Sometimes, smaller is better–just ask the small business entrepreneurs also called micropreneurs flourishing in today’s marketplace. A growing set of entrepreneurs are building successful businesses by serving a niche market. Micropreneurs aren’t trying to become the next Bill Gates or Larry Ellison. They’re thriving small-scale on the strength of a loyal customer base and utilizing social business networking and utility tools to help with sales lead generation.
Micro-Enterprises Rely on E-Commerce Solutions
Micropreneurs are rewriting the rules of small business–and they’re relying on the internet to make their business model work. A New York Times feature on startups explains: “the Internet has given people an extraordinary tool not only to market their ideas but also to find business partners and suppliers, and to do all kinds of functions on the cheap: keeping the books, interacting with customers, even turning a small idea into a big idea.”Thanks to a range of online small business resources, today’s micropreneurs have the resources to build their venture on a shoestring budget.
With minimal upfront investment, you can:
1. Create an Internet storefront for retail sales. E-commerce solutions can create a Web site with point-of-sale (POS) capability. Online POS systems enables secure credit card processing on your site, allowing you to keep the doors open 24/7.
2. Reach your niche market. Online sales lead generation and marketing tools excel at targeting interested consumers and businesses.
3. Communicate with your customers via online business networking tools, a blog, or social networking tools. Social media sites offer powerful resources for finding your needle in the haystack, also known as your niche customers and partners. They can also help you keep in touch; today’s customer service agents use online media such as twitter, facebook, tradeseam and email correspondence to connect with the public.
4. Need niche supplies or equipment to launch your niche business? Tradeseam connects entrepreneurs and suppliers of all stripes. You’ll find business resources including manufacturing companies, international suppliers, and everything under the sun online.
5. Web-based technology offers a range of resources for small business owners. Time-tracking software and online accounting programs are just two examples of today’s affordable, productivity-enhancing business tools.
6.The Internet offers the reach and low startup costs to support a niche business.
7. For many micropreneurs, the Eureka moment–the business idea–derives directly from a personal passion.
The following entrepreneurs built a following–and a profitable business–catering to like-minded individuals.
Specialty Food Carts
El Dorado tacos? Chow Fun to go? More and more specialty food carts are cruising urban neighborhoods, with offbeat menus to serve the random craving. Restaurant consultant Clark Wolf notes: “Mobile food is one of the hottest things going all over the country. Brooklyn has its ribs truck, Manhattan has its dessert trucks, and now Los Angeles has the cupcake patrol.”
Specialty food carts rely on social networking tools such as Twitter, Facebook to broadcast their coordinates. The strategy seems to work. L.A.’s Kogi taco truck draws between 300 and 800 by tweeting its location in advance, “setting off a taco-minded flash mob.”
Pedicab
A physically fit duo in Spokane, Washington has pedaled to success with a pedicab service. Cheaper and more eco-friendly than a cab, the bike-based taxi is finding no shortage of riders around the downtown area. To get the wheels rolling in your own leg-powered cab service, you’ll need pedicabs, licenses, insurance, and a local marketing campaign. Once you’ve gained a loyal ridership, you can establish a call center or online-based dispatch service linking riders to your mobile phone.
Guerilla Marketing Agency
Seattle businesses looking to make a unique statement can count on Wexley School for Girls to get the job done. The agency uses off-the-wall guerilla marketing stunts to build publicity for clients. For example, they created a buzz around Copper Mountain ski resort by staging a National Snow Day with improv ski-patrol actors and fake snow. The stunts aren’t for everyone; “either you get what Wexley is selling–a very particular sensibility and approach toward marketing–or you don’t,” comments an admirer. But the agency isn’t looking for mass appeal: “Wexley is biting off little pieces, looking to take on a particular niche of a business.”
Build your own businesses staging publicity events for businesses. Start with an eye-catching Website Design and online marketing campaign to get the word out. As the costs of running a business come down, micro-enterprises are flourishing. These small businesses focus on a loyal niche, taking advantage of online business networks to communicate with customers, source, distribute, and to manage the venture.
In today’s Internet-driven economy, it’s no longer necessary to chase the next big thing. A great small idea can take you even further.
Niki is an entrepreneur, business consultant and advisor to several small business entrepreneurs in the San Francisco bay area. She writes extensively on the small business blog and is a frequent contributor to several small business resource and networking sites that offer tools and resources for entrepreneurs and small business owners, including Tradeseam, Dell, Women On Business and Small Business Community.
