White House Rural Council Growing Rural Economies, Creating Jobs

Karen Mills — Wed, 19 Jun 2013 22:32:21 +0000

Note: This blog is jointly authored by SBA Administrator Karen Mills and Tom Vilsack, Secretary of the U.S. Department of Agriculture. It first appeared on Whitehouse.gov on June 19.

This week is National Small Business Week. The U.S. Small Business Administration (SBA), along with agencies across the Obama Administration, are hosting events in five cities. These events provide expert advice, mentoring and explore topics ranging from access to capital to exporting. Small businesses across the country can tune into these events via livestream at sba.gov.

America’s small businesses create two out of three net new private sector jobs in our economy. And today more than half of all working Americans either own or work for a small business. Our goal is to ensure that the positive economic benefits of entrepreneurship can reach every corner of the country.

That’s why today the White House Rural Council is announcing new commitments to increase access to capital and to provide additional training and counseling services to rural small businesses and entrepreneurs.

For Fiscal Years 2013 and 2014, the U.S. Small Business Administration (SBA) and United States Department of Agriculture (USDA) have committed to support a combined $175 million in microloans to small businesses in rural areas, in addition to new business training and counseling opportunities. To date, in FY13, we have already supported nearly $85 million to rural small businesses. Since 2009, USDA and SBA have provided over 19,000 loans and grants, helping more than 60,000 rural small businesses through programs like USDA-Rural Development's Intermediary Relending Program and SBA's Microloan Program.

Twenty-five percent of SBA's microloans go to rural entrepreneurs. And the SBA provides nearly 30 percent of its in-person training and counseling sessions in USDA-designated rural communities. Our goal, at SBA, USDA and across the Obama Administration, is to continue to fill the gaps for loans in underserved rural communities and to ensure that rural entrepreneurs have the resources and training they need to turn a great business idea into a viable and growing business.

As President Obama wrote in his proclamation announcing National Small Business Week, “America's small businesses reflect the best of who we are as a Nation — daring and innovative, courageous and hopeful, always working hard and looking ahead for that next great idea. They are our economy's engine and our biggest source of new jobs.”

By taking an inclusive view of entrepreneurship, one that expands access and opportunity to more rural communities, we can spur new business formation, innovation, job creation and build strong regional economies across Rural America.

Karen Mills is the Administrator of the U.S. Small Business Association.

Tom Vilsack is the Secretary of the U.S. Department of Agriculture.

Celebrating 2013's SCORE Chapter of the Year for National Small Business Week

bridgetwpollack — Tue, 18 Jun 2013 18:31:21 +0000

This week is my absolute favorite of the year because National Small Business Week marks the biggest celebration of small business the whole year long. It feels almost like the week of Christmas, with Friday being the big day of celebration taking place right here in our own backyard of Washington DC. Small businesses from around the country will be recognized for their hard work and I couldn’t be more proud and excited.

Across the country, all year long, SCORE chapters work to help small businesses start, grow and succeed. Tomorrow we get to showcase a prime example of the wonderful work of our volunteers and the small business success they help create by honoring the 2013 SCORE Chapter of the Year. This year, the award goes to SCORE Lancaster located in Pennsylvania – a chapter that is truly innovative when it comes to educating and mentoring small business owners.

You need only witness the success of SCORE Lancaster’s clients to understand the great work this chapter is doing. Clients like USA Gypsum that, under the guidance of SCORE Lancaster mentor Lou Davenport, completely reworked their financial structure, resulting in incredible gains in profitability, a significant decrease in reliance on debt and overall, a sustainable new business model. President and General Manager of USA Gypsum, Terry Weaver, has worked hand in hand with his mentor for more than five years, continuously improving operations and has seen increased profits in each of those years. As mentor Lou Davenport says, USA Gypsum “is a great example of how a good business idea, combined with a fine work ethic and continuous business process improvement can all combine into a successful business that serves both market and community needs.”

Small business is certainly an important servant of local communities, but communities also help sustain small businesses. With this in mind, the volunteers at SCORE Lancaster pioneered a new method of client interaction called the Business Roundtable. Local small business owners meet to discuss issues they are facing and offer help to one another. It is a highly effective and popular event that is now utilized by chapters across the country to help small businesses interact, network and solve problems in a collaborative environment.

All year long, we are proud of the work SCORE volunteers across the country are doing. But this week, and especially tomorrow, is our chance to really put faces to those successes and give recognition to those who deserve it. Congratulations to all of the 2013 National Small Business Week Award Winners and to our Chapter of the Year, SCORE Lancaster. These small businesses and the mentors who serve them certainly have profound effects on their local communities and our country as a whole.

Creative Summer Marketing Ideas

Rieva Lesonsky — Tue, 18 Jun 2013 14:12:06 +0000

Summer is here and it’s time to take to the streets. In the summer, your customers feel festive and spend more time outdoors. So, it’s the perfect time to get outside and get creative with your marketing efforts. Here are some ideas to try.

Take part in a community event. Summer in most towns is packed with fun runs, street fairs, music festivals, outdoor movie nights, concerts in the park…you get the idea. Contact your chamber of commerce and your city’s parks and recreation department to find out what events are planned for the upcoming few months. Decide which events are likely to attract your target customers, whether that’s health-minded seniors, parents with toddlers in tow or Millennial music fans. Once you’ve chosen some events with potential, you could:

· Sponsor the event in return for your name on flyers, programs or banners at the event

· Host a booth at the event and give out free samples or sell your product. (Be sure to collect contact information with a signup sheet or fishbowl to collect business cards).

· Donate product to the event (a health food store could donate healthy snacks for refreshments at a fun run, for example)

Host an event for your customers. Get creative with a barbecue or beach party for your best clients and prospects. Or consider springing for something more adventurous like a Duffy boat rental or a wine tasting afternoon at a local winery. This can be a way to reward your best customers, learn more about their needs and provide them with networking opportunities that will lead to more referrals and more business. You don’t have to be a B2B business to make this work. If you own a retail store or restaurant, host a summer-themed event for your most loyal customers, like a special shopping night where they get to shop after the store is closed, or a special five-course dinner and wine tasting on a night your restaurant is usually not open.

Join with other business owners. If your business is in an area with lots of foot traffic, consider joining with the other business owners to hold a sidewalk sale or other outdoor event. Get with your chamber of commerce and plan how local businesses can attract foot traffic to the area. This could include:

· Having a sidewalk sale where each store puts specials out on the sidewalk and offers deals to draw customers inside the store as well

· Hosting a “stroll and savor” event where local eateries sell small samples of their menu items outside on the sidewalk

· Hosting a music night where local musicians play inside restaurants or shops and “busk” out on the sidewalk to attract passersby

There are many other ideas, from closing off the street to cars and hosting an arts fair or classic car show, that can bring foot traffic into your shopping area. Brainstorm with other business owners to generate the best strategies for your area, and work with your city to be sure you get all the appropriate permits.

How will you market creatively this summer?

Celebrating The Mentor Magic Behind Small Business Success

bridgetwpollack — Mon, 17 Jun 2013 19:25:24 +0000

This week is my absolute favorite of the year because National Small Business Week marks the biggest celebration of small business the whole year long. Today, in particular, feels almost like Christmas Eve because tomorrow is the big celebration taking place right here in our own backyard of Washington DC. Small businesses from around the country will be recognized for their hard work and I couldn’t be more proud and excited.

50 Years of National Small Business Week

Karen Mills — Sat, 15 Jun 2013 02:13:51 +0000

This year marks the 50th anniversary of National Small Business Week. Although things have certainly changed since President Kennedy signed the first Presidential Proclamation in 1963, one thing that hasn’t changed is America’s entrepreneurial spirit and the important role that small business owners play in our economy and our communities.

This week, President Obama has continued America’s tradition of honoring the spirit and success of American small business owners by proclaiming June 17 - 21 to be 2013’s National Small Business Week. Small businesses have always been the backbone of our economy, and we know that the success of America’s small businesses is critical to growing our economy and increasing our nation’s global competitiveness.

Small businesses create two out of three net new private sector jobs in our economy. And today, half of all working Americans either own or work for a small business. Over the past five years, the Obama Administration has worked to rebuild the economy and ensure that small businesses are able to do what they do best: grow and create jobs.

This year, the U.S. Small Business Administration (SBA) has revamped and redesigned our efforts to bring more tools, tips and resources to America’s 28 million small businesses, in conjunction with Administration-wide efforts to make government smarter, more responsive and more streamlined. And throughout National Small Business Week, we’ll be focused on workshops, hands-on assistance, matchmaking and mentoring for small business owners in the following cities:

June 17 - Seattle, Wa.
June 18 - Dallas/Ft. Worth, Texas
June 19 - St. Louis, Mo.
June 20 - Pittsburgh, Pa.
June 21 - Washington, D.C.

Throughout the week, we’ll be joined by entrepreneurs and experts including Jack Dorsey (Square and Twitter co-founder), Angie Hicks (founder of Angie’s List), David Steward (founder and chairman of Worldwide Technologies) and Fran Tarkenton (former NFL quarterback and entrepreneur).

If you don’t live in these cities, you can tune into our events via live stream at www.sba.gov/smallbusinessweek, and by joining our daily Google + Hangouts with additional business and social media experts. During National Small Business Week, we also encourage you to visit your favorite local small business and tell us about it on Twitter with the official hashtag #SBW2013.

In Washington, D.C., we’ll finish the week by honoring outstanding entrepreneurs from every state and U.S. territory and announcing our 2013 National Small Business Person of the Year. This year’s winners represent the incredible diversity of small businesses; from technological start-ups and health care providers, to a helicopter pilot training school and an organic vegetable farm. And they are all inspiring examples of the drive and creativity that makes America’s small businesses the true engine of our economy.

For generations, Americans have pursued the dream of owning their own small business. During National Small Business Week, we recognize the critical role that these small businesses play in America’s economic growth and global competitiveness.

National Small Business Week Recognizing the Mentors Behind the Magic

bridgetwpollack — Fri, 14 Jun 2013 16:34:13 +0000

8 Smart Techniques for Improving Headlines

smallbiztrends — Thu, 13 Jun 2013 12:48:24 +0000

Even the most well-written article or blog post, or the best video, is worthless if it isn’t topped by an appealing headline. The headline is what piques the reader’s attention.

The headline has become uber-important in today’s world of social media sites. For most people, the headline is all they see on a site like Twitter. And on other sites like Google+ and Facebook, it’s a key element of what they see. If the headline isn’t good, chances are the reader won’t bother to click over to read it or view it.

In fact, Copyblogger says 75% of the readers who read the headline don’t bother reading the actual blog post.

Headlines are also important for email marketing. Here again, the subject line (i.e., the “headline” for an email marketing message) has a lot to do with whether people will open the message.

