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A couple of weeks ago I was at the Small Business Summit in New York meeting with other small business owners in the American Express OPEN Advice Cafe. (My full write-up is here.)

One of the things that each attendee received in their welcome bags was a compact booklet of tips.

Since my return I’ve been trying to load the booklet in my account at Slideshare.net, so that I could embed it here to show you in a neat slideshow. Despite uploading it 7 or 8 times, I can’t get the document to fully load in the Slideshare viewer, and I’ve had no response to my support request at Slideshare. So today I set up an account at DocStoc.com and loaded it there — and voila! The slideshow from DocStoc works perfectly.

So without further a-do, here are 7 Tips for a More Resilient Business During Downturns. Then let me know what you think about these tips. Agree? Have a different perspective? Or are there other tips you would have shared instead? I’m interested in your feedback. Weigh in by leaving a comment at the bottom of this post.

Tips for Running a Small Business During Uncertain Economic Times

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Source: Anita Campbell of Small Business Trends

On this, Thanksgiving Day here in the United States, I’d like to give thanks for the increased limits of FDIC insurance coverage — one of the few bright spots in the government’s inconsistent handling of this credit crisis.

A few months ago I wrote about FDIC insurance of bank deposits here in the United States. At the time, FDIC insurance was limited to $100,000 per deposit account for most accounts.

But Congress subsequently passed legislation temporarily raising the FDIC insurance limits to $250,000 per deposit account. Those temporary insurance increases are in place from October 3, 2008 through December 31, 2009.

Details about the $250,000 Insurance Increase

The Emergency Economic Stabilization Act of 2008 (the “EESA of 2008″) and the Temporary Liquidity Guarantee Program initiated by the FDIC on October 14, 2008, substantially raised the U.S. government’s guarantee of your bank accounts.

In fact, by combining certain types of account ownership it is possible to get more than $250,000 insurance of, say, a husband and wife’s jointly held bank accounts. And if trust accounts are involved, a family could have well in excess of $250,000 of FDIC coverage for combined bank accounts. Small businesses also get extra FDIC coverage for payroll accounts, for instance.

Here are 2 resources that outline the temporary FDIC insurance limits:

• This legal summary of the provisions gives detailed scenarios for achieving more than $250,000 in FDIC coverage for spouses and families. It also outlines basic rules for FDIC coverage of corporate and business accounts. This summary gives an overview of the rules.
• MyFDICinsurance.gov has a helpful online calculator to help you figure out how much FDIC coverage you have for various types of accounts. You just plug in the types of account ownership and the amounts, and the site calculates your coverage. Financial expert Suze Orman has done public service announcements for FDIC insurance and you can watch those at the site, too.

Why the FDIC Insurance Increase is Important

This temporary raising of the FDIC insurance limits obviously was designed to re-assure consumers — and small businesses — that deposits were safe and to prevent a run on the banking system. Knock on wood, we have not had a run on the banks. The FDIC insurance appears to be having the effect of re-assuring the public and creating stability in the system — at least in that one sense.

Some have criticized the FDIC insurance increases as irrelevant. Others have called them elitist.

I think those criticisms miss the point.

It’s true that these FDIC insurance increases have done nothing to help the rest of the credit crisis we are in. But — I don’t agree that FDIC insurance is irrelevant — not at all. Even if you are nowhere close to the coverage limits with your deposit accounts, just knowing the Federal government stands behind bank deposits well past your own upper limits is highly reassuring. In an uncertain and volatile financial environment, it’s one less thing to worry about.

FDIC insurance is all about confidence of the public. None of us ever want to have to make an FDIC insurance claim, and wait weeks, months or years to get paid. We want that insurance to be so reassuring that it prevents ANY disruption to the system in the first place.

Let me tell you a true story of the harm that a little uncertainty and disruption can do. A number of years ago a retirement account that I was accruing was put into limbo. The insurance company that had underwritten it went into liquidation. For two years I did not know for certain that I would ever see that money again. It was $6,000 — a fortune to me at the time, early on in my working career. The company trustee of the retirement plan kept writing letters assuring us the funds had a high likelihood of being recovered. But for two years all I had were letters, not my money. It was highly worrying. The uncertainty eats at you. Eventually I got the money (sans any interest for two years) and rolled it into an IRA account, but in the meantime I had a lot of angst over it.

