Tuesday, April 30, 2013

Learn About SMB Internet Security – Chat Recap

Learn About SMB Internet Security – Chat Recap

Link to Small Business Trends

Learn About SMB Internet Security – Chat Recap

Posted: 29 Apr 2013 04:00 PM PDT

A recent report from Symantec shows that cyber criminals target small businesses more frequently.

To discuss specific findings from that report, Symantec recently sponsored a Twitter chat and made two experts available on Twitter to answer questions on the topic of SMB Internet security.

Kevin Haley, director, Symantec security response, Symantec – @kphaley, Jay Epton, Director SMB Sales for the EMEA Northern Region, Symantec – @Jay_Epton, and yours truly, Anita Campbell, Small Business Trends joined up with other members of the small business community for the discussion. Below are selected highlights of that chat.


 


And Web-based attacks increased by 30 percent in 2012, Haley added. Of course, attacks on websites and computers aren’t the only way cyber criminals gain access to your important business data. The mobile revolution has opened up a whole new frontier for cyber crime.


 

 


But Epton said businesses must also understand the risks. For example, Symantec has found that in 2012, mobile malware increased by 58 percent. Haley added that an important step is to train employees about privacy settings on mobile devices and about the dangers of downloading rogue applications.

 


 


One of the most common attacks small businesses should be watching for is the so-called “watering hole” attack, Haley explained:  


 


For protection, Epton recommended deploying firewalls, gateway AV, intrusion detection and intrusion systems and Web security gateway solutions on your network. But he also said nothing can replace giving your employees the knowledge they need to counter the threat.  



To this end, how can we help employees and become more aware ourselves of the threats out there?


 


Detecting compromised sites is not so easy, given that legitimate sites are often hijacked by hackers, Haley said.



Security concerns give small businesses a lot to think about. Experts acknowledge protecting your business from cyber attack can be a bit overwhelming. But they say that’s exactly what makes small businesses such prime targets.



Thanks to Symantec for sponsoring this chat and for providing the subject matter experts as speakers.

The post Learn About SMB Internet Security – Chat Recap appeared first on Small Business Trends.

Bitcoin Exchanges Represent Considerable Risk

Posted: 29 Apr 2013 01:30 PM PDT

bitcoin exchanges

Bitcoin exchanges convert the popular digital currency into national currencies based on fluctuating rates. But the exchanges pose potential risk to users, a study finds.

A recent paper by researchers at Southern Methodist and Carnegie Mellon universities (PDF) says that 45 percent of the exchanges fail. The paper also says most close their doors without refunding users’ money.

Bitcoins have captured the interest of entrepreneurs worldwide. They are popular with businesses operating online and across International borders. Part of this appeal is that they are not regulated by any bank or country.

Researcher Tyler Moore, of the Lyle School of Engineering, Southern Methodist University, Dallas, explains his team’s findings in this video.

Researchers studied 40 Bitcoin exchanges on the Internet offering to convert Bitcoins into other currencies or back again, according to a summary of the report in Wired.

Of those, 18 have closed, 13 of them without warning, and only six have made an effort to refund the money deposited by users. The study also found that cyber attacks were not the main cause of Bitcoin exchanges closing. Only five of the exchanges the report studied shut down due to an attack from cyber criminals.

Moore avoids specifics about the major cause for exchange failure in his video explanation. But he says that businesses fail for a variety of reasons, including lack of interest in their products or services.

The study determined that smaller exchanges were much more likely to fail than their busier rivals. Conversely, larger exchanges were more likely to be victims of cyber attacks, Moore explained.

For example, researchers found exchanges handling 275 Bitcoins worth of transactions daily have a 20 percent chance of being breached. Compare that to exchanges handling daily exchanges of 5,570 Bitcoins. These exchanges face a 70 percent chance of successful attack.

The projected lifespan of Bitcoin exchanges is also cause for worry. The study predicts the median lifespan of a Bitcoin exchange at 381 days with a 29.9 percent chance that a new exchange will close within the first year.

Bitcoin Photo via Shutterstock

The post Bitcoin Exchanges Represent Considerable Risk appeared first on Small Business Trends.

30 Ways to Tell if You’re a Social Media Success

Posted: 29 Apr 2013 11:00 AM PDT

social media success

Social media is used by businesses to increase brand loyalty, share new products, and even gain new customers. Every company uses social media differently, some more successfully than others. Below are ways to tell if your company is a social media success.

30 Ways to Tell if You’re a Social Media Success

1. Customers Seek You Out

In the early days of creating a social media account, you likely had to try very hard to find new connections and convince them that your brand was worth following. If customers begin finding you without you needing to go through all this extra work, you're well on your way to social media success.

