Marketing Your Small Business
If you have a small business, then you’ve had to make difficult decisions regarding your marketing budget. How much should you spend, where should you allocate that budget, and what’s the best way to go about building a brand? To complicate all of those questions, more and more forms of communication are evolving everyday and clouding the marketing landscape. You can spend four years in a college classroom learning all the intricacies of marketing strategy, but sometimes it’s nice to get the quick bullet points or just have a refresher on those things you already know. I recently came across this article which I think touches on some great points for a small business to think about when considering their marketing strategy. I hope this helps you sort through the clutter and opens up the floor to debate.
http://www.mainstreet.com/article/small-business/launching/4-small-biz-marketing-mistakes?page=1
World Cup & Social Networking
GOOOOAAAALLLLL!!!!
If you have a Twitter or Facebook account, odds are you received a status update during the World Cup similar to the above. If you did, you are not alone. According to Facebook, during the England versus USA world Cup match, 30% of all Facebook status updates were related to the World Cup match. America and England are not the only countries using social media. Social media is a worldwide phenomenon. Popularity of Twitter during the World Cup almost crashed Twitter’s website on more than one occasion due to the unprecedented volume of tweets per second.
The World Cup has also been a blessing to advertisers on both social networks. A Coca-Cola campaign congratulating the United States and English teams for advancing in the tournament saw more than 85 million ad impressions on Twitter, while a Nike video campaign on Facebook got 5.6 million playbacks in its first 24 hours on the site, driving 6 million new followers to the company’s campaign, according to Joanna Shields, who leads the social network’s European sales operations.
Depending on the sport, statistics can often predict the outcome. When it comes to the World Cup, passes completed, minutes played, shots on goal, and more importantly, goals scored dictate the outcome of the match. The teams competing in the World Cup do not regard tweets per second as a relevant statistic, but the advertisers do. While tweets per second have no bearing on the outcome of the match, advertisers are paying very close attention since the outcome of a match will increase status updates per second. Twitter has experienced record-breaking levels above its average 750 tweets per second since the World Cup began. The previous record was 3,085 tweets per second on June 17, when basketball’s Los Angeles Lakers defeated the Boston Celtics in Game 7 of the NBA Finals. Will the record be broken between now and July 11, 2010 when the World Cup Final match is played? On June 26, 2010, the USA Soccer team lost to Ghana, which means there will most likely be less Americans following World Cup action. Soccer may be a second tier sport in America, however, Soccer is the most popular sport in the world and the World Cup action will continue to draw millions of viewers and social media followers over the next 12 days until the final whistle, and hopefully vuvuzela, is blown.
Is Facebook or Twitter better for maximizing your company’s social media marketing campaign? Both Facebook and Twitter have benefits, but the answer depends on your type of business, whether or not you are seeking to generate traffic, social interactivity, promote a viral marketing campaign, and whether you are targeting other businesses, or consumers. There are many social networking websites besides Facebook and Twitter, however, in order to compare these two to determine which website is best for your business, a social media marketing study was conducted by Irbtrax SEO and Social Media Optimization. The study focused on viral marketing and interactivity to determine which Social Media source offers the best results for businesses and online marketers. In the study conducted by Irbtrax, Twitter was found to be the optimal first choice for most Business to Business applications while Facebook was found to be the optimal first choice for most Business to Consumer strategies. The research concluded that businesses and online entrepreneurs wishing to maximize their Social Media Internet marketing results benefited from creating a presence on both. However, when trying to decide which one to engage first or where to spend the most amount of available time, results indicated that it’s necessary to perform Internet Market research and apply the findings to the intended target market. After which, one can weigh the unique benefits of each platform against the research resulting in clear objectives and an optimized campaign. The study also concluded that SEO combined with Social Media Marketing will yield greater potential results
According to Irbtrax SEO, Social Media Optimization (SMO), Mobile Media Optimization (MMO) and Internet marketing founder, Scott Moir, whose firm engaged in this study, “Our intention wasn’t to declare which is better because they both provide valuable Social Media marketing benefits. The objective was to try and determine which of the two Social Media platforms was the best fit for a particular business application or niche.”
