Business Information for Entrepreneurs by an Entrepreneur

In the fall of 2009, Citibank commissioned a Small Business Survey with the topic of social media. The result was a surprising answer to the question, "do you find social media helpful in generating leads or expanding your business?" A whopping 76% of the 500 small business owners with less than 100 employees said that social media was not at all helpful in promoting their business or gaining more customers.

More survey results showed that small business owners don't seem to focus on social media at all. 86% said they do not use social media sites for information or business advice.

But what if they're not doing it right?

Compare these results to the results of the Small Business Success Index conducted by Grow Smart Business. This poll showed that although 75% of small businesses had a web page on a social networking site like Facebook or Twitter, only about one in five actively used social media in their business promotion.

Only 20%? It's no wonder that so many small business owners find Twitter or Facebook not at all helpful. The ones who do find it helpful are the ones actively building a network of followers and potential customers. Although the success results from 2009 are low, 45% of small business owners do expect social media to be profitable in the next 12 months.

So who are the businesses that make social media work? It's small firms like The Grilled Cheese Truck in Los Angeles, for instance. You wouldn't think that a simple grilled cheese is anything to follow on Twitter, but the buzz about the LA sandwiches has exploded and demand is extreme. But what's the problem? The truck stops at a different location every day. Only the followers on Twitter know where the truck will be. The Grilled Cheese Truck as reached "legendary" status in all of LA, and residents from all parts of the city clamor to get to the truck when it arrives.

That is the bread social media promotions were made of, no pun intended. If you have a social media page for your business, the key is to not let it sit stagnant, hoping customers will find you. You must be creative and use social media as a way to generate buzz and acquire a following. Will your small business be profitable through social media in 2010?

Ever since the answering machine was invented, it has contributed to the stigma of many small businesses looking small and appearing amateur. Thankfully, today's entrepreneurs can rejoice! With the technology that exists today, small business owners can set up their own virtual professional answering service.

Traditional vs. Virtual Phone Answering Services

Answering systems used by big businesses can save a lot of time and make call routing more efficient. But a standard phone system requires expensive hardware, software, and maintenance costs. These high costs have made the standard internal answering system out of reach for most small business owners.

However, now companies have begun offering virtual phone answering services that do not require all the expensive setup, yet offers all the benefits of the phone systems used by the major corporations. A virtual answering service allows your customers to dial by name, extension, and leave voicemail to specific individuals. Small businesses can use a toll-free number or a local number.

Benefits of a Virtual Answering Service

The advantages of a virtual answering service are many. First, the cost advantage is considerable. Without having to spend a big outlay of capital on a regular answering system, a small business can get all or most of the features found in high-priced answering systems.

In addition, a virtual answering service gives the appearance and the perception that the business operates not as a small business, but just as big and organized as any large corporation. Although there is no reason to deceive your customers or clients that you are bigger than you are, it does, however, avoid the stigma that many small businesses get who use a simple answering machine. Why not appear as professional as possible if it helps business?

The new business of virtual answering service is a growing one - with more than $2.5 billion in revenue. As more and more small businesses find the benefits of virtual answering services, it will likely continue to grow to fit the needs of small business owners like you.

We have talked previously about the pros and cons of business credit cards. They can be advantageous, yet can cause a host of other problems, both for the business and the personal owner as well. However, using credit wisely can be a useful financial tool, and sometimes a lifesaver for a small business, especially when cash flow is in a crunch.

How Many Businesses Finance with Credit Cards?

The National Small Business Association (NSBA) in its 2009 Small Business Credit Card Survey showed that most small businesses are, in fact, using credit cards to help with business financing. While only 5% of small businesses used an SBA loan and 19% used no financing during the previous 12 months, 59% of small business respondents said they have utilized credit cards for their capital needs.

And the number of business credit cards may be surprising as well. While only 23% of small business owners who used credit cards used only one card, 77% used more than one, and even 23% used four or more credit cards.

The State of Business Credit

As far as overall debt, 34% of poll respondents said that 25% or more of their debt financing is from credit card debt. With that many business owners having credit card debt, it doesn't help when credit card companies change the rules. In fact, 79% said that their credit card terms have grown worse over the last 5 years.

When asked what changes have occurred to their credit card terms just from 2008 to 2009, 41% said their credit was reduced, 63% said the interest rate increased, and 23% said their interest switched from a fixed to a variable rate.

Unfortunately, small business owners seem to be trapped. Without the available capital from credit cards, 62% said they would be unable to expand or grow business operations, and 56% even said they would have to reduce the number of their employees.

Clearly, business credit cards might be an important element of your consistent business financing. Be sure you research the right cards and get the best terms, like the Discover business card which offers no annual fee, 5% cash back on all office supply purchases, and a smaller cash back for other purchases.

With good credit, you may be able to obtain very reasonable credit terms from almost any credit card company. If you find that credit cards are almost essential for your business financing needs, be sure you research the best card, and use them according to terms to avoid negative financial whiplash.