Small Business Success Index

Index Score^*		Grade
SBSI INDEX	75	C
Capital Access	67	D+
Marketing & Innovation	70	C-
Workforce	79	C+
Customer Service	91	A-
Computer Technology	74	C
Compliance	90	A-
*Index score is calculated on a 1-100 scale.

Search Articles

Recent Articles

Workforce Articles

Hiring Web Designers and Other Creatives

March 9th, 2010 :: Thursday Bram

Finding a creative professional to work with isn’t always a piece of cake — not only do you have to find someone whose talents match the project you’re working on, but you must navigate the process of working with a web designer, writer or other creative professional. The process just isn’t the same as working with a typical vendor.

Getting the Right Creative

Buying creative services isn’t really the same as most purchases you might make for your business. You can’t exactly run down to the local office supply store and pick up a logo the way you might grab a box of envelopes.

You’ll likely be able to find someone whose portfolio matches what you have in mind for your project by looking at who other people in your network rely on or by looking online. But finding that graphic designer or copy writer is just the beginning. You’ve got to check availability, pricing and a host of other questions to make sure the fit is good. The creative professional in question also needs to be comfortable.

Todd Adkins is the creative director behind Born to Design, a firm that has created brands and designs for a wide variety of clients for over 13 years. He points out that while most creative professionals have the opportunity to pick and choose projects, not that many actually do — meaning that if you can sort through the details, the designers or writer will probably be on board. “My experience has always been that it’s hard (and sometimes dangerous) to say ‘no’ to a project. So many really good projects have been borne out of a recommendation from someone who gave me a project that really wasn’t my cup of tea. Specializing is a good idea, but I find the variety keeps me, and hopefully the work, fresh.”

Common Misunderstandings

Adkins has seen numerous projects, including a few misunderstandings between clients and creative professionals. When it comes to the key problem, though, Adkins says “…The only one that comes to mind is that you can’t always drop everything and tend to a specific client’s needs right then and there. They may be used to a devoted staff for their needs, but I may already be putting out a fire for another client that really has to be wrapped up before diving in elsewhere. Patience is a good thing to have on both sides.”

If you’re used to handling most projects in-house, working with an outside creative professional can be a big adjustment.

Staying On the Same Page

The key to just about every issue that can arise between you and a creative professional is communication. Ask every question you need an answer to and bring up any concerns that you might have. If you can talk through each step (including your assumptions), you can wind up with not only a great project but a relationship that will allow you to continue to work with a creative professional for the long-term.

Photo by Flickr uUser PedroSimoes7

Share and Enjoy:

Tags: creative professional, freelancer, web designer
Posted in Workforce | Comments

Crafting A Want Ad that Will Get Answered

February 25th, 2010 :: Thursday Bram

Whether you’re looking for a freelancer or a full-time employee, getting a want ad just right can be tough. You need to make sure that you get enough responses that you can find the best person for the job, but you don’t want to have to sort through off topic responses.

Deb Ng is an expert when it comes to looking at listings. Her website, Freelance Writing Jobs, brings together want ads from all over the web on a daily basis. Ng has been sifting through Craigslist, job boards and other sites listing employment ads day in and day out for ten years. She also publishes exclusive listings and has written a few of her own.

The biggest problem with most want ads is that they don’t include enough information, says Ng. On her site, she’s constantly seeing want ads that won’t actually get companies the type of writer they need. “There are too many vague ads so potential clients are receiving a flood of applicants from writers of all levels, most of whom aren’t what they’re looking for. In order to narrow the playing field they need to describe exactly what they’re looking for. If they can include their budget, and some details about their business that will also help to narrow the candidate list. Writers and bloggers should be able to tell ‘at a glance’ if it’s the job for them.”

The same holds true whether you’re looking for a full-time employee, a freelancer, a creative, a salesman or anyone else. Provide as much information about what you’re looking for. “I try to be very detailed and include what I’m looking for and what I’m not looking for.” She also points out the importance of telling applicants what you don’t want: “Since we put out periodic calls for bloggers and, also, encourage pitches for one off submissions we get a lot of the same thing, much of it fluff. So now I’m specific. I ask for useful tips and list the topics we’re most in need of. I also list the items we’ve done to death or have no use for and ask bloggers not to pitch these ideas.”

