small business connections: marketing meets microfinancing workshop - austin

In the US, small firms represent 99.7 percent of all employer firms

SOURCE: SBA.GOV/ADVOCACY

FRAMING THE ISSUE

Small businesses employ 57% of the country’s private workforce

SOURCE: UNITED STATES SMALL BUSINESS ASSOCIATION OFFICE OF ADVOCACY

Small businesses create 13x more patents per employee than large patenting companies

SOURCE: UNITED STATES SMALL BUSINESS ASSOCIATION OFFICE OF ADVOCACY

Real job creation doesn’t kick in until those small businesses survive and grow into larger operations.”

JARED BERNSTEINNew York Times, October 23, 2011

“BUT...

NYSE — CENTER OF COLLABORATION

Issuer Companies

Small Business/ Start Up Community

American corporations want to and must be

part of the solution. Small businesses and

entrepreneurs are our neighbors, our customers,

and our futures. It is time to harness the

unparalleled innovation and creativity of

American business to find collective solutions

even more powerful than the economic

challenges we face.”

“

DUNCAN L. NIEDERAUER

Chief Executive Officer of NYSE Euronext

Small Business Connections: Social Media & the World of Online Reviews

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Darnell Holloway Manager of Business Outreach @darnelljustin #smallbizconnect

Now more than ever, consumers rely on online reviews

Source: Search Engine Land Local Consumer Review Survey (2012)

85% of Consumers Use The Internet to Find Local Businesses

The Social Media Landscape

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LinkedIn is B2B Social Networking

Marketing Your Professional Skills

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Connecting With Other Professionals

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Twitter is Micro Blogging

The Sprinkles Example

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Facebook is Social Networking

Create a Facebook Page for Your Business

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Local Business Example

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Demographic Information

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Yelp is Transactional Social Media

Yelp by the Numbers

$864

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Yelp Mobile

$864

•  Yelp mobile app is used on of 6.3 million unique mobile devices (Q1 2012)

•  Approximately 40% of all searches on Yelp come from our mobile apps.

•  Every second, a consumer generated directions to or called a business from a Yelp app.

• A photo was uploaded at least every 30 seconds from the Yelp app.

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Consumers on Yelp are Affluent, Educated Adults

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Biz.yelp.com

Claim your page here

Log in here

Improve your business page. That’s free!

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Connect With Your Customers. It’s free too!

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Engage Diplomatically

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Don’t: Freak Out

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Case Studies in Freaking Out

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The Right Way To Do It

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The Right Way To Do It

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Myth: Consumers are more likely to share negative experiences.

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80% of Yelp Reviews are Three Stars or Higher

Negative reviews play an important role too •  A variety of experiences are consistent with real life •  You can’t please 100% of your customers 100% of the time

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Quality Control: Why Some Reviews Come Down

All businesses are equal in this regard. (Advertisers & non-advertisers treated equally; filtered reviews viewable.)

Keeping Our Content Useful For Consumers

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“Yelp runs its reviews through an anti-fraud filter, with impressive results; every fake review the Texan bought was flagged by Yelp’s algorithms, though his fraudulent reviews remain up on the seven other sites.”

What’s the Secret to a Strong Reputation?

If a yelper mentions “good” customer service in a review, they are over 5 times as likely to give a 5 star review rather than a 1 star.

Source: Based on Yelp reviews as of April 2012, excluding reviews that were filtered or removed.

Similarly, nearly 70% of “bad” customer service experiences are given 1 star, compared to less than 5% that get 5 stars.

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Tip: It’s ok to let people know you’re on Yelp, but don’t solicit reviews.

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Search Advertising

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Summary

1.  The most successful businesses on Yelp focus on providing great

customer service, not soliciting reviews. Word of mouth will take care of

itself.

2. Don’t over-focus on any single review.

3. Start using Yelp’s FREE tools today (biz.yelp.com). Your business page will look better, and this can drive new customers.

