The study was sponsored by the Jones Graduate School of Business at Rice University. What they found was that creating a fan page on Facebook can increase sales, improve branding and customer loyalty, as well as improve word-of-mouth marketing.

The study centered on Dessert Gallery, a bakery and café chain based in Houston, Texas. Prior to the study, the business did not have a Facebook presence. The Rice University researchers asked regular customers of Dessert Gallery to become Facebook fans of the restaurant, and out of about 13,000 regular customers, 1,700 did become fans.

During the three-month period Dessert Gallery jumped into the Facebook frenzy, updating its fan page several times each week. The owners included photos of baked goods and offered promotions to the fans.

The results of the Facebook study were interesting and may surprise you. Those who did become Facebook fans made 36 percent more visits to the restaurant each month and spent 45 percent more of their eating-out budget at Dessert Gallery. Facebook fans also had 41 percent higher loyalty toward the Dessert Gallery brand, as well as a 14 percent higher emotional attachment.

What this means is that your small business can gain greater customer loyalty and increase business through Facebook. However, you as a small business owner must realize that your Facebook fans are a particular niche, and they will most likely represent a small percentage of your overall customer base. The Rice University study emphasizes that only 5 percent of about 13,000 total customer base joined as Facebook fans.

The bottom line is that joining Facebook can lead to an effective and low-cost marketing method. Social media can help improve customer loyalty, increase business, and help spread word of mouth – all for virtually zero dollars. If you were previously unconvinced about the effectiveness of Facebook, now you have graduate study proof that a free Facebook page can work for you.

Perhaps, but according to a recent study published in February 2010 by Forbes, most small business owners are cautiously optimistic and still expect to have hard times in 2010. The study, “U.S. Small Business Outlook 2010,” shows the current temperature of business owners as 2009 came to a close.

One question about cash flow was not surprising. When asked if it was harder to manage cash flow now than 12 months ago, 64 percent said it is harder, while 26 percent said it was the same. Lower revenues were the biggest contributor to harder cash flow, while slow or non-paying customers were in the #2 spot.

And when asked about company revenues in 2009, 73 percent said their revenues either stayed the same or declined in 2009, with 26 percent having significant declines in revenue. 63 percent of small business owners reduced their budgets to help with lower revenues, while 55 percent cut back on entertainment. 45 percent actually cut their workforce to get by with lower revenues.

The hardships seem to be a blessing in disguise, however. While 66 percent of small business owners say they are working harder and longer than ever, 80 percent agree that they are smarter about operating their business as a result of the economic crisis, and 70 percent agree that they have become stronger leaders.

Looking ahead, small business owners do see 2010 as the year the financial crisis bottoms out and financial markets turn around. But the optimism stops there for 2010. Most small business owners see business stability happening in 2011, while 2012 will be the year for the return to growth.

Happy days are not quite here again. If the projections of current small business owners are accurate, it will be another two years before prosperity returns. But the good news is that small business owners are smarter than they were before the financial crisis started. Entrepreneurs are smarter about the way they run their businesses. They see the importance of planning and want to spend the time doing it. And they recognize that they will need to do business in new ways in order to succeed.

Signs of Revival

L.A. area loans for real estate purchases were up to $71.6 million, compared to $50.9 million in December. This is good news, especially from an area that was hit hard by the recession and has suffered some of the highest property foreclosures in the country during the last two years.

How the SBA 504 Loans Work

The loans are a part of the SBA 504 loans, aimed at helping small businesses acquire real property, large equipment, and other fixed capital needs. With the help of this program, small business owners have an easier time qualifying for and getting access to much needed capital to expand their business.

The SBA 504 loan is structured so that the borrowing business must pay only 10% down for the property, and the rest is financed as a split between a traditional lender and a non-profit corporation set up under the 504 code to help support economic growth in their local area. 50% of the loan is disbursed by the bank lender, with a guarantee from the SBA should the borrower default. The remaining 40% is disbursed by the non-profit corporation, known as a Certified Development Company (CDC).