Multiply that kind of angst by hundreds of thousands or millions of consumers feeling the same way, and you begin to see my point.

Can you imagine what would have happened in the midst of the October financial market turmoil, had large numbers of people started yanking their money out of banks due to fear? Or if news started to spread of consumers having holds placed on funds exceeding the FDIC limits, on a wide scale? Or if small businesses couldn’t pay their employees because their payroll accounts were on hold due to a bank failure — even for a few days?

I shudder to think of the panic that could have ensued.

FDIC insurance is there to prevent panic. I think it’s done its job well. We’ll never know what kind of widespread panic might have developed but for that move. But just the fact that we have NOT had bank runs is enough for me. FDIC insurance is one small thing I give thanks for this Thanksgiving.

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Source: Anita Campbell of Small Business Trends

I was surprised that our cash flow has so far remained largely unaffected by the credit crunch and ongoing financial crisis. Soon I’d actually replaced concern with ambition, deciding it’s really true — crisis is an opportunity. Here’s six resolutions we made to survive … and thrive.

• It’s a buyer’s market
  It’s a surprising new development, but stock pickers know there are bargains when the market drops 30% — and the bad economy is also creating bargains in the general marketplace. We’ve discovered that struggling suppliers are now offering deals, especially to customers who can make long-term commitments. (And yes, I’m putting some of my surplus cash into long-term investments.)
• Re-negotiate
  There’s also never been a better time to line up a long-term contracts at reduced rates.
• Keep costs low
  Anticipating a financial slowdown, I moved into a smaller workspace, switched to cheaper phone plans, eliminated redundant services, and engaged in a massive review of operational costs. In tough timesm there’s a smaller margin of error, and reducing costs obviously affects the bottom line just as much as income.
• Form new alliances
  It seems like now everyone is more willing to at least consider a partnership or merger. A dire economy provokes real concern, and there may never be another moment where potential partners are this open.
• Embrace online globalism
  I’ve heard stories about “online outsourcing,” with online workers offering routine services at prices lower than anything we’ve seen before. Networking globally — and collaborating — is one genuinely new idea for reducing costs. (Amazon’s “Mechanical Turk” service is just one example.)
• Diversify
  Some businesses are thriving in today’s financial environment — and some aren’t. But you don’t have to know which is which if you can diversify your customers, yours clients — basically, your sources of income.

Arthur C. Clarke once said the best advice for humanity came from a Douglas Adams book: “Don’t panic.” Objectively things are not as bad as they seemed in September, and we’ll navigate the problems that remain with some flexibility — and some common sense.

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Source: David Cassel

Before the Internet, when business was literally done with a firm handshake, small business types relied solely on local customers. The Internet has changed that forever. It allows us to communicate in ways unimaginable only a few years ago. It also makes it possible to discover an endless supply of information with just a few clicks. And these clicks, performed by strangers half-way across the world, may lead to new customers. But there is no possibility of converting clicks into customers if they can’t find us, which is still a challenge frustrating the majority of small businesses.

Back in the day of the firm handshake, the principles espoused in Dale Carnegie’s landmark book, “How to Win Friends and Influence People,” were used by millions of business people with great amounts of success. Although the book was originally written in 1937, it’s as relevant today as it was back then. In fact technology amplifies Carnegie’s philosophies allowing them to impact more people than Carnegie himself could have ever imagined.

And quite possibly the best example of winning friends and influencing people in a Web 2.0 world is President-elect Barack Obama – who many feel has just completed the most successful Internet marketing campaign ever. Here are a few ways Obama’s campaign infused Carnegie’s original concepts with Web 2.0 tools and strategies in order to win and influence millions of people.

Make the other person feel important and do it sincerely

The size of the grassroots coalition built by the Obama campaign was matched by the fervor generated by the people it attracted. A main reason for this passion has to do with the way the campaign used things like Facebook, LinkedIn and Twitter to engage people. They also used services like Meetup.com to make easy for volunteers to organize in order to brainstorm and come up with their own ideas for spreading the word. The use of technology to empower people played a significant role in building enthusiasm for his message, while making each individual contributor feel important.

And though much has been made of Obama’s following on Twitter, Facebook and other “mainstream” social networking sites, there are other lesser known sites he participated in just as actively. MiGente.com, a social site dedicate to serving the Latino community, is a great example of a social site Obama is a member of that doesn’t have the hype of the larger social networking sites. But his participation on the site was viewed as a sign of respect to the community, which enabled him to attract more than 54,000 friends on the site.

