Tradesparency: Business Supplier Reviews |  |
- Tradesparency: Business Supplier Reviews
- Borrowing Startup Money from Family Members
- WordPress Backup Tool Review: BlogVault
- Accelerated Depreciation Isn’t the Cure to Small Business’s Problems
- Apple Releases Tweaked iPad While Details of iPad “Mini” Emerge
| Tradesparency: Business Supplier Reviews Posted: 22 Oct 2012 01:00 PM PDT For companies that import products or supplies from other businesses, finding partners and suppliers to work with that are trustworthy and professional can be a challenge. Choosing suppliers without knowing exactly how high quality their product is and how quick and easy the process is can cost too much money, time and resources for small businesses.
Now, business-to-business review site Tradesparency.com plans to give these businesses a venue to learn about suppliers and voice their opinions about what has and hasn't worked for them in the past. Said Tradesparency Manager Thomas Halvorsen:
Halvorsen says that Tradesparency is different from similar review sites because the team checks out each individual review to make sure they are written by real people, include real facts, and don't consist of any scams. And while Tradesparency does eventually plan to offer sponsored search results to monetize the site, Halvorsen says that Tradesparency does not and will not allow any companies with inferior products to buy good reviews or status, which he says has impacted the integrity of some other review sites. Tradesparency officially launched in July and is owned by Norwegian company Avobarks Marstan AS. The site is free and open to the public. Users can search different categories and products, as well as write their own reviews much like consumer review sites such as Yelp. Said Halvorsen:
The post Tradesparency: Business Supplier Reviews appeared first on Small Business Trends. |
| Borrowing Startup Money from Family Members Posted: 22 Oct 2012 11:00 AM PDT Starting up with just the next big idea is just that: an idea. In reality, new businesses need money, usually more than that amount initially calculated alongside that very first draft of the business plan. And sometimes, those funds can come from family. However, borrowing capital from family members is risky business. Sure, you can always cut bonds with an external investor when a deal goes sour, but you can't exactly burn bridges with relatives, especially just before seeing them at family gatherings. Even more so, these well-meaning lenders don't always know what they're getting into — and what they may not be getting out it in the end.
We asked members of the Young Entrepreneur Council (YEC), an invitation-only nonprofit organization comprised of the country's most promising young entrepreneurs, the following question to find out their advice for funding through family ties:
Here's what YEC community members had to say: 1. Be Transparent ‘Til It Hurts “It’s tempting to paint an eternally rosy picture for investors, but the reality of any startup is that there are difficult times. All of our first investors were friends and family, and we’ve managed to maintain strong, positive relationships by being completely honest — for better or worse. Transparency honors the risk early investors took and allows space for them to provide advice or help.” ~ Martina Welke, Zealyst 2. Remember, It IS Personal “It is easy to think that if we are upfront about the terms, transparent in our discussion, and even fair in our valuation that this will “just be business.” Unfortunately, it rarely is in the case of raising money from family. Chances are, there is going to be some type of emotion involved and it is going to be personal at some level.” ~ W. Michael Hsu, DeepSky 3. Stay Professional “Structure it like any other investment, and try to separate your professional self from your family self. Draw up contracts, act professional, and send formal “investor” updates each month.” ~ Abby Ross, Blueye Creative 4. Manage Expectations “Always manage expectations when it comes to borrowing money from family. At the time you "pitch" your family to be investors, don’t over promise on potential returns. By being transparent and continuing to keep them in the loop after they invest, you give them a sense of connection to the business — and less resentment if things go bad.” ~ Blake Beshore, Tatroux 5. Explain the Real Risks “Family needs to understand that they should only invest money that they are willing to lose. If they have disposable cash, then it will not be a large financial hardship if the money is lost. If family members can't afford to lose money, they shouldn't invest. It's