Map of Arkansas with Facebook Icon OverlayArkansans “Like” Facebook – Does Your Small Business?

As most anyone reading this blog knows, last month Facebook announced reaching the 500 million mark worldwide.  In the United States, Facebook continues to grow  as well… across all age groups.  Today, slightly more than 4 out of every 10 Americans are logging in on Facebook.  Of the estimated 305,921,000 Americans, the most recent figures show 131,567,700 are involved with this social media network.   And…small businesses across the country have been quick to capitalize on this unique opportunity to market their products or services to potential customers with Facebook pages.

But…that’s fine if you live in a big city like New York, Dallas, or San Francisco but what about little ole’ Arkansas?  We usually trail the country in most statistics that matter…surely we are behind the pack when it comes to social media…or are we? 

I decided to find out whether Arkies “LIKE” Facebook in sufficient numbers to make it worth a small business owner’s time.  The numbers indicate…YES, especially if your target market is between 20 and 54 years of age.  Using population estimates from DemographicsNow and Facebook statistics from two sources: checkfacebook.com and Facebook’s own statistical data available from “Advertise on Facebook”, I found out that while we are below the national average we do have a very respectable showing. 

 Arkansas Population by Gender to Arkansas Facebook Users by Gender Better than 1 out of every 3 people you meet in “The Natural State” is logging on and Arkansas ladies are actually more likely than their sisters across the country to connect with friends and family on Facebook.

  • Women make up 51.2% of the state population
  • Women make up 56.7% of the State Facebook users
  • Women ON Facebook in the state make up almost 40% of the total state population

Men in Arkansas make a good showing but are less likely than their male counterparts across the country to log on –41.9% for Arkansas compared to 43.5% nationally.

Since many small business owners have told me that “only high school and college kids” are using Facebook, I thought I would try to find out if it is just youngsters or is Grandma chatting up socially too?   While Arkansans under 24 do make up a large part of the total state Facebook population, as would be expected… a surprising number of Gen X, Baby Boomers and older are there as well. The following table provides a break out of Arkansans on Facebook by age categories. 

 Bar Chart Arkansas Population by Age to Facebook Users By AgeAs would be expected younger age groups are more likely to be on  Facebook than older demographic groups but a surprising number of Arkansans 45 and older are logging on and getting social! 

As a business owner in Arkansas IF my target market group are between the ages of 25 and 54Table Arkansans by Age Category Population Total to Faceboo there should be NO QUESTION… customers and potential customers are significantly more likely to be on Facebook…maybe I should be too!

I was particularly surprised by the bar chart to the left. Where the light brownor tan represents each age category as a percentage of total state population and the dark brown shows each category’s contribution to total state Facebook numbers. 

The Implication for small business owners in Arkansas is pretty clear…especially those who segment their customers into target markets based on demographics such as age groups or gender.  If your target markets include Arkansas households where the customer is between age 20 and 45 there is a significant probability that your customers are on Facebook (categories where % of Facebook users by age is equivalent to or greater than that category’s percentage of total state population (i.e. customers age 25-34 make up 12.9% of total state population but make up 21.7% of Facebook users)  While I am not advocating that our small businesses quit their current marketing tools, I would certainly suggest that integrating social media marketing tools such as Facebook may be a innovative way to reach out to customers in a cost effective manner that can drive sales. 

THE NUMBERS ARE IN, ARKIES “Like” Facebook and it spans the generations.  Social Media Marketing has unique features that will allow any small business owner, EVEN IN ARKANSAS, to find and communicate with potential or existing customers in extremely cost effective ways. 

But…I hear the rebuttals now…”well that may be alright for Little Rock or the Fayetteville area but what about us little business guys in Possum Grape or Oil Trough?  Can a small rural business really use social media networks like Facebook effectively? ”

GREAT QUESTION… stay tuned for our next blog article!  I pulled demographic and Facebook user information for all 15 of the counties in the ASU Small Business and Technology Development Center’s “trade zone” to see.  The answers MAY surprise you.  Pie Chart Arkansas Facebook users by Age Category

Got questions about social media marketing in general or about how small businesses in Arkansas can use Facebook as an effective low cost marketing tool?  the Arkansas Small Business and Technology Development Center network across the state can help you get the information you need from our free and confidential business consulting assistance to our low cost small business seminars.  To find a center near you or for more inHerb Lawrence, ASU SBTDC Center Directorformation visit our state website and see how the ASBTDC network can help your business grow.

 

      Herb Lawrence is the Center Director for the ASU SBTDC  helping small businesses and entrepreneurs in Northeast & North Central Arkansas achieve their dreams for over 14 years.  Connect with Herb on Facebook or e-mail  hlawrenc@astate.edu.

 

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Logo of U.S. Small Business AdminstrationU.S. Small Business Administration’s ARC Loans…The End is Near!

 Have your customers still NOT gotten the memo that the economy is supposed to have picked up AND they should be spending money at your business?  Are you still struggling to keep your doors open juggling Picture of man holding Ticking Clockoperating expenses with existing business debt?  In that case you should look into the U.S. Small Business Administration’s America’s Recovery Capital (ARC) loan programBUT Tick Tock time is running out!