Throw down a challenge

During the course of any political campaign a lot of statements are made that end up being contested. Obama’s campaign answered many of these contested statements with a site they put together – FightTheSmears.com. With this site they used audio, video, text and other kinds of content to address various statements they took exception to. They also invited site visitors to report “smears” in order to challenge them.

The Obama campaign also challenged those questioning his tax plan by putting up a page on their site that had a tax calculator people could use to see how his tax policy would impact their net income. It included a YouTube video that stated his policy on the subject. It also included a widget people could put on their websites and blogs, which helped spread his policies in a viral fashion.

And when the country was introduced to Joe the Plumber after his conversation with Obama on the subject of taxes, the Obama campaign used Google Adwords to buy an ad for the term “Joe the Plumber”. When you clicked on the ad you landed on the tax calculator page.

Dramatize your ideas

Through content created by his campaign, or through user generated content created on his behalf, Obama was able to express his ideas of hope and change in ways that captivated millions of people. His YouTube channel has over 1800 videos, accounting for over 20M views. His FlickR stream has thousands of photos. He posted his policies on document sharing sites like ScribD. The campaign also created an iPhone app that allowed people to organize their contacts by battleground states, provided campaign information, and helped find campaign events taking place in your area. The campaign even advertised on Xbox games like Burnout Paradise.

Dale Carnegie 2.0

President-elect Obama’s campaign is a living testament to the longevity of the teachings and concepts of Dale Carnegie. But they are also a testament to the power social media can have on building meaningful relationships with people we may have never met – and might not ever meet. Now it’s not likely that we as small business people will ever reach the scale and scope the Obama campaign operated on. But we don’t need to reach millions of people and raise hundreds of millions of dollars to be successful. We just need to figure out how we can use blogs, podcasts, social networks and other tools to make it easier for people to find us when they searching for help.

We can thank Dale Carnegie and Barack Obama for showing us how we can do it.

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About the Author: Brent Leary is a Partner of CRM Essentials. Brent also hosts Technology For Business $ake, a radio show in the Altanta, Georgia, USA area about using technology in business.

Brent is a member of the Small Business Trends Expert Network.

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Source: Brent Leary

Drastic times call for drastic measures.  With so much uncertainty surrounding our economy, it is time for all small business owners to take a deep look at their business and figure out where they can “trim the fat”.

In most cases, if you REALLY look closely at what you are paying for and the benefit you are receiving, you will be surprised at how much you can cut back.  Most of us get lazy and start paying for luxuries through our business because we think we need them or just because we can.

Well, times have changed.  If your bottom line is shrinking, it is time to take action NOW!  Don’t wait for the economy to turn around.  Take this opportunity to really trim the excess fat and create a more efficient business.  Then, instead of just surviving in this economy, you will thrive in it.  And then, once the economy does turn back around, you will be that much better off.

Now, I know this is hard to do.  I have been doing it in my own business - and it is HARD.  Change is never easy; it’s easier to just continue on the path that we are on and hope that we will still make it to our destination.  Unfortunately, by not ADAPTING to our current economy, it’s comparable to following a road map from the year 1980 - chances are, the roads have changed and if you are looking at the wrong map, you are going to get LOST!

So, sit down today, pull out your financial statements and take a couple of hours to review them.  Find areas where technology may have changed and there are better options out there now.  Look for luxury items that are unnecessary today.  Look for unproductive assets that could be liquidated.  It’s going to take some time - but it will be well worth the investment.  You will become more aware of your business and will be able to make better decisions for it.  This will result in you running a better business.  I guarantee if you do this and truly create a “lean, mean, profit-making machine” out of your business, you will look back at these “uncertain times” and realize that they were a key factor in your success - they are forcing us all to do things we should have done years ago!

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Source: Troy Braithwaite

If you have recently joined the ranks of “The Downsized,” undoubtedly doing something entrepreneurial has crossed your mind (at least for a millisecond). But right now?

If you had the power to choose when you could be downsized, late 2008 probably would not be your 1st or even 2nd choice. Your 401k plan is probably looking uglier than this Almiqui. The U.S. unemployment rate is hanging tough at about 6.5%, and you are just not getting any younger.