It’s worthwhile to prepare yourself for what your want ad is going to turn up, as well: not all applicants are going to be the best fit. Ng hears plenty about less-than-perfect matches from the advertisers who post listings on her site: “…Writers don’t follow directions. Advertisers will request specific information and not receive it or ask for certain things and get something completely opposite. The biggest frustration of advertisers I deal with is writers who don’t bother to read the ad in its entirety.”

In the end, you’ll probably receive at least a few responses that aren’t good fits, no matter what. But the more information you can include in a want ad, the more likely you are to get at least some applicants who can help you take your business to the next level.

Image by Flickr user Egan Snow

Share and Enjoy:

Tags: job listing, want ad, writing want ads
Posted in Workforce | Comments

The Professionals You Need on Speed Dial

January 29th, 2010 :: Thursday Bram

As a business owner, you have to have a support staff. Depending on your business, that staff may not actually work for you — instead you have professionals in different fields that you can call on when you need their expertise. Just as you have your doctor’s number in your address book to maintain your personal health, you probably have a phone number for your CPA to help you maintain your business’ health. A few of those phone numbers really ought to be in your speed dial, however. Here are just a few numbers that it’s time you program into your phone.

Your Lawyer: Whether or not you’ve got a lawyer on retainer, it’s important to identify a lawyer you’re comfortable working with on business matters. Even if you don’t have anything on your plate right now, a legal matter may come up and you don’t want to waste time hunting around for a phone number — or a new lawyer — when you could be handling the problem already.
Your Maintenance Company: Depending on your office space, you may have access to a maintenance staff that will make repairs as soon as they know there is a problem. You may also be responsible for finding someone to do repairs for you. No matter whose name is on the account, have the number for the maintenance or repair company close at hand — since problems always seem to show up at the worst possible time, like right before a big meeting, being able to call for help can make a difference in your day-to-day operations.
Your CPA: When a financial decision comes your way, the more information you can get your hands on, the better equipped you are to make that decision. Your CPA can provide forecasts and insights that can make a major difference in what move you make. If your CPA helps you handle payroll, it’s even more important to have him or her on speed dial.
Your PR / Marketing Professional: Whether you work with an individual consultant or a full firm, your go-to-person for public relations can be critical to your plans for growing your company. And if there’s something newsworthy happening in your business, you have to let your PR person know fast! And if a surprise media opportunity comes your way, your PR professional can coach you to make the best impression for your company.
Your Insurance Provider: It’s rarely a good day when you have to call your insurance representative about anything, but any step you can take to make it easier is worthwhile. Having that phone number close at hand means that you can start the paperwork on an insurance claim no matter where you are when a problem occurs.

You want your business to run as smoothly as possible. Sometimes, that means calling someone up and handing a problem or opportunity over to them to figure out while you get back to work. Between these five professionals, you can handle the majority of unexpected occurrences that show up over the course of the day.

Photo — StephenMitchell

Share and Enjoy:

Tags: cpa, crisis, lawyer, pr, staff
Posted in Workforce | Comments

Thinking of Hiring? 5 Questions You Need to Answer First

January 19th, 2010 :: Thursday Bram

In order to grow your business in the next year, you may need a spare pair of hands. But the idea of hiring someone can be intimidating, especially if you’ve been running your business on your own for a while. You’re not just handing off responsibility for your business — you’re also taking responsibility for tasks like making sure your employee gets paid on a regular basis. These questions will help you make sure that you cover all your bases before you start interviewing applicants.

