The Recession Drives Small Business Innovation in 2009
Top 4 trends we saw in 2009 for SMBs.
1 – Social Networking at Work
No, it doesn’t mean that more people at work are spending time on Facebook and Twitter (which they probably are), but that SMB owners are actually using these sites to promote their business online.
Facebook:
While there are numerous controversies brewing about Facebook’s latest change to their privacy policy, what this means for small business owners is that placing content on your business’s Facebook fan page will not only have content seen by other Facebook users, but by the Googlebot itself. This means that Facebook pages with pictures, posts, reviews, etc. can now be indexed by Google and – gasp – show up in search results! Potentially scary if you’re a business owner that likes to post “questionable photos” on your profile, but a golden opportunity for those who want to rank higher for valuable keywords. Facebook and Search Engine Optimization – now with 30% more Google!
Twitter:
Though it had seen explosive growth amongst consumer users to keep track of what celebrities, friends and other pundits had to say about current events, in 2009 Twitter became a resource for small business owners to keep subscription lists of “followers”. Now SMB owners could easily blast promotional news, coupons, etc. in a manner that was both cheap (free) and legal (no e-mail spam complaints).
2 – Cloud Computing Takes the Throne
It’s official – what was called “hosted software” and became “virtual software” became “OnDemand software” and now (drum roll please) “Cloud Computing”. While this term can mean a multitude of different things, what it really means for small business owners is that they can now get accounting software, customer service software, their phone system (hint, hint) and Salesforce automation – all as software that is delivered over the Web, controlled by their browser and paid for in monthly installments. In fact, the last time a small business owner bought a copy of Microsoft Office for $300, twenty-five other small business owners signed up for Google Docs.
3 – Mobile Computing Continues Strong Growth
The major carriers now offer “netbook” laptops at price-leader fees meaning they are willing to lose money on the netbook in order to make it up on the 2-year commitment of wireless data fees. Combine that with the increase in use of smart-phones at loss-leader prices and the ubiquitous rise of mobile computing is here. Of course, mobile computing for small business owners wouldn’t be an exceptional phenomenon if there weren’t actual applications for SMBs. The meteoric rise of Apple’s App Store (with plenty of business applications like accounting tools and credit card payment gateways) means that mobile computing for SMBs is here to stay – and grow, grow, grow.
4 – Creative Financing & Rise of the Local Credit Union
Small Business Owners find strength in 2009 recession.
For many small businesses, financing and credit lines are critical elements to being able to procure materials/products and invest in future growth. But the financial collapse of 2008 and 2009 have not only caused many large banks to fold, but consolidation means that there are fewer choices for small business banking. In downtown San Francisco, they saw over a dozen banks dwindle down to a handful of options. Add to that the fact that these handful of banks have pulled many of the credit lines and credit products available to small business owners and you have a conundrum indeed. Twelve banks competing with each other down to less than five and all five no longer offer new small business owners unsecured credit lines.
This is where the local credit unions have been stepping in. Operating in the shadow of their flashier, bigger national counter-parts, credit unions have recently seen more small business owners apply for loans that larger banks no longer offer. The ability for a community-based lender to asses local risk and offer a credit line is a necessary driver for SMBs and one we hope will continue to grow in 2010. In addition, credit unions have been more apt to offer SBA (Small Business Administration) loans that has received more monies recently from the Obama administration.