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SMALL BUSINESS TRENDS brings you daily updates on trends that influence the global small business market.
Anita Campbell, Editor
Past life: CEO, corporate executive, tech entrepreneur, retailer, general counsel, marketer, HR ... (more)
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November 1st: Torsten Jacobi, CEO of Creative Weblogging, joins host Anita Campbell. Sponsored by Six Disciplines. Show details.
Thursday, September 29, 2005
TrendTracking: Government Websites, Blog Niche-ification, More
Welcome to the third edition of TrendTracking, a weekly place for small businesses to see and be seen.
  • CRM Lowdown is a blog about customer relationship management topics. Some of the posts are about CRM software applications, but others are about the general attitude and mindset of managing customer relationships. Craig Cullen writes the CRM Lowdown blog.

    This is a perfect example of the increasing niche-ification of blogs. Once it used to be enough to write about business on your general blog (2001 - 2002). Then you had to start a "business blog" (2003 - 2004). Today if you want to stand out, you have to start a blog on a specific business niche (2005 - 2006).

    CRM Lowdown is also part of another growing trend, the blog network. Blog networks are individual blogs under common umbrella management. In this case the network is BizNicheMedia, which appears to have 15 sites about niche business topics.


  • Buzzoodle is an online tool that helps companies create and manage buzz and word of mouth marketing. If you've been hearing more about "word of mouth" marketing, there's a reason. Recently I heard an executive from American Greetings speak. When asked what had changed about marketing compared with 10 or 20 years ago, the first thing she said was "word of mouth is much more important today than it used to be."

    Buzzoodle is the brainchild of Ron McDaniel, an entrepreneur I know here in Ohio. Ron also has a blog (but of course!) called Buzzoodle Buzz Marketing. Blogs are great for newly introduced products like Buzzoodle, because they help explain them and how to use them, in plain everyday language.


  • SearchSMB is a specialized IT search engine for small and midsize businesses. It offers resources about such information technology issues as "white papers on small biz security, disaster recovery, outsourcing and more."


  • Blogs: A Global Conversation is a master's thesis by James Torio, a graduate student in Advertising Design at Syracuse University, New York. You can download it in PDF format. Small Business Trends is mentioned in it. James also writes a blog, called EveryHuman.


  • StopFakes.gov/smallbusiness is a new website of the U.S. Patent and Trademark Office. The site is designed for small businesses, to help them understand and protect their intellectual property rights.

    As compared with the main website for the USPTO, this site does provide some additional information in an easier-to-understand format. Right now, however, the site is not as useful as it could be for small businesses -- just not enough of the right information. Let's hope the site is just a first start and that we can look forward to improvements.


  • Business.gov is the "Official Business Link to the U.S. Government." Color me impressed. If you were expecting a mere portal, with links to government programs, regulations and laws, and all very bureaucratic-like -- think again. Business.gov is a great example of how much some of the U.S. government's websites have improved over the past 12 - 18 months.

    This site has a great collection of resources, tips and advice on running a business. The focus is implicitly on small business.

    Everything is nicely organized and easy to scan quickly to find what you need. Even the design is impressive -- very 2005-ish, with the colored background and white centered content area.



Tags: ; ; ;
Tuesday, September 27, 2005
Rise of the Entrepreneurial Class
John Koten, Editor in Chief of Inc magazine, recently spoke about the "rise of the entrepreneurial class" at a talk I attended at the Cleveland City Club.

He called it one of two key factors in our economy today. A wide range of people today see themselves as entrepreneurs, he says -- everyone from Martha Stewart to Snoop Dog to college kids to retiring Baby Boomers. In his words, "entrepreneurship is a huge underexpressed force" today, even in large companies.

What's more, people have a desire to be creative in business. That's the other key factor in the economy, he says: the rise of the creative class. People today desire to express themselves, often through art. And artists realize that by integrating business principles with their art, that they can further their art.

He says these two factors are converging, and we are seeing a new mercantile class develop just as there was a new mercantile class in the 1800's underlying the industrial revolution. This phenomenon can be graphed out this way, with art and entrepreneurship being two sides of a triangle, and startups forming the foundation:




The talk was recorded and turned into a podcast. Listen to the podcast here (MP3 file, approximately 55 minutes -- he speaks about the rise of the entrepreneurial class about 23 minutes into the recording).

Monday, September 26, 2005
Are Small Businesses Avoiding or Embracing Online Banking?
Entrepreneur magazine has an article by C. J. Prince about small businesses being slow to adopt online banking.