Social Networking is nothing new, but the tools to enhance and increase the level of connectivity are constantly changing. The World Cup has provided an incredible example of the extent to which the newest forms of social media have become a part of our life, and the volume of acceptance which they’ve now seen across the globe. This surge in tweets and status updates however, makes you wonder what impact someone texting “GOOOOAAAALLLLLL” to their social network can really have on the bottom line. While companies like Nike, and Coca-Cola have been able to leverage their World Cup corporate sponsorships with successful social media campaigns, does that mean it could work for everyone? What information of substance could the Attorney, Accountant, or Doctor tweet that anyone would want to follow? Finally, how do you measure success on the bottom line, in a medium that is based on “friends” and “followers”?
Share your experiences with social networking and your feelings on the future of this communication technology.
To learn more about Irbtrax visit:http://www.Irbtrax.com
Economic Impact of BP Oil Spill
On April 20, 2010, the explosion of an oil rig, Deepwater Horizon, off the coast of Louisiana not only killed 11 people, but triggered an underwater oil spill that after 65 days, has yet to be contained. One could say that after 5 days, there is no quick fix for the oil spill, but after 65 days, one could say that British Petroleum, BP, is not only negligent in its attempts to resolve the oil spill, but careless. Who should BP care about? The businesses, workers, families and communities impacted by the disaster, for starters. The environmental impact will be felt for decades, but the severity of the economic destruction will take years to calculate.
President Obama has demanded that BP compensate the workers and businesses as well as pay for the damages caused by the oil spill. On May 28, 2010, the Department of Interior and the Minerals Management Service attempted to impose a six-month moratorium on deep water drilling, in the Gulf of Mexico. The President of the United States formed a bipartisan commission – the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling – and tasked it with investigating the facts and circumstances concerning the cause of the blowout. The President also ordered the Secretary of the Interior to conduct a thorough review of the Deepwater Horizon blowout and to report, within thirty days, “what, if any, additional precautions and technologies should be required to improve the safety of oil and gas exploration and production operations on the outer continental shelf.”
Efforts to contain the oil spill have failed thus far. Scientists originally estimated the oil flow to be 5,000 barrels per day, then 20,000 to 40,000, but upon further investigation, it has been determined that the quantity of oil has been flowing out of the runaway well at an amount closer to 60,000 barrels per day. BP is only containing 15,000 barrels of oil per day using a containment cap. By mid-July, BP is expected to be able to contain 80,000 barrels per day. According to BP, they should be able to contain 90% of the oil, but it may be a case of too little, too late. With every passing day, the oil continues to flow at a pace that far exceeds the cost to clean up the oil spill and restore the coastal areas, while the businesses affected are growing exponentially.
When the top executives for each company involved in the oil spill (BP America Inc, Transocean Ltd, and Haliburton Co) met with Congress on May 11, 2010, each company leader blamed the other for the environmental disaster. Halliburton joins BP and Transocean because it provided a variety of services on the rig and was involved in cementing the well to stabilize its walls and plug it. Transocean is blaming Haliburton because the cementing or casing had failed to plug the well. BP is blaming Transocean’s blowout preventer, which is the last line of defense from a potential disaster. Why are the executives blaming each other rather than working together to find solutions to the devastation and mitigate the damage caused to the marine wildlife, the coastal and human environments? The answer is simple. It is easier to point a finger than it is to work together amicably towards a viable solution.
Lawmakers in the House of Representatives and the Senate have introduced legislation that would raise to $10 billion the amount of money BP would be responsible to dole out for economic losses caused by the spill. Does that mean the economic impact is only $10 billion? Only $10 billion! Unfortunately, the oil spill will slow the progress of economic recovery of the regions closest to the Gulf of Mexico, regions not only struck by the National economic climate but still trying to recover from the Katrina disaster. The immediate economic impact will not be limited to the increase in the price of seafood or gasoline, but the effect on businesses which could be interrupted by the possibility of a moratorium, and the states closest to the Gulf of Mexico that rely upon the fishing industry and tourism to support their local economies. Florida has already been hit hard by the recession, and if tourists cancel their travel plans due to concerns over their health and/or safety caused by oil drifting toward the beaches, the economy will suffer even further. If tourists cancel their travel plans, the hospitality industry, both restaurant and lodging, are going to be affected. The fishing industry in states like Louisiana, Alabama, and Mississippi have already been affected, but fear of oil damage can further affect the coastal real estate markets. The economic impact of this peripheral damage will take years to calculate.
