First, let’s talk about the importance of small business to the nation. I’ve heard you speak at several events in the past year, and you seem to be adamant that without the contributions of small businesses, our economy would be in even worse shape.

Small businesses cannot be more important to the nation. President Obama has been very clear that he believes small businesses are the foundation of the economy. Small business owners are the job creators — 67 percent of new private sector jobs over the last 20 years were created by small businesses. And 50 percent of people in the workforce today are employed by a small business. assist you with preparation of a plan and access to research information.”

We’re here at Loyola Marymount University in Los Angeles for the Urban Economic Forum, which is a series of events the SBA is putting on all across the country. Can you tell me more about these events?

The Urban Economic Forum is a multi-city series [taking place in New York City; Birmingham, Alabama; Los Angeles; Columbus, Ohio; Detroit; Chicago; Kansas City; Las Vegas; and Phoenix] designed to help urban business owners create an economy built to last. The purpose is to create a bridge connecting the SBA and local communities, and to raise awareness of the SBA among the people in these communities. Through the Forums, we’re connecting entrepreneurs to local resources, and connecting entrepreneurs to one another. We want to create stronger, deeper relationships across the board. Mentoring is an important part of that. It’s exciting to see young people coming to events like this and being so focused on learning. We’re helping create the next generation of entrepreneurs, and we’re tapping into the energy these young people have. It’s heartening to see young people doing such incredible things. Theirs is a generation of digital kids; they’re comfortable with the [technology] infrastructure, and at ease in digital platforms.

You just talked about mentoring. How important do you think is it to find a mentor and maintain that relationship?

The importance of mentoring cannot be measured. When starting a business, most [entrepreneurs] think about “What should I do to get money?” Don’t think about the money first. Your first thought should be “Where can I find a good mentor?” The answer, and an important first step, is to start with the SBA and our resource partners—the Small Business Development Centers, SCORE and the Women’s Business Centers. Mentoring is not just about teaching. It’s about showing [entrepreneurs] the tools that will boost their business efforts and teaching them how crucial it is to look at the big picture first, before they go granular.

The Forum events are geared toward helping minority entrepreneurs. You spoke today about how important minority and urban business owners are as we emerge from the recession, so I know that’s an important issue to you.

Small businesses are leading the way out of the recession, and minority-owned businesses are among the fastest-growing businesses in the country. But we [at the SBA] noticed that though a recovery was underway, it was uneven. We realized we needed to focus on underserved markets like urban communities, rural communities, veterans and minority-owned businesses, which include the African American community, the Hispanic community, woman-owned small businesses and young entrepreneurs.

In addition to mentoring, what do these business owners need to help them succeed? I was at an event last year where you were speaking, and you mentioned the “three C’s.” Can you explain the “three C’s?”

The “three C’s” are vital to a small business owner’s success. They are access to capital, helping businesses learn more about federal government contracting, and access to the counseling and technical assistance that, as we talked about earlier, businesses need in order to be successful.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit her blog, SmallBizDaily.com, to get the scoop on business trends and sign up for free TrendCast reports.

1. Consult a professional. The CROWDFUND Act seeks to lower the cost of raising capital by exempting companies raising $1 million or less from registering their offering with the SEC. But although you are exempt from registration, you’re not exempt from regulation. Always consult with a professional investment consultant or attorney versed in securities law before embarking on any crowdfunding venture.

2. Understand the two types of crowdfunding. Previously, crowdfunding sites could be used only to get donations (or pledges). The CROWDFUND Act expands the options by allowing entrepreneurs to solicit investments of up to $1 million annually via crowdfunding websites. Unlike donors, these investors actually own a piece of the company and can realize a return on their investment if the company succeeds.

3. Don’t jump the gun. The process for crowdfunding donations hasn’t changed, but the SEC regulations regarding crowdfunding investments and nonaccredited investors won’t be set until January 2013. You will be able to crowdfund from accredited investors (those whose net worth, excluding the value of their primary residence, is over $1 million) beginning July 4, 2012, but you will have to wait until after January 2013 to solicit nonaccredited investors.

4. Research your options. Make sure the crowdfunding site you choose meets the requirements of the CROWDFUND Act. Crowdfunding investments must be solicited through sites that are registered with the SEC, conduct background checks on companies seeking investments, and screen investors to confirm that they understand the risks involved.

5. Beware of scams. Interest in crowdfunding is high, and the CROWDFUND Act is not yet implemented, which means the market is ripe for scam artists. Be very cautious about anyone claiming they can help you raise capital online for a fee.