One of the main issues that holds back small businesses from adopting online banking is security. Small business owners fear for the security of their accounts when transactions occur online. (I happen to be quoted in the article on the reason that some small businesses do not adopt online banking.)

However, there is considerable nuance under the surface of the Entrepreneur article. I note that the article points to a January 2005 study by Edgar Dunn & Company. That study suggests that small businesses have become bullish on online banking. The Edgar Dunn survey reports that 58% of small businesses use Internet banking at least weekly -- a solid majority.

A different study cited in the article, this one conducted by Forrester Research in mid-2004, showed a much lower percentage -- 19% -- using online banking (download PowerPoint presentation here).

So why the discrepancy? Is there some explanation for this considerable difference in the two studies?

While I do not have access to the underlying survey data, one possible answer may be in the size of companies sampled. It is simpler for very small, no-employee businesses to do their banking online, compared with larger small businesses that may find the challenges associated with online banking to outweigh the benefits.

The Edgar Dunn survey sampled businesses with $50,000 up to $2 Million in revenue. Now, $50,000 in revenue means a very small business. Most likely a business with that level of revenue is a no-employee business -- in other words, a self-employed individual. The number of self-employed, no-employee businesses dominates in the U.S. -- there are some 17 million no-employee businesses according to the SBA, compared with 5.7 million with employees.

I would not be surprised to find that the majority of no-employee businesses use online banking, while the majority of businesses having employees do not. Their fundamental banking needs are just so different.

First let's examine the no-employee business. Often the self-employed person views his or her business banking as an extension of personal finances. This self-employed business owner places off-hour convenience at a premium, and online banking offers that. The bank account used may be limited to a plain vanilla business checking that is really just a step away from a personal checking account. Interfacing with a business accounting system is a pretty easy matter, too. The larger online banking sites typically enable easy one-step download to QuickBooks/Quicken, the accounting system most often used by no-employee businesses. So interfacing with other business systems is a no-brainer for the no-employee business owner.

It's only when you get to larger small businesses -- those with employees -- that the challenges start. By the time a business gets to say, 10 employees, banking needs have outgrown the plain vanilla checking account. The business may require online banking data to interface with other business software systems. There are payroll accounts and tax withholding issues. Cash management tools take on added importance. Suddenly, online banking becomes more complex, requiring more effort to implement it and more staff time to manage it. It's no wonder that small businesses at this level have less interest in online banking, despite the lure of automation. Sometimes, the cure is worse than the disease, and I suspect that is how larger small businesses view online banking, rightly or wrongly.

I'm interested in reader views -- do you agree, or is there some other explanation?

UPDATE October 7, 2005: More discussion is over at the Small Business Trends Forum.
PowerBlog Reviews Grand Finale
Welcome, to the final edition of the PowerBlog Review series of reviews of other business blogs.

We go out with a bang -- a Grand Finale, if you will. For our last finale, we have written about three blogs. I hope you enjoy them -- all 86 Reviews. Please scroll down to see the final three.

UPDATE: A reader emailed me wondering why I was shutting down this blog -- well, I am NOT shutting down this blog. Small Business Trends is thriving and will continue. Only the PowerBlog Reviews are being "retired." In fact, I am looking forward to bringing you additional features, including more guest bloggers and guest posts, and more trends features.
Sunday, September 25, 2005
PowerBlog Review: Emerging Technology Trends
Read all the PowerBlog ReviewsEditor's note: Welcome to the eighty-sixth and final in our regular weekly series of PowerBlog Reviews.

Roland Piquepaille's Technology Trends blog has been one of my favorite blogs ever since I started blogging two years ago.

Roland Piquepaille is a computer consultant from Paris, France. Roland is one of those unique people you have to admire because of his dedication, his incredible range of interests, and the fact that he does it all writing in a second language (English).

For much of this PowerBlog Review I have to credit another outstanding site, Master New Media, run by Robin Good. Robin, who hails from Rome Italy, recently did an in-depth interview of Roland Piquepaille. Robin is in a class by himself when it comes to finding interesting subjects and conducting incisive interviews with surgical precision. There are few even in the mainstream media who can equal Robin's interviewing skills. Many thanks, Robin!

