January 7, 2009 By Scott Shane
The year 2009 will be a difficult one for small business finance. We’re in the midst of a recession that looks to rival, if not beat, the recession of 1980-1982 as the worst since the Great Depression. ...
Here are my top five trends for small business finance for 2009:
1. The amount of capital provided to small and start-up companies will continue to shrink
... Until the problems in the credit markets get resolved and the economy starts to grow again, it’s very unlikely that we will see a reversal of this trend. ...
2. Investors in start-up companies will continue to face a poor market for exiting from their investments
The IPO market is in a deep slump and there is little indication that it will emerge from that downturn in 2009. ... The market for acquisitions looks almost as bad. ... Until the economy gets moving again, the acquisitions market should stay in the doldrums.
3. Methods for internally financing companies will grow in popularity
... For instance, companies that help people tap their 401Ks to finance their businesses, and consultants that advise entrepreneurs on ways to bootstrap their growth, will grow in popularity.
4. Government officials won’t pay much attention to entrepreneurial finance
... Virtually of all the ideas for changes to entrepreneurial finance that had been floated previously – such as cutting capital gains taxes on start-ups and funding new high tech companies – will be driven off the agenda by a focus on fixing the problems faced by big businesses.
5. Attitudes toward financing start-ups and small businesses will change
During 2009, a new realism about entrepreneurial finance will continue to emerge. ... The shift toward greater realism about entrepreneurial finance will accelerate during 2009, bringing us back from the inflated views of recent years.
* * * * *
About the Author: Scott Shane is A. Malachi Mixon III, Professor of Entrepreneurial Studies at Case Western Reserve University. He is the author of nine books, including Fool’s Gold: The Truth Behind Angel Investing in America; Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By; Finding Fertile Ground: Identifying Extraordinary Opportunities for New Ventures; Technology Strategy for Managers and Entrepreneurs; and From Ice Cream to the Internet: Using Franchising to Drive the Growth and Profits of Your Company.
Wednesday, January 7, 2009
Top 5 Trends for Small Business Finance in 2009
Top 10 New Year's Resolutions for Entrepreneurs in 2009
Written by Pete Kennedy on Wednesday, January 7, 2009
10) Keep Launching, Innovating and Growing
2008 was a tumultuous year, and most observers agree that we're now in one of the worst recessions in decades.
... Don't let all the negative news stop you from moving forward with your entrepreneurial initiatives.
History has shown that a downturn can be a great time to start a new venture. General Electric traces its roots to the Panic of 1873. William Hewlett and David Packard founded HP during the Great Depression. Microsoft launched during the recession of the early 1980s. Disney, Oracle, and Cisco, and countless others took the leap during difficult economic times, and reaped tremendous rewards for their efforts.
One reason that recessions provide opportunities for entrepreneurial companies is because established firms decide to cut back on innovation and growth plans. ... The key is to be running and growing your business successfully before the market comes back -- so that when it does, you have gained market share and are poised for explosive growth. ...
For more thoughts on launching a business during a recession, read entrepreneur and investor Andy Liu's excellent entry The Secret to Starting a Successful Company.
9) Maximize Your Time and Resources
Running and growing a successful business requires that numerous jobs be performed at once, and well. ...
Learn how and when to delegate or outsource certain tasks and responsibilities.
8) Build and Improve Systems and Processes
... As Michael Gerber points out in The E-Myth Revisited, it’s critical that entrepreneurs build businesses, rather building an ever-increasingly stressful and taxing J-O-B.
Especially if you're interested in selling your business, you want to be able to walk away from the business and have it continue to run.
7) Build and Nurture an In-House Email List
...One way to improve the efficacy of your website is to offer an email newsletter via an online email submission form.
Building and maintaining an email list could be one of the best ROI decisions you make in 2009. Constant Contact and AWeber are two recommended resources for email communications. And, if you run a blog, you can set up blog-to-email newsletters using services like FeedBlitz.
6) Participate in Online Conversations
If you haven't already done so, start a blog, create an account at Twitter, sign up for Facebook, join LinkedIn... Issue press releases using PRWeb. For an excellent tutorial in online marketing and PR, I recommend reading David Meerman Scott's The New Rules of Marketing and PR, as well as his blog Web Ink Now.
5) Meet More People (Out in the "Real" Offline World) Join new networking groups to establish relationships and potential partnerships with people and firms in your area. One great way to jumpstart your offline networking is to leverage MeetUp.com. MeetUp.com has thousands of business networking groups. If you don't see a group in your niche, you can even start your own.
4) Get a Life (Outside of Work) It's critical that you take breaks from your business to enjoy life. Make a resolution to enjoy physical as well as mental vacations from your business every once in a while. ... You'll gain relief the stresses of growing your business, and once you return, you'll be reinvigorated with a new perspective on your challenges and opportunities.
3) If It's Not Working, Ditch It
... If you tried something in 2008 and it wasn't working, you might want to admit that and move on. Focus your energy and resources towards those priorities that will deliver the greatest return on investment (both in terms of time and money).
