Daily Deal Site SaveMore Accused of Being a Scam |  |
- Daily Deal Site SaveMore Accused of Being a Scam
- Obamacare Decision by Supreme Court Will Impact Small Business
- Why Green is Still Gold
- 4 Social Media Practices That Boost Results
- Which Demographic Groups Have Suffered the Greatest Decline in Self Employment?
- Learn the Rules for Entrepreneurship
| Daily Deal Site SaveMore Accused of Being a Scam Posted: 02 Apr 2012 07:21 PM PDT The Better Business Bureau has issued an alert to the public about daily deals site SaveMore.com, which according to over 1,000 complaints “took money for daily deal coupons, never delivered.” This case illustrates one of the risks of dealing with daily deal sites whether as a consumer or as a business offering the deals. If the operator of the daily deal site does not follow through and honor the deal that it sold, it leaves a trail of spitting-mad consumers and legitimate businesses that may lose money and get their reputations sullied in the process when unhappy consumers complain.
According to the Better Business Bureau, customers in 45 out of the 50 U.S. states have filed complaints. SaveMore has a BBB rating of F, the lowest possible. Michelle Corey, BBB president and CEO, is quoted as saying the number of consumers affected is astonishing. “We may never know how many people were taken in by this company,” she said. SaveMore shares close ownership ties with Douglas Van Arsdale, founder of debt settlement company, Credit Solutions of America. Credit Solutions was sued in 2009 by several state attorneys general. Daily Deals Media points out more about the people and network of companies surrounding SaveMore. The article also points out that a number of the “merchants” featured on the SaveMore website are actually affiliated with SaveMore in some way. It also appears that legitimate small businesses have not been paid for deals that SaveMore issued in their name and have filed complaints. As of this writing the SaveMore.com website is still up and running. The site is still apparently accepting money from unsuspecting consumers, and possibly snaring more unaware small businesses to sign up to offer deals. The site claims to have saved over $9 million — the only question is for whom! There’s a lot of press right now about Groupon and its IPO, but in my view the real story in the daily deal space is not about a legitimate company like Groupon. Rather, it’s always been about the potential for fraudsters playing in this space. Just look at the daily deals business model. It’s simply too easy to set up a website, collect email addresses, and purport to sell people something in the form of a voucher or coupon – and then pocket the money. Even a legitimate daily-deals company with the best of intentions can run into trouble and find the money all too tempting when the rent is due. And then consumers and small business merchants get hurt. From Small Business Trends |
| Obamacare Decision by Supreme Court Will Impact Small Business Posted: 02 Apr 2012 02:30 PM PDT The Supreme Court concludes arguments on President Obama’s health insurance overhaul this week and whether to strike down the health insurance reform measures.
Signed into law by President Obama two years ago, The Patient Protection and Affordable Care Act — commonly referred to as “Obamacare,” is designed to reform the American healthcare system. The law requires individuals not covered by employers or government-sponsored insurance plans to purchase health insurance or pay a penalty. This is what is called the “individual mandate.” The act also increases insurance coverage of pre-existing conditions and expands access to insurance to 30 million uninsured citizens. At the heart of the debate is the requirement that Americans carry health insurance or pay a penalty. Opponents claim that requiring citizens to pay for health insurance is unconstitutional. The National Federation of Independent Business (NFIB) is arguing against the “individual mandate” of the Affordable Care Act. According to an article by Emily Maltby and Angus Loten of The Wall Street Journal, the:
Many small business owners claim that if they are required to pay for their employees’ healthcare costs they would not have sufficient cash flow for operating costs and would be forced to close their doors. The last thing that the American economy needs, at a time when the recovery from the Great Recession is still so fragile, is a law that increases the cost structure of small companies. The Supreme Court could strike down the individual mandate. However, in doing so, two important and politically popular sections of it would suffer: the rule that prevents insurers from declining coverage or charging higher rates due to pre-existing medical conditions. I agree that something must be done about the healthcare system. As many physicians tell us, they are squeezed on both side of the accounting ledger. Operating costs — including ever-rising malpractice insurances rates — keep rising. Additionally, those who are still paying off medical school loans have an added financial burden. Further, the government has mandated that health care providers transition from paper patient records to electronic medical records by 2014. While there are many benefits to having digital records, it is time-consuming and costly. Converting to digitized patient records can run in the tens of thousands of dollars, depending on the size of the medical practice. Meanwhile, numerous insurance companies no longer pay in 30, 60 or 90 days, they take 120 or more to settle claims. Medicare pays sooner, but the reimbursement rates are capped. If, for example, a visit or a procedure is capped at $70, it is not fair to doctors in places like New York, New Jersey, Philadelphia, LA or Boston, where overall operating costs are so much higher than in less densely populated areas. What’s worse is that private insurers tend to mirror Medicare rates. Clearly something has to be done to prevent physicians from going broke while enabling small businesses to thrive. It is no secret my support for small business owners and my belief that entrepreneurship is indeed the way to grow the economy. Placing the healthcare cost burden on small businesses will suppress the number of jobs that they are able to create. We need to bring tort reforms to control the cost of malpractice insurance premiums for doctors, as well as cap the healthcare premium increase which small businesses have to pay on a yearly basis. Obamacare Photo via Shutterstock From Small Business Trends |
| Posted: 02 Apr 2012 11:30 AM PDT My fellow Small Biz Trends columnist Joel Libava recently wrote a thought-provoking post asking: Are Green Businesses Still Golden? He points to some possible signs that the green business movement may be sputtering, such as the temporary shutdown of Chevy Volt production and solar panel maker Solyndra's high-profile failure. He questions whether businesses will continue to invest in sustainable business models and products as the economy recovers, or if they're simply too focused on making up for lost time and money.