Category: Business Trends
Your employees are your business’ most expensive asset. According to one estimate, up to a third of a person’s salary is devoted strictly to hiring costs. The cost of hiring the wrong employee is even more- reportedly up to twice an employee’s annual salary. Making smart hiring decisions can be tough- you want an employee that has the requisite skills, qualifications, and certifications, but you also want someone that’s the “right fit” for your business. While it’s relatively easy to verify whether or not an employee graduated from a particular institution or has a driver’s license in a certain state using a background check, the “good fit” question can be a little bit more complicated.
Social Media Searches in Hiring
The Federal Fair Credit Reporting Act defines a “consumer report” as “…any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living….” You’re not the only one thinking that that description is a little vague. A social media search, especially when conducted by a third party as part of a background check, can constitute a “consumer report” for legal purposes. A social media search also typically reveals all kinds of information that is “off limits” for consideration during the hiring process- for example, a person’s race, age, marital status, etc. You can’t consider these characteristics or a host of additional factors- for example, whether the person is pregnant, disabled, or belongs to a certain religious group. Even if you come across this information when you’re not specifically looking for it (as with a social media search), it’s impossible to unring the bell. What’s worse, information may not even be accurate- you may end up discounting a great prospect because of information they weren’t even aware was posted.
Disclosure and Consent
The best policy (if you want to avoid liability) is one of full disclosure- tell the prospective employee that you will perform an online search. The FRCA requires notice to prospective employees whenever you prepare a consumer report (as defined above)-whether you prepare it yourself or use an employment background check service. Outsourcing employment screenings can be a great idea for businesses that aren’t sure about the regulations, procedures, and policies that they need to comply with to perform a legal background search. Though legal opinions vary with respect to social media searches in hiring, it’s better to err on the side of caution- and FRCA compliance.
About the Author
Merrin Muxlow is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, a company that provides resources for business owners, and is a frequent contributor to several sites and programs that offer tools for entrepreneurs, including Dell and BizEquity.
If you’re thinking of switching to VoIP service from a traditional landline based Key, PBX, or hybrid phone system, you’re not alone- businesses of all sizes are beginning to realized the cost-saving benefits of computer/telephony integration. Switching to a VOIP phone is relatively simple- changes can be made quickly and easily, and there is usually very little equipment to purchase.
Whether you’re switching to a business VoIP service or implementing a phone system for the first time, here are a few things you need to consider:
Internet Connectivity
VoIP phone systems use the internet to make and receive calls- you’ll need to make sure your connection and your power supply can support system requirements. Generally, a steady, uninterrupted power supply and a high-speed internet connection are all that’s needed. Your connection should be able to support the added traffic that the system will create. Vendors will ask how many employees will be using the system, how many calls are placed daily, and take into consideration features like auto attendant and call transferring when setting up your internet connection to support your system. You may need to purchase additional routers or install a backup power supply.
VoIP Adapters
If you’re witching to VoIP from a traditional phone system, you can save by purchasing adapters for your current phones. A traditional phone fitted with a VoIP adapter works identically to a VoIP phone. Most adapters are less than $50 each, and are often available in bulk discounts for larger offices. In lieu of adaptors, you can also purchase VoIP phones, headsets, or microphones that can be connected directly to a computer and used in place of a traditional headset. Most business and residential VoIP service providers sell both VoIP-compatible phones and adapters.
VoIP Phones
Voice over Internet Protocol phones are slightly more expensive that VoIP adapters, but are a good investment if you plan to use the system for several years. VoIP phones are easy to use and install- they don’t take any special training to set up. Once installed, they work identically to traditional phones. Most VoIP phones cost at least $100 each, with many vendors offering steep discounts for phones purchased in bulk.
Switching to a VoIP system takes surprisingly little time. Once you’ve decided to make the switch, you can shop around for providers and compare prices for services and equipment. Most providers can also make suggestions about system configuration (i.e., if you need a faster internet connection) during this stage. Once you’ve settled on a service provider and purchased equipment, you can have the new system up and running in less than a week.
About the Author
Merrin Muxlow is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, a company that provides resources for business owners, and is a frequent contributor to several sites and programs that offer tools for entrepreneurs, including Dell and BizEquity.
Article contributed by Franchise Direct
Franchise Direct has analyzed the latest facts and figures from the pizza industry. What emerges is a snapshot of a food franchising sector that is well-positioned to thrive during the current economic downturn.
This research comes from assessing FDD (UFOC) documents of a sample size of 20 pizza franchise chains, as well as published industry sources.
Generally-speaking, the restaurant industry has shown initial resilience in coping with the downturn. Americans continue to rely on restaurants, primarily take-away establishments, for their daily eating. National restaurants surveys show an industry bracing for hardship, but confident that consumers will remain loyal.
Franchise Direct’s research shows that pizza franchises make up a majority of America’s restaurants. Our findings state that pizza franchises experienced consistent sales growth up until last year, when the industry slowed. There are a number of reasons why pizza franchises are projected to remain strong. Commodity prices will fall in the coming years, creating savings for the purchase of ingredients. Pizza franchises will also seamlessly fit into new consumer trends, such as the switch towards healthier and organic food options and the integration of new technology in ordering food. Our research suggests that pizza franchises present a deft balance for consumers searching for a quality at an affordable price. It is believed that pizza franchises will succeed as other more expensive dining options fail.
Pizza franchises also boast a number of advantages as far as purchasing a restaurant is concerned. New entrepreneurs can avail of a franchisor’s assistance in getting their business up and running. Our research reveals the typical franchise fee for a pizza restaurant. That figure tends to drops significantly for carry-out restaurants and double for larger, full-service pizza franchises.
The total investment sum for a pizza franchise can also vary greatly depending on location, unit size and whether the restaurant is take-out or dine-in. Our research tracks the range in investment in owning different types of pizza restaurant, factoring in fixtures, signs, inventory, training expenses, payroll and more. There are also a number of ongoing fees that the franchisee must be accountable for and our analysis details every payment that one can expect to make.
Most pizza franchises come with an exclusive territory, although some franchisors maintain a right to open new outlets within a given territory in certain circumstances.
In all, it remains hard to forecast the total earning potential of owning a pizza franchise. Every franchised industry is facing challenges at the moment, with the economy flailing and the sales expected to drop across the board in 2009. Cost control, management efficiency and slumping commodity prices will help to offset the sales decline brought on by the slump in the economy. According to research by Franchise Direct, pizza franchisees who can enhance their service and offer true quality to consumers will be the ones that will enjoy positive outcomes in 2009.
Article contributed by Franchise Direct
These are very hard times for the American automotive industry, but an exclusive franchise study by Franchise Direct has revealed that automotive franchises are doing well nonetheless. With Americans holding onto their cars for longer than ever before, their analysis of the Franchise Disclosure Documents (FDD’s) of 30 automotive franchises found that more and more drivers are turning to franchises to keep their car on the road.
The endemic problems in America’s car industry have been well-documented. But Franchise Direct’s study has found that the sharp decline of automotive industry, coinciding with America’s worst economic downturn since the Great Depression, has actually created some exciting opportunities for aftermarket and car rental and sales franchises.
The reality is Americans are not buying new cars as regularly as they once did. According to this new automotive franchise study, the projected new car sales for this year are 9.7 million units. This constitutes a 40% decline since 2007. Yet Americans continue to love their automobiles. The bottom line is that drivers are becoming more dependent on services provided by automotive franchises because they are choosing to get more life out of their car.
Aftermarket automotive franchises are best positioned to succeed, as consumers seek maintenance and repairs with greater urgency. Used car and rental franchises will also enjoy the benefits of this new reluctance to splurge on new automobiles.
There are also new niche markets developing for franchising to exploit. In the last few years, drivers have embraced automobiles with complicated engine control, microprocessors and high-tech safety and entertainment equipment. There has also been a movement towards ‘green’ technology in car manufacturing. As these technologies become more and more popular, a new market is growing for aftermarket franchises. Drivers no longer have the know-how to do this complex automotive work on their own and will turn instead to reliable franchise brands.
The great irony is that the global recession and the collapse of Detroit’s auto industry has opened the door for the recent success of automotive franchises. America’s love affair with the automobile is undiminished, but American’s attitude towards car buying has radically changed. This research shows that consumers are turning towards automotive franchises to keep their cars on the road. With the government’s stimulus plan providing economic optimism, it is an excellent time to consider franchise opportunities in the automotive sector.