the entrepreneur's job to be upfront and cl ear about this.” ~ David Ehrenberg, Early Growth Financial Services 6. Do They Like to See Money Burn? “The default state for a startup is death (http://paulgraham.com/hubs.html), according to Y Combinator founder Paul Graham. So be honest with your family. Ask them if they would be okay lighting their money on fire. If they can live with it, then let them invest. If not, then a relationship has been saved.” ~ Wade Foster, Zapier 7. Treat Them Like Real VCs “Pitch them as they were a high-level VC by bringing real presentation tools, a thorough business plan and facts to the table. Don’t skip on these important aspects to eliminate any bad feelings of abuse or problems down the road.” ~ Raul Pla, SimpleWifi and UseABoat 8. Represent All Outcomes “Prepare them for the worst. Let your family know that there’s a high likelihood that they’ll lose their money, and that they should think of the investment as a gift. Most startups fail. If they aren’t willing to invest under those terms, then don’t take their money. Avoid overselling them so they don’t feel duped later.” ~ Bhavin Parikh, Magoosh Test Prep 9. It’s Strictly Business “Taking money from friends and family can be tricky. It’s important to treat the deal with the professionalism as you would when dealing with a VC. Be transparent and make sure your friend or family member has done the proper due diligence, read all the documents and is investing because he or she believes in not only you, but also your business.” ~ Kevin Tighe II, The Brand Stars 10. Maintain Communication “Families are a tricky bunch. Having worked with mine for the past 5 years, I’ve learned some of the nuances necessary to keep relationships healthy. Make sure you designate one person as your point of contact and by all means communicate with them. Even if it feels like court reporting, they appreciate being kept in the loop. It can feel like an extra job, but it is. You wanted family money.” ~ David Cohen, Round Table Companies 11. Sell Your Idea “Ideally your supporters are investing in your idea and not just in you. Tell your family and friends your idea and if they are interested and able, they will want to invest. If you know a donor is investing solely for personal reasons, accept the donation with no strings attached, but know where you stand with them and replace them with donors that care about your idea.” ~ Melissa Kushner, Goods For Good 12. Smaller Amounts Are Key “Don’t talk Grandma into investing her entire pension. Just make sure your family members invest a comfortable amount, in case things go sour. It’s better to have more people put in small amounts than to share your parents’ basement with Grandma after you both go bankrupt.” ~ Nicolas Gremion, Foboko.com Borrowing Money Photo via Shutterstock The post Borrowing Startup Money from Family Members appeared first on Small Business Trends. |
| WordPress Backup Tool Review: BlogVault Posted: 22 Oct 2012 08:00 AM PDT Last year we did a post reviewing 10 backup tools and utilities for WordPress. There are plenty of options, but I came across the BlogVault WordPress backup system recently and felt it is an excellent solution for small business owners who simply don’t have time to fuss with the backup process. BlogVault is a Web-based service that allows you to backup your entire WordPress blog or website with just a few simple clicks. What you can see in the screenshot below is that BlogVault has automated the process of installing a WordPress plugin. You can manually install the plugin, if you prefer. I took the service through the automatic option and was pleasantly surprised at the thoughtful design and step-by-step guidance. Plans start at $9/month with a 7-day free trial.
What I Like about BlogVault
What I Would Like To See
Ultimately, BlogVault makes the online backup process simple and stress-free. Given that the whole idea of losing data, losing your website, losing your blog to a system crash with no backup is stress-inducing, the team at BlogVault worked hard to make sure they would reduce your concerns about a secure online backup plan. The post WordPress Backup Tool Review: BlogVault appeared first on Small Business Trends. |
| Accelerated Depreciation Isn’t the Cure to Small Business’s Problems Posted: 22 Oct 2012 05:00 AM PDT As part of an election year effort to show that he’s friendly to small business, President Obama has been claiming recently that he:
Accelerated depreciation allows immediate expensing of investment costs. By increasing near term tax deductions, the White House explains, small business owners get to keep more of their income.