With a little effort and a lot of inspiration, you can improve your headlines and increase the number of people who want to read your articles and view your video or other content.

Read Other Headlines.

The best places for inspiration are popular sites that have many readers. Alltop, BusinessInsider.com, BuzzFeed.com and BizSugar are good places to go to find headlines that get lots of clicks, so take notes.

If you pay attention, you’ll see that the headlines aren’t stuffy, and that they entice you to learn more in the actual post.

Create Mystery and Curiosity.

A good headline leaves the reader wanting more. Take this example from social content site, BuzzFeed:

“Let’s Hope This Trend Does Not Catch On”

You’re probably at least a little curious about that, aren’t you? It’s hard to resist finding out just which trend they are talking about.

Play on Emotions.

Humans are emotional beings, and we want to feel something. Evoke emotions in the headline, and you can get more clicks. Here’s an example from TheChive.com:

“Homeless Man Tells Heartbreaking Story”

We’re ready for an emotional response to that story.

Use Numbers.

When you use a number in your headline, you’re letting readers know exactly what to expect. When you read the headline to this post, you knew there would be eight tips on improving headlines. No more, no less. Today’s readers are impatient and want to quickly skim content, and numbers let them do so.

Here’s a related point: generally speaking, the bigger the number, the more likely people are to bookmark and save an article. Two tips might not be bookmarkable. But 8, 10 or 12 tips – well, that’s a different story.

Ask a Question.

Consider Chris Brogan’s post, “Do Local Businesses Deserve Your Money?” It’s a good question.

The reader is forced to ask himself the question, and if he doesn’t have the answer, he’ll be inclined to click. Whether the article answers the question to his satisfaction is a different matter – but the headline at least gets him to click.

Stand Out by Sounding a Bit Over the Top.

Tabloid magazines have mastered the art of the outrageous, but that doesn’t mean your business blog can’t apply the same technique – in moderation. Use words like:

● Secrets

● Revealed

● Superlatives like biggest, the ultimate, best

Just be careful because you don’t want to lose credibility by creating headlines like this all the time or by being too outrageous.

Also, make sure the article delivers on what the headline promises. Don’t claim to bring the reader the “ultimate” guide to whatever or the “best advice” on some topic, only to offer up a mere 150 words stating the obvious. If you’re going to deliver the ultimate guide, then it had better live up to it.

Write for Humans, Not Search Engines.

Your headline shouldn’t sound like a robot wrote it. It should appeal to people first and foremost. That being said, whenever possible you should naturally work in a keyword or keyphrase into your headline. That way people searching for a topic can find your content in search engines.

However, there’s a difference between working in a keyword in a natural way in an interesting headline, and headlines that read like keyword searches (“Video for small business”). Headlines that read like keyword searches you’d plug into Google are boring. Today’s reader expects more and is not likely to click on a dull title like that. Make it more interesting than that.

Use the Right Tools and Resources.

If you’re not feeling creative, use tools to come up with a strong headline. Give the tool a noun or verb, and the Tweak Your Biz Title Generator provides dozens of headline possibilities. They will at least get your creative juices flowing, even if you don’t use any of the suggested headlines.

Copyblogger’s How to Write Magnetic Headlines is an 11-part series that will give you headline formulas and templates for your content.

To see if these eight tips work for you, be sure to experiment. Every industry and every audience is different. Not everything may appeal. Once you see which headlines YOUR readers are responding to, you can apply the same techniques to develop new headlines and increase traffic to your blog.

Credit Literacy Quiz: Test Your Credit Knowledge

BusinessCredit — Tue, 11 Jun 2013 18:12:39 +0000

Despite the massive amounts of resources being assembled in the cause of financial literacy, year after year, surveys uncover that people all over the country are as financially and credit illiterate as ever.

Winning this battle requires us to be diligent and forward thinking. It begins by educating our children on sound credit and financial management principles.

To test your credit literacy, see how well you answer the following questions:

Do you know your current FICO® score? You’re not alone if you answered no. Nearly 70.5 million people are unaware of their current credit scores.
If you know your FICO® score, did you know a 740 or above allows you to save the most money and have the most control over your financial position? Unfortunately, about 43 million people have a 599 credit score or lower. Not to mention the millions of people with scores below 740.
Are you aware that identity theft is the fastest growing crime in our country today? It’s shocking to hear that every 3 seconds, an identity is stolen. By the time you finish reading this post, think about the number of people whose identity has just been stolen.
Do you know one of the ways to protect your credit scores is to keep credit card balances under 30% of the credit limits? Your level of debt, also known as credit utilization, accounts for 30% of your credit scores. A low credit utilization on each account and overall demonstrates that you can responsibly use credit.
Did you know your credit score impacts what you’ll pay not only on mortgages, auto loans and credit cards, but also your insurance premiums? The fact is that it could cost you over $200k in interest, expenses and fees over the course of your lifetime if you have less than excellent credit scores.
Are you aware that over 50% of employers use credit scores as a factor in determining who they will hire? While eight states now limit employers’ use of credit information in employment, the remaining states still allow its use.
Do you know that you are entitled to one free credit report per year from Equifax, Transunion and Experian? Nearly two thirds of the population (that’s 65% or 148 million people) has not ordered a free credit report in the past year.
Did you know there is a way to prohibit creditors’ ability from pulling your credit report for promotional purposes? If you don’t want to receive prescreened offers of credit and insurance, you have two choices: you can opt out of receiving them for five years or opt out permanently. To opt out for five years, call toll free 1-888-567-8688 or visit optoutprescreen.com to opt out for either five years or permanently.
Do you know nearly 80% of all consumer credit reports contain inaccuracies or erroneous accounts? In a recent FTC study one in four consumers identified errors on their reports that might affect their credit scores.
Are you aware that credit reporting agencies are privately held billion dollar companies, not government agencies? A credit reporting agency (CRA) is a company that is in the business of collecting and selling information about how people handle credit. They are regulated by the Federal Trade Commission (FTC).

So how did you do? We all know knowledge is power, but it’s only powerful when it’s applied. The real test is being able to utilize what you know or learn more about what you don’t. Let these questions help you measure your credit knowledge and see where you stand.

Let’s Celebrate National Small Business Week – Together, Online and in your Community!

ngoriel — Mon, 10 Jun 2013 16:41:10 +0000

SBA is gearing up for National Small Business Week, June 17-21. This year we are taking the show on the road offering educational panels and workshops on topics like how to start business, social media 101, how to protect your business against cyber security threats, how to start exporting, just to name a few.

The week will kick off in Seattle on June 17, followed by events in Dallas, St. Louis and Pittsburgh. We’ll end the week in Washington, DC were we will honor small businesses from across the United States and culminate in the announcement of the National Small Business Person of the Year.

Check out the full conference schedule here.

Hang Out with SBA and Industry Experts

As part of National Small Business Week, SBA will host a series of Google+ Hangouts which will be streamed live at www.sba.gov/smallbusinessweek, http://www.youtube.com/sba, and http://plus.google.com/+sbagov. All Hangouts will start at 4pm ET. Topics and panelists include:

June 17 - Getting Started with Social Media

Panelists from Twitter, Constant Contact, W20 Group and Google will hang out. Bill Murphy Jr., author and columnist for Inc.com will moderate the Hangout.

June 18- Managing Your Business’s Online Reputation

Panelists from Yelp, LinkedIn, OpenSky, Dun and Bradstreet Credibility Corp., Google and Manta will hang out. Rieva Lesonsky, CEO of GrowBiz Media will moderate the Hangout.

June 19- How a Mentor Can Help Your Business

Panelists from the SBA's Office of Entrepreneurial Development, America's Small Business Development Centers, and Women’s Business Centers will hang out. Fran Tarkenton, NFL legend and entrepreneur will moderate the Hangout.

June 20- How to Get a Business Loan

Panelists from Wells Fargo, SCORE, SBA Office of Capital Access, and SBA loan recipient Ninkasi Brewing Company will hang out. Calvin Goings, SBA regional administrator will moderate the Hangout.

How can you get Involved?

You can still register for events in St. Louis, and Washington, DC. If you can't travel, you can still take part by joining live streaming webcasts of all events and Hangouts as they happen (keep an eye on the event website and follow SBA on Twitter and Facebook for more details as the event approaches). If you are tweeting, the official hashtag is #SBW2013.

Successful Encore Entrepreneurs Highlighted at National Small Business Week

CeceliaT — Fri, 07 Jun 2013 16:27:02 +0000

National Small Business Week, June 17-21, will feature dozens of successful small businesses from across the country, including entrepreneurs who started their business after age 50.

This year marks 50 years of National Small Business Week, and is fitting to highlight the thriving small business owners over the age of 50 who help drive the economy and create jobs. The businesses range from a baker of Artisan breads to a helicopter pilot school, and from a maker of skincare and cosmetic products to an aerospace design firm.

The U.S. Small Business Administration will honor these businesses and the more than 100 outstanding business owners in Washington, D.C., on June 21 for their achievements. The week will culminate with the announcement of the National Small Business Person of the Year.

For more than 70 million Americans over 50, business ownership is a practical option. It can be a second career or a chance to leverage life experiences into an interesting and financially practical “encore” career. One in four individuals ages 44 to 70 is interested in becoming an entrepreneur and 63 percent of Americans plan to work during retirement.

One such business owner is Steve Miller of Boynton Beach, Fla., this year’s Florida Small Business Person of the Year. After a 33-year career in the medical profession as a registered nurse, Miller was ready to dive head first into full-time small business ownership.

Miller received some advice and direction from a business development program through south Florida’s SCORE network. “Herb Douglas was my business mentor and his guidance and input was crucial,” said Miller. “Small business capital was not my concern as working out of the home minimized costs but I don’t think I would be where I am now without Herb’s mentorship and input from the great staff at SCORE.

Miller’s background provided him with an in-depth knowledge of the use of hospital devices, and in 2003, he founded EPreward, Inc., to provide precious metals recovery services to cardiology departments and medical offices. Today, EPreward employs 10 full-time employees and had revenues of more than $2.8 million in 2012.

Small businesses are welcome to attend National Small Business Week events.

Participants can register online until June 12.

New Early Stage Fund Solicitation Creates Exciting Opportunities For Fund Managers, Investors

Karen Mills — Thu, 06 Jun 2013 18:08:50 +0000

All across the country today there are promising startups looking to scale their businesses and to bring innovative, game changing ideas to market. The ability of these businesses to access long-term, patient capital is critical to their success and to the growth of the American economy.

However, today only six percent of venture capital is going to early stage rounds of between $1 and $4 million, creating a Valley of Death for many new businesses.

Compounding this lack of early stage capital is the fact that 70 percent of venture capital goes to just three states: California, New York and Massachusetts. And 40 percent of all venture capital goes to just one region: Silicon Valley. That is up from 30 percent in the late 1990s, according to a study by PricewaterhouseCoopers and the National Venture Capital Association.