 The ARC (America’s Recovery Capital) loan program is set to expire with the end of SBA’s fiscal year, September 30, 2010.  According to our sources, money should still be available through September 30thHowever, the ARC would need to have been approved and assigned a loan number on or before September 30th to be considered eligible for the program.

 For those of you unfamiliar with the program (or who have forgotten about it), the ARC was “intended to give existing, viable small business that are suffering immediate financial hardship some temporary financial relief so they can keep their doors open and get their cash flow back on track, retain existing jobs, and ultimately grow in the future.”  The ARC is:

  •  A deferred-payment loan of up to $35,000 to be used for principal and interest payments on existing, qualifying debt/loans. 
  • Lenders receive a 100% guaranty from the SBA
  • The SBA does not require the lender (in fact discourages) to attach collateral assets
  • Repayment of the 100% guaranteed loan is deferred for 12 months and
  •  is re-paid over a five year period. 
  • the Small Business borrower pays Principal only, interest is paid to the lender by the SBA.
Picture Laura Miller ASU SBTDC Lead Consultant

Laura Miller, Lead Consultant ASU SBTDC

 Businesses that need financing assistance but do not qualify for the ARC can be considered for the SBA’s traditional 7(a) loan program.  For more information about the ARC and all SBA loan programs, visit the SBA web site at www.sba.gov or contact Laura Miller or Robert Bahn at the ASU SBTDC.  Our consultants at the ASU SBTDC developed a pre-loan check list and guide that shows the small business the documentation they need to complete or attach as well as detailed guidelines to eligibility.  If you would like to have one of these ARC Pre loan Application Packets e-mailed to you contact the ASU SBTDC at (870) 972-3517 or e-mail us at asusbtdc@astate.edu.  At the present time our sources at the SBA are unsure whether or not the program will be renewed for the fiscal year beginning 1 October so if you believe your small business could benefit from the ARC program you need to begin the process TODAY!

As of August 13, 2010 over 8,000 ARC loans had been approved for small businesses across the country.

By Laura Miller, Lead Consultant, Arkansas State University Small Business and Technology Development Center

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Gorrila at computer answering telephone

We Got Your Questions Right Here!

Small Business Looking for “Google Love” for his Website – Improve SEO

We get a lot of questions about websites and especially how small business owners can improve their web presence with search engines to “get found“.  This question is one that I am sure a lot of our readers, small business clients and friends have so hopefully this will provide you with some good tools to get those “virtual bread crums” working for you to have folks find you on the Internet.  Again I have polled our Internet Marketing experts for their input. 

Hi Herb,  In a conversation I had with you, a mention was made of a program that someone in your group has that assists in SEO.  I’m able to get on Yahoo’s first page, but Google and Bing don’t seem to “share the love”.  I have built the site in question with WordPress.  who is a person I can contact to help me get pointed in a better direction?  Thanks…signed “Looking for Google-Love” 

Dear Google Love, good question especially for a small business trying to find ways to help on-line search locate your website.   Regardless of whether you are B2C or B2B (business to consumer or business to business) your potential customers are hitting Google, Bing, Yahoo, and other search engines as their FIRST resource when looking for information about a business, a product or service so knowing how to leave those “virtual bread crums” to help the search engines serve your website up to those surfers is absolutely critical.  And… it doesn’t happen by “luck”.  It happens by careful website optimization.  Our friends at Hubspot.com have a lot great blog articles, pod-casts and more to help both novices and more experienced Internet marketing folks improve their ability to “get found”.   From what I have learned attending Hubspot’s Inbound Marketing University series web optimization depends on two main factors: 

  1. Having the right Keywords and optimizing your pages around those keywords
  2. Inbound links -other sites that find your site to be of value and link to you.  Today, while keyword are still important links have taken over as a major part of having Google nano-bots move you up the food chain and of course more difficult for small businesses, especially if they are local to get.

Keywords are still critical for your website so knowing the types of words your potential customers are banging into their search engine is the first place to start.  If you aren’t sure then one of the first places to go is Google Insight for Search.  Great free tool by Google that allows you to input words you think your customers may be using and then see what other similar key words they are actually using.  For more information about keyword search try this Hubspot Blog article “Keyword Tips”and forgive a blatant “advertisement for the SBTDC” but you may also want to attend our next Google Tools & Alerts seminar where we show attendees how to find keywords relevant to their business, industry, etc. 

 Google Insights for Search 

While Keyword account for about 25-30% of the juice today the majority of “oomph” comes from inbound links to your website from other sites.  Google and the other search engines figure if a number of other sites are linking to your website there must be something there worth knowing about and will give more weight to those.  Before you run out and try to get a bunch of folks to link to your site however, it is all about authority.  So if your cousin who blogs about underwater basket weaving links to your site (but our site has nothing to do with underwater basket weaving)  Google will not give you nearly as much consideration as if a website in your industry with authority finds your content interesting and links to you.  Worth working on but often tough for a small business especially one in a local market to acquire. 