Until the oil spill is contained, we must wait and see how far the oil will spread and what kind of damage the oil will cause. The oil could cause billions of dollars in damage to property, wildlife, livelihoods and the seafood industry all along the Southeastern edge of the United States and take several years to fully clean up. Under certain conditions, the ocean current could push the oil as far north as North Carolina. If the oil spill were to spread further up the coast to North Carolina, the real estate market for primary and vacation homes, especially water front properties, will be slowed even further. The problem is there is no way to accurately calculate the economic impact of the oil spill today. The oil spill will slow the economic recovery, but hopefully, not impede the recovery altogether.
In finances and in soccer, sometimes it’s better to be lucky than good
Is it better to be lucky than to be good? Ask the United States Soccer team. They are a talented group of young men, but after Saturday’s game, many believe they are just lucky. Their much anticipated match against England on Saturday ended in a 1-1 draw. Was the American squad lucky, or are they more skilled than experts and critics expected? Even though the US team didn’t win, it felt like a victory to the US team and their fans. The English goalkeeper, Robert Green, may be good, but he did not have luck on his side on Saturday afternoon. Green played well in the beginning of the first half but he allowed a seemingly innocuous shot by Clint Dempsey pass him in the 40th minute, which has quickly become one of the most infamous goalkeeping mistakes in the history of the World Cup. England is passionate about their football, so the harsh reactions from the British newspapers was expected, more so than the outcome of the match. The Guardian went so far as to write, “Wanted urgently against Algeria in Cape Town on Friday: a keeper who can hold onto the ball.”
The Americans may have been lucky to score against Green, but the American goalkeeper, Tim Howard, sustained a broken rib when Emile Heskey slid into him in the 30th minute of Saturday’s game. Howard received a cortisone shot during halftime and played through the injury, but his luck may run out when he is evaluated by team doctors. Howard is one of the world’s elite goalkeepers, winning the Premier League’s Goalkeeper of the Year honor in the 2003-2004 season. If Howard’s rib injury is serious and he is unable to play against Slovenia, either Marcus Hahnemann or Brad Guzman will have to take his place. Neither Guzman nor Hahnemann are considered to be as good as Howard, but who needs skill when you have luck?
The US team will now have to focus their attention to Slovenia, who defeated Algeria 1-0 on Sunday. Perhaps with a little luck and a lot of skill, the US team will be sitting alone atop of Group C after their match against Slovenia, the current leader with 3 points.
What would be the economic impact of America hosting the World Cup?
If the 2010 World Cup were hosted by the United States of America, the economic impact would be an estimated $5 billion. The greater impact would be the influx of jobs created by the World Cup.
The USA Bid Committee has undergone a study to determine how much impact the World Cup in America would have.
The results would be healthy, with a $5 billion economic impact expected to benefit the country.
A report on ussoccer.com documented the following information:
‘The study was undertaken by the Economics practice at AECOM, formerly Economics Research Associates (ERA), the world’s leading international sports and entertainment attraction consulting firm. The research firm previously conducted the economic and community impact analyses for the 1994 FIFA World Cup™ in the United States and multiple studies for the Olympic Games, beginning with the 1984 Summer Games in Los Angeles.
‘The findings of the study indicate that the total economic impact projected for any one host city ranges from approximately $400 million to $600 million at today’s dollar value. That figure is based on 12 host cities staging five to six matches, along with ancillary venues such as the International Broadcast Center (IBC) in one city and FIFA Fan Fest™ in each city. The study also estimates 5,000 to 8,000 jobs would be created in each host city during the event’s operation.’ In a country trying to pull itself up by the economic bootstraps and stem the tide of unemployment, can you imagine the positive impact that something like this could have? I’d love to hear you opinions and comments.
The Importance of SBA Loans to Economic Recovery
America will survive the current economic crisis, but only if small businesses have access to capital in order to continue to operate. Otherwise, unemployment will continue to rise, home values will continue to decline, the market values of properties will continue to deteriorate, and the slope will only become more slippery. Small businesses will lead the charge in creating new jobs, but only with the support of lending institutions within their community, allowing them to preserve their capital and finance the growth of their business.