There are enormous opportunities for investors and venture capital funds to finance innovative early stage firms outside of these traditional start-ups hubs. The market is less crowded and the field is ripe with outstanding entrepreneurs with experience across a broad array of growth industries. I get to meet these entrepreneurs every week when I travel around the country and visit their businesses.

At the U.S. Small Business Administration (SBA), we recently launched an Early Stage Fund to help fill market gaps, spur private sector investment and to help firms avoid the Valley of Death—and we are opening a new solicitation for the Fund beginning in the Fall. As part of this new round, we have increased the amount available for investment from $150 million to $200 million.

Here’s how it works: We provide a 1-to-1 match with private capital, capped at $50 million. Funds participating in the program must deploy 50 percent of total capital in early stage companies (companies that have never achieved positive cash flow from operations in any fiscal year). There is a minimum private capital raise of $20 million. All investment decisions are made by the private fund managers.

We have allocated up to $1 billion in SBA-guaranteed leverage commitments over five years to the Early Stage Fund. The Fund operates through our Small Business Investment Company (SBIC) Program. Our SBIC program is authorized to commit up to $3 billion annually in funds, making the SBA one of the largest participants in its space.

In Fiscal Year 2012, our SBIC program had its third consecutive record-breaking year. Investment funds licensed as SBICs provided more than $3 billion in growth capital to over 1,000 small businesses, a 17 percent increase from FY 2011 and an 83 percent increase from FY 2010. In FY 2012, the SBA also licensed 30 new funds, including a record 27 Debenture SBICs.

A key factor driving the success of the program has been ongoing efforts to streamline its operations. In 2009, it took 14.6 months to get an SBIC fund licensed. Today, it takes only 5.4 months, a 60 percent improvement in licensing times.

If you want to learn more about our Early Stage Funds and the new solicitation, or to read more about the SBIC program, go to www.sba.gov/inv.

7 Marketing Ideas That Can Help Boost Your Profits this Father’s Day

Caron_Beesley — Thu, 06 Jun 2013 13:33:58 +0000

Father’s Day is right around the corner, providing another opportunity for small businesses to reach out to customers with an incentive to visit their stores, restaurants or websites and make a purchase.

Who’s your target market? Wives, moms, children and even grandparents are all about to start thinking about gift giving and doing something special for the fathers in their lives. And they spend big; according to a National Retail Federation survey, the average person will shell out $117 on a gift for Dad – that’s $12.7 billion in total spending.

What gifts can Dad expect? According to the survey, special outings, such as golfing, eating out or heading to a sporting event, are the most popular ways to celebrate. Electronic gift items and apparel are also big draws. Gift cards are another favorite, followed by sporting goods, books or music.

Let’s face it: choosing the right gift isn’t easy. Dads can be tricky to buy for. So what can you do to help them out and make their choices easy and the day special for fathers everywhere? Here are seven Father’s Day sales and marketing tips to help you boost your profits – regardless of your business.

Make it Easy for Buyers

Dad has it all, right? So think of ways to help make the gift-giving choice easy for your customers. If you run a store or website, a gift guide is a great way to do this. Offer suggestions by price and/or interest and use emails, social media and e-newsletters to group and highlight inventory along the same lines that appeals to Dad (and perhaps more importantly, women – who are often the buyers this holiday).

Offer complimentary gift-wrapping too (and don’t forget to promote it) – this is a big time saver for busy moms. Online stores can offer free shipping or offer free upgrades (regular to expedited shipping) as Father’s Day draws nearer.

Make Dad’s Life Easier

Could you offer a Father’s Day special that frees up Dad’s time so he can spend more of it with the family? This is an idea that works best for service businesses. Get creative. For example, a restaurant could do a promotional tie-in with a local car wash, so Dad can enjoy a Father’s Day brunch and the gift of a car wash bundled in.

Give Dad a Reason to Visit Your Business – Indulge and Pamper Him!

Think of ways to entice dads into your store or business over Father’s Day weekend. This is something that can work for all types of businesses – from health care practices to hair salons. Offer a demo or complimentary service. For example, if a chiropractor could offer a free spine or posture evaluation – we all want our dads to be healthy, after all! If you sell technology or home / DIY goods, hold an open house and give Dad a hands-on demo of popular products. Offer an incentive to make a purchase in the next seven days.

Target Kids (and Mom)!

Kids are part of the buying decision, so think of ways to entice children into your store or restaurant. Whether it’s a special offer for kids who actually make a purchase using their own pocket money, or a special event or offering that attracts kids (and their parents) to your business – such as “kids eat free on Father’s Day,” or free giveaways for kids when mom makes a purchase.

Alternatively, look for ways to help Mom make a purchase while her kids have a designated play area, or vice versa!

Offer Something That Dad Can Do With His Kids

We tend to think of Father’s Day gifts as a treat for Dad that he can enjoy away from home (golfing, fishing, etc.). Be unique – offer gifts that Dad and the kids can enjoy together. It could be a class that they could take together or a discount on a combo product that Dad can enjoy with his kid(s).

Generate Buzz

Even if you don’t have specific Father’s Day specials, don’t pass over the occasion. Recognize the day in other ways. Host a contest on Facebook – ask your fans to submit their silliest Dad pictures or host a Dad-themed contest or raffle in your store.

Honor Dads Across Demographics

No one dad is the same. Some are overseas serving their country; others may be dads for the first time. Think of ways to honor these fathers. Develop a theme and make sure it runs through all your marketing and promotions.

Using Testimonials, Endorsements and Online Reviews in Your Marketing – How to Ensure You Aren’t Breaking the Law

Caron_Beesley — Wed, 05 Jun 2013 17:39:27 +0000

Do you use endorsements or testimonials from customers in your marketing or advertising? Many business owners do. The power of referrals and quotes from customers can mean the difference between success and failure. However, you need to be aware of truth-in-advertising and endorsement laws. Likewise, if you use ask bloggers to write about your products, you need to be clear and transparent about your affiliations.

The Federal Trade Commission (FTC) oversees consumer protection laws in a number of areas, truth-in-advertising being one of them. So, if you intend to use customer quotes or endorsements from others to help sell your products and services, here’s what you need to know to ensure you comply with the law:

All Endorsements Must Be Truthful and Not Misleading

What does this mean? In essence, they must reflect the endorser’s actual experience and opinion. You also can’t use endorsements or testimonials that make claims about your products or service that you can’t back up with clear proof. We’ve all seen the ads that promise weight-loss miracles, often backed by quotes from customers testifying to their success. However, if there isn’t scientific evidence to prove that this is true, then you are effectively misleading your customers. The FTC can hold both you and your endorser responsible for deceptive marketing practices.

Endorsements Must Reflect Typical Experiences

In addition to being truthful and not misleading, endorsements must reflect the typical experience of consumers who use the product – not the experience of just a few satisfied customers. If an endorsement doesn’t meet this requirement, the ad must clearly disclose either what consumers can expect their results to be or the limited applicability of the endorser’s experience. It’s not enough to simply add a disclaimer like “Not all consumers will get these results” or “Your results may vary.”

So what are your options? Well, if the endorser’s experience isn’t typical, then you can go ahead and use the endorsement, but you must have adequate proof to back up the results that the consumer claims to have gained. Alternatively, you must clearly disclose the results that people can expect.

Example: Let’s say you manufacture or sell a product for which you want to make very specific claims – backed by a customer endorsement, such as a cosmetic wrinkle-reducing cream. Any quotes, testimonials or endorsements used must also be accompanied by a statement that clearly discloses the results that most people could expect in similar circumstances. And be specific: “Most users of this product saw a 50 percent reduction in the appearance of fine lines and wrinkles after using this product for 12 weeks.” It would also be a good idea to have a link to any data that backs up this claim, such as a scientific research study.

Tip: Let’s look at a real life scenario that many small business owners might encounter. Say you run a hair salon or landscaping business and you want to use a few customer quotes on your website – what should you do? Well, it’s a good idea to get permission from endorsers before you post their comments (and an absolute must if you intend to post their names). Likewise, it would also be a good practice to check that they are willing to be contacted for a reference if a potential customer wants more information about their experiences. Before and after pictures are also a great way to back up the validity and truthfulness of any endorsements or claims.

Disclose Any Connections or Affiliations to Your Endorser

If you have any material connection with an endorser of your product, you must disclose it. So if you pay bloggers or affiliate marketers, or even give them free samples in return for a review, you must disclose that relationship. It’s OK to use these endorsements in your marketing or advertising, but be sure to add a disclaimer. For example:

Encourage bloggers or affiliates to follow the law by adding a disclaimer to their blogs or endorsements: “ABC Company gave me this product and here’s what I think…”
In your own ad, state the material connection you have with a paid or compensated endorser: “We provided John Doe with a trial product for review, here’s what he had to say…”

What About Using Online Reviews?

Referrals and recommendations are an essential part of the small business owners marketing mix. Today, those reviews are increasingly part of the post-sales experience thanks to the popularity of independent online review sites like Yelp, Google+ Local, Service Magic, Angie’s List and more.

But can you lift quotes from these sites and use them in your marketing? If you check the Terms of Service of most these sites, user-generated content (i.e. reviews) are the property of the person who wrote the review. To use these reviews without permission of the reviewer may infringe copyright laws. There are other ways, however, to incorporate customer reviews into your website. Consider the following:

Add links or plug-ins to your website that take people directly to your page on crowdsourcing review sites like Yelp.
Use third-party rating and review tools, such as Shopzilla or BazaarVoice, on your site so that consumers can review products post-sale. Don’t forget to add a disclaimer notifying your customers that the review may be posted online and used for marketing purposes. By using these services, your reviewers are subject to Terms of Service, which often includes giving consent to you as the website operator to use and publish their reviews, as well as certain biographical information such as name, alias, or location.

Because these reviews aren’t technically endorsements or testimonials and the reviewer has previously agreed to the Terms of Service, businesses (including many notable brands) often lift quotes from online reviews (remembering to strip out any biographical information that could identify the reviewer) and use them in email marketing, fliers and so on. If you have any doubt about the claims you may be making by using these reviews, consult an attorney.

More Information

For more information, consult the FTC’s Endorsements guide for businesses and check out this quick video from the FTC that summarizes what you need to know:

Working With Franchise Salespeople

FranchiseKing — Wed, 05 Jun 2013 12:49:47 +0000

You’re interested in a franchise or two. You want to learn more about the opportunity. Who will you be talking to at headquarters?

Franchise Salespeople

If you guessed a franchise salesperson, also known as a franchise development representative, you guessed right. And yes – you are going to get “sold” on the franchise business opportunities that you’re interested in. But don’t worry; it won’t be like buying a new car. (I was in automobile franchising in a past life-so that observation is based on facts.)

Who Are They?

