Small Business Trends

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• 8 Ways to Finance Your Startup with Debt: Part 1
• Cory Hartlen of Radian6: We Listen to Social Media
• We’re In The Big Leagues Now
• Do This, Don’t Do That: A Strategy for Unique Business Building

8 Ways to Finance Your Startup with Debt: Part 1 Posted: 20 Jan 2012 11:30 AM PST There’s good and bad news to share about startup financing for a small business.  Keep in mind, we are only looking at debt options so think of loans and lines of credit that you pay back to a lender.  We are not looking at any equity solutions such as angel investors, venture capital, etc.  The good news is that there are options.  The bad news is that nothing is easy nowadays and if you have damaged credit or you’re looking for several hundred thousand dollars it’s much less likely to happen purely with debt. I have split these 8 solutions into two parts based on the likelihood and value factors.  Simply put, likelihood just asks the question, “How likely is it that this type of financing can be obtained by a higher percentage of people?”  Value is all about how much value would each form of financing bring to business owners who utilized this form of financing.  So let’s get started. Here are the 4 most likely forms of debt financing for small business startups: Credit Cards This is absolutely, positively, without doubt the most common form of financing for small business startups.  Additionally, credit card financing – when it is done right – is arguably the least expensive form of financing.  From a benefit perspective they also do not require collateral like many other forms of financing.  The problem is that when credit card financing is not done correctly – and normally it is not – you will hurt your credit profile, pay too much in interest, you will not properly separate your personal & business credit, and you’ll likely miss out on some good tax benefits. ROB’s Technically known as Rollovers as Business Startups – are only an option for people who have saved up some adequate retirement funds.  It’s also much more risky than most other forms of financing.  This is a very popular form of financing for new franchisees.  The downside is you’re risking your future basically since you’re tapping your retirement savings.  The upside is that you can access a sizeable amount of capital if you have a nice nest egg waiting for you. Trade Credit Maybe it’s not as popular but it is very common.  Examples of trade credit – which is also referred to as vendor credit – would be a line of credit at Staples, or Dell, or any other company where you need to purchase their goods or services for your business.  There are many forms of trade credit where you can obtain loans and lines of credit that are revolving in nature…meaning the balances are not due in full and can be spread out over several months or several years.  However, the most common “terms” attached to trade credit are Net 30.  So there is not the same value or ability to finance nearly as much since you’re only delaying the purchase by a month or maybe two. Equipment Financing Most startup companies need some type of equipment.  Ideally, if the goal is to use your capital in the best way possible, you wouldn’t use a working capital loan or line of credit to purchase equipment.  Sometimes it is necessary but, often times, you can get a loan or lease specifically for your equipment and then leave your cash, working capital loans, and credit cards available for other uses. With over 15 years of small business lending experience, Kris Roglieri is the Founder of Commercial Capital Training Group and President of a national commercial finance company.  According to Roglieri: “In the last 4 years, the number one characteristic of defaulted loans or leases in a lenders portfolio were companies that had less than 2 years time in business so most lenders only finance companies that are more than two years in business or their underwriting requirements are very tough and stringent.  If you’re seeking to finance equipment as a startup you should have good personal credit, some experience in your industry, and hopefully at least 6-12 months of liquidity.” In Part 2 we’ll discuss the other 4 most common debt solutions for startups. Credit Card Photo via Shutterstock From Small Business Trends 8 Ways to Finance Your Startup with Debt: Part 1