However there are a number of other “tricks” and tools to help improve your ability to get found on all of these search engines beyond your website itself.  Here are some tools that you can incorporate that will help improve overall SEO: 

  ASU SBTDC Get Listed Locally“Claim” Your Local Listings Make sure you have gone to all the major search engines (Google, Yahoo, Bing, Best of the Web, Yelp, etc.) and “claimed” your business.  A great tool to make sure you have your local listings is GetListed.Org.  This website will help “claim” the major search engines for local listings, provide some very good FAQs and guides to make the most of local listings, and overall help in your ability to get found.   The ASU SBTDC also offers a FREE 2 hour seminar on a regular cycle Called Get Listed Locally that will help small businesses capture their local listings and grow their on-line presence. 

  • Social Media Networks – Google and the other search engines ADORE social media… and you should too.  The search engines are always looking for you to post “fresh content” and social media networks offer a great way to do that.  If your business is not using Facebook, Twitter, LinkedIn, YouTube, SlideShare, Flickr, etc. you need to get started.
  • Blogging – Don’t leave!… I know the idea of blogging on a regular basis scares the “you know what” out of a lot of folks:
    • How do I get started
    • How do I even do it
    • What can I talk about
    • What if nobody reads
    • I don’t have the time
    • etc. etc. etc.

 I understand that fear.  I postponed blogging for a long time for just the same reasons but if I had it all to do over again, I would have started blogging before I even got more fully engaged in the social media just because of the search potential out there and ability to add fresh content to keep the Search Engines happy (and of course improve my ranking) that can come from blogging.  Studies from Hubspot have shown that companies that blog have a significantly higher rate of visitor to lead conversion to their websites and a significantly higher Lead to customer conversion.    So it should be something you consider. 

Recap…what can you do to start improving your ranking in all the major search engines? 

  • Determine appropriate keywords and apply them correctly on your website pages, your local listing sites, your social media networks and your blog – monitor changes in what keywords people are using on a regular basis – they change
  • Look into getting some links to your website from “industry leaders” or other influencers in your industry where possible
  • By all means Claim your businesses on local listings using GetListed.Org
  • Determine the appropriate social media networks to get involved with and supply good relevant content (articles, video, photos, etc.) on a regular basis
  • Finally, consider starting a blog.  Do some homework here first to make sure you start our right once you decide to get involved in blogging.

From our Panel of Experts…. 

Christi Wharton with Wharton Website Design and Marketing suggested: 

Hi Joe, (not his real name!) looking at your site, it appears that the first thing you need to look at is your use of keywords.  Also your domain is set to expire soon.  We would recommend that you renew your domain for at least 5 years.  Check out the SEO category on our blog at Wharton Website Design and Marketing Blog for more information on how to best use keywords and to find other helpful SEO information you can use to improve your site.  Something to consider when using keywords is that today you want to use fewer but more relevant keywords for the pages on your site.  In the old days you could “stuff as many keywords into your Meta keywords” as it would hold  but today search engines will actually penalize you if they think you are cramming a lot of keywords into one page because it will look“spammy” to the search engine.  Better today to select a couple keywords for optimization on each page and use those strategically in: 

  • URL address if possible
  • Page Title
  • Headers
  • in body of content (bold)
  • Limit meta keywords to the 2 or 3 that most accurately represent that page
  • Use meta descriptions to tell reader what the page is about.  Meta Descriptions may not get SEO form the search engines but they have what we call “Eyeball SEO” because it tells the reader what your site or page is all about.

Hope this helps good luck   Christi Wharton 

Well “Looking for Google-Love” hope the was helpful to you.  While I don’t like to use our blog as an advertisement in anyway, I would suggest that you may want to contact a website designer that understands how Web 2.0 works like Christi Wharton at Wharton Website Design and Marketing for a consultation.  Websites optimized for search are significantly different than they were even 5 years ago and it is important that sites start thinking from a Web 2.0 point of view.   They are a great resource for businesses in Northeast and North Central Arkansas looking to optimize websites, integrate social media and generally be search engine friendly.  May be well worth the time to visit with her. 

I know a lot of small businesses are dealing with the same issues on optimizing their sites to have potential customers locate their businesses on line.  Hope this article was helpful.  Give us your feedback.  Thanks

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ASU Small Business Answer Help Desk

by Herb on August 9, 2010

Gorrila at computer answering telephone

We Got Your Questions Right Here!

 3 Facebook Page Marketing Questions Answered! 

Here at the ASU Small Business and Technology Development Center my consultants and I get hundreds of questions (well..at least 10 or so) each week on a wide variety of topics from social media marketing to finance to market research and more.  Of course we do our best to get responses out as quickly as possible to our clients and small business friends.  I often get the same general question though from different folks and figured:        
  •   If a couple people have asked the same basic question then more of you probably are wondering as well, you just haven’t asked us,
  • I need something to blog about!
  • I need somebody else to do my heavy lifting especially “specialists” in a particular area.

