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The ‘New Math’ for Creative Marketing

Abstract clockworkIn the January edition of BtoB “Optimism, Accountability & Social Media” reign as the top  trends for 2010.  Some of the ideas outlined in the article weren’t suprising.  There were some gems, though, that connect the marketing dots with this economic downturn.  Here are a few that caught my attention:

Using Social Media to galvanize the company around the customer. First billed as a “marketing plaything’ Social Media is now the connective tissue to all of the departments that have a relationship with your customer.  e.g. Product development, sales, billing, customer service, etc.  How is your company integrating all of these functions using social media tools? View the rest of this posting »

Outlook for European Economic Recovery

Independent analyst Cornelia Meyer on economic recovery in Europe and which countries hold the greatest risks.  (Imprenditori)

Get Your Biz Noticed Online

Three Best Ways to Win a New Client

Many small businesses ring in the new year by taking a fresh approach to Blog - Money Treewinning new clients. Whether you plan to reinvent your company or just attract an untapped demographic, there are a few ways to achieve your goals.

First, you must identify your ideal customer. “Do you know your target?” says Tom Patty, a volunteer small-business counselor for the Orange County, Calif., chapter of SCORE. “What do they do? What do they value?” Mr. Patty, a retired advertising executive, says he worked with a video biography company that attracted more business by simply shifting its focus to younger customers—baby boomers rather than seniors.

After pinpointing your audience, reposition your message to gain those customers. Work your connections, but keep in mind, it’s tougher than ever to land deals. These days, your potential clients might be hurting or short of funding, says Mike Silverman, managing partner of engineering-services firm Ops A La Carte LLC in Santa Clara, Calif. “If you’re fairly new at this, you really have to not be afraid of rejection,” Mr. Silverman says. “You can’t give up. There is light at the end of the tunnel.”

Here are three best ways to win new clients.

1. Go where the growth is. Silverman says he attended trade shows for a few core industries that were doing well (medical, oil and gas, green technology, defense and space), and concentrated on specific geographic regions including the San Francisco Bay area and southern California. This helped the firm not be spread too thin, Mr. Silverman said. More than half of 2009’s revenue came from these specific industries, he says.

At Homestead Resort, in Midway, Utah, general manager Britt Mathwich says the hotel made a quick shift away from the corporate and training market to families, after seeing a slump in business travel. The resort picked up more business by attending home-decorating and bridal shows, he says.

Walt Maclay, president of engineering-consulting firm Voler Systems, a division of Strawberry Tree Inc. in Sunnyvale, Calif., says he attended a medical trade show in 2009 for the first time in several years, because the medical device industry is stable. “People still get sick, even in a recession,” Mr. Maclay says.

2. Ally with other businesses. Maclay also is partnering with companies that provide similar or complementary services to pick up new clients. For instance, he’s now working on two projects that combine Voler’s electrical-engineering expertise with the other firm’s mechanical-engineering specialty. Other businesses are temporarily re-assigning employees. Law firm Schiff Hardin LLP, has taken the strategy of secondment, or “lending” lawyers to companies for positions such as general counsel, says Ronald Safer, managing partner in Chicago. The partnership can help a business that may be a potential future client, and allow Schiff Hardin’s lawyers to learn that business intimately.

3. Use online tools. Reach out to others by maintaining a blog or a Facebook page with useful, educational content. Social-networking tools are also places to post promotions. Mr. Maclay says he gained new clients by posting the company’s resume on Craigslist. Marie Danielle Vil-Young, owner of event-planning company À Votre Service Events LLC, says she is redesigning her Web site to attract a specific audience—young, professional brides—by changing the site’s colors to black, hot pink and white. Ms. Vil-Young said social-networking is important; her intern’s sole responsibility is to research and write for the company’s blog.

Source: WSJ.com

Why You Make Bad Decisions

Blog - DecisionsCouple of years ago, I was a member of a conquering horde that overran another company. Or so I thought. In reality, it was the other firm that had in fact taken us over. I found this out in the simplest way possible: Every single one of my friends was heaved out the door.

The environment grew hostile — quickly — and I became fixated on the new enemies walking our hallways. But I was looking at the whole thing wrong. I was focusing on all the bad guys instead of the one good guy who might come to my assistance. Michael. He and I had never worked closely together, but we were chummy, and I realized he still had a lot of power in the infrastructure. In fact, he’d just been promoted.

