started your business and created your business plan one of your initial goals was to develop your unique selling proposition or that special something that would help your prospective customer to take interest in your business over a competitor’s.
Well, being known as a conscientious “green business” is one attribute that will set you apart from competitors who are not taking steps to be sustainable and caring members of their local and global environment. You definitely don’t want to be lumped in the group of businesses that are not conscientious about their behaviors and the world around them.
In a recent feature of the journal “The Environmental Leader” National Restaurant Association Sr. Vice President of Communications, Sue Hensley, reported the following:
“There is growing interest by consumers in wanting to frequent restaurants or feeling more positive about frequenting restaurants that are instituting green practices and I don’t see consumers’ interest waning in that area.”
In terms of profitability, The Environmental Leader suggests that developing marketing strategies to promote your “green business” can really help to increase your business’ bottom line. For instance if you’re saving money by switching over to energy efficient lighting and sustainable supplies – like reusable printer cartridges – don’t consider that ho hum news.
That’s the kind of information that’s turning you into a green business and a green business carries a lot good will with customers today.
Here are some marketing tips for green businesses that you can use:
- Identify your goals – do you ideally want to cut costs or build an image as a leader in your sector for environmentally responsible behavior?
- Be conscious of your bottom line and start small, if necessary. You definitely don’t want to lose money by investing to much, too quickly. Consider reducing energy since there are immediate savings with that strategy and changes can cost you very little to nothing. For instance, unplugging chargers when they are not in use, is just smart and creates savings. Switching to LED lighting will cost more initially, but will save you in the long run since these energy efficient lights last a very long time.
- Identify suppliers who are known for their green practices. There might even be opportunities for you to participate in an affordable joint promotional venture with these suppliers.
- Keep yourself informed and educated on best practices in managing a green business. Local chambers of commerce and online learning organizations for small businesses are great sources for efficient, affordable or free courses on this topic.
Look at adopting green practices as a smart way to market your company to engaged prospective customers and even the media, who are always interested in focusing on companies that stand out from the crowd.
What are you doing or planning to do to adopt some green practices in your company?
To your success,
Sharon
Why You Should Stream Your Teleseminar Online
By Lynette Chandler
Let me tell you a quick story. A few months ago I attended a
seminar series which was also streamed live online. In each
of those sessions, I noticed the number of online
participants versus the number of phone in participants was
on average double if not more. One day, the seminar was held
only on the phone. Can you guess what happened?
That’s right. Participant rates dropped to an all time low. The
next week we got back on both telephone and live streaming
online, total number of participants rose. Now this might
be a simplistic observation but it is clear, given the
choice people like to join a seminar session online. This
is a great reason for you to stream your teleseminar
online.
Conference calls can be expensive.
Depending on your provider, many charge by the number of
people and duration of the call. So if you have 15 people
on a call together for 60 minutes at a rate of 4.5¢
per minute per participant, you’ll be paying $40.50 per
session. May not sound like a lot but remember, if any of
those variables change, your cost changes too.
Reach a wider, international audience.
No matter where they are, if someone has an Internet
connection, they can ‘tune in’ without the hefty cost. I’ve
lived inside and outside the U.S. Believe me, no matter how
great the information is, it is rare I would dial into a
teleseminar with a U.S. number because the cost is too much
and this sentiment is shared by others. For a great many
people in the world, long distance is very expensive. No
doubt, they are lower today than they were 5 even 10 years
ago but it’s still not as affordable as what you’d get
dialing out of the U.S.
Another thing to consider is, many people do not know how
to dial International. A lot of times they also have to go
out of the home to purchase a calling card from a store.
These are all barriers to attending your teleseminar call.
If you’re already selling online, your customers
undoubtedly have access to a computer with Internet
connection. By streaming your audio (or video), you
eliminate those barriers.
Who are they going to call?
Even within North America where long distance is very
affordable, people still choose to spend their money
wisely. Remember, you’re not the only one holding
teleseminar calls. In any given week they could have 2 or
more invitations. If people choose to call in to several
seminars, it could add up to a small fortune at the end of
the month.
Don’t get me wrong, I’m not saying teleseminars do not
work. They do. Very well indeed and have a great track
record. Plus, it is a highly accessible technology around
the world. But the world we know is changing; so are
people’s preferences. And the technology available today
makes streaming content and web conferencing easy and
affordable. So if you could reach a few more people by
streaming it online or adding a web conference component to
your teleseminar, why wouldn’t you?
