A weekly roundup of small-business developments.Dashboard
What?s affecting me, my clients and other small-business owners this week.
The Big Story: Unemployment Stays About the Same
Gallup says workplace hiring jumps. ADP says employers added (pdf) 209,000 jobs. Jobless claims are at a four-year low. ASA staffing index is the highest since 2008. The CBIZ Small Business Employment Index rose. The Intuit Small Business Employment Index shows its healthiest growth rate in two years. Bearemy Glaser lists 17 scary numbers from the first quarter, including 5.4 million: ?the number of long-term unemployed (27 weeks and more) persons in February, little changed from the previous month.? The bottom line is that March?s official unemployment rate fell to 8.2 percent from 8.3 percent. Um, hooray?
The Economy: No More Ease?
The economic recovery is becoming more ?self-sustaining? despite continuing headwinds, a Federal Reserve official said, and many believe the Fed will not be easing anytime soon. Stock markets have been relatively calm. The software maker Sage detects a brighter outlook among small businesses. Companies are starting to spend some of their cash hoards. David Wilson says America is becoming the new Middle East, but a diesel fuel index indicates we?re in a recession. Robert Lenzner has doubts about the wisdom of our wise men of finance. Bruce Bartlett warns us to beware of budget gimmickry. An analysis of semiconductor chip sales suggests a slowing economy. These industries may be the winners and losers of the last recession (and this guy shows how to lose with style).
The Data: People Are Eating Out
Small-business lending barely grew in February, and large-bank lending to small businesses remained flat. Factory orders are up. Consumer spending outpaces income gains but some wonder if consumers can keep spending. The University of Michigan?s consumer sentiment survey is the highest since February 2011. March auto sales are up 13 percent. Year over year, sales at full-service restaurants were up 11 percent in January. February?s ISM Manufacturing Index was above expectations (pdf), but some say it?s not rosy and Markos Kaminis says the manufacturing report offered some disturbing data. Construction spending (pdf) fell in February. Census data for 1940 is released. The office vacancy rate improves.
Red Tape Update: Wall Street Digging for Opportunities
The chairman of the House Small Business Committee, Sam Graves, applauds the Jump-start Our Business Start-ups (JOBS) Act of 2012. Meanwhile, a provision of the act raises concerns. Wall Street is already digging for opportunities, and a former con man says the new law will make frauds like him rich: ?I wish legislators would consult with people like me.? Ryan Caldbeck offers three reasons crowdfunding is good for entrepreneurs. Additional small-business tax bills are on the agenda in the Senate and the House. The Chamber of Commerce says America?s corporate tax rate is now the highest in the world. CNBC explains the alternative minimum tax. A sense of peril for the health care law gives insurers concern.
Management: It?s Smarter to Barter
Fiverr.com is changing the creative economy $5 at a time. Why did a sausage chain fail while a meatball chain thrives? And since when did the ice cream business get so complicated? Here are three places to look for energy losses in commercial buildings. Adam Toren says it?s smarter to barter. Chris Zook and James Alle cite three successes that represent a model of repeatability. Barbara Weltman says there are five financial mistakes that can put you out of business, including: ?misordering inventory.? A supply chain expert says that lean companies need only half as many employees in their purchasing departments as non-lean companies. Kosmo explains fixed and variable costs. Maya Pillai asks, Do you have an exit plan?
People: Expecting Raises
Jason Trevisan explains how to find a chief marketing officer. Despite increased physical and mental stress, small-business owners are still up for new challenges. For the first time in four years, most workers expect a raise. A Pinterest co-founder is stepping down. Shhh, Minnesota public radio takes us inside the world?s quietest room. Here are the world?s most powerful human resources technology experts. Women small-business owners feel more successful than men. Independent baby boomers (pdf) gain power. Maureen Aylward reports that older entrepreneurs thrive on innovation. A new online tool connects businesses with experts for custom advice. I ask you: is this basketball or football?