Small business advocate, Dorothy Coleman, Vice President for tax and domestic economic policy with the National Association of Manufacturers, agrees, saying depreciation tax breaks:
But policies like accelerated depreciation are doing little to get small business owners into the President’s camp. A Manta poll conducted in the beginning of August has 61 percent of small company owners supporting Mitt Romney and only 26 percent supporting the Barack Obama. Moreover, the same poll reveals that 54 percent of small business owners believe that the Republican party is the biggest supporter of small business as compared to only 19 percent who think it’s the Democrats. While small business owners, no doubt, favor the Republicans for many reasons, one is surely the fact that the President’s policies help few small business owners. Consider Accelerated Depreciation The National Federation of Independent Businesses (NFIB) surveys have persistently shown that small business owners believe that weak demand for their products and services is biggest problem they face. With revenue weak since the start of the Great Recession, few small business owners making capital investments to expand. And if your business isn’t making capital investments, being able to write off their value immediately does little for you. Moreover, Internal Revenue Service (IRS) data shows that sole proprietorships (which make up 72 percent of all small businesses) in very few industries have much depreciation. In 2009, the most recent year of data availability, the depreciation deduction averaged only 6.8 percent of net income for sole proprietorships with net income. In four out of five small businesses operate in industries in which the average depreciation deduction was less than 10 percent of net income. If You Don’t Have Much Depreciation Expense Accelerating it doesn't do much for you. By the President’s own admission, accelerated bonus depreciation only benefits only 2 million small businesses. With the IRS reporting 31.6 million business tax returns filed in 2008, that means only a little over 6 percent of small businesses benefited from this tax cut. That’s just not enough small business owners to sway the polling data. Thumbs Down Photo via Shutterstock The post Accelerated Depreciation Isn’t the Cure to Small Business’s Problems appeared first on Small Business Trends. |
| Apple Releases Tweaked iPad While Details of iPad “Mini” Emerge Posted: 22 Oct 2012 02:30 AM PDT Business owners must consider all the variables whenever a new product or service is introduced. These can include price, cost, marketing, and customer response, and any one of them may spell the difference between success and failure. As Apple introduces another series of tweaked and new products, we look at some of the factors that separate the winners from the losers. This Just InWe’ll do you one better. Apple is expected to announce an improved version of its full-sized, 9.7-inch Retina display iPad, just half a year after the company’s third generation iPad was released. The device is expected to be announced at a media event this week. It’s an example of tweaking a product to get it just right, rather than a complete revamp, and will be offered at the same price. 9 to 5 Mac Downsizing. Meanwhile new details have emerged on a rumored 7.85-inch iPad, dubbed the “iPad mini,” also expected to be unveiled at this week’s media event. The smaller device could retail for about $299 according to analysts, making it, like its big brother, the iPad, among the company’s lower profit margin devices as compared to other, high profit margin mobile products like the iPhone. Apple Insider Listening CloselyLessons from Zuckerberg. There are thousands of successful entrepreneurs who have advice about how to create better products and services. Facebook CEO Mark Zuckerberg, for example, advises businesses to listen to their customers both qualitatively and quantitatively before developing their next offerings. Tech Crunch One bad experience. Failing to listen can have other unfortunate consequences. For example, one bad customer experience, like the one described here by blogger Jeff Yablong about customer service at Virgin America, can easily gain traction. If that negative experience is shared in the right context and spreads to enough other customers, the results could be serious. The Answer Guy The Marketing PartSelling margarita pizza. Marketing CEO and blogger Gee Ranasinha insists that the successful marketing of a product must start with the product itself. For example, starting with a boring product that is already very popular may be a bad idea since there’s most likely someone already providing that product. Maybe it’s time to find something a bit more unusual to sell. Kexino The keys to success. Business success goes far beyond the products themselves. Issues like your brand, profit margin, and company culture also come into the mix. Don’t forget the importance of all three when developing your products and your marketing plan. Customers take all of them into consideration when choosing whether to buy from you, says digital marketing consultant Brad Smith. Social Media Today Two simple things. When using social media, or any other marketing channel, for that matter, finding the best way to communicate with your customers and measuring that interaction have become best practices. Susan Oakes shares this post about considering both issues when creating your marketing plan. M4B Marketing The post Apple Releases Tweaked iPad While Details of iPad “Mini” Emerge appeared first on Small Business Trends. |
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