How are you going to handle payroll and other human resources tasks? As an entrepreneur, your time is at a premium. Making sure administrative tasks are completed may not be your highest priority — in fact, that may explain why you’re hiring someone. There are a variety of options for payroll, like having your CPA handle it or using a payroll service. You may not be offering benefits to your employees, but you’re still required to handle payroll taxes and Social Security.
What will your employee do? You may have a general job description in mind, but it’s worth going through and figuring out the tasks you would assign your new hire, as well as how long they’ll take. You may find that you need a part-time employee, rather than a full-time worker, or you may find that you actually have a series of projects in mind, rather than on-going responsibilities. In that case, bringing in a contractor, a temp or a freelancer on an as-needed basis may be a better deal for you.
How do you plan to communicate with your employee? There are a number of communication issues that can come up when you add a new member to your team. If you’re out of the office on a regular basis, it’s best to address that fact before you actually hire someone who you need to train and assign tasks to. If you have a partner in your business or another employee in place, it’s also important to address what the chain of command looks like in your business.
How will you reward your employee? You can get a decent idea of what’s considered market rates for the type of employee you need by looking at help wanted ads. But you may not be able to offer the type of benefits that big corporations can. While you don’t have to offer much beyond a pay check upfront, it’s worth considering in advance what you’re willing to negotiate and whether you want to do something like get health insurance for your employee down the road.
Have you read up on the process of hiring a new employee? There is plenty of bureaucracy that goes along with hiring your first employee, from getting workers’ compensation insurance, registering with your state’s new hire reporting program and verifying employees’ eligibility to work. Depending on the state your business operates in, there may be additional legal steps required by law before you can actually hire your first employee.

Photo — MadeByTess

Share and Enjoy:

Tags: first employee, hiring, human resources
Posted in Workforce | Comments

The Rise of the Homepreneur and the New Report from Network Solutions

October 28th, 2009 :: Steven Fisher

Over the last decade many entrepreneurs have turned their homes into remote offices in the early days and over time these home-based entrepreneurs or “homepreneurs” have become a force to be reckoned with. Because what many deemed a place for hobbyists or telecommuters, the home has become the affordable and sensible place to do business. With technology today, many work virtually and teams are formed from a global pool of resources, so it quickly becomes irrelevant if you have pricey office space on K Street in DC or at 30 Rock in NY but work out of your home in suburbia. Much to an entrepreneurs desire to be competitive that smart strategy can be passed on to clients in the form of lower costs and flexible teams.

This past Friday, BusinessWeek published this article on “The Rise of the Homepreneur” which discusses the findings of the report “Homepreneurs: A Vital Economic Force” which is a new report published by Emergent Research, a small research and consulting shop in Lafayette, Calif. “We’re seeing more and more home-based businesses that are real businesses,” says Steve King, who coauthored the new report with Carolyn Ockels. To prepare the report, they analyzed U.S. Census data and Small Business Administration research, along with data from our very own Small Business Success Index, a survey of 1,500 companies sponsored by Network Solutions and the University of Maryland’s Robert H. Smith School of Business.

Highlights of the Report and Download Link

The report is a good read and here are some highlights from the paper:

Home businesses employ over 13 million people.
Nearly 6.6 million home businesses generate at least 50% of the owner’s household income
35% of home businesses generate $125,000+ in revenue; 8% more than $500,000.

Reading the summary section of the report I was not surprised by the three trends why more people are becoming homepreneurs:

The lower costs and risks associated with starting a home-based business
Demographic and social shifts
A lack of corporate jobs

To find out more and read the whole report click this link to find out more from latest SBSI Research brief.

Share and Enjoy:

Tags: businessweek, emergent research, Homepreneur, SBSI
Posted in Entrepreneurs, Small Business, Small Business Success Index, Workforce | Comments

The top 10 Tips to Hire Right! By Lorne Epstein

October 2nd, 2009 :: Lorne Epstein

The top 10 Tips to Hire Right! By Lorne Epstein

I have been recruiting for 14 years and wanted to share with you my top 10 tips for hiring the right people at your organization regardless of its size or frequency of hire. I have found over my 14 years of recruiting, these 10 tips can be applied to both the largest of organizations as well as the smallest. I would ask you to compare your costs of hiring an employee who never meets your businesses needs to that of taking a methodical approach to interviewing and hiring. They are not listed in a particular order and you may find some not applicable to your situation as they are written but the spirit of point is well worth examining for your specific situation.