2. Your Message Gets Across

Even if you have a sizable network, your social media campaigns are worth nothing if your customers don't hear what you have to say. If customers acknowledge your message, or if you use tools like Facebook analytics to see that many of your connections actually viewed your posts, you're on the right track towards social media success.

3. You Gain Website Traffic

It's likely that one of your main social media goals involves getting your followers to a separate website, whether that's your online store, your company's site or your blog. Social media can be a great tool to bring visitors to your other sites, if you're using it effectively.

4. Followers Interact With You

A high follower count alone doesn’t necessarily make you a success if none of your followers respond to your posts. A more accurate sign of success is whether you gain responses, likes, retweets and engaging interactions from your followers.

5. People Talk About You

This is related to the point above. But instead of followers talking directly to you, they are talking to their other connections about you. This could mean they're recommending that others follow you or try one of your products that they recently purchased.

6. People Share Your Links

Even more specifically, having others share your links to products, blog posts or other online pages can really mean they like what you have to offer.

7. You Gain Insights

Social media is so much more than just a way for you to broadcast your company's message. You can learn a lot from following others and tracking your company's mentions. Companies that do this successfully can gain a lot more than higher website traffic.

8. Your Target Audience is Clear

In order to use social media effectively, you have to know who you're talking to. You should be able to scroll through your followers and see that most of them fit into the audience you're trying to target.

9. You’ve Found a Good Balance

There are so many social networks and types of posts. You should be able to figure out which networks and which types of posts work best for you and your target audience, instead of just broadcasting new product listings or blog posts across every single social channel.

10. Your Content Has a Clear Focus

You should be able to scroll through your timeline or your twitter feed and see how each post fits together and works towards accomplishing your company's overall social media goals.

11. You’ve Become an Authority

Your followers trust what you have to say and even others in your industry look to you as an industry authority.

12. People Ask You Questions

Along those same lines, if your followers come to you with their questions, whether it's just a general question about your industry or more specific question about a particular product, you’re headed towards social media success.

13. Issues Are Brought to Your Attention

Not everything your company does, in social media or otherwise, is going to be perfect. But when there are problems or issues, if your customers on social media bring them to your attention so that you can correct the problem, you’re gaining social media success.

14. You Don't Need to Advertise

Most social media outlets offer advertising options that can be very useful for companies just starting out. Although these ads can also be helpful for more established companies, you shouldn’t necessarily need them if you're accomplishing all your social media goals.

15. You Keep It Simple

Social media shouldn’t be complicated. You should be able to quickly sum up your social media strategy and see that you are following through with it.

16. Customers Appreciate You

Not only should customers interact with you, but you should also be able to tell that they are happy with what you have to say. If they thank you for responses or recommend you to their own networks, you know they appreciate you and you’re heading towards social media success.

17. You Find Useful Trends

Aside from just using social media to gain insights about your own brand, you should use it to gain insights about your industry and/or network as a whole.

18. You’ve Tested Different Strategies

You can't know if what you're doing is right for you unless you’ve tried other things. You should have tested out different strategies at some point and know that your current one gets the best results.

19. You Keep Your Campaigns Organized

If you're a seasoned social media vet, you should have a pretty good system for organizing your social media campaigns and initiatives.

20. You’ve Found a Way to Measure Impact

Whether it's through services like Google Analytics or the built-in tools on many social media sites, you should have a way to quantify results so that you know you're on the right track towards social media success.

21. You Don't Spend All Day on Social Media

It might be tempting to use social media non-stop, especially if you're constantly talking to customers. But you should be able to accomplish your goals without spending all day monitoring tweets or Facebook mentions.

22. You Maintain Relationships

More than just responding to individual messages, you should be using social media to actually keep in constant contact with your connections. And they should do the same with you.

23. You Create Brand Advocates

If you do successfully maintain relationships on social media, you have probably created some brand advocates – those who continually share your links and recommend your company to friends.  If this is the case, you’re inching closer towards social media success.

24. You Have a Plan

You shouldn’t go into social media without knowing what it is you want to accomplish, though many companies do. If, by now, you have a clear-cut plan, you're that much closer to social media success.

25. You Accomplish Your Goals

Once you have a plan, you should see that you're accomplishing what you set out to do, whether that's increasing brand awareness, gaining website traffic or gaining valuable insights.

26. You Receive Suggestions

If your customers or others in your network come to you with ideas for new products or website features, it means they want to see you succeed and they think of you specifically when they have ideas related to your industry.

27. Your Network is Constantly Growing

Social media can turn into a numbers game for some companies. But there is no magic number of followers or interactions that means your brand has become a social media success. A better gauge is whether your network, both in terms of followers and interactions, grows steadily.