If you are a newbie to the world of corporate downsizing, the emotion that is probably winning out in your “Top 10″ list is the fear emotion. Being out of work can certainly be frightening, and if you don’t have at least some fear, you either have a significant net worth, or are in a state of denial.

If you have been through a corporate downsizing before, then a feeling of déjà vu has probably settled into your psyche. All of those wonderful emotions that coincide with a job loss are re-surfacing, and you don’t like them one bit.

There is one way to avoid experiencing the emotions that you are feeling, currently. Become a small business owner. Get some control back in your life.

I believe in the franchise business model for a variety of reasons, including:

• Proven track record

• Proven business systems

• Ability to gain market share quickly

• Equity building

Are you saying to yourself, “Joel, you must be crazy-why would I invest in a franchise of my own, now? The economy is in turmoil, and my net worth is diminished by 20%!”

Here is what I say to you: Why not now?

Better yet, Guy Kawasaki, a venture capitalist, and a contributing writer on the OPEN Forum says this about timing:

“It doesn’t matter whether the Dow is 5,000 or 50,000,” Kawasaki says. “If you’re an entrepreneur, there is no bad time to start a company.”

In a way, he is right. Sometimes, our circumstances force us to act sooner, rather than later.

Now, we can argue whether or not investing in a franchise of your own is true entrepreneurship or not, if you would like. It is certainly more entrepreneurial than going out and getting another job.

You say, “But Joel, I probably couldn’t get a loan for a franchise anyway. I have been reading that the banks are not lending start-up businesses any money. Just forget this idea. I will just go out and find a job.”

I feel strongly that there are banks out there that with the help of the SBA, will loan money to franchise start-ups. If you have excellent credit, some money down towards your new venture, and are investing in a franchise concept that is not too bizarre, I think you will find some lenders who are willing to lend you some money. Why not at least try?

Here is the other alternative; the instability of a job. You do want some control back in your life, right?

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About The Author: Joel Libava is a Cleveland, Ohio franchise consultant and marketer. He blogs at The Franchise King blog. His website is http://www.JoelLibava.com.

Joel is part of the Small Business Trends Expert Network.

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Source: Joel Libava

A quick economic recovery would allow small businesses to use cash and existing lines of credit to meet their costs.  To do this, small businesses are going to need to be cautious regarding their outgoing expenses that  are not immediately generating income in the short term.  This may mean that they need to reign in unprofitable aspects of the business or control other expenses, such as personnel or marketing costs.

Small businesses are going to struggle during the current crisis due to a increased difficulty in getting reasonable rate lines of credit, which is going to impact their ability to weather the crisis as as well as their ability to adapt or expand their business during this period, both of which may be necessary in order to weather this crisis.

Scott Shane on the Open Forum  noted that businesses with bad credit, as of September, are paying three times the interest rate that businesses with good credit have.  He speculates that because of those inflated rates those businesses are not going to be able to make a profit.  This is going to hit the younger companies who are struggling to stay afloat more than an established company which is already profitable.

Small businesses are also going to be hit on the consumer side.  Whether they supply other businesses or the public, both are going to be cautious during this crisis, whether they have great need to or not.  Having already spent their stimulus check, consumers are going to be less free with their available cash, and as  an Anonymous Coward wrote in comments on the Tech Dirt Blog, once businesses struggle getting credit, consumers can’t be far behind.

This will impact the cash coming into the business, but they’ll need to resist the urge to deeply discount their services to keep things moving, because it will devalue their product or service as the market comes back.  They’ll instead, need to make savings in less transparent ways, and, as suggested by the National Federation of Business, promote the lower cost products and services.  They’re going to have to be cognizant that this crisis  is temporary, and be careful not to gut potentially growth areas of the business or alienate customers or suppliers during this crisis.

It is during this period of uncertainty as to which way the market will move, whether it will continue to slide or whether it will start to stabilize and recover, you are going to see businesses doing some paring and being less development and expansion focused.  There will also be far less development of new businesses as both banks and VC’s are going to be holding close to their money, and making it more difficult for those without a current line of credit to get some.  Its going to be a rough period for small businesses as consumers and lenders are going to be more cautious about their money, and asking more when they do part with it.  The small businesses that are supported themselves on credit and were struggling before this crisis, will likely fold under the pressure.  For those that are profitable, the small business that can successfully control costs without sacrificing quality or reputation should make a recovery.

