Business Information for Entrepreneurs by an Entrepreneur

You know what you should do when life hands you lemons. The lemonade you make and serve when the economy slumps or your industry changes will be the key to your small business survival. That’s called innovation, and your job to help your business survive and thrive is to create the perfect lemonade recipe.

In the throes of a tumultuous economy, some businesses are thriving due to their innovative strategies. For instance, as reported by the New York Times, the Scottsdale Convention and Visitors Bureau developed an innovative marketing idea in Chicago to capture increased business. On prominent storefronts, they alternated images of harsh winter and people enjoying recreational activities in the sun. To track how effective their campaign was, they created a contest for a chance to win a trip to Scottsdale, AZ. They received 10,000 entries – and it is likely that many more took the initiative to escape the winter freeze by visiting Scottsdale on their own.

So how does innovation work? There is no set formula, of course. But here are some secrets to help you get innovative with your business strategies in a tough economy.

Associate Ideas and Information

The cliché of thinking outside the box is merely a concept of association. The entrepreneur or small business owner who can associate different ideas and put them together in unique ways is the one who will conquer innovation. Be observant about the climate of your customer base or industry. Learn to combine ideas and find new ways to solve problems.

Stretch Your Creativity

Most people believe creativity is a natural talent. The truth is that it can be developed and improved. Practice brainstorming techniques. Look at a problem and ask questions about it. If you ask questions rather than try to come up with a solution right away, you are likely to find a better solution because your perspective will be enhanced.

Learn to Model

You don’t have to reinvent the wheel. Learn to model creative behaviors from other masters. Anthony Robbins is a good example of someone who thinks and promotes creativity. Peter Drucker literally wrote the book on Innovation and Entrepreneurship. Learn from masters like these, and you’ll have a great model to work toward your own innovation.

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.