Start-Up: Secret No. 54
Although generally confident about the prospects for their own businesses, start-up owners are sending mixed signals (pdf) about the economic outlook for the next 12 months. This week?s celebrity investor: Bono. Here are some basic considerations before? starting a shipping business. Steve Strauss and eHealthInsurance Partners introduce a new online resource to provide business tips, advice and news for self-employed professionals. Rafe Needleman shares start-up secret 54: ?Build for the 1 percent.? An associate professor at Harvard says that most start-up failures are caused by people problems. Microsoft hosts an interesting forum for Silicon Valley start-ups. Whatever happened to those start-up superstars from 2006? Steve Blank says his about start-up epiphanies: ?People who follow them tend to get rich, famous or both.? The Dumbo start-up lab gives entrepreneurs in New York a leg up on office space, and Nate Hindman profiles New York?s coolest start-up offices.
Around the Country: An Office in a Cab
A new contest is offering $25,000 for an office makeover. Or forget the office and take a cab ride instead. A Piqua, Ohio, community college is doing a boot camp for entrepreneurs, and Marketing Sherpa?s lead-nurturing webinar is Thursday. Brian Wilson?s bearded airplane hits the skies and Allegiant Airlines now charges $35 for carry-on bags. The call for entries has begun for an Entrepreneur of 2012 contest. A new book by Barry Moltz and Becky McCray explains how big brands and small businesses can prosper in a connected economy. Bank of America hires more small-business bankers in Georgia and the Carolinas. Backpacker food gets hip. Trailers are flung around like toys in video of a Dallas tornado.
Around the World: A Vacant Mall
A British teenager explains probability. Can you guess which country is the world?s happiest? Germany?s manufacturers aren?t happy. Pensions, unemployment and interest constitute 57 percent of Spain?s budget. Richard A. Clarke explains how China steals our secrets. The world?s largest shopping mall remains mostly vacant in China. Minxin Pei says there are signs of a new Tiananmen.
Marketing: Veiled Threats
Derek Johnson reports that 83.3 percent of advertisers used text message marketing in 2011. Local online advertising is expected to grow 21.3 percent in 2012. Google has big plans for hangouts on air and now lets us hang out at the White House. Paul Greenberg starts a series on customer service stories. Don?t underestimate the power of testimonials or the effect of colors on your Web site. Jim Smith feels that social media marketing is a must for small businesses, and Mark Schaefer explains why you must use Twitter. Debra Donston-Miller says there are five social media metrics that matter. Diana Pohly explains how to use veiled threats to get your e-mails opened. Aidan Hijleh thinks that the iPad 3 will change e-mail marketing: ?Although a user may be reading an article and shopping for Web-hosting while simultaneously having their inbox open on a PC, they are much more likely to be viewing e-mail and e-mail only on their tablet.?
Technology: Flying Cars
An 80-year-old woman lands a plane after the pilot passes out. Handling porn traffic is a big challenge for providers. Keep an eye on these six tech innovations and these five collaboration trends. There are reasons to spend more than $500 on a new laptop. Andreas Bernstr?m says there are four ways technology can enhance efficiency in a small business. Jonathan Blum lists seven must-have gadgets for your home office. Apple?s iPad tops a Consumer Reports list. Yasir Hossain explains what it will take for tablets to replace PCs. Flying cars come one step closer to reality. These Android apps are essential for small and midsize businesses. PayPal introduces a tiered suite of payment options for small businesses. Hackers steal more than 10 million MasterCard and Visa numbers. A new mobile marketplace for small-businesses has its debut. Nitro, the other PDF software company, raises $3.5 million.
The Week?s Best Tip
Anne Samoilov says you might be sabotaging your business if you don?t solicit advice: ?Go ahead and ask friends, former customers and family members what they think of your offerings. If you want a clearer picture of what people think of your wares, consider asking your target market. If you?re getting e-mails, social media shares, new clients and an increase in traffic to your Web site, then you?re probably on the right track. But if you?re not seeing growth in any of these areas that show people dig what you do, it?s time to rework your business plan.?
Today?s Question: Do you respond well to negative feedback?
Gene Marks owns the Marks Group, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.
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