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Source: Joshua Howe

There are tough times ahead for us entrepreneurs and small business owners. The economy has hit many of us hard, and we’re going to have to work to get out of this hole. That’s all the bad news.

The good news is . . . we can do it, if we do it now!

Now is the time to innovate and create and produce a real plan of attack to succeed. Now is the time to sit down and be creative about how to push your business forward without a marketing budget. Now is the time to think creatively about how you can get your company noticed, or get more sales, or more leads, with a new type of marketing campaign or idea.

The point is, now is the time to do this. Your competitors will probably cut jobs, and cut marketing and cut something else. Now is the time for you to eat their lunch by making aggressive steps forward while they cut, cut, cut!

Do it now.

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Jim Kukral, The Business Web Coach, is an award-winning blogger, speaker and successful web coach. For over 12-years, Jim has been helping both small businesses and Fortune 500 clients find success online.

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Source: Jim Kukral

You probably already know who your best source of more business, more leads, more referrals and more growth is, right? Yes, it’s your current customers.

If you’ve grown complacent with your current customers, often a symptom of an up market, now is the time to go back to this precious resource and beg forgiveness. Or, at least, set up some processes to capture their hearts and minds before they drift away.

Find out what they think

The Best Research You Can Do - The next time a customer refers someone to you run to the phone and ask them why. Ask them what it is that you do that made them think you worthy of such an honor. Ask them the exact words they used when then told the referral prospect about you.

It’s my belief that most small businesses don’t fully understand what makes them special or unique, but their ideal customers do. I suggest that you call up 10 of your best customers and ask them why they hired you in the first place, why they stick with you, what you do that others don’t.

This kind of research is the best way to find the core marketing message your business must embrace to stand out and attract your ideal customers.

Make them part of the team

Your Marketing Board - Customers that love to tell you what they think, good and bad, are a blessing for your business. Tap this resource by putting together an informal marketing board made up of you most loyal and vocal customers. Bring them together about once a quarter and let them weigh in on your marketing initiatives. You will find that this group may become some of your best advisers and word-of-mouth lead generators.

Testimonials and Case Studies - For every happy customer there should be a testimonial of results and perhaps even a full-blown written, audio and/or video example in the form of a simple case study. Involve your customers in this process and use their testimony in various formats.

Equip them to sell for you

Basic Education - Take the time to do two things with every customer. Teach them exactly who makes a great lead for your business and how to correctly introduce your business to a prospect. Give them the tools to do this whenever the occasion arises. Get passionate about measuring, reviewing and reporting the results you have created on behalf of your customers. Set up routine meeting to go over these.

Peer-2-Peer Education - This is a pretty involved way to get your customers on the sales team, but done correctly, it is very powerful. Invite several happy customers to participate in a panel discussion on some issue in their business or industry and include four or five prospects as well. The discussion should revolve completely around solving issues and discussion challenges with peers - the key is that your products and services can be positioned (without any selling on your part) as the solution by your happy customers. This can even be done in person or via webinar

Build a customer community

Once a quarter or once a year invite some or all of your customers to enjoy a great speaker, lunch, drinks or to paint the day care center at the local community center. There is something magical about this type of community building and it always produces loyalty and referrals as a side benefit.

Bonus

Send hand-written notes of appreciation - It’s amazing how this simple gesture stands out these days.

I know you’ve got a thousand other things tugging at your time and attention, but every minute you invest in your current customers will come back to you tenfold. Hey, and even though I was speaking figuratively about the hug part, we can all use a literal hug too, so don’t overlook that one!

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Source: John Jantsch

On November 13th, 10:00 am Pacific, O’Reilly is conducting a free teleseminar called “Twitter for Business.” I’ve read the report that the teleseminar is based on, and it’s quite good so I encourage you to listen by clicking here. The teleseminar will explain how businesses can use Twitter. The presenter is:

Sarah Milstein, a consultant on Web 2.0 and editorial strategies, and an MBA candidate at the Haas School of Business at UCBerkeley, was previously the Chief Publishing Evangelist for O’Reilly Media. Prior to that, Sarah was O’Reilly’s Managing Editor, Senior Editor, and Editor, leading the development of the Missing Manuals, a best-selling series of computer books for non-geeks.

If you’re thinking of using Twitter for your small business, you should definitely listen in.

For more news about Twitter, go here. For every tip I know for getting more followers on Twitter, go here.

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Source: Guy Kawasaki of How to Change the World