I offered some initial reaction in the comments section, but thought I'd give a more formal response. I agree with Joel about the financial pressures small businesses face and how these could be slowing the green movement – especially when it comes to high-priced and high-impact investments, such as installing solar panels or wind turbines. However, there are plenty of signs that green business is alive and well, and will continue to be into the future. For one, corporate spending on sustainability continues to grow – likely because they have the cash reserves and profit incentives to do it. Small businesses often compete against these companies and will have to keep up. Also, consumer interest in environmentally friendly products hasn’t abated as much you might think, despite the recent slow economy. Surely, some consumers stopped buying green products due to the economy, but more consumers also started buying green products regularly. Consider the growing movement toward sustainable agriculture and organic foods. More consumers are paying a premium for healthier, sustainable foods. The Toyota Prius, which costs a good $8,000 more than typical subcompact cars, is still a hot seller. (The Chevy Volt is a different beast, considering it's 1.) electric and 2.) costs $43,000.) That said, there are certainly products that have suffered in the bad economy. While consumers may be willing to spend an extra 50-cents on organic grapefruit, they may not be so willing to spend an extra $200 on an office chair made of 100% recycled materials. It comes down to their priorities and perceived value. They may be more willing to devote money to eco-friendly purchases as the economy picks up. Looking to the future, businesses that market themselves as "green" may have more of an uphill battle because so many mainstream companies are integrating eco-friendly practices and products and services into their business model. Just being green isn't enough anymore – a business’s products and services have to be the more user-friendly, well-priced and better designed than their competitors.
From Small Business Trends |
| 4 Social Media Practices That Boost Results Posted: 02 Apr 2012 08:30 AM PDT Is your business in the current social media cycle? If not, then you seriously need to think about changing that.
Here’s the reality and the truth … Social Media is NOT a fad. It has done nothing but grow in use and popularity since its inception. And now, in 2012, people are going beyond blogging and beyond simply posting photos and videos and are embracing new devices and experiences in the social media world. Everything from the cloud and niche social sites to social TV and social shopping are the new frontiers. McCann Worldgroup’s Chief Innovation Officer says:
Social Media Today noted two emerging trends this year: Transmedia and Micro-Economy. Transmedia is:
For example, Coca-Cola created an amusement park where guests swiped a wristband at kiosks located within the park that instantly upload to Facebook what they were doing, where they were doing it and how they were enjoying it. Micro-Economy is where goods and services are brought forth on smaller scales with a bent towards personalization. This trend opens up opportunities to individual entrepreneurs who do not possess the manufacturing and distribution resources of the conventional companies. Pinterest, a social media site, is a virtual pin-board that allows users to organize and share all the things they love on the web. Businesses must embrace these tools to stay relevant in today’s ever-expanding social world. Here are 4 social media practices for business that can boost your results: 1) Use the social platforms in tandem: If you are an avid blogger, push out your material on Facebook, LinkedIn and Twitter so you are reaching all of your available audiences. Build Reach. Social dashboard tools are getting more popular allowing you to develop content, keep track of trending topics and manage your social profile all in one place. 2) Use the platforms where your customers live and engage: Do the research. Find out what social media tools your customers are using and reach them there. Just because something emerges and is hot doesn’t mean you should be or need to be on it. Use what works for you and your customer, converts them and gives you an ROI. 3) Evaluate, review, reapply: Like any other marketing tool, test the waters. If you find your efforts are not hitting the mark, try a new approach. Keep trying and testing, and look at what your competitors are having success doing. 4) Keep your information and content fresh and up to date: If you want to grow your community and business and you want people to consistently come back to and refer your sites than keep them interesting and fresh! Here are some resources to help you do that:
And Seth Godin has written more than a dozen bestsellers that will get you on the right social media marketing track. One more resource I recommend is John Jantsch’s Duct Tape Marketing blog. John delivers smart, common sense and thoughtful marketing information for any small business. He suggests using “whatever converts and get’s you closer to your customer.” Where are you in the social media marketing cycle for your business? How have they helped you boost your business?