So I am going to try out a new feature for our blog where we will take the best questions we get in, contact “experts” in the field and get answers you can use.  Was thinking about calling it “Stump the Chumps” but while that may apply to me, to be fair to my friends who have agreed to be my “experts” and take time to respond to your questions we will call it “The Small Business Answer Desk”.       Just send me your questions whether it has to do with Facebook or other Social Media, marketing, market research, finance or lending and we will find the answers.  I will also omit your name, organization, etc. from the questions so even though I follow the rule “The Only Dumb Question is the one NOT ASKED”, I understand some folks don’t want their names out for public display so I will come up with a name for you that refers to your question.  We will have the questions answers on the blog and will also include it in our Arkansas State University Small Business and Technology Development Center’s Facebook Page under Discussions tab.  Join us, send questions, give us feedback and enjoy!  We had several questions related to Facebook, so thought they would be a good group to lead off for this new series:          

 First Question has to do with Posting Events on Facebook to Fans         

  Dear SBTDC Answer Guy, Thank you for the nice “Thank You”.  I enjoyed the class even though I had laryngitis that day.  I am definitely interested in more education.    I do have a question.  I have entered information regarding upcoming events on ads and pages on my profile page.  If anyone clicks on the search box at the top of their Facebook profile page, and type in our Facebook Page name, all the events are listed.  However, if anyone goes into Facebook that does not have a profile, they do not see the information on us.  Am I making sense???  We have tried other Facebook pages for competitors and the information is visible.  Have I failed to do something to prevent our information from being viewed.  I would appreciate any advice on this matter.    Thank you in advance for your assistance. Eventless in Paragould            

 Dear “Eventless” good question.  I polled our Experts for their input:          

 From:   Ask Dear Abbi, our local Social Media Marketing Diva responded:  “Abbi Siler” <abbi.siler@gmail.com> wrote:            

 Hi Eventless!    On your Facebook Page at the very top where there are tabs called ‘wall’ ”info’ ‘photos’ ‘discussion’  there should be a ‘+’  click on the plus sign and a pop down box will show several other options one should be titled ‘Events’  click on this.  This will add the Events tab to the top of your Facebook Page.  That way anyone who is accessing your page can see the events you have posted from the page.        

 You can invite people who do not have facebookto these events when editing the event.  There is a place where it says to invite people, and underneath it gives you an area to invite via email.  This is most likely the way our competitor is inviting people who are not on facebook.   However, Facebook is designed to be user friendly to Facebook users, You may also want check your page’s settings under “Edit Page” located under your logo you can click on Wall Settings (Edit) and be sure that the Default View for Wall is All Posts.    Hope this helps”           

 And Christi Wharton with Wharton Website Design & Marketing added this:            

  Dear Eventless…Can we have some clarification?  Are you posting the events on a page or her profile? And, is it just not viewable by people who do not have a facebook profile? That is how I am understanding her question. Is that right?  According to Facebook:  Events have two different privacy options depending on how the admin set up the event:         

  1.  Public Events: Anyone can add themselves to the guest list without receiving an invitation or being approved by an admin. They can see the event information and all associated content (e.g., photos, Wall posts and videos).
  2. Private Events: The event cannot be found in searches. These events are by invitation only. People who have not been invited cannot view the event description, Wall, or photos. They also will not see any Feed stories about the event.

For more information about events and privacy go to http://www.facebook.com/help/?page=829.”          Great responses Christi and Abbi, Eventless please let us know if these suggestions worked!  And of course any of our other readers with input or who want to ask additional questions should feel free to follow up!            

Second Question:  Trish from our UA Fayetteville SBTDC submitted this question which I think a number of folks have asked in the past:           

“Hey Guru’s-  Can you write on someone’s facebook wall from your fan page or will it always appear to come from your personal profile.  I believe you can only comment from your profile . . . Trish”            

Christi our Mountain Home Website wise one wrote:   “Comments on pages will are always from profiles – not pages. The only page that a page can comment on are pages that one administers.”               

 Dear Abbi responded               

Anything you post on another Business Page will appear from your personal profile. Because Pages are for Business and Profiles are for People, you will be represented as a person when interacting on other Business Pages.  One thing I always do is type who I am representing in the comment when sharing information on other Business Pages, however, I would not recommend advertising your services or business page on others as you may get flagged as spam.  Be considerate and be genuine when sharing info about your business page on other’s walls. Its always good practice to share a reason why you are posting an article or developing a relationship or rapport first!  

Third Question:  A small business person who wants to incoporate a Speciality Landing Tab on their Facebook Page wrote:       

Herb, I attended one of your Facebook seminars and really want to improve my business Facebook page with a Speciality Landing Page using the Static FBML application you had mentioned.  But everytime I try to go and get the application I “loose” it somewhere.  What am I doing wrong and do you have any suggestions on how to use it once I “get it”.  Sincerely, Frustrated in FBML Land.    I think even I am qualified to answer this one so…         

  “Dear Frustrated I ran into that problem when I first wanted to use the Static FBML applcation as well and it had more to do with not clicking the right tabs when I got to their Application site.  I found a great article from SocialMedia Examiner that even I could understand called “How To Customize Your Facebook Page Using Static FBML”.  Very handy step by step walk through and has screen shots of each step.  Follow the link to their page and follow the instructions.”       