28. Customers Treat You Like a Real Person

Social media users don't want to follow companies. They want to follow people. If your followers treat your company like a friend, you're likely running your account like that of a person, rather than a brand.

29. You Gain Customers

Even if gaining new customers isn’t one of your main social media goals, at some point new people will come across your profiles and, hopefully, support your business.

30. You Listen

Social media is not a one-way communication street. The sooner your company stops treating it as one, the sooner you can realize social media success.

Of course, there are different levels of social media success, but if you’ve achieved at least some of the items mentioned above, you're well on your way.

Thirty Photo via Shutterstock

The post 30 Ways to Tell if You’re a Social Media Success appeared first on Small Business Trends.

Google Bids Meebo Goodbye, Focusing on Google+ Instead

Posted: 29 Apr 2013 09:30 AM PDT

Google shutting down Meebo

It was less than a year ago, in 2012, that Google acquired Meebo.  And now we see Google shutting down Meebo.

An announcement on the Meebo website says they’ve decided to retire the Meebo publishing bar effective June 6, 2013.

Meebo is a social sharing bar that you sometimes see at the bottom of websites. With it, users could share items on social networks.  The Next Web reports that the Meebo bar disappeared for a while after Google bought it but then returned with Google+ sharing capabilities built in.  The Meebo bar has been used by bloggers as well as some large sites, such as TV Guide.  Larger sites often incorporated small ads in the bar (see image above showing Meebo bar outlined in pink).

The Meebo team will now focus on Google+ instead, including initiatives such as the recently launched Google+ Sign-In and Google+ plug-ins, the announcement says.

After June 6th, the Meebo code will no longer work.  They are no longer accepting new Meebo accounts.  There’s also an FAQ with more details for existing Meebo publishers.

Lee Jarratt, editor of the website Google Plus Daily says “I don’t think many will be sad to see the product retire, as it was mostly seen as a nuisance since it followed website visitors down the page as they scrolled.”

This is yet one more sign that Google+ is the future for Google.  If you’re not on Google+ with a professional profile and a Google+ page for your business, you’re falling behind.  The writing is on the wall with announcements like these.

The post Google Bids Meebo Goodbye, Focusing on Google+ Instead appeared first on Small Business Trends.

What is Google Glass? Here’s the Answer

Posted: 29 Apr 2013 07:30 AM PDT

What is Google Glass?

We’re back with another one-page explainer, to answer the question, “What is Google Glass?”

Google Glass is the name given to a wearable computer created by Google. You put the device on like a pair of eyeglasses, although it does not have lenses.  It rests on the top of your ear and bridge of your nose, like an eyeglass frame.

It sounds futuristic, but it’s not.  Google Glass is being worn today by some Google employees and a select few who got the chance for an early look.

What do you use Google Glass for?

Some people have called it a second screen for your smartphone.  Instead of pulling out your phone and looking at it, you just look up at the tiny screen. You use your voice to give commands and remain hands free.

You can use it to check emails, get text messages, search for the weather report or get a map for directions.  It even translates spoken phrases for you, or looks things up on the Web.  For small businesses, you and your staff would use it to perform certain functions you use a smartphone or tablet to do today.

It has a computer, battery, microphone, speaker and camera embedded in it.  For example, to film a video you just say  ”OK Glass, record a video.”

You’re not actually looking at a computer screen in front of you all the time, so it doesn’t obstruct normal visibility.  The little screen is slightly above your eye and to the side so you have to look up to view it (see image above).

Positives of Google Glass

Tech early adopter Robert Scoble has been wearing the Google Glass for 2 weeks, and he’s completely sold.  He says he will never be without a wearable computer on his head again.  Really.

According to Scoble, “it’s that significant.”  He likens it to his first Apple II computer back in 1977, because he knew his life had changed, just like he says Google Glass has changed his life.

He says the Google Glass lets you be much more social than a smartphone. You’re looking at people rather than down at a phone or fumbling with the screen.

Google has announced it will allow no advertisements in apps for Google Glass.

Negatives with Google Glass

Technology reviewer David Pogue says its Achilles heel is invasion of privacy.  You see, there’s a built-in camera, and someone could be filming while looking at you. Pogue gives accolades to all the technology built into the compact ear/ eye device. But in a recent CBS News video he predicts Google faces a much bigger challenge of social acceptance:

“For the first time in history, you’ll never know if someone’s filming you. Even with phones you’ll know, because they’re [holding up the phone to snap a shot].  There’s a reason Google’s promotional videos usually show people doing extreme sports or filming people from the back.  You wouldn’t wear them face to face. You’ll creep people out on a date, at a party, on a subway, in a locker room. Can you imagine?  I’m guessing they’ll be banned in public places, too — theaters, museums, restaurants, courtrooms. If you wear Google Glass people will think you’re the world’s biggest jerk. “

Scoble, however, says privacy was not an issue with people he’s encountered. He predicts that price will make a difference in its commercial success.  In his opinion, a $200 price point (roughly the cost of materials) will be a success.  A price of $500 may not be.