From Small Business Trends |
| Which Demographic Groups Have Suffered the Greatest Decline in Self Employment? Posted: 02 Apr 2012 05:30 AM PDT The financial crisis and the Great Recession were not good for people in business for themselves. Between 2007 and 2010, the number of self-employed Americans dropped 7.4 percent as recently released Small Business Administration (SBA) data shows.
As bad as this might sound, the situation was worse for several demographic groups: • Self-employment declined more among men than women. The number of self-employed men declined 8 percent from 2007 to 2010, while the number of self-employed women dropped only 6.3 percent. • Minority self-employment dropped more than White self-employment. Between 2007 and 2010, the number of Whites (Caucasians) in business for themselves declined 6.5 percent. Among Hispanics, the drop was 11.3 percent, and among Asians it was 12.3 percent. For Blacks (African Americans), the decrease in self-employment was a whopping 17.1 percent. • Self-employment among the young fell, while among older people it increased. The number of self-employed people under the age of 25 fell 11.8 percent between 2007 and 2010. For people aged 25 to 24, the decline was 11.2 percent; for those aged 35 to 44, 18.2 percent; and those 45-54, 8.3 percent. By contrast, the number of self-employed Americans aged 55-64 rose a slight 0.4 percent, while the number of Americans over 65 in business for themselves increased a solid 8.5 percent. • Self-employment declined more among the less educated. Between 2007 and 2010, the number of self-employed Americans without any college education dropped 10.5 percent, while the number with some college declined 11.6 percent. The number of people in business for themselves with a bachelor's degree fell a more modest 4.7 percent. But those with a master's degree or higher increased 4.6 percent over the three year period. • Rural self-employment dropped more than self-employment in urban or suburban areas. The number of self-employed Americans living in central cities declined 5.6 percent between 2007 and 2010, while in suburban areas, it fell 8.4 percent. In rural areas, it decreased 11.8 percent.
From Small Business Trends |
| Learn the Rules for Entrepreneurship Posted: 02 Apr 2012 02:30 AM PDT The rules of entrepreneurship are always changing. From mastering the latest rules of small business funding to identifying the next global hotspot for entrepreneurship, the information you need is always in flux. What new rules for entrepreneurship have you learned? Funding & Global TrendsCrowd-funding becomes bigger option. A new law makes crowd-funding more feasible for small businesses. Is it good or bad? It could make it easier for your business to get the funding it needs. What do you think? WSJ Is Greece the next growth center? It could be, despite the bleak economic picture. Here’s what some enthusiastic business people are doing to change the status quo in this new frontier. You’re the Boss Integrity & EthicsWhy integrity really matters. Is integrity something you’ve written into your business plan? It should be. Here are some ways to be sure that yours shines through and makes a difference in your market. Startup Professionals Musings Another point of view on healthcare. Not every entrepreneur thinks the healthcare act is a bad idea. Though the controversy continues and many small business owners are clearly unhappy, here’s another view. USA Today Startup LessonsThe true role of entrepreneurship. Readers in the U.S. and elsewhere will likely find the point of view in this article familiar. Countries that seek economic growth will find the recipe is not that complicated. The Express Tribune Steps to a brilliant marketing plan. Here’s a look at how some businesses have reinvented marketing. If you’re an entrepreneur planning to unleash the next big thing, consider these tips on how to revolutionize your marketing effectively. Drew’s Marketing Minute Better Business ModelsThe most important lesson. What does great entrepreneurship have in common with fishing? The answer will teach you the difference between a great business idea and a functioning business. WorkHappy.net Why hasn’t anyone ever heard of Dialog? The precursor to Google sold searches as a scarcity, but ultimately plentiful information proved the winning formula. Which reminds you of your business? New Rules for the New Economy Community & ConnectionA guide to community building. Entrepreneurs use communities both as a place for networking and a place for customers to engage with their product or brand. Here Small Business Trends founder Anita Campbell talks about how to build one. ColderIce Entrepreneurship goes global. Thanks to the power of the Internet, barriers that once separated us geographically are falling. Entrepreneurs large and small now operate in a new global world. How are you leveraging global resources? Forbes From Small Business Trends |
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