Small business owners answer questions about growth

Published
by
Jim Blasingame
on September 1, 2010
in Economy: National and Global, Government, Regulations, Uncategorized and Universal health care
. 0 Comments

One of the big issues these days is why the economy isn’t growing. Many people believe one reason is because businesses, especially small ones, are so uncertain about the future that they aren’t taking the risks associated with growth activity, like hiring more people, borrowing money or other expansion steps.

We wanted to know what small business owners think about this, so we asked our NEWSLETTER subscribers and website visitors to tell us about their perspectives on growth opportunity. Here is the question we asked: Please, tell us where you fall in this issue. “I am not taking growth steps because…”

Here’s how our respondents answered:

23% said:  I’m worried about the economy in general.

15% said:  I can’t get financing to fund growth opportunities.

58% said:  Government actions make me uncertain about the future.

4% said:  We are not experiencing growth opportunities

Perhaps the good news is that only four percent of our respondents indicated they were not experiencing growth opportunities.  The bad news is, as you can see above, 96% of responders were so troubled by three issues that they either can’t or aren’t growing their businesses.

These responses track pretty closely with others I have seen lately.  There is no way to sugar-coat this: When small business owners are troubled, the economy is troubled.  I don’t know what’s going to happen next, but I do know that my prediction earlier this year in an article titled, “The shape of this recovery is M” is coming to pass. This recovery is more of a marathon not a sprint.

But we’ve come too far to quit now.  This is no hill for a climber, and you’re a climber.  I’m proud of you. You should be proud of yourself.

To participate in next week’s poll question, visit www.smallbusinessadvocate.com and vote.

Leading change successfully in your small business

Published
by
Jim Blasingame
on August 27, 2010
in Leadership, Management Fundamentals and Organizational strategies
. 0 Comments

There isn’t much different about change today from any other time in human history. A computer is just a fancy wheel.  But there is one thing about change that is so different that it has been taking our breath away for the past 15 years or so: It’s the velocity of change.

What I mean about velocity of change is that the time between one generation of change and the next one has been compressed.  Where a new strategy, product or plan might have lasted a year or more in past generations, today may be obsolete in 90 days.  Consequently, business leaders can’t just accept change or even manage change; we have to lead change.  Managing change requires acceptance and execution; leading change requires those things plus vision, courage and world-class leadership skills.

How can you lead change in your small business in the second decade of the 21st century? Recently, I talked about this on my radio program, The Small Business Advocate Show, with Rick Maurer, a long time member of my Brain Trust and world-class expert on world-class change leadership. He is the author of several books, including Beyond the Wall of Resistance and Why Don’t You Want What I Want.

Please, take a few minutes to listen to what Rick and I have to say on leading change, and be sure to leave your own thoughts. Listen Live! Download, Too!

Navigating the uncertainty of small business taxes for 2011

Published
by
Jim Blasingame
on August 13, 2010
in Business planning, Finance - Accounting - Taxes and Uncategorized
. 0 Comments

Several months ago, I wrote an article that was titled, “The enemy of jobs creation is uncertainty.” In the article I identified several issues that were causing small business owners to be reluctant to invest or hire.  One of those things was - and still is - not knowing what the income tax burden will be in the future.  Today, there are several tax issues unresolved that will impact virtually every small business.

1.  The personal tax rate, the corporate tax rate and the capital gains tax rate: We still don’t know what Congress will do with the tax cuts from 2001-03, often called the “Bush tax cuts,” which are set to expire at the end of 2010.  Not knowing the tax implications creates frustration when trying to project profit margins or do retirement planning.  And if we have any assets that we might want to sell in the short-term, we feel pressure to sell them this year, since the cap gains rate may go up next year.

2.  The health care bill:  No one really knows how this new program will impact small businesses, both organizationally, financially or from a compliance standpoint.  Speaking of compliance, one of the big concerns involves the proposed 1099 reporting requirements that is an element of the health care bill. Every small business advocacy organization I’ve talked with in the past few months has said this new compliance requirement will be a nightmare for small businesses.

Recently, we polled visitors to my website about what the government should do with the expiring tax cuts. Over 80% of our respondents said the tax cuts should be extended.  If the government wants to get the economy going quicker, they will do everything they can to help small businesses understand what their future tax compliance requirements are as soon as possible.

Recently, on my radio program, The Small Business Advocate Show., I talked with small business tax expert, Barbara Weltman, about why current tax policies are creating a great deal of uncertainty among small businesses, including the new 1099 reporting provision. Barbara Weltman, is a tax attorney and author of many books on small business tax planning, including the J.K. Lasser series. I hope you will take a few minutes to listen to what Barbara has to say, and be sure to leave your comments. Listen Live! Download, Too!