Of course, if it’s that life changing, we doubt that an extra $300 will matter much.

For now, it’s still experimental.  You’ll be hearing more about it, but you can’t buy it yet. Google Glass is expected to be on the market in 2014.

Meanwhile, next time you hear about it you won’t have to wonder, “what is Google Glass?” – you’ll know.

Image credit: Google

The post What is Google Glass? Here’s the Answer appeared first on Small Business Trends.

Where In The World Are Small Business Owners Trusted?

Posted: 29 Apr 2013 04:30 AM PDT

american entrepreneurs

Message to small business owners around the world: If you want to be loved, move to America.

In the United States, small business owners are held in high esteem. A 2010 Pew Foundation survey found that 71 percent of Americans see small business as a positive influence "on the way things are going in this country" – a larger fraction, in fact, than see religious organizations as a positive factor. In the United States, small businesses are viewed more favorably than most institutions.

However, the top ranking of small business isn’t true the world over. Consider the situation in China. For its 2013 Trust Barometer, public relations firm Edelman surveyed over 25,000 people in 26 nations in the fall of 2012.

The survey showed that 86 percent of U.S. respondents trust small business "a great deal," while only 55 percent of them trust big business "a great deal." In China, by contrast, only 65 percent of respondents trust small business "a great deal," while 89 percent trust big business that much.

Edelman's survey reveals an interesting contrast between industrialized and developing nations. In industrialized countries, respondents trusted small business more than big business: 76 percent to 53 percent. In developing countries, they trusted big business more than small business: 79 percent to 70 percent.

Of course, there’s another way to look at these data. People around the world generally trust businesses. In the United States, big business has squandered some of that trust, while small business has held on to it.

 

Editor’s Note:  We’ve embedded the Edelman Trust Barometer report below. Jump to slide 16 to see the variations between small businesses and larger businesses in selected areas.

American Entrepreneurs Photo via Shutterstock

The post Where In The World Are Small Business Owners Trusted? appeared first on Small Business Trends.

New LinkedIn Contacts: Aims to Be Your Personal Assistant

Posted: 29 Apr 2013 02:30 AM PDT

New LinkedIn Contacts

LinkedIn has announced it is launching a new Linkedin Contacts that aims to create a “personal assistant” for users.

You might be thinking you already have a Contacts section in your LinkedIn account – and you’d be right.  However, this goes well beyond what LinkedIn offers today under the “Contacts” tab.  The new LinkedIn Contacts will reside within LinkedIn and also as a standalone app for iPhone.

What’s new about it?  With the new LinkedIn Contacts you will be able to see information not only about your LinkedIn connections, but also everybody in your address book, calendars and emails. You can have all your professional contacts in one place, instead of scattered around among LinkedIn, email, and other places.

On the official LinkedIn blog, Engineer and Product Specialist Sachin Rekhi writes:

“LinkedIn Contacts brings together all your address books, emails, and calendars, and keeps them up to date in one place. From these sources, we'll automatically pull in the details of your past conversations and meetings, and bring these details directly onto your contact's profile.”

You also will be able to add notes (such as how you first met the person),  set  reminders about your contacts, and be notified of birthdays, Rekhi writes.

You can also see your last communication with the person. You’ll be able to sort your contacts based on your most recent interactions with them, upcoming meetings or other criteria.

A TechCrunch.com report  on the new feature looks at compatibility with other websites and services. Users can collect and organize contact data from the following:  Gmail, Google Contacts, Google Calendar; Google Apps Mail, Contacts and Calendar; Yahoo! Mail, Contacts and Calendar; Outlook Mail, Contacts and Calendar; iPhone Address Book (via the LinkedIn Contacts app); LinkedIn's CardMunch service; Evernote and TripIt.

Not only will LinkedIn Contacts collect information from all of these sources, but the information automatically updates when it changes on the underlying platform.

You will not be able to import your Twitter or Facebook contacts. LinkedIn currently plans to focus on professional contacts (not social ones).

TechCrunch also reports that LinkedIn Contacts is the first major development out of its acquisition of  the contact management platform Connected in October 2011.   The new LinkedIn Contacts has a waiting list that you can ask to be added to.  It will roll out in stages over the next several months to LinkedIn’s 155 million monthly users.