6. Create a compelling pitch. If you’re crowdfunding donations, your fund-raising pitch should focus on emotions and get donors excited about your business, your product or service and your entrepreneurial passion. If you’re crowdfunding investments, your approach should focus on the bottom line and the potential for investors to make money.

7. Offer rewards. For investors, the reward is the profit they make from your company, but for donors, you’ll need to offer rewards such as product samples, T-shirts or promotional items, or discounts. Develop different rewards for donors depending on how much they contribute.

8. Spread the word using social media, marketing and PR. Don’t limit your search for funds to the people who frequent the crowdfunding site you choose. Create an integrated marketing campaign that tells everyone you are looking for financing—and makes it simple for them to tell others.

9. Create a video. Make your company stand out from the pack by creating compelling pitch videos—one for donors and one for investors. Post them on your website, the crowdfunding site and YouTube—and increase your chances of going viral.

10. Share information. If you crowdfund investments, the SEC regulates how you communicate with investors. Even if you crowdfund donations, you’ll want to regularly update donors on how your company is doing, the progress of your product or service, and any other news that makes them feel part of your success.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit her website SmallBizDaily.com to get the scoop on business trends and sign up for free TrendCast reports.

Small Business Development Center hosted by El Camino College
Dolce Vita Restaurant • Redondo Beach, CA

Before:
When Melanie Strauss moved from Frankfurt, Germany, to the U.S. with her husband, Klaus Jaeger, she missed the European food and cheeses and German cakes of her native country. Unable to find a nearby location that sold them, she decided to launch her own restaurant and delicatessen to do so. Although Strauss had previously owned a high-end retail clothing business in Germany, she had no experience running a business in the United States, so she turned to the Small Business Development Center hosted by El Camino College for advice.

Best Advice:
At the SBDC, Strauss attended classes on choosing a company structure, creating a business plan, marketing on a budget, accounting, human resources and running a restaurant. “I took almost every class the SBDC offered!” says Strauss. She also met with SBDC Business Advisors one-on-one for advice on lease negotiations and employee regulations.

Lessons Learned:

• Understand the rules. “I knew how to open a business, but in a new country, regulations are totally different,” Strauss explains. Business Advisor Dr. Barbara A. Sweet counseled Strauss on labor regulations, hiring practices, due diligence, appropriate interview questions, management practices and ways to motivate and retain employees.
• Spread the word. E-mail is key to Strauss’ marketing strategy. She sends regular announcements to customers on her mailing list. The resulting word-of-mouth has been a huge factor in bringing in new business.
• Be willing to learn. Strauss took an SBDC class in running a restaurant, but she didn’t stop there. She returned to Germany to work in a delicatessen so she could learn more about artisanal cheeses and baking German cakes; she also took professional cooking and baking courses in Los Angeles.

After:

Dolce Vita opened for business in June 2008 in the Riviera Village area of Redondo Beach. The combination delicatessen and bistro generates additional revenues by catering to businesses, travel agencies and international airlines.

Quickly earning rave reviews for menu items including sandwiches, salads, fresh desserts and charcuterie, Dolce Vita was voted one of the top 10 new restaurants in the South Bay. It has received kudos for its decadent desserts and has been featured in several local publications. The restaurant has also enjoyed steady business despite an economic downturn — thanks, in part, to the business basics Strauss learned from the SBDC. “I thought the SBDC training was such a great thing,” she says. “[There’s] nothing to lose, and [you] can get as much information as possible.”

With YouTube now the second-largest search engine, 70 percent of Internet users regularly watching online video, and Web video viewing projected to increase at a rate of 78 percent this year, it’s clear that online video has the power to attract a lot of attention to your business.

What are the benefits of using online video to market your business?
“Including video as part of your website strategy can generate more business by improving your site’s search engine optimization, increasing web traffic and driving lead generation programs,” says SBDC Business Advisor Antonio Ruiz. “Any company can use videos; the challenge is how to engage the audience in an entertaining and informative way.”

What is the first step in creating videos for your business?
“Begin with the script; that will determine your technical needs,” says Ruiz. “The simpler, the better.” Don’t think you have to accomplish everything in one video. “Instead of one 20-minute video, think 10, two-minute videos you can post over a period of time,” says Ruiz. “You can shoot it all in one session, but edit them into smaller segments.” Instructional videos and customer testimonials are easiest to produce, he says; avoid lengthy dramatic or comedic videos that involve actors, public places or copyrighted music.