Source candidates who are as excited and interested in working for you as you are in hiring them. Never over sell candidates nor try and pull them from an employer just because they are successful there. There are many reasons someone is successful at a company that might not transfer to them working with your organization.
Have several “hoops” for the candidates to jump through. I recommend using phone interviews, written screening questionnaires, on-line personality profiles, and more than one in-person interview. You can come up with more screens based on what the job is.
Make a clear and speedy choice so that an offer can be made within a few days or less of the last in-person interview. The longer you take to extend and offer or rejection, the more it costs your employment brand. Set the candidates follow-up expectations by telling them what will happen after the interview and meet them.
Be honest and up front with candidates by telling them the good and the bad things about working within your organization. This screens candidates and leaves them feeling respected and treated like a professional. I believe you have a moral obligation to be honest.
Tell all candidates that you pass on to keep you in mind as their career develops. As candidates grow and develop they could make a better fit in the future. Work to make every candidate a client or add them to your newsletter, blog feed, etc.
Apply a uniform, concise, and reproducible interview and hiring process. Ensure buy-in from everyone in the hiring process. Train your staff to interview in a cohesive fashion so each interviewer is drilling down into a specific aspect of the candidate. Leave no stone unturned so that when you are done interviewing you are a clear yes or no on extending an offer. If you leave the interview with a maybe you have not done your job.
Focus on delivering an exceptional candidate experience. From the moment candidates hear about your company until they are hired or not, strive to give each candidate a Disney-esq experience so they are more likely to apply again in the future and recommend your company to their friends all of which increase your qualified pool of candidates.
Write clear and accurate job descriptions and commit to what you want applicants to do. This involves writing job descriptions that tell the applicants everything they could possibly want to know. It will help create the screen to bring forward the best candidates. If you bait and switch with the job description it will create negative street credibility, poor moral and decreased productivity.
Leverage your current talent pool to source applicants. Internal referrals put employees at stake for hiring candidates that perform and are a fit. Offer your employees a few thousand dollars to not only send their friends your way, but to qualify them before hand. Set up a process so employees screen candidates.
Take some level of responsibility in preparing candidates when they come in to interview. Let them know who they are interviewing with, about how long it will take, what to expect, and what they expect to learn about from the candidate. Set the candidate up to win. The candidate still has to prepare and do their homework, throwing up obstacles limits the learning you will have during the interview.

Thanks for taking the time to read my article. Please comment below as I appreciate any feedback you have to offer. Pass this along to other business owners if you see fit. I am available to consult with your organization on applying these tips.

Lorne Epstein – CEO of Arlington Soho, has created one of the top (http://bit.ly/abSAl) job applications on Facebook called “InSide Job” (http://apps.facebook.com/insidejob). Lorne is the author of “You’re Hired! Interview skills to get the job”, a step-by-step guide on what to do before, during and after the interview to get the job you want. You can contact him at Lorne@MyInSideJobs.com.

Share and Enjoy:

Tags: Facebook, hiring
Posted in Entrepreneurs, Resources, Rules for Entrepreneurs Series, Small Business, Workforce | Comments

Four-in-Five Workers Looking to Small Businesses for Jobs, Reveals New CareerBuilder Survey

August 21st, 2009 :: Steven Fisher

This little quote from the Daily Stat was forwarded to me by a colleague here at Network Solutions:

“22%of American workers who were laid off from full-time jobs in the last year found new jobs with small businesses. Another 59% would be interested in working for a small business, and 29% are considering starting one of their own. The potential for job growth isn’t the only reason. 56% said that a “family-like” work environment appealed to them, and 48% felt they could make more of a difference in a small company.”

It’s source is a CareerBuilder survey that found out, in addition to job growth potential, when asked what most appealed to them about working for small companies, workers pointed to:

A family-like work environment – 56 percent
More employee recognition – 49 percent
A sense that you can make a difference – 48 percent
An absence of corporate red tape – 46 percent

The CareerBuilder report went on to state “The economic situation is also fueling some workers to create their own opportunities. Of workers who were laid off in the last year and have not found jobs, 29 percent are considering opening their own businesses.”