I hope we answered our small business friends (and your) questions!  Let us know if these were helpful, if you have follow on questions or just want to post your own suggestions.  Thanks and let me know if this is something our readers will find a valuable addition to our regular blog posts!           For more information or to contact our GREAT Answer Ladies contact:   

Christi Wharton, Wharton Website Design and Marketing and Abbi Siler, Local2Social    

  

         

    

               

  

              

  

             

     

         

  

        

 
 
 
 
 
 

           

         

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Robert Bahn, ASU SBTD takes Registration for Seminar
Robert Bahn, ASU SBTDC Welcomes Attendees

 What is Your Industry “Open Rate” for Your Email Marketing Campaigns?    

Tuesday the ASU Small Business and Technology Development Center held a free 2 hour “Lunch n’ Learn” Introduction to Professional E-Mail Marketing.  We had a great turnout with  folks from a wide variety of businesses coming in from the heat .  After the workshop I had several folks e-mail me asking what kind of “open-rates”from subscribers they should expect and was there any difference in open rates across types of industries.  Great question and since I had several requests with the  same question I assume others had the same question who just didn’t ask.  And since I am starting to get the hang of this blogging thing…thought it would be a good topic for today’s blog.     

I did a Google search for E-mail Open Rates by Industry limited the search to past 6 months to get the most current data.  There are a lot of articles out there on open rates with a lot of sites offering suggestions on how to improve your open rates that you may want to visit.  But the best information I came across by types of industries came from one of Constant Contact’s competitiors  MailChimp.  In their Email Marketing Resources they had published a pretty extensive list.  I have included a sample of the chart here, notice that their information aslo covers:  

  • Click rate
  • Soft bounce rate
  • Hard bounce rate
  • Abuse complaint rate (spam report)
  • Unsubscribed rate as well

To see MailChimp’s  entire chart go Email Marketing Benchmarks by Industry from MailChimp.   At the end of the chart the writer also provides some very good tips for improving your stats.  MailChimp also had an excellent table on “Improving Your Email Open Rate” that lists suggestions to improve your open rates.       

I also found some additional industry open rate information from another site: mailermailer and their Email Marketing Metrics Report, although not as detailed as MailChimp.  Still worth visiting.       

While industry averages are always good benchmarking tool for any business trying to gauge the effectiveness of a campaign, it really isn’t so much benchmarking how you compare to the industry as it is:  

 HOW DO YOU TRACK YOUR OWN IMPROVEMENT?    

If you use Email marketing and have the tools like those provided with Constant Contact or most of their competitors you have the analytics available to you that will show 1) how many subscribers opened your email 2) whether they clicked on other links you provided, 3) used your calls to action, etc.    

So you should implement some of the suggestions on improving your open rate and then compare to previous campaigns.  If changing the Subject Line resulted in a improvement in openings then store that for future use.  If by changing the time of day the email is delivered..then change your delivery times.  You get the idea.  The real takeaway is you know what Industry averages are now, you know what the open rates were for your last email campaign now start changing some of the variables (subject line, from line, delivery time,  image issue, etc) and compare.     

Hope this article was helpful to all of our small business friends who came to the workshop Tuesday and to any of our readers who use Email marketing even if you didn’t make the workshop.  We have another Professional Email Marketing Seminar coming up on the ASU campus on Tuesday, August 17th from 1-4 pm that you may want to attend.  More information about the workshop can be found at Professional Email Marketing Seminar.

Love to get your feed back on this article so please leave comments, suggestion, questions, etc.  and feel free to share with a friend.

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It’s ALL About Your Customer

by Herb on July 28, 2010

Don Fitzgibbon Guru of Ads

Our Guru Speaks

 WHAT’S REALLY ON OUR CUSTOMERS MINDS?

I had an opportunity today to sit in on a seminar here on the ASU campus hosted by Tim Ingram and Howell Westbrook from our local television station, KAIT. The KAIT marketing department brought Don Fitzgibbons, the self-proclaimed “Guru of Ads” senior consultant at Jim Doyle & Associates to speak on “The Fourteen Rules of The Guru”for successful advertising to a group of small businesses here in Jonesboro.    

Don “The Guru” made a very entertaining presentation with good comments about what works and what doesn’t work in broadcast advertising.  During his presentation he outlined his  14 Rules with a number of great examples.  I will not rehash all of his rules.  You can find them at his website http://www.guruofads.com and click on the “secrets” tab.  It is worth the time to surf his site there is  lot of valuable information for small businesses to consider about their advertising messages.  A couple points I want to pass on to our small business friends who couldn’t attend were:   

  • “In the old days the MEDIUM was the message”  TODAYthe MESSAGE IS the message“.  In other words, we get so wrapped up in what channel to use that we forget that the most important part is the messageyou are trying to convey to your target audience.  The question is how much time do you spend thinking about the message you are trying to get across and HOW important is that message to your viewers?  Another example of getting so involved with our TOOLS we ignore the BIG PICTURE
  • The other point, one of his 14 rules is to Identify the Point of Entry of your CustomerWHAT IS ON THE BRAIN of your customer when he (or she) walks in the front door of your store? Lands on your website, blog or social media network?  Exactly WHAT is it that your customer REALLY cares about? What gets that customer in the door?