Franchise salespeople are just like you and me. Most of them have families to support. They’re trying to earn a living. When I was in franchise brokerage*, I worked with lots of them – and still maintain relationships with several franchise development personnel.

What Do They Want?

They want to sell new franchises; that’s what they get paid to do. And, they’re professionals – in a good way*.

They want to find the best candidates (franchise industry-speak for potential franchise owners) for their franchise opportunity. And in order to do that, they have to weed through a lot of would-be franchise owners.

Today’s franchise salespeople can’t waste time on candidates who are “dreamers.”

For example, when I was a franchise broker, I talked to a fair amount of candidates who had been “looking for the right franchise” for years. Years.

Now, I don’t want you to feel that I’m being too harsh here, but it shouldn’t take “years” to find and purchase a franchise. There are too many excellent choices around…there are lots of tried and true franchise concepts for the taking.

If you’re looking to become the owner of a franchise, commit to finding one that makes sense for you to possibly buy in less than a year. If you’re at a point in your life that you’re mentally and financially ready to do your own thing, you should be able to find, research and possibly purchase a specific franchise within a three-month time period. (If you’re super analytical, let’s say four months.)

My feeling is that you’re either ready to take some risk and become your own boss or you’re not.

Working With Your Salesperson

After you request information for the franchise(s) that you’re interested in finding out more about, you’ll get an email and/or a call from the franchise salesperson.

This will usually be a simple follow-up call or email, and you’ll be asked to schedule a time for a formal phone conversation. Do it. It’s the only way that you’ll be able to start gathering some facts about the opportunity.

The first few minutes of your scheduled call will usually consist of getting to know each other a bit. The conversation will probably be more about the weather or your local sports team than franchises. This conversation will eventually start moving towards the real reason for the call: your interest in their franchise opportunity.

You’ll get to ask questions and the franchise representative will, too.

The first phone call is really important. Go easy. Save some of your tougher questions for the next call. (Unless of course there won’t be a second call. Sometimes you find out enough about the opportunity to know that it’s just not for you.)

And when you get questions asked of you, be honest. If you’re looking for a franchise and looking for a job, share that with them. It’s okay. They understand. If you’re looking at other franchises, you don’t have to tell them which ones – just tell them that you’re looking at some others. No harm in telling them that. They know that you’re probably looking at other opportunities, too.

Continuing Through The Process

If you’re still interested in the franchise(s), you’ll have numerous conversations and email correspondence with the franchise representative. You’ll really get to know them. That’s a good thing!

Share how you are feeling about their opportunity. Ask lots of questions. Here are five*.

Ask them how they are feeling about you. See if you can find out if the rep thinks that you are a good fit for their franchise concept. But, try not to act too anxious. On the opposite end of the spectrum, don’t hold things too close to the vest.

Like any relationship, the one between you and the franchise development representative needs to be one of give and take. Be nice. Act professional. Expect the same from them.

Your journey towards owning a franchise will have lots of twists and turns. Establishing a good relationship with your franchise salesperson can help keep things straight.

*Non-US Government links

Workplace Wellness: Improving Health and Controlling Health Care Spending

Meredith K. Olafson — Tue, 04 Jun 2013 20:31:23 +0000

According to the U.S. Department of Health and Human Services, chronic disease is responsible for 7 out of 10 deaths among Americans every year. And we know that the costs associated with treating individuals with chronic conditions account for the majority of annual spending on medical care. Across the country, more employers are learning how nondiscriminatory employer-based prevention and wellness programs can help improve the overall health of our workers and control health care spending—and the Affordable Care Act is making it easier.

The Cost of Chronic Disease and the Benefits of Workplace Wellness

HHS reports that the cost of treatment for those with chronic conditions like heart disease, cancer, strokes, and diabetes accounts for over 75% of our annual medical care costs. In addition to these direct costs, the indirect costs associated with poor health --such as worker absenteeism, reduced productivity, and disability -- may be significantly higher. According to the Centers for Disease Control and Prevention (CDC), these productivity losses due to personal and family health issues can cost U.S. businesses $1,685 per employee per year, or $225.8 billion annually.

So how can you help your employees protect against illness, while also ramping up your workplace productivity?

Workplace wellness programs can help promote healthy behaviors and improve employees’ health-related knowledge. They also help employees get important health screenings, immunizations, and follow-up care. Implementing and promoting workplace wellness programs such as those that reward employees for achieving targeted health-related standards can help improve the health of America’s workforce and reduce long-run costs.

New Incentives for Workplace Wellness Programs under the Affordable Care Act

The Affordable Care Act creates new incentives to promote employer wellness programs and encourage employers to take more opportunities to support healthier workplaces. Health-contingent wellness programs generally require individuals to meet a specific standard related to their health to obtain a reward, such as programs that provide a reward to employees who don’t use, or decrease their use of, tobacco, and programs that reward employees who achieve a specified level or lower cholesterol.

Under finalized rules that take effect on January 1, 2014, the maximum reward to employers using a health-contingent wellness program will increase from 20 percent to 30 percent of the cost of health coverage.

Additionally, under the final rules, the maximum reward for programs designed to prevent or reduce tobacco use will be as much as 50 percent. The rules also allow for flexibility in the types of wellness programs employers can offer. More information on the finalized rules is available from HHS and the U.S. Departments of Labor and Treasury.

Workplace Wellness How-To’s and Resources

To help you get started, or to expand your workplace wellness program, the Centers for Disease Control and Prevention has a great set of online resources, including toolkits, tips on program design, and a “one-stop” shop for online program resources.

To view the final rules related to new incentives for employer wellness programs under the Affordable Care Act, click here.

For more information about preventive services covered under the Affordable Care Act such as blood pressure and cholesterol screenings, mammograms, colonoscopies, screenings for osteoporosis and more, go to http://www.healthcare.gov/law/features/rights/preventive-care/index.html.

How to Build and Use a Business Budget That's Useful All Year Long

Caron_Beesley — Mon, 03 Jun 2013 11:34:00 +0000

Budgets are difficult to plan and maintain at the best of times – unexpected events, cash flow problems, supply chain issues and more can all reap havoc with even the most thoroughly planned business budgets. The other problem with budgets is that many of us set budgets in our business and personal lives at the beginning of the year, and then file them away until the year-end rolls around once more.

And this is where the problem lies: your business is never static, and your budget shouldn’t be either.

Here are some tips for developing and managing a dynamic budget that can keep you on course all year long.

Why Budgets Are So Important

Budgets are enormously important to the operation of your business; not only do they help you manage your costs, but they also help you determine whether you profit goals are within reach and keep you on the right road from month-to-month. In its simplest form, a budget is a detailed plan of future receipts and expenditures. Think of a budget as a tool for providing control. For example, by looking at next quarter’s budget you can anticipate peak periods and schedule stock and labor to handle the sales volume. You can also plan vacations, marketing activities and inventory taking for slow periods.

Most small business owners generally use a budgeting method that starts by identifying the profit they want to make and then listing out the expenses they’ll incur in order to reach their goal. There are several resources at the end of this article that can help you build your business budget.

Update Your Budget Monthly

If your budget is going to work for you, plan on revisiting it on a monthly basis with your management team and update it based on your business performance and expenses for the prior month. Take a look at your sales forecast – how’s your pipeline looking? Are there any indicators that you need to make changes to your budget to cover additional inventory or staffing needs? Look at your expenses – are they as projected, or do you need to cut back in certain areas to ensure you stay on track?

Make Changes That Can Have a Positive Impact

Based on your monthly review, make changes to your budget and then wait to see what impact these have to your income and profits – by month and by year. For example, perhaps you are under-investing in marketing – adjust your budget and see what happens to your pipeline next month or over a six-month period. In your next review cycle, look to see if you are a getting good return on marketing dollars spent per sales lead. Then use this information to inform future planning decisions about where best to allocate your costs.

What about receivables? Are there ways you can speed up your invoicing and payment cycles to keep cash flowing into the business?

Respond to Unexpected Changes

Use your budget to help you adjust to the unexpected. Say, for example, an important client cuts their own budget and reduces the amount of business they do with you. Take a look at your budget and how this reduction in revenue affects your cash flow and for how long –- meaning how long will it take to find a new client to replace that important revenue source and what will it cost you in terms of marketing or hiring costs to help you uncover new business?

Tie Incentives to Budget Performance

A great way to get everyone on-board with the idea of focusing and interacting regularly with your budget is to tie performance bonuses to it. So, at the beginning of the year when you plan your annual budget, set parameters for performance tied to profit, but also other categories such as return on investment in marketing dollars, keeping expenses at or lower than plan and so on.

More Information and Templates

For more information on crafting a budget for your business, check out this easy-to-follow guide – Budgeting in a Small Service Firm – from SCORE that explains how to create, manage and adjust a small business budget. SCORE also provides a downloadable and editable 12-month budget template.

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Image courtesy of Casey Konstantin, Flickr

SBA Signs Memorandum of Understanding with the Asian Pacific American Chamber of Commerce and Entrepreneurship

Marie Johns — Fri, 31 May 2013 01:32:45 +0000

As we mark the end of Asian-American Pacific Islander (AAPI) Heritage Month this May, the U.S. Small Business Administration (SBA) recognizes how important the success of America’s 1.5 million AAPI- owned businesses is to the strength of our economy.

With more than 2.8 million workers, these firms are fueling job creation and strengthening our communities at a critical time in our economic recovery – and SBA is here to help them grow and succeed.

Four years ago, America’s small businesses and entrepreneurs were struggling in the face of the worst economic environment since the Great Depression – and a banking sector that was frozen. Since that time, President Obama has worked to expand opportunities for AAPI business owners – particularly through increased access to credit.

And we’ve seen real progress.

We already know that SBA loans are three to five times more likely to be made to minority- and women-owned businesses than conventional small business loans made by banks. And between January 2009 and March 2013, over $19 billion went to AAPI small businesses through 27,485 SBA loans.

We’ve also been working closely with our partners at the White House and throughout the Administration to reach more AAPI small business owners across the country - owners like Mei Xu, the founder of Chesapeake Bay Candles.

Mei’s is a classic story of American success. In early 1994, she and her husband both left their jobs to follow their entrepreneurial spirits and establish Pacific Trade International and their premier brand Chesapeake Bay Candles. They used an SBA loan in 1995 to invest in their business and scale their operations, and Mei recently opened Chesapeake Bay’s first American manufacturing facility in Maryland, which will employ over 100 people and produce 16,000 candles a day.

At SBA, we’re constantly looking for more ways to help business owners like Mei, who have the creativity and drive to build a successful small business. And while we’ve made progress, we know that there is more work to do.

Private sector partners like the Asian Pacific American Chamber of Commerce and Entrepreneurship (ACE) play a key role in connecting America’s entrepreneurs with the opportunities they need to start a business, or take an existing company to the next level.