The post New LinkedIn Contacts: Aims to Be Your Personal Assistant appeared first on Small Business Trends.

Monday, April 29, 2013

Startup Success and Niche eCommerce Within the Health Care Industry

Startup Success and Niche eCommerce Within the Health Care Industry

Link to Small Business Trends

Startup Success and Niche eCommerce Within the Health Care Industry

Posted: 28 Apr 2013 04:00 PM PDT

ayurveda health

The health care market is receiving increasing attention from entrepreneurs around the world looking to improve a complex field. Modern medicine continues to face budget deficits and inferior technology in both developed and developing nations. Health care IT (Internet technology) has taken off in the last few years. Also active is the field of ecommerce — across all sorts of niches, including health care.

eCommerce Within the Ayurveda Health Care Niche

Nirogam, an Ayurvedic product e-retailer, finds itself competing in an already booming natural health market. Nirogam Founder, Puneet Aggarwal, was born into the merchant class in his native India. His father was an entrepreneur running a metal fabrication factory. After his graduation in 1988, Puneet followed his father's lead and started a business. This first venture, Ivycomm Systems, addressed a growing need for online presence as India began to adopt the Internet.

Puneet's work introduced him to research scientist Dr. Pushpa Khanna, who had recently discovered an insulin-like substance in plant form. As her new website gained traction, Dr. Khanna developed an oral tablet of the substance known as Gourdin. She then asked for Puneet's assistance in selling it online. His initial outreach to those who had shown past interest was immediately successful. Taking a cue from their first product, by 2002 the two had expanded their offering to 10 herbal products.

This shift toward all natural health solutions is based on an ancient Indian system known as Ayurveda, a system of alternative medicine emphasizing natural methods of healing and good nutrition.

There is a strong bias within U.S. and U.K. regulatory authorities favoring conventional pharmaceuticals over holistic medicine. This strongly affects sales and addressable market, despite the growing popularity of Ayurveda in the Western world, especially in places like California. In India, of course, Ayurveda is a known and highly respected science with a large number of existing brands offering products across various categories.

Nirogam is intended to educate patients regarding alternatives to modern drugs, and to provide a resource for those seeking a holistic option. In addition to natural wellness products, Nirogam offers herbal supplements, organic foods and natural cosmetics. The site is designed as a discovery platform, unlike the marketplaces of close competitors HealthKart, NaturalMantra and Satvikshop. This model captures a wider audience.

As many potential buyers are unfamiliar with the solutions offered, Nirogam offers an informative guide based on known symptoms. Nirogam also has an active social media presence and provides a forum for relevant medical discussion on their company blog.

It’s a Family Affair

The business is a family affair, and Puneet often seeks business advice from his mentor and father Satish. In turn, Satish must be proud of his son. Nirogam's annual revenues are nearing half a million dollars, with a monthly growth rate of 15 percent.

Puneet plans to expand to additional niche markets in health care. New websites will follow the current model, providing comprehensive diagnostic information as well as a community and commerce.

Back in 2007, I published my formula for web 3.0 — an integrated user experience that is context-specific and brings content, commerce and community together, alongside vertical search and personalization. Nirogam has brought together, in the context of Ayurvedic medicine, most of those elements.

In the future, personalized diagnosis may be a service to add to the roster. Conceivably, somewhere down the line, you could be dialing into a video-conference with an Ayurveda doctor in Kerala to get a personalized consultation for that pain in your upper back. If you are interested in exploring the ancient science of Ayurvedic medicine, Nirogam is worth a look.

Ayurveda Photo via Shutterstock

The post Startup Success and Niche eCommerce Within the Health Care Industry appeared first on Small Business Trends.

Use Twitter on a Mac? There’s an Enhanced App

Posted: 28 Apr 2013 02:00 PM PDT

twitter for mac

Twitter has millions of users, but for people running Mac computers, the social network has had some limitations.

Twitter recently announced  enhancements for Mac users that should make the social network more engaging for this important group, too.

As we’ve been reporting, Twitter remains one of the top online ways to reach potential customers and stay in contact with current ones. The update for Mac users is now available in the Mac App Store for free.

Along with several visual and composition enhancements, Twitter announced Thursday that its Mac App will allow a user to manage multiple accounts, view multiple timelines and use some new keyboard shortcuts. Managing multiple accounts is a vital feature for Twitter users, especially business owners who can manage their personal, business and perhaps a special promotional account from a single app.

A new Tweet box will feature a camera icon that allows a Mac user to select a photo to share through Twitter. Mac users can still continue to drag-and-drop their photos into the Tweet compose area.

Twitter now supports Mac’s retina display, a feature the social network says will enhance the experience for Mac users  by creating “more vivid Tweets.”