We like to call them Unintentional Entrepreneurs. You can learn more about them on our new blog, The Unintentional Entrepreneur.

These stats seem to be in line with the Small Business Success Index that was just published and it seemed to follow the trend that small business owners are more optimistic and that more people are starting or joining small businesses.

Share and Enjoy:

Tags: careerbuilder, daily stat, jobs, small business
Posted in Small Business, Workforce | Comments

What to do if you are downsized

August 13th, 2009 :: Lorne Epstein

Today’s guest contributor from our Grow Smart Business Expert Network is Lorne Epstein. He is CEO of Inside Job and is an expert in finding a job so much so that he built an an awesome and useful Facebook app called “Inside Job”.

Get your cool on and stay calm. You will need your brain at 100 percent.

Up until the early 1990s, most employees would stay with one employer for years, possibly decades. Once companies such as IBM started to lay people off, other companies followed suit. The notion of lifetime employment was removed from the American workplace. Many of us have been tossed around from job to job regardless of our stellar performance or deep desire to be loyal and stay in one place.

Hiring managers are fully aware that you can lose your job regardless of your performance or ability to work. To clearly address any concerns they might have I recommend this preemptive action:

Early on, when you speak with the hiring manager or recruiter, tell him or her why you are unemployed (be sure to practice your narrative skills). They are looking for a story they can understand. If you leave a clear explanation until later, you lose credibility. Don’t be embarrassed that you were laid off. It happens, and the longer you work the greater the chance it will happen to you. You have earned your stripes as a contemporary American worker.

The moment you are laid off, immediately file for unemployment insurance. Every day you don’t file is money you and your family are losing. Unless you agree to not file for unemployment insurance get yourself into your state’s unemployment process, as you never know when you will need the financial resource.

Take your personal inventory

Why make an inventory of your skills? You should know them, for heaven’s sake! But if you have had your nose to the proverbial grindstone for a few years, your resume and your 30 second personal pitch will need some freshening up. You have learned a great deal over the past few years that is VERY cool and VERY valuable to your next employer.

Sit down with a friend or spouse and take an inventory of your professional and personal skills. Rank them by what you love to do and what you do well. How you can start is by taking a sheet of paper and writing down 10 (or as many as you want) things you love to do regardless of you having done them in the past for your work. Perhaps you enjoy cooking, writing, organizing, whatever, just write down 10 (or more) and the last few might take a while. Once you have your list, make another with 10 ways to earn a living for each no matter how outlandish it sounds. This is brain storming so all ideas are welcome. Once you have completed that start to circle the ways of making money that appear most attractive to you. You might find you have a few that go together well. This is an iterative process so take your time and see how many things you like and ways to make money you can expel from your brain.

Create a game plan for what’s next

Losing your job could very well be the best thing to happen to you. Why you ask? What better incentive to start the business you always wanted to; take some time to visit family and friends; rest up after pushing your body to the edge with long work hours; or any number of reasons only you and your family know. Now is the time to come up with one or more plans of action that outline where you want to go next in your career.

Check list for when you are laid off

Below is a list of things to do once you are laid off. Review it and make any additions based on your personal needs. Keep this list handy so that when you are terminated you don’t have to think, but just follow this list. Once you get laid off, your emotions will be very active and could cloud your judgment and memory.

___ Hold off on signing any legal documents that your employer gives you until you or your lawyers have read through them carefully. Never read them the day you are let go.

___ Return all company property that was given to you, including keys and computers. Make sure there is a signed document that records your return of company property.

___ Say goodbye to colleagues and keep it brief. Let them know you will be in touch at greater length in the following days or weeks. Don’t make a big production of leaving, as you have a lot to get done.

___ Create an auto-reply for your work email account so people will know what has happened to you and where they can find you. You can give out your personal email address or phone number.

___ Leave a voice message on your phone with a forwarding number so people calling your work number can find you.

___ Take your personal documents off of your computer via email or memory stick.

___ Pack your things from work to take home.

___ Drive directly to your state’s unemployment office and file for unemployment insurance. Many states allow you to file for unemployment insurance over the phone.