Earlier today, I had the pleasure of joining ACE Chairman Bill Imada and members of the Chamber’s board to sign a Memorandum of Understanding between our two organizations.

This strategic alliance lays the groundwork for our future partnership and will ensure that entrepreneurs across the country have the tools they need to start and grow businesses and create jobs.

As President Obama has said, “The story of America’s success is written by America’s entrepreneurs; men and women who took a chance on a dream and they turned that dream into a business, and somehow changed the world.”

This memorandum brings us one step closer to helping AAPI men and women achieve this dream.

And together we’re building a more resilient and more inclusive vision of entrepreneurship – one that creates jobs and strengthens our economy nationwide.

Newly Graduated? – 10+ Tools and Resources to Help You Start Your First Business

Caron_Beesley — Thu, 30 May 2013 10:56:07 +0000

Just graduated from college and looking to start your own business? With the economy still in recovery mode, many students are actively seeking an alternative to traditional post-college career paths.

According to Kauffman Foundation, young entrepreneurship in the U.S. is on the rise, with the 20-34 age group comprising 29 percent of the total new entrepreneurship activity in 2011.

Starting a business isn’t easy, and clearly for many young people it’s a risky path to take. Concerns range from worrying about being able to get a loan or line of credit; not having the skills or knowledge to start; and not knowing how to run a business (source: iHonest.com).

But for those with great ideas and a desire to be their own boss (and employment generator), support is at hand. Both online and in small business assistance centers throughout the country, SBA and its partners offer a variety of tools, programs and resources to help young entrepreneurs plan, start and grow their businesses.

Here are just a few tools that can help make the difference between success and failure as you plan your post-college entrepreneurial dream:

Free Online Training for Young Entrepreneurs

For a useful overview of the steps you need to take to get started, as well as some considerations that can help you understand if running a business is for you, take a look at this Free Online Course – Young Entrepreneurs: An Essential Guide to Starting your Own Business. This self-paced training course walks you through the steps of turning a business idea into reality. It includes tips on doing your research, deciding on a business model, understanding financing options for young entrepreneurs and six “must-do’s” for getting started.

Get Help and Mentorship

As mentioned above, not knowing how to start or manage a business is a huge concern for young entrepreneurs. But did you know you can get the services of a mentor – someone who has walked in your shoes – for free? SCORE is one such organization that can pair you with a mentor for general business guidance, or help in specific areas such as finance or marketing. Local Small Business Development Centers, Women’s Business Centers and other organizations also offer counseling, training and assistance. Find one near you here. You can also use SBA’s Events Calendar to find and sign up for training in your area.

Online Tools That Help at Every Stage

Wondering how to create a business plan? Need help determining how your business stacks up against the competition? Unclear of the steps involved in starting your business?

The SBA.gov website has developed numerous online tools and guides to help small businesses get information and answers they need quickly and efficiently. For example, these 10 Steps to Starting a Business and these 10 Steps to Hiring your First Employee guides are essential reading. Did you know you need a business license or permit to operate legally? This Licenses and Permits Search Tool can point you to what you need.

Other tools that business owners are finding extremely valuable include:

Build a Business Plan Tool – Many of us put business planning off, thinking we’ll come back to it when we need to put something official in front of a potential investor. But it’s vital that young entrepreneurs plan their businesses, set goals and define plans for achieving them. To help create your plan, check out SBA’s interactive “Build a Business Plan” tool, which guides you through the process of creating a basic, downloadable business plan. The great thing about it is you can build a plan in smaller chunks of time, save your progress and return at your leisure.
“SizeUp” Your Competition – How does your business stack up against the completion? Where are your competitors located? What are the best places to market your business? Use SBA’s “SizeUp” tool to crunch millions of data points and get customizable reports and statistics about your business and its competition. Just enter your industry, city, state and other details. SizeUp then runs various reports and provides maps and data related to your competition, suppliers and customers. It also highlights potential advertising opportunities.
Want to Sell to Uncle Sam? To help you determine if your new business might qualify with the largest buyer in the world – the U.S. federal government – use SBA’s Size Standards Tool to see if you qualify for special set-aside contracts for small businesses.

Additional Resources

8 Things you Can Do to Be Taken Seriously as a Young Entrepreneur
Defer your Student Loan - Don’t let your student loan repayments hold you back from starting your own business. The Student Startup Plan (through the White House-led Startup America initiative) enables college graduates, including those looking to start a business, to lower student loan repayments.
Young Entrepreneur Guide - SBA also hosts a one-stop portal for young entrepreneurs that brings together these resources and more.

Image courtesy of Steven Depolo via Flickr

Developing a Mobile App? Follow These 12 Tips for Protecting and Securing User Data

Caron_Beesley — Wed, 29 May 2013 10:51:47 +0000

Smartphone and tablet users will download 70 billion apps this year, according to an estimate by ABI Research. And the total global mobile app market is expected to be worth $25 billion by 2015 reports TechCrunch.

If you have an idea for a marketable app or are currently developing one, then the world may just be your oyster. But before you take your app to market and get it accepted by an app store, the Federal Trade Commission (FTC) wants to ensure that your security policies are up to scratch and that you have taken the right measures to protect the data that your users share with you.

Why? Apps and mobile devices often rely on consumer data – including contact information, location, photos, and so on – all of which can be vulnerable to data breaches, digital snoops and regular theft. In fact, MarketsandMarkets cites the risk of data theft through delivery of phishing and spyware in mobile apps as the biggest downside to the growth in available apps.

The FTC offers the following 12 tips to help developers approach mobile app security:

1. Appoint a security lead

Your development team should include at least one person responsible for considering security at each stage of your app’s development. If you are a solo entrepreneur, then that person is you.

2. Review the data you intend to collect and maintain

Don’t collect or keep data that you don’t need. If you don’t need user’s contact info, don’t collect it. Likewise, don’t keep user data any longer than you need to – including location data.

3. Understand the differences between mobile platforms

Each mobile operating system uses a different application programming interface (API), which includes different security features and permission handling. So don’t just assume one size fits all; adapt your code accordingly.

4. Don’t rely on a platform alone to protect your users

Platforms may offer features to make security easier, but it’s up to you to understand them. Use them properly, and explain them to your users in everyday language.

5. Create secure user credentials

If your app requires that users create usernames and passwords, make sure that these credentials are secure and appropriate to the nature of your app. For example, a social networking app would require a higher level of authentication (password strength requirements) than a gaming app.

6. Encrypt any data that is transmitted

Use transit encryption (SSL/TLS in the form of HTTPS) to secure usernames, passwords, API keys and any other important data that is transmitted from a device to your server. This is particularly critical because many users use un-secured public WiFi networks to access apps. If you use HTTPS, use a low-cost digital certificate from a reputable vendor and ensure your app checks it properly.

7. Exercise caution and use due diligence on libraries and other third-party code

Third-party libraries can save time, but keep your ear to the ground. Does the library or SDK have known security vulnerabilities?

8. Consider protecting data you store on a user’s device

If a user’s device becomes infected by a virus or malware, or they lose their device, think of ways you can help them protect any personal information that your app handles. Encryption is one option. Some platforms have their own storage schemes for protecting sensitive user data such as passwords and keys – use them.

9. Protect your servers, too

If you maintain a server that communicates with your app, take appropriate security measures to protect it. If you rely on a commercial cloud provider, understand the divisions of responsibility for securing and updating software on the server.

10. Don’t store passwords in plain text

Protect user passwords by avoiding plain text storage on your server. Use an iterated cryptographic hash function to hash users’ passwords and then verify against these hash values. (Your users can simply reset their passwords if they forget.)

11. You’re not done once you release your app. Stay aware and communicate with your users

Once your app is out there and available for download, stay involved with its security. Update security libraries, push updates out to users, and use user feedback to help you spot and fix vulnerabilities.

12. If you’re dealing with financial data, health data, or kids’ data, make sure you understand applicable standards and regulations

If your app deals with kids’ data, health data, or financial data, ensure you’re complying with relevant rules and regulations, which are more complex. The FTC offers details on the regulations that your business needs to be aware of in the following guides:

The Bottom Line: One Size Doesn’t Fit All

There are no hard and fast rules for app security. The FTC clearly states that it expects app developers to shoot for reasonable data security practices and doesn’t prescribe a one-size-fits-all approach. For example, if you are developing a basic app such as an alarm clock or flashlight that collects little or no data, then this is going to raise fewer security considerations than a location-based social network or, let’s say, a health-monitoring app. These apps may use remote servers to store user data, and as a developer you’ll need to secure your app from end-to-end. This includes the software, as well as data transmission and servers.

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8 Ways the U.S. Government Can Help You Finance Your Small Business Exports

Caron_Beesley — Tue, 28 May 2013 11:24:58 +0000

Looking to expand into overseas markets?

Whether you are entering the export market, looking to upgrade your equipment or facilities in preparation for exporting, or helping your international buyers do business with you – there’s a U.S. government financing program that can help.

With two thirds of the world’s purchasing power residing outside the U.S., the SBA is acutely aware that these global consumers play an important role in the long-term success of America's small businesses, and SBA is working to help small business owners across the country grow their businesses in this global economy.

In fact, small businesses now constitute 34 percent of total export dollars, and comprise approximately 97.8 percent of all exporters. Of course, success in exporting doesn’t just lie with financing. SBA also provides counseling and training (via U.S. Export Assistance Centers and SBA’s online Learning Center) to ensure that small businesses have the tools they need to tap into the global market. Since FY 2009, SBA has guaranteed 6,400 loans to small business exporters worth over $3.3 billion, generating over $6.3 billion in exports.

So what financing programs are available? Both SBA and the Export-Import Bank (the official export credit agency of the United States) offer flexible loan and credit programs. Here’s what you need to know:

SBA Export Loans – Financing Your Working Capital Needs, Export Transactions, and Facility Upgrades

Let’s start with the simplest and quickest loan product that the SBA offers – the SBA Export Express Program. This loan program offers eligible small businesses up to $500,000 in financing. As with all SBA financing programs, SBA doesn’t lend business the money directly. Instead, it provides a guarantee to the lending bank or institution that in turn lends your business the money – alleviating the investment risk for the bank. What this means is you will work directly with your bank to obtain your loan. Assuming everything is good with your application, loans can be approved by the SBA within 36 hours or less.

You can use these funds for any export development activity – including financing specific export orders or expanding production facilities. You can also purchase equipment, inventory or real estate and translate marketing literature into a foreign language. It’s also the only government loan that funds participation in tradeshows or trade missions.

Learn more about the program and eligibility requirements on SBA’s Export Express Loan Program page.

If you are already in a position in which you are able to generate export sales and need additional working capital to support these sales or ensure you don’t lose them, take a look at SBA’s Export Working Capital Program (EWCP). EWCP loans again are provided through banks, and fund export transactions, including labor and materials, from purchase order to collections. They can help you even out cash flow as you support longer export sales cycles. Loans are available up to $5 million and can support short-term needs such as a single contract of ongoing export sales over 12 months. Read more here.

If you need to upgrade your facilities or equipment and are adversely affected by import competition, you might be eligible for SBA’s International Trade Loan Program. It provides up to $5 million to acquire, construct, renovate, modernize, improve, or expand facilities and equipment in support of exporting. You can also use the funds to refinance an existing loan. However, they can’t be used as working capital. Read more about eligibility and the applications process.

U.S. Export-Import Bank – Financing For Your International Buyers and More

The U.S. Export-Import Bank (Ex-Im Bank) is an official U.S. government credit agency that assists businesses of all size with their export financing needs. Ex-Im Bank essentially fills gaps in trade financing and assumes credit and country risks that many commercial lenders are unable or unwilling to accept.

Like the SBA, Ex-Im bank offers a Working Capital Guarantee Program for small business exporters through lending partners with whom it has agreements. There is no limit to the loan amount (unlike SBA’s Working Capital Program, which caps out at $5 million).

Ex-Im Bank also offers financing for your international buyers, for example, if your purchasers need financing to purchase U.S. goods and services and no other financing is available or interest rates aren’t in their favor. Financing may also be available for refurbished equipment, software, certain banking and legal fees, and other in-country costs and expenses. Three programs are offered:

Ex-Im Bank – Loan Guarantee Program – Gives you some level of risk mitigation against non-payment by a foreign buyer or having the order go to a local competitor. Your foreign buyer is the lender and they must service the debt.
Ex-Im Bank – Direct Loan Program – Provides fixed-rate financing to creditworthy buyers.
Ex-Im Bank – Finance Lease Guarantee Program – Guarantees lease financing of U.S. goods and services to creditworthy international lessees.

Other Export Financing Sources

The USDA also provides export financing to your international buyers by providing credit guarantees to foreign banks to encourage food and agricultural exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without the guarantees. Read more about USDA Export Guarantee Programs.

More Information

For more information about any of these loan programs, contact your local U.S Export Assistance Center. These offices are staffed by officials from SBA, the Export-Import Bank and other organizations that can help you find the right financing for your needs. To help with your wide exporting goals, take a look at Export.gov’s variety of programs and support.

Also check out this useful side-by-side comparison of U.S. government export assistance financing programs.

Is Your Business Ready for the next Hurricane Sandy?

Carol Chastang — Thu, 23 May 2013 21:34:35 +0000

Even before the big storm hits, small businesses start losing money once the severe weather advisories go out. The cost of shutting down, even for a few hours, is a huge expense most small businesses aren’t prepared to cover.

Hurricane Sandy caught most people off guard. The late-season storm brought flooding and power outages that caused billions in losses. The SBA approved more than 3,600 disaster loans for $393 million to businesses affected by Sandy. When you add the home disaster loans made by SBA, more than 35,400 loans were approved for a total of $2.3 billion.

The Atlantic Hurricane Season begins June 1. Now’s a good time to start working on a plan to protect your company from any risk—be it large-scale disasters like floods and hurricanes, or the sprinkler system failure in your office space.

Join the SBA and Agility Recovery on Tuesday, May 28 for a free webinar on the topic of hurricane season preparedness for businesses. Dr. Gerry Bell, a climate expert from the National Oceanic and Atmospheric Administration (NOAA) will present the 2013 Atlantic Hurricane Season forecast. After his presentation, Agility Recovery President & CEO Bob Boyd will give tips on how any company can protect themselves from the physical and financial losses that occur when a disaster strikes.

The discussion will include tips about:

Data protection
What kind of insurance coverage you need
Internal and external communication strategies

Please sign up soon, since space is limited. The webinar will be recorded and archived on Agility’s website.

Date: Tuesday, May 28, 2013

Time: 2 – 3 p.m. ET

3 Types of Insurance You May Think You Have But Don’t

BarbaraWeltman — Thu, 23 May 2013 12:23:46 +0000

Insurance is the backstop for business owners when things go wrong. Things happen, but owners want to be financially protected for the unexpected. The problem is that owners may assume they’re covered for certain events but find out after such events that they were mistaken. Don’t fall into the same trap. Here are three common situations you may assume you’re covered for but may need to make changes to be protected.

Terrorist events

You’re a restaurant owner whose windows have been blown out by a terrorist’s bomb. Or you have a medical office but patients can’t access your office because the street is closed following a terrorist attack. Will your business insurance policy help you? It depends.

After the September 11 attacks, insurance policies were clarified to exclude coverage for property damage resulting from terrorist attacks. However, businesses can obtain coverage for such events by paying extra. The *Wall Street Journal reported that about 60% of companies across the country do carry additional coverage for terrorism. Unfortunately, many small businesses don’t because of the added cost.

So are you covered or not in an event such as the Boston Marathon bombings? It depends on whether this is officially certified to be an act of terrorism. The Terrorism Risk Insurance Program Reauthorization Act was passed post-9-11 to help insurers pay for terrorism claims. Under this law, terrorism coverage is now necessary for claims resulting from an act of terrorism and basic coverage does not provide protection if the Treasury Secretary, the Secretary of State and the U.S. Attorney all certify an event to be an act of terrorism. Note: This law is set to expire on December 31, 2014, but could be extended by Congress.

Even if you have terrorism coverage, it may only provide protection for property damage. You usually need a separate business interruption policy to protect you for lost profits resulting from acts of terrorism and the aftermath. Business interruption insurance pays for your operating costs (e.g., rent, utilities and wages to employees) in addition to the profits you would have earned during the period your business was forced to close. Find more information about business interruption coverage from *InsureU.

Water damage

Water damage is the most common type of property damage for commercial buildings businesses, *according to one insurance company. But there’s water damage, and then there’s water damage. Some types of water damage are covered by your business owner’s policy (BOP), but others are not.

What’s usually covered: BOP’s typically limit coverage to water damage from within. This means damage that results from freezing pipes, broken pipes or other accidents causing water to be inside your facility.
What’s usually not covered: BOP’s typically don’t cover water damage from without (outside your building or under the foundation). This can result from flooding (e.g., from storms, snow melts), water main breaks, or sewer backup.

You can obtain coverage for water damage that ordinarily is not part of your BOP. This can be done in some cases simply by extending the coverage of your basic policy.

However, if your business is located within a flood zone, the only way to obtain coverage is with a separate flood insurance policy from the federal government (not a private insurer). The cost of coverage depends on where your business is located (the closer to a serious flood area, the higher the premiums). Find more about this coverage through the National Flood Insurance Program.

Home-based businesses

Just because you have a good homeowner’s policy doesn’t automatically give you the protection you need for your home-based business. If a business client is injured in a fall or the inventory you store in your basement is destroyed by a fire, your homeowner’s policy probably won’t provide protection. There are two ways to remedy this:

Add a rider to your homeowner’s policy to cover your home-based business. This option is useful if you have few business visitors and not too much business property to protect.
Obtain a separate business owner’s policy (BOP). This option is preferable if clients and customers regularly visit your home and/or if you have expensive business property (costly equipment and/or inventory on the premises).

Conclusion

Former Defense Secretary Donald Rumsfeld said, “there are …unknown unknowns -- the ones we don’t know we don’t know.” You may be unaware of the type of coverage your business should have. Talk with your insurance agent to determine what risks your business faces and learn about additional coverage you may want or need.

*Denotes non-government website

Grow Your Business This Summer – 7 Marketing Tips that Won’t Break the Bank

Caron_Beesley — Thu, 23 May 2013 11:39:03 +0000

Looking for ideas to incorporate the summer season into your marketing plans this year? Whether it’s a busy or quiet time for your business, here are some things you can do to take advantage of the summer months!

Take Your Business Into the Fresh Air

Don’t wait for your customers to come to you; look for ways to get in front of them. Whether you run a retail store, restaurant or provide a service to customers, consider the following:

Host a Cookout – Invite your customers (past and present) to join your business for a celebration of summer. Use your parking lot or public park and plan on catering yourself (a grill, hot dogs, hamburgers, salad, and cold drinks are fine). Look for ways to make this a worthwhile event for folks to want to join – hire a magician, moon bounce, or give away prizes. Don’t forget to offer incentives (demos or special offers) to those who attend so that they have a good reason to keep frequenting your business over the summer.

Take Part in Local Markets, Events and Fairs – What better way to win new business? Check out this quick blog from Rieva Lesonsky on how to go about finding the best fit and ensuring your participation is a success: How to Market Your Business at Summer Events, Fairs and Festivals.

Take Your Food Business on the Road - If you are in the food business, taking a concession stand on the road is a great way to earn money and give new customers a taste of what you’ve got to offer back at your restaurant or store. This article can help you understand how to start up a concession business: Starting a Mobile Food Concession Business.

Spoil Your Customers

I mentioned hosting a cookout above, but what about treating a select group of loyal customers to an appreciation event like an afternoon at a winery, a round of golf, or an afternoon of fishing? Don’t forget, as long as there is a business purpose for these activities—and substantial business discussions occur before, during or afterwards—you can claim the cost of customer entertainment expenses (including meals) as a tax deduction (typically up to 50 percent of the cost).

Hold a Themed Week or Day

Like restaurant week or Small Business Saturday, think of ways to really showcase what your business does for one week or one-day only. You might want to use some of the tips in this blog – events, community charity participation, promotions, and giveaways – or combine them to maximize visibility and interest in what you do. You could even partner up with complementary businesses or those in the same district as you and co-market each other’s products, services and specials with fliers, coupons and teasers. Try to come up with a theme, something like “ABC Town Small Business Week,” “Take a Staycation with Us,” or “Back to School Week” and weave it into all your marketing and advertising.

Give Back to the Community

Community projects are a great way to build your brand and give back to the community. Why not organize or sponsor a community service day or charitable event? Pick a cause that’s a good fit for your business and reach out to the media, in addition to your own marketing, to publicize it. You can also deduct certain expenses related to any volunteer work or charitable giving.

Summer-ize your Marketing Activities

From your website to your email newsletter, look for ways to incorporate summer themes and information that are relevant to your customers. Send out newsletters that showcase your summer specials, but mix it up with good content—summer fashion tips, recipes, or pet care in the heat.

Pre-order low-cost summer promotional items now. Branded goods such as Frisbees, beach balls and drink coolers will ensure your logo is in front of customers all summer long.

Drum Up Business with Promotions

If summer is a slow season for your business, consider offering financial incentives to increase foot traffic. Don’t just dive in with a wholesale across-the-board discount; instead, consider some of the following options:

Discount Certain Products and Services – Test the market to see if you can shift slower selling products with a limited-time discount (say, for the month of July). Promote your offer to a select segment of your email list, perhaps those who haven’t purchased from you for some time. Monitor the results. If the offer works, then consider extending it to other products and consumers next month.

