Business Information for Entrepreneurs by an Entrepreneur

Toyota, the trusted foreign automaker who has produced cars that people love for decades, is in a sticky situation. The company is in the middle of a giant recall effort of unknown size and origin, and Toyota has confirmed that its accelerators stick on up to 5 million vehicles and could cause an accident for an auto owner.

However, by not disclosing the models affected and stating that the matter is ‘still under investigation,’ Toyota has a lot of goodwill to collect as it sorts out the recall problem.

The problem with sticky accelerators is not contained in just the U.S., but is a global issue. Toyota, therefore, has begun forming a global campaign to try and heal its image and restore faith in the name that has meant quality for years.

The First Steps in Healing its Name

While it continues to work on the recall problem, they must focus on their brand management. The Toyota brand image is what will save the company once the crisis is over. If consumers are to have faith once again in the Toyota brand, they must be assured that Toyota remains dedicated to excellence and quality.

The first step to rebuilding its image is already underway. By acknowledging the problem and offering a factory-sponsored fix for current owners, they already have taken the bull by the horns and are attempting to give current and future owners assurance that the company sticks by its products. In fact, Toyota stated that many dealers will expand their hours or even stay open around the clock to provide the service necessary to fix their automobiles. They even spent millions advertising during the Super Bowl to convey its message and “dedication” to solving the problems.

The Future of Toyota’s Branding

Once the problem of the sticky accelerator pedal is fixed, Toyota will likely be spending years fixing its image problem. Financial experts are already predicting a $2 billion loss in sales for the company in 2010, and this doesn’t include the money that will be spent on their image campaign.

Toyota has weathered problems in the past. While the recall problem is bad timing during a global economic downturn, Toyota will likely find its way back on top as one of the world’s leading automobile manufacturers.

Sunday, February 7 marked the 44th annual gridiron grapple, also known as Super Bowl XLIV. Besides the actual game, fans enjoy watching the introduction of kooky and zany commercials by big businesses who can afford the $2.5 to $3 million price tag for a 30-second spot. But with ad space so expensive, what small business can afford to benefit from the Super Bowl?

The economic crisis has affected everyone, and even giant mega-corporations see that the little guy is struggling. As a change in the Super Bowl advertising paradigm, some companies directed their focus to small business.

From MillerCoors to Four Small Businesses

Take, for instance, the MillerCoors Co. Their Miller High Life product is a popular Super Bowl advertising subject. In 2009, Miller High Life sported a simple 1-second ad during the game. This year, however, instead of promoting their own product in 30-second spots, they purchased advertising time and donated it all to four small businesses located around the country!

Of course, Miller High Life will get mentioned, but to offer the biggest advertising event to a virtually unknown small business who otherwise couldn’t afford it is a big nod for the little guy. The four businesses are a corner barbershop in Escondido, CA, a music shop in Phoenix, a candy shop in New Orleans, and a baseball card and collector shop in Chicago. The owners of these businesses state on the MillerHighLife.com website that that commercials will be “life changing.”

Pepsi Donating Super Bowl Funds to Small Businesses

Another big Super Bowl regular is Pepsi. However, instead of seeing their ads during the game this year, they are donating their Super Bowl budget toward small businesses by offering grants from $5K to $250K. Their Pepsi Refresh Project is their way of helping the economy and is aimed at helping small business and new business ideas get off the ground. To be awarded a grant, people need to nominate a small business, and the ones with the most votes get the monetary nod.

The Super Bowl debuted plenty of new and exciting commercials, but this was the year for small business to get a small share of the Super Bowl mania.

On January 27, President Obama gave his state of the union address after holding office for his first full year. In the last year, there has been an increased unemployment rate (up to a national rate of 10% in November 2009) and a decreased approval rating for the President’s efforts. While the American Recovery and Reinvestment Act of 2009 did promise $787 billion in tax benefits, grants, and loans, only $268 billion was paid out. What does all this mean for new and struggling small businesses in 2010?

President Obama spent two-thirds of his speech on economic recovery, with a top focus on small business and job creation. With this kind of concentrated effort, small businesses can hope for greater help from the U.S. government.

Obama’s New Proposals for Small Businesses

The list on the small business improvement agenda includes a proposal to eliminate capital gains taxes for small business investment, tax incentives for hiring new employees, and redirecting $30 billion of Wall Street bailout money to small-town banks and small businesses.

These proposals are indeed encouraging for small business. In fact, Obama stated, “We should start where most new jobs do—in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides its time she became her own boss.” If what the President says is true and his proposals are approved, small businesses should get a big shot in the arm through government aid.

Turning Proposals into Policy

However, if you visit Obama’s speeches prior to his election in 2008, you will find that his speeches have carried much the same tone. Even in 2008, Obama stated that government should provide tax-breaks to small business and encourage investment. With his last full year in office spent focused on health care and overall economic stimulus, we should hope that President Obama’s words will soon become policy and law.

If these proposals do become policy, small businesses might expect a tax credit up to $1 million for hiring more employees, additional money to be loaned to small businesses through government guarantees, relaxed export laws to help small business grow overseas, and additional tax relief for small businesses for expanding and investing in capital.

2010 will be a year of change for small business. With economic indicators looking brighter and positive words emanating from the White House, if small business owners can weather the storm through 2010, they will likely see additional prosperous years in the future.