He used an excellent example of the Running of the Bulls in Pamplona, Spain.  Every year bulls are turned loose to run through the streets of Pamplona en route to the arena.  Spectators have taken to running with the bulls, many having too close a brush with their horns for my taste.  BUT… the real question is WHAT MAKES THOSE BULLS RUN through the streets and INTO the arena?  The bulls don’t realize that once they are in the arena by the end of the day they will all be so much ground chuck…no the reason that the bulls run is… the organizers run COWS ahead of them.   

The bulls aren’t running up the streets and into the arena for National Pride, or because its the running of the bulls day, or even because they want to gore somebody. The reason they run “hell for leather” up those streets, turn into the arena is because they want to spend some quality time with “the ladies”.    

So the take home for us in identifying the Point of Entry is that WE must IDENTIFY the reason our customer makes contact with us.   

  • What is on the customer’s mind…not yours. 
  • What Need or Want does your customer have that he or she thinks visiting your business will satisfy? 

 Believe it or not… your customer isn’t interested in the FEATURES of your product or service they are interested in how they perceive your product or service is going to SATISFY some need or want that they have.    

The take home…   

  1.  Identify your customers needs and wants,
  2. craft a message that show the customer how YOU can satisfy those needs and you probably have a sale. 
  3.  Concentrate on features and benefits you probably lost the customer.

Don made a number of other excellent points that every small business owner should consider when crafting their marketing messages whether using newspaper ads, broadcast ads, bill board, websites, blogs or even social media.  Good seminar, thanks to KAIT Region 8 for hosting it and bringing us “The Guru of Ads” it was time well spent.  Visit his website and you will pick up a number of other good ideas for  your marketing tool kit.   

Let me know what you think. Good article? could be better? leave me a comment or a question.  Thanks for reading.

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Veteran owned small business, Service Disabled=
Lunch n’ Learning from other Veterans

After a full day of sitting in on different sessions about Veteran Owned Small Business opportunities in Federal Government Contracting and talking to at least half of the 3,200 attendees (well maybe not that many but a lot!) I came away realizing this isn’t an easy process.  So many Federal agencies looking to buy products and services – everything from paper clips to toilet paper to janitorial services to construction to space ships!  The Federal government spends BILLIONS of dollars a year as a CONSUMER probably of the stuff you are selling.

But it isn’t for the faint of heart… I thought after 20 years in the U.S. Army we had a lot of Jargon and Acronyms but Federal Procurement has a language all its own.  So if you think this is an opportunity for your small business you are going to have to learn to speak an entirely new language.   So get ready to spend a lot of time reading and learning before you stick  your toes in the procurement swimming pool.

At lunch I was lucky enough to sit with eight attendees representing a wide variety of businesses and all had been involved in procurement for several years.  When I asked them WHY do business with the government? What advantage is there for a small veteran owned business they generally agreed that procurement could:

  • Be a great way to DIVERSIFY your existing customer base
  • Cover your overhead costs
  • Even out cash flow

veteran owned small business, service disabled=But it isn’t a silver bullet that will solve your business problems.  Because the purchasing agencies want to know about past performance it is not the place to go to jump start your business or to save your business if you are on the ropes financially and with the exception of one lunch partner who sells some “black ops” secret squirrel stuff to the military, you should not consider the Federal government as your sole source of revenues.  When I polled them about what made a successful candidate for procurement again these savvy business owners agreed that you need:

  1. A business plan
  2. To be able to segment your market and locate specific target market segments to offer – just like you segment your potential non-government customer base you need to determine which government agencies need your product or service and break them into separate groups. 
  3. Have a good handle on your businesses financial situation and a full understanding of your financial health- potential government buyers will be concerned that you have the financial strength to pay your bills while you service the contract you win.
  4. Start learning everything you can about the basics of Federal procurement before you start the process such as attending this conference. 
  5. Patience - most agreed that on the average it will take 4-5 years before your business will start to see real profit potential in Federal contracting so you need to be able to survive with your existing customer base until that time.

There are a number of great sources out there for veteran owned small businesses to read, agencies designed to help walk a “newbie” through the process and government sources to use (such as the U.S. Small Business Administration’s website on Government Procurement), FedBizOps to get a feel for the types of products and services purchased as well as the types of government agencies that buy them.  In Arkansas we have a great resource for helping Veteran and non-veteran businesses with government procurement:  Arkansas Procurement Assistance Center.  Of course your local SBTDC is probably your best FIRST stop to help with finding resources for initial study, developing business plans, conducting market research and financial analysis all critical first steps. 

I even got a promise from one of my lunch partners to write out a little narrative of his adventures when he started getting involved: how he learned about procurement, contacts he made, mistakes he made and lessons learned.  So I will make those available as he sends them to me.  I will also be posting good start-up links, articles and websites to help you learn more over the next few weeks so stay tuned.

My final thoughts about Veteran Small Business opportunities in Federal contracting before I head off to find a Vegas Buffet…These veterans would not be at this conference, coming back year after year if the government wasn’t a good customer for them.  They wouldn’t put up with the red tape, forms, regulations and legal issues if it didn’t answer the basic What’s In It For Me and my Business.  And with government set-asides specifically for Veteran Owned and Service Disabled Veteran Owned Small Businesses there may be opportunities for you.

