Survey Says

Things are looking up for small biz. Some results from the Constant Contact 2011 Small Business Survey.

On the economy:
• More than half of those surveyed saw an increase in revenues in 2010
• A whopping 4 of 5 of respondents expect to see an increase in revenues in 2011

Online marketing:
• Email remains the lynchpin of online programs, with nearly all respondents using email and almost ¾ checking it multiple times per day
• Facebook is definitely “Liked” – 95% of those using social media use the tool, with 82% finding it effective

Expect 2011 growth:
• In 2010, 77% of small businesses remained flat or saw an increase in revenues
• 82 % of small businesses expect to see an increase in revenues in the next 12 months

Remaining challenges: attracting new customers, generating referrals, and making marketing dollars go further top the list of concerns

Traditional marketing rules:
o 79% find email marketing to be effective for marketing their organization
o 76% find website to be effective for marketing their organization
o 64% find event marketing to be effective for marketing their organization

Social media catching up:
• 80% of small businesses increased their use of social media in the last 12 months
• The clear leader for small businesses is Facebook: 95% of those using social media are using Facebook

Buy Local - Does it Help?

Small retailers are still concerned about the economy, but 55% think “buy local” campaigns can help, compared to just 7% who do not.

The American Express OPEN Retail Economic Pulse shows that small retailers are leveraging local review sites like Yahoo Local and Yelp! (51% use at least one site) and social media (51% use at least one platform and 37% will increase usage this year).

“Buy local” is not a phenomenon restricted to the coasts: small retailers from the north central states are more likely to believe “buy local” sentiment is growing than any other region (49% versus 39% in the south, 37% in the northeast and 38% in the west)

Check out the Amex site for more details of this interesting survey.

Happy Entrepreneurs

The times are tough.
Consumer confidence keeps falling.
Our retirement accounts are hollow shells of their old selves.

And yet, people who work for themselves don't seem to regret it for a moment.

At least, not according to a survey released this week by business networking site Biznik.com and a professor from the University of Washington’s Foster School of Business.

The survey asked nearly 1,000 small business owners a variety of questions about their companies and the challenges they face. They found:

Passion and values continue to be the leading motivations for starting a business. Nearly one-third of respondents said the most important reason for starting their business was that they wanted to do something they enjoy. Another 25% cited the fact that they did not want to work for someone else. And, while only 60% of the respondents said they were satisfied with the performance of their business, 91% claim they are satisfied with their decision to work for themselves.

I know a lot of entrepreneurs and I'd say that sounds pretty familiar. And you can count me on in on that, too.

A Shocking Survey

A new study by MetLife paints a disturbing portrait of Americans' financial health: Half of the respondents reported that they would be unable to pay their bills a month after losing their jobs. Upwards of a quarter said they couldn't survive financially for more than two weeks without their paychecks.

Here's the worst of it: Nearly a third of those making more than $100,000 annually said they wouldn’t be able to meet their financial obligations for more than one month following a job loss.

My single mother raised three kids living paycheck-to-paycheck, so I know how difficult it is for individuals working low-paying jobs to save money, let alone amass a comfortable financial cushion.

But making more than $100,000 and having no savings to fall back on? Shame on you. That shows either a woeful lack of planning or irresponsible, out-of-control spending. Or maybe both.

If you don't have a rainy-day fund and you're still working, start setting aside as much as you can per month in a basic savings account that you can access any time. Experts recommend that you save enough to cover nine months' worth of basic expenses, but if you can cover three to four months' worth, that's a good start.

Of course, you should also be contributing to a retirement plan and saving for your kids' college expenses (if applicable) as well. Americans are terrible at that also, according to all the stats I've read.

This economic climate may be changing our ways, however. The MetLife study also found that for the first time in the history of the survey, nearly half of respondents said they have all the possessions they need, up from 34 percent in November 2006. And three-quarters no longer agree that the pressure to buy more and better material possessions is greater than ever.

Is cutting back on spending bad for the economy at this moment? Probably. But becoming more financially responsible, and teaching our children to do the same, will be better for Americans' futures.