___ Re-write your resume and be sure to include all of your new skills. Have it proof read by at least two people who read and write English well.

___ Update your LinkedIn profile and email your friends that you have been laid off and tell them what kind of position you are looking for next. Ask your colleagues for positive references on your LinkedIn profile. You might want to give them to colleagues in order to get them in return.

___ Post and update your resume to the following job boards
___ Monster.com
___ Careerbuilder.com
___ Yahoo.com
___ Cragslist.com
___ Career TV at www.careertv.com
___ Any Web site that is specific to your career

___ Make a list of people you can call who can help you get your next job. Write them down so you don’t forget anyone. Keep notes of when you contacted them and what was said during the call. Let them know what you are looking for and ask if they can forward your resume to other folks as they see fit. Create a follow-up plan that works for them so you can keep track of progress.

___ Compose a 30 (or less) second elevator pitch that tells people what you are looking to do. If asked be prepared to briefly tell them what happened and why you lost your job.

___ Follow Job Angel on twitter and any other job sites on Twitter.

___ Google terms like Job Search and Social Media to find the latest and greatest tools on the web you can use to get your next job.

___ Find and read bloggers in your domain expertise.

___ Add your work history to InSide Job on Facebook. This is a tool that I built which helps you network professionally on Facebook. http://apps.facebook.com/insidejob.

___ Create a personal business card with your name, phone number, email address and job title.

___ Go to networking events every day or as much as possible. Collect business cards and give out yours. Use sites like www.meetup.com to find people like yourself to network with.

___ Start getting interviews and have the life you choose on your terms.

ABOUT THIS GROW SMART BUSINESS CONTRIBUTOR:

Lorne Epstein, CEO & Founder of Arlington Soho leverages his years of entrepreneurship and recruiting to inform and entertain readers looking to take the next step in their careers. He is the author of You’re Hired – Interview Skills to Get the Job, has over 20 years experience working at Corporations, Non-profits, and Government agencies. He combines his love for helping people with his skills as a coach and public speaker to help others create spectacular careers and live the lives they were meant to lead. He is creator of InSide Job on Facebook www.MyInSideJobs.com. Email @ Lorne@MyInSideJobs.com.

He is the author of You’re Hired! Interview skills to get the job and created the business networking application “InSide Job” on Facebook. You can email him at Lorne@MyInSideJobs.com.

Share and Enjoy:

Tags: Downsized Laidoff Fired layoffs quit Jobs working
Posted in Small Business, Workforce | Comments

Introducing the Grow Smart Business Small Business Expert Network

August 10th, 2009 :: Steven Fisher

Over the last month we have been reaching out to some very talented experts in small business many of them owners of their own small business. We began with leveraging our network on Facebook through the Grow Smart Business Club and asking some very smart people to contribute once a month and impart their expertise to you our Grow Smart Business blog.

We have about 20 contributors writing about topics such as capital access, small business marketing, technology and small business, marketing, pr, social media, customer service, accounting, taxes, business writing etiquette, health and wellness, generational marketing, business coaching and human resources to start. All of these contributors are experts have volunteered their time once a month to impart their wisdom and experience so you can build the best small business possible.

Starting today we will be publishing these guest contributors in addition to our staff writers and we would like to give you a preview of the upcoming week and future contributors.

Contributors for the Upcoming Week

Email Marketing and You: So Happy Together by Monika Jansen
Social Media: 10 Tips on Jumping In Feet-First Without Drowning by Michelle Riggen-Ransom
Evian babies in your face. Just like their GenX parents by Jessie Newburn
What to do if you are downsized by Lorne Epstein
The apple pie bakery that could teach you a thing or two about making a sale and loyal fans by Mayra Ruiz

Contributors Coming to the Blog in the Coming Weeks

Barry Moltz – Small Business Technology

Carla Briceno – Marketing to the Hispanic Markeplace

Carlos Diggs – Selling for Small Businesses

David McGillivray – Small Business Coach – “Coaches Corner”

Debbie Weil – Corporate Blogging

Toby Bray – Small Business Sales and Marketing

Jimmy Gardner – Small Business Technology

Erica Knoch – Small Business Marketing

Gary Honig – Raising Capital for Small Businesses

Harry Lalor – Small Business Strategy

Kristin King – Effective Business Communications

Liz Strauss – Social Media for Small Business

Pamela O’Hara – Small Business CRM

Would you like to be a contributor?