Package Promotions – Offer a discount if customers buy more than one product or service. For example, buy a coffee and a donut for $3.50 instead of $5.

Off-Peak Specials – Many people have more flexible schedules during the summer months. Consider ways to draw people in during your off-peak hours, whether it’s a time-bound discount or another incentive (free corkage, bring a friend for half price, or a free consultation).

Plan for Your High Season – Take the Pulse of your Market

Again, if summer is your slow season, use the time wisely and start planning your marketing activities for the rest of the year. Conduct market research to gauge what your customers think of your business and the products and services you offer. What could you do better/more of/change? Is there a certain product that they’d like to see you carry? Are there any market or demographic trends that might impact your business in the coming year? Market research doesn’t have to cost much money; this blog explains some free resources that can help: Conducting Market Research? Here are 5 Official Sources of Free Data That Can Help.

SBA’s SizeUp Tool can also help you benchmark your business against competitors, map your customers and locate the best places to advertise.

You can also use surveys to gauge customer buying and spending habits. Use this data to inform your product marketing strategy and any other changes you may need to make in your business before your high season starts.

Watch Our World Trade Month Google+ Hangout to Learn about Exporting

Stephen Morris — Wed, 22 May 2013 20:39:14 +0000

SBA recently hosted a Google+ Hangout to honor World Trade Month. The panel of guests talked about common “rookie mistakes” and listed many resources that can help small businesses get started exporting.

You can watch the Hangout below. If you have any questions about exporting, you can tweet them using the hashtag #TradeChat.

Resources

www.business.usa.gov
www.sba.gov/exporting
www.export.gov
www.trade.gov/advocacy
www.exim.gov
www.ups.com/content/us/en/bussol/browse/international-trade-guidance.html
www.ups.com/content/us/en/bussol/browse/cash-flow-management.html
www.youtube.com/watch?v=xeOYegY-RMM

Participants

Al Youngwerth (CEO of Rekluse & SBA’s 2012 Exporter of the Year), Brian Kim (BBCN Bank Los Angeles & SBA’s 2013 Export Lender of the Year), Andy Park (UPS Customer Technology Marketing), Dario Gomez and Jordan Valdes (SBA Office of International Trade), Antwaun Griffin (ITA Domestic Operations)

Myth vs. Fact: Myth #2: My State Isn’t Setting Up a Marketplace So The Affordable Care Act Doesn’t Affect Me

Meredith K. Olafson — Wed, 22 May 2013 05:37:32 +0000

As a business owner, it’s important to understand how the Affordable Care Act may affect your business. However, with so many misconceptions about how the Affordable Care Act works, this can be difficult.

As part of our ongoing blog series, “Myth vs. Fact: The Affordable Care Act and Small Business,” this week we’re debunking another common myth: If my business is located in a state that isn’t establishing a state-based Marketplace, the Affordable Care Act doesn’t have any impact on me.

Fact: Every state will have an Affordable Insurance Exchange, or Marketplace, beginning in January 2014. States have the option of running their own Marketplace, partnering with the U.S. Department of Health and Human Services (HHS) to partially run the Marketplace, or opting for a Marketplace run by HHS.

More than half of states have decided to run all or part of their Marketplaces in 2014. Specifically, seventeen states and the District of Columbia have chosen to establish their own Marketplace and, seven additional states have opted to partner with the federal government to establish a Marketplace. States have the opportunity to choose to run more of their Marketplaces in each year following 2014.

Will the insurance options be different in a state-based Marketplace versus a federally-facilitated Marketplace?

We don’t expect there to be a difference since the Small Business Health Options Program (SHOP), which is part of the new Marketplace, will operate in all states. Small employers in all states will be able to compare a range of insurance options for their employees based on price, benefits, quality, and other criteria that may be important to them. This is true whether a business is exploring options for coverage in a state-based Marketplace or a federally-facilitated Marketplace. Also, every health insurance plan in the new Marketplace will offer coverage of “essential health benefits” like hospitalizations, doctor services, prescription drugs, rehabilitation and mental health services, pregnancy, and newborn care. Some employers may even be eligible for tax credits for their premium contributions.

In 2014, employers will be able to choose a plan, from a variety of Marketplace options, to offer their employees. In states like California in 2014 and in all states starting in 2015, employers will be able to choose a variety of plans to offer to their employees—empowering each employee to choose the plan that best suits his or her needs.

Although we have heard some claims that the opening of the SHOP marketplaces will be delayed, this is not the case—these marketplaces will open for enrollment, as planned, on the first of October.

You can learn more about the Marketplaces by visiting www.HealthCare.gov. Business owners should continue to check back between now and October 1, 2013 (when enrollment opens) to see the status of the SHOP Marketplace and coverage options in their state.

To view all state-based Marketplace websites, visit http://www.healthcare.gov/marketplace/about/state-marketplace/index.html.

Small businesses can also sign up for email and text alerts at www.signup.healthcare.gov to stay connected with the latest information about the Marketplace in their area.

SBA Has a New Initiative to Help Veterans Access Capital and Become Entrepreneurs or Expand Existing Businesses

Rhett_Jeppson — Tue, 21 May 2013 18:04:19 +0000

Are you a veteran transitioning from active service and want to become an entrepreneur? Or perhaps you’ve been out of the service for some time and want to start a new small business or expand an existing one?

If that’s you or someone you know, the U.S. Small Business Administration (SBA) has announced the SBA Veteran Pledge Initiative, a new commitment by its top national regional and community lenders to collectively increase their lending activity to veterans by five percent per year for the next five years. This initiative has the potential to boost the already $2.1 billion per year in lending support that various SBA programs provide to new and existing vet small business owners.

I’ve heard stories that many veteran entrepreneurs face challenges in raising capital or have trouble receiving a conventional loan. This is why getting out the word about this new initiative is so important. With the support of SBA’s top 20 national lending partners, and approximately 100 additional regional and community lending partners across the United States, SBA expects to assist an additional 2,000 veterans obtain loans to start or expand small businesses by increasing lending by $475 million over the next five years.

The combined goal by the top 20 national lending partners’ will provide nearly $249 million of lending, potentially impacting nearly 800 veteran entrepreneurs. The five percent increase in lending by approximately 10 lenders in each of the 10 Regions will account for the remaining $226 million in loans and more than 1,100 additional veteran entrepreneurs assisted.

I know that if we support our veteran entrepreneurs, and provide them with the tools they need, they will have a higher chance of success. Already, veterans make up a large number of successful small business owners. Nearly one in ten of small businesses are veteran-owned. These 2.45 million veteran-owned businesses employ more than 5 million individuals. In the private sector workforce, veterans are more likely than those with no active-duty military experience to be self-employed.

I just have to echo SBA Administrator Karen Mills, speaking recently at Ft. Bragg, North Carolina, who said “Our service men and women have made incalculable contributions and sacrifices for our country, and supporting them as they pursue their dreams to start or grow their own business is one of SBA’s highest priorities. Through this partnership with national lending partners and regional lenders across the U.S. we stand ready to serve veteran entrepreneurs with loan- guarantees, entrepreneurial training, and resources that are critical tools to help them start businesses, drive the local economy and create jobs for themselves and their communities.”

So for all of you aspiring and existing entrepreneurs, if you need capital for your small business, please call one of SBA's 68 local district offices, or one of its 15 Veterans Business Outreach Centers nationwide.

SBA’s resources for veterans, and its partnership with 1,000 Small Business Development Centers and some 12,000 SCORE-Counselors to America's Small Businesses volunteers, help more than 200,000 veterans, service-disabled veterans and reservists each year.

To learn more about additional opportunities for potential and existing veteran small businesses, visit the website at www.sba.gov/veterans.

5 Fundamental Principles of Good Business Planning

Tim Berry — Tue, 21 May 2013 15:00:19 +0000

I’ve just finished a two-month period in which I’ve read more than 50 business plans as part of my role as judge of several major national business plan competitions and as managing investor of my local angel investment group. And I like reading business plans, so it wasn’t a sacrifice. But it did remind me that every so often, it’s good to go back to the five important fundamental principles of good business planning.

1. Form follows function

You’d think it would be obvious, but the business plan is supposed to be whatever it needs to be to solve the business purpose. For example, only very few business plans ever have to be documents – well formatted and carefully presented – to back up an investment pitch or loan application. While those uses exist, the vast majority of business plans need to be not pretty documents, but rather specific collections of lists, such as objectives, focus, tactics, specific activities, specific responsibilities, deadlines, performance expectations and so forth. They can exist in different formats and live on a computer, or a network, where multiple people can access, use and contribute to them.

The plan itself is what’s supposed to happen, and why, and how much of this and that and when things are supposed to happen. The document, the pitch, the elevator speech, and the summary memo aren’t the plan; they are outputs, or summaries, of the plan.

So why do we write it down? So we can review it every month, see what went right and what went wrong, and make course corrections. You can’t review the results of your plan if you didn’t write it somewhere. But don’t waste time making it pretty. Business plans are perishable, like food. Their shelf life is just a few weeks.

2. The beauty is in the results, not the plan

What makes a good plan? Not the writing, editing or formatting. Not even the ideas, the details, the strategy, the analysis or research. What distinguishes a good plan from a bad plan are the results. I’m quoting some of my books here, but the quotes apply:

A plan is worth the decisions it causes.
A good plan is nine parts execution for every one part strategy.

3. Accountability = metrics + management

In a business landscape changing rapidly because of new technology, the business planning is more needed than ever before because the traditional means of management and accountability are crumbling. It wasn’t that long ago that we could measure productivity by how warm the chair was, meaning how many hours so-and-so spent in the office. Now, with the world splintering and physical presence not so important, we measure with metrics, numbers – actual performance. And for that, we need planning to establish the expected measurement numbers and then to review the results and see what comes next. Planning is the key to accountability.

4. Planning thrives on change

Why should I plan, people ask? “Things are just going to change,” they say, “there’s no point in planning because things move too rapidly.”

The people who say that are missing the point. Planning is a process that manages change. The plan establishes expectations and the plan review analyzes results and creates revised expectations, in a step-by-step process that is something like steering, lots of small course corrections.

5. Planning is not accounting

The basic numbers included in a business plan – projections of sales, costs, expenses, profits, salaries, assets, liabilities, capital and cash flow – look like the reports we see in bookkeeping and accounting, but they are very different.

Accounting starts today and goes backward in time in ever increasing detail.

Planning, on the other hand, starts today and goes forward in time in ever increasing aggregation. We can’t project the future in detail; it’s a waste of time because the level of uncertainty is too deep. So we project a year in months and then the next two years on an annual basis, and that’s enough.