Small businesses and the local chamber of commerce

Published
by
Jim Blasingame
on August 7, 2010
in Leadership, Management Fundamentals and State and Local
. 1 Comment

One of the most important associations any small business should have is being a member - and one of the owners - of the local chamber of commerce.  I’ve been a member of mine since 1977.  Of course, chambers promote business in the local economy as well as economic development, but they also work on political advocacy issues locally, at the state level and in Washington, D.C.  Chambers also do something no other organization can do: they are able to cut across all of the boundaries between the different stakeholders in a community, like politics, education, arts, sports, etc.  No other organization can do this like your local chamber.

Notice that I used the word “owner” earlier. The chamber is a locally owned, non-profit corporation. It is what its owners make it. That’s you. To paraphrase a great man, ask not what your chamber can do for you - ask what you can do for your chamber.

Being a chamber member is the best investment you’ll make this year. The average annual dues - my estimate - is somewhere in the $250 range. For that kind of money you can’t afford not to be a member.

One of the pilgrimages we make each year is to support the American Chamber of Commerce Executives convention, which is a gathering of professionals who run the day-to-day operations of local chambers for those owners (you) mentioned earlier. For several years now, I’ve been broadcasting my show from this event, as I did this year in Milwaukee. Below are four of those interviews. Take a minute to read what we discussed and listen to the ones that you find interesting. And as always, let me know what you think?

Interview 1. Steve Baas, Government Relations Director for the Metropolitan Milwaukee Association of Commerce, and I discuss the importance of local chambers of commerce and what his chamber is doing to support small business. We also talk about some public policy issues, such as the 1099 reporting controversy.  Listen Live! Download, Too!

Interview 2. Steve Millard, President and CEO of Cleveland, Ohio’s Council of Smaller Enterprises (COSE), and I talk about what the Cleveland chamber is doing for small businesses, including advocating for revisions of the health care bill that hurt small businesses. Listen Live! Download, Too!

Interview 3. The Los Angeles Area Chamber of Commerce president, Gary Toebben, and I discuss why chambers matter to small business and what his chamber is doing to get ready to host the ACCE’s convention next year. Listen Live! Download, Too!

Interview 4. Allen Hester, President and CEO of the Dyersburg, TN Chamber of Commerce, and I talk about how his chamber worked with federal and local authorities to help small businesses recover from the Tennessee floods of 2010.  Listen Live! Download, Too!

The “Age of the Customer™” goes interactive

Published
by
Jim Blasingame
on July 30, 2010
in Customer Care and e-Business
. 2 Comments

One of the major topics I’m devoting a lot of my time and resources to these days is talking and writing about what I call the “Age of the Customer™.”  In this new Age, the Customer is in control and the Seller is subordinate for one primary reason: access to information.  Today, Customers have almost all the information they need to make an informed purchasing decision.

In the new Age, connecting with Customers is more important than marketing to them.  And what better way to connect with Customers than to provide an interactive element to the relationship?

Recently, on my radio program, The Small Business Advocate Show, I talked about interacting with Customers with Joseph Jaffe.  Joe is an outstanding member of my Brain Trust, and we talked about the shift toward interacting with Customers, plus other paradigms that are shifting away from 20th century marketing toward 21st century connection and communication with prospects and customers. In his day-job, Joe is the President and Chief Interruptor of crayon and author of Life After the 30-Second Spot and Flip the Funnel.

I hope you’ll take a few minutes to listen to what Joe and I have to say and, as always, be sure to leave your comments. Listen Live! Download, Too!

How leading small business CEOs prepare for the recovery

Published
by
Jim Blasingame
on July 18, 2010
in Economy: National and Global and Management Fundamentals
. 0 Comments

Reading newspapers, magazines and online, watching the talking heads on TV or listening to the geniuses on the radio, when the topic is about economic recovery most of the coverage focuses on the national or global situation.  And if you’re a stock trader or run a national or global company, this information is likely to be valuable.

But if you’re a small business CEO, the talking head noise must not distract you from the dealing with the reality that your economic recovery is influenced most by what’s going on in two much smaller pieces of geography:

1.  Within a few miles of your business: Your ability to serve real customers whose names you know, not the ones represented in statistical references.

2.  Within the space between your ears: Get out of your own way and execute as if there was no bad news.

Recently, on my small business radio program, The Small Business Advocate Show, I talked with Vistage leader, Stephen Baum, about how leading small business CEOs he knows are preparing for the recovery. Stephen has been a member of my Brain Trust for a number of years and is an adviser and coach to CEOs for more than twenty years. He is also the author of, What Made Jack Welch Jack Welch.”

Be sure to take a few minutes to listen to my visit with this world-class management expert and be sure to leave your own thoughts. Listen Live! Download, Too!