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I am writing this article from my hotel room at the Flamingo Hotel and Casino in Las Vegas attending the 6th Annual National Veteram Small Business Conference and Expo!  I know it’s a tough job but sVeteran Owned Small Businesses, Service Disabled=omebody has to do it.  I am hear to attend a 3 day 

conference hosted by Veteran Small Business Federal Interagency Council to talk about veteran small business opportunities with Federal contracting.  Over 3,000 veteran owners of small businesses and service Disabled veteran small business owners are here along with over 200 Federal government contractors and consultants.  

The Arkansas Small Business and Technology Development Center works very closely with veteran owned businessesin the state as well as with current military personnel, especially National Guard and Reserves who are considering starting a business.  So it made sense that someone from the ASBTDC network be on hand to find out exactly what opportunities exist for our state veterans with Federal procurement contracting, both as prime and sub-contractors.  

There is no question that government agencies are making a concerted effort to push federal contracts to veteran owned small businesses.  In the past year: 

  • The U.S. Department of the Army awarded over $1.7 billion in contracts just to SDVOSB (service disabled veteran owned small businesses)
  • 16.3% of the Department of Veteran Affairstotal procurement dollars went to SDVOSBs
  • The U.S. Department of the Navy exceeded$713 million PRIME contracts to SDVOSBs
  • National Aeronautics and Space Administration (NASA) awarded:
    • 1,774 contracts worth over $482 million to Veteran Owned Small Businesses and
    • 552 additional contracts worth over $211 million went to SDVOSBs

But what I plan to find out and bring back to Arkansas veteran small business owners is EXACTLY what’s involved in the process, what “hoops” do they have to jump through and can getting involved in Federal Procurement programs really help their bottom line.  I attended the opening session last night and met with a number of first time and “seasoned” attendees as well as with several government contractors with some very interesting stories.  As I progress through the conference I will be posting the information here as well as on the Arkansas Veterans Webportal, the Arkansas Veterans Facebook page and twitter.  

veteran owned small business

Veterans: Critical to the Strength of our Nation

If you are a veteran owned small business and want to know more leave a comment or if you have specific questions post them here and I will get answers before I lose all my money and have to come home!  So stay tuned.

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"market segmentation"
Market Potential for Womens Apparel to Age of Household

  Demographics of your geographic trade zone can be powerful tools for small businesses especially those selling to household consumers.  Demographic Segmentation is one of several segmentation tools that any small business can access to help them ZOOM in on specific segments of an overall market to find those groups that can be the best customers for them.       

If you are a small retailer, service or professional business do you know what your market potential is in your trade zone?  If you are a retailer in Jonesboro, Arkansas selling women’s clothing and apparels (or wanting to open one) did you know that there are 38,332 households in Craighead County (households are the basic unit for consumer sales) and that those 38,332 households are going to spend an estimated $24 MILLION dollars this year on Women’s Clothing and Accessories? And that does not include shoppers from surrounding counties who will come to Jonesboro to shop?      

Out of those 38,332 households do you know which ones are your best possible customers? Would it be helpful to your business to be able to divide those households out by categories to determine which ones are the best fit for you and which would be the most profitable? In this article I am going to show you some simple but effective ways you can:      

 Segment all the potential customers in my market area into distinct groups 

  • Determine which groups are my most likely target market(s)
  • Apply my limited marketing dollars at the target segments that meet my profile of the “right” customer for us
  • AND why this is IMPORTANT to your business success.

 Recently my consultants met with a new client interested in opening a Women’s Clothing and Accessory retail outlet in Jonesboro and was considering including jewelry in her merchandising mix along with women’s apparel.  She had a “gut feeling” that there were “under-served markets” in the Craighead County tradezone but wasn’t sure how to locate that subgroup, what the market potential was or how to reach them.  She knew intuitively of course   

"Market Research"

Market Potential to Income Level of Households

 She knew intuitively of course that households on with lower incomes obviously had less money to spend than those in higher brackets.  That women’s taste in clothing differed depending on the age of the customer as did the potential customer’s education level and type of job but she wasn’t sure how to get good information to help her make decisions OR if that information was even available.      After an hour with one of our consultants she came out of the meeting with the information she was looking for. These two tables show her not only the demographic make up of her trade zone by Age and Income but also show how many households are in Craighead County by the sub categories, how much those sub categories will spend on women’s clothing AND what that sub group’s market potential is.  Here we have one table dividing her market out by Age of Householder and the second by income levels.      

 As becomes very apparent from the two charts of market potential based on both Age of Householder and on Income Levels certain categories it confirms what our “gut” told us about who spends more than others in our trade zone but more importantly it gives good hard numbers that not only show who spends more but by how much.  A look at the graph on the right for apparel purchases in our trade zone by households it also shows for example that while households earning under $20,000 make up 23.6% of our total households in the trade zone they only contribute 11% to the total market potential.  Good quick indicator of which demographic segments may be better to attract than others.  Of course there are a number of other factors to consider and we will look at these additional factors in upcoming articles.  But for any small business that is involved in selling to households in a specific geographic area, having market potential data broken out in this manner is an important planning tool.  