What are the eligibility issues for obtaining a 504 real estate loan? Borrowers must have less than $2.5 million in net income over the last two years. Also, the net worth of the company must not exceed $7.5 million. Loans must be used to purchase improved real property, vacant land with the intention of constructing new buildings, renovating existing buildings, or for purchasing long-term equipment or machinery.

So many small businesses can benefit from this helpful guaranteed loan. If your small business meets the eligibility mentioned above, and you are ready to start expanding your business, look up your local CDC and find out how you can get access to money that will help your business grow.

The Toll of Severe Weather

Severe weather conditions can spell disaster for a small business that depends on the day-to-day routine of production and sales. Days without production causes inventory to deplete, go stale, or even become damaged or destroyed. Missed sales are another cause of economic loss when employees are not able to be at the business to take or fill orders.

And what if worse should happen? What if a storm causes physical damage to equipment, machinery, or your owned property where you do business? All these instances are being felt after the recent storms in February 2010 across America. The good news is that there is help available to small businesses who suffer from the effects of storm damage.

Help for Your Impacted Business

The Small Business Administration (SBA) has programs that provide disaster loans to small businesses with this type of damage. One category is Business Physical Disaster Loans, which are available to any size of business, including non-profit businesses, churches, and private universities. These loans can be used to repair property that was damaged from a disaster, including real estate, equipment and machinery, supplies, and inventory.

Another category of SBA disaster loans is the Economic Injury Disaster Loans. These loans were created to help small businesses through disaster recovery by providing working capital. Businesses that have lost cash flow due to lost sales and other disaster expenses can stay afloat with the help of this low-interest loan.

These loans are available in regions that have been declared disaster areas. Many times, a severe storm, such as the recent widespread winter snow storm, is cause for a disaster. If your business has suffered economic loss due to physical damage, or even lost sales and cash flow, you can seek help from these low-interest loans up to $2 million.

Safe Backup with IoSafe Solo SSD

Backing up your electronic files and data is of major importance. But what would happen to your data if your external backup storage suffered damage from a major disaster?

The new IoSafe Solo SSD is a solid-state hard drive that you can use to safely backup your important data. According to IoSafe, it can withstand up to 5,000 lbs of pressure, temperatures up to 1550 degrees, and last 30 minutes submerged in 30 inches of water. Prices range from $499 to $1,250 for a 64 GB up to a 256GB size.

Take Your Wireless on the Road with the Sprint Sierra Wireless Overdrive

For just $100 and a 2-year service contract, you can take your internet anywhere. The new Sierra wireless router provides both WiMax and 3G signals for up to five devices simultaneously.

Easy Presentations from Your Blackberry with the Blackberry Presenter

Your sales staff no longer needs to lug a laptop to every presentation. Simply use the new Blackberry Presenter device attached to any Blackberry PDA and give your presentations anywhere. The device allows easy connection from a Blackberry to any projector or monitor so your presentations can be delivered easily from the palm of your hand without the setup of a laptop. This new device costs about $199.

Fast Presentations Anywhere with a New LG eXpo Projector.

Now you can literally give an elevator pitch and presentation from your phone. The new LG eXpo is an AT&T exclusive Windows Mobile smartphone that sells for $250 (with a 2-yr AT&T service contract), and it comes with an optional $179 projector.

Now you no longer need a laptop, monitor, or heavy projector. Just set up the mobile device and attachable projector on any flat surface to get an equivalent 66 inch diagonal display. Give a sales presentation, show financial spreadsheets, and even view pictures of the kids from the palm of your hand.

CES certainly debuted its fair share of 3D TVs and gaming advancements, but there are gems that can enhance the productivity of your small business as well.

Who is the lipstick entrepreneur? No, it’s not those who sell fashion makeup from home. Rather, it is the term coined for the growing number of independent businesswomen.

Booming Numbers of Female-Owned Companies

The numbers of women entrepreneurs have risen sharply in the last few years. According to a report by The Future Laboratory, a leading European trend forecasting firm, there has been significant growth in women-owned businesses over the last 12 month period. More than 1 million women are solo entrepreneurs in the UK, and the report expects that trend to double by the next decade.

In the US, the new book by Michael J. Silverstein and Kate Sayre, Women Want More, states that the number of women-owned businesses are expanding at twice the rate of those started by male entrepreneurs. These numbers point to the trend that not only are women starting businesses to help meet expenses, but they are seeing an available place in the general market that have been left by male entrepreneurs.

Raising Kids and Making Money

The old paradigm of women staying home simply to take care of the children is long gone. Rather than just give up working completely when they decide to have kids, women have started forming home businesses to continue working for themselves while they remain home with the young ones. Whether it is part time or full time, women entrepreneurs are finding that they can have a job and raise kids too.

Whether it is to break the proverbial glass ceiling, or just prove that they can make a difference at home, women-owned businesses are definitely the trend setter in home-based opportunities. Look for these numbers to rise in the next few years, and for the lipstick entrepreneurs to become a monumental part of business in America during the next decade.

Which are the franchises that continue to lead the pack? According to Entrepreneur Magazine, who has just completed their annual ranking of the top 500 franchises, here is a look at the top five franchises that you might see in 2010.

Subway

Subway has been in existence since 1965, and it has offered franchise opportunities since 1974. There are currently 22,525 franchise locations in America and almost 9,000 in foreign markets worldwide. Costs for starting a Subway franchise can be anywhere between $85,000 and $260,000, and the franchising fee can be financed. Subway has been the top-ranked franchise for the last five years.

McDonald’s

Since 1955, McDonald’s has offered successful franchise opportunities with a streamlined business model and process, as well as obvious worldwide branding. In 2009, there were over 12,000 American franchises and over 13,000 franchises around the world.

While McDonald’s is still seeking additional franchises, expect to have plenty of capital available if you wish to start one. Typical startup costs are about $1 to $2 million for a single store with no in-house financing available.

7-Eleven

7-Eleven Inc was founded in 1927 in Dallas, Texas and began franchising in 1964. Today 7-Eleven has over 30,000 stores worldwide, with 6,378 in the U.S in 2009. Franchisers must have a net worth of at least $127,000, and depending on whether the store is rented or newly constructed, startup costs can range from about $40,000 to $775,000.

Hampton Inn & Suites

Hampton Inns started in Tennessee in 1984 and found a niche with their affordable 2-room suites. Franchises in the U.S. total 1,595 in 2009. Although there are no net-worth qualifications, an entrepreneur must still have industry or general business experience, as well as $3.7 to $13 million for startup costs.

Supercuts

Supercuts have offered quality, streamlined hair salon services since 1975 and franchise opportunities since 1979. Its popularity continues to grow with over 1,000 units in the U.S. in 2009. Although this appears to be a seemingly simply retail franchise, expect to have $300,000 in net worth with high liquidity, as well as an ability to invest in startup costs of $111,000 to $240,000.

The one common trait of the top five franchises ranked by Entrepreneur is that they have all stood the test of time, generating revenues for decades. While their proven track record may translate into higher franchise fees, these top five franchises are also more likely to prove profitable for you in the long-term.

The Gloomy Situation

Many small businesses in California were simply trying to wait out the economic crunch, hoping for a light at the end of the tunnel.

But the light never came.

Small business lending and lines of credit simply disappeared and dried up with banks fearing additional defaults, and consumers stopped spending except only for necessary items. Many of those small business owners tried to wade through the economic crunch by obtaining loans and lines of credit where they could find them. However, small business lending became tough with stricter personal guarantee or co-signer requirements.

Unfortunately, as of the end of Q3 2009, about 19,000 small businesses have filed for bankruptcy. This number is strictly based upon small business bankruptcies alone, and it does not account for the numerous individuals who filed for personal bankruptcy because their sole proprietorship business failed.

2,229 small businesses filed for bankruptcy protection in September, 2009, which was up from 1,503 in September, 2008. Many more small businesses are not included in these figures because bankruptcy attorneys consult their clients to file personal bankruptcies, which are easier than small businesses bankruptcies.

The Sunnier Future Ahead

Although 2009 was tough on small businesses, those who have managed to survive will find it easier to obtain low-interest loans with the 2009 economic stimulus plan in effect. More money will be guaranteed by the government for small business loans. In addition, the Obama administration has asked for the elimination of capital gains taxes on new investments in small business stock, as well as tax incentives for small businesses to hire new employees.

This news is encouraging, especially since California is experiencing the largest failure rate of small businesses. Hopefully, with the money coming from tax incentives and loan guarantees, California will soon see a reduction in small business failures and once again be on the road to economic recovery.

The Small Business Lending Situation

Two years later, how are major banking institutions treating small businesses, and are they extending loans to the largest employer sector in the country? The answer is yes.

In 2009, major banks did manage to make small business lending a priority, and it appears they will continue to do so in 2010, according to a study sponsored by Fox Business. Bank of America and Wells Fargo were the leaders in small business lending in 2009 with $12 and $13 billion respectively. B of A did disclose that they wrote off $2.5 billion in loan losses due to defaults, but were working to modify about 49,000 loans.

Wells Fargo said that small business lending is doing so well they hired 5% more additional banking staff for a total of 31.500, and the bank plans to hire 700 more staff members in 2010.

JP Morgan Chase said they extended $6 billion in loans to small business in 2009, and they plan to increase that amount by 67% in 2010 to $10 billion.

The Power of Small Businesses

A small business is defined as a firm with annual sales of less than $20 million. Although Fortune 500 corporations tend to dominate the news with Federal bailout funds, it is the small business sector that helps make the country run at its optimal financial level.

Small business in the U.S. cannot be discounted as a major economic contributor. As the largest employer in the country, small business is a key factor to the economic recovery. And major lending institutions have taken note. Look for new legislation to be passed in 2010 that will make it even easier for lenders to extend loans to small business.

The Dangers of “Free Trials”

Recent national news stories have been broadcast highlighting victims who felt they were conned into signing up for subscription services just by ordering a “free trial” of a product. Little did the victims know that by ordering the free trial, they were also signing up for other paid subscription services that they had no intention of purchasing.

How did that happen? The website operators firmly believe they were clear about their terms for subscription services. However, customers do not agree, and neither does the FTC.

The FTC Crackdown on Online Free Trials

In August, the FTC began shutting down websites that they felt were deceptive. One example was a site offering free help to obtain federal grant money. However, customers simultaneously signed up for unrelated services like insurance or identity theft protection if they didn’t “opt out” within a few days.

The FTC states that automatically enrolling a customer in a paid service through a checkout without clearly stating what the customer should expect is unacceptable. That means businesses cannot auto-check boxes for opting in, nor can the box be hidden “below the fold” of the screen monitor.

Partnering with Visa and the Better Business Bureau, the FTC has set up an alert and published tips on how to protect consumers from deceptive marketing scams. Visa has posted that they are more than willing to reverse fraudulent charges made by deceptive marketing practices, and the FTC is cracking down on businesses who are running these types of scams.

Should You Change Your Website?

So what can you do? If you offer free trials with an additional enrollment requirement, be sure you highlight to the customer what their responsibilities are. Clearly state whether you intend to make recurring charges if you collect their credit card number during the checkout process. In addition, give customers more than a few days (or hours) in which they can “opt out” of an enrolled service. In the end, you will have more happy customers and avoid getting shut down by the FTC.