Roland's blog style is quite a thing of beauty, even though it goes against the advice of some blogging "experts" who suggest only short posts. All of Roland's posts are long by typical weblog standpoints (often around 500 words), and cover their subject in depth. Of course, this style of blogging takes considerable commitment. Roland says in the Master New Media interview that he spends the better part of a day per blog entry:
"Between reading the RSS aggregator news and the time I choose a story, it's probably three to four hours, and after that, let's say it's an additional one hour and a half to two hours or more to finally publish it. So overall, it's probably about six hours, yeah."
Recent topics show the range of interests, including such examples as "Self-repairing spacecrafts", "Why leaves change color", and "Algae to fuel our cars?" And because he tends to write about unusual topics, and not repeat what everyone else is blogging about, his blog is regularly linked to, including by the famous Slashdot site:
"Even for me, if a story is already covered by, I don't know, twenty magazines in the world, to me it is not a good enough subject. I want to have a subject which is not completely original but at least which is not covered broadly by the press. So, it is probably for this reason that in the last two years I have been Slashdotted between two and eight times per month (!!!), and yes, I do acknowledge that this is a good thing... though there are also lots of Slashdot haters which come after you after they discover you that way."
Roland is not content to just write a post and leave it at that. At the end of each post he lists links to related articles, which actually go to Del.icio.us bookmarks he has set up by individual topic. This is yet another way that Roland gives a very thorough treatment of his subject matter.

Recently Roland's blog became part of the ZDNet network of blogs, where it is now called "Emerging Technology Trends." This move in and of itself is part of a broader trend unfolding right now, where traditional media companies are now building channels of blogs. In some cases the blogs are new, and in other cases the blogs are existing sites -- like Roland's -- that are being "moved" over to the media site. In Roland's case, he posts a brief extract of the post on his original site, with a link to the full post on his ZDNet blog. In this way he avoids the problem of duplicate content (bad for search engines), but still serves his existing readers. Right now his blog gets 200,000 to 250,000 page views per month, so moving traffic over to ZDNet is significant.

Roland has demonstrated his leadership by stretching the boundaries of blogging for some time now, taking the medium to new levels. For more about Roland's blogging approach, please also read the Master New Media interview.
PowerBlog Review: Embrace Pet Insurance Blog
Read all the PowerBlog ReviewsEditor's note: We are pleased to bring you the eighty-fifth in our regular weekly series of PowerBlog Reviews.


The Embrace Pet Insurance blog is the blog of -- you guessed it -- a pet insurance business.

Embrace Pet Insurance is a startup company with an intriguing history. First, it is one of those rare businesses actually supported by venture capital and angel investors. Second, it got its start in the Wharton Business School, where it won the Wharton Business Plan competition a few years ago.

The blog is written by Laura Bennett, the CEO of Embrace Pet Insurance, located in Cleveland, Ohio, USA. Laura grew up in England and emigrated to Canada in her teens, and eventually went to work at a large life insurance company in Toronto. From there she and her husband ended up at the Wharton School and eventually in Cleveland. While at Wharton, Laura met her business partner, Alex Krooglik.

Although Embrace is not yet selling pet insurance policies (they are negotiating with an insurer to actually write the policies), Laura started the blog to provide education to pet lovers. She notes:
"We help pet lovers looking for pet health insurance to learn more about the products and companies currently selling policies. Pet insurance can be a complicated product, just like human health insurance, and we are helping people understand what questions they need to be asking themselves and the pet insurance companies, and showing them some of the options that are available. This information is not available anywhere else."
She does something very interesting for a pre-revenue company. She is using the blog to introduce the fledgling company to pet lovers, and develop prospects. As Laura notes, "Just because we can't sell any policies at the moment doesn't mean that people can't get to know us now."

The blog itself is a textbook study of how to blog to reach consumers in a niche business. Everything from the header image (a dog playing in the snow), to the writing style, to the images embedded here and there in posts -- it all is user friendly to consumers.

It also stays on topic quite well. Want information on keeping your home poison safe for pets? You will find it here. Want to know what questions you should ask when buying pet insurance? You will find it here. What you will not find, however, is a lot of off-topic posts. Virtually all posts adhere to pet-related topics -- and are quite informative at that.

You will also find a good blogroll of pet-related sites. There are eight pet blogs currently on the blogroll, and Laura says she is always looking for more ("...they must be out there."). The blogroll also lists a number of other pet-related, non-blog websites.

As for results from this blog, Laura sees them already:
"We are definitely getting stronger traffic numbers on both our blog and website and I am getting a number of inquiries every week from people asking about our policies -- too bad we can't sell them anything right now! In particular though, people are beginning to use the phone number posted on my blog. ...I am always open to chatting with people about pet insurance, entrepreneurship, women business owners, anything that's on anyone's minds. Those are generally very interesting phone calls and they get me in touch with people I would never have been able to connect with otherwise."
One of the things I find especially notable about the Embrace Pet Insurance blog is the way a pre-revenue startup is using a blog even during a stage when they are still developing the product. It goes to show that a company can never be too young to benefit from a blog.