Twitter Tech Lead, Ben Sandofsky, also reports that Twitter for Mac will support 14 additional languages. Along with English, Twitter for Mac will now support Dutch, French, German, Indonesian, Italian, Japanese, Korean, Malay, Portuguese, Russian, Simplified Chinese, Spanish, Traditional Chinese and Turkish.

The post Use Twitter on a Mac? There’s an Enhanced App appeared first on Small Business Trends.

Case Study: How to Use Amazon’s Strategy for Your Business

Posted: 28 Apr 2013 12:00 PM PDT

amazon strategy

How fitting that the globe's largest online store is named after the enormous South American river. With over $48 billion in revenues throughout 2012 alone, Amazon is a dynamic powerhouse that every brand should admire.

Now, you'd have to be nuttier than a fruitcake to think that Amazon achieved this mammoth success with ease. It required blood, sweat and tears – or at least two of the three – for Amazon to become the center of online retail that it is today.

Use the “Amazon Strategy” for Your Business

Fortunately, Amazon's strategy to attain 250,000,000 monthly visitors isn’t exactly a secret. They're known for "going all in" and aggressively defending their turf while expanding it. Brands hoping for similar Amazon-sized success should study the way the ecommerce site stays ahead of the curve, expands their territory, optimizes content and gives power to the consumer.

Amazon Creates the Trend

Before e-readers and tablets were mainstream, Amazon took a leap of faith and invested itself in this market. The risk clearly succeeded, as tablets are recognized as one of the fastest-growing new technologies. Instead of simply focusing on selling tablets and e-readers, Amazon developed the Kindle, which placed their own stamp in the growing marketplace. Amazon also created a niche for itself by promoting new, unknown authors.

Did you know that Amazon's top 100 selling Kindle books were mostly self-published authors? E-readers continue to consume a wider range of content – and Amazon delivers. By staying ahead of the curve like they did with the Kindle, Amazon ensures its relevance and staying power as today's new technologies become the standard.

Amazon Goes to Hollywood

Part of staying ahead of the curve means that Amazon will also travel into new territory. While an online retail site seems completely unrelated to Hollywood, news has broken that Amazon is investing in at least 30 original movies or television programs.

Instead of simply streaming video content, Amazon is experimenting in creating its own content. Amazon is using data from their sales and consumer base to predict what type of content will be a hit. Likewise, brands should continue to take calculated risks. Just as Amazon is investing in creating video content because they understand how it fits their platform, brands should consider their potential avenues as well.

Optimization Prime

Just like any online presence, Amazon focuses on content optimization to ensure that all of their listings appear nicely in SERPs (search engine result pages). They've refined their search system to only bring up the content that you're looking for.

Furthermore, Amazon's content is powerful because it doesn't just appear on SERPs, it's actually sent to you via email and relevant advertising throughout the Internet. Because Amazon tries to recommend products to consumers, they've included a "Fix this Recommendation" button in case one of their suggestions is off base. By doing this, Amazon continues to harness personal preferences to fine-tune their marketing efforts. Is your site optimized to use and gather relevant data?

Power to the Public

For the most part, Amazon doesn't really sell that much. Most of their content and items come from "sellers." Thus, the strength in Amazon's brand is that it is based on user-generated content that can quickly adapt to user needs.

While not every brand can rely on user-generated content like Amazon, every business can afford to give more power to the consumer. For instance, consider adding product review options or testimonials.

The post Case Study: How to Use Amazon's Strategy for Your Business appeared first on Small Business Trends.

British Incentives for Small Business Loans: Take a Page From the US

Posted: 28 Apr 2013 09:30 AM PDT

incentives for small business loans

The Bank of England and U.K. Treasury announced this week they are offering lending institutions incentives for small business loans. But if the U.S. experience is an example, incentives won’t do the trick.

U.K. Incentives for Small Business Loans

British small businesses say they are starved for credit  Britain continues its struggle to recover from the financial crisis and just entered its third recession in the last five years. According to a Reuters report, the next phase of the “Funding for Lending Scheme” (FLS) would give banks incentives for granting loans to small businesses.

The original FLS was introduced back in August of 2012.  The intention was to offer banks incentives to increase loans to consumers and businesses. But it didn’t work out that way.  The benefits were seen by banks and homebuyers, not small businesses / SMEs.

Under the latest iteration, for every additional one pound that banks lend to small businesses in 2013, banks will be able to draw on 10 pounds of  discounted FLS funding (it’s a 1:1 ratio for other types of lending in the FLS).  In 2014 that formula drops to five pounds of discounted funding for every one additional pound loaned to small businesses.

The U.K. Finance Minister George Osborne said in a statement, ”This innovative extension will now do even more for small and medium-sized businesses ….”

Not everyone agrees.  In an article in the Guardian, economics correspondent Phillip Inman says it won’t much matter as long as the Royal Bank of Scotland is under restrictions to reduce its lending. He writes:

“When the Royal Bank of Scotland is under pressure to conserve its cash and shrink its lending, what, you might ask, is the point of officials inside the Bank of England extending and upgrading the funding for lending scheme (FLS) to encourage the small business loan market?

The Edinburgh-based bank can already lay claim to more than 40% of small and medium-sized business lending. With Lloyds, the other state-owned bank, it dominates the scene and, according to many business leaders, sets the benchmark for the industry. Loan criteria, charges and penalties are all set by RBS, they say.

RBS wants to make money and can only do so by lending, but it is under instruction from the Treasury and a welter of new banking rules to be risk averse. A risk averse strategy turns away pleas from risky SMEs in favour of safer borrowers – which in this case are big business and high loan-to-value homeowners.

He calls for more action. He quotes John Longworth, head of the British Chambers of Commerce, as calling for backing of an embryonic Bank of Business in order to bring more options to the small business loan market.  Longworth, in his New Year’s message at the beginning of 2013, noted:

“Britain's business finance system is dysfunctional and restrains growth and there is an urgent need for a patient business lender to give innovative, new and growing businesses, as well as those businesses in recovery, access to the levels of finance they need to grow and evolve.”

Lessons From the U.S. Experience

For many of us here in the United States, to think of one bank being responsible for 40% of the nation’s small business loans is mind-boggling.  True, the banking industry has been consolidating here in the United States for decades. Yet we still see a different bank on every corner. We’re lucky to have so many choices.

Even so, U.S. banks appear to be making fewer small business loans, based on FDIC data between 1995 and 2012.  As Professor Scott Shane points out, one reason is that big business loans are more profitable than small business loans.

Loans to small businesses are riskier, making small business loan portfolios less profitable.  Small business loans are harder to underwrite due to a dearth of public credit histories and solid financial statements by small businesses.  Assets to secure such loans are slim. And small business failure rates don’t help lenders sleep better at night.

Some small business owners simply don’t bother applying for business loans. Or they take one look at the paperwork and assume (rightly or wrongly) they will be turned down. So they run up their credit cards or tap into their home equity loans instead, and don’t get enough funding that way.

But why wouldn’t government incentives help, you ask?

Here in the United States, we’ve had a recent experience with government incentives to increase small business lending — and it wasn’t pretty. Just this month, an Inspector General report disclosed that many banks receiving money from a special government Small Business Loan Fund used that money to repay bailout debt, instead of increasing small business lending. According to the report, there was no penalty if they didn’t lend.

There was no regulatory oversight to determine if recipient-banks’ plans to increase small-business loans were even achievable. Some of the banks just weren’t in a position to increase their small business lending much.

If the U.S. experience is any indication, the Guardian correspondent and the British Chambers chief have a point.  To increase small business lending calls for a larger and different vision.  Incentives alone won’t do it, because they don’t fix the fundamental underlying issues with small business lending.

Innovative New Approaches Needed

What’s needed are new approaches that directly address the challenges of lending to small businesses.  Small businesses everywhere need more innovative funding programs that still balance responsible underwriting.

Extended loan repayment terms for small businesses, more focus on microloans (and redefining microloans as being up to $200,000, because after all, $10,000 or even $50,000 doesn’t go far today), loosening of crowdfunding restrictions, more programs backed by successful businesses and entrepreneurs (such as Samuel Adams “Brewing the American Dream” program and Amazon’s Capital program for Amazon merchants) that combine mentoring oversight with funding, and expansion of programs like Accion microloans  – here in the United States these and other innovative approaches need to be encouraged.

Another help would be more educational programs aimed at small businesses to help them understand business credit scoring.  Many U.S. small business owners are in the dark about how to build a credit history for their businesses (versus themselves personally).

Change the paradigm, and you can open up small business access to operating and expansion funding.  Keep it the same and the state of small business lending will be more of the same, too.

The post British Incentives for Small Business Loans: Take a Page From the US appeared first on Small Business Trends.

“United Breaks Guitars” is a Fun and Fantastic Read

Posted: 28 Apr 2013 06:10 AM PDT

united breaks guitarsYou won't believe how I got a copy of this book.  Staci, the Operations Manager here at Small Business Trends, sent me a link to the promotional video on the book site.  Then I watched the video.  She and I instant messaged about it for a few minutes exchanging "ha ha ha's" and "LOLs."   That's when I knew that I had to get a copy of the book to review it.