If you would like to be considered as a contributor, we would love to see if there is a fit so reach out to listen@networksolutions.com and point us to your blog or send a few samples of your writing and your bio.

Share and Enjoy:

Tags: Barry Moltz, Carla Briceno, Carlos Diggs, contributors, David McGillivray, Debbie Weil, Erica Knoch, Gary Honig, Harry Lalor, jessie newburn, Jimmy Gardner, Kristin King, Liz Strauss, Lorne Epstein, Mayra Ruiz, Michelle Riggen-Ransom, Monika Jansen, Pamela O'Hara, Toby Bray
Posted in Capital Access, Coaches Corner, Compliance, Customer Service, Entrepreneurs, Generational Marketing, Health and Wellness, Marketing, Raising Capital, Resources, Rules for Entrepreneurs Series, Small Business, Technology, Workforce | Comments

Announcing the Second Edition of the Small Business Success Index (SBSI)

August 7th, 2009 :: Steven Fisher

Earlier this year Network Solutions in partnership with the Smith School at the University of Maryland, College Park surveyed 1000 small businesses the good old fashioned way – they talked to them. The survey covered many data points and its goal was to get a baseline on how small businesses rated themselves in six key areas – capital access, marketing & innovation, workforce (HR), customer service, computer technology and compliance (accounting and tax). The results were surprising in some areas and expected in others.

With the economic crisis in full swing, access to capital scored a ‘D’ which was not very surprising, customer service and compliance rated B+ and A respectively. This showed that people felt they did an excellent job keeping records and serving their customers which was the key to managing their cash flow and retaining their customers.

Marketing, Technology and Workforce was in the surprising ‘C’ range. This showed people were still trying to find ways to effectively use their technology, working hard to innovate and market effectively and hire good people.

The Second Edition is in and the results surprise again

The second wave was collected in June 2009 from 500 small business owners. Small businesses included in the study are privately owned, for-profit, have fewer than 100 employees, and have a payroll and/or contributed to at least 50% of the owner’s household income. The data are weighted to ensure representativeness to the entire population of small businesses in the U.S. The survey is longitudinal in nature, tracking small business trends over time; the completion of the second wave provides a six month trend line.

Released on August 1, the second edition of the Small Business Success Index, which you can download here, was released and after reviewing it I have to agree with the sentiment of the report. As a small business owner myself, I can attest to the fact of how hard it is to get funding from banks. Aside from the SBA loan rescue program implemented from the TARP program over the last few months, the credit markets have really tightened up but they are improving which might account for the slight uptick

The other area where things ticked up is customer service and that reflects the focus that small business are working hard to keep the customers they have happy and impress them to get referrals which are the lifeblood of many small businesses.

Where things went down is on the “Marketing Innovation” section and that according to the report “Surprisingly, the June 2009 wave revealed that relationship to be weaker than originally thought; businesses with minimal technology were nearly as competitive as the tech-poweredones. This is likely due to falling demand in the current economic climate, which has restricted the effectiveness of companies’ marketing efforts. Internet business solutions have their greatest impact on success in the Marketing and Innovation area of the SBSI, but in an environment with declining sales, the weak economy blunts the benefits of these technologies”.

There are a few negative quotes from the report:

“More small businesses think the economic climate for their business is worsening (38%) rather than improving (25%)”.

But there are some uplifting sentiments from small business owners:

“More small business owners expect the economy to improve in the next 12 months (38%), than decline (28%).”

“As many small businesses believe their 2009 revenues will be higher than in 2008 (29%) as think it will be lower (30%), with 38% expecting revenues to be the same.”

DOWNLOAD THE REPORT and leave a comment

Download the Report at this link and take a read. We would love to hear your thoughts and if you are experiencing the same thing.

Share and Enjoy: