small business connections: marketing meets microfinancing workshop - austin
DESCRIPTION
Yelp and Accion have teamed up with the NYSE Big Start-Up to host a series of free workshops that provide small business owners across the U.S. with resources to help finance their entrepreneurial dreams and increase their online marketing power by learning best practices for engaging with online review sites. This presentation was delivered by Yelp and Accion staff members to over 50 business owners in Austin on June 16 at Tech Ranch Austin, 9111 Jollyville Road #100, Austin TX 78759.TRANSCRIPT
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
10
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
Page 12
13
LinkedIn is B2B Social Networking
Marketing Your Professional Skills
Page 14
Connecting With Other Professionals
Page 15
16
Twitter is Micro Blogging
The Sprinkles Example
Page 17
18
Facebook is Social Networking
Create a Facebook Page for Your Business
Page 19
Local Business Example
Page 20
Demographic Information
Page 21
22
Yelp is Transactional Social Media
Yelp by the Numbers
$864
Page 23
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.
Page 24
Consumers on Yelp are Affluent, Educated Adults
Page 26
Biz.yelp.com
Claim your page here
Log in here
Improve your business page. That’s free!
Page 28
Connect With Your Customers. It’s free too!
29
Engage Diplomatically
Page 30
Don’t: Freak Out
Page 31
Case Studies in Freaking Out
Page 32
The Right Way To Do It
Page 33
The Right Way To Do It
34
Myth: Consumers are more likely to share negative experiences.
Page 35
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
Page 36
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
Page 37
“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.
39
Tip: It’s ok to let people know you’re on Yelp, but don’t solicit reviews.
Page 40
Search Advertising
Page 41
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.
42
§ 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
44
OVERVIEW
§ STEPS TO STRATEGY § STORIES FROM THE FIELD § HOW WE CAN HELP
45
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
46
STEP 2: UNDERSTAND THE 2 C’S
CUSTOMERS!
COMPETITION!
47
§ 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
48
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
50
Loan amount: $85,000 Renovations and Marketing
WHAT ARE YOUR MARKETING STRATEGIES?
53
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)
54
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
55
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
56
IMPACT SNAPSHOT: Austin Businesses We Serve
57
58
Please contact us: § Jud McGehee,
Vice President Central Region § [email protected] § 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