Cory Hartlen of Radian6: We Listen to Social Media Posted: 20 Jan 2012 08:30 AM PST Can you hear me? Can you hear me now? Are you even listening? In today's technological age, there's a lot of "noise." Becoming an effective listener is a skill that needs to be honed and actually being an effective listener is a skill that can be capitalized on in business, especially when it comes to social media. Listening closely to what's happening around your brand and products in real time can be crucial to the success of your social media strategy. Cory Hartlen of Radian6, a site that listens, tracks and monitors social media conversations so that businesses can successfully employ a social media strategy, joins Brent Leary to discuss why it's so important to listen. * * * * * Small Business Trends: Before we jump in, maybe you can tell us a little bit about yourself? Cory Hartlen: I came into social media, into Radian6, in a really round about way. I spent 10 years in the food and beverage business and I was managing bars and restaurants.  I even waited tables and bartended.  For a little while, I started my own stand up career and toured around Canada. When I got to be closer to age 30, I decided it was time to put down some roots and began a career in financial planning. Then in October of 200,8 after the market crashed, I wanted to find something a little bit more stable and was more than happy to go through the interview process at Radian6.  It has been the best decision I ever made. Small Business Trends: How are companies looking at social media monitoring in 2012? Cory Hartlen: I think the industry has really grown up in the last two or three years and it’s starting to come into its own. The people leading the industry have been doing it from the early days.  You have Dell, Pepsi and Microsoft.  They’ve been doing it very well.  And then there are the people that are now getting into it.  So we do see there is a fragmented gap. The people that have been doing it for a while are trying to figure out ways in which they can infuse social data and social media intelligence through the organization. The others start with marketing, PR or corporate communications, and do some testing and develop some strategies to figure out ways to measure the effectiveness. As it starts to grow, we really see where social media flows though the organizations.  So it does not just live in marketing anymore. Small Business Trends: How do you see listening impacting areas of business? Cory Hartlen: One of the neatest stories that I’ve heard the last few months is in HR. Being able to listen for all brand mentions of people that have graduated with their MBA, or are looking forward to graduating with their MBA, and then seeing inside of those conversations what topics are coming to the top.  Especially when people are saying that they are looking for jobs or applying for jobs. We have had a few clients who have had success in being able to find potential candidates for their junior executive training programs. Instead of being able to rely on more traditional avenues for that, where there have been recruiters or headhunters, they are able to use social listening to help reduce some of those costs. Small Business Trends: What are some of the skills we need to hone in order to become an effective listener? Cory Hartlen: To become a good listener is really about having a process to get that information in the hands of people that can use it and act on it. It’s not just about how to listen, but to have a good team together that can act and capitalize on these opportunities that come from that listening program. Small Business Trends: What are some of the ways that companies are able to quantify the importance of listening today? Cory Hartlen: We listen to social conversations so that when people reach out to their social networks and ask for advice, then maybe we can lend a hand and share a link to our review of monitoring systems. Those conversations are very measurable because we can figure out how many leads we are getting from the social space over a given time period and get those input into our system.  Then we actually see how many of those we are able to close on over a given time period to get our own ROI from a program like that. There are other ways that the customer service team can deliver better customer service by meeting people at the point of need in these social spaces. We have heard some new numbers that have come out on increasing the rate on one touch closes. The reduction in average time per resolution and the reduction in cost per resolutions as well. Small Business Trends: Are there certain areas that people still have not really adjusted well to in terms of leveraging listening? Cory Hartlen: Well I think it comes down to measurement. People may be listening to the right conversations, but they might not be using that data effectively. Maybe PR and marketing are doing some listening, but are those two departments sharing that social intelligence across their departments or across the departments that can use it? I still see that information being housed inside of the individual department and I think that can be a little counterproductive because you get a duplication of efforts. Small Business Trends: What are the top two or three things needed in order to get the most out of listening in 2012 and beyond? Cory Hartlen: I think that it all comes down to goals and strategy. I always say that the phone is just a phone – without a plan social media is no different. People always ask about the ROI of social media. I could very easily ask you what the ROI of my telephone is.  But without a goal and a measurable strategy, I am really left in the dark. But if I decide to make three more sales this month, then I know that I need to make X number of phone calls to be able to close that number of sales.  So now I have a goal and a strategy which can be measured to prove my success. I think that social media is no different. Small Business Trends: Cory where can people learn more about Radian6? Cory Hartlen: Radian6.com. We are also on Twitter @Radian6, LinkedIn, and Facebook. This interview is part of our One on One series of conversations with some of the most thought-provoking entrepreneurs, authors and experts in business today. This interview has been edited for publication. To hear audio of the full interview, click the right arrow on the gray player below. You can also see more interviews in our interview series. From Small Business Trends Cory Hartlen of Radian6: We Listen to Social Media This posting includes an audio/video/photo media file: Download Now