Small business owners never plan to fail, but often run into hardships from failing to plan. With the collapse of Wall Street and ensuing financial turmoil, the Small Business Administration is encouraging the creation of job by supporting small businesses through various programs intended specifically for the owners and operators of small businesses. The programs allow for businesses to acquire commercial real estate, obtain capital to purchase equipment, consolidate business debt, buyout partners or obtain working capital in order to continue operating their business even when the owner retires. Small business owners can’t do it alone and will need financial assistance from their banks in order to fulfill their plans.
The current state of economic uncertainty has created challenges in credit markets worldwide. The “Credit Crunch” that was believed to have only affected Wall Street has permeated Main Street and small businesses on a global scale. The issue is no longer the cost of capital, but rather the access to capital. Banks currently have access to funds at historically low rates, and those low rates are subsequently available to the small business owner, meaning capital is relatively inexpensive. The problem is that many banks and lending institutions that have capital are not allowing the small business owners to gain access. Some liquid, deep pocketed banks, have developed crocodile arms when it comes to lending out capital in these uncertain times. The secondary markets which had been frozen due to liquidity concerns, have since thawed. The SBA 7(a) program is intended to further thaw those frozen markets and perhaps tug on the shirtsleeves of those lenders with “Crocodile” arms. Ocean Capital is an SBA 7(a) lender with long arms and deep pockets. With over $250 million in assets, Ocean Capital, a subsidiary of Home Loan Investment Bank, a Federal Savings Bank located in Rhode Island, has capital and is actively lending to small business owners nationwide.
There are over 26 million small businesses in the United States. The number of small businesses will continue to grow, but only with the help of financial institutions like Ocean Capital, who are willing to finance the small businesses in dire need of capital. The SBA’s financial programs fill in credit market gaps with over $20 billion annually. Working through lending partners, SBA loan programs are helping lessen the credit crunch by extending credit to small businesses across the country.
When your business, or that of your client, needs financing, a bank featuring SBA-guaranteed loans can be the key to your mutual success. The SBA’s loan programs allow lenders to provide capital to small businesses with less risk because of the SBA-backed guaranty. SBA programs are a critical source of capital for small firms in this economy and the SBA and their participants are prepared to accommodate an increasing demand.
All lenders who provide SBA 7(a) loans are referred to as participants, because they choose to participate with the SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. Unfortunately, there are less banks lending money to small businesses due to the rising number of institutions that lack the necessary liquidity to lend. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines. The SBA is not a lender, however, they offer management counseling and assistance through a national network of 1,500 education partners. The SBA also maintains a powerful Web presence with current business information and free online courses covering a variety of business topics. To learn more about the SBA and the variety of loan programs and services available, please visit www.sba.gov
Ocean Capital has been an SBA 7(a) Lender since 1981. The SBA 7(a) loans are the most basic and most used type loan of the SBA’s business loan programs. The name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. All SBA 7(a) loans must meet 7(a) criteria. Eligibility factors for all 7(a) loans include: size, type of business, use of proceeds, and the availability of funds from other sources.
If you are a small business owner, or a mortgage originator with small business owners as clientele, call an experienced Commercial Loan Officer at Ocean Capital to determine if you or your client is eligible for an SBA 7(a). You may also visit our website at: www.oceancapitalonline.com.
Quote of the Day
The following quote was taken from a New York Times interview with Steve Hannah, chief executive of The Onion.
“Find what you really love to do and then go after it - relentlessly. And don’t fret about the money. Because what you love to do is quite likely what you’re good at. And what you’re good at will likely bring you financial reward eventually.
I’ve seen too many people who have plotted a career, and often what’s at the heart of all that plotting is nothing other than a stack of dollar bills. You need to be happy in order to be good, and you need to be good in order to succeed. And when you succeed, there’s a good chance you’ll get paid.
And while you’re at it, read. A lot. Start with Plato. He was a very practical man.”
Quote of the Day
“Change and growth take place when a person has risked himself and dares to become involved with experimenting with his own life.”
~Herbert Otto
Ocean Capital Makes an Appearance on the Cover of Scotsman Guide
Check out the May 2010 Commercial edition of Scotsman Guide.
Quote of the Week
“The grand essentials to happiness in this life are
something to do,
something to love,
and something to hope for.”
~Joseph Addison
Quote of the Week
“If you’re looking for the next big thing, and you’re looking where everyone else is, you’re looking in the wrong place.”
~Mark Cuban