The next day I dropped by Mike’s office and pitched him the biggest job I could think of. He probably thought I was incredibly presumptuous and kind of nuts, as indeed I sometimes am. But I got the job. There’s no question I would have been dead meat if I hadn’t looked at the bad situation in a completely different way. Sometimes a new viewpoint is the only solution to what seems like an impossible problem. The good news is that I can provide five new ways of looking at things that you might not have tried yet. Let’s find some hidden solutions.

Problem: The deadly threat down the hall
Larry is a very nice fellow, and very professional. Except for the fact that he’s a thumb-sucking worm. He hates you. You hate him. The problem is, you both have the same job description, pretty much. You both report to the same person, and the core demand of the job is, Make Bob happy. But every time Larry meets with Bob, you suspect he’s undermining you. When you float a plan or a project, Bob occasionally seems to have arguments against it that he couldn’t possibly have come up with by himself. He was coached. It was Larry. Larry must die. And yet he does not die.

Your new view: Strategic x-ray vision Once again, you can accomplish very little by simply gazing at this situation in the face. When you do, it melts away amid denial and hypocritical smiles. I know men who’ve detested each other for years but still attend the same meetings, smiling at each other and asking about each other’s kids. But in private, it’s trash talk. You need to develop the kind of vision that cuts through all that. Superman had it. It enabled him to find wherever bad guys were lurking and do whatever it was he was supposed to do. You can do it too. You can see through office walls and detect Larry sowing the seeds of doubt and discord. You can ascertain what kind of game he’s playing even when he’s far, far away. He is never out of your sight except when he’s actually in the same room with you. Then, of course, he’s opaque as hell. That’s okay. You know what he’s up to — and knowledge, as always, is power. And when the time is right, you’re going to use your special vision to burn through the floor and send him crashing into the basement. Hypocrisy and politics go only so far, you know.

Continue hereMen’s Health (Source)

Small Business Economic Indicators

When you’re a small-business owner, issues like whether you can afford to graphs and chartsgive your assistant manager a raise or whether your dinner bread will be delivered on time loom larger than the trade deficit and crop results. Yet, the nation’s employment outlook factors into your hiring decisions and the truck that delivers your bread runs on gas — so keeping an eye on the bigger picture can help you avoid cost surprises. “If [you know] consumers are spending more in October, that might give you a bit more confidence if you’re a retailer going into the Christmas season,” says Chad Moutray, the Small Business Administration’s chief economist.

While the economic recovery is still tentative — and credit remains tight — small-business owners could help themselves in 2010 by monitoring the macroeconomic picture. Already, members of the Board of Governors and the presidents of the Federal Reserve Banks, have projected that the U.S. economy will expand between 2.5% and 3.5% this year. Meanwhile, the unemployment rate is expected to fall to between 9.3% and 9.7% from November’s rate of 10%, and economists from Morgan Stanley expect that a more sustainable recovery will sink in, as the financial markets improve, risky assets continue to fetch higher prices, and bank lending improves.

In the absence of your own economist or strategic planning office, what indicators should you keep an eye on? Here are five that often matter most to small firms.

Real Personal Consumption Expenditures
Also known as consumption, this indicator, which tracks the inflation-adjusted price changes in consumer goods and services, accounts for 70% of the country’s gross domestic product — that is, the basic measure of a country’s overall output. Basically, this indicator will shed light on whether consumers are spending and how much. “When the public is hording money, small businesses are going to feel that more than anyone,” says Moutray.

Big companies can often lean on hefty credit lines to get them through rough patches, while many smaller firms don’t have the same luxury. (For the most recent consumption release, click here.)

Consumer Confidence
Similar to consumption, consumer confidence and consumer sentiment figures attempt to gauge consumer attitudes toward the economy. The more confident consumers are about the economy and their own financial pictures, the more likely they are to spend. “What we’re telling our clients is, closely follow the economic indicators, which can point to a recovery in demand trends,” says Bonnie Riggs, an analyst for the market research firm NPD Group. “When consumer confidence moves in a positive direction, they’ll see [business] traffic pick up.”