2) Learn Something New, Again and Again
Make a commitment to continual education. ... An easy way to incorporate learning into your every day routine is to listen to interviews, audiobooks and podcasts. Summary.com is a great, convenient service for integrating business education into a busy schedule.
1) Continually Update Your Business Plan and “To Do” Lists
Update your business plan weekly, monthly and quarterly, depending on what’s changing in your industry and what you’ve accomplished in your business.
Updating your plan can be a critical factor in both your ability to raise capital and your ability to properly execute on market opportunities. The sections that typically require periodic updates include the milestones, competition, management team and financials sections.
To increase your personal and corporate productivity, take advantage of tools like Basecamp which allow you to track tasks and milestones online in a collaborative "wiki" environment.
For a great read on productivity, we recommend The Ultimate Sales Machine by Chet Holmes. As Chet recommends, focus on the daily tasks that are most critical to your growth, and keep the daily “to do” list brief (no more than 6 items).
That's it! I hope you found this list to be helpful for growing your business. Here's wishing you a prosperous 2009!
What is your New Year's resolution?
Employees resolve to have better work-life balance
Ninety-six percent of full-time, U.S. workers say it will be equally or more important to find a better work-life balance in 2009, according to a new survey from FedEx Office. ...
To achieve their goal of better balance, 49% of full-time U.S. workers plan to take advantage of all their vacation time, while 41% plan to leave work at a reasonable hour, and 36% plan to take lunch breaks on a consistent basis. Another 29% plan to avoid doing work at home or during off-hours, while 24% will consider starting their work day earlier in the morning, and 21% plan to take advantage of flex-time options, the survey found.
Despite the recession and rising unemployment rate, 11% of full-time U.S. workers plan to find a better job, change jobs or change work locations as a way to find better work-life balance in 2009. --Leah Carlson Shepherd
17 Tools to Help You Survive in 2009
Thursday, January 01, 2009 - posted by hellomynameisscott at 10:30 AM
“A true Ninja uses his surroundings to survive.” That’s basic Ninja code.
MY QUESTION IS: What are you using to help your business survive? What are you using to help your creativity survive? And what are you using to help your SELF survive?
... Today, I want to share a list of seventeen things that I’m currently using to help my business, my creativity and my SELF survive this horrible economy.
As you peruse this list, I challenge you to think about what tools YOU use, what tools you COULD be using, and what tools need a good sharpening in 2009.
1. Use baitless hooks. Edison did. ... He was so focused on the fishing process that he could care less if he reeled in a twenty pounder. This is the way creativity should be: Present. In the moment. ... When the stakes are lower, the results are higher.Are you too outcome-focused?
2. Use concrete illustrations. Not vague platitudes. ... Try using experiences. Truths. Stuff that actually happened to you. Concreteness sells. How specific are YOUR examples?
3. Use cross-industrial processes. ... Become an expert on certain processes and philosophies and practices that apply to anyone, anytime, anywhere. ... But having a niche TOPIC vs. a nice MARKET will open up your client base to endless possibilities. What are you known for knowing?
4. Use every challenge. As an opportunity for growth. ... As a way to grow stronger, smarter, cooler, funnier and wiser. ... What are you turning your problems into?
5. Use generative language. ... That means throwing in a question here and there, and then shutting up. ... Does your language have more periods than question marks?
6. Use informational follow-up. “Have you gotten a chance to check out my proposal?” ... Terrible. No value. Next time try, “I used your company as an example in my blog post today! Check it out here…” Are you following up with value or vomit?
7. Use inner chaos. ... Use your creativity and passion and love and enthusiasm to transform inner wackiness into outer awesomeness. ... What works for YOU?
8. Use judgment-free language. ...[When] you use words, you label. When you label, you judge. When you judge, you react. When you react, you’re unconscious. And being unconscious is unhealthy. Are you “should-ing” all over people?
9. Use momentary accidents. ... Accident, schmaccident. It’s a lesson. An opportunity. A creative breakthrough waiting to happen. What is another use for this failure?
10. Use real language. “Real” meaning, “fifth-graders could understand it.” Sure, using ... fancy verbiage might make you sound smart. But it also might make other people feel dumb. It also might complicate your message. ... How many people have no idea what the hell you’re talking about?
11. Use rules mindfully. The Dali Lama once said, “Learn the rules so you know how to break them properly.” ... How many rules did you break yesterday?
12. Use silence strategically. ... A properly placed pause is one of the most powerful tools in interpersonal communication. Are you shutting up enough?
13. Use strength quietly. Like Tony Dungee from the Indianapolis Colts. Like Rosa Parks from the Civil Rights Movement. Both wrote books called, “Quiet Strength.” Both know that a strong falcon hides its claws. Both know that powerful people don’t scream. Both know that the loudest one in the room is the weakest one in the room. Are you a falcon or a lion?
14. Use today’s opportunities. ... Opportunity knocks all day, all the time, all over the neighborhood. Your challenge is to listen, answer, and then leverage them whenever they show up. How are you killing two stones with one bird?