But I didn't know Dave Carroll and I didn't have a lot of faith in reaching him via the website.  So I found Dave Carroll's Twitter ID (@DaveCarroll) and told him who I was and what I wanted in less than 140 characters.  Within a week, I had a review copy at my door (along with a sweet inspirational calendar).  I'd say it was a win-win all the way around.  And now, I'm going to tell you all about United Breaks Guitars: The Power of One Voice in the Age of Social Media.

The Backstage Story in an Afternoon

I read United Breaks Guitars – on a Sunday.  Yup.  That's all it took.  It was a perfect weekend read because it told the tale of a video I had heard of but knew little about.  On July 6, 2009, Dave Carroll uploaded the original United Breaks Guitars video to YouTube.  Nearly 13 million views later (as of today), he continues to represent the impact that one person can have using social media and a message that resonates.

United Breaks Guitars: The Power of One Voice in the Age of Social Media is his first-person tale of his experience with United Airlines' handling of his Taylor guitar … and the ensuing circus that was his journey through their massive customer service system.

How United Breaks Guitars Kept Me Glued to My Chair

I can assure you it had nothing to do with any kind of cutting edge marketing or customer service strategies that were revealed in the book.  That's because there weren't any.  It wasn't that kind of book.

It was the authenticity and the sheer humble curiosity of the story that kept me sitting in my favorite reading chair. Of course, I had my computer close by so that I could revisit all three United Breaks Guitars videos – just so I can have the experience and take a second look at some of the details Carroll reveals throughout the book.

Here is a quick tour of what you may not have known behind the United Break Guitars phenomenon and the small business lessons you can take away from the book.

Male Musicians Pick Up Guitars Like They Pick Up Women

I'll leave it up to you to decide whether this is a healthy relationship to be having with an inanimate object.  But the chapter on how a musician chooses a guitar is an absolute hoot.  You'll never look at someone carrying a guitar through an airport the same way.

As I read this chapter, I immediately thought about the myriad special requests our customers make.  While every business can't fulfill on the special needs for every customer situation, if you're in the service business, this is something you need to be prepared for.   In the United Breaks Guitars book, I learned that most airlines make musicians sign waivers that remove all responsibility for instruments from the airline.  In other words, if you have to check your instruments (or other fragile piece of luggage) you do so at your own risk.

You'll Need More Than One to Get the Job Done

Did you know that there were actually three United Breaks Guitars songs and videos? Dave had a plan and he fulfilled on it.  Once he had come to terms that United was not going to take any responsibility for the damage done to his guitar (despite the fact that he had not signed a waiver), he decided to create three videos of varying styles telling the story.  He had a goal to reach a million views between the three videos.

I got a powerful lesson from this.  Carroll had made a mental shift and redirected his energy to doing what he does best; writing songs as an emotional and creative outlet.  He set three primary goals with this:

  1. To take a frustrating experience and make it positive.
  2. To create something with his friends.
  3. To change the way one of the world's largest companies deals with it's customers.

He could control the first two goals, but he threw the third one in there as a stretch goal.  He knew he couldn't exactly control the outcome, but his efforts on the first two could certainly make a dent.

You Can Strategize the Impact of a Song

Here is another little tidbit I got from United Breaks Guitars that I didn't know.   You can program or create a song to get the desired response.  I didn't realize that.  I thought songwriters were inspired and just wrote what came to them.  I thought it was magic, and maybe sometimes it is.  But for Dave Carroll's project – it was all by design.

As a small business owner or expert in your field, you have amazing powers at your disposal that you can use to influence how people respond to you and your product or service.  Dave knew from experience that certain beats and types of songs influenced how people reacted.  He knew how important the refrain was.  He knew it had to have a certain beat and a certain style.  All in all, I was blown away by the strategic planning brilliance he used to write the song.

Ask Your Friends to Help

One of Dave's goals was to work with his friends and enroll them into his project.  A phrase that he keeps repeating in this section is:

"I love how [insert industry or expertise here] professionals don't need a lot of details before saying yes to a gig."

The lesson for small businesses in this chapter of United Breaks Guitars is clear – don't insulate yourself.  You are not on your own.  There is a community of partners in the wings ready, willing and able to help you achieve your goal.  All you have to do is ask.

Storytelling is Powerful Stuff

We aren't all songwriters, but we all have stories that can ultimately help other people and make a real difference in the world.  Don't wait for a frustration or life changing experience to tell your story.

Stop to think about how the stories you have and the stories you tell can ultimately help other people and make a difference in the world.  You can start by reading United Breaks Guitars for inspiration.

The post “United Breaks Guitars” is a Fun and Fantastic Read appeared first on Small Business Trends.