What kind of equipment do small business owners need to create videos, edit them and post them?
“You’d be surprised what you can do with simple technology,” says Ruiz, adding that most of today’s home video cameras, digital cameras and even computer and smartphone cameras record high-quality video and have built-in microphones (if not, you can purchase a good handheld microphone for under $25). Editing is simple, too: Today’s PCs come with Microsoft Moviemaker software installed, and Macs come with iMovie. You can also edit videos directly on YouTube, which has online tutorials to help. Posting is as simple as accessing a broadband Internet connection.

What are some low-cost options for getting outside help?
“If you keep it simple, you’d be surprised what you can produce yourself,” says Ruiz, who feels most small business owners don’t need outside assistance. He recommends searching online for videos that provide step-by-step instructions, and says ReelSEO (http://www.reelseo.com), Mashable (http://mashable.com), About.com: Desktop Videos (http://desktopvideo.about.com), YouTube.com and Vimeo.com are good resources.

How much should a small business owner expect to spend on a video marketing campaign?
If you produce the videos yourself using equipment you already own, your costs will be minimal or none, says Ruiz. At most, if you have to buy a camera, a computer and a broadband Internet connection, you’ll have one-time costs of $2,000 to $3,000.

What are some do’s and don’ts for creating effective videos?
“Before you worry about technical equipment, lighting or audio, think about the message,” Ruiz advises. “The message is the story you want to tell about yourself, your business, and your products or services.” Whether it’s an instructional/training video or testimonial, the key is to keep it simple and direct. “The videos that go viral are the human ones—funny, cute and from the heart,” says Ruiz, who recommends studying other businesses’ videos to learn what works and what doesn’t.

Where should small business owners post their videos?
Ruiz cautions against storing videos on your website host’s server. “Video takes up a lot of storage space, which is why so many people upload to sites like YouTube and Vimeo,” he explains. Link to your video on your website and on social media platforms like Facebook and Twitter.

How can small business owners drive awareness of their videos?
Ruiz recommends a diverse strategy that includes the tags you enter in the description of your video when you upload it (“These are the one-word descriptions you see under the video on YouTube, for example”), your social media networks, your email newsletter, your blog and search engine optimization on your website.

Are there certain elements that should always be included in a video?
“The most important element is the call to action,” says Ruiz. “At the end of the video, what do you want the viewer to do?” That could be exploring your website, watching more videos, contacting you for more information or visiting your business. To encourage action, Ruiz says, you should verbally say the name, location and hours of your business, the specific services or products you sell, and contact information including your website address. “Reinforce the verbal mentions with titles—text on the screen or at the bottom of the screen.”

What common mistakes do small business owners make when marketing with video?
Entrepreneurs frequently try to cram everything about their business into one video, says Ruiz. “Instead, think of the video as a trailer at the movies. The point is to grab attention and drive curiosity to find out more about your business.”

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast.com to get the scoop on business trends and sign up for free TrendCast reports.

1. Give a speech. Find organizations that your target customers belong to—whether the local marathon runners’ training group, PTA or Rotary club—and offer to speak at their meetings.Create a relevant handout to leave behind, and bring business cards and brochures, too.

2. Start a blog. Adding a blog to your business website is a smart tactic for companies that provide information and expertise, such as accounting or consulting firms. Blog about industry news, timely advice for your customers, or new developments in your business.

3. Comment on other blogs. If you don’t have the time or skill to blog, build your reputation by commenting on your industry’s leading blogs. Make sure your comments are thoughtful and add to the conversation. Don’t be overly promotional, but do include your name and business name.

4. Use Twitter. Use Twitter not just to promote your business, but also to share interesting links and retweet useful information. Focus on quality, not quantity. By consistently sharing good information, you’ll build a reputation as a knowledgeable source.

5. Get LinkedIn. If you own a business-to-business company, LinkedIn Groups and Answers are great ways to share your expertise. Join Groups related to your industry and participate in discussions. Look for LinkedIn Questions related to your business and answer them.

6. Write articles. Blogs and online publications are influential, but print media still carries more weight with most people. Contact trade publications and local newspapers and ask if you can contribute articles related to your industry, or even write a regular column.

7. Become a trusted source. Being quoted in print or online cements your reputation as an expert. Seek out journalists who cover your industry, then make yourself a resource by commenting on their articles and sending them information related to their “beat”…and your business.

8. Lead the way. To become an industry expert, you’ve got to be active in your industry. But don’t just attend industry events and conferences—take a leadership role by offering to head committees, speak at events or develop programs.

9. Network. Be an active networker, both online and offline. Focus not on what you can gain, but on how you can help others by connecting them and sharing valuable information. People will come to view you as a reliable and trustworthy resource.

10. Get involved in your community. Keep a high profile in your community by participating in local events. For instance, if you own a health club, you could sponsor a fitness fair or get a booth. The more active you are in your community, the more business will come your way.

 

Rieva Lesonsky is founder CEO and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com to sign up for her free TrendCast reports.

1. Create a personal Google+ profile. Google+ offers business profiles too, but you need a personal profile first. Signing up is free. Fill in your personal page with as much information as you can about yourself, your business and what you do.
2. Create a Google+ business page. Provide as much information as you can about your business. Consider what potential customers might want to know, including your business address, directions, hours and phone number, photos of your location or product photos.
3. Create circles. Google+ allows you to categorize different people into “circles” and specify which information you share with a particular circle. You can create circles for clients, potential clients, employees, business associates and more; you can also include people in more than one circle.
4. Go public. In addition to posting content to specific circles, you can also post it to the public. This means it will show up when someone does a Google search. Public posts are a great way to expand your audience by exposing your business to people who may never have heard of you.
5. Be engaging. Before posting anything to Google+, consider how it will benefit your audience. Content that gets attention usually includes questions, calls to action, photos or videos, or thought-provoking comments. Try to limit directly promotional posts about your business to about 10 or 20 percent of what you post.
6. Interact. The more you interact on Google+, the faster you build connections and increase your audience. In addition to posting your own content, share and comment on others’ posts (you’ll see them in your Stream). When you share something, credit the originator and add your own thoughts to spark further conversation.
7. Add video. Since Google+ is integrated with YouTube (which is owned by Google), putting video on Google+ can attract more followers. Post how-to videos explaining how to use your product or service, or interview someone on your team about a current industry trend.
8. Promote it. Use the Google+ logo and/or the +1 icon on your website, signage and marketing materials to help people find you on Google+. Download Google+ logos and icons and learn how to use them at http://www.google.com/+/business/brand-guidelines.html.
9. Measure results. The free Google Analytics tool can help you measure engagement on your Google+ page. See who is following your business, what information they like best and what they’re sharing.
10. Use third-party tools. Looking for tools to help integrate your Google+ account into the rest of your social media plan? Currently, only a few tools exist, but more are being developed all the time. Visit http://www.google.com/+/business/3rdpartytools.html to find third-party tools and get updates.

Rieva Lesonsky is founder CEO and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com to sign up for her free TrendCast reports.

1. Understand their expectations. Know what Millennial employees hope to gain from working for you. Chances are, Millennials will make that clear during the job interview—but if they don’t, ask them.
2. Challenge them. Millennials want to make a difference in their jobs from the get-go. Encourage that enthusiasm by assigning them challenging projects from the start, and adding more responsibility as they learn.
3. Define tasks and goals. It may seem contradictory, but while Millennials enjoy independence, they also grew up with “helicopter parents,” teachers and coaches micromanaging their lives. Be crystal clear when assigning tasks. Set incremental deadlines and check in regularly to review progress.
4. Provide ongoing feedback. An annual performance review isn’t enough for Millennials, who want to hear how they’re doing—both good and bad—on an ongoing basis. This may be a more hands-on approach than you’re used to with older employees, but it’s essential for Millennials to thrive.
5. Offer flexibility. Millennials expect work-life balance, and view working remotely and flexible hours as essentials, not extras. Bonus: Offering these options not only attracts and retains Millennials, but pleases older employees, too.
6. Provide continuing education. Millennials want to improve at their jobs. Sign them up for webinars or seminars in their areas of interest; send them to conferences and events to learn from more experienced peers; or simply provide on-the-job training and education.
7. Match them with a mentor. Millennials welcome mentorships, and pairing a Millennial employee with an older, more experienced worker benefits both of them. It also cements bonds, which can help eliminate generational misunderstandings at work.
8. Tailor benefits and rewards to their interests. Millennials may be less interested in benefits like dental insurance and more interested in perks like continuing education. In a 2011 PriceWaterhouse Coopers survey, the majority of Millennials said they would like to customize their benefits.
9. Let them BYOD. (That means “bring your own device.”) Tech-savvy Millennials often prefer to use their own laptops, cellphones or tablets for work instead of a company-issued device. This can save you money; just make sure devices are secure and sensitive information isn’t compromised.
10. Use their social skills. In the 2011 Cisco Connected World Technology Report, 56 percent of Millennials said they wouldn’t work for a company that banned social media in the workplace—or they’d sneak around the policy. Instead of shutting down Facebook or Twitter on the job, enlist Millennials’ social media expertise to enhance your company’s online presence.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

1. Tighten your belt. Running lean and mean is essential for small businesses hoping to stay competitive. Look for ways to trim costs whenever you can. Eliminate unnecessary expenses like redundant subscriptions, phone lines or memberships. Review agreements with key vendors annually.