With this information we can start to consider which specific subset or sets we feel will be the best for us to target.  Other considerations choosing a specific target group will have on my business planning will include:  

  • Depending on whether targeting high – middle – low income households will impact the inventory I plan to carry
  • The choice of groups will impact the type of marketing message that I will use in the media 
  • It will also impact my choice of the channels for media (different categories consume information through the media in different places)
  • Possibly even where I should locate my physical store

So determining the RIGHT target market(s) to zero on will have a much larger impact  on my planning than just which subgroup to tartet.  It will drive my entire business planning and marketing decisions in the future.   

 A couple notes:  The consumer expenditure data by demographics is based on national average and came from an e-Book that we use at the ASU SBTDC called Who’s Buying Apparel” breaking out all types of apparel and clothing accessories into groups (men’s clothing, infant clothing, shoes, etc.) and it is only one of 20 e-books we use covering a wide variety of consumer expenditures from health care to groceries to household appliances.  For more information about the topics available through our E-books contact the ASU SBTDC or put your question in the comment section of the blog!   

 Also for the demographic data we use DemographicsNow an online database with demographic information that includes states, counties, cities, even zip codes.  The report does not have to be limited to a county (Craighead) that I used here.  If we assumed our trade zone included Craighead and surrounding counties we could have just as easily included those in the review.   

 If you are a retail, service or professional business and your customer base is dependent upon household consumption the information to start your search is readily available.   

 Next time we will expand the apparel example out further to show how easy it is for a small business to really zero in by cross comparing Age to Income levels to target exact groups within both categories as well as how to determine the most likely geographic sub areas in our county to target based on their consumption habits AND how to find our competition.  So I hope you will come back to read the next installments.   

 If you found this helpful please let me know, make a comment, ask a question or share this with your small business friends.    

       

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Sam’s Club Now Has Small Business Loans “In Stock”!

Many of the"Sams Club Logo" small businesses in our area of Arkansas have told us at the ASU SBTDC that they are continuing to experience problems in getting commercial loans for their operations from “traditional” lending sources.  This problem is something that is not unique to Northeast and North-Central Arkansas small businesses needing additional financing thanks to current economic conditions.  According to  a recent survey by the National Federation of Independent Businesses only half of the small businesses who tried to secure a commercial loan last year were approved, leaving the other 50% to search for other options.

BUT… there may be some good news for small businesses looking for “micro loans” between $5,000 and $25,000 via Sam’s Club,the membership discount warehouse division of Walmart Stores, Inc.  Just this week Sam’s Club posted an announcement in a press release dated July 6th on their website http://www3.samsclub.cm/NewsRoom/Press/734

Apparently Sam’s Club, acting as an intermediary, has teamed up with the U.S. Small Business Administration to offer “micro-loans” to existing small businesses.   Sam’s Club will not be making the actual loan although potential borrowers will apply through them.  Instead Sam’s Clubwill partner with Superior Federal Group, a leading SBA lender who will make the actual loan.  The loans made will have SBA guaranties using either their “Community Express loan program” or for military veterans the SBA’s “Patriot Express Loan Program“.

While the small business applicant does NOT have to be a Sam’s Club member to apply,  membership does provide added benefits including:

Small businesses that are approved for this micro loan (regardless of whether they are Sam’s Club members or not) will all have:

  • 10 Year Terms for Repayment to keep monthly debt service low
  • No penalty fo early repayment
  • the loan can be structured either as a “Term” or a Revolving Line of Credit

Although any small business can apply, the program is placing special emphasis on:

  • Main Street businesses
  • Minority businesses
  • Women Owned businesses
  • Veteran owned small businesses
  • Micro-entrepreneurs

At the moment this move by Sam’s Club into the lending arena is a “pilot program” that they will review monthly, so may only be “on the shelf” for a limited amount of time, your local Sam’s Club may not be directly involved, BUT you can apply on-line with them by going to:

  • www.samsclub.com
  • Click on the Services tabSuperior Financial Group Logo
  • then click on SBA Small Business Loans

So what’s in it for Sam’s Club?  According to the July 7 article on CNNMoney.com, Sam’s Club test small business loans:  “If customers are strapped for cash…they can’t shop”  not to mention the $50 referral fee Sam’s Club receives from Superior Financial Group for every approved loan.  From Sam’s Club’s standpoint it makes sense as a large part of their business comes from small business owners who are members.

At the present time I have not seen any information about Sam’s or Superior Financial Group’s “eligibility requirements but if your small business has been having trouble securing some working capital, needs between $5,000 and $25,000, then this may be a good avenue to pursue!   If any of our blog readers out there give Sam’s Cluba shot….  keep us in the loop and let us know how it works out.  Or for any small businesses in Northeast or North-Central Arkansas who need assistance in preparing their loan package contact our consultants (Laura Miller or Robert Bahn) for assistance.  You can reach the ASU SBTDC consultants at (870) 972-3517 or e-mail asusbtdc@astate.edu

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