Check the Index of Consumer Sentiment, which is tabulated by the University of Michigan’s Institute for Social Research. Also, look to the Consumer Confidence Index, which is released by the Conference Board, a research firm in New York.

Producer Price Index
Businesses that make products will want to pay close attention to the Producer Price Index, which measures prices at the producer level, before they get passed on to consumers. This indicator speaks directly to how much businesses pay for their materials. When this indicator rises, most businesses will want to raise prices to keep up with higher costs. However, boosting one’s prices during a downturn may be counterproductive, as consumers are looking for savings. In this scenario, a business’s profit margins tend to get squeezed, says Moutray. By tracking the price changes within the production pipeline, however, businesses can anticipate possible inflationary pressures and make changes accordingly, he says.

U.S. Dollar
Another inflation gauge is the value of the U.S. dollar. When the greenback falls against other currencies, U.S. exports look more attractive to some foreign buyers. However, within the U.S. it may take more dollars to purchase the same materials — effectively, causing producer prices to rise.

To track whether or not this is happening, look to commodities prices. The price of gold, for example, often increases when the value of the dollar slides, says Moutray. A good resource for checking the price of gold futures is the Comex division of the New York Mercantile Exchange. Also, check how the dollar performs against a basket of trade-weighted major currencies, the U.S. Dollar Index Futures.

Unemployment Rate
Though it’s a lagging indicator, the unemployment rate, currently at 10%, can be useful for business-planning purposes, says Riggs. For example, because unemployed workers tend to skip eating breakfast out, morning sales have dampened at many restaurants. However, if the jobs picture suddenly improves, that could lead to an uptick in demand for breakfast and cause business owners to ramp up production and potentially hire more staff.

To get an even clearer sense of the labor market, however, Josh Lerner, an investment banking professor at Harvard Business School’s Arthur Rock Center for Entrepreneurship, suggests looking at the local unemployment rate. “We’re in a period where there is tremendous heterogeneity across regions of the country, and, as such, using a one-size-fits-all measure isn’t as helpful as local figures.” (For states’ rates, click here.)

Source: WSJ.com

Investors Try to Open Door to Foreign Entrepreneurs

Blog - Visa

A group of technology investors is trying to make Silicon Valley friendlier to foreign entrepreneurs.

The group is lobbying lawmakers for a new visa for noncitizens who want to found technology start-ups in the U.S. Dubbed the Startup Visa, it would allow entrepreneurs sponsored by a venture capitalist to come to the U.S. for two years to start their business.

Led by Brad Feld, managing director at venture-capital firm Foundry Group in Boulder, Colo., and Paul Kedrosky, a senior fellow at the Kauffman Foundation in Kansas City, Mo., along with local entrepreneurs and angel investors such as Eric Ries, the group has discussed the idea with the staff of several legislators in recent months, including Republican Sen. Richard Lugar of Indiana. Last month, Rep. Jared Polis, a first-year Democrat from Colorado, introduced immigration legislation that included the idea, saying it could create new jobs for American workers.

“This will feed into making California more competitive by encouraging new immigrants to bring ideas to California and the U.S.,” Mr. Polis said in an interview. His bill has been incorporated into another House immigration measure.

Now the investors — who presented their case at the White House last year — are turning to Silicon Valley to build momentum. This year, the group plans to prod technology professionals in the Bay Area to lobby legislators to get the measure included in any immigration bill that may emerge.

The moves come as venture capitalists and others seek to correct what they call a problem that could cost the U.S.: the growing number of entrepreneurs who are starting companies outside the country because they can’t get a visa to bring their ideas here. Silicon Valley in particular has long relied on immigrant entrepreneurs: 52% of Silicon Valley-based start-ups founded between 1995 and 2005 had a chief executive or chief technology officer who was born outside the U.S., according to a 2007 report from researchers at Duke University.

While the U.S. already has some visa programs for tech workers, such as the H-1B visa for skilled workers with job offers from existing corporations, Mr. Feld said entrepreneurs with promising early-stage ideas are often shut out. “I think it’s insane that we educate people on student visas and don’t let them stay if they want to,” he said, adding that he has come across dozens of foreign entrepreneurs who have been unable to start companies in the U.S. in the past year.