The good news is that this makes planning easier than a lot of people think. Just make sure, if you work with an accountant on planning, that he or she understands that 1) this is educated guessing; and 2) nobody is going to blame the accountant if it’s wrong.

Conclusion: All five of these basic principles are essential. And each of them makes planning easier, more practical, more important, and better managed.

Starting a High-Tech Business? You May be Eligible for Government Funding

Caron_Beesley — Mon, 20 May 2013 12:40:39 +0000

Looking to start or grow your high-tech entrepreneurial venture? Need financing to help fund research and development (R&D) efforts and realize your business potential? The U.S. federal government can help!

In fact, in 2012, nearly 5,000 small businesses received over $1.8 billion in federal government grants and contracts to help them carry out the R&D necessary to develop and bring high-tech products to market.

So how can your small business get in on the act? Here’s what you need to know:

What Can the Government Do for the High-Tech Small Business Sector?

If you are starting or already operate a high-tech startup, high-growth or high-impact firm, you may be eligible for grants and contracts that help fund R&D and product commercialization under the federal government’s Small Business Innovation Research Program (SBIR).

The risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. But, by reserving a percentage of federal R&D funds for small business, SBIR helps small businesses to compete on the same level as larger businesses. In turn, SBIR helps the federal government meet its own R&D needs in areas such as defense, healthcare, environmental protection and more. Eleven federal agencies set aside a portion of their budget each year to fund the SBIR program, with the SBA acting as the coordinating agency of the program.

Companies such as Symantec, Qualcomm and ViaSat all got a kick start from SBIR funds in their early years.

How does the SBIR Program Work?

The federal government has specific scientific and technological R&D goals and priorities, all of which are reflected in these solicitations from participating agencies and federal grants (listed at Grants.gov or on individual agency sites). You can search and explore these solicitations and grant opportunities to see where your R&D efforts may align with the government’s needs. Then follow the application process described below (see “How Do I Get Started?”). Each agency reviews proposals based on technical merit, qualifications and potential benefits to industry and society. Once agencies grant awards to small business, they embark on the R&D process.

The Awards Process

SBIR awards are structure in three phases to reflect the R&D development cycle:

Phase I: These awards are usually below $150,000 and cover a timeframe of less than 6 months. During this initial stage, the small business and sponsoring agency explore the feasibility of the project in order to get a better sense of its commercial potential and technical requirements.
Phase II: These awards are only available to small businesses that already received Phase I awards. Phase II enables a longer-term commitment. Awards can be made for up to $1 million for two years. During this period, R&D is expanded and commercial viability can be assessed.
Phase III: During this stage, innovations transition from the lab to the market, and small businesses begin the search for private sector investment. Keep in mind that the SBIR program does not fund Phase III; funding comes from private sources or other government grants.

Who is Eligible for SBIR?

The eligibility requirements for SBIR are straightforward – your business must be for-profit, have less than 500 employees, be independently owned and operated and located principally in the U.S. It must also be majority-owned (51 percent) by U.S. citizens or permanent resident aliens and the principle researcher must be an employee of the company.

As you can imagine, SBIR is a highly competitive program. Check out this interactive directory of SBIR awards for a review of past awards, proposal abstracts and more.

How Do I Get Started?

SBIR.gov includes information for applicants, but, as mentioned above, the application process starts with research:

Check the list of open solicitations at SBIR.gov. Each solicitation explains the areas of R&D that agencies are interested in.
If you have questions, contact the individual agency. Refer to this contact list.
Register your business with SBA’s Company Registry prior to submitting an application.
Get tips and training on applying to the SBIR program.
Search for grant opportunities on Grants.gov.
Submit a proposal. Typically, an SBIR Phase I proposal submission package has the following components: a business plan, executive summary, cost and technical proposal.

Tip: Grants.gov is a good place to start looking for SBIR/STTR program opportunities. Just type "SBIR" in the basic search, and off you go!

Additional Resources

Watch the Winners of the SBA and Visa Export Video Contest

ngoriel — Thu, 16 May 2013 19:24:44 +0000

Did you know that the world’s population already surpasses 7 billion?

Did you know that more than 95 percent of the world’s consumers live outside the United States?

U.S. exports of goods and services accounted for 14 percent of the national GDP in 2008 and climbed to 14 percent in 2012. These numbers show the growing role exports are playing in our nation’s economic recovery.

The surprising fact about these numbers is that only less than one percent of the 30 million plus companies in the U.S. are engaged in exporting. Can you imagine the scenario if instead of one percent it were two percent?

Clearly, the potential of exports as a major economic engine cannot be overstated, that’s why, in his 2010 State of the Union address, President Obama announced the National Export Initiative as an effort and a challenge to promote American exports. Two years later, there is evidence that those efforts are paying off: In 2012, U.S. exports hit an all-time record of $2.2 trillion and supported 9.8 million jobs.

The core mission of the U.S. Small Business Administration is to help small businesses start, grow and create jobs; the foundation of an economy built to last. Helping small business exporters succeed in the global market is a critical part of that agenda, which SBA carries out through financial assistance, training, counseling and a wide array of export-support services in collaboration with other federal agencies and partners in the private sector.

One example of such collaboration is the annual export video contest that SBA and Visa, Inc., have been co-sponsoring since 2011. It is designed to encourage small business exporters to share, via a short video, their success stories and small practices as an inspiration for other small businesses to explore exporting as a viable, profitable option.

Five video entries are selected as winners based on the following criteria:

Inspirational nature of the message for potential exporters and effectiveness in promoting exporting
Creativity and uniqueness of video concept
Value of lessons learned/communicated
Use of U.S. Government program/service
Innovative means of delivering the message
Audio and visual quality of the video

The awards include monetary incentives that range from $2,000 for fifth place to $10,000 for first place. This year’s winners were:

First place: Bassets Ice Cream of Philadelphia, with an entry titled “Scooping Up International Sales”
Second place: REKLUSE of Boise, ID, with “Exporting Success"
Third place: Premier Choice Inc, DBA Perfect Bite of San Jose, Calif., with “‘Fruits' of Our Labor”
Fourth place: MMIC of Johnsbury, Vermont, with “MMIC What We Do”
Fifth place: CID Bio-Science of Camas, Wash., with “The World and Beyond”

The awards were presented on May 16 by SBA Associate Administrator for the Office of International Trade Dario Gomez at the World Trade Day conference in Denver, where SBA Deputy Administrator Marie Johns was a keynote speaker. Also recognized was the winner of SBA 2013 Exporter of the Year award, Zeigler Bros., Inc. (ZBI), like Bassett Ice Cream, another firm from Pennsylvania. ZBI is engaged in the research, development and production of nutritional solutions for the aquaculture, pet/zoo and lab/biomedical industries.

As Johns said, these firms are prime examples that “exporting is a profitable, rewarding path to success.”

As a business owner, you may feel that you’re doing pretty well so far but, let’s face it, if you can substantially increase your bottom line and in the process help the nation’s economy, wouldn’t you say that’s an enticing proposition?

Remember the numbers: 95 percent of the world’s consumers live outside the U.S … and that’s a huge market! Getting a piece of that pie doesn’t have to be a dream deferred; it’s as close as a click or phone call away through the SBA. To “borrow” a popular slogan: “Just Do It!”

For more information about SBA programs and services to help small business exporters, visit www.sba.gov/e xporting

Innovative and Outstanding Small Businesses Receive Tibbetts Awards

ngoriel — Thu, 16 May 2013 19:06:45 +0000

NOTE: This blog is by Pravina Raghavan, Director, Innovation and Technology at SBA.

Today, I was pleased to join Roland Tibbetts, the father of the SBIR program, our SBA Administrator Karen Mills and Senator Mary Landrieu, Chair of the Senate Small Business and Entrepreneurship Committee, in recognizing eighteen small businesses and three individuals for the critical role they play in research and development and commend their success in driving innovation and creating new jobs. In addition, three past participants in SBIR who represent the very best of the 30-plus-year SBIR program were named to the third annual SBIR Hall of Fame class.

The Tibbetts Awards and Hall of Fame Awards are presented to companies and individuals from all over the United States who are beacons of promise and models of excellence in high technology.

The SBIR program has been an important resource for commercializing promising technologies and spurring innovation. A study by R&D Magazine showed that between 2002 and 2006, 25 percent of the top 100 innovation came from first that received SBIR funding.

As many of you may know, the SBIR program was reauthorized a little over a year ago. Since then, the SBA has been working very hard to make the program better for our most innovative firms. We have updated the eligibility, size rules and policy directives to make the program more effective and streamlined. We’re working with our federal partners on shortening timelines from solicitation to award so that firms can get money faster. We are improving data collection and instituting robust performance benchmarks around commercialization. We will continue to put in place a SBIR infrastructure that will help turn great ideas into successful, thriving businesses.

At SBA, we believe that the SBIR program is a cornerstone of our mission as well an important factor in the President’s high growth and jobs agenda. According to the Department of Commerce, innovation has been responsible for approximately two-thirds of our country’s economic growth since World War II.

If we are going to realize our full economic potential, we need more people across the country to start the types of businesses that make our economy more competitive and more innovative.

I encourage you to take a moment and read through some of our winner’s profiles at challenge.gov. They are great companies and are transforming their industries. Many have graduated from the SBIR program but continue to show strong economic growth, business investment, broader social and economic impact and technical innovation.

This is what the SBIR program is all about and why we’ve come together to celebrate at the Tibbetts and Hall of Fame Awards.

Companies

Accuray, Inc. -- Sunnyvale, CA; Aurora Flight Sciences Corporation – Cambridge, MA; Beacon Interactive Systems, LLC – Cambridge, MA; CPSI Biotech – Owego, NY; Design Interactive, Inc. – Oviedo, FL; Ecovative Design, LLC – Green Island, NY; GS Engineering, Inc. – Houghton, MI; Harmonia Holdings Group, LLC – Blacksburg, VA; Institute of Disabilities Research and Training (IDRT), Inc. – Wheaton, MD; Kutta Radios, Inc. – Phoenix, AZ; MBF Bioscience – Williston, VT; Modular Robotics – Boulder, CO; Ocean Renewable Power Company, LLC – Portland, ME; Orono Spectral Solutions, Inc. – Bangor, ME; Protochips, Inc. – Raleigh, NC; Syntonics, LLC – Columbia, MD; Tier1 Performance Solutions, LLC – Covington, KY; Torrey Hills Technologies, LLC – San Diego, CA

Individuals

Richard Flake, Air Force Research Laboratory (AFRL/XPP) – Wright-Patterson AFB, OH; Joe Hennessey, Ph.D., NSF SBIR/STTR Senior Advisor – Arlington, VA; Tizoc Loza, Northrop Grumman Corporation – Falls Church, VA

Hall of Fame

Aerovironment, Inc. – Monrovia, CA; Autonomous Technologies Corporation – Orlando, FL; Biogen-Idec – Weston, MA