We’re In The Big Leagues Now Posted: 20 Jan 2012 05:00 AM PST I'm not a sports guy. I'm sort of big and pretty tall, so coaches always assumed that I'd be a wonderful addition to whatever team they were assembling. I'd try to warm them, really I would, but they'd always chat me up, put me out there, and then shake their heads in bitter disappointment while I tripped over my own clownishly oversized feet. Sigh. . . But sports can be a big part of sales small talk, so I tried to keep up on who played what for whom and how. Mostly I just nodded and agreed.  But I had this one manager who was sports crazy. Any sport. I swear he followed curling. And he loved his sports analogies. "We were batting 1000, but we're in the big leagues now. It's a whole new ballgame. You need to cover your bases and play hardball. Step up to the plate, swing for the fences, and really knock it out of the park!" Honestly, it went on and on like this. . . So I did this cartoon in a meeting to amuse myself. I think it's a home run. (Rats! Now I'm doing it!) From Small Business Trends We’re In The Big Leagues Now

Do This, Don’t Do That: A Strategy for Unique Business Building Posted: 20 Jan 2012 02:30 AM PST Small business leadership requires an incredible range of decisions. Your strategy is key to navigating these successfully. Having a unique strategy separates you from the pack. Opportunities So you think your business is unique? Better reserve judgement until you check out some of these. We all know that part of branding is that initial impact your business makes on customers. And, of course, on creating that one unique product or service no one else has. Yahoo! News How not to handle business reputations. When looking at the way celebrities and gurus handle their small businesses, we are sometimes treated to a view of how we hope our businesses someday might be. Not in this case. Here’s a look at what can go completely wrong when managing your reputation.  David Leonhardt's SEO and Social Media Marketing Marketing Video tips you should ignore. There are so many tips abounding on managing your small business, including your business online, that you’d be surprised hearing someone advocate ignoring them. Work At Home Woman What separates great entrepreneurs from all the rest? David Siteman Garland shares this simple thought after time spent interviewing some of the most successful small business leaders on the Web. There is no secret formula for success and no substitute for paying your dues. The Rise to the Top Sales Steps to better e-commerce success. It’s called the empty shopping cart syndrome. What happens when you set up that online store only to have nothing happen? Nothing at all! Don’t loose hope. As with any problem there is a solution. Learn more about how to turn e-commerce failure to success. Buzz Small Business Magazine So you want to do business with China. Small businesses have better odds than ever before, even as exporters. Certainly the Web and other technology will help you if you have the products, services and marketing to be a success. But hold it! This infographic suggests some obstacles. High Street Partners Management What a city in Spain can teach the world about branding. Plenty. Let us tell you! Check out this post on how one city has promoted itself to incredible heights and how these techniques are things you should already be trying in your business. Bloggertone Bring your employees into the game. You know that your employees are the key to your businesses success. So it shouldn’t come as a shock that giving them a stake in the outcome is far more likely to lead to success. But when looking at compensation, how can you find the equation that works the best? You’re the Boss Leadership Your mantras for success. A mantra is meant to be a short phrase repeated over and over again to reinforce an idea. This list of suggestions is clearly worth recitation by any entrepreneur wishing to find success and take it to the next level. Inc.com How not to lead. Don’t make the mistake of thinking this is just another anti-Washington rant or one more critique of SOPA and the potential damage it could have done to the world as we know it. Oh no. It is much more! It is an object lesson about the kind of leadership we desperately need…now! Seth Godin’s Blog From Small Business Trends Do This, Don’t Do That: A Strategy for Unique Business Building

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