15. Use visible reminders. ... Any new behavior you want to change, any new goal you seek to accomplish, make sure you can SEE the reminder. Daily. How are you punching yourself in the face?
16. Use your life. ... Don’t wait until you’re dead to leave a legacy; ... Because if you LIVE your legacy every day, LEAVING a legacy will naturally happen. But only if you validate your existence on a daily basis. How are you using your life?
17. Use your words. ... Your language is one the most powerful tools in your leadership arsenal. Perfect it daily. What did you write today?
LET ME ASK YA THIS… What tools are you using to survive 2009? LET ME SUGGEST THIS... For the list called, "12 Dangerous Doozies to Avoid in 2009," send an email to me, and I'll send you the list for free! * * * * Scott Ginsberg That Guy with the Nametag Author, Speaker, Coach, Entrepreneur scott@hellomynameisscott.com
Never the same speech twice. Always about approachability. Watch The Nametag Guy in action here!
Tuesday, January 6, 2009
Not your parents' wellness program
Employers increasingly roping in dependents to embrace wellness
By Lydell C. Bridgeford
December 1, 2008
...[To] drive down health care costs, employer-sponsored wellness programs must zero in on dependents covered under the health plan. It's a tough challenge, given that employers typically don't have direct access to covered dependents. ...
Strategic incentives
"That fact that dependents are not often onsite is a hurdle in getting dependents to participate in wellness programs," explains Bob Soroosh, director of benefit administration at Affinia Group, Inc., an Illinois-based company that produces highway replacement products.
One way to overcome that hurdle is by offering a paper version of a health assessment to employees and dependents that can be mailed to their home, Soroosh says. "We also give dependents the option to complete their biometric screenings during one of our onsite health screenings or at their doctor's office."...
In 2006, [Affinia] started offering employees a $1,000 reduction in their annual premium contribution if they agreed to participate in a health prevention program.
The company provides additional incentives for employees or dependents who complete specific wellness programs.
"That means an employee can receive additional contributions to their health reimbursement account when they, or one of their dependents, complete one of these programs," Soroosh notes. ...
Cash and gift cards are always good, says David Jacoby, vice president of business development at WellCall, a San Francisco-based wellness solution provider.
Employers also may want to consider knocking additional dollars off an employee's health insurance premium contribution if his or her dependents sign up for a disease management program or wellness initiative.
Holding health fairs during the weekends or after work also allows employers to get that one-on-one contact with dependents. Such events can result in dependents taking health risk assessments and biometrics screenings.
Factoring in childhood obesity
Employers that focus on dependent wellness mainly set their sights on dependent children who are over the age of 18, and spouses and domestic partners, says Melissa Vaughn, a strategic account manager at StayWell Health Management, a health management program provider.
However, experts agree that getting young kids directly involved in workplace health management programs is tough but necessary. They stress that employers' wellness initiatives should always include a component on childhood health and fitness.
"You want to coach the parent about healthy behaviors kids ought to be engaged in. The message might get across much better if you are coaching the parent to provide that information to the kid," says Jacoby.
Yet be mindful that kids imitate their parents, says Kay Curling, vice president of HR, compensation, benefits and HRIS at SI International, a Va.-based information technology services company.
"If a parent is coming home from work and only sits on a couch with a remote control watching television and eating dinner, then what do we expect our kids to do?"...
The prevalence of childhood obesity has reached epidemic proportions in the United States and is a major public health issue. Consequently, it's affecting corporate health care costs and productivity.
"Yet, you just can't look at childhood obesity in terms of health care costs. Employers also have to examine it within the context of presenteeism," Curling asserts. It's common for parents to be preoccupied at work with thoughts of their children, even under normal circumstances.
"It's a much larger issue than just looking at what kind of dependent wellness program you have. It's about making sure that both your employee assistance program and your health care plan are focused on encouraging childhood health," she says.
Tips for employers
Some health plans provide 100% coverage for preventive care for children up to age 6, something that Curling believes is "short-sighted" in general.
Health insurance coverage for dependents should focus on preventive care for medical conditions that can surface during early and late adolescence, she adds.
Companies that have a successful track record with their wellness and health programs are probably in a better position to embark on a strategic approach to dependent wellness, says Brian Passon, wellness consultant and director at Corporate Fitness and Health, a company that focuses on wellness in the workplace. ...
"You can't demand your employees to change their lifestyles at home if you don't have a culture of good health at the workplace," Passon concludes.
Best practices to engage dependents in wellness programs
Michael Staufacker, director of program development for StayWell Health Management, offers advice for employers in bringing dependents into the wellness fold:
- Offer an appropriate incentive. ... Tie incentives to desired behaviors, such as physical activity, rather than outcomes, like achieving a goal weight. ...
- Communicate, communicate, communicate. Don't forget that the average person receives a message seven times before they remember it. ...
- Offer multiple program options. People learn in different ways. ... By offering multiple program modalities, you will appeal to a broader range of people. ...
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