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§  Q & A §  Biz.Yelp.Com

§  www.yelp.com/contact §  #smallbizconnect

THANK YOU

Every $1M invested creates

another 1,000 jobsSOURCE: ACCION USA

BUSINESS GROWTH THROUGH MARKETING

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OVERVIEW

§  STEPS TO STRATEGY §  STORIES FROM THE FIELD §  HOW WE CAN HELP

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STEP 1: KNOW YOUR NUMBERS

§  It’s all about numbers and if you know your financials you know where you are:

§  STRONG and WEAK

§  Do you have a strategy to strengthen your financial position?

§  Here are a few ways to grow: §  Reduce costs and debt §  Increase sales §  Diversify

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STEP 2: UNDERSTAND THE 2 C’S

CUSTOMERS!

COMPETITION!

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§  Secured approach: §  Rather than unsecured debt, Accion

small business loans assist in building credit, have fixed rates with no penalties.

§  Proactive approach:

§  Business loans are leveraged with equity and owner’s capital to proactively tackle stagnation and growth.

STEP 3: DETERMINE FINANCIAL NEEDS

STEP 4: FIND SOULUTIONS

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The mission of ACCION Texas is to provide credit and service to small businesses that do not have access to loans from commercial sources, and to provide leadership and service to the micro lending field on a national level.

Hupply Pupply Cafe

$57,000 Create marketing materials and outreach. Equipment and Products

STEP 5: CASE STUDIES

BIG JON PLUMBING improved his Yellow Pages ad added a yellow pages site 1000 magnets for advertising to potential clients videos made of the new water-only pipe cleaning system

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Loan amount: $85,000 Renovations and Marketing

WHAT ARE YOUR MARKETING STRATEGIES?

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Discuss!

Loan Products  

Microloans   $500 – $50,000 (Interest rate 10.5% - 18%)  

Goldman Sachs 10k Small Business  

$50,001 to $250,000  

SBA 504   $250,000 to $5M Program designed to finance long-term, fixed rates, subordinate mortgage financing for acquisition of capital assets including land, building, and equipment. (4.5-4.7% Fixed)  

USDOT LOC 75% Loan Guarantee  

$5000- $250,000 Line of Credit (Collateralized by Contract)  

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Personal Financial Information For Borrowers, Co Borrowers, and Co-Signers  

At least one   Most Recent Paystub (from all jobs -including business)  

At least one   Proof of Any other verifiable source of income  

3-4 months   Most Recent Personal Bank Statements (All pages for all accounts)  

3 years   Personal Tax Returns (Signed, all schedules needed)  

IRS Verification   Form 4506 signed  

All loans   Personal Financial Statement  

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Terms and Conditions  Term Range   1 – 10 years (average 5 years)  

Uses   Includes working capital, business purchase, equipment, inventory, leasehold improvements, business construction, real estate acquisition, commercial vehicles, heavy machinery and equipment  

Amortization   Varies, depends on the use of the loan.  

Fees   2.0% - 9% of loan amount.  

Interest Rate   Prime + 3.0% - 4.0% (max of 10%) Goldman Sachs Funds (10.5% - 18%)  

Collateral   Required-LTV to determine based on purpose of loan and type of collateral.  

Debt Service Coverage  

1.25X  

Borrower Guarantee   Personal guarantee from any individual who owns 20.0% or more of the business  

Government Guarantee  

Some products, if applicant meets government criteria will have ability to participate in SBA Community Advantage 7(a) loan program  

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IMPACT SNAPSHOT: Austin Businesses We Serve

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Please contact us: §  Jud McGehee,

Vice President Central Region §  jmcgehee@acciontexas.org §  888.215.2373

THANK YOU

Every $1M invested creates

another 1,000 jobs

Office Location: Wells Fargo Building, Suite 201 912 Bastrop Highway (183 Highway) Austin, Texas 78741