Lynette Chandler helps entrepreneurs recognize and apply the power of technology and its trends to their marketing. Learn how web conferencing can help improve your business today at www.bizfactsonline.com/webconference.
Article reprinted with permission from LadyPens.com
Rise of the Home Based Business
Home based businesses aren’t new but what they contribute to the economy is becoming top news. Together, the 6.6 million home based businesses in the U.S. employ one in 10 private sector workers and provide at least half of their owners’ household income. These findings and more are part of a report on home based businesses recently published by Emergent Research.
So can hard working employees and professionals replace their incomes with full-time home businesses? That bit of information is a little less encouraging…for some. According to the research only about 35% of home based businesses have revenue above $125,000, whereas 75% entrepreneurs doing business in commercial settings generate revenue over that amount.
Given the emotional and financial roller coaster we’ve been on during this recession I’d wager a bet that higher income earners are looking at their $100K plus salaries with a little less certainty than they once did. The fact that a home based business may offer less income in the early years is becoming less and less of a determining factor for the employee-would-be-entrepreneur.
Throw in the huge and affordable marketing potential of the Internet and the drop in initial earnings for the new home based small business owner is even less important. Businessweek recently did a story on the “homepreneur” trend and interviewed former programmer and now home-based business owner Stephen Labuda.
Like many savvy business owners Stephen started his business on the side back in 2003 while he was employed as a full-time programmer. He took his own business full-time three years later in 2006. Today his home based web development firm is generating revenue in the millions and he now employs people who work from their own remote locations.
In a previous post I spoke about U.S. Labor Department reports indicating a huge labor shortage in our future and the role that small businesses are likely going to play in helping large U.S. companies to remain competitive. Companies won’t be able to hire all the expertise they’ll need so they’ll be looking to outsource and small businesses will have the skills and innovation they need.
As smart people with a lot of experience from downsized corporate America begin to launch low-debt small businesses in their homes, we will, as a nation, begin to build a foundation for business innovation and success that’s not rooted in huge capital but rather in knowledge and people. That’s a sustainable combination from my perspective.
If you’re in the small business planning stages or currently running your home based business, one of the best things you can do (if you haven’t already done so) is connect with a mastermind group of fellow home based entrepreneurs. I repeat this advice in as many posts as possible because you really can’t achieve full potential in a vacuum. Asking questions of others who have already done what you’re attempting to do and succeeding at it, is one of the best things you can do to ensure the success of your company.
The Internet is all about connection and smoothing learning curves through collaboration and online learning. It really is an exciting and pivotal time to start a business. In the spirit of connection, I’d love to know – what’s your business interest and passion?
To your success!
Sharon
Create An Affiliate Program
Just about every small business owner has the opportunity to expand their scope of business through the Internet. One of the best marketing strategies for a small business is the creation and management of an affiliate program.
An affiliate program allows others who like your product or service to let the world know about your business through a special promotional program that your business manages.
You may have already considered the idea of launching your own affiliate program because of the success of your current business. If that is the case then this is good news for you–you’re already off to a great start.
You have a product that you believe in, that you know sells and that has the potential to be profitable. Your next goal is to multiply your customers and one of the best ways to do that is through an affiliate program.
You’re the expert when it comes to your business and often times your the best sales person. But you can’t reach everyone. With an affiliate program you have a sales army of affiliate marketers who can reach hundreds, even thousands more potential customers in a way that is cost-effective, efficient and proven as a sales model.
All you have to do is provide the resources – like sales materials and training – and they will bring in the sales. If it sounds a little too straight forward it’s because it is very straight forward.
When launching your own affiliate program, it’s a good idea to start with the best software that you can afford. Your goal is to offer a one-stop resource for payment reports, promotional material, sales trends, etc. A good affiliate management software program will provide that kind of comprehensive data in a format that is very accessible to both you and your affiliate team.
With a good affiliate management program you should be able to create and post important information like your affiliate agreement, terms and conditions, and any kind of graphic or copy that your affiliates can use to advertise your business. In this way you will also be able to manage and control your brand and that is always important.
In addition, you will want to purchase software that offers a commission tracking functionality and other services like auto sign-up and automated management of all affiliate work. Securing powerful affiliate management software is the best way to ensure that your program will not only be successful, but manageable.
To learn more about how to create and manage an affiliate program I suggest you consider getting Alice Seba’s Affiliate Manager Training Course.
Can your business do with a sales boost? What are your questions or ideas regarding affiliate sales management and your business?
To your your success,
Sharon