 

2. Adjust prices. Don’t let rising costs for inventory, materials or supplies take you by surprise. Monitor trends and be ready to increase prices as needed to stay profitable.

 

3. Find new customers. In tough economic times, keeping a steady supply of new prospects in your sales pipeline is more important than ever. Don’t skimp on marketing activities that help your business generate leads. Consider expanding to new markets or targeting a different subset of customers.

 

4. Get creative with hiring. You probably need more manpower, but hiring full-time employees is not the only option. Look for lower-cost solutions that also offer flexibility, such as retaining temporary employees, part-time workers or interns, or outsourcing to independent contractors.

 

5. Maximize productivity. Make sure your staff has the tools they need to be productive. Create systems and processes that streamline operations, and provide training so employees know how to use them.

 

6. Harness technology. Technology tools like tablet computers and smartphones for your team can quickly pay for themselves in increased productivity. Assess what IT changes make sense for your business. A small outlay to upgrade technology is worth the cost if it helps you stay ahead of the competition.

 

7. Use social media. Social media is a buzzword for a reason. As more and more Americans join social networking sites, social media is influencing everything from the stores and restaurants customers visit to the services they use and the products they buy. If you haven’t yet explored this marketing tool, make 2012 the year you do so.

 

8. Monitor your cash flow. Slow-paying customers can put your business at risk. Get accounting software and learn how to use it. Then track your cash flow on a weekly, even daily, basis, and take action to speed income and delay outflows.

 

9. Keep up with trends. Now more than ever, you need to know the trends brewing in your city, your industry and your market. The needs and wants of both consumers and business-to-business customers are changing rapidly, and if you don’t keep pace, you’ll get left behind.

 

10. Think strategically. To succeed in business today, you must stay one step ahead of the game. Consider how the trends you’re monitoring will affect your business and your competitors in the years to come. Develop a plan for dealing with threats and taking advantage of opportunities.

 

10 Tips for Thriving in an Uncertain Economy – January 2012

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

1. Ask for referrals. Many entrepreneurs fail to benefit from referrals because they’re simply too shy to ask. Most satisfied customers are happy to give you referrals–but they won’t think of it if you don’t ask them.

2. Know the right time to ask. Aim to gather referrals at the completion of a project or upon delivery of a product. The goal is to approach the customer when they are happy with the purchase and the transaction is still fresh in their minds.

3. Create a system. Set up a procedure for capturing referrals. This can vary depending on your industry. A business-to-business company might ask for referrals during a post-sale phone call or email. A retailer could enclose a card with each purchase that customers can fill out to refer a friend.

4. Offer a reward. Encourage customers to give referrals by offering incentives, such as a discount on their next purchase, a free month of service or a small gift. Making rewards contingent on whether the referral makes a purchase can encourage higher-quality referrals who are more likely to buy.

5. Build trust. Customers don’t want their friends bombarded with marketing messages. Make them comfortable providing referrals by explaining how you will use the contact information they provide. Will you send direct mail? Will you contact the person by phone?

6. Follow up in a timely fashion. If you let referrals languish for months, their value can fade as the relationship between your customer and the prospect changes or your customer becomes less enthusiastic about your business.  Set up a system to contact referrals within two weeks of obtaining them.

7. Mention the connection, but don’t rely on it. When you contact a referral, be sure to let them know who referred them to you. However, don’t assume that this connection alone will spur the prospect to buy. You need to put forth as much effort as you would with any sale.

8. Get to know them. Don’t give a “hard sell.” Lay the groundwork for a relationship by offering the referral something useful as an introduction to your business. This could be a whitepaper related to their industry, a free consultation, or a discount on their first purchase.

9. Provide great service. When you win business from a referral, always provide outstanding service to the new customer. Otherwise, you will make the referring customer look bad for having recommended you, and you might lose not only the new customer’s business, but the old one’s as well.

10. Repeat the cycle. Be sure to ask your new customer for a referral when the time is right—and watch your business grow exponentially!

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.