Although the potential impact of a new visa on the Bay Area’s labor force is difficult to estimate, Mr. Feld says he hopes thousands of Startup Visas would be offered annually. While the recipients’ companies might have just a few employees each, he says that any one of them could become huge successes like Google Inc. or eBay Inc. and generate tens of thousands of jobs.

Mark O’Sullivan, 34 years old, from Saskatoon, Saskatchewan, is one entrepreneur who could have used a Startup Visa. Last year, he attended a three-month incubator program that Mr. Feld helps run in Boulder called TechStars, honing his idea for a new Web discussion software service dubbed Vanilla Forums.

Mr. O’Sullivan then pitched several Silicon Valley venture firms, such as Bay Partners, about investing in the company. But those investors passed, expressing concerns that Vanilla Forums couldn’t incorporate in the U.S. Salil Deshpande, a general partner at Bay Partners, said investing in a Canadian company would have created additional tax burdens.

So for now, Vanilla Forums has decided to set up in Canada — but still has hopes of moving to Silicon Valley. “San Francisco has huge benefits” such as access to great engineers, Mr. O’Sullivan said.

Passing any Startup Visa proposal is a tall task, particularly in a still-fragile economy where fear of foreigners taking U.S. jobs remains high. Critics contend the visa could be easily gamed and that there are already many options for smart entrepreneurs to come to the U.S.

Timothy Lee, an adjunct scholar at the Cato Institute, a libertarian Washington think tank, said the plan puts too much power in the hands of immigration officials, who would effectively be deciding which ideas were the most promising. “The things that would get approved wouldn’t necessarily be the things that are most important,” he said, adding he supported the idea of increasing the slots available to talented foreigners. “I would rather it be based on more objective criteria like a degree.”

Mr. Feld said the Startup Visa focuses on adapting an existing visa category, the EB-5, which requires individuals to invest at least $500,000 in a U.S. company and create at least 10 jobs for U.S. citizens or foreigners allowed to work in the U.S. Mr. Feld wants to expand it to include entrepreneurs sponsored by qualified investors, noting that only a few thousand of the approximately 10,000 EB-5 slots allotted annually are filled.

The idea for a Startup Visa was discussed by Silicon Valley angel investors Mr. Ries and Dave McClure at a meeting with representatives for the Commerce and State departments at the White House late last year, Mr. Ries says. This year, the group plans to step up its use of social media tools like Twitter to spread the word and assemble a list of founders stymied by visa ordeals to show legislators how the visa could help create jobs.

Source: WSJ.com

What’s a Fair Sales Quota in 2010?

Setting sales quotas is one of those rituals that company owners enjoy Blog - Sales Quotaabout as much as paying taxes. For some it’s an annual event; for others, a quarterly exercise. Know this: Whether you have two reps or 200, the process is never completely scientific. It’s partly a game of chance, more so now because of the sluggish economy. So how can you improve your odds of getting quotas right? We spoke with Michael Alter, president of SurePayroll, a payroll- services company based in Chicago (and an Inc.com blogger), who has assigned hundreds of quotas over the years to more than 50 salespeople. He laid out the finer points of his 2010 sales-compensation strategy (which forecasts 30 percent sales growth) for writer Susan Greco.

How tough is it to set fair quotas?

For someone running a business, setting quotas is a challenge because you can never really win. If the goal is too easy, you pay more than you should. On the other side, if you set it too high, your sales reps don’t make any money, and they’ll leave. It’s much harder to get a quota right in a sluggish economy, and much more dangerous if you get it wrong, If you pay too much, you’ll be cutting into your cash flow. Since you can never win setting quotas, your first goal should be to try to minimize your downside, and set rules that drive the behavior of your sales reps to align with your larger goals.

So how do you set sales quotas?

At my company, there’s no one formula. We look at past performance, the experience and skills of the reps, and the market. We put them all together. The quota has to be a number economically viable to us—I have to be smiling as I pay you. And everyone has a different quota here. I expect more from someone who’s been here five years.  In a bad economy, even if you don’t always make your quota, you can make more than a junior rep who does make quota. A rep who has been here for five years is more valuable to me by several orders of magnitude. Fair has many definitions—you want to set a comp plan that’s fair for the company, yet respects the individual.

Just how challenging should a sales quota be?

I look at quota as what I’m paying you to do. Roughly 80 percent of reps should be able to make quota at any one time. If it’s much higher, there’s probably not enough of a stretch. But we’re not looking to say, “By the end of the year, our bottom 20 percent of sales reps will be gone.” It’s not that rigid, and I find that the people who miss quota are not the same 20 percent every quarter. Part of how you set quotas is making room for some to miss it some of the time.

How does your sales force work?

We have about 35 reps selling payroll services directly to end customers. They sell primarily over the phone, and have leads generated for them. We have a couple of reps knocking on doors, developing partnerships with banks. And we have three reps selling add-on services, such as employee-background checks, to our existing payroll base. We pay the inside salespeople the same as the outside salespeople. Everyone has a small base salary, and everyone is commissioned and has quotas. Commission is based on revenue generated.

Do you ever tweak quotas to help struggling reps?

Once quotas are set for the quarter, we all live and die by them. We won’t tweak them. But we design an incentive for the team to drive certain behaviors. For example, a double commission on background checks for one quarter. The old sales adage – tell me how they’re paid and I’ll tell you what they’ll sell – is true.

How do you separate sales goals from sales forecasting?

Goals are from the top down: Here’s your quota, now tell me what you’re going to do. The forecast is from the bottom up and it’s always changing. Quotas comes first.  I can get a reasonably good read on our total volume 90 days ahead. There’s lot of seasonality in our industry, so it only makes sense that we change the quotas and incentives from quarter to quarter.

What’s the biggest change you’ve made to the quota structure due to the economy?

Though the majority of our reps have a quarterly quota, we decided to switch our business development guys to an annual quota. We needed to make the change because the sales cycle is so long selling to banks, and it has grown longer by between 25 percent and 40 percent in recent years. They are paid to hunt and hunt for a long period of time.

Also, 18 months ago, we switched from straight revenue to revenue plus incentives for exceeding quota. The big change was making the bonus and kickers apply regardless of the size of your quota. Now, as soon as you exceed quota, you get a bonus based on the total of what you sold. The percentage bonus helped push newer reps along faster to that next tier, because there’s real money there. My feeling is that if I set quotas at a level that’s profitable for the company, it doesn’t matter if I’m paying my reps more.

What issues did you weigh as you set your 2010 sales goals?

We don’t have an annual president’s club any more. It’s just quarterly, but we might add that back in for reps who make quota all four quarters. We always debate whether to have a team incentive for everyone. Right now, only team captains get a team bonus.

If a company is forecasting flat sales because of the sluggish economy, it is really reasonable to expect salespeople to sell more?

You can still expect sales growth from salespeople. The question for a business owner is, if you are expecting flat or little growth, do you need as many sales reps? The same reps should be able to get more productive each year. Year One should be dramatically different compared with Year Five or Year Six.

Source: Inc.com

10 ways to get motivated for change in 2010

2010 Yellow Warning Sign - IsolatedA new decade is about to start, and you may be tempted to set a copious list of resolutions for yourself in order to broadly “make life better.”

You may be thinking that you’ll jump in on January 1 to reform everything from diet to relationships to personality.

That, experts say, is the wrong approach. It’s great to want to make changes, but in order to actually accomplish your goals, they say, it’s important to be realistic, specific, and accountable.

Here are 10 things you can do to help yourself stay in a mindset to make positive changes in the coming year:

1. Set smaller goals with smaller steps

Gradual small steps motivate people toward larger change, said Susan Nolen-Hoeksema, professor of psychology at Yale University and author of the new book “The Power of Women.”

If you want to lose weight, for example, change small aspects of your eating pattern. Resolve to have a salad tomorrow for lunch, and then do that for a week.

Write down the steps you want to take in a datebook to make it concrete, and reward yourself for making the individual changes, she said.

Let’s say you want to work on being more optimistic this year. Nolen-Hoeksema recommends imagining what you would be like if you were optimistic. Imagine yourself going through a day at work if you were optimistic and confident, then write that down in great detail.

Now, you have specific aspects of that ideal of optimism to work toward. Pick one thing that the optimistic you is doing that you’re not, and start working in that direction, she said.

2. Frame your goals positively

Despite the proven health risks of certain habits, such as smoking, thinking about a habit in the negative will not help you nix it. Studies have shown that it’s hard to get motivated about avoiding cancer, but easier to think about smelling better and saving money as reasons to quit smoking, Nolen-Hoeksema said.

So, if you want to quit doing something, think about the positive aspects of not doing it. And make sure you reward yourself for sticking to the plan along the way.

3. Look at the pros and cons

If you’re on the fence about whether you should make a change this year, make a list of the benefits and costs, said Dr. Nadine Kaslow, professor of psychiatry at Emory University.

Pay attention to what’s driving you, she said. Sometimes it’s pain that motivates people to change, or a new phase of life, or new information, or a possible promotion.

“It helps to get clear about what you want to change and why you want to change it,” she said.

4. Get a resolutions buddy

Knowing that someone else is working toward similar goals, or is supporting you in your endeavors, helps to keep motivation up. Having a new year’s resolution buddy who’s keeping track of your progress helps keep you accountable for what you’ve done.

At the end of every year, Kaslow and her friend review all of their goals from the prior year, examining what the obstacles were to change and then developing new goals for the next year.

Planning for goals with someone can guide you in the path towards change, even if you don’t don’t accomplish everything in a single year, she said.

5. Be specific

It’s easy to get discouraged by a broad goal like “I’m going to improve my marriage,” Nolen-Hoeksema said. Figure out exactly what it is that’s not working for you, and then formulate a strategy for solving individual problems.

In the marriage example, it’s important to get realistic about what it is about your marriage that needs improvement. Then, spend some time keeping a diary and tracking what’s going right and what’s not, and come up with one thing you can do per week that would help the situation.

The process of assessing the small actions you can take in the immediate future, and savoring the positive effects, can take a lot of pressure off and help you achieve larger goals, she said.

6. Know thyself

The start of the year is as good a time as any to take inventory of yourself. What are your passions? What do you want to be doing better? Take the time think about who you are and how you want life to be, said Craig Levine, a clinical psychologist in San Francisco, California.

Real change happens because you yourself want it, not because others want it for you, experts say.

“If it’s something that doesn’t connect to you and truly relate to you, just because someone says you should do something, if it doesn’t resonate with you, it’s not going to be as helpful as something that truly fits you,” Levine said.

7. Examine deeper issues

Sometimes there are problems that need to be addressed before people can move forward with the change they want.

In some cases there are psychological impediments to making changes, Levine said. For example, some people fear failure so much that they unknowingly sabotage themselves. Self-esteem may also play a role — some people don’t feel they’re worthy of being taken care of, he said.

If you think that there are deeper issues preventing you from moving forward in your life in some way, consult a mental health professional.

8. Don’t be overanxious

Having a long list of lofty resolutions can create anxiety, so Nolen-Hoeksema recommends choosing anywhere between three and five overarching things to change.

For Kaslow, the word “resolution” connotes a “pass-fail” ultimatum, so she prefers using the word “goal.”

Writing down your goals and how you plan to achieve them is a good way to beat anxiety, Levine said.

9. Be flexible

Although you should be specific about what you want to do, sometimes it helps to broaden your vision of what you’re trying to accomplish. For instance, if you’ve been laid off from your job in the financial sector, it may not be immediately possible to find a similar position.

But if you are on the job market, the broader goal might be to support yourself or your family, Nolen-Hoeksema said. Having a wider vision of what constitutes success can free you up to explore other options that do help with the central purpose.

“Step back and say, ‘Is there any way I can achieve that bigger goal without getting fixated on the goal I had before?'” she said.

10. Keep your eye on the ball

Changing behaviors is especially difficult when other people around you encourage habits you’re trying to kick, or if you are under stress. For instance, if you’re a recovering alcoholic and having a bad day, it might be hard to resist if someone says, “It looks like you need a drink,” Kaslow said.

Know that there’s going to be some anxiety, but be patient with yourself, Kaslow said. Take it one incident at a time, one day at a time.

“You have to deal with some negative consequences when you change, both internal and interpersonal, and environmental,” she said. “You have to sort of get help dealing with those, and weather those storms.”

Source: CNN.com

Never a Year Like ’09

In an effort to put 2009 officially behind us, here’s a fun one from our friends at JibJab.com.  Enjoy